it's because it's a political crisis it's a security crisis and it's an economic crisis so i think the main problem of the post twenty eleven transition was to put complete emphasis on the political process and not sufficient so law and strategy into the military dialogue all. and completely forget the economic dimension of the crisis. welcome to max kaiser financial survival guide. looking forward to your pension account. this is what happens to pensions in britain don't just. watch kaiser report.

this is going bust broadcasting around the world and covering the world of business and finance and the impact upon all of us i'm bart chilton washington thank you for being on board coming up today as you know it continues to be in a pretty precarious place related to brecht's that some are questioning if the u.k. its budget coffers are losing out on corporate corporate profits hill report which c.e.o. mark joins us for a closer look and we consider the dollars and cents and cents as the end of a sea of sports betting as formula one racing gets into the multibillion dollar industry plus we look at the black beauty come out of the at least and so i'm told that cold which is bent on a rapid rise recently we'll be joined by jim thompson of i.h.s. market and with hundreds of millions of people on the planet in need of clothes why on earth heaven's sake have some of the large. companies then burning them our

chief correspondent tells us about how some of these big brands may be doing an about face now let's get to the stories topping today's this is the financial headline. the chief executive of density bank denmark's largest has resigned over a two hundred billion dollar money laundering scandal that has implicated the retail bank branch and is still an area c.e.o. thomas borgen said it is best for all parties for him to go dusky released an audit report today which claims the bank did meet legal obligations in a stoniest financial supervision is already said they will review it the malfeasance is said to involve fifteen thousand customers and says they were unable to determine the total amount of money laundered through their bank danske the stock price fell seven percent on the news. and a second secondly on a global financial crime blotter is the usual suspect unfortunately k p m g the

firm one of the famed big four auditors has once again been cited for misconduct in auditing this time k p m g as an entity and the firm partner richard inten were held to account by the financial reporting council the regulator for the united kingdom and the republic of ireland for faulty reports it received from k.p.n. g.'s client b.n.y. mellon bank on a trillion dollar basket of assets f r c says no investor money was lost and was on able to convince k. p.m.g. to pay a settlement as we've discussed here in the program before k. p.m.g. has bad taste of scandals recently with the most recent case involving their work in south africa. and other u.k. regulator news regulators are making news with regard to pressuring bankers and insurers for written responses on planets to plans to manage a transition away from the london inner. bank offered rate that's liable for the

average rate that banks charge when lending to their peers and is used as a global interest rate benchmark upon which most global credit transactions rely earlier today officials from the u.k.'s prudential regulation of already the p.r. and financial conduct authority f.c.a. sent letters addressed to dear c.e.o. to insurance companies and banks the letter seeks us surance that management quote understands the risks associated with this transaction and are taking appropriate action now so that your firm can transition to alternative rates ahead of the end of twenty twenty one f. ca head andrew bailey said in july that executives should treat the end of why bore as quote something that will happen and they must be prepared for boom bust guest dr richard sandor previously joined us to discuss one of those alternatives amera bore here's what he had to say and it's all transparent it's regulated without

a partner who is cboe who runs the board options exchange of god the board options exchange we wanted to create a transparent regulated competitively determined benchmark that everybody would think was fair and represented the real cost of money. and as the united kingdom continues in a pretty precarious place related to bret's that with some like i.m.f. managing director christine lagarde warning of dire economic consequences for the u.k. if there is no bracks that deal some are now questioning if the u.k. is budget coffers should contain more corporate tax revenues from businesses doing business in the u.k. for more on this we're joined by our friend hill reporter it's the c.e.o. mark hellery thank you so much for being with us as usual so. this came to light recently been out there a couple of times but starbucks is in the news today because they paid only a nine point five percent. when the corporate rate in the u.k.

