tv World Business Report BBC News August 25, 2017 5:30am-5:46am BST
this is bbc world news, the headlines. thailand's supreme court has postponed its verdict in the trial of former prime minister yingluck shinawatra after she failed to appear in court. thejudges in bangkok issued a warrant for her arrest, saying they did not believe her claim that she is ill. america's gulf coast is preparing for the onslaught of hurricane harvey. small convoys of d riverless small convoys of driverless lorries will be tried out on major british roads next year. it's part of a government plan to cut emissions and reduce congestion. motoring organisations have raised concerns over safety. a woman in massachusetts has won the biggest single—ticket prize in us lottery history. the cheque is for more than $750 million. she says she's already handed in her notice at work. now it's time for world business report. tycoon on trial.
after six months in court, a verdict is due on bribery and corruption charges against samsung boss jay y lee. the billionaire denies all wrongdoing. plus, the flying kangaroo bounces back! near record profits for qantas this year despite cut—throat competition. the boss says it shows his turnaround plan is working. welcome to world business report. i'm ben bland. also coming up, a boost for the economy — or a final injustice? we round up our series on the business of death, with the fierce debate over inheritance tax. we start in the south korean capital seoul, where we are expecting a verdict in the corruption trial of jay y lee.
he's the head of the $300 billion samsung business empire, and grandson of the founder. he is accused of bribery, embezzlement and perjury, and could face up to 12 years injail. he pleads not guilty and denies all wrongdoing. the trial has been going on for six months, so what's it all about? it started with this. $36 million donated by samsung to organisations linked to former president park geun—hye. she was removed from office and is also facing corruption charges. back in 2015 the samsung conglomerate was undergoing restructuring, with a controversial merger of two of its businesses. prosecutors say the aim was to boost mr lee's personal power over the company, which he's been running since his father became ill in 2014. the deal needed shareholder backing from the national pension fund, which is run by the south korean government. prosecutors argued the donations were bribes to win that vital support.
the affair has once again raised concerns about south korea's business culture, and the huge family—owned conglomerates known as "chaebols." they've long been seen as too cosily linked to government, and not sufficiently transparent in their dealings. they are also very powerful. to give you an idea, sales by samsung companies account for around a fifth of south korea's entire economy. our business reporter yogita limaye is outside the courthouse in seoul. tell us a bit more about the details of what he is accused of, and what he said in his defence. well, that is the courthouse behind me, where we expect jay y lee to arrive shortly. he will be brought from a
detention centre. in about one hour, the hearing will begin. we do expect a sentence today. there are multiple charges against him but the main one is bribery. prosecutors say he made donations to organisations run by former president's park in hay‘s close friend, and in exchange for that, he got support for the controversial merger you are talking about, which would pave the way for him to eventually become boss of the samsung group. his father had been running the samsung group until 2014 when he suffered a heart attack. so jay y lee has in de facto boss of this company in that time. so, i suppose the other thing is, this trial raises the wider questions about these chaebols and the way that south korea does is this? that is right. samsung is hugely important to south korea. 0utside, it is mostly known for samsung's electronics, smartphones and appliances. but it is also involved
in construction, shipbuilding, even a samsung amusement park. it accou nts a samsung amusement park. it accounts for about one of the economy. it is dominated, the economy, by these large family run conglomerates. in the past there have in many accusations against the bosses of these groups, but even when they are convicted they are given a pardon by the government, because there has been fear that there could be an economic impact. however, now there is a new government in power. resident moon jae—in has said he will take on the conglomerates. —— president. the government has said that it is hoping fro strong verdict today, and they are hoping that will send a strong message to large conglomerates, to clean up the way that they do business. australian airline qantas has posted its second best annual profit ever, despite fierce competition from its rivals. boss alanjoyce is calling it a vindication of his three—year turnaround plan, which has involved major cost cutting. sharanjit leyl is in singapore. so, i suppose they and their
shareholders are delighted? they are absolutely delighted. 0bviously, shareholders are delighted? they are absolutely delighted. obviously, as you just said, those profits skyrocketed to their second—highest level in the airline's 97 year history. it turns just over $1 billion in pre—tax profit for the year to the end ofjune. 0f billion in pre—tax profit for the year to the end ofjune. of course, we know that the airline's highest ever profit was delivered last year. this profit is down about 9% from that record. the strong result was really due to cost—cutting and its robust domestic is mrs, which have helped to offset global competition. —— domestic businesses. qantas also announced phones today to sell non—stop flights from sydney to london and new york are 2022. —— plans. those would be among the longest haul flights that exist, 20 hours or more. that plan would
depend on the airline securing planes from boeing and airbus that are capable of travelling that kind of distance. i certainly wouldn't wa nt of distance. i certainly wouldn't want to. next year they also confirmed they will fly directly from perth to london, which chief executive alan joyce says will be a huge leap forward. not surprisingly, qantas shares have been rising today. we are also rounding up our week—long series on the business of death, looking at the financial issues raised by aging populations around the world. benjamin franklin famously said nothing is certain "except death and taxes." in many countries inheritance tax or death taxes are an absolute certainty. but in others, like israel, australia and sweden, the tax has been abolished. is it good for the economy, a fair way of redistributing wealth — or a final injustice? we get the views of two uk tax experts.
