room sick. room the real news room. this is boom bust broadcasting around the world and covering the world of business and finance and the impact upon all of us i'm bart chilton in washington thank you for being on board coming up today as united kingdom continues to be in a pretty precarious place related to brecht's that some are questioning if the u.k.'s budget coffers are losing out on corporate corporate profits will record

which c.e.o.'s drop mark joins us for a closer look and we consider the dollars and cents and cents as the n.f.c. 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 in some posts eyes that's 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 haven't sake have some of the large companies been burning them artes correspondent pretty charges tells 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 that financial headline. the chief executive of dance key bank denmark's largest has resigned over a two hundred billion dollar money laundering scandal that has implicated the retail banks branch and is still only up 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 and a stone has financial supervision 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 a 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

unable to convince kay p.m.g. to pay a settlement as we've discussed here in the program before kay p.m.g. has bad graying of scandals recently with the most recent case involving their work in south africa. and in 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 interbank 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 point which most global credit transactions rely earlier today officials from the u.k.'s prudential regulation authority the p.r. and financial conduct authority the f.c.a. sent letters addressed to dear c.e.o. to insurance companies and banks the letter seeks us surance that managed.

understands the risk 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.c.a. 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 partners 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 it with some like i.m.f.

managing director christine lagarde warning of dire economic consequences for the u.k. if there is no brics 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 are joined by our friend hill reporter it's the c.e.o. mark heller we 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 tax rate when the corporate rate in the u.k. is nineteen percent or close to maybe one thousand point five but a lot more than they paid now nobody is saying that this was you know. anything illegal it was just merely right of 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 there's a great difference between if they jennette not void and i think that avoidance and . you look at the best and the brightest the best in the brightest go into the tax

firms in the global firms whereas you have bureaucrats writing the tax code and as 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 really 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 could 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 we're going to your room for. us and particularly. countries in europe of france belgium with much higher corporate tax rates and even you know surprising to me mexico has a very. close australia so the u.k. is actually fairly competitive we're going to get all the nations really actually very competitive fourth in the world one thousand percent tax rate and actually it's really improved in terms of all of the recovery since the fiscal crisis because it was at one point more like sort of twenty eight percent it's going down it's 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. the 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 actually see what the e.u.'s doing and the moderate best is the commissioner for competitive across europe and she actually 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. it has been previously moving in the lower

direction as well because we want to be competitive because one of the authorization is 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 while it is all in the fine print i guess right yeah. thank you hill you're welcome 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 and business impact is victor matheson professor of economics and

accounting at the college of the holy cross it 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 your statement and they said this is a fan centric move what the heck does that mean victor. so fans 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 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 where boy it's so much you know like markets i mean there's derivatives upon derivatives but 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 that 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. arresting of course a lot of these either nations or localities they. they do this not just because it's legal but because they can get revenue so 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 we'll be joined by jim thompson of i.h.s. market plus r t correspondent trinity 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 an about face as we go to break here the numbers at the closing bell back in to play. 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 all the d.d.r. ceasar and completely forget the economic dimension of the crisis. ministries police forces and city administrations of many countries depend on one corporation does one might also point to all of those room for compromise and god of this is going to guns not woods as the good you got into the sea it's just a supply problem proprietary software you don't know the source code isn't that such a security risk when you have a black box operating in the public eye to microsoft dependency puts governments on the cyber threat not only to think off message put it more actually close the office of the assistant is it still the interests of the only one of them or think

the most of the people in this to do will do some of those. things this is the i still call them starting down with the old vision stopping them also stealing only from his op and his cards and the phone. book holds an institution to. put themselves on a lot. to get acceptable reject. so when you want to be trusted. she. wanted us. to do right for us that's what the three of them. interested in the water. to imagine decades after the war a nazi don't it was still active and rich in the nineteen seventies crittle had as

the chair of its a man convicted of mass murder and slavery as a german company develops in the demise of drugs it was promoted as completely safe even during pregnancy it turned out to have terrible side effects what has happened to my baby if anything. yeah she said she's just. minix and had a mind victims have to this day to receive to no compensation they never apologized for the suffering that not only want the money i want the revenge. partners meanwhile the jordanian unemployment rate is above eighteen percent and the gross domestic product for the nation has been trending downward for the last decade. and now we turn to the black beauty commodity coal which has seen some substantial price increase as of late joining us discuss

is jim thompson the executive director of call it market who joins us from beautiful knoxville tennessee jim welcome and thanks for being with us. thank you for having me much pretty so let's start with prices which have seen a rise and and some of this is due i guess to hurricane florence but what's been going on with prices and why jim. the prices have been high for some time a couple of years in large part because supply. band conditions are tied in the global economy has been strong but certainly florence complicates the issue particularly near term because of disruptions in u.s. east coast kollek sports and jim it seems like a lot of global mining companies are not only enjoying the high prices but almost seems strange in many places around the planet there they're moving away from high

carbon fuels to more renewables i meet how can this these two universes seem to be colliding but it seems to be making economic sense for the mining companies are right. well absolutely right now you know one thing that's happened with the sort of negativity toward coal and with some. questions about people want to invest in coal and so forth you know the coal that's be mined becomes more valuable it's very difficult to bring on production now it's very difficult to get 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 years now are we seeing the major investments in coal that maybe just

a few years ago if people would have been shocked by. know to tell you the truth that's the that's the real story the story is that they're hardly is the story despite two years of elevated prices both thermal and metallurgical coal you really have not seen investment come into the sector significantly to to lift production and try to take advantage of those high. prises new or have you seen the larger mining houses really try to ramp up production so as a result what you've kind of reached is colby in something of a holding pattern with historically elevated prices and not the kind of 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 valid 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 an open question jim we sure appreciate you being with us hope you come back sometime able to talk about that plan as it gets a little closer to any implementation jim thompson the executive director of coal at 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 attorney charles 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 give handbags you name it they've probably got it but what all the merchandise that doesn't get sold in stores well we're going to have 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 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 a. bunning and it's not uncommon destroying unsold inventory is a widely used to but rarely discussed technique that high and 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 after 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 sun told them before this after an angle report revealed that the fashion brand burned nearly thirty eight million dollars event. inventory nearly fourteen million in

beauty supplies twenty four million in ready to wear and in the factories 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 want to help women become entrepreneurs' we really talk about self employment helping women that are currently unemployed become self employed. and roll them in a two year program and they live there in the near the new street skills to run a sustainable business and very early on in the program they learn real business skills modifying and selling the clothing from us however other luxury brands believe that running with it is enough. to fill this time. i meant to set up

a set. with money in. their lives to build it will. be in the him a lot and musician he was a highlight in. what was in the book the little guy who did what is going to come out of the money i don't want to worry about. someone shouldn't worry. about this you need to. tone down the. art of a shuffle stemming we're going to end up on the. field at a little warmth and you know what. i want and. show what i thought on this idol of the.

we want a strong european union based on strong member states and we want a europe which takes police christian heritage so number one we don't want europe to get rid of the christian heritage and we want the member states to all stay as member states we don't want off you know i'll give up our nationality you don't want to give up more culturally don't blow you up for every season and so on and so forth. medical use downs to leak. when you.

look at that is to close most of the book called the back. to school stuff still it's about seeing i mean there's. just a little. i don't know.

i mean. i'm not going to want. me. to. rush is on t.v. doping agency is set to hear its fate as the international body in charge of stealth drugs in sport purse to focus on moscow's reinstate. at this hour the confirmation hearing for president from supreme court pick stagnates in great a few stations red calvin a proving to be one of america's most divisive nominees ever. loss drug dealers only.