:00:00. > :00:00.This is Business Live from BBC News with Susannah Streeter
:00:07. > :00:15.Snap, crackle and pop - the bubble looks to have
:00:16. > :00:17.well and truly burst for Snapchat's parent company.
:00:18. > :00:19.Shares plunge on bigger than expected loss.
:00:20. > :00:36.Live from London, that's our top story on Friday August 11th.
:00:37. > :00:41.Snap shares plunge by close to 17% as losses mount.
:00:42. > :00:44.We'll be discussing what's gone wrong for the company that was once
:00:45. > :00:50.From one troubled tech firm to another - Uber's ousted boss
:00:51. > :00:53.Travis Kalanick has been sued for fraud by one of the company's
:00:54. > :01:05.Also the latest on the European financial markets, cannot see
:01:06. > :01:09.exactly what is happening at the moment but stocks have opened more
:01:10. > :01:13.low following losses in Asia and the US as the war of words between
:01:14. > :01:20.America and North Korea rattles investors. And we will talk about
:01:21. > :01:32.the Google diversity road, the founder of Uber being sued. And as
:01:33. > :01:37.tourists in Spain face a backlash from locals protest against tourism
:01:38. > :01:39.we want to know have you ever faced hostility on your holidays from the
:01:40. > :01:46.locals? Snapchat is the disappearing
:01:47. > :01:53.messaging service that just keeps Its parent company Snap has
:01:54. > :01:59.seen its share price sink like a stone in after-hours trading
:02:00. > :02:03.as it reported widening losses. Snapchat launched in 2012
:02:04. > :02:05.as a mobile app that allows users to send photos that
:02:06. > :02:09.vanish within seconds. It's been a big hit with millennials
:02:10. > :02:13.but has never made a profit. Perhaps the most keenly-watched
:02:14. > :02:16.number by investors is the number That rose to 173 million -
:02:17. > :02:23.up only 4% compared with the first Compare that with Instagram Stories,
:02:24. > :02:28.a service on the Instagram platform Revenues at Snap almost doubled
:02:29. > :02:39.for the quarter to $181.7 million, which seems positive but is also
:02:40. > :02:41.lower than analysts The tech firm lost close to half
:02:42. > :02:48.a billion dollars in the quarter, and investors will be very aware
:02:49. > :02:54.that that's just not sustainable. Today's results came out
:02:55. > :02:57.after the closing bell but the company has had a rough ride
:02:58. > :03:00.on the markets since it went public in March,
:03:01. > :03:02.with blockbuster valuation It's not shown on this
:03:03. > :03:08.graph but in after-hours, trading shares were down by close
:03:09. > :03:14.to 17%. Simon Collister specialises
:03:15. > :03:15.in digital communications at the marketing firm Blackbook
:03:16. > :03:29.London. Which of those numbers should we be
:03:30. > :03:33.paying attention to, the user numbers, profits, revenues? It
:03:34. > :03:36.depends who you asked, a lot of the focus has been on daily active
:03:37. > :03:39.users, the number of people interacting with the platform on a
:03:40. > :03:48.daily basis and whilst there has been growth, it's clearly not good
:03:49. > :03:55.enough. But if you asked the founder and CEO of the platform he is keen
:03:56. > :03:59.to point investors away from that, saying there is too much focus on
:04:00. > :04:04.that and we should look at the engagement rates. And what are they
:04:05. > :04:11.doing? They are looking quite impressive. What are they? How
:04:12. > :04:16.people spend on the platform on a daily basis? It is a beacon of light
:04:17. > :04:21.in terms of the results. Numbers of up to 40 minutes per day. That is
:04:22. > :04:25.important to him because the longer they spend on it the more they pay
:04:26. > :04:32.attention to advertising which means it's more attractive to advertisers.
