tv BBC Business Live BBC News July 17, 2019 8:30am-9:01am BST
this is business live from bbc news with sally bundock and ben thompson. france renews calls for the biggest economies to work together on taxing the tech giants. live from london, that's our top story on wednesday, 17thjuly. as g7 finance ministers meet near paris, can france find support for a new tax which has already caused the us to threaten tariffs in response? also in the programme... can they get it flying again? jet airways creditors look
for a route to get the indian airline back in the sky, despite more than a billion dollars of debt. financial markets, the only way is down in europe following a torrid session in asia with more tough talk coming from the us in the direction of china about trade. also coming up later... taking a punt on gambling — we'll speak to the boss of one of the industry's biggest specialist websites and find out how he deals with the pressures of a heavily scrutinised activity. today we want to know... it is world emoji day! apple has released 20 new ones. are you a fan of smileys and do you use them at work? are they a useful communication tool or do they cause misunderstanding? let us know — just use the hashtag #bbcbizlive.
a very warm welcome. do get in touch. ben regularly sends me a heart or a confused face. the french finance minister is urging a group of the world's biggest economies to work together on taxing the tech giants. bruno le maire is hosting g7 finance mininster near paris amid a growing row that has already caused the united states to threaten tariffs against france. last week, president macron‘s government became the first in the world to pass a tax on their revenues. the biggest, such as google, amazon, facebook and apple, will have to pay 3% on some of their sales in france, if they have global sales of over $840 million. across the channel, the uk also says it's planning to press ahead with a 2% tax on sales from april, but both countries have said they'll ditch their tax if an international agreement can be reached. let us have a look at the difference
between corporation tax rates across the g7. they vary widely which is why it is hard to get agreement. the aim ofan why it is hard to get agreement. the aim of an agreement would be to get more tax out of the companies who root their profits through low tax country so they pay less tax than they otherwise would. some of the fiercest opposition is coming from the us where trade representative robert lighthizer said he was concerned the french measure unfairly targets american companies and opened an investigation that could lead to retaliatory tariffs. suzanne rab is with me now. she's a professor and a barrister at serle court chambers. nice to see you. touching on some of the issues, this has been going on for a long time, trying to come up with some sort of agreement. why is it taking so long? it is an area where traditionally individual countries have wanted a lot of autonomy in terms of how they set tax rates, it may be important to
attract businesses to their jurisdiction, and it has led to some countries have been quite low rates of tax by international standards. when you have a digital business thatis when you have a digital business that is operating cross—border, that disrupts the traditional ideas we have about where we tax companies, headquarters, where do they generate sales, whereas value being added in the supply chain? notoriously difficult to get consensus internationally. countries are using that to attract companies and therefore to give themselves a competitive advantage in attracting business to set up what they are. therefore, what hope is that there will be ideal? if you level the playing field, harmonised tax across all countries, no advantage to being in one place versus another? there isa in one place versus another? there is a fundamental principle at stake which is fair tax competition. yes, you are absolutely right. a starting point is that companies should be
able to decide where to place their operations and look to those different opportunities. but at the same time, there is a question of fair tax competition between countries. to expect some agreement would be agreed in the confines of the upcoming meeting, probably optimistic to think we will decide everything. the point at principle needs to be decided and then looking at methodologies and of course underlying rates. with all of the challenges are laid out, you are right, looks pretty optimistic that a deal will be done. but also, it sta rts a deal will be done. but also, it starts going into other territories, not least state aid. essentially, what you are kind of suggesting is by giving a low tax jurisdiction, it is akin to state aid, letting someone operate more is akin to state aid, letting someone operate more cheaply than they would elsewhere. state aid is a
particularly eu concept where the european commission can investigate measures which are selective, they favour particular companies or industries, and where they give an advantage that would not be available in the normal course, and the european commission has investigated and found various tax incentives and measures to be unlawful. investigations involving... that is a way that he was a whole has tried to tackle the measure, but it is by no means the only measure. attempts to agree the right levels of tax and approaches have so far filtered —— attempts to agree eu—wide levels of tax and approaches. fascinating, appreciate your insight. thank you.
