:00:00. > :00:16.Now it's time for World Business Report.
:00:17. > :00:21.After six months in court, a verdict is due on bribery
:00:22. > :00:26.and corruption charges against Samsung boss Jay Y Lee.
:00:27. > :00:27.The billionaire denies all wrongdoing.
:00:28. > :00:32.Plus, the flying kangaroo bounces back!
:00:33. > :00:35.Near record profits for Qantas this year despite cut-throat competition.
:00:36. > :00:37.The boss says it shows his turnaround plan is working.
:00:38. > :00:48.Also coming up, a boost for the economy -
:00:49. > :00:52.We round up our series on the business of death,
:00:53. > :01:00.with the fierce debate over inheritance tax.
:01:01. > :01:03.We start in the South Korean capital Seoul, where we are expecting
:01:04. > :01:08.a verdict in the corruption trial of Jay Y Lee.
:01:09. > :01:12.He's the head of the $300 billion Samsung business empire,
:01:13. > :01:19.He is accused of bribery, embezzlement and perjury,
:01:20. > :01:22.and could face up to 12 years in jail.
:01:23. > :01:28.He pleads not guilty and denies all wrongdoing.
:01:29. > :01:32.The trial has been going on for six months, so what's it all about?
:01:33. > :01:36.$36 million donated by Samsung to organisations linked to former
:01:37. > :01:44.She was removed from office and is also facing corruption charges.
:01:45. > :01:46.Back in 2015 the Samsung conglomerate was undergoing
:01:47. > :01:48.restructuring, with a controversial merger of two of its businesses.
:01:49. > :01:52.Prosecutors say the aim was to boost Mr Lee's personal power over
:01:53. > :01:55.the company, which he's been running since his father became ill in 2014.
:01:56. > :01:58.The deal needed shareholder backing from the national pension fund,
:01:59. > :02:00.which is run by the South Korean Government.
:02:01. > :02:03.Prosecutors argued the donations were bribes to win that vital
:02:04. > :02:09.The affair has once again raised concerns about South Korea's
:02:10. > :02:11.business culture, and the huge family-owned conglomerates
:02:12. > :02:21.They've long been seen as too cosily linked to government,
:02:22. > :02:23.and not sufficiently transparent in their dealings.
:02:24. > :02:27.To give you an idea, sales by Samsung companies account
:02:28. > :02:30.for around a fifth of South Korea's entire economy.
:02:31. > :02:48.Our business reporter Yogita Limaye is outside the courthouse in Seoul.
:02:49. > :02:57.Tell us a bit more about the details of what he is accused of, and what
:02:58. > :03:02.he said in his defence. Well, that is the courthouse behind me, where
:03:03. > :03:05.we expect Jay Y Lee to arrive shortly. He will be brought from a
:03:06. > :03:10.detention centre. In about one hour, the hearing will begin. We do expect
:03:11. > :03:15.a sentence today. There are multiple charges against him but the main one
:03:16. > :03:19.is bribery. Prosecutors say he made donations to organisations run by
:03:20. > :03:23.former President's Park in hay's close friend, and in exchange for
:03:24. > :03:26.that, he got support for the controversial merger you are talking
:03:27. > :03:30.about, which would pave the way for him to eventually become boss of the
:03:31. > :03:33.Samsung group. His father had been running the Samsung group until 2014
:03:34. > :03:39.when he suffered a heart attack. So Jay Y Lee has in de facto boss of
:03:40. > :03:43.this company in that time. So, I suppose the other thing is, this
:03:44. > :03:48.trial raises the wider questions about these chaebols and the way
:03:49. > :03:54.that South Korea does is this? That is right. Samsung is hugely
:03:55. > :03:58.important to South Korea. Outside, it is mostly known for Samsung's
:03:59. > :04:04.electronics, smartphones and appliances. But it is also involved
:04:05. > :04:06.in construction, shipbuilding, even a Samsung amusement park. It
:04:07. > :04:11.accounts for about one of the economy. It is dominated, the
:04:12. > :04:14.economy, by these large family run conglomerates. In the past there
:04:15. > :04:18.have in many accusations against the bosses of these groups, but even
:04:19. > :04:21.when they are convicted they are given a pardon by the government,
:04:22. > :04:24.because there has been fear that there could be an economic impact.
:04:25. > :04:28.However, now there is a new government in power. Resident Moon
:04:29. > :04:32.Jae-in has said he will take on the conglomerates. -- president. The
:04:33. > :04:37.government has said that it is hoping fro strong verdict today, and
:04:38. > :04:40.they are hoping that will send a strong message to large
:04:41. > :04:48.conglomerates, to clean up the way that they do business.
:04:49. > :04:51.Australian airline Qantas has posted its second best annual profit
:04:52. > :04:53.ever, despite fierce competition from its rivals.
:04:54. > :04:56.Boss Alan Joyce is calling it a vindication of his three-year
:04:57. > :04:58.turnaround plan, which has involved major cost cutting.
:04:59. > :05:19.So, I suppose they and their shareholders are delighted? They are
:05:20. > :05:22.absolutely delighted. Obviously, as you just said, those profits
:05:23. > :05:29.skyrocketed to their second-highest level in the airline's 97 year
:05:30. > :05:32.history. It turns just over $1 billion in pre-tax profit for the
:05:33. > :05:36.year to the end of June. Of course, we know that the airline's highest
:05:37. > :05:40.ever profit was delivered last year. This profit is down about 9% from
:05:41. > :05:44.that record. The strong result was really due to cost-cutting and its
:05:45. > :05:50.robust domestic is Mrs, which have helped to offset global competition.