is nineteen percent or close to maybe it's nineteen point five but a lot more than they paid no nobody's saying that this was you know. anything a legal it was just merely borden's but this brings up a recurring issue particularly in light of what's happened in the us was trying to bring money back what's the latest well you're right but there's a great difference between if they janelle void and i think that avoidance is actually you look at the best in the brightest the best the brightest go into the tax firms in the global firms whereas you have bureaucrats writing the tax code and that's one of the starbucks spokespeople that she is quoted as saying you know we abide by the tax code i mean of course they're looking for loopholes and actually winning so does everybody i think though this issue has been around for a while and actually you ironically could look and you could say in two thousand and sixteen starbucks made one hundred eighty eight billion across europe a new the u.k. is one of their biggest markets and they only paid about four billion in taxes there so that some outlet less than four percent you can actually say they're

getting better if that makes sense i think you need to look at one issue that does work and that shaming you might remember in two thousand and ten vodafone was actually shamed into closing their offices on oxford street because they had protesters outside when the u.k. government actually let them off through lots of issues around it but about six billion and a tax write off so i think shaming works. mentioned that i hadn't recalled that now when we look at other places around the world whether. your. particularly. countries in europe of france belgium with much higher corporate tax rates and yet and even you know surprising to me mexico has a very. close australia yeah so the u.k. is actually fairly competitive with it all the nations are actually very competitive fourth in the world and one thousand percent tax rate and actually it's really improved. in terms of recovery since the fiscal crisis because it was at one

point more like sort of twenty eight percent it's going down as projected there's a plan for it to be seventeen percent and twenty twenty and that would of course make it very competitive the u.k. very competitive globally so like we do in the us it wasn't just reducing the brackets it was then getting rid of the loopholes get rid of rid of the avoidance you noted is that the key for the u.k. here too if it's going to be nineteen or if it's going to be seventeen or whatever it is to not allow whatever schemes naughty but whatever sort of mechanism avoidance mechanism get rid of those so that they can continue to have money into the treasury yes because most important thing is these loopholes are legal like we said again it's you know it's tax day it's tax avoidance not of asian i'm if you look across europe and that's you see what the e.u.'s doing and the moderate best the commissioner for competitive across europe and she has even said they're just

trying to hold accountable obviously these u.s. global funds so i think what the issue is is the british government wants to remain competitive as a better tax rate than the e.u. because the british government of course wants investment in the u.k. and wants global headquarters in the u.k. that's why it's projected to go from one thousand percent down to seventeen percent and when we look at sort of what the u.k. has been taking in over the years. has been previously they moving in the lower direction as well because we want to be competitive because once you have taken as one thing but boy if they don't have a deal that is well another one no deal is better than a bad deal you know their relatives remember that one it's all in the fine print i guess right yeah. thank you bill you're welcome oh absolutely. formula one racing has just finished a humongous deal involving sponsorship of betting gambling companies liberty media

has signed an agreement with internet interregional sports group based in london for worldwide rights to gambling sponsorship of formula one the news comes only months after the u.s. supreme court allowed sports betting and as many are now questioning if the influence of gambling in sports is getting too large here to help us consider the subject in business impact is victor matheson professor of economics and accounting at the college of the holy cross if victor welcome back thanks for being with us again we sure appreciate it. well thanks for having me so what did you make of this arrangement that the formula one deal i mean some say it could be in the neighborhood of one hundred billion dollars and you know that that's a huge thing no matter who's looking at it right. yeah i think any economist looking at this is saying you know this is really inevitable we're going to get sports gambling in every league it's just too lucrative a portion of the sort of money that you can generate as a league or as a as

a circuit like f one and there's just too much interest from the fans themselves so it's a way to generate demand for your product even if you're not taking a piece of the gambling take formula one i read part of their statement and they said this is a fan centric move what the heck does that mean victor. so fan centric means that it's simply more interesting to watch a sporting event if you've got a little something on the line at least that's what most most leagues think and so they think they can get more fans to the game more fans to the races if they have fans you know who are betting ten twenty dollars twenty euros twenty pounds in furthermore this is not just going to be you know all the time betting where before the race you put down ten dollars on who you think is going to win gambling now days is very interactive so that any point during the event you can have all sorts of bets going on what happens during this lap what's going to happen next lap who

