tv Business - News Deutsche Welle December 20, 2017 12:15pm-12:31pm CET
the winner will be taking a massive step towards the trophy. you're watching d.w. new still the cops are the wheels coming off for over the right hill and company is dealt a big blow europe's top court says it is a taxi service not just an ad a look at the fallout. that story and all the business headlines with monika coming up in one minute. when i'm travelling to be comfortable. but i also want to stay up to
date on the latest news events. and d.-w. makes that part of traveling easy because it's available and thousands of hotels resorts and cruise ships worldwide. or have you found a domain sign on the subject that shows d.w. in your room you can remember a prize or two d.w. dot com travel quiz. is not to take the company to taxi service the top court has given a binding ruling on how the right hailing app should be regulated we go to brussels for the latest. polls are coming up the u.s. senate has approved them. sweeping overhaul of the u.s.
tax system and more than three decades we get some analysis from london. ont a bumper crop off scallops for this holiday season in europe we tell you why. a very warm welcome to t.w. business. is no different than a taxi company that's what the court of justice ruled today in a major setback to the popular ride sharing app will be argued it was simply an app that connected people wanting a ride with those trying to make some money the decision means it will face more regulations and fees and that its app may be unavailable in some european countries fishel had already said that a ruling against them wouldn't affect their presence in most areas of the block. all rights and to hear a little bit more about this we cross over now to max or from our correspondent in brussels first of all i mean what exactly triggered that verdict how did it come
about. a cap company from barcelona went to court not just any court the highest court in the european union basically having the same complaint that many taxi companies all over the european union have voiced in the last years saying that it was a transportation company it was direct competition but had an advantage because it was not regulated as a taxi company but rather like a digital service and you know if you're a transportation company if you have a taxi company in many countries in the european union you're heavily regulated meaning you need licenses your drivers need hours of training all those things you didn't want to do in some countries they have to do it now but in spain it was still at large because uber argued we are not a taxi company we're just putting people in relation so that they get driven to places where they want to go we are a digital service so what's this mean is this the end of that now what's it mean for its business operations in europe. well the end of it would probably be
a little exaggerated here but it will probably have consequences in spain at least because what the european court of justice has said now is that countries can regulate as a transportation company as we understand the ruling they don't have to do it so if some country chooses for example to regulate we were in a different set of rules or established new laws saying we like we were the way it is they are free to do so but it they want to regulate them as taxi companies then they're allowed to do this in many countries have chosen to do so for example germany for example france also here in belgium we have but those drivers also need licenses they also in the training so this will drive up the cost of labor that this will obliterate their unique advantage that they have in the past and this will benefit the taxi companies but it will not be the end of it because as we were already has stated that is true there are already being regulated as
a taxi company as a transportation company in many countries in the european union now i mean does this this is the only impact or does it perhaps set a president for other so-called take companies you know i thought about that question and really it's hard to think of another company that operates in a field that is so heavily regulated as the transportation company we just mentioned well the things you need to license is the training and all that of course there are a lot of digital companies new digital companies that prob provide services to people even sometimes foraging in areas where you have traditional companies for example in the delivering industry but they're not as heavily regulated so this could be a rather unique case. in brussels thank you so much for this. and with this we move to the u.s. because the u.s. senate has passed republican one and a half trillion dollar tax overhaul along party lines moving the bill closer to
president obama trump's desk and marking his first major legislative victory the house of representatives must first take another vote on the measure after procedural violations maad the first that vote saw the measure passed comfortably trump wants to sign the bill into law before christmas critics say the package is a deficit bloating giveaway to the super rich but republicans argue the tax cuts for corporations small businesses and individuals will bolster economic growth and of course as we're waiting for the u.s. house to revote on that tax reform bill a look now at the impact it could have on foreign companies because the reform is of course in theory a domestic issue but the u.s. is the world's biggest economy and such a substantial change to its tax policies will certainly impact the global markets coupled with the looming changes to america's new trade policies the tax scheme contains big risks for foreign companies trade between the e.u.
