06/04/2016

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:00:08. > :00:12.Documents from the Panama leak show almost a third of the business

:00:13. > :00:15.of the law firm Mossack Fonseca comes from its offices

:00:16. > :00:19.We have a special report which also shows the other

:00:20. > :00:21.lengths China's elite are going to to get their millions

:00:22. > :00:26.Donald Trump's so-far smooth path to an outright win hits a major bump

:00:27. > :00:30.with Ted Cruz's decisive victory in Wisconsin.

:00:31. > :00:32.We look at what a contested Republican Party convention in July

:00:33. > :00:39.Also coming up, the unhealthy side of the fashion industry.

:00:40. > :00:47.A Gucci advert is banned for using a "thin and gaunt" model.

:00:48. > :00:50.Suits you, sir - we meet the first female tailor to move

:00:51. > :01:07.Leaked files from the secretive Panamanian law firm

:01:08. > :01:10.Mossack Fonseca show almost one third of its business

:01:11. > :01:12.comes from its offices in Hong Kong and China,

:01:13. > :01:18.These files show the staggering amounts of cash leaving China,

:01:19. > :01:21.a move that's undermining the country's fragile economy

:01:22. > :01:33.They're desperate to keep their money safe.

:01:34. > :01:38.Many are anxious to smuggle their wealth out of China, away

:01:39. > :01:45.I met a man who works as a money mule, carrying cash

:01:46. > :01:54.TRANSLATION: I strap the money to my body or carry a small bag.

:01:55. > :02:05.They target those with lots of luggage or who are nervous.

:02:06. > :02:09.Even the Chinese elite are keeping their money offshore.

:02:10. > :02:13.We showed you leaked files from Mossack Fonseca that revealed

:02:14. > :02:20.how the relatives of China's leaders use offshore companies.

:02:21. > :02:23.Now we have learned China is the firm's biggest market.

:02:24. > :02:27.Mossack Fonseca manages more than 16,000 offshore companies

:02:28. > :02:36.It is not just people tied to the leadership, people are moving

:02:37. > :02:40.out of China on a scale never seen before and much of that money passes

:02:41. > :02:51.-- people are moving their money out of China.

:02:52. > :02:54.Then the money has to go somewhere and is often parked in real estate -

:02:55. > :03:06.This woman works for a company that lists companies abroad.

:03:07. > :03:10.In the UK, typically London is popular.

:03:11. > :03:19.we have seen Brighton has seen a 700% increase in popularity.

:03:20. > :03:23.Every Chinese citizen can transfer ?35,000 a year outside the country.

:03:24. > :03:31.But for those who want to hide their wealth,

:03:32. > :03:40.The outflow of capital is something the Chinese government is unhappy

:03:41. > :03:52.But the fact that they are giving it a fair bit of priority and yet

:03:53. > :03:56.the scale of the problem remains so large means they're not entirely

:03:57. > :04:04.Across Hong Kong it is common to see visitors from mainland China

:04:05. > :04:10.Think of it as a symbol for what is happening around the globe.

:04:11. > :04:17.Chinese leaders are spending their money elsewhere.

:04:18. > :04:23.They're protecting themselves, but making China more vulnerable.

:04:24. > :04:37.What is driving people to take so much money out of the country? The

:04:38. > :04:40.majority of people taking money out of the country are simply worried

:04:41. > :04:45.about the economy, so they have built up a nest egg in China but now

:04:46. > :04:50.the currency is really depreciating, and their concerns it is going to

:04:51. > :04:54.depreciate further, so they want to protect their money and sent it off

:04:55. > :04:58.shore. There is a smaller group of people who have made their money

:04:59. > :05:02.illegally and they want to hide it offshore. While China has a serious

:05:03. > :05:07.anti-corruption campaign that doesn't seem to be ending any time

:05:08. > :05:12.soon, they are desperate to hide their wealth overseas. It is legal