:04:33. > :04:36.That is a key point he is making, Facebook have an average time of
:04:37. > :04:40.engagement of 20 minutes a day so this is double. And it's a much
:04:41. > :04:45.younger demographic. They have always believed they can grow
:04:46. > :04:52.revenue from the existing user base. But investors want a faster return
:04:53. > :04:57.given the huge valuation. Yeah, that's where they are going to find
:04:58. > :05:01.themselves in a difficult situation. They have been reluctant to
:05:02. > :05:08.entertain ideas of quick growth, growth hacking as it is known in
:05:09. > :05:14.marketing circles. Allowing users to add their own network, and they have
:05:15. > :05:20.been against and that as they think it would compromise integrity. One
:05:21. > :05:25.good idea seems to be fantastic then it runs out of steam and other
:05:26. > :05:30.people copy it as well, look at Instagram. Yes and that's going to
:05:31. > :05:35.be a challenge. The opening valuation was always based on the
:05:36. > :05:38.idea they could out innovate Facebook, but Facebook were very
:05:39. > :05:43.quick at copying what they had done. It's about how they can innovate
:05:44. > :05:50.which will keep them ahead. And if they do not will they get snapped
:05:51. > :05:52.up? CHUCKLES That is the big question, there were
:05:53. > :05:57.rumours Google was interest last year and it seemed like an ice pick,
:05:58. > :06:04.Google has always struggled to build its own mobile social network. Thank
:06:05. > :06:09.you so much Simon. Europe's egg safety scare has led
:06:10. > :06:12.the European Union Commissioner in charge of food safety to call
:06:13. > :06:15.an urgent meeting of ministers Vytenis Andriukaitis has also called
:06:16. > :06:21.on Belgium and the Netherlands to stop blaming each other
:06:22. > :06:23.for the problems. Millions of eggs have been pulled
:06:24. > :06:26.from European supermarket shelves over fears they contain
:06:27. > :06:30.a banned insecticide. Google's parent company Alphabet has
:06:31. > :06:34.cancelled a company-wide meeting to discuss a controversial memo
:06:35. > :06:38.on gender diversity. The firm said there were concerns
:06:39. > :06:42.some staff might be attacked Earlier this week the male software
:06:43. > :06:49.engineer who wrote the memo was sacked for arguing the lack
:06:50. > :06:52.of women in top tech jobs was due to biological differences
:06:53. > :06:56.between men and women. Australia's financial regulator says
:06:57. > :06:59.it's opened its own inquiry into accusations of money laundering
:07:00. > :07:01.against Commonwealth The regulator's chairman said
:07:02. > :07:06.the country expected better The bank has said a computer coding
:07:07. > :07:13.error was behind more than 50,000 alleged breaches which could cost it
:07:14. > :07:20.billions in fines. Let's go to China where
:07:21. > :07:22.the country's largest social media platforms -
:07:23. > :07:24.Weibo, WeChat and Baidu Tieba - are under investigation for alleged
:07:25. > :07:27.violations of cyber security laws. Our correspondent John Sudworth
:07:28. > :07:46.is in Beijing and he's been What are the accused of doing? These
:07:47. > :07:50.are amongst the most powerful social media platforms in the world, each
:07:51. > :07:59.of them used by hundreds of millions of people here in China and beyond
:08:00. > :08:03.and the cyberspace administration of China has issued this directive
:08:04. > :08:06.today saying they are now under investigation and the concern seems
:08:07. > :08:12.to be the idea that some of the content, some of the charts and
:08:13. > :08:15.messages and material being shared in danger as national security and
:08:16. > :08:23.the cyberspace Administration points to things like spreading false
:08:24. > :08:27.rumours, issues related to terrorism, concern about the content
:08:28. > :08:33.there as well as pornography and a general sense that these platforms
:08:34. > :08:39.are harmful to China's maintenance of political stability and order.
:08:40. > :08:43.They are already very, very heavily monitored and censored but I think
:08:44. > :08:48.this sends a message particularly at this moment in time just a few
:08:49. > :08:51.months away from an important Communist Party congress, we have
:08:52. > :08:57.seen a tightening of Internet controls in other areas and I think
:08:58. > :09:01.a lot of people are reading this as sending a strong message that they
:09:02. > :09:06.need to get the houses in order and get much better at policing
:09:07. > :09:12.themselves. The signal is much more censorship and control to come.