is going to be in fifth place who is going to take the next so all that sort of stuff is is what happens in a kind of a modern gambling mechanism here boy it's so much you know like markets i mean there's derivatives upon derivatives baton derivatives of these things and you know traders love to trade i guess gamblers love to gamble sounds exciting and dangerous at the same time a lot like formula one racing itself let me ask you picture where will the advertising be is it what you would assume on the cars on the sides of the wall and placards etc is standard sort of stuff we're going to see. so you're going to see all the standard stuff so the stuff on the cars physical signage at the racetracks and along the course but there's probably going to be a ton of electronic piece in there things perhaps during the broadcast where you have odds and different things coming up during the actual broadcast itself plus

types of apps that can be designed to be watched while you're actually watching the race itself so that again you make it this interactive experience of course interactive means more opportunities for for for sports fans to bet of course admittedly that also means more opportunities to for sports fans to. lose some of that cash to the gambling houses absolutely you know victor when we we've spoken about this before i think we have to the u.s. supreme court decision to allow sports betting but what do we see in terms of sort of the industry the business impact of this and do you expect to continue or might there be a point where people say god maybe this get not a hand what's your view well so we're nowhere close to that yet in the united states in the u.k. we're essentially they have unlimited sports betting on pretty much anything it is a large industry there's about thirty billion dollars worth of bets being made

every year in the u.k. on sporting events if we translated that to the united states and we have the same sort of exposure in the united states as they have in england we might be saying something like one hundred fifty billion dollars of bets being made every year in the united states across all states that is a huge increase of what we saw last year last year we only had about five billion dollars worth of sports bets being made legally in the united states and of course that's because as of may there was only one state in the u.s. nevada where you could actually bet on sports legally very interesting of course a lot of these are either nations or localities. they do this not just because it's legal but because they can get the revenues when with tighter and tighter budgets that's certainly something one revenue source they look at victor matheson from the college of the holy cross we thank you victor pretty appreciate good to see you

again. up thanks for having me i'll be back any time. and we're going to squeeze in a brief break here but hang because when we return we look at the black beauty commodity coal which is seen a real recent rise i'll be joined by jim thompson of i.h.s. market watch archie course want to truly charges joins us from fifth avenue in manhattan to tell us about how some big brands are actually burning their garments and how some may be taking enough out of it as we go to break here are the numbers at the closing bell back in a flash. i

think we can agree that the decision to intervene in libya was perhaps too quickly taken but we also know that the libya crisis today as we see it at least as i see it is a multifaceted crisis because it's a political crisis it's a security crisis and it's an economic crisis so i think the main problem of the post twenty eleven transition was to put complete emphasis on the political process and not sufficient thought and strategy into the military dialogue long. and completely forget the economic dimension of the crisis. in twenty four to you know bloody revolution to. the demonstrations going to be relatively peaceful political protests to be creasing the violent revolution is always spontaneous. is it you know here put me in your list. we mean the new

bill is that i knew pulling you over the phone the ukrainian president recalls the events of twenty fourteen. those who chilcote has invested over five billion dollars to assist ukraine in these an article that will ensure a secure and prosperous and democratic. led. with this manufactured consent to the public will investment for production and the type of investors that tend to come in want return on their on their investment very quickly which is limited cap ex suspended teachers and made it difficult for demand supply and always. reach where demand wants it to be and jim given that you say you know prices have been relatively high for a couple of years now are we seeing will be major investments in coal that maybe

just a few years ago and people would have been shocked by. know to tell you the truth that's the that's the real story the story is that there are hardly is a story despite two years of elevated prices both thermal and metal large will coal you really have not seen investment come into the sector significantly to to lift production and try to take advantage of those high prices nor have you seen the larger mining houses really try to ramp up production so as a result what you've kind of reached as coal being in something of a holding pattern with historically elevated prices and not the kind of the demand or supply response you would have a big spec to see even in the recent past and thinking. of that about sort of in

a holding pattern president trump in the u.s. has put out a call plan and and you know is that sort of a lifeline is that going to be helping at all or and is that could be short lived overall jim what are your thoughts. what's complicated story in you know certainly president trump is not responsible for the price of coal being high and you know the trump administration has generally vowed to be pro energy which means that you know it also incentivizes natural gas production and other forms of energy production so i don't think that has had anything to do with high coal prices. here in the united states the ministrations efforts have helped in a nexus stanch a way in that certainly policies have allowed companies to survive and.