:05:13. > :05:18.to take a certain amount of money out of China. Every Chinese person

:05:19. > :05:23.can take up to 50,000 dollars out of China a year, but many people to

:05:24. > :05:26.take more money out to invest or buy property. To take more out, they

:05:27. > :05:32.have to find their way to do it. Some ways are legal but a lot of

:05:33. > :05:36.them are not. What has been the general reaction in China to some of

:05:37. > :05:43.the spotlight which has been cast on some of the offshore habits of the

:05:44. > :05:48.Chinese? The story has been almost entirely blocked. At the same time,

:05:49. > :05:53.this whole story really has put pressure on the Chinese leadership.

:05:54. > :05:58.On the one hand, we learned that the relatives of Chinese top leaders are

:05:59. > :06:01.themselves clients of Mossack Fonseca but the Chinese leadership

:06:02. > :06:05.has said they need to do something to cut down the massive flow of

:06:06. > :06:10.money leading the country, because it is hurting the economy. Are

:06:11. > :06:15.worried the authorities? What effect is it likely to have if it

:06:16. > :06:19.continues? They keep saying they want to enforce Chinese banking

:06:20. > :06:25.controls, which are quite strict, but they're so many ways to get

:06:26. > :06:28.money out, so many methods, the people who helped smuggle money out

:06:29. > :06:34.are one step ahead. It is a real problem. An extraordinary picture of

:06:35. > :06:40.a man taping hundreds of dollars to his legs in an airport. I spoke to a

:06:41. > :06:43.money mule who said he travelled several times across the border

:06:44. > :06:47.every day carrying a small bag of money. It is always transferred into

:06:48. > :06:52.US dollars before they carry it because they are lighter than the

:06:53. > :06:55.Chinese currency. He carries that several times a day. This is a very

:06:56. > :06:58.difficult thing for the authorities to clamp down on.

:06:59. > :07:00.Elsewhere, the impact of the Panama Papers revelations has

:07:01. > :07:02.been felt strongly in Iceland, where the Prime Minister

:07:03. > :07:10.Our correspondent Paul Adams sent us this update on the situation.

:07:11. > :07:12.So this is the parliament building here in Reykjavik.

:07:13. > :07:21.This square in front of Parliament has for the past

:07:22. > :07:26.two nights been the scene of major protests,

:07:27. > :07:28.almost unprecedented in Iceland's recent history.

:07:29. > :07:34.And, as we saw yesterday, they forced the

:07:35. > :07:45.This has been one of the distinctive features of these protests, the

:07:46. > :07:52.bananas hanging from the trees and sometimes wielded by the

:07:53. > :07:55.demonstrators and even thrown at Parliament along with pots of

:07:56. > :07:59.People feel this is not just a story about their

:08:00. > :08:01.former Prime Minister and his financial dealings, dealings that

:08:02. > :08:05.they knew little about in the past, but that this is symptomatic of a

:08:06. > :08:08.demonstrators and even thrown at Parliament along with pots of

:08:09. > :08:15.That, in some ways, Iceland has become a banana

:08:16. > :08:17.republic, a place where the political and business elites

:08:18. > :08:19.conduct their activities behind and out of the

:08:20. > :08:20.public eye, in secret and

:08:21. > :08:22.not necessarily in the interest of the people themselves.

:08:23. > :08:25.And so that is why we are probably going to see

:08:26. > :08:28.more protests here by people who say they want to see a complete

:08:29. > :08:31.resignation of the Government, a new political system, and even some

:08:32. > :08:33.argue a new constitution to increase transparency and reduce the scope

:08:34. > :08:36.for what they see as a level of public corruption.

:08:37. > :08:39.We have so many political problems, I think it is

:08:40. > :08:42.too much for such a small nation to have such big

:08:43. > :08:47.I think it's really amazing how much a

:08:48. > :08:51.little country can do so much kind of damage to its own country and

:08:52. > :08:55.just be pretty much a laugh around the universe.

