03/02/2017 World Business Report

Now for the latest financial news, with Aaron Heslehurst

Malta's Prime Minister calls for a "fair deal" for Britain,

but warns it will pay a price for leaving.

Snapchat files for a stock market flotation, that could be the biggest

In a minute we'll have, World Business Report.

We start in the Maltese capital, Valletta, where EU leaders

are gathering for a special summit, two days after the British

parliament voted overwhelmingly to start the process of Brexit.

Prime Minister Theresa May will be holding one-on-one talks

Malta holds the rotating presidency of the EU.

Its Prime Minister, Joseph Muscat, has been clear Britain can't

He has told the European Parliament this.

"We want a fair deal for the United Kingdom."

But and it's a big but "that deal necessarily needs to be

Assuming Britain formally gives its two-year leaving notice

next month, known as "triggering Article 50" of the Lisbon Treaty,

Mr Muscat says they must agree a Brexit deal by October.

That's so it has time to be ratified by member states

and the European Parliament before the UK is formally out.

Then there's the small matter of this, the UK's bill

As much as 60 billion euros is what Britain will owe,

according to some in Europe, taking into account its share

of budget commitments, pensions, spending on UK-based projects etc.

That's likely to be the subject of a lot of wrangling.

Juergen Stark is a former board member of the European Central Bank.

He told the BBC's Andrew Walker that Brexit will require a major re-think

I don't see under current circumstances the risk. However, in

the context of constitutional reforms in Europe, the context of

structural reforms in Europe, I think we need to think about the

reallocation of responsibilities. I am in principle against any other

centralisation of policies at the European level. And in this context,

I would like to talk about the resent of Europe, to reinvent

Europe. And in this context, one might also consider the exit of one

or another country from the EU. So, for me, it is not a given that the

euro area, the current country composition, will exist in this

layout in ten years' time. Looking at the layout, Britain is in the

process of leaving. Is there a danger to the stability of the EU

itself? It depends on the negotiations and the outcome of the

negotiations. Whether the United Kingdom will in the end be better

off than it is now as a full member of the European Union. This will

have a ripple effect to other countries. I think both sides of the

Channel will start in the very tough negotiations at this point. I think

Europeans have no interest at all to give the signal to now full members

of the European Union so that there is still a balance and benefit

exceeding the cost. That sucks the life out of the show.

Let's go to Rico Hizon. The Chinese economy comes back from holiday.

They don't like. Everyone he was caught offguard by the latest move

by the Central Bank. Chinese and regional equities are slumping to

their steepest losses in two weeks. And at this point there is still no

official word from the People's Bank of China why there is no movement.

It basically reinforces the view that Chinese authorities are intent

on forcing that handling companies to deleverage. It appears to be

intent on controlling a real estate bubble. It could try to arrest the

yuan's depreciation against the US dollar. There have been allowances

for policy makers to have more room to look at debt this year. Analysts

think this will have to be gradual. They believe the Central Bank will

be in no hurry to raise the policy standing rate for now. Aaron, have a

good weekend. Do you Snapchat? I don't. I am behind on social media.

That is because you are old! Like me! Us oldies don't do it!

In the last few hours the social networking company has filed

documents to float its shares on the New York Stock Exchange.

It's likely to be the biggest IPO, or Initial Public Offering,

in the technology world since Facebook floated in 2012.

For those of you who don't use it, it's kind of the opposite

of Facebook, instead of making a permanent record of your life it

lets you send picture messages that then disappear.

According to the company, 158 million people use Snapchat

every day to send picture messages or Snaps.

That's nothing compared to the almost two billion people

But it's very popular among young people, especially in the US.

An estimated 41% of Americans aged 18-34 are on Snapchat.

Its users are young, and, boy, so are its founders.

It was set up by Evan Spiegel, on the left, now still only 26,

Three years ago they turned down $3 billion in cash for the company

Snapchat could have a stock market value of up to $25 billion

We have been trying to get our brains around it. Here is the

problem. I have been on Snapchat for a few years but have never got it.

Now, finally, I am determined to understand it, with a younger

person, Priscilla. What should I do? The best thing to do on Snapchat is

take selfies. Double tap your screen. If you want to put a filter,

you hold onto your face, and you have different filters. I have got

that filter, that filter... I have got ears... To send that to someone

individually, you click on the arrow. You can share yourself with

the world. That is the point of Snapchat. I don't know if he has got

it. Steve Brazier is CEO

of the technology research firm, Thank you for coming in at this

horrid hour. Snapchat are in the situation Facebook was 5-6 years

ago, because people said Facebook has to learn how to monetise and

make money. Snapchat needs to make money. That is true. Twitter was in

the same situation. The big question with Snapchat, is it Facebook, or is

it Twitter? It has a valuable audience, the young people of the

US. But it has a lot of people on the Apple platform. It does not have

much outside of the US. And it is not good with its app on Android. It

is a limited demographic. It is not with the old or outside the US. Does

that mean it has the room for growth and other markets to look it? It has

a chance. It is a popular app. But it has a lot of competition,

especially outside of the US, and with companies in Asia like Lion and

Wechat. Anything they do can be copied and has been copied. Use a

Instagram. Mark Zuckerberg owns Facebook. He was turned down for

Snapchat so he bought out Instagram to kill them off. Is it a smart move

by these chaps now to go public to Wall Street? There is great urgency

to go public quickly. The era of quick money is at an end. We just

heard about the interest rate rise in China and we will have it in the

US later this year. The availability of cheap money will be harder. It is

good to do it now with the IPO before the hype around technology

diminishes. While I have you and with your background in technology,

I have to ask you about Amazon, one of the biggest companies in the

world. They came out last night and said they are not making as much

money as we all expected to be that is something to do with spending a

lot on investment. The A1 is the most innovative company in the

world. -- Amazon. They have innovated groceries and Cloud

computing and the Echo. Lots went right for them but they have

disappointed with overall revenues. They are asking shoppers to buy on

convenience, not just with lowest prices any more. There is

competition coming in, especially from Google, with Amazon. Thank you

for coming in and joining us. We will leave it there had this. This

is really interesting. The Chief Executive and co-founder of Uber,

another kid. has quit President Donald Trump's

business advisory group. The boss of the ride hailing service

had been coming under mounting pressure over the Trump

administration's immigration Critics included Uber drivers,

many of whom are themselves immigrants, and a social media

campaign urging users to delete There we go. But Elon Musk is still

going to the meeting today with President Trump. We will keep you

across that. Don't forget, you can get

in touch with me and some I will be back to look at the papers

from around the world. See you soon. A group of MPs is warning that

government plans to cut unemployment benefit for new disabled claimants

could leave some unable to meet The Work and Pensions Committee says

the reduction will not motivate