i would say that yes, it is good for the economy. it puts money into the treasury, which obviously pays for various things, including various necessities. but inheritance tax also has an inbuilt protection for businesses. good points. i don't think eventually raises much money. that quarter to 0.5% of gdp, it is a few billion pounds. at the moment it isa few billion pounds. at the moment it is a chance tax. it is only those people who do not have the knowledge or the large enough state to pay for the accountants, lawyers and wealth manages to hide it for them. i don't think it works. if people see that 40% of what they leave is effectively going to be taken by the revenue, it does actually encourage them to go out, live their lives, enjoy themselves, go and spend, and clearly that is good for the economy. i think inheritance taxes are really marginal to business owners. inheritance tax does
actually remove potential investment capital from the economy. we are talking about relatively small businesses here. if you are going to receive a few hundred thousand pounds, that is something you could potentially invest in a business. so there is an art and this is it removes capital that could be invested. i don't think it takes away from businesses. i think there are opportunities there to put it into businesses. there is a big amount of cash and if somebody dies with the tickets are 40% inheritance tax. if they instead invest that money in their children's isner is, that cash is inverted into something that cash is inverted into something that isn't —— that is exempt. so the regime can actually encourage investment into businesses.” regime can actually encourage investment into businesses. i think inheritance tax should be abolished. i think for the amount of revenue at raises for the treasury, it frankly isn't worth it. i don't think it should be abolished. i think it makes its contribution to the treasury and it is an awful lot better than some of the alternatives, which is effectively paying more tax during your lifetime when you should be enjoying your money and what you have earned. well, i am sure inheritance tax will
continue to divide opinion. to other business news now, and music streaming service spotify has signed a new licensing deal with warner music group, paving the way for an expected flotation on the new york stock exchange. after deals with sony and universal, warner was the last of the three big record labels to agree to renewed terms to make its catalogue available to spotify‘s 140 million users. artists and labels have in the past complained about minuscule revenue from streaming sites when compared to downloads or physical sales. investors have been selling off shares of supermarkets in the us after amazon said it would complete its takeover of the whole foods chain on monday, and immediately embark on price cuts. amazon's news reignited fears for the future of the traditional supermarket industry. walmart, target and costco all saw their shares fall. office space company wework is to get a major investment worth $4.4 billion from japanese tech giant softbank. the new york start—up was founded in 2010, and helped pioneer the concept of shared office space. it operates in 50 cities across 16 countries around the world, and is planning major expansion into asia. speaking of asia, let's take a look
at how the asian markets are looking. asian stocks advanced on friday, once again shrugging off a sluggish day on wall street, and the dollar strengthened as attention shifted to the central bankers' symposium in jackson hole, wyoming, that began on thursday. that is the asian markets. we will checkin that is the asian markets. we will check in on the us markets later. don't go away. you are watching bbc world news. south wales police missed a number of opportunities to bring convicted paedophile ian watkins to justice sooner, an investigation by the independent police complaints commission has found. the investigation found that between 2008 and 2012 police did not adequately act on eight reports and three intelligence logs
about the activities of the then lead singer of the lostprophets. mark hutchings reports. the public face of ian watkins was that of a global star. privately, he was a child abuser whose behaviour, in the words of the judge who sentenced him, plumbed the depths of the property. his eventual arrest in 2012, initially for drug offences, came after years of missed opportunities. the police watchdog and the ip cc found disturbing failures in the way south wales police responded to two bots. the main complainant was his former partner. the ip cc says a lack of open—mindedness said she wasn't taken seriously. she was not a lone voice. a20 said the 2008 and june 20 12, six people raised concerns. —— between december 2008 and june twitty 12. in between december 2008 and june twitty12. in that time, watkins was
not arrested or required to respond to allegations. south wales police admit they failed to listen i investigate properly and say they are truly sorry. the disciplinary hearing has cleared a detective sergeant of grossness conduct. last week, the ipcc also accused the south yorkshire force of inaction in investigating watkins. he is now four years into a 29 yearjail sentence. today's report highlights major shortcomings that allowed him to lead a sickening double life for so long. coming up at six o'clock on breakfast, charlie stayt and naga munchetty will have all the day's news, business and sport. they'll also have more on the expected major travel disruption over the weekend. the bank holiday getaway coincides with engineering works on some of the country's busiest rail routes. services between london, the north—west and scotland will be cancelled. 0perators have warned passengers to expect delays. this is bbc news.
the latest headlines: thailand's supreme court has postponed its verdict in the trial of the former prime minister, yingluck shinawatra, after she failed to appear in court. thejudges in bangkok issued a warrant for her arrest, saying they didn't believe her claim to be ill. america's gulf coast is preparing for the onslaught of hurricane harvey. it's expected to hit the coast of louisiana and texas on friday with winds of up to 140km/h. small convoys of driverless lorries will be tried out on major british roads next year. it's part of a government plan to cut emissions and reduce congestion. motoring organisations have raised concerns over safety. a woman in massachusetts has won the biggest single—ticket prize in us lottery history. the cheque is for more than $750 million.
she says she's already handed in her notice at work. now it is time for our newspaper review. the ft takes a look at concerns from uk employers who have appealed for urgent clarity on the status of eu nationals post—brexit. many fear the uk could be heading for a skills shortage, as the number of eu citizens seeking work has dipped sharply. meanwhile, the guardian leads with uk prime minister theresa may who has come under fire for counting foreign students as part of the government's immigration target, when officialfigures revealed that fewer than 5,000 remain after their via expires.