:08:56. > :08:58.The ruling coalition believes that it can carry

:08:59. > :09:04.But a new poll out today suggests that 70% of

:09:05. > :09:06.Icelanders want to see more resignations.

:09:07. > :09:09.Indeed, a lot of people wanting entirely new

:09:10. > :09:13.When we spoke to one member of the coalition last night,

:09:14. > :09:20.he admitted that early elections are a real possibility.

:09:21. > :09:21.The fallout continues for the European football

:09:22. > :09:24.Police in Switzerland have raided its headquarters

:09:25. > :09:26.after it became embroiled in the financial scandal.

:09:27. > :09:29.Authorities were searching for a contract signed by former Uefa

:09:30. > :09:34.official Gianni Infantino, who is now President of Fifa.

:09:35. > :09:36.The leaked document allegedly shows that rights to televise

:09:37. > :09:39.the Champions League were sold to businessmen accused of bribery.

:09:40. > :09:46.Gianni Infantino and Uefa deny any wrongdoing.

:09:47. > :09:48.The frontrunner for the Republican US presidential nomination,

:09:49. > :09:50.Donald Trump, has suffered a heavy defeat in the latest

:09:51. > :09:55.He was beaten into second place by the Texan senator Ted Cruz,

:09:56. > :09:58.who called his victory a "decisive turning point".

:09:59. > :10:00.In the Democratic race, Bernie Sanders scored a strong

:10:01. > :10:14.Our North America Editor, Jon Sopel, explains.

:10:15. > :10:19.Last night was a turning point in the race...

:10:20. > :10:22.Good morning, Milwaukee, after a dramatic night

:10:23. > :10:25.Donald Trump beaten, and conservative talk radio hosts like

:10:26. > :10:28.The thing about Donald Trump, not only does he act

:10:29. > :10:35.like a 12-year-old bully in the playground,

:10:36. > :10:37.he is a remarkably thin-skinned individual who runs away

:10:38. > :10:42.This visit to a diner yesterday morning was

:10:43. > :10:45.the last that they've seen of Donald Trump in Wisconsin.

:10:46. > :10:47.He held no party, no news conference, nothing last night.

:10:48. > :10:59.A man who has been ever present on TV screens went to ground.

:11:00. > :11:01.His campaign issued a terse statement saying Ted Cruz is worse

:11:02. > :11:16.But try telling that to the victor, the Conservative evangelical

:11:17. > :11:25.He is massively preferred to Mr Trump and they are

:11:26. > :11:29.Last night a win for him, a win for them.

:11:30. > :11:36.It is a call from the hard-working men and women of Wisconsin

:11:37. > :11:47.This is a significant victory for Ted Cruz because it means

:11:48. > :11:50.there are now no certainties in the Republican race.

:11:51. > :11:53.Yes, Donald Trump is way out in front, but having spent nine

:11:54. > :11:57.months to find political gravity, tonight he has come back

:11:58. > :12:02.to earth with a bump, to the delight of the people in this

:12:03. > :12:07.room and a good many in the Republican establishment.

:12:08. > :12:10.Because what they're eyeing now is something called a brokered

:12:11. > :12:16.The candidate chosen by arm-twisting and backroom deals.

:12:17. > :12:26.The Republican grandees' last chance to stop Trump.

:12:27. > :12:28.This summer's convention takes place in the hall where the first

:12:29. > :12:30.Republican debate took place last August, but Donald Trump isn't

:12:31. > :12:35.It could be a bloody battle for the nomination, for the soul

:12:36. > :12:43.Jon Sopel, BBC News, Milwaukee, Wisconsin.

:12:44. > :12:46.The EU has been outlining proposals to reform its asylum system

:12:47. > :12:50.At the moment people must claim asylum in the first

:12:51. > :12:52.member nation they enter, but this has put a huge burden

:12:53. > :12:55.The European Commissioner, Frans Timmermans, said EU countries

:12:56. > :12:58.should consider either adding an emergency measure when nations

:12:59. > :13:07.could no longer cope, or scrapping the present system altogether.

