11/08/2017 Asia Business Report

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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.


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


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


should be expecting for their newborns.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


headquarters. Staying with Silicon Valley. Snapchat just released its


numbers and they were disappointing below unless expectations of. They


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


not all of these Japanese investments successful? Some


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


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


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


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


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


still on this massive write down because of its acquisition of


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


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


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


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


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


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


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


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


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


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


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


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


been asking why those acquisitions were made without due diligence.


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


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


this week. Department stores offer baby preparation services around the


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


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


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


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


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


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


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


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


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


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


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


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


they often have more disposable income and the industry is changing


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


for now.