let's take a look at some of the other stories making the news. will british firms be able to get the staff they need after brexit? the government is proposing to limit visas to workers earning over £30,000, but business groups say that should be lowered to £20,000. they say that such a move would help to avoid skills shortages. the coalition also warned that more than 60% of all uk jobs were currently beneath the £30,000 cut—off. renault has formed a joint venture with china'sjiangling motors to build electic cars for the chinese market. it's one of the fastest growing in the world with more than i million vehicle sold last year. renault will take a 50% stake in the venture, and says is an important part of its plans for expansion in china. us politcians have described facebook‘s plan to launch a cryptocurrency as delusional. they also questioned if the company could be trusted with people's financial data. the senate banking committee was grilling the man in charge of the project about how it will work. david marcus said libra wouldn't be
lauched until regulators were happy. he's due to answer more questions from another committee today. christine lagarde has announced she will be stepping down as managing director of the international monetary fund. it comes after she was nominated to be the next leader of the european central bank. she'll leave her role at the imf in september. g7 finance ministers are likely to discuss her replacement at their meeting today. we are talking jet airways again today. jet airways was once india's biggest private airline, but its planes haven't taken off since april because of huge debts that have crippled the company. the company's creditors have been meeting to try and find a way to get it flying again. zoe thomas joins us now from mumbai. an interesting one, we covered the colla pse an interesting one, we covered the collapse at the time, all the meetings that went on to try to save it. what hope is there these meetings can get the planes flying
ain? meetings can get the planes flying again? we know they are in a hurry to get the process moving, a committee of creditors that met for the first time yesterday. they had to come up with two things, deciding how muchjet to come up with two things, deciding how much jet airways owes to come up with two things, deciding how muchjet airways owes everybody and if they accept bids to buy the company, what the office can like. we are expecting the criteria for office to come in later this week and they want bids to come in as early as saturday. they are trying to get the process going —— criteria for office. there are reports they have asked for the creditors committee to come up with a solution in 180 days, about half the time india's bankruptcy process usually ta kes. india's bankruptcy process usually takes. a lot of pressure to get it right. jet airways, it is over $1 billion, just in debt, not considering all the money it owes to employees and back salaries, it will be really complicated to figure it
out —— jet airways owes over $1 billion. asia today, no dramatic declines, but the mood was pretty pessimistic in asia, partly because trump is talking tough again about paris, saying he could impose additional tariffs on chinese imports if he wants —— about tariffs. it is currently described asa tariffs. it is currently described as a truce. investors on edge in asia today. europe right now, similar picture today in europe as well, not dramatic falls, but not in the right direction. 0ne well, not dramatic falls, but not in the right direction. one of the big losers, a mining company, cut production outlet today, similar needs yesterday from rio tinto. burberry up 2%, still riding high off the back of its latest earnings news out this time yesterday. and michelle fleury has the details of what's ahead
on wall street today. bank of america is the latest of the big us banks to report second—quarter earnings. investors will be paying close attention to its plan to continue growing revenue in a lower interest—rate environment. meanwhile, netflix, producing more of its own content, is likely to post subscriber numbers in line with estimates in the second quarter, but with shows like the office and friends being removed from the video streaming service, wall street is keen to hear how netflix is reducing its reliance on licensed content. ibm is also due to report its results. and a man who lost his family in the boeing 737 ethiopian airlines crash is to testify before congress. joining us is james bevan, chief investment officer at ccla investment management. nice to see. let us talk things markets. looking at what the pound is doing yesterday, really tough day, making everyone's summer's
holidays going abroad more expensive. yes, two challenges, one people are concerned about, the outlook of the pound and a risk of a new deal brexit, as confidence ebbs and flows, the pound is buffeted in the foreign exchange markets. what is going on with the dollar? another interesting issue. mr powell was speaking in paris yesterday, subtle shift in tone. last thursday, 25 basis points at least, weakening the dollar... yesterday, the tone was slightly different, now an element of doubt about whether he really wa nts to of doubt about whether he really wants to ease. quite interesting because, jerome powell speaking in paris, a lot of attention on christine lagarde and the possibility of her becoming the ecb chief and people talking about to what extent central bankers can change the current economic environment we are in in terms of the tools they have available. very
interesting. for a long while, they relied on very low interest rates, quantitative easing, bankers thought they could sort out the world's problems. there is a big debate going on as to whether central bankers should end up funding fiscal policy by providing money so that governments can spend money to get economies moving. it will be a really interesting. you know how much i love watching central bankers! your little central bank of session. james did not know about that, he looks shocked. get a job as a central banker, you are in. what can i say? central bank corner. did you get a central bank emoji? we need one. especially if christine lagarde gets in. we need to move on, we will gets in. we need to move on, we will get told off. later in the show... taking a punt on gambling —
we'll speak to the boss of one of the industry's biggest specialist websites. you're with business live from bbc news. talktalk, something we are good at, we do it for a living. talktalk has issued an update on its first quarter trading, saying it "is in line with our plan". revenue is up 1.3% to £387 million and cost savings are on track. the telecommunications group are still trying to shake off a reputation for poor customer service and lax cybersecurity. matthew howett is principal analyst at assembly research, and joins us now.
