:00:00. > :00:00.This is Business Live from BBC News with Susannah Streeter
:00:00. > :00:11.Investors scramble for Snapchat - in the biggest tech
:00:12. > :00:19.But is the app a cash cow - or just a craze?
:00:20. > :00:36.Live from London, that's our top story on Thursday 2nd of March.
:00:37. > :00:40.So today is the day for the most anticipated tech market
:00:41. > :00:42.floatation since Twitter - SNAP shares will begin trading
:00:43. > :00:46.on Wall Street later at $17 a share valuing the company at $24 billion.
:00:47. > :00:49.Also in the programme - the fallout from Yahoo's
:00:50. > :00:52.massive security breaches - Marissa Mayer is to take
:00:53. > :00:54.a significant pay cut and the company's top lawyer
:00:55. > :01:02.And the global market rally continued in Asia earlier today -
:01:03. > :01:05.this is the scene right now in Europe right after another
:01:06. > :01:07.record breaking night for the Dow in the US.
:01:08. > :01:13.We'll talk you through all you need to know.
:01:14. > :01:19.We will be getting the inside track on how our cities might look in the
:01:20. > :01:25.world's largest property fair. Today world's largest property fair. Today
:01:26. > :01:27.we want to know, do you love snatch at, or do you have no idea what it
:01:28. > :01:39.is? -- SnapChat. The programme is jam-packed day, so
:01:40. > :01:52.we will make it as snappy as we can. We start on Wall Street
:01:53. > :01:54.where investors are gearing up for what could be the biggest -
:01:55. > :01:57.and certainly the most hyped - technology flotation
:01:58. > :01:59.since Twitter in back 2013 - In a few hours' time shares in SNAP
:02:00. > :02:04.- the owner of photo messaging app Snapchat -
:02:05. > :02:05.will begin trading Will it end up a stock market
:02:06. > :02:10.giant like Facebook - or - like Twitter -
:02:11. > :02:12.a bit of a flop? The flotation has been
:02:13. > :02:13.hugely oversubscribed, Late on Wednesday it
:02:14. > :02:19.priced its shares at $17 - above the $14-to-$16 range it
:02:20. > :02:21.had previously indicated. That will give the company
:02:22. > :02:23.an opening valuation More than twice as much as Twitter
:02:24. > :02:34.at its current share price. That's despite a couple
:02:35. > :02:38.of major worries - Firstly, Snapchat has
:02:39. > :02:42.yet to turn a profit. In fact it lost over half a billion
:02:43. > :02:47.dollars last year alone. Plus shareholders
:02:48. > :02:48.who buy in will not The founders of the company
:02:49. > :02:52.will retain complete They are incredibly young -
:02:53. > :02:56.and as of later today - Evan Spiegel and Bobby Murphy -
:02:57. > :03:01.both in their 20s - will be worth around
:03:02. > :03:32.$4 billion each. the younger audience only brands
:03:33. > :03:36.want to reach. For me personally it makes me feel like a dinosaur. I
:03:37. > :03:41.find this out incredibly difficult to use. If we rewind and look at
:03:42. > :03:46.Facebook. When it went on the public market it had huge scale. Millions
:03:47. > :03:50.of people use it. Not just young people. For me that's one of the
:03:51. > :03:59.biggest concerns. It has a lot of young users. There is optimism
:04:00. > :04:04.around because it has quite a few, given its young age, but can they
:04:05. > :04:08.entice more to keep that user base growing? Well, as we have seen in
:04:09. > :04:11.has been slowing. I think that is has been slowing. I think that is
:04:12. > :04:17.because of threats in the market. Look at Instagram, they went away
:04:18. > :04:23.and copied some of the biggest features of Snapchat. But they have
:04:24. > :04:24.the backing of Facebook to move users across. I think there are some
:04:25. > :04:36.worries there. Kevin the owners, still in their 20s, they
:04:37. > :04:42.will retain complete control of the company. Given they have minimal
:04:43. > :04:48.corporate experience that is a risk, isn't it? Absolutely. Mark
:04:49. > :04:52.Zuckerberg created the same thing, he is still owner of the company. We
:04:53. > :04:57.are looking at very young founders. The have to be questions about how
:04:58. > :05:04.they can scale the company. An deal will all of the corporate questions
:05:05. > :05:09.in the long term. -- and deal. Will it be a rocky ride? Or do think you
:05:10. > :05:13.the optimism will continue? There is one major opportunity for it. If we
:05:14. > :05:18.look at social media, a lot of people we speak to say they are
:05:19. > :05:22.moving away from the larger social networks. People are looking for a
:05:23. > :05:26.more intimate connection. If you look at your own Facebook feed, the
:05:27. > :05:29.fact that all of your family, your parents come your grandparents, and
:05:30. > :05:32.people you don't want to be in touch with our on there. There is a
:05:33. > :05:40.certain value in having a smaller network. If Snapchat can tap into
:05:41. > :05:51.that I think there is some value there. Does all of this talk about
:05:52. > :05:52.Snapchat make you feel old? Do get in touch.
