06/04/2016 World News Today

Documents from the Panama leak show almost a third of the business

of the law firm Mossack Fonseca comes from its offices

We have a special report which also shows the other

lengths China's elite are going to to get their millions

Donald Trump's so-far smooth path to an outright win hits a major bump

with Ted Cruz's decisive victory in Wisconsin.

We look at what a contested Republican Party convention in July

Also coming up, the unhealthy side of the fashion industry.

A Gucci advert is banned for using a "thin and gaunt" model.

Suits you, sir - we meet the first female tailor to move

Leaked files from the secretive Panamanian law firm

Mossack Fonseca show almost one third of its business

comes from its offices in Hong Kong and China,

These files show the staggering amounts of cash leaving China,

a move that's undermining the country's fragile economy

They're desperate to keep their money safe.

Many are anxious to smuggle their wealth out of China, away

I met a man who works as a money mule, carrying cash

TRANSLATION: I strap the money to my body or carry a small bag.

They target those with lots of luggage or who are nervous.

Even the Chinese elite are keeping their money offshore.

We showed you leaked files from Mossack Fonseca that revealed

how the relatives of China's leaders use offshore companies.

Now we have learned China is the firm's biggest market.

Mossack Fonseca manages more than 16,000 offshore companies

It is not just people tied to the leadership, people are moving

out of China on a scale never seen before and much of that money passes

-- people are moving their money out of China.

Then the money has to go somewhere and is often parked in real estate -

This woman works for a company that lists companies abroad.

In the UK, typically London is popular.

we have seen Brighton has seen a 700% increase in popularity.

Every Chinese citizen can transfer ?35,000 a year outside the country.

But for those who want to hide their wealth,

The outflow of capital is something the Chinese government is unhappy

But the fact that they are giving it a fair bit of priority and yet

the scale of the problem remains so large means they're not entirely

Across Hong Kong it is common to see visitors from mainland China

Think of it as a symbol for what is happening around the globe.

Chinese leaders are spending their money elsewhere.

They're protecting themselves, but making China more vulnerable.

What is driving people to take so much money out of the country? The

majority of people taking money out of the country are simply worried

about the economy, so they have built up a nest egg in China but now

the currency is really depreciating, and their concerns it is going to

depreciate further, so they want to protect their money and sent it off

shore. There is a smaller group of people who have made their money

illegally and they want to hide it offshore. While China has a serious

anti-corruption campaign that doesn't seem to be ending any time

soon, they are desperate to hide their wealth overseas. It is legal

to take a certain amount of money out of China. Every Chinese person

can take up to 50,000 dollars out of China a year, but many people to

take more money out to invest or buy property. To take more out, they

have to find their way to do it. Some ways are legal but a lot of

them are not. What has been the general reaction in China to some of

the spotlight which has been cast on some of the offshore habits of the

Chinese? The story has been almost entirely blocked. At the same time,

this whole story really has put pressure on the Chinese leadership.

On the one hand, we learned that the relatives of Chinese top leaders are

themselves clients of Mossack Fonseca but the Chinese leadership

has said they need to do something to cut down the massive flow of

money leading the country, because it is hurting the economy. Are

worried the authorities? What effect is it likely to have if it

continues? They keep saying they want to enforce Chinese banking

controls, which are quite strict, but they're so many ways to get

money out, so many methods, the people who helped smuggle money out

are one step ahead. It is a real problem. An extraordinary picture of

a man taping hundreds of dollars to his legs in an airport. I spoke to a

money mule who said he travelled several times across the border

every day carrying a small bag of money. It is always transferred into

US dollars before they carry it because they are lighter than the

Chinese currency. He carries that several times a day. This is a very

difficult thing for the authorities to clamp down on.

Elsewhere, the impact of the Panama Papers revelations has

been felt strongly in Iceland, where the Prime Minister

Our correspondent Paul Adams sent us this update on the situation.

So this is the parliament building here in Reykjavik.

This square in front of Parliament has for the past

two nights been the scene of major protests,

almost unprecedented in Iceland's recent history.

And, as we saw yesterday, they forced the

This has been one of the distinctive features of these protests, the

bananas hanging from the trees and sometimes wielded by the

demonstrators and even thrown at Parliament along with pots of

People feel this is not just a story about their

former Prime Minister and his financial dealings, dealings that

they knew little about in the past, but that this is symptomatic of a

demonstrators and even thrown at Parliament along with pots of

That, in some ways, Iceland has become a banana

republic, a place where the political and business elites

conduct their activities behind and out of the

public eye, in secret and

not necessarily in the interest of the people themselves.

And so that is why we are probably going to see

more protests here by people who say they want to see a complete

resignation of the Government, a new political system, and even some

argue a new constitution to increase transparency and reduce the scope

for what they see as a level of public corruption.