:05:51. > :05:53.-- domestic businesses. Qantas also announced phones today to sell
:05:54. > :05:59.non-stop flights from Sydney to London and New York are 2022. --
:06:00. > :06:04.plans. Those would be among the longest haul flights that exist, 20
:06:05. > :06:07.hours or more. That plan would depend on the airline securing
:06:08. > :06:10.planes from Boeing and Airbus that are capable of travelling that kind
:06:11. > :06:13.of distance. I certainly wouldn't want to. Next year they also
:06:14. > :06:20.confirmed they will fly directly from Perth to London, which Chief
:06:21. > :06:23.Executive Alan Joyce says will be a huge leap forward. Not surprisingly,
:06:24. > :06:25.Qantas shares have been rising today.
:06:26. > :06:27.We are also rounding up our week-long series
:06:28. > :06:30.on the business of death, looking at the financial issues
:06:31. > :06:32.raised by aging populations around the world.
:06:33. > :06:33.Benjamin Franklin famously said nothing is certain
:06:34. > :06:37.In many countries inheritance tax or death taxes are
:06:38. > :06:44.But in others, like Israel, Australia and Sweden,
:06:45. > :06:49.Is it good for the economy, a fair way of redistributing wealth
:06:50. > :07:03.We get the views of two UK tax experts.
:07:04. > :07:13.I would say that yes, it is good for the economy. It puts money into the
:07:14. > :07:17.Treasury, which obviously pays for various things, including various
:07:18. > :07:21.necessities. But inheritance tax also has an inbuilt protection for
:07:22. > :07:28.businesses. Good points. I don't think eventually raises much money.
:07:29. > :07:33.That quarter to 0.5% of GDP, it is a few billion pounds. At the moment it
:07:34. > :07:37.is a chance tax. It is only those people who do not have the knowledge
:07:38. > :07:40.or the large enough state to pay for the accountants, lawyers and wealth
:07:41. > :07:44.manages to hide it for them. I don't think it works. If people see that
:07:45. > :07:47.40% of what they leave is effectively going to be taken by the
:07:48. > :07:51.revenue, it does actually encourage them to go out, live their lives,
:07:52. > :07:58.enjoy themselves, go and spend, and clearly that is good for the
:07:59. > :08:02.economy. I think inheritance taxes are really marginal to business
:08:03. > :08:06.owners. Inheritance tax does actually remove potential investment
:08:07. > :08:09.capital from the economy. We are talking about relatively small
:08:10. > :08:12.businesses here. If you are going to receive a few hundred thousand
:08:13. > :08:16.pounds, that is something you could potentially invest in a business. So
:08:17. > :08:19.there is an art and this is it removes capital that could be
:08:20. > :08:22.invested. I don't think it takes away from businesses. I think there
:08:23. > :08:26.are opportunities there to put it into businesses. There is a big
:08:27. > :08:29.amount of cash and if somebody dies with the tickets are 40% inheritance
:08:30. > :08:32.tax. If they instead invest that money in their children's Isner is,
:08:33. > :08:36.that cash is inverted into something that isn't -- that is exempt. So the
:08:37. > :08:41.regime can actually encourage investment into businesses. I think
:08:42. > :08:46.inheritance tax should be abolished. I think for the amount of revenue at
:08:47. > :08:49.raises for the Treasury, it frankly isn't worth it. I don't think it
:08:50. > :08:53.should be abolished. I think it makes its contribution to the
:08:54. > :08:55.Treasury and it is an awful lot better than some of the
:08:56. > :08:59.alternatives, which is effectively paying more tax during your lifetime
:09:00. > :09:04.when you should be enjoying your money and what you have earned.
:09:05. > :09:05.Well, I am sure inheritance tax will continue to divide opinion.
:09:06. > :09:08.To other business news now, and music streaming service Spotify
:09:09. > :09:11.has signed a new licensing deal with Warner Music Group,
:09:12. > :09:14.paving the way for an expected flotation on the New York Stock
:09:15. > :09:18.After deals with Sony and Universal, Warner was the last of the three big
:09:19. > :09:21.record labels to agree to renewed terms to make its catalogue
:09:22. > :09:23.available to Spotify's 140 million users.
:09:24. > :09:26.Artists and labels have in the past complained about minuscule revenue
:09:27. > :09:29.from streaming sites when compared to downloads or physical sales.
:09:30. > :09:32.Investors have been selling off shares of supermarkets in the US
:09:33. > :09:34.after Amazon said it would complete its takeover
:09:35. > :09:36.of the Whole Foods chain on Monday, and immediately embark
:09:37. > :09:39.Amazon's news reignited fears for the future
:09:40. > :09:41.of the traditional supermarket industry.
:09:42. > :09:45.Walmart, Target and Costco all saw their shares fall.
:09:46. > :09:48.Office space company WeWork is to get a major investment worth
:09:49. > :09:50.$4.4 billion from Japanese tech giant Softbank.
:09:51. > :09:52.The New York start-up was founded in 2010,
:09:53. > :09:55.and helped pioneer the concept of shared office space.
:09:56. > :09:58.It operates in 50 cities across 16 countries around the world,
:09:59. > :10:11.and is planning major expansion into Asia.
:10:12. > :10:15.Speaking of Asia, let's take a look at how the Asian markets are
:10:16. > :10:16.looking. Asian stocks advanced on Friday,
:10:17. > :10:19.once again shrugging off a sluggish day on Wall Street, and the dollar
:10:20. > :10:22.strengthened as attention shifted to the central bankers'
:10:23. > :10:38.symposium in Jackson Hole, That is the Asian markets. We will
:10:39. > :10:52.check in on the US markets later. Don't go away.
:10:53. > :10:56.South Wales Police missed a number of opportunities to bring convicted