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tv   World Business Report  BBC News  October 9, 2017 5:30am-5:46am BST

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this is bbc news, the headlines: there's continuing uncertainty about whether the leader of the catalonian region will declare independence from spain. on sunday, hundreds of thousands of people demonstrated in barcelona against separation from spain. one of the most powerful men in hollywood, the film producer harvey weinstein, has been sacked from the business he helped to set up following allegations of sexual harassment. he's been dismissed with immediate effect. the us vice president mike pence has been accused of staging a publicity stunt when he walked out of a national football league match after some players knelt during the national anthem. president trump congratulated mr pence. a rescue operation is under way near the bangladeshi coast where a boat carrying rohingya muslim refugees fleeing myanmar has capsized. at least 12 people are thought to be dead and many others are still missing. now it's time for world business report.
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on the move. businesses in catalonia relocate their legal headquarters for fear of isolation if the region declares independence from spain. and it was hailed as a system to simplify tax collection across india. 100 days on. we talk to businesses who are struggling to make the change. welcome to world business report. i'm sally bundock. over the weekend, more businesses in catalonia said they are taking steps to prepare in case the region does try to break away and declare independence from spain. the central government has passed a decree making it easierforfirms
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to move their legal headquarters away from catalonia, with companies no longer needing share holder approval. one of the country's biggest banks, sabadell, and one catalonia's largest savings banks, casha, have done just that, in an effort to make sure they continue to have access to eurozone funds in the event of a declaration of independence. and there are warnings there could be a dent on investor confidence. the ratings agency standard & poor‘s has put catalonia on watch, saying the tensions could result in it's debt rating being downgraded. we were hoping to go and get reaction but we will do that later
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on but we will move on. it's been 100 days since india rolled out one of its biggest economic reforms in history. the country overhauled its taxation system bringing in the goods and services tax or gst, a single, unified tax across india. but many small and medium sized businesses are finding it is not as simple as promised. yogita limaye reports. it's been a hard knock the many small companies. factories like this one have been grappling with the changes to india's tax system. here, they make shock absorbers, most of which are sold overseas. before the goods and services tax was rolled out, exporters were exempted from paying most taxes on raw materials. now they have to pay them and, although they can claim the money back, the government has been slow to process refunds and this means many small companies have been running out of cash. on the cash flow side, i would like to say that the refunds
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procedure needs to be tackled very immediately on priority refunds which have been blocked. the treasury needs to be immediately dispersed. the government is now taking note of the exporters problems and, on friday, they announced a few changes. translation: it's taking some time for tax refunds to be transferred digitally. so in the short—teerm we will issue bank cheques instead. and ensure these are given to companies by october 10th and 12th. companies with a turnover of less than $230,000 can file taxes every quarter rather than every month. this may come as a relief but cash flow is not the only problem. finding the correct tax rate to be charged for every item they buy and sell from a government list of hundreds of goods and services is proving to be a big challenge. one single tax and the free movement of goods on highways from one state to another across india — the gst was marketed as a silver bullet to make it easier to do business in this country but more than three months after it was
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rolled out, many small companies, traders and consultants are still struggling to understand how it works. even so, many business leaders believe that the new tax system will benefit india in the long run. with its latest announcement, the government has shown that it is listening to these small companies but implementation has often been a problem in india. ina in a country like india you can't have a single rate because you can't tax luxury items like food items. in a developed country perhaps you can have a single rate. they've already announced that as time goes by they will reduce the number of rates and overall it will do the economy a lot of good. with its latest announcement, the government has shown that it is listening to these small companies but implementation has often been a problem in india. the country has already seen a slowdown in growth and that can only change when production begins to pick up at factories
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like this one. yogita limaye, bbc news, mumbai. let's return to our top story: the fa ct let's return to our top story: the fact businesses are realigning themselves amidst the uncertainty with catalonia and spain —— let's return to the top story and the fact businesses are realigning themselves amidst the uncertainty with catalonia and spain. doctorjaume ventura from the centre for research in international economics in barcelona. no surprise businesses are looking at different plans given what has happened this week. good morning and thanks for having me here. up to this point the situation is one in which the businesses have not made any real move. they've made a lot of noise but no real moves. basically what a few banks and also a few corporate have done is to move their
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legal headquarters away from barcelona, or away from catalonia, into other parts of the state. why are they doing that? one possibility is that they feel more protected if their headquarters are elsewhere. that doesn't mean moving anyjobs, that doesn't mean moving any facility, that doesn't mean moving any operation. there is a sense that this looks a little bit like the case of taking advantage of perhaps some pressures. i case of taking advantage of perhaps some pressures. i would definitely say there are pressures from the spanish government to do so. what are you expecting to happen this week in terms of a declaration of independence. what do you think the outcome will be? the catalan government has promised if the referendum was going to be positive, if the referendum gave a clear majority to the option of independence, that it would declare