We have so many political problems, I think it is

too much for such a small nation to have such big

I think it's really amazing how much a

little country can do so much kind of damage to its own country and

just be pretty much a laugh around the universe.

The ruling coalition believes that it can carry

But a new poll out today suggests that 70% of

Icelanders want to see more resignations.

Indeed, a lot of people wanting entirely new

When we spoke to one member of the coalition last night,

he admitted that early elections are a real possibility.

The fallout continues for the European football

Police in Switzerland have raided its headquarters

after it became embroiled in the financial scandal.

Authorities were searching for a contract signed by former Uefa

official Gianni Infantino, who is now President of Fifa.

The leaked document allegedly shows that rights to televise

the Champions League were sold to businessmen accused of bribery.

Gianni Infantino and Uefa deny any wrongdoing.

The frontrunner for the Republican US presidential nomination,

Donald Trump, has suffered a heavy defeat in the latest

He was beaten into second place by the Texan senator Ted Cruz,

who called his victory a "decisive turning point".

In the Democratic race, Bernie Sanders scored a strong

Our North America Editor, Jon Sopel, explains.

Last night was a turning point in the race...

Good morning, Milwaukee, after a dramatic night

Donald Trump beaten, and conservative talk radio hosts like

The thing about Donald Trump, not only does he act

like a 12-year-old bully in the playground,

he is a remarkably thin-skinned individual who runs away

This visit to a diner yesterday morning was

the last that they've seen of Donald Trump in Wisconsin.

He held no party, no news conference, nothing last night.

A man who has been ever present on TV screens went to ground.

His campaign issued a terse statement saying Ted Cruz is worse

But try telling that to the victor, the Conservative evangelical

He is massively preferred to Mr Trump and they are

Last night a win for him, a win for them.

It is a call from the hard-working men and women of Wisconsin

This is a significant victory for Ted Cruz because it means

there are now no certainties in the Republican race.

Yes, Donald Trump is way out in front, but having spent nine

months to find political gravity, tonight he has come back

to earth with a bump, to the delight of the people in this

room and a good many in the Republican establishment.

Because what they're eyeing now is something called a brokered

The candidate chosen by arm-twisting and backroom deals.

The Republican grandees' last chance to stop Trump.

This summer's convention takes place in the hall where the first

Republican debate took place last August, but Donald Trump isn't

It could be a bloody battle for the nomination, for the soul

Jon Sopel, BBC News, Milwaukee, Wisconsin.

The EU has been outlining proposals to reform its asylum system

At the moment people must claim asylum in the first

member nation they enter, but this has put a huge burden

The European Commissioner, Frans Timmermans, said EU countries

should consider either adding an emergency measure when nations

could no longer cope, or scrapping the present system altogether.

The WhatsApp phone messaging service says it has started encrypting

That means nobody except the sender and receiver can read them,

More than 1 billion people around the world use

WhatsApp to send text, picture and video messages.

You can also use it to make phone calls.

WhatsApp says this announcement is about privacy and freedom

of speech, and will protect its customers' messages.

We've been speaking to Jurgen Geuter, a journalist and computer

scientist, about the benefits of and problems with encryption.

We use encryption when we do online banking and we don't want anybody

else to see what the amount of money we have is in our bank accounts

or be able to even send money to someone else

Also, of course, there is the benefit in being able

to encrypt your data, so your passwords are not sent

in the clear and people can't take over your social media accounts.

As well as not being able to listen to what ever it is that

If you want to talk online with a lawyer or with a doctor,

you don't want anyone else to be able to listen in on that exchange

That is obviously useful if not important to have that

kind of infrastructure there for everyone to use.

It creates problems when it is seen as an absolute because we have

in our Western democracies, we have the rule of law,

we have freedoms, freedom of speech, your flat or apartment is secure

from anyone else looking into it, but we also know that these

freedoms sometimes need to be restricted in order

Matt Burgess is a writer at the technology magazine Wired.

He can tell us how widespread encrypted messaging apps are.

There's the end-to-end encrypted messaging platform Telegram.

That is completely free, it has 100 million users,

This move from WhatsApp actually makes it the biggest encrypted

We could see other companies follow suit, so Facebook owns WhatsApp,

so Facebook could move down this line.

iMessage on Apple is already end-to-end encrypted,

so there are other companies that do this and other protocols that do.

But it's going to be something that increases.

It will provide a challenge for authorities who want to seek

information and actually access information that is on these phones

that actually is encrypted, but that's where the balance has

These companies have to work with authorities on certain

cases and they also have to protect their users

Now a look at some of the day's other news.

Former Bosnian Serb leader Radovan Karadzic has appeared

in court for the first time since he was sentenced

to 40 years for genocide and crimes against humanity.

He described his conviction as "monstrous" and insisted

he was innocent, urging the judge at The Hague to release him

Prosecutors at the Yugoslavia crimes tribunal in The Hague say

they will appeal the acquittal of Serb ultra-nationalist

Vojislav Seselj, who was found not guilty last week of war crimes

and crimes against humanity during the Balkan wars in the 1990s.

