30/08/2016 World Business Report

Now for the latest financial news with Sally Bundock,

The EU is expected to make a final ruling on Apple's low tax

It could mean a huge payment of back taxes,

And how to influence the Brexit negotiations -

we look at the spike in demand for lobbying consultants in the UK.

We will look ahead to the results coming from some of the very biggest

banks. They are based in China. Rico Hizon will have the details.

Apple is facing a potential tax bill running into billions of euros.

After a three year probe into the tech giants tax

arrangements with the Irish government the findings

of a European Union investigation are expected to be released today.

They are expected to find that Ireland has given the Apple "illegal

aid" through a so-called "sweet heart" deal.

That deal meant that Apple would pay just **% in corporation tax if it

That deal meant that Apple would pay just 2% in corporation tax

if it based its operations in Cork in Southern Ireland.

The big benefit for Ireland is significant job creation there.

However under EU law national tax authorities are not allowed to give

tax benefits to selected companies - which the EU would consider to be

Estimates say Apple may face a bill of as much as $19 billion

if the Irish government is forced to recoup taxes from the company.

However some reports say the figure may not be much more

But it will be up to Irish authorities to calculate

Apple and the Irish government are both likely to appeal

I am joined by Jamie Gavin, managing director of inPress Online. Good to

see you. As we have mentioned, this has been a three-year investigation.

We are likely to get the outcome today. Tell us more about this

landmark ruling which could be historic. There is precedent

recently in the Netherlands. We talked about Luxembourg and Ceat.

It's such a big name. -- Fiat. All of a sudden they are turning around

and saying that they have to pay a backlog of tax. We will wait and see

how much that will be and where it ends up landing. That is a huge deal

for the legalities surrounding tax. It is interesting because Apple is

the world's biggest company in terms of market capitalisation. It has a

huge cash pile and some people say that it can afford to pay that back

taxes but looking ahead, it will have to pay higher tax on the future

as well if this is to go through. It is interesting that the EU don't

impose this moving forward. They say, actually, they don't draw a

line actually. They go back and say well, you haven't been paying

visitor this long so this is what you owe us. It is a huge figure.

Obviously, they have a big war chest but those figures can he hit a

company quite hard. It is political as well because as you say, it is

not just Apple. People say that Facebook is also on their radar.

Also Hammers on has been pursued and Starbucks. Google as well. --

Amazon. People are trying to lobby get EU saying that it is effectively

going after US companies in an fairway. This is interesting from a

political point of view. So many people have clamoured to get Irish

passports since the Brexit vote. This is an example of the EU going

in and imposing their laws on domestic tax laws. Once you get the

US involved then our say in the EU law is being restrictive and

discriminatory against specifically US companies. That is a eager voice

coming in from the outside to start contesting these laws and

regulations as well. It's really, really interesting politically,

particularly from the business point of view in how the chips will fall

on this one. We will watch this space closely. Thank you for coming

in and giving us your take on this. When we hear from the European

Commission on Apple, we will update you hear at the BBC so keep and I am

that story. More detail is online. ICBC and the Bank of China are set

to report their latest earnings China's biggest banks have enjoyed

strong growth in profits, Rico Hizon is in our

Asaia Business Hub in Singapore. Good afternoon. Tell us more about

these two banks. It is not looking good. Expect shrinking revenues from

these two mainland banks. More pressure on the bottom line and are

a major concerns about the banking system and the high levels of bad

debt. With growth rates in the mainland at historic lows, between

6.5 and 7%, corporate health, both structural and cyclical reasons

behind the trend. Mining and still have made past investments funded by

debt, less affordable. While cyclical profit margin squeezes has

made debt servicing harder for Chinese companies. Analysts have

outlined several indicators showing how Chinese companies ability to pay

debt and generate profit is deteriorating and the most troubled

sectors right now in the country are at number one, real estate, number

two manufacturing, reels -- retail and wholesale. As a result, with all

of their debts put together, this will surely make Chinese banks

suffer. Local governments hoping to save their steel mills and coal

minders have -- miners, has been enlisting the banks to take the heat

by improving the terms of the loans or swapping for bonds or equity in

the groups. Expect some really dismal numbers from the mainland

banks. Today and going forward. We will brace ourselves. Thank you Rico

Hizon. Britain's vote to leave

the European Union has triggered a boom in one, little-known,

business sector. Lobbying consultants are reporting

a 30 or 40% leap in revenues as firms come to them,

looking for ways to influence the upcoming Brexit talks

to their best advantage. In any type of lobbying, you want to

get to the table early. You want it influenced the debate as we clear as

you can before some of the ideas get hardwired. They get deepened to the

system and it becomes very difficult to change a political direction.

The whole referendum campaign was about taking back control, taking it

from Brussels and giving it back to the British people. The danger is

that we take back control and handed over to multinational corporations

and their lobbyists. European regulators will spell out

exactly how the continent's so-called net neutrality

rules will work. It's been a fiercely fought battle -

with advocates of the principle saying it is about saving

the internet itself. Net neutrality is the idea that

all pieces of data moving across the internet should

be treated equally - regardless as to whether it's a web

page, a movie or a video call. Shares in how she has been. The

giant which makes cookies and chocolates. Mont Alessi is no longer

pursuing the acquisition. -- Mondelez.

The price of oil is most at $50 a barrel. That is how the week ended

in the United States. You are fully up-to-date, we will review the

papers in a moment. Season. -- see you then.

Deaths related to traffic pollution in Britain's cities

are at "epidemic" levels, because politicians have prioritised

road safety and economic growth over air quality -

according to research being presented at the Royal

Geographical Society's annual international conference today.