this is business live from bbc news with david eades and jamie robertson. tech giant apple has a pile of cash worth tens of billions of dollars injersey where it pays no tax. live from london, that's our top story. on day two of the paradise papers, fresh revelations from millions of leaked documents shines the spotlight on the offshore tax business. also in the programme... us president donald trump is in south korea with the north's nuclear ambitions and trade high on his agenda. let high on his agenda. us have a look at the markets well. let us have a look at the markets as well. the european perspective here, again everything heading up, as we have seen right across the globe.

record highs from asia right through to the states. we will keep across that for you. and we'll be getting the inside track on second—hand motors. the market is booming, but with tougher emissions rules coming in, we ask an expert if buying a used car makes any sense. today we want to know, is it worth buying a second car —— second—hand car when emissions rules are getting tougher? let us know. just use the hashtag #bbcbizlive. hello and welcome to business live. there are new revelations from millions of leaked documents known as the paradise papers. the technology giant, apple, has been managing most of its untaxed cash reserves offshore, on the channel island ofjersey. it moved the money tojersey after a tax loophole in ireland was closed. although the company has done nothing illegal, its tax arrangements have been criticised by eu and us officials. our business editor,

simonjack, reports. a rapturous reception for the latest iphone, the most popular and profitable consumer product of all time, generating hundreds of billions in profit for apple since it was introduced ten years ago. what these papers show is just how determined apple has been to keep the tax bill as low as profitable and how keen some governments, lawyers and advisers have been to help them do it. for many years, apple sent profits made outside of the americas to ireland where an elaborate corporate structure meant it paid nearly no tax on the billions it was making. taxes that would have been due to the us where politicians started applying pressure to a defiant apple ceo. we pay all the taxes we owe, every

single dollar. we not only comply with the laws, we comply with the spirit of the laws. we don't depend on tax gimmicks. no more fiendishly complex tax arrangements, right? wrong. documents obtained from the law firm appleby based in bermuda showed that when ireland shut the scheme down, the company went shopping for a new way to keep the tax bills low. a questionnaire was sent to the offices of appleby in seven tax havens, all british, including questions that may the intention clear. can you confirm an irish company can conduct management activities without being subject to taxation in yourjurisdiction? after this offshore beauty parade, apple plumped for jersey this offshore beauty parade, apple plumped forjersey and company accou nts plumped forjersey and company accounts published since its show there has been no discernible increase in the rate of tax paid worldwide. apple has done nothing

illegal, but hundreds of billions of dollars remain entangled in a web of low tax jurisdictions seemingly beyond the reach of any government. the tax equivalent of outer space. as the documents show, it is a system that has continually eluded international attempts to reform it. the boss of the international organisation trying to fix this problem admits it is a work in progress. changing the rules that make it legal that today many of these companies actually pay very little or no tax at all, this is what it is about, this is what is happening and this is what we are working on. apple pays a lot of tax, more than any other company in the world, but not as much as many think it should. it is not alone. other multinationals use similar structures and us companies alone are estimated to have over $2 trillion stashed offshore. the paradise paper showed the lengths to which they and their advisers are prepared to go to keep tax bills

low. andrew walker, our economics correspondent. how much money are we talking about? the paradise papers, the panama papers, as opposed to that, what order of magnitude are we talking about? the question of corporate tax, that is what the apple aspect is about, the organisation for economic co—operation and development, its head was in the package of simon'sjust development, its head was in the package of simon's just then, they have published estimates, they reckon that the shopping around for tax jurisdictions reckon that the shopping around for taxjurisdictions and reckon that the shopping around for tax jurisdictions and using reckon that the shopping around for taxjurisdictions and using clever means to avoid corporate taxes, they say it accounts for something between 4—10% of corporate tax revenue. paid around the world? putting a figure on that, the oecd puts a range of between 100 and $2110 billion a year. it is very substantial money. it is an issue

for any government that wants to tax businesses, but the oecd makes the point it is particularly troublesome for developing countries because they are more dependent on corporate taxes, rather harder for them to raise things like income tax. what do we do? none of it is illegal, as far as we know. what is wrong? what can you do? you cannot tell a country, you have to run your taxes this way. exactly. there is work going on in the oecd, bringing together many governments around the world, looking at things like transparency, exchange of information between jurisdictions so that they know what their people are getting up to overseas. also, there is an initiative designed to deal with some of the loopholes. things like mismatches in the way tax arrangements are devised between different countries so things can