:05:53. > :05:57.One of London's tallest buildings, The Leadenhall Building -
:05:58. > :05:59.nicknamed the Cheesegrater - has been sold to Chinese
:06:00. > :06:05.It's one of the largest UK property deals so far by a Chinese investor.
:06:06. > :06:07.British Land and Oxford Properties, which both own 50% of
:06:08. > :06:09.the wedge-shaped skyscraper, say contracts have been
:06:10. > :06:11.exchanged with CC Land, a company run by Chinese property
:06:12. > :06:19.Yahoo, which disclosed two massive data breaches last year,
:06:20. > :06:22.now says about 32 million user accounts were accessed by intruders
:06:23. > :06:27.in the last two years using forged cookies.
:06:28. > :06:30.The Internet giant say some of the latest intrusions can be
:06:31. > :06:33.connected to the people believed to be responsible for the 2014
:06:34. > :06:35.breach - which at least 500 million accounts were affected.
:06:36. > :06:37.Forged cookies allow an intruder to access a user's
:06:38. > :07:10.Lots of other stories on the website. Merlin is a UK-based
:07:11. > :07:15.organisation that runs many, many theme parks, many of the corporate
:07:16. > :07:18.stories there, as well. Have a look when you have the time.
:07:19. > :07:21.Australia has announced a crackdown on visas for foreign workers
:07:22. > :07:23.in the Fast Food Industry in a bid to protect jobs.
:07:24. > :07:38.This is part of a trend, isn't it, saying that citizens already in the
:07:39. > :07:44.country need to have access to those jobs first before immigrants?
:07:45. > :07:47.Exactly. That is what the country's Immigration Minister said. It's to
:07:48. > :07:53.protect Australian jobs and give them to Australians first and
:07:54. > :07:56.foremost. He is talking about the 457 visas. They are given out to
:07:57. > :08:01.skilled professionals. Last year most of them were given to jobs in
:08:02. > :08:03.the restaurant sector, cooks for example, medical professionals also
:08:04. > :08:07.come under that Visa, along with other people in the software
:08:08. > :08:14.industry, programmers and software developers. It covers a broad range
:08:15. > :08:18.of industries. Targeting the fast food sector. McDonald's and KFC are
:08:19. > :08:23.some of the employees have employed around 500 people since 2012 on this
:08:24. > :08:26.particular Visa. And he has said, you know what, they don't need to be
:08:27. > :08:32.country, they could be employing country, they could be employing
:08:33. > :08:38.Australians, instead. About 100,000 people were on the 457 Visa. He is
:08:39. > :08:43.targeting the fast food sector. He admitted most of these jobs would
:08:44. > :08:48.affect managerial staff at these companies, not the guys on the
:08:49. > :08:52.ground, but it does show that Australia, along with many countries
:08:53. > :08:58.around the world, are taking visual and political steps to show they are
:08:59. > :09:02.looking after their people first. Interesting to see what is going on
:09:03. > :09:07.happening in the US with regards to happening in the US with regards to
:09:08. > :09:13.that kind of story. Let's look at Asia. Hong Kong down slightly by the
:09:14. > :09:18.end of the day. But most of the day in Asia most of the markets were
:09:19. > :09:27.high and rallying following that rally from Dow Jones. Quite a bit
:09:28. > :09:32.above 20 1000. Japan had a good session. The yen is weak. Lots of
:09:33. > :09:38.talk about that the Fed in the United States is poised to raise
:09:39. > :09:41.rates this month in March. -- above 21,000.
