22/09/2016 World Business Report


22/09/2016

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When Sally picks up what she dropped during the headlines, she will bring

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you the World Business Report. Transatlantic mega deals

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face a growing backlash Plus Apple leaves a sour taste

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as the multi-billion dollar tax row I'm Sally Bundock -

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also in the programme Rico Hizon will have the market reaction

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in Asia to the latest Fed meeting. I dropped the clicker that does my

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boards, so that is probably why they do not work sometimes. I am quite

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clumsy. We start in the Slovak capital

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Bratislava where European Union trade ministers are gathering today

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to discuss a massive free trade deal We are talking of course

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about the Transatlantic Trade and Investment Partnership

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or TTIP for short. It is facing a growing public

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backlash against free trade and globalisation -

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and rising political opposition trade tariffs and regulations

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would bring vast economic benefits. They claim it's worth 95 billion

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euros a year to the US economy - That's more than 500 euros

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for each person in Europe. But opponents say it gives too much

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power to multinational companies. They fear it will lower

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European standards on food It could push down wages and see

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more jobs lost to outsourcing. A similar deal between

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the EU and Canada - known as CETA - has

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already been signed. It will come intro force next year

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if Europe's national But there is opposition

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in several countries. Thousands protested on the streets

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of Brussels this week against both TTIP and CETA - demanding

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that the EU abandon the deals. Campaigners are warning

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they will limit governments' ability And they are worried too much

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of the negotiation is going TRANSLATION: These trade

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agreements must first And that's the big problem now,

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that we don't know the whole content But we see that a number

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of fundamental achievements that have been realised in Europe,

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such as environmental protection, social protection, are being put

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on the line. And that's why it is so important

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that these deals are not concluded behind closed doors but that

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a public debate is held. I think there's already

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enough corporate power, and if we start making

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all transactions and all trade free between the US and Europe,

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all low quality products can go both ways and that's not good

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and multinationals will get even Tom Packer is Fellow

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of the Rothermere American Institute Good morning. We heard there from

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some of the protesters in Europe and that was a protest or in Brussels

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but there have been protests in other cities across Europe. There is

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concern that this deal could lead to the dire of areas within Europe they

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fought so hard for. Give us your take on this. Much of it has been

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done in a private forum and there has not been much transparency. That

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has led to a great deal of uncertainty. You look at polls on

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both side of the Atlantic. It polls badly. There is a great deal of

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opposition in Congress. Both candidates say they are against it.

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That does not necessarily mean they will be against it when they are

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elected president. How do you think this will play out? It is not just

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the likes of Donald Trump and Hillary Clinton against this but

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also people like the French president and other key leaders

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within Europe saying this is not going to happen. Any hope of seeing

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a result? If we want this, there is hope. I think what is particularly

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plausible is that there will be some kind of new TTIP. A TTIP different.

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Donald Trump has made a lot of protectionist noise and Mrs Clinton

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has a long history of being protectionist. In protection --

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election years at least. President Obama will find it difficult to get

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this past for he leaves office. If he doesn't will will be impressive.

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The United Kingdom has been a positive supportive force within

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this process and the UK will no longer be a part of TTIP. Is that

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play a part for the US, is it a problem for them? I think the UK is

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the popular part of Europe in the US, at the same time, it would be a

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lot easier to do a similar deal between the United Kingdom and the

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United States and there would be far less opposition in Congress to that

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kind of deal. Thank you so much for coming in. If we do get any news out

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of the Sloper we will update you. Talking about trade relations

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between the US and Europe have not been helped

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by the huge row over Apple's tax avoidance.

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The US Treasury Secretary Jack Lew has told the BBC it is unacceptable

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to America to have its tax base eroded by a foreign power.

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last month the world 's biggest company was hit with the European

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Union's biggest ever tax ruling. After the EU concluded that Apple's

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Siu Kai Tak still with Ireland amounted to illegal state aid. The

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order for Apple to pay $14 billion in taxes has sparked anger in the

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United States. A row over tax is not dying down. The US Treasury

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Secretary remains aggrieved at what he sees as Europe taking American

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tax dollars. The problem with the decision is that it is out of

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boundaries of tax policy to retro actively impose a tax burden that

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taxes company and reduces the tax base of another jurisdiction, in

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this case the United States. Our registration do their job and

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protect their own interests? Looking at the global tax system it depends

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on cooperation. Most tax authorities, we do not consider it

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acceptable to reach in and tax income from another jurisdiction.

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Europe sees it differently. The commission sees it as promoting fair

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competition. To us it is very much a competition case. Because we have

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this third competition instrument. Anti-trust, for example, that we

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share with the US. But we have a third tool to secure an even playing

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field and that is state control. They do not have that concept in the

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United States. That is why it is one of the reasons it is so foreign for

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them and that is why we get this pushback. It does not sound like it

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is foreign to the US government. It says the solution is local and

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global tax reform. They find it unacceptable for companies to avoid

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tax by shopping for tax avoidance strategies. The answer is we need

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tax reform and in other countries we need to see an end to the rest of

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the bottom of low tax rates because one pushes on the other pools. That

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is a global conversation where we have had a lot of progress in the

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last few years. After meeting in Washington this week it does not

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sound like the two sides are ever going to see eye to eye on who gets

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the money. Music to the years of those but they need to reach an

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all-encompassing agreement on trade. Staying with news out of the US -

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the big event for financial markets this week was the Federal Reserve

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meeting and as most predicted Janet Yellen and her team decided

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to hold off raising interest rates. Stocks surged on Wall Street

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as the central bank chief explained US economic growth is on track

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but they are waiting for evidence Rico Hizon has been tracking

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the market reaction in Asia for us. Nice to see you. Markets in Asia

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also cheering what has been said. That is right. You have Asian

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investors smiling from year to year. Very happy. Janet and company have

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decided on the monetary policy. Very parlours so far today is the

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regional market. With the exception of Japan which is closed for a

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public holiday. No reaction from the Japanese financial markets. Asian

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shares are surging. Taking their cue from the United States. The move to

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sit on interest rates is pressuring right now. The US dollar, is

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pressured and lifting commodity prices and stocks. In many Asian

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countries, all in positive territories. Ma Tei to say that the

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market got what it wanted and what is expected. The Federal Reserve

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keeping interest rates low. After the Fed reserve and the Bank of

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Japan, the Philippines and the bank of Indonesia will be meeting

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shortly. We will wait to see how they decide on policies and a couple

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of weak's time. It is rumoured that Apple could be

:10:28.:10:42.

teaming up with the supercar maker 's McLaren. We will discuss that

:10:43.:10:43.

later. A BBC News investigation has found

:10:44.:10:51.

that tens of thousands of operations were cancelled at short notice

:10:52.:10:54.

by English hospitals last year -

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