:09:13. > :09:14.Thanks very much. We'll keep an eye on that.
:09:15. > :09:16.The standoff between the US and North Korea has been
:09:17. > :09:22.Appetite for risky assets is low - instead investors are piling
:09:23. > :09:27.into perceived safe haven assets like gold - the swiss
:09:28. > :09:29.franc and the yen and that's put a bit of pressure
:09:30. > :09:33.up reasonably well - but other indices in asia also felt
:09:34. > :09:50.stocks suffered their biggest losses in nearly three months -
:09:51. > :09:52.with around $30 billion wiped off the value of US blue chip
:09:53. > :09:57.One firm that's hoping to be on wall street in the not too
:09:58. > :09:58.distant future is Ride sharing giant Uber.
:09:59. > :10:01.In June its co-founder, Travis Kalanick, was ousted as chief
:10:02. > :10:03.executive after a series of scandals hit the company.
:10:04. > :10:06.He is now being sued for fraud by one of their biggest investors.
:10:07. > :10:08.Dave Lee is in San Francisco with the details.
:10:09. > :10:13.When Travis Kalanick was forced out as Chief Executive of Uber he kept a
:10:14. > :10:15.seat on the company 's board and a 10% stake in the farm but since then
:10:16. > :10:20.it has alleged he has been concocting a plan to get his title
:10:21. > :10:25.back. He reportedly told close allies he was Steve Jobs it, a
:10:26. > :10:28.reference to the Apple founder who was forced out of the farm only to
:10:29. > :10:34.triumphantly return more than a decade later, this alleges Travis
:10:35. > :10:39.Kalanick fraudulently expanded the board to fill out with allies to
:10:40. > :10:43.make such a return possible. Benchmark capital said it would not
:10:44. > :10:49.have agreed to more board seats if it had known Travis Kalanick's
:10:50. > :10:52.plans. If successful this legal action could see Travis Kalanick
:10:53. > :10:55.kicked out of the company he helped build.
:10:56. > :10:57.Simon Derrick, Chief Markets Strategist at the Bank
:10:58. > :11:11.Have to talk about a country we do not normally talk about, North
:11:12. > :11:15.Korea. The influence the geopolitical tensions have on the
:11:16. > :11:19.markets, it's been rather slow in coming, nobody really paid attention
:11:20. > :11:25.to this until about three days ago. And that is the interesting thing,
:11:26. > :11:31.the markets not been that sensitive, I think monetary policy joined
:11:32. > :11:36.everything out but over the course of last 18 months we have had no
:11:37. > :11:41.consensus events happening, things like the election in the US, the
:11:42. > :11:44.Brexit vote here, market suddenly becoming rather more sensitive and I
:11:45. > :11:49.think this will prove to be another one of those and at the moment the
:11:50. > :11:56.market is waking up to the fact that perhaps this is a rather different
:11:57. > :12:01.kind of red like -- rhetoric. It is hard to read directorate coming from
:12:02. > :12:05.the Trump administration, the Defence Secretary saying one thing
:12:06. > :12:11.and President Trump seeing a much more hardline stance. And that is
:12:12. > :12:18.the thing, this is taking place in August which is traditionally thin,
:12:19. > :12:27.it can be more volatile, some of the larger moves taking place in August.