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independence. do you think they will, will they go ahead with that on tuesday? i think there's a... high probability of this happening. can you repeat that answer, do you think they will? yes, i think there's a high probability of this happening. it's not certain but i would anticipate that they will. and if they do, the response from the government in madrid, the stalemate will continue, won't it? well, the two governments are on a path that cannot be reconciled and we need international mediation. this week the european union failed to provide that mediation. there have been other entities, other political bodies that have offered mediation. so far the madrid government has refused all of them. the question is whether at some point they will accept that. i'm told we have to leave the conversation there but we
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appreciate you joining us this morning. we persevered with the technology and were able to talk to doctorjaume venturer. we'll be able to discuss this in more detail when we go to the news review. the pace of new business called in china. what is going on? -- called. china. what is going on? -- called. china counting on growth in services, particularly services in finance and technology to reduce its traditional reliance on heavy industry and investment but this latest survey shows it falling to 50.6 in september, notjust the lowest reading since december, 2015 but one of the weakest readings since the survey began in 2005. it stands in sharp contrast to an official survey that showed the services sector expanded at its fastest pace since 2014 in
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september, which of course is giving observers a very confused view on how a key part of the chinese economy's performing. the survey shows the services vector continues to see much less inflation than the manufacturing industry, which seems to underline the view that price pressures in china are concentrated in the raw materials industries —— sector. not yet quite filtering through to the consumer level. thank you very much, sharanjit, in singapore. looking at financial markets, still an unusual time looking at financial markets, still an unusualtime in looking at financial markets, still an unusual time in asia, golden week last week, so many rockets closed. that many markets. today we have hong kong open —— many markets. that is all from the. i will be back in a moment with the news review. —— that is all from me. see you then. the independent inquiry into child sexual abuse begins detailed
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hearings today to examine allegations of child sexual abuse in two rochdale children's homes. the cases date back to the early 1960s. the inquiry will investigate an alleged failure to prosecute the late liberal democrat mp cyril smith amid claims of a cover—up. the bbc‘s tom symonds has more. the child abuse enquiry‘s planning to go back nearly 60 years and delve into the dark past of two children's homes. this one, nole view, and cambridge house. the claims, that children were abused, that staff new, that no one was brought to justice and that the scandal was covered up. the larger—than—life liberal mp cyril smith, who died several years ago, was a governor of nole view. do you want a man to represent you or a party robot? the
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claim was he used his position to get a ccess claim was he used his position to get access to children. the first allegations against him date back to 1961. police investigated but in 1970 prosecutors said the evidence was stale and his accuser is not reliable. by the early 1990s, experts reported growing concerns children were being abused at the nole view home. little action was taken. last month finally rochdale council apologised for failing children. today the public enquiry will begin taking fresh evidence. the reason that this matters is we cannot have a situation in this country were powerful people are able to abuse children and get away with it because other powerful people are protecting them. that cannot be allowed to happen and that's why we have to investigate what happened with cyril smith and that's why we have to learn the lessons from it. the enquiry takes evidence like at court but can't prosecute. that its job evidence like at court but can't prosecute. that itsjob is evidence like at court but can't prosecute. that its job is to discover what happened and who covered it up and provide ways of
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preventing it happening again. tom symonds, bbc news. this is bbc news. the latest headlines: there's continuing uncertainty about whether the leader of the catalonian region will declare independence from spain. on sunday hundreds of thousands of people demonstrated in barcelona against separation from spain. one of the most powerful men in hollywood, the film producer harvey weinstein, has been sacked from the business he helped to set up following allegations of sexual harassment. he's been dismissed with immediate effect. the us vice president, mike pence, has been accused of staging a publicity stunt when he walked out of a national football league match after some players knelt during the national anthem. president trump congratulated mr pence. a rescue operation is under way near the bangladeshi coast, where a boat carrying rohingya muslim refugees
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fleeing myanmar has capsized. at least 12 people are thought to be dead and many others are still missing. now it is time for our news review. we begin with le figaro which reports on spanish anti—independence protesters who took to the streets in barcelona in their hundreds of thousands. the gulf news leads on us president donald trump who is weighing a new strategy to confront iran's nuclear ambitions while leaving the 2015 iran nuclear deal intact for now. the independent says popular skin care company dove has been forced to apologise after releasing a series of adverts that have been branded racist in a backlash on social media. the ft carries a warning from outgoing german finance chief
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wolfgang schauble who says spiralling levels of global debt and liquidity present a major risk to the world economy. and finally, the times is crowing about a new anti—litter plan which involves training birds to put their beaks to good use in this case collecting cigarette butts from city streets. with me isjonathan charles who's the managing director of communications, european bank for reconstruction and development. nice to see you. we have been talking about this for the last hour. catalonia.

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