:13:08. > :13:10.The WhatsApp phone messaging service says it has started encrypting

:13:11. > :13:13.That means nobody except the sender and receiver can read them,

:13:14. > :13:17.More than 1 billion people around the world use

:13:18. > :13:21.WhatsApp to send text, picture and video messages.

:13:22. > :13:23.You can also use it to make phone calls.

:13:24. > :13:26.WhatsApp says this announcement is about privacy and freedom

:13:27. > :13:29.of speech, and will protect its customers' messages.

:13:30. > :13:43.We've been speaking to Jurgen Geuter, a journalist and computer

:13:44. > :13:48.scientist, about the benefits of and problems with encryption.

:13:49. > :13:53.We use encryption when we do online banking and we don't want anybody

:13:54. > :13:58.else to see what the amount of money we have is in our bank accounts

:13:59. > :14:00.or be able to even send money to someone else

:14:01. > :14:06.Also, of course, there is the benefit in being able

:14:07. > :14:09.to encrypt your data, so your passwords are not sent

:14:10. > :14:13.in the clear and people can't take over your social media accounts.

:14:14. > :14:17.As well as not being able to listen to what ever it is that

:14:18. > :14:23.If you want to talk online with a lawyer or with a doctor,

:14:24. > :14:26.you don't want anyone else to be able to listen in on that exchange

:14:27. > :14:34.That is obviously useful if not important to have that

:14:35. > :14:40.kind of infrastructure there for everyone to use.

:14:41. > :14:43.It creates problems when it is seen as an absolute because we have

:14:44. > :14:45.in our Western democracies, we have the rule of law,

:14:46. > :14:50.we have freedoms, freedom of speech, your flat or apartment is secure

:14:51. > :14:59.from anyone else looking into it, but we also know that these

:15:00. > :15:01.freedoms sometimes need to be restricted in order

:15:02. > :15:09.Matt Burgess is a writer at the technology magazine Wired.

:15:10. > :15:16.He can tell us how widespread encrypted messaging apps are.

:15:17. > :15:19.There's the end-to-end encrypted messaging platform Telegram.

:15:20. > :15:21.That is completely free, it has 100 million users,

:15:22. > :15:26.This move from WhatsApp actually makes it the biggest encrypted

:15:27. > :15:30.We could see other companies follow suit, so Facebook owns WhatsApp,

:15:31. > :15:32.so Facebook could move down this line.

:15:33. > :15:36.iMessage on Apple is already end-to-end encrypted,

:15:37. > :15:39.so there are other companies that do this and other protocols that do.

:15:40. > :15:41.But it's going to be something that increases.

:15:42. > :15:44.It will provide a challenge for authorities who want to seek

:15:45. > :15:47.information and actually access information that is on these phones

:15:48. > :15:50.that actually is encrypted, but that's where the balance has

:15:51. > :15:54.These companies have to work with authorities on certain

:15:55. > :15:56.cases and they also have to protect their users

:15:57. > :16:04.Now a look at some of the day's other news.

:16:05. > :16:06.Former Bosnian Serb leader Radovan Karadzic has appeared

:16:07. > :16:08.in court for the first time since he was sentenced

:16:09. > :16:10.to 40 years for genocide and crimes against humanity.

:16:11. > :16:12.He described his conviction as "monstrous" and insisted

:16:13. > :16:15.he was innocent, urging the judge at The Hague to release him

:16:16. > :16:21.Prosecutors at the Yugoslavia crimes tribunal in The Hague say

:16:22. > :16:23.they will appeal the acquittal of Serb ultra-nationalist

:16:24. > :16:26.Vojislav Seselj, who was found not guilty last week of war crimes

:16:27. > :16:29.and crimes against humanity during the Balkan wars in the 1990s.