in line with our plan, what does it mean? a to loss the year before last, reduced it to 5 million in the last, reduced it to 5 million in the last year, and these results show they are continuing with the transformation of the business. they have been ripping out costs, they have been ripping out costs, they have moved headquarters out of london, and all of it is feeding through into the results we have seen through into the results we have seen today. promisingly, one of the things we noticed as they are adding more broadband customers, that thing they get measured on most, and, crucially, the majority are taking out fibre broadband which is the most expensive, so they are doing well in terms of revenue from the new customers. what does it tell us about the consolidation of the sector? trying to offer everything to all people, tv, mobile, landline, coming together. but we simply do not want to pay for it in many cases. you have companies like bt and sky competing, bundle offers, throwing the things into one package. there is an interesting
role for companies like vodafone and talktalk, to offer stand—alone value items, whether it is broadband, tv. talktalk carving itself a niche in terms of being able to do that and i think they will return to that challenging mentality they have a lwa ys challenging mentality they have always been known for. interesting. matthew, thank you, good to see. the details talktalk. hotel chocolat, trading update, revenues up by 14%. the ceo was on this programme not so long ago and i remember it well because he did not bring in a single piece of chocolate. it was like a big pr fail. we cannot be bribed. absolutely not, but i am a chocoholic. they are out with results, doing very well.
you're watching business live. our top story: france renews calls for the biggest economies to work together on taxing the tech giants. it's at the top of the agenda as g7 finance ministers meet near paris. full coverage of all the headlines from that meeting. a quick look at what the markets are doing... europe is open, we heard earlierfrom james, explaining concerns around the world, not least the trade disputes but the pound also under pressure, we have discussed that too, the fear of a no—deal brexit at the end of october really weighing on sterling. comparison websites have become an established part of the landscape for anything from gas prices to insurance premiums. many would argue they are useful. but what about a comparison site for online gambling? millions of people around the world gamble safely and responsibly. but there's a growing awareness that for others,
it can lead to real problems. our next guest runs gambling.com — which offers news, reviews and comparisons of gambling websites. it doesn't offer gambling services itself but provides a guide for those who are looking to wager online. i would have assumed you would be a gambling website, but you are not, you refer people and give reviews and suggestions. if you are going to gamble online, chances are you might wa nt to gamble online, chances are you might want to do homework before you pick which website you go to, especially if you are spending a fair amount of money, so a if you are spending a fair amount of money, so a website like ours gives you the information you need to make an informed consumer choice. someone with great? service, great games, treat you fairly. why did you start this company? something you came up with in your bedroom in the us when you were a student? when we started
out, we were based... i went to university in america, i grew up in the us, with my co—founder, we wa nted the us, with my co—founder, we wanted to do something interesting and the online gambling industry was and the online gambling industry was an exciting space that seemed like it would grow but at the time there was no regulated online gambling in the us, the industry basically did not really exist. if we wanted to do something, in the space, we had to leave. we ended up building a business in europe, europe is essentially the home of regulated online gambling in the uk is the world's largest market by some margin. a great adventure. we are excited about the us market which is now opening up for the first time since 2006, so for us, a fun next chapter and a bit of a homecoming. for everyone, not for everyone, is itfun? for everyone, not for everyone, is it fun? let us talk about the
concerns. you touched on regulation and the government, uk government, and the government, uk government, and parts of the world where high—street camping and physical gambling is increasingly regulated —— high—street gambling. do you think there is enough regulation to protect vulnerable people on websites? super important topics, great question. 0nline gambling is in many respects easier to track problem gambling. you have a user registration account, you have to do full k yc, and in all cases, you know more about the? than you would if someone was walking in off the street. you cannot tell their age, they could easily lie online about they could easily lie online about the rage. the regulations this morning. the gambling operators to seriously drill entered the kyc documents. know your customer information supplied to them —— they
could easily lie online about their age. we know how seriously they take those procedures. it is taken ultra seriously. people supplying fake information to gamble underage, i do not think that is a huge issue. what the industry is trying to do and be proactive about is identify problem gamblers before they have gambling related harm. there has been information in terms of artificial intelligence to try to identify people early. fundamentally, not in the interests of the gambling companies to clamp down on the sort of stuff. brilliant example in the uk last week, £20 free credit, but you had to wager £1100. so many exa m ples you had to wager £1100. so many examples where it looks great, gets people in, but the reality is, they have to spend a lot of money. at his
where comparison sites come in. if you want... money are interested in bonus offers and they want to get a fair bonus. getting all of the terms and conditions listed about the bonus, if it is an implausibly difficult bonus to achieve, they should know. we can help on that. i think over the last couple of years, a growing consensus not enough has probably been done in terms... from the online gambling industry itself in terms of establishing sensible guidelines for the amount of advertising and at least here in the uk market, there has been an overwhelming amount of tv advertising for online gambling there is a conscious plan for the biggest players in the space to limit that. we have run out of time. i have so many more questions, charles. thank you for coming in.