fall through the cracks. issues of tra nsfer fall through the cracks. issues of transfer pricing when different bits ofa transfer pricing when different bits of a multinational corporation shift income around within it and they charge different subsidiaries for particular services and the prices can be set in a way that is artificial with the intention of avoiding tax. those are the issues. the ultimate objective the oecd is looking for is to try to get to a system whereby profits are taxed where the economic activity really ta kes where the economic activity really takes place, where the profit is earned. it is challenging. interesting definition, we could talk about it for hours, but we don't have ours. thank you. more in—depth comment and analysis on that story. you know where to go. just head to bbc.com/news. we will keep the developments coming in as well. let's take a look at some of the other stories making the news... the japanese car giant toyota has reported a 13% rise in net

profit for the first half of the year. the car maker made more than $9 billion in the last six months. toyota says the results were helped by cost—cutting efforts and a weaker yen. there are reports that walt disney is looking to buy the majority of fox. cnbc and the ft say the deal would involve the group's movie studio — 20th century fox — along with other global assets, including national geographic. fox has been struggling with falling customer numbers as subscribers switch away from traditional cable networks. indonesia says it will summon executives from messaging services and search engines, including google, to demand they remove what it says is obscene content. meanwhile, indonesia has dropped a threat to block whatsapp after gif— animating images were taken off the service in the country. us president donald trump has landed in south korea, with the north's nuclear ambitions high on his agenda. trade will also be a key focus foertrump, who wants to renegotiate the us—south korea free trade agreement.

mark lowen is in seoul. nuclear or trade, which is topping the agenda, getting most attention? trade is getting some attention and there have been thai raids by president trump against the free trade deal, corus. he has called it a horrible deal. it seems the two leaders, president trump and moon jae—in, trying to get on the same page to work out a renegotiation that would work for both countries. president trump has talked about how it has created a trade deficit for the korea in terms of cars and other imports. —— south korea. the number one issue is north korea and donald trump has been speaking, he has talked about how kim jong—un is that

a dictator threatening millions of lives and we cannot allow north korea to threaten everything we have built. he has given a very clear message to china and russia in particular who he has said must cease all trade entirely with north korea, including the oil and coal they import from the north. donald trump says that kind of trade with the hermit state is unacceptable because it provides financial means for north korea to continue to develop its weapons programme. thank you very much. another look at the markets here. you will see an awful lot of green from everywhere pretty much. australia up 1%. a record high in the ten years, 1.39%. the dow behind me, up again. records, across—the—board, everyone behind me, up again. records, across—the—boa rd, everyone is behind me, up again. records, across—the—board, everyone is up. even the ftse is up, evenjust a

teeny bit. and samira husain has the details about what's ahead on wall street today. on tuesday, a hotel chain will be reporting earnings. the company's profits will benefit from its acquisition of another hotel group and robust demand in business travel. investors will be looking for the compa ny‘s outlook travel. investors will be looking for the company's outlook for the rest of the year. also reporting, luxury handbag maker tapestry, formerly known as coach. the name change will not helps sales growth. it pulled back infantry from department stores that sold bags at heavy discounts. analysts have said the market for handbags is getting better in north america so that may help. finally, consumer credit numbers will be released by the federal reserve and it is expected to show outstanding credit for us consumers is up to $18.5 billion. compared to 13.06 billion from the

previous month. joining us isjeremy stretch from cibc world markets. all of the markets, gangbusters at the moment, why? global synchronised recovery. growth is moving higher and pretty much in all continents and pretty much in all continents and regions. we are continuing to see interest rates relatively low despite the hike we saw in the uk last week and hikes in the us and the upcoming hike in the us before the upcoming hike in the us before the end of the year probably. the economic environment remains relatively benign, notwithstanding the political risks, and investors are looking for opportunities to invest cash. interesting point, the political landscape is unstable. a right mess, many would say. this is almost bucking the direction of politics. that is true. in a sense, looking at the fact president trump

is in south korea, it was only two, three months ago, we were seeing increased degrees of tensions, creating some market instability, but markets are looking through the short—term political risks and looking at the broader macroeconomic trends providing opportunities for investors but investors have to be nimble. you have to accept there will be volatility over periods and that suggests the upward trend will not last indefinitely. what is the wea k not last indefinitely. what is the weak spot? put aside the political one, as faras weak spot? put aside the political one, as far as political problems are concerned, it could be anyone of those things, are any economic witnesses murray weaknesses? fundamental soundness of the company? —— economic weaknesses? slowing in consumer spending is something we have to be mindful of. the uptake we are seeing in the oil price raises the spectre, low—level,

but the spectre of inflationary pressure. what will happen in times of —— in terms of average earnings? unemployment has fallen to a remarkably low levels but no impetus on average earnings. if earnings go up on average earnings. if earnings go up because of labour shortages, that may have an impact in terms of what central banks will do. markets assume they will be relatively modest in terms of interest rate tightening cycles over the next year. if average earnings go up in conjunction with support from the oil price, that might be the ca ta lyst oil price, that might be the catalyst from an economic standpoint to create instability and suggest the uptrend has at the very least a pauseif the uptrend has at the very least a pause if not a modest correction. stay there, we will be back with you to look at the newspapers in a moment. still to come... planning on buying a new car? the second—hand market is growing fast, but will tougher pollution rules put the brakes on growth?

