11/08/2017 Asia Business Report


11/08/2017

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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Now on BBC News, all the latest business news live from Singapore.

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More troubles for the founder and formal boss of Uber. A lawsuit for

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fraud. And how much is too much? We break down what expecting parents

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should be expecting for their newborns.

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Good morning, Asia. Hello, world. Welcome to another edition of Asia

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Business Report. It's a Friday. Thank you for joining us. I'm Rico

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Hizon. We start off with Uber. The former Chief Executive has had a

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tough few months. He was forced out of his job in June after a series of

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embarrassments for the company. Now he is being sued by a venture

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capital firm for fraud. Earlier, I spoke to a North American reporter,

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Dave Lee, who was at the headquarters in San Francisco.

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Basically, one of the biggest investors in Uber are suing them

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because they say he fraudulently added board seats to Uber to fill

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them with allies of himself. Now we are in a situation where he is the

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former CEO. He wanted to come back and it is reported he would use the

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allies to make that possible. Venture Capital say that would have

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been done fraud at me. -- fraudulent. There were sexual

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harassment scandals and other things. They said if they did not

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know about these things they would not have allowed these board seats

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to be added. It is unprecedented. They own 13% of Uber. It is a

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powerful voice on the board and they are unhappy. What does the lawsuit

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need for Travis? -- mean. He could be removed altogether. When he was

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ousted as CEO in June he did not leave completely. He went on to the

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board. The seat he took was one of the three seats he added that are

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now being disputed. If this lawsuit is successful, those three seats

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would be removed and presumably so would Travis. The company that he

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was running at the beginning of the year, successfully, he has now been

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ousted as CEO and could be kicked off the board as well. Dramatic

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consequences if the lawsuit is successful. Also, Wemo, another

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company, they are taking Uber to court for stealing cyber technology.

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They are saying this shows the nature of Travis's stewardship of

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Uber. They think this adds to their case. That will have implications in

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their case as well. That was Dave Lee outside the San Francisco Uber

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headquarters. Staying with Silicon Valley. Snapchat just released its

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numbers and they were disappointing below unless expectations of. They

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lost nearly $450 million in the three months until June. That is a

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lot of money. They say they added 7 million daily users during that

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period. Slightly lower than the first quarter. The platform seems to

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have fallen out of favour with investors, the IPO, pricing them at

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$17 a piece. On the first day of trade the stock hit a record high of

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nearly $30 a share. But it has been on a slippery slope ever since. Last

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week the shares hit an all-time low of nearly $13. The meal kit company

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Blue Apron lost a fifth of its value two months after going public. They

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say the cost of building a new centre would add to losses this

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year. They are also being squeezed by stiff competition from Amazon

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offering a similar service last month. They are joining a growing

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list of technology start-ups failing to live up to expectations ahead of

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their share prices. Now to a massive investment by Japan's Telco giant,

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Softbank, which is on a spending spree. From Uber, Lyft, to Fanatix,

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they are eager to invest. Late last night it was reported they will find

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$2.5 billion into India's on line retailer, Flipcart. But if they are

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going to do that, not all of them are going to be successful. Why are

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not all of these Japanese investments successful? Some

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acquisitions are successful, some are not. I want to highlight two

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cases. First of all, Japan Post. The company went public just over two

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years ago in what was the biggest share sale in Japan for three

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decades. The company just reported its latest results after the bell

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yesterday. While it finally started to make some money, the spotlight is

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still on this massive write down because of its acquisition of

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Australia's Tall Holdings. They bought them in February, 2015, just

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ahead of the IPO, and it paid $6.5 billion for it, but it had to write

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down 3.5 billion. Yesterday we were telling you about Toshiba which

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finally reported its results for the last year. But it has lost nearly $9

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billion last year. And that is mainly because of the disastrous

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acquisition of US nuclear company, Westinghouse. For that, Toshiba paid

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nearly five and a half billion dollars. Bennett had to write down

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more than $6 billion. -- but then. Would you believe it, both of those

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acquisitions were made by this person, the boss of Toshiba just

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over a decade ago. He was brought in by the Japanese government to lead

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Japan Post ahead of the share sale. He has not -- he has stepped down

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because of health reasons. He has not made any comments. People have

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been asking why those acquisitions were made without due diligence.

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Some acquisitions work and some do not. Thank you so much. Marika Oi.

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And now for the final instalment of the Business of Birth series from

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this week. Department stores offer baby preparation services around the

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world to help expecting parents get what they need. You could be

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spending thousands of dollars. What do you need for a baby starter kit?

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We went out and about in New York to find out. When we were growing up we

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never had these. I never even had a car seat. . Shopping for a baby is

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not what used to be. Call this the stroller pit. Parents would start

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crying because there are so many options. There are so many choices.

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Just take strollers. Jamie is an expert on infant gear. There are

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many cribs. People do reverse investment. They spend more on the

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crib than the mattress. It started with the Bugaboo stroller. It was a

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Renaissance to be honest. They came out with a really cool stroller and

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all the others had to step up their game. That trickled down. In

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America, women are waiting longer to have children to be by that time,

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they often have more disposable income and the industry is changing

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to cater to them. This year, this was the global market for babycare

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products. $66.8 billion. For all of the cuteness, this is a

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billion-dollar industry, with baby companies focus on how to get

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expectant parents to spend more. And the choices can be bewildering. This

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China's parents know how daunting it can be. -- child's. It is geared

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towards wealthy parents. It is very expensive. You can get so caught up

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in it, especially on Instagram, when you look at some of the perfect

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lives some of these families have. They are always so beautiful and

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they have wonderful homes and they have the perfect baby items and you

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feel like you need them. Take the desire for every parents to get the

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best for their children, add the commercial desire to keep up with

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the Joneses, and it seems like child play. Join the conversation on line.

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We are asking how much money you need to spend on a newborn. Use the

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hashtag, #businessofbirth. The markets. Nearly 30 billion US

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dollars were wiped off the value of blue-chip stocks overnight as

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investors remained spooked by the issue with North Korea and America.

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This is how it ended. The DOW falling. The NASDAQ 135 points down.

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The biggest one day drop in almost three months. As for Asia, well, as

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you can see right now on the market screens, following the footsteps of

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Wall Street, all lower. Thank you so much for investing your time with

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us. Have a productive Friday, everyone. I am Rico Hizon. Goodbye

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for now.

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