:16:30. > :16:31.His Radical Serb Party is expected to return to parliament

:16:32. > :16:40.The jury at the Hillsborough inquests into the deaths of 96

:16:41. > :16:43.Liverpool fans has been sent out to consider its verdicts,

:16:44. > :16:49.The coroner has asked the jury to consider 14 key questions,

:16:50. > :16:53.including whether or not the match police commander was responsible

:16:54. > :17:04.for the unlawful killing of the fans by gross negligence.

:17:05. > :17:07.The Italian fashion house Gucci has been banned from using an advert

:17:08. > :17:09.in the UK which features an "unhealthily thin" model.

:17:10. > :17:13.Here's the image - take a look and see what you think.

:17:14. > :17:23.Gucci has defended it, saying the model is toned and slim.

:17:24. > :17:29.We were trying to show you the image in question from the advert. You may

:17:30. > :17:36.catch a glimpse in the monitor behind B, but it does show a very

:17:37. > :17:39.thin model. Israel is the first question to ban size zero models.

:17:40. > :17:41.Dr Yofi Tirosh from the University of Tel Aviv

:17:42. > :17:56.Israel was the first country to take this measure. What led to that move?

:17:57. > :18:02.There were a few cases of anorexic models being hospitalised, being at

:18:03. > :18:12.real risk to their life and health, and they later converted, a fashion

:18:13. > :18:17.agent decided to take things into his hands and he lobbied for this

:18:18. > :18:24.law, which goes to show you that people can make a real difference

:18:25. > :18:29.single-handedly. What the law says is two simple things. One, if you

:18:30. > :18:38.want to shoot models, you have to provide the publisher of the adverts

:18:39. > :18:47.or commercials with a note from the doctor that says the BMI of the

:18:48. > :18:55.model is not too low. So the responsibility is on the advertising

:18:56. > :19:01.agency in the newspaper or television channel cannot put an

:19:02. > :19:06.advert that shows waiflike models. The other thing that it does is

:19:07. > :19:13.that, if you use photo shop in adverts to make your models zero,

:19:14. > :19:18.you have to put a banner, just like we would have on cigarettes, that

:19:19. > :19:24.says, we used photo shop to make this model their nerve. What was the

:19:25. > :19:28.general reaction and what impact has it had on the images people are

:19:29. > :19:35.seeing? Was there a positive response? As you would expect, some

:19:36. > :19:39.of the responses were positive and some were negative, especially from

:19:40. > :19:46.models themselves, that said this was an infringement on their right

:19:47. > :19:56.to free occupation and their income would be damaged etc. But, after the

:19:57. > :19:59.first wave, it became part of the reality and nobody is really

:20:00. > :20:05.opposing it these days. Although, I have to say, in my eyes, the

:20:06. > :20:12.importance of this law is pretty much in the discussion that it

:20:13. > :20:16.raised. There are no cases. Nobody goes to court at this law. It is

:20:17. > :20:20.only four years old, so we don't know what will happen. It is more

:20:21. > :20:27.the fact that it exists and that, through it, we are talking about

:20:28. > :20:32.body image issues. This is what I see as the importance of this law.

:20:33. > :20:36.We will have to leave it there. Fascinating. Thank you for joining

:20:37. > :20:43.us. We appreciate your time. The World Health Organisation has

:20:44. > :20:46.warned the world is facing The disease now affects

:20:47. > :20:56.almost one in 11 adults. The surge is mainly down to type two

:20:57. > :21:04.diabetes, the four most closely linked to lifestyle and diet. The

:21:05. > :21:09.WHO said that was to blame for 1.2 million deaths in 2012.

:21:10. > :21:11.The conviction of a woman in Northern Ireland two days ago

:21:12. > :21:14.for taking pills to bring about an abortion has reopened

:21:15. > :21:17.The law on the termination of pregnancy is much more

:21:18. > :21:20.strict in Northern Ireland than the rest of the UK.