you're with business live from bbc news. now, the lead up to christmas usually has most of us stocking up on presents. but new data from barclaycard shows that consumer spending fell by 2.4% last month. one in three said the last week's interest rate rise would change their spending habits. fran boait is the executive director from positive moneyjoins us now from our newsroom. what's the reason why spending is falling? can we pin it down to anything? hi. so consumer spending is still growing, but the growth is falling and we can see that that is happening because of forming factors, families and people are feeling the squeeze from inflation. that's hitting 3% in the uk. also,

obviously, there has been the interest rate rise and people were anticipating that. ongoing uncertainty on the uk economy with brexit and finally the wages falling. in the uk we have seen wages falling for the longest time since the 1800s and wages stagnating for even longer. so... sorry, that's a bleak picture. but that interest rate rise nonetheless, we heard mark carney saying very, very gradually there will be any further increases. do you think that most consumers have yet in a way to take that into account? they are still fearful something else is going to happen tomorrow, next week, the week after next? absolutely. there is a bleak outlook and if we look at the consumer spending figures there has been a higher growth in spending on the essentials so fuel, food, etcetera and a kind of reigning in on the non essentials and obviously thatis on the non essentials and obviously that is happening from these various

factors, but families are having to borrow to make ends meet with wages falling and the other concerning thing is if you look at our economy, we really grow on consumer spending. mark carney said we have only seen growth since brexit due to consumer spending. with all these different factors and people having to reduce their borrowing, they can see that there is a bleak outlook then, you know, we have to be kind of concerned about what our strategy is for the uk economy with people having to reign in their spending. thank you very much indeed for that. you can get a lot more on the top story on bbc news which is about the paradise papers. you can get more on our website of the there is a full—up date on the latest breaking stories on the business live website. you're watching business live. let's have a recap on the markets.

the european markets are opening. all up. we the european markets are opening. allup. we are the european markets are opening. all up. we are seeing this everywhere. it is notjust europe. slower in europe than in some other parts of the world. but the ftse up 1.7, that's a teeny weany bit. the dax up and the cac, but the other markets we have seen across asia and the us, record highs. and the oil price as well. that's 64. yes. 64. you were paying attention there. price as well. that's 64. yes. 64. you were paying attention therelj was. now let's get the inside track on the second hand car market. how do you track down, and safely buy that dream motor? the global used car market is projected to reach 128 million units by 2021. so, there is much to choose from. frontier car group started business last year and now runs marketplaces for used cars in emerging markets and while based in germany it operates in countries like nigeria, pakistan, turkey, chile and others. sujay tyle, it is your business.

interesting move on to the emerging markets. what is it first of all about them that made you think, there is a gap here? i mean emerging markets have the highest used car, the highest growth rates of the entire world. you have this middle—class that can afford more and more vehicles. you see new car oems coming into the market. what's an eem? an original manufacturer, toyota, ford, if you can bring in trust. you can build a big business. one thingi trust. you can build a big business. one thing i want to make clear, unlike most of the people we have in

this slot, this isn't a tech company. this is a bricks and mortar company? we have built an auction platform for you if you want to sell your car platform for you if you want to sell yourcar in platform for you if you want to sell your car in lagos nigeria, we can give you money in 45 minutes. you say if i want to sell my car in lagos? so you're organising a localised car auction in these different countries, but surely the car auctions exist already, don't they? they do not. they do not. you have a small presence of really large us or uk vises that are manufacturer rental car fleets, but for the averagejoe living in nigeria or mexico city you have zero options to sell your car. how do you persuade people to move to you from let's say honestjohn or whoever they know, they come to trust and here is a new bunch saying and they don't know you, they don't know you

locally, saying we're going to do it ina locally, saying we're going to do it in a better way for you? that's why we have spent so much on building a brand there. there is, the honest joe, there is no honestjoe in these markets, they have classifieds or non trustworthy dealers, we are creating a transparent, trustworthy process. that's a big statement to say there is no honestjoes. people are trying to run their own businesses. you are saying we can do it bigger and better and what offer more services to people trying to buy or sell? you think about dealers. in the uk or the us floor plan finances is a $13 billion market in the us and in nigeria, for example, dealers are scrappy and entrepreneurial and sleazy because sometimes they don't have the accesses to financing opportunities. if you build a market place they can we can bring financial inclusion and then you bring trust to the market and make the dealers trustworthy. you call some of them sleazy. that

