this is business briefing. i'm sally bundock. the facebook fallout — the social media giant face a grilling by the us federal trade commission over the leak of data on millions of users. taxing the tech titans — how the european commission plans to make companies like google, amazon and facebook pay their fair share. and on the markets the jitters have eased for now with all eyes onjerome powell, the new chairman of the us central bank, as he concludes his first rate setting meeting. as we've been hearing, us regulators are set to grill facebook about it how keeps the data on its users secure. it follows claims that data on more than 50 million users was used

by the political consultancy firm. now to getting the tech firms pay more tax. brussels plans to tax companies digital revenue based on where users are located rather than where the hq where users are located rather than where the h0 is. the french government collect over 33% in corporate taxes. this compares to a tax rate seen in ireland ofjust 12.5% so you can see the differences between some countries in europe. under the plans, there will be a blanket of 3% tax on sales collected in the country where those sales ta ke in the country where those sales take place. it could include product such as streaming and advertising services although the details are

fairly unclear. good morning. it does sound a fairly simple, the idea but i am assuming it is not simple at all in practice? it is simple in theory but digital revenue— what does it mean? what is a digital company? isn't one that uses technology or 555 of the value. company? isn't one that uses technology or $55 of the valuem is all about definition and of course these companies very fast lea k course these companies very fast leak in what they do. and was on is about buying stuff. —— and is on amazon. at the moment we are looking

ata amazon. at the moment we are looking at a blueprint. there was a question as to how much this will finally be implemented. it is an issue everybody has been looking at as business practices have changed. but will it be overtaken by further changing the tax laws. will it be up to clever accou nta nts who changing the tax laws. will it be up to clever accountants who pay the absolute minimum anyway. whatever happens it has to be if. —— effective. everyone has to be co mforta ble effective. everyone has to be comfortable the rules of fair, clear and coherent. until we see those rules were just and coherent. until we see those rules werejust do and coherent. until we see those rules were just do not know what will happen. in terms of what is happening today, the european commission is rubberstamping the proposal but then each state has to approve it. before it comes into

being. looking at it from the point of view of what we know now, do you think it will improve the situation, will this scenario we see at the moment, a race to the bottom in terms of corporation tax, will that change? i think it will mean the overall tax system will have to change as well. you cannotjust put one person, whatever it is in the world, and try to sell to the rest of the world and think i am going to pay tax only in that country. of the world and think i am going to pay tax only in that countrylj of the world and think i am going to pay tax only in that country. i will hold due to that. perhaps we will get you back. so early and soap coherent. it has been quite a week for facebook. as we've been hearing, us regulators are set to grill facebook about it how keeps the data on its users secure. it follows claims that data on more than 50 million users was used by the political consultancy firm.

the federal trade commission wants to know how cambridge analytica, which suspended its chief executive on tuesday, obtained the information. our north america technology reporter dave lee has been following the story, outside facebook hq. what is the latest? the latest is that facebook is in crisis pr mode. they had a meeting on tuesday morning to address the issue with employees but that meeting was not attended by mark zuckerberg nor his deputy sheryl sandberg. both key figures are yet to say a word about this crisis and we are entering into day six on wednesday and because of that there is increased pressure both within facebook, wondering

where mark zuckerberg is and also investors are also getting extremely annoyed, wondering when they will hear from the chief executive. several investigations on several fronts and people asking how this data got to be used in this way. can we assess how damaging all this it is in the long—term? we assess how damaging all this it is in the long-term? it could be extremely damaging. the guest to the very heart of the business model, keeping and analysing data in this way is under threat and it will make it much, much harderfor them to do business. what that is doing as a knock—on effect is having an effect on silicon valley because many users as have a similar business model, using personal data to target advertising, which is what i am seeing, the beginning of the end

where the allergy companies essentially police themselves because they have grown so quickly and instead new regulations are on their way. thank you very much indeed. china's tencent, the owner of the popular we—chat messaging app, is now about $72 billion more valuable than facebook as the us social networking giant deals with a string of controversies. let's go to our asia business hub where mariko oi is following the story. tencent is about to release it annex and, the many it is seen as the darling of china? indeed but if you remember it was only last november when tencent, nine as china's