His Radical Serb Party is expected to return to parliament

The jury at the Hillsborough inquests into the deaths of 96

Liverpool fans has been sent out to consider its verdicts,

The coroner has asked the jury to consider 14 key questions,

including whether or not the match police commander was responsible

for the unlawful killing of the fans by gross negligence.

The Italian fashion house Gucci has been banned from using an advert

in the UK which features an "unhealthily thin" model.

Here's the image - take a look and see what you think.

Gucci has defended it, saying the model is toned and slim.

We were trying to show you the image in question from the advert. You may

catch a glimpse in the monitor behind B, but it does show a very

thin model. Israel is the first question to ban size zero models.

Dr Yofi Tirosh from the University of Tel Aviv

Israel was the first country to take this measure. What led to that move?

There were a few cases of anorexic models being hospitalised, being at

real risk to their life and health, and they later converted, a fashion

agent decided to take things into his hands and he lobbied for this

law, which goes to show you that people can make a real difference

single-handedly. What the law says is two simple things. One, if you

want to shoot models, you have to provide the publisher of the adverts

or commercials with a note from the doctor that says the BMI of the

model is not too low. So the responsibility is on the advertising

agency in the newspaper or television channel cannot put an

advert that shows waiflike models. The other thing that it does is

that, if you use photo shop in adverts to make your models zero,

you have to put a banner, just like we would have on cigarettes, that

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

general reaction and what impact has it had on the images people are

seeing? Was there a positive response? As you would expect, some

of the responses were positive and some were negative, especially from

models themselves, that said this was an infringement on their right

to free occupation and their income would be damaged etc. But, after the

first wave, it became part of the reality and nobody is really

opposing it these days. Although, I have to say, in my eyes, the

importance of this law is pretty much in the discussion that it

raised. There are no cases. Nobody goes to court at this law. It is

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

the fact that it exists and that, through it, we are talking about

body image issues. This is what I see as the importance of this law.

We will have to leave it there. Fascinating. Thank you for joining

us. We appreciate your time. The World Health Organisation has

warned the world is facing The disease now affects

almost one in 11 adults. The surge is mainly down to type two

diabetes, the four most closely linked to lifestyle and diet. The

WHO said that was to blame for 1.2 million deaths in 2012.

The conviction of a woman in Northern Ireland two days ago

for taking pills to bring about an abortion has reopened

The law on the termination of pregnancy is much more

strict in Northern Ireland than the rest of the UK.

We hear from another woman in Northern Ireland who decided

to end her pregnancy in the same way.

Here's our Ireland Correspondent Chris Page.

There is no issue in Northern Ireland more complex

This woman has spoken to the BBC about her experience.

She took pills illegally to bring about a miscarriage.

We've agreed to her request for anonymity.

I'm afraid for this young mother who has been taken

This what is like what was going on in the 1880s.

The woman who was prosecuted about about 11 months pregnant.

She took drugs that she bought online.

The court heard she could not raise enough money to go to England

The judge gave her a suspended sentence.

I would be concerned that the judge undermined

This antiabortion campaigner thinks the punishment

She is opposed to any moves to loosen

I think it is important that Northern Ireland continues to be

There are many women's lives destroyed in the United Kingdom,

And the denial of the human rights of 200,000 babies

There have been some cases here at the High Court in Belfast

examining how the legislation should be interpreted and whether the law

But in Northern Ireland, abortion remains basically illegal,

The Stormont Justice Minister has tried to legalise terminations

in cases where the foetus has a fatal abnormality.

But other politicians wouldn't agree.

He thinks there could be a change after the elections to the Northern

The reality is we cannot continue to assume that people catching

planes to England will solve the problems of Northern Ireland.

Limited changes have been talked about, but none of main political

parties here are in favour of bringing the law into line with

Events like the recent prosecution generate strong feelings on both

London's Savile Row is known worldwide for its famous suits

Today history was made when for the first time

in over 200 years a shop was opened by a female master tailor.

For 170 years, it's meant quality, tradition

I'm the first female master craftsmen to have a business

on Savile Row, and the first woman to have their own name

above the door, so yes, I think that's quite something.

Kathryn Sargent learned her skills on Savile Row.

Born in Leeds, the day she first visited London's home of tailoring,

All the tailors look like clubs, almost.

They have beautiful uniforms and garments in the windows,

so I was determined and I thought this is where I would like to work.

Introducing the best dressed street in the world.

Savile Row was founded here by the first and most famous

So now Henry Poole has a new female neighbour.

And chief cutter Philip Parker remembers her well.

She was the one female among a number of young men...

I did try, but, you know, that's the way it goes.

And while Kathryn Sargent is the first on the Row,

What used to be a men-only world is changing fast.

Next the weather - but for now from me and the rest