chief executive of gambling.com. in a moment, we will talk you through the stories out there, including elon musk and brain ways. and emojis. here is how to stay in touch —— brainwaves. we wa nt we want to hear from you. get involved on the website. 0n we want to hear from you. get involved on the website. on twitter and you can find us on facebook. business live, on tv and online, what you need to know, when you need to know at. james is back. world emoji day, give us your take, are you a user of emojis? they are fabulously useful, when we write
messages, letters, e—mails in the uk, we assume people will understand what we are saying and british humour is often ironic. we are very misunderstood. very easily misunderstood. very easily misunderstood. the emoji cuts straight through, you get a smile, you know they are happy. what is your most used emoji? straight smile. straight line? i mean a normal smile. the old smiley face that began the entire craze is still for me the winner because it conveys so for me the winner because it conveys so simply that you are happy. for me the winner because it conveys so simply that you are happym for me the winner because it conveys so simply that you are happy. it is understood in every language in the world. iam understood in every language in the world. i am looking at my most used. i have crying laughing face. mine is the thumbs up. let us have a look at what you have been saying. hello, he watches us in india, scripts found
in ancient civilisations were pictorial writings from rocks and caves. vince has got into the emoji. the device of —— the demise of our language makes me sick, you will never catch me using emojis. another says, i think they are great for children, anyone that wants to try and express themselves his struggles with language may be. new york times, elon musk taking baby steps to wiring brains to the internet. explain this. elon musk is a pioneer of all things new in the field of technology and he is identifying it should be perfectly possible, as has already been demonstrated, you could have a small touch on your head that allows signals to be downloaded into your brain, allows your brain to communicate with other parts of the body. fabulously useful for disabled people, people who have to deal with
prosthetic limbs. elon musk is saying we might be able to download languages. fascinating! the mind boggles. bye—bye. the weather turns more unsettled from today onwards. quite a bit of rain in the forecast, welcome rain for sun rain in the forecast, welcome rain forsun in the rain in the forecast, welcome rain for sun in the south—east. it will move on from the west today but further east still sunny spells. this mass of cloud here, that is the rain bearing weather system moving in you can see the weather fronts bringing the rain mainly across parts of northern ireland and it will continue to move east. eventually reaching wales and may be the south—west. ciao is ahead of that. sunny spells continuing in the far south—east of england —— showers ahead of that. further north and
west, temperatures 23, 2a, in england and wales, but fresher for scotla nd england and wales, but fresher for scotland and northern ireland with increasing wind. tonight, the area of rain will continue to spread east, breaking up as it does, nothing more than a few showers towards eastern areas by thursday morning. heaviershowers towards eastern areas by thursday morning. heavier showers moving into western scotland and northern ireland. temperatures overnight, 12-16. ireland. temperatures overnight, 12—16. thursday, starting off quite cloudy, still showers breaking out in eastern areas, that were mostly clear. sunshine developing foremost parts. heavy showers for northern ireland. they could be thundery at times on thursday. largely dry for much of england and wales. temperatures down a little bit, 21-24. temperatures down a little bit, 21—24. friday, low—pressure still to the north—west. the next weather system pushing in from the south—west and increasing wind across many areas on friday. starting off fairly dry and pride,
cloud quickly increasing, rain spreading and turning quite heavy in south wales —— dry and bright. welcome rain and southern parts on friday. further north and east, showers around, temperatures about 19-21. showers around, temperatures about 19—21. friday evening and night, the rain will continue to spread north and east, quite heavy at times into the early part of saturday morning. eventually when clearing on saturday and there will be brighter skies developing with a few showers which could turn thundery in northern parts, sunday looking drier and brighter, sunny spells and temperatures into the low 20s. bye— bye.
you're watching bbc news at 9, with me annita mcveigh. the headlines: the us house of representatives votes to condemn president trump's attacks against a group of non—white democratic congresswomen as racist. it's not the first time i've heard "go back to your own country", but it is the first time i have heard it coming from the white house. the husband of nazanin zaghari—ratcliffe, the british—iranian woman who was jailed in iran in 2016, says she has been transferred to a psychiatric ward. mps say the uk could cut 700,000 cars worth of carbon emissions, simply by adding more ethanol to petrol. an inquiry into domestic abuse in the english countryside reveals victims suffer for longer, are less likely to report abuse and struggle to get support.