:09:42. > :09:50.Fairly flat in Europe. In Europe yesterday all of these markets
:09:51. > :09:55.closed up around 2% higher, or slightly under that, so a strong day
:09:56. > :09:59.for Europe. We will talk about these issues in a second. First, let's get
:10:00. > :10:01.more on what we can expect on Wall Street later today.
:10:02. > :10:16.It could be the biggest tech company for a while. SNAP, owners of
:10:17. > :10:20.Snapchat, will start trading on Thursday. We'll see the success of
:10:21. > :10:31.Facebook? Or will it look more like twitter? -- will it see. The
:10:32. > :10:38.bellwether for the supermarket retailer Kroger. They are battling a
:10:39. > :10:43.renewed price war from Walmart. Intense competition and deflating
:10:44. > :10:47.food costs. Also reporting on Thursday, Abercrombie and Fitch.
:10:48. > :10:53.and those who are shopping is not and those who are shopping is not
:10:54. > :10:54.spending much of clothing and accessories, the company will likely
:10:55. > :11:02.be taking a hit. -- hitting malls. Record levels reached in the
:11:03. > :11:06.markets. Joining us is Alix Stewart, fixed
:11:07. > :11:15.income fund manager at Schroders. What is driving the market onwards
:11:16. > :11:18.and upwards? Partly global growth is picking up around the world and
:11:19. > :11:23.optimism that Trump is going to roll back regulation and the spirits are
:11:24. > :11:27.high. Even though he didn't actually say much in his address, there
:11:28. > :11:31.wasn't much detail about this massive boost infrastructure, was it
:11:32. > :11:36.more his demeanour that reassured investors? I think so. I think he is
:11:37. > :11:41.being seen as the mouthpiece but he has a team behind him which are
:11:42. > :11:45.quite, quite keen on delivering, making America great again. Also, we
:11:46. > :11:50.were talking about this yesterday, the fact that quite a few people are
:11:51. > :11:55.saying Mart is the month when they raise rates again. That has shifted.
:11:56. > :11:58.Most were expecting it to be in June. In a couple of weeks' time we
:11:59. > :12:05.are looking at a rate increase. Indeed. We were looking at two rises
:12:06. > :12:10.for the rest of the year and only 50% chance of a march rise, and now
:12:11. > :12:15.it is 80%. With our more cautious members saying they think it is time
:12:16. > :12:20.to reduce accommodation. The Fed has been vocal. They are putting out the
:12:21. > :12:26.signals. Yes. If they don't deliver in two weeks it'll be interesting.