:12:28. > :12:30.The risk is the market, with that uncertainty starts to take an
:12:31. > :12:36.increasingly risk averse tone and I think that's going to be an issue
:12:37. > :12:42.going into next week. Briefly on one company, some results from News
:12:43. > :12:49.Corp, it showed a fall in their print advertising income. Yeah, that
:12:50. > :12:53.move away, remember of course, one of the key newspapers within UK was
:12:54. > :13:02.the content for Facebook,
:13:03. > :13:08.our Technology Correspondent Rory Cellan-Jones will chart a path
:13:09. > :13:11.through all the big tech stories You're with Business
:13:12. > :13:27.Live from BBC News. A flight delay is one
:13:28. > :13:29.of the worst possible Well, according to new BBC research,
:13:30. > :13:33.air passengers using Gatwick Airport and flying on EasyJet have suffered
:13:34. > :13:36.the longest average delays Kevin Peachey is in our
:13:37. > :13:48.business newsroom. you have been looking at these
:13:49. > :13:53.figures, what more do they tell us? You could have been unlucky and got
:13:54. > :13:56.a flight from London to New York on a particular airline with average
:13:57. > :14:01.delays of an hour and a half but overall it is Gatwick that you
:14:02. > :14:06.mentioned with the worst average delays, 27 minutes on average and
:14:07. > :14:11.for the airlines it is easyJet, 24 minutes average delay. There are
:14:12. > :14:17.others, British Airways, Thomson, they also have delays of more than
:14:18. > :14:20.15 minutes. These are figures from the last two Summers and past
:14:21. > :14:28.performance does not necessarily mean it will be the same, but if you
:14:29. > :14:32.look at the calculator on the BBC News website over past delays if it
:14:33. > :14:37.has a record it might be worth packing an extra book or downloading
:14:38. > :14:43.some cartoons for the kids. Is this way can gauge which airports and
:14:44. > :14:46.airline to use? Yes, past performance is only a guide of
:14:47. > :14:51.course but airlines and airports will say there are things beyond
:14:52. > :14:56.their control, strikes and congestion in the skies and there is
:14:57. > :15:00.a broader point over airport capacity and our demand for cheaper
:15:01. > :15:04.flights and clearly there needs to be a quick turnaround for these
:15:05. > :15:06.flights to keep the costs down and that leaves them more prone to
:15:07. > :15:21.delays. Thank you Kevin. A story from The Today Programme
:15:22. > :15:26.which interviewed the former aide to the Brexit Secretary David Davis. He
:15:27. > :15:31.said on that programme the voters had been, quote, sold a pack of
:15:32. > :15:35.lies. Mr Chapman added, my view is that the Conservative Party brand
:15:36. > :15:38.has now been damaged to such an extent that it will never again get
:15:39. > :15:43.a majority. He said the hard Brexit plan will
:15:44. > :15:47.make Black Wednesday look like a picnic. There is lots more you can
:15:48. > :15:52.read about on the BBC News website about the impact of Brexit. Or the
:15:53. > :15:56.perceived impact of Brexit. He has had lots of coverage over
:15:57. > :16:00.last couple of days, done several interviews saying the same thing.
:16:01. > :16:06.You can read that on the BBC website, as we say.
:16:07. > :16:07.You're watching Business Live - our top story:
:16:08. > :16:11.There's been another sharp fall in the value of shares in the social
:16:12. > :16:14.At one stage they slumped nearly 17 percent, after Snap reported
:16:15. > :16:24.more than $400 million in quarterly losses.
:16:25. > :16:27.The former Uber chief executive has been making headlines.
:16:28. > :16:29.Google's been embroiled in a big row about gender
:16:30. > :16:33.Meanwhile Facebook is launching a new video service and Netflix
:16:34. > :16:35.and Disney have parted company over access to videos.
:16:36. > :16:37.Lots to talk about. So much going on.
:16:38. > :16:41.Our Technology Correspondent is Rory Cellan-Jones.
:16:42. > :16:51.I would like to ask you for your take on Uber, the latest twist and
:16:52. > :16:54.turn Uber story. What an extraordinary story. I can think of
:16:55. > :16:59.a previous occasion where a venture capital backer of a major company
:17:00. > :17:05.has got into a mud fight with that company, or at least its founder,
:17:06. > :17:10.while still being a major backer. Benchmark Capital, one of the big
:17:11. > :17:15.names in Silicon Valley, basically accusing Travis Kalanick of all
:17:16. > :17:19.sorts of misdeeds, unhappy with the culture he has created at the
:17:20. > :17:22.company, unhappy with the idea that he will still have influence. What
:17:23. > :17:28.have they been doing the last few years?! Have they suddenly woken up
:17:29. > :17:34.to what is going on?! Arianna Huffington has been brought onto
:17:35. > :17:38.board. There has been a huge weight of money coming behind this company,
:17:39. > :17:44.an extraordinary amount of backing, $8 billion or so, and you would have
:17:45. > :17:48.thought that people putting that money bind the company would have
:17:49. > :17:55.asked a few questions a bit earlier. Moving onto Facebook, Disney pulling
:17:56. > :18:01.out of Netflix, starting its own streaming. Is this part of a general
:18:02. > :18:06.trend? Another fascinating week in the ongoing battle between new and
:18:07. > :18:09.old media, in a way. We know about Netflix making huge strides, we know
:18:10. > :18:16.about Amazon Prime video signing up lots of people for OnDemand video.