facebook surpassed facebook and in the beginning of march they were neck to neck, but, as you have been reporting, shares in facebook have well and sharply over the last two days, wiping out some $50 billion in market and as a result tencent is now worth a lot more than facebook. acra free will be reporting its results later tonight and we are acting some very strong figures. —— tencent. i shot that is going to have a positive impact potentially seeing a wider gap between the two. german prosecutors have raided the headquarters of bmw as part of an investigation into the suspected use of emissions cheating software. prosecutors said about 100 police and law enforcement officials searched the luxury carmaker‘s munich headquarters and a site in austria. the us federal reserve

ends it two—day meeting about interest rates today. investors are focused on how many rate increases it may roll out in 2018. the central bank is expected to produce the first of three or four rate rises today as the economy strengthens and inflation rises. toyota has suspended us tests of driverless cars on public roads following a fatal accident in arizona involving one of uber technologies' self—driving vehicles. toyota said it was concerned about the "emotional effect" the incident might have on its test drivers. a quick look at financial markets.

you can see hong kong is up strongly. markets recovering from the losses we have seen but facebook shares still being hit hard. we had the opec led alliance of major oil producers accelerating the timeline for curbing a worldwide supply glut of oil so the price of oil headed up on the back of that news. we will see you in a moment. we will review some of the newspaper stories in a

moment. a group of mps is warning of government against complacency when it comes to security co—operation with the eu after brexit. the all—party home affairs committee says the transition period which has recently been agreed may need to be extended if public safety is not to be compromised. they say it's down to the complexity of issues such as data sharing, the european arrest warrant and europol membership. our home editor, mark easton reports. membership of the eu mean to the uk enjoys access to valuable police data bases, the european arrest warrant and the services of europol. the government says it is optimistic about guest seated just as good deal for when we leave but after taking evidence from people from the national crime agency and other organisations relying on eu security corporation, an all—party committee of mps says it does not share that optimism. we are worried that security treaty will not be signed

and implemented in time for when the transition period ends and that could leave us with proper exhibition arrangement when people flee from crimes but also without access to criminal data that police need. access to systems and the resources of europol depend on different things. being outside the europeanjurisdiction is different things. being outside the european jurisdiction is a different things. being outside the europeanjurisdiction is a red line but the mps say europe should not be too rigid. the complex, technical and legal issues mean both sides seem and legal issues mean both sides seem to be ready to extend the two—year transition before brexit comes in accusing the government of complacency of the committee wants the uk could be sleepwalking into a security crisis. you with the briefing. the

headlines: politicians in the united states and europe are summoning executives from facebook to answer questions about whether personal data was misused to manipulate recent elections. the fbi has confirmed a series of 0msk sent to addresses in the city of austin are linked. two people have been killed in the campaign. now it is time look at the stories that are making the headlines in media across the world. we begin with the i newspaper and the story that facebook founder, mark zuckerberg, is requested to testify before a parliamentary committee over cambridge analytica failure. he is asked to provide evidence on how the social network's partners gather and hold user data. the arab news is covering a saudi diplomatic visit to the us.

the report suggests us—saudi ties have improved markedly since donald trump's election. we lost the graphics. hopefully we can bring them back to you. the times looks at how, according to scientists, plastic in the ocean is projected to treble by 2025, threatening marine life and possibly human health as well. the daily mirrorfront page has a story on how the channel islands is set to pass laws to allow assisted dying. people from the uk mainland could travel to the isles to receive help to commit suicide. and the huffington post has been covering the case of six—year—old, alfie dingley, who suffers with a rare form of epilepsy. he and his mother presented

a petition to the uk government calling for him to be granted a special licence to use medical cannabis, which is illegal in the uk. the latest on this story is that alfie's parents are saying that they've now been granted permission to treat him with medicinal cannabis oil. so, let's begin. with me isjustin urquhart stewart, director of seven investment management. are you a facebook user?|j are you a facebook user? i am on it,