:12:27. > :12:33.They don't like to surprise the market. Even the more cautious are
:12:34. > :12:36.saying we are going to go in March, it would be a big surprise if they
:12:37. > :12:39.don't. We will have to see that key crunch meeting in a couple of weeks'
:12:40. > :12:50.time. Still to come: Is property still the best
:12:51. > :12:54.investment? We will find out when we speak to
:12:55. > :13:00.the head of one of the biggest property shows. Let's talk some more
:13:01. > :13:08.about Merlin. We mentioned earlier about Merlin. We mentioned earlier
:13:09. > :13:14.that their results were out. They own many theme parks around the
:13:15. > :13:15.country. It is their first set of figures since the accident of their
:13:16. > :13:19.roller-coaster Smiler. The company, which also owns
:13:20. > :13:21.the London Eye and Legoland, Theo Leggett has been
:13:22. > :13:37.looking at the numbers. On the face of it, they look
:13:38. > :13:40.positive. The Alton Towers crash eventually cost the company ?5
:13:41. > :13:44.million in a fine imposed for safety failings last year. There was a drop
:13:45. > :13:46.in visitor numbers at Alton Towers in the wake of the crash but the
:13:47. > :13:51.company says it is recovering, cost company says it is recovering, cost
:13:52. > :13:54.savings have been made. A lot of job losses at the park are reaping
:13:55. > :14:01.rewards and the park is recovering. But it is a big company owning 100
:14:02. > :14:05.visitor attractions around the world, a lot of them outside of the
:14:06. > :14:10.UK. Results were better than expected but this is the share price
:14:11. > :14:15.today. A lot of anticipation before results came out, now it has fallen
:14:16. > :14:18.quite dramatically down 2.5% this morning. If you look at the figures
:14:19. > :14:25.come as you can see why. Revenues are looking well on the surface,
:14:26. > :14:29.profits -- profits up 3% but a lot of that is due to the fall in the
:14:30. > :14:33.pound sterling after the referendum last year. Taking out those are
:14:34. > :14:38.facts, operating profits would be done more than 6%. The company talks
:14:39. > :14:42.about headwinds like the effects of international terror on business,
:14:43. > :14:45.and that is why we see this response from investors this morning.
:14:46. > :14:48.Although the park chain seems to be operating in a fairly robust
:14:49. > :15:05.fashion, there are issues it must address. Thank you. We have some
:15:06. > :15:10.company results from Jimmy Choo, men's shoes are boosting their
:15:11. > :15:15.figures, after strong demand for the menswear line. We cannot give you an
:15:16. > :15:20.insight on that! And another story, something breaking just after 7am
:15:21. > :15:26.today. The capita Chief Executive is to step down, Andy Parker, in
:15:27. > :15:30.September, they issued a profits one in. The bass is to step aside at
:15:31. > :15:35.Catheter. More details on the website.
:15:36. > :15:44.Today is the most anticipated tech market floatation since Twitter -
:15:45. > :15:47.SNAP shares will begin trading on Wall Street later at 17 dollars
:15:48. > :15:49.a share, valuing the company at 24 billion dollars.
:15:50. > :15:57.That is a lot of money. A look at the markets now. Markets in Europe
:15:58. > :16:02.have been mixed today, all of these markets, most of them, these three
:16:03. > :16:09.that you can see, London, Paris and Frankfurt, they all had good days.
:16:10. > :16:11.Today, taking a breather, looking for direction. As we've been saying,
:16:12. > :16:16.certain shares on the move. And now let's get the inside
:16:17. > :16:19.track on real estate... MIPIM is the biggest
:16:20. > :16:24.property show in the world. It takes place every March in Cannes
:16:25. > :16:27.in the south of France. What are some of the challenges -
:16:28. > :16:31.or even opportunities - In the coming years,
:16:32. > :16:35.more than 60% of the population Next comes efficiency of resources:
:16:36. > :16:39.How will future real estate projects be able to take into account
:16:40. > :16:42.the need to monitor and save resources, when energy
:16:43. > :16:44.demands will grow 40% and half the world's population
:16:45. > :16:46.will be living in areas Very soon, over one trillion objects
:16:47. > :16:55.will be connected to the internet and all the data collected
:16:56. > :16:58.from the users and the buildings will clearly modify the way real
:16:59. > :17:11.estate professionals are working. Perhaps they are already changing in
:17:12. > :17:13.reaction to that trend? Let's find out.
:17:14. > :17:15.Filippo Rean, Head of Reed MIDEM's Real Estate Division -
:17:16. > :17:19.he's also the director of the property show.