:18:17. > :18:22.Facebooked, there is already a lot of video out there, making a
:18:23. > :18:25.determined pitch that they will be a place for original content.
:18:26. > :18:29.Facebooked, funnily enough, the company said we are not a media
:18:30. > :18:32.company, we don't need to be regulated like a media company, now
:18:33. > :18:37.they are saying they will have original content which they will
:18:38. > :18:43.commission. Treading on Netflix's toes? Yes, taking on YouTube, they
:18:44. > :18:46.will reward people in the same way that you tubers get rewarded, they
:18:47. > :18:53.will give them a share of advertising. A big battle going on.
:18:54. > :18:58.The other development this week is Disney, you could count that as an
:18:59. > :19:02.old media company, waking up to the fact it has been giving away its
:19:03. > :19:06.contents, or at least rewarding a new platform with its content,
:19:07. > :19:11.Netflix, saying we will take that off and do it ourselves. About how
:19:12. > :19:18.will they do that? They said they would set their own platform? There
:19:19. > :19:25.are already various Disney Digital platforms which have not made a huge
:19:26. > :19:32.splash, this is the dilemma for a lot of old media companies. We are
:19:33. > :19:37.all putting our content is old media companies on Facebook, including the
:19:38. > :19:42.BBC. A great way to access new audiences. But we are watching as
:19:43. > :19:47.they take the profits under control. Is there a problem for Netflix, the
:19:48. > :19:51.fact it will not be working with Disney any more, all is Netflix too
:19:52. > :19:56.big for that? I think Netflix is already past that stage. It has been
:19:57. > :20:00.an incredibly bold company. When they first said they would spend
:20:01. > :20:06.hundreds of millions of dollars, billions of dollars, on making their
:20:07. > :20:08.own content as well as buying it in, everybody thought it was a bit
:20:09. > :20:13.bonkers, it has turned out to be a pretty wise move. Google, there was
:20:14. > :20:19.a big meeting to be held about gender diversity but it seems like
:20:20. > :20:25.it has been cancelled. What is the update? Extraordinary upheaval over
:20:26. > :20:30.this week. It is a mark of how big a crisis it has been for Google that
:20:31. > :20:34.when this memo we merged questioning their diversity policy, the chief
:20:35. > :20:39.executive broke off his holiday, came back and said we would have a
:20:40. > :20:42.big meeting on Friday, he has cancelled bats because there has
:20:43. > :20:47.been a huge backlash, which is quite scary to people inside Google, with
:20:48. > :20:55.pictures and details of people published online on Conservative
:20:56. > :20:59.websites. There is a mood of extreme disquiet within Google that they
:21:00. > :21:03.will be caught up in a sort of culture war and people are feeling
:21:04. > :21:06.pretty vulnerable. I gather he was so keen to make the point that
:21:07. > :21:11.immediately after the meeting was cancelled he went to a coding course
:21:12. > :21:15.and was talking to girls, a coding course specifically for girls and
:21:16. > :21:20.saying we need you to come into the industry. I think it is part of this
:21:21. > :21:26.attempt to undo this image that Silicon Valley has of being sexist?
:21:27. > :21:31.Talking about it Uber has had all sorts of issues with its treatment
:21:32. > :21:37.of female staff. Google has wanted to get ahead of that, knows it has
:21:38. > :21:41.an issue, has put in all these diversity programmes, that is what
:21:42. > :21:44.this engineer who was sacked was objecting to, the extent of the
:21:45. > :21:49.diversity programmes. And I think the Chief Executive was good --
:21:50. > :21:54.doubling down and saying we will carry on. While still trying to say
:21:55. > :21:55.we have free speech in the company, a tricky balance.