could be an under statement because we are talking about organised crime. you are treading in fairly dangerous water, aren't you? well, the first check we do on any single vehicle is a stolen vehicle, we check every level of fraud. do they have the databases in nigh gatheria? they do. it takes a lot of time to plug into them. we get, we are getting obsessed over here about issues about diesel though and the difficulty of shifting diesel cars. iam presuming difficulty of shifting diesel cars. i am presuming in difficulty of shifting diesel cars. iam presuming in most difficulty of shifting diesel cars. i am presuming in most emerging markets, that's not an equation for you at all, is it? sometimes, it is not. only in tier one cities. i think it is an indirect benefit for us. tier three, thinking about nigeria, typically consumers don't have access to vehicles because they are expensive. now, because of regulation a lot of vehicles are going to the tier two and tier three

cities. thank you very much. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. the business live page is where you can stay ahead of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors right around the world. and we want to hear from you, too. get involved on the bbc business live web page, bbc.com/business. on twitter, @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. let's see what the other business stories are. what the media around the world has been taking an interest in. jeremy stretch joins us again. this is from the guardian, trump

advises the trade deal will mean scrapping eu rules. it means the uk has to decide whether it is going to do business with the eu or us? that's stark. if you read through the article, there is talk about an example of chancellor rindnated chicken. it's the old favourite! it is something people can visualise and find revolting or at least intin nation is. if you the uk is going to have a trade deal with the us at some stage in the future the us will be dictating the terms and standards and that may well complicate the situation with the eu. that's the word, "dictate." it seems to be that will better ross is saying, "you will take our chancellor rindnated chicken." when you are negotiating and the us want to negotiate by

lateral deals and when you are negotiating on a by lateral basis then there is an ability, potentially, to dictate more to the other side of the other party and that's what the us are trying to do here at least layout in that per ram ter. if the uk has a transitional deal with the eu post 2019, that's going to complicated by this particular process. we have to make it clear, this is chancellor rindnated chicken, and not coronation chicken. i would sooner have coronation chicken. we will talk about coronation chicken at some other point. the wheels are coming off. laughter thanks a lot for watching business live. there will be more business news throughout the day on the business live web page. good morning. yesterday it was all

about the frost and fog, but this morning, much milder out there with more cloud and outbreaks of rain. this is the recent rainfall radar picture. you can see the heavy rain spreading through west wales and south—west england, in through scotla nd south—west england, in through scotland as well and during this morning that rain is going to continue to move its way further east ward. now there will be sunshine coming through in northern and western areas as the rain clears through, but on that band of rain, intense downpours for a short per of time and gusty winds. by 3pm, that rain would have cleared from devon and cornwall. there will be one or two showers, but sunshine, feeling colder as the afternoon goes on. colder conditions moving in towards wales too, but here, there will be sunshine, again the odd shower. actually for northern ireland, you have started off the morning on a dry note and with sunshine, a pleasa nt dry note and with sunshine, a pleasant afternoon to come here and mostly fine and dry for scotland as well with a few showers which could turn heavy, perhaps thundery in the

far west, temperatures dropping by a few degrees. we have got the rain across north—eastern parts of england, down through the midlands. by england, down through the midlands. by this stage, just patchy rain spreading in towards norfoming and suffolk. dry towards the south east. the rain stretching its way down towards the isle of wight. the rain will continue to spread east ward through the rest of the afternoon and into the evening. further west, we've got clearer skies with the odd shower or two. we will keep the clearer skies, we have got a ridge of high pressure which is starting to build in, but in the east, that weather front, that area to build in, but in the east, that weatherfront, that area of to build in, but in the east, that weather front, that area of rain decaying, but we will keep lots of cloud and temperatures eight to six celsius. further west, with the clear skies it will turn chilly and in fact, on wednesday morning, there could be a frost to start off. so you might have to give yourself a few extra minutes on wednesday morning. we keep the ridge of high pressure in between two weather fronts on wednesday. one in the far east and another one coming into the far north and the west. so that will

bring more cloud towards northern ireland and scotland on wednesday. some outbreaks of rain moving in here as well. staying cloudy towards east anglia and the south east, but in between, we have got a sunshine sandwich. for thursday, a cloudier sort of day. largely dry. a bit of patchy rain moving south and east ward, but we return to the milder conditions on thursday. temperatures back up to 11 to 14 celsius. more details on the website: that's it from me. bye—bye. hello, it's tuesday, it's 9am, i'm victoria derbyshire. welcome to the programme. this morning... the controversial policy of stop and search — is it an important measure in tackling knife crime or does it just lead to alienation of the black community? your behaviour, how you work on your bike, stay still. i am allowed to

film. i was given an apology for what happened and i was invited to go out on patrol with their offices to see how they use stop and search powers. ourfull report in 15 minutes and really keen to hear your experiences too. what effect did it have on you?