:21:21. > :21:22.We hear from another woman in Northern Ireland who decided

:21:23. > :21:24.to end her pregnancy in the same way.

:21:25. > :21:29.Here's our Ireland Correspondent Chris Page.

:21:30. > :21:31.There is no issue in Northern Ireland more complex

:21:32. > :21:36.This woman has spoken to the BBC about her experience.

:21:37. > :21:40.She took pills illegally to bring about a miscarriage.

:21:41. > :21:43.We've agreed to her request for anonymity.

:21:44. > :21:52.I'm afraid for this young mother who has been taken

:21:53. > :22:00.This what is like what was going on in the 1880s.

:22:01. > :22:05.The woman who was prosecuted about about 11 months pregnant.

:22:06. > :22:08.She took drugs that she bought online.

:22:09. > :22:11.The court heard she could not raise enough money to go to England

:22:12. > :22:18.The judge gave her a suspended sentence.

:22:19. > :22:22.I would be concerned that the judge undermined

:22:23. > :22:27.This antiabortion campaigner thinks the punishment

:22:28. > :22:34.She is opposed to any moves to loosen

:22:35. > :22:38.I think it is important that Northern Ireland continues to be

:22:39. > :22:43.There are many women's lives destroyed in the United Kingdom,

:22:44. > :22:46.And the denial of the human rights of 200,000 babies

:22:47. > :22:57.There have been some cases here at the High Court in Belfast

:22:58. > :22:59.examining how the legislation should be interpreted and whether the law

:23:00. > :23:04.But in Northern Ireland, abortion remains basically illegal,

:23:05. > :23:09.The Stormont Justice Minister has tried to legalise terminations

:23:10. > :23:13.in cases where the foetus has a fatal abnormality.

:23:14. > :23:16.But other politicians wouldn't agree.

:23:17. > :23:19.He thinks there could be a change after the elections to the Northern

:23:20. > :23:24.The reality is we cannot continue to assume that people catching

:23:25. > :23:28.planes to England will solve the problems of Northern Ireland.

:23:29. > :23:34.Limited changes have been talked about, but none of main political

:23:35. > :23:37.parties here are in favour of bringing the law into line with

:23:38. > :23:41.Events like the recent prosecution generate strong feelings on both

:23:42. > :23:54.London's Savile Row is known worldwide for its famous suits

:23:55. > :23:57.Today history was made when for the first time

:23:58. > :24:10.in over 200 years a shop was opened by a female master tailor.

:24:11. > :24:13.For 170 years, it's meant quality, tradition

:24:14. > :24:38.I'm the first female master craftsmen to have a business

:24:39. > :24:41.on Savile Row, and the first woman to have their own name

:24:42. > :24:43.above the door, so yes, I think that's quite something.

:24:44. > :24:47.Kathryn Sargent learned her skills on Savile Row.

:24:48. > :24:50.Born in Leeds, the day she first visited London's home of tailoring,

:24:51. > :24:56.All the tailors look like clubs, almost.

:24:57. > :24:59.They have beautiful uniforms and garments in the windows,

:25:00. > :25:05.so I was determined and I thought this is where I would like to work.

:25:06. > :25:08.Introducing the best dressed street in the world.

:25:09. > :25:11.Savile Row was founded here by the first and most famous

:25:12. > :25:16.So now Henry Poole has a new female neighbour.

:25:17. > :25:19.And chief cutter Philip Parker remembers her well.

:25:20. > :25:25.She was the one female among a number of young men...

:25:26. > :25:32.I did try, but, you know, that's the way it goes.

:25:33. > :25:40.And while Kathryn Sargent is the first on the Row,

:25:41. > :25:54.What used to be a men-only world is changing fast.

:25:55. > :25:59.Next the weather - but for now from me and the rest