and the us is booming but will it continue to do so much of donald trump's trade plans remain unclear for example early versions of the republican tax bill included a twenty percent excise tax on companies purchases from foreign subsidiaries that was aimed at discouraging american firms from producing abroad but it would also have hurt to german car makers with plants in the u.s. that important components from gemini. now there's another threat of higher duty as on imports that frightens us because they're unpredictable and don't comply with world trade organization roles so nobody knows what effect they'll have. there are now concerns trumps reform could trigger a global race to lower corporate taxes the e.u. average is around twenty two percent slightly higher than in the us after this legislation takes effect in many countries rates are much higher including germany
where it's around thirty percent that could lead to german investment being diverted to the u.s. market is one thing trump is certainly successful at is stimulating the american economy and if he pushes through massive tax cuts in the u.s. that will lead to german companies investing their story in america. as a result their profits and jobs could shift to the u.s. as well america first trumps favorite slogan is getting a boost from the tax reform package. for more on the u.s. tax reform i'm joined by michael hewson chief market analyst at c.m.c. markets in london good to have you with us first of all what's this tax reform really mean figure of. yeah i think that's really the big question is certainly something that the european commission is a little bit concerned about and you talked about your piece that jobs could
actually leave europe and go to the u.s. but i wouldn't be overly concerned about that at this point simply because the u.s. is already at full employment and has already has a significant number of vacancies for highly skilled jobs as it is i think the big concern here is that we could see a significant amount of dollar repatriation as a result of the big tech companies who currently hold a sizeable amount of u.s. dollars off shore and that could see a significant outflow from say for example us back out of europe back into the u.s. athletes got two hundred fifty billion dollars mark so scott hundred thirty billion dollars according to s.c.c. follies and google's got sixty billion so i think there is a concern there but i think for the moment it is a little bit overstated ok well i mean donald trump is a even talking of four trillion dollars that will return from overseas when it actually be that much and will it be enough to pay for all the other tax breaks
that he plans to give. i think as with donald trump you have to look a little bit behind the rhetoric of four trillion dollars is not it's an insignificant amount of money let's look at look at it in the round of these tax cuts account for around about one and a half trillion dollars over the next ten years well that's a little bit of a rounding error the u.s. deficit or the u.s. deficit is around about twenty trillion dollars as it is at the moment or debt to g.d.p. so i think you know the truth is probably somewhere in between and ultimately the u.s. is only bringing this to corporation tax rate down from thirty nine percent to twenty one percent and it will pay said their journeys tax rate is around thirty france's thirty for all and twelve so i don't think it's going to cause that amount of significant disruption in the longer term are and just briefly if you would i mean this tax reform seems to be over do you does it tackle the right problems.
well i think that's the big thing that's the big unknown it depends on which side of the political divide you're on if you are republican using you say that it does because it gives a tax break to middle income families if you're a democrat you say that it doesn't because it goes to all the big corporations i think at the moment the proof of the putting will be in the eighty's at the moment mark is surprising in a significant boost to the u.s. economy convinced in two thousand and eight saying that will be borne out and we could see a little bit of a slowdown in some of the gains that we've seen in the stock market i was a place of a lot that we've seen over the course of the last twelve months right michael hewson their chief market analyst at c.m.c. markets in london thank you so much for this. year of shellfishing industry has produced a bumper crop of scallops this year fueled by the right weather conditions over summer and growing demand at restaurants scallops particularly fast this week especially in france where everybody stocks up for the holidays. when brittany's
fishing boats return to port with their catch a lot of them a carrying scallops on board the exquisite muscle delicacy is in season between october and april but it's especially popular just ahead of christmas. would rather buy fresh scallops starting from october it's very much in demand it's a christmas meal in high demand in the month of december. but the popular scallops don't come cheap a forty gram scallop costs around two euros a lucrative commodity this season delicatessens have been offering a bumper harvest one research institute says the industry is in for a record year by next april brittany's fishing fleet expects to land four times its normal scallop catch. and that wraps up the business.
we've just heard from. a global playing company aims to consolidate. siemens ones to shed personal thousand of them and gurlitz a life. the company plans to close its turbine factory in the east german city. that even though the plants order books are full of engineers you say they're dumb founded. made in germany in sixty minutes on t.w. . where i come from we have to fight for a free press i was born and raised in a military. dictatorship with just one t.v. shadow and a few newspapers with official information as a journalist i have work all of the strengths of many can trust and they have