:17:20. > :17:26.He joins us now. Thank you for joining us. What will the city of
:17:27. > :17:30.the future look like? What are the current trends in property? Our
:17:31. > :17:37.exhibitors at the show thinking much more about energy efficiency, and
:17:38. > :17:42.how we will live in future? The answer is a big yes. It means these
:17:43. > :17:48.themes and trends that it years ago appeared quite different from the
:17:49. > :17:54.main real estate business, today they are included and considered,
:17:55. > :17:58.when cities and planners and developers think about new projects
:17:59. > :18:06.and new developments. Some people would say, why aren't we seeing
:18:07. > :18:12.energy-efficient products put on new homes? Some would say, solar power
:18:13. > :18:15.tiles on the roofs, things like that, why haven't they been in
:18:16. > :18:21.force? There are economic considerations, what is important is
:18:22. > :18:25.to give a new dimension to changes, the collaboration between the public
:18:26. > :18:32.and private sectors. This is what we've tried to do at MIPIM, a place
:18:33. > :18:36.where real estate themes and issues and opportunities, the private and
:18:37. > :18:40.public sector have come together because, you are right, you might
:18:41. > :18:45.have different views, more short-term views or long-term views,
:18:46. > :18:50.you have two combined the two and come up with developers of the
:18:51. > :18:58.future. In terms of the show itself, it is very international. You have
:18:59. > :19:01.most countries represented, architects, investors, developers,
:19:02. > :19:04.discussing and chatting. Depending on where you are in the world,
:19:05. > :19:08.challenges and demands are very different in terms of use cities and
:19:09. > :19:16.how they will change in future. But, what are the key themes discussed in
:19:17. > :19:20.the industry in terms of development of the future cities? You have at
:19:21. > :19:27.least two big themes which are quite common. One is the sustainability,
:19:28. > :19:31.that is common and everybody is aware of that. Secondly, how to
:19:32. > :19:37.include key societal changes. What is sometimes called be sharing a
:19:38. > :19:40.economy. Into our cities come into our buildings. -- Schering
:19:41. > :19:48.and I assume the time frame where they change, it is getting shorter?
:19:49. > :19:53.There's an acceleration... Because of technology. It is something that
:19:54. > :19:58.accelerates the trend and is something that will allow the
:19:59. > :20:06.industry to adapt. That is why there is a new buzzword, the combination
:20:07. > :20:13.of property and technology. It is beginning to be a real thing. At
:20:14. > :20:16.places like MIPIM, even last year, there was still the margins and
:20:17. > :20:25.today will be one of the key topics and will have a large space within
:20:26. > :20:31.the exhibition area. Thank you very much for talking to us about it.
:20:32. > :20:34.Good to meet you today. Very soon, we will be looking at other stories
:20:35. > :20:49.being talked about today... The boss of Netflix has been talking
:20:50. > :20:55.to Rory Kevin Jones. Net neutrality has taken hold around the world as
:20:56. > :21:00.an assumption and belief about how the Internet should work. There are
:21:01. > :21:05.many countries that do not have a law about net neutrality. But, we
:21:06. > :21:09.still operate along those principles. If you could send a
:21:10. > :21:12.message to Donald Trump about the principle and weight is still
:21:13. > :21:18.important, what would it be? I think net neutrality very important, so
:21:19. > :21:24.that no voices are censored and there is equality around. Facebook,
:21:25. > :21:28.it suddenly seems very interested in doing a lot more video. That would
:21:29. > :21:37.be quite a danger to you, wouldn't it? And there is YouTube Red, which
:21:38. > :21:40.is a subscription service, and Amazon, and potentially Apple doing
:21:41. > :21:45.some original shows. There is a lot of competition and challenge for
:21:46. > :21:55.Netflix, but room to grow. His business is very challenging. It
:21:56. > :21:58.is, given the competition. Earlier, we asked what she thought of
:21:59. > :22:03.Snapchat, whether you love it or have no idea what it is. Snapchat
:22:04. > :22:07.are hoping to disrupt social media in the way that Netflix wants to
:22:08. > :22:11.disrupt television. These are the views of some people in New York
:22:12. > :22:17.about Snapchat. I know what it is but I do not use it. When I see
:22:18. > :22:22.something, I snap it. I have it but don't use it. I use it everyday. My
:22:23. > :22:26.kids use it. I'm not the right demographic! I use it all the time,
:22:27. > :22:34.it's great. I don't know what it is, don't use it! This is what you been
:22:35. > :22:39.telling us, David, you are 60, and you say that you've just joined, and
:22:40. > :22:49.your wife has, so you can have fun with your grandkids.