:21:56. > :21:57.Thank you, Rory, as usual. And you can hear more
:21:58. > :22:00.about the latest from the tech world with Rory on his Tech Tent programme
:22:01. > :22:03.on BBC World Service radio at 14:00 GMT today
:22:04. > :22:06.which is 15:00 here in the UK. And if you miss it you can download
:22:07. > :22:14.the podcast via the BBC website. In a moment we'll take a look
:22:15. > :22:17.through the Business Pages but first here's a quick reminder of how
:22:18. > :22:30.to get in touch with us. The Business Live Pages Where You
:22:31. > :22:34.Can Stay Ahead With The Breaking Business News we will have insight
:22:35. > :22:38.and analysis from the BBC editors right around the world.
:22:39. > :22:51.We want to hear from you, get involved on the BBC Businesslike web
:22:52. > :22:54.page, on Twitter or Facebook. Business Live on TV and online,
:22:55. > :22:55.whenever you need to know. What other business
:22:56. > :22:57.stories has the media been Simon Derrick, Chief Markets
:22:58. > :23:08.Strategist, Bank of New York Mellon Let's talk about holidays, it is
:23:09. > :23:15.holiday time. There is a story on want a cheap holiday, to be saying
:23:16. > :23:20.Spain is too expensive, go to Bulgaria. What is interesting is
:23:21. > :23:24.there has been a rise of protests taking place in Spain are people
:23:25. > :23:30.essentially saying tourists seem to be taking over our cities, it should
:23:31. > :23:34.be rather more balanced, not just in Spain, Venice has a very similar
:23:35. > :23:39.movement taking place. On one hand you could look at this as being
:23:40. > :23:43.simply about the sheer success of these cities as tourist
:23:44. > :23:47.destinations, there is another side, which is there has been a recovery
:23:48. > :23:54.in Europe but it is perhaps a recovery that is only benefited...
:23:55. > :24:00.Surely it is also Tui trying to expand its market to Bulgaria? It is
:24:01. > :24:08.a great marketing move, nobody would argue that. Maybe we should do more
:24:09. > :24:13.of that in the UK. But I think it is a major thing that we are getting
:24:14. > :24:18.movements like this in place. It is part driven by how we have driven
:24:19. > :24:22.the recovery in Europe. This story has been picked by Bloomberg. They
:24:23. > :24:28.have statistics showing the managers are making the most of the recovery,
:24:29. > :24:32.it seems as if the recovery is not benefiting those workers and those
:24:33. > :24:35.people trying to find houses in Barcelona and some of the big
:24:36. > :24:41.Spanish cities, they are fed up with being squeezed out and not making
:24:42. > :24:45.the money? It is really a mark of how this recovery is different to
:24:46. > :24:53.ones we have seen in previous decades. Feels as though there has
:24:54. > :24:55.been a real split between the relatively well-off who seem to have
:24:56. > :25:00.come back relatively well and relatively quickly, and those
:25:01. > :25:04.further down... Why is that? I think it is to do with what has been used
:25:05. > :25:10.to drive the recovery. A lot of that was due to the ultra-easy monetary
:25:11. > :25:17.policy, quantitative easing. That is great if you owned a house, shares,
:25:18. > :25:25.assets of any kind. Yes we have had one of the longest ones for a long
:25:26. > :25:28.time, it has been driven by easy monetary policy. If you had a
:25:29. > :25:33.pension or own day house he did very well, if you did not own those
:25:34. > :25:38.things you left stomach felt left behind. People trying to rent in big
:25:39. > :25:42.European cities in seeing tourists coming into Airbnb properties feel
:25:43. > :25:48.disgruntled? That is what you see behind these movements. In fairness,
:25:49. > :25:54.you suspect it will continue. The people who own the houses are making
:25:55. > :25:55.the money? That's it. Thank you. Thank you for joining us.
:25:56. > :26:00.There will be more business news throughout the day on the BBC Live
:26:01. > :26:02.web page and on World Business Report.