not necessarily be pushed to the sidelines i think though what we'll see coming up is what where do we go from here the trump administration has has made noises about. taking actions that will help both coal exports and more importantly to the industry. perhaps. extend the life of domestic power plants if and when that happens i think you can really judge how effective the administration has been in helping coal until that happens i think it's it's an open question jim we sure appreciate you being with us hope you'll come back sometime able to talk about that plan as it gets a little closer to any implementation jim thompson the executive director of call and i just market thanks jim take care. thank you enjoyed it.

with hundreds of millions of people on the planet in need of clothing so my big brands have been doing something seemingly unthinkable with excess garments burning them for more we go to our to correspond to trinity travelers who joins us from fifth avenue in manhattan here's trinity that's happening home to some of the world's most iconic and luxury fashion brands from luxury shoot. down to get him back you name it they've probably got it but what all the merchandise that doesn't get sold in stores well we're here to answer that for you it's very important to stay on track and because everything changes drastically as the season goes back from kashmir coats to handmade bags when the seasons change and luxury brands can't sell the items in store they oftentimes send those products to get burned. given

the state of most economists at the moment and on the p.c.c. parole for even just a bit chary would probably be. burning it and it's not uncommon destroying unsold inventory is a widely used to but rarely discussed technique that hyun companies perform to maintain the scarcity of their goods and the exclusivities of their brands in italy and many other countries they can also claim a tax credit for just storing the inventory but the technique has sparked environmental concerns and criticism from many i feel like it's not like the credit environment when the close could definitely go to people that are in need we just actually actually just walk by and just see what these people are wearing if you're not going to use the coals or put it to good use then what's the point of burning it honestly i just don't see the point honestly and that may be changing luxury fashion brand burberry recently announced that it would stop burning at times told them before this after an angle report revealed that the fashion brand burned nearly thirty eight million dollars about. inventory nearly fourteen million in

beauty supplies twenty four million in ready to wear and that's three meanwhile one hundred sixteen million of burberry products have been burnt within the last five years but many believe the unsold goods could serve a better purpose one woman in south africa uses wasted retail i don't to help women become entrepreneurs' we really talk about self employment helping women that are currently unemployed become self employed and we roll them in a two year program and they live there in the new the new street skills to run a sustainable business and very early on in the program they learn real business skills by buying and selling the clothing from us however other luxury brands believe that burning the goods is enough. in the age of trump winning is all that matters the phrase by any means necessary

has truly been weaponized now politics has little to do with policy front and center of perceived cultural grievances and resentments just ask red cow. holidays intimations by the like button is a way to turn one on nearly be productive workers creating wealth for themselves into slave labor creating wealth for mark zuckerberg this is all about the us

library and this is all about the robots who are taking all the productivity of passing through labor arbitrage to the pockets of the tackling. it's hard to imagine after the war a nazi doctor was still active. in the nineteen seventies cretonne had as the chair of its board a man convicted of mass murder and slavery. a german company developed. a drug that was promoted as completely safe even during pregnancy. it turned out of terrible side effects what has happened to my baby anything. you know she said is just good choice minix a little mind victims of to this day received no compensation they never apologized for the suffering they. not only want the money. i want the revenge.

i know. i don't have the money. on. me. i'm not going to want. russia israel and syria looking for the guilty party after the tragic downing of a russian military plane over the mediterranean. greece moves thousands of refugees it from an overcrowded camp after an outcry from human rights groups over crime and poor sanitation. plus the travel to the iraqi city of mosul more than

a year after it was liberated to meet people rebuilding their lives amid the ruins of the tall because it was. so. fun to leave i mean i don't.