:22:50. > :22:54.It's not just for youngsters. Good for you. Someone else says that they
:22:55. > :22:57.tried it for a few weeks but it was pointless. Sarah says that it was
:22:58. > :22:59.fun in the beginning but she does not know if it is cool any more!
:23:00. > :23:02.Someone else as that they are too addicted for their own good and it
:23:03. > :23:04.is taking over their lives! -- someone else says that. Let's
:23:05. > :23:12.reintroduce Alec Stewart, here to talk about more stories. Marissa
:23:13. > :23:16.Mayer, and Kodak. Yahoo has been sold to the rise, is that right?
:23:17. > :23:24.That has gone through. One of the problems is all live the stories
:23:25. > :23:28.about security breaches, numbers of accounts exposed to seems to be
:23:29. > :23:32.getting bigger every day and she will pay the price? Quite rightly
:23:33. > :23:36.so, data security is a massive issue. Would you have your details
:23:37. > :23:41.with somebody you feel you cannot trust? Data is very valuable to
:23:42. > :23:45.these companies. So you do not get a bonus. It is not just these data
:23:46. > :23:49.breaches but the reactions from the executives to it. They were so slow.
:23:50. > :23:56.It took so long for them to admit it. And we are still finding out.
:23:57. > :24:04.She will get a cut in future bonuses, and the lawyer is stepping
:24:05. > :24:08.down. Are we seeing accountability? Finally they are taking action. The
:24:09. > :24:14.buck stops at the top. To say that they did not know the depth of it is
:24:15. > :24:19.not good enough. Corporate governance. People have been calling
:24:20. > :24:23.for it for a long time. With events like this and bridges, there is some
:24:24. > :24:27.sort of call-back? Yes, it is not just the banking sector that needs
:24:28. > :24:31.to be accountable. We talked about technology and new developer and is
:24:32. > :24:35.on the programme today. Virtual reality is supposed to be the future
:24:36. > :24:41.but interestingly, we have numbers from Google today, it is cardboard
:24:42. > :24:45.virtual reality sets that have been a big hit. Probably because they are
:24:46. > :24:50.cheap! A bit of a 70s throwback! LAUGHTER
:24:51. > :24:54.I would imagine it is the money more than the 70s throwback! What do you
:24:55. > :25:03.think about virtual reality, have you had a go? Not yet, no. It is a
:25:04. > :25:06.big trend. These cardboard ones, they want people talking about these
:25:07. > :25:15.things and so people talk about and by the new expensive ones. Clip onto
:25:16. > :25:19.a mobile phone, you can see a 360 degrees view of your photos. They
:25:20. > :25:23.are hoping it would be a gateway to the more expensive motion sensor
:25:24. > :25:28.virtual reality headset? Yes, I think it is so people have a taste
:25:29. > :25:32.for it and have that full on experience. They have been really
:25:33. > :25:36.successful. It would be interesting to see if we have virtual reality in
:25:37. > :25:42.the cities of the future, as we spoke earlier about with the
:25:43. > :25:49.property show in Cannes, thank you for coming in.
:25:50. > :25:52.And thank you for your company. We are back tomorrow, so we will see
:25:53. > :25:56.you then. More business news throughout the
:25:57. > :26:00.day on the BBC Live web page. Goodbye.