11/08/2017 World Business Report

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The tainted eggs scandal that began in the Netherlands has spread


20 tonnes have been sold in Denmark.


Susannah Streeter is here. It is time to World Business Report.


More troubles for the founder and former boss of Uber.


Now Travis Kalanick is slapped with a lawsuit for fraud.


Shares of the owner of Snapchat plunged 14% after the social media


firm reported more than $400m in quarterly losses and fewer


Hello and welcome to World Business Report. My name is Susannah


Streeter. In a minute we'll look at the very


expensive business of having a baby. ride-sharing giant Uber's


horrible 2017 continues. In June its co-founder,


Travis Kalanick, was ousted as chief executive after a series


of scandals hit the company. He is now being sued for fraud


by one of their biggest investors. When Travis Kalanick was forced out


as chief executive of Uber, he kept a seat on the company's board, and


also a 10% stake in the firm. But since then, it is alleged that he


has been concocting a plan to get his seat back. He told allies that


he was doing what Steve Jobs did, having left only to front and the


return to Apple. It is said that he fraudulently expanded the board to


make such a return possible to him. Benchmark Capital said it would not


have agreed to more board seats if it knew Travis Kalanick's plans. If


successful, it could seek Travis Kalanick kicked out of the company


that he helped build into what it is today. Dave Lee, BBC News, San


Francisco. Shares in Snap, the company that


runs Snapchat, have fallen again after its latest set of results


disappointed investors. Snapchat launched in 2012


as a mobile app that allows users to send photos that vanish


within seconds, and has gone on to become a big


hit with millennials. Snap said the number


of daily active users, the measure the markets


are most interested in, rose by 4% to 173 million,


compared with the first three a service on the Instagram platform


that closely resembles Snapchat - Revenues at Snap almost doubled


for the quarter to $181.7 million, which was lower than what analysts


had been forecasting. The tech firm made a loss of $443.1


million, which was quite The company has had a rough ride


on the markets since it went public in March with blockbuster


valuation of $28 billion. These results came out


after the closing bell in the US but in after-hours trading


shares were down by 14%. With me is Mike Weston,


Founder of marketing agency Hello. Thank you for coming in.


These are some disappointing results. Particularly its active


daily users number. Yes. It is clear that the growth in daily active


users has slowed down from where I was 12 months ago. What is


disappointing is that here is a category that Snap invented, and


they are being outplayed by, as you say, Instagram and Facebook with


WhatsApp. It does show that a very successful company, which are


undoubtedly Snap is in terms of its attraction to millennials, those


younger users that the tech firms are desperate to attack. They are


still faced with the might of Facebook and it is difficult to


grain down, is that? -- difficult to gain ground, isn't it? Yes, the


advertising market is not there that they need to bring the losses down.


But the active users are still growing. And there is a lot of


innovation within Snapchat, offering different devices and technology to


attract users. What do you forecast for the company? They are in a


difficult spot. They have demonstrated over the last four or


five years that they are capable of innovating quickly and effectively.


The problem they have is that everything they do get copied very


quickly and effectively, by Instagram in particular. They need


to up the anti-in innovation stakes. -- ante in. We have yet to see what


Snap could be of the pullout of the back to rescue their fortunes at


this point. Facebook seems to have a stranglehold on the market, don't


they? It shows how difficult it is for disrupters to come in and


disrupt, not just in this realm, but in other rounds in the tech sector.


For instance, as on, every competitor finds it hard to break


through. Is interesting to see what happens with us on an debt messaging


platform, which has been spoken about over the last few weeks. --


Amazon and their messaging. Their number of active users are not


trivial, but it is just not enough. Thank you very much to join us, Mike


Weston. -- for joining. Babies are big business


and an increasing number of parents think that what's best


for their child has In the US that's fuelled


by a growing premium market, as parents blow budgets to make sure


they have the get hold of luxury brands, as Michelle Fleury


reports from New York. When we were growing up, we never


had all of these options. I never even had a car seat. Shopping for a


baby is not would be used to be. Meet us, women would come down and


see the stroller pitch, and they were start crying, because there are


so many options. There is an explosion of choice. Just takes


rollers. It is an easy fold. This man, also known as the Baby Guy, is


an expert on the gear. There were two reverse investment, spending


more money in the Cribbin the mattress. To him, the current trend


started with the bugaboo stroller. They were the start. They cannot


with this great stroller, and others had to step up their game. --


Bugaboo stroller. And that trickle-down into other categories.


In America, women are waiting longer to have children. By then, they


often have more disposable income. And the industry is growing fast to


cater to them. This year, the global market for babycare products is


expected to reach $66.8 billion. For all the cuteness, this is a


billion-dollar industry, with baby companies focused on trying to


figure out how to get expectant parents to spend more. And the


choices can be world in -- and Jones can be the world are in. These


parents to to know just how well how daunting it can be. It was an upper


tier of product available, which is aimed at people who are very


wealthy. It is easy to get wrapped up in it. It is very expensive. You


can get so caught up in it, especially on Instagram, when you


look at the Pavic lies some of these families have. They always


beautiful, and their homes are so wonderful, and they have so many


perfect baby items, so you think you need certain things. Take every


parent's desire to get the best for their kids, filled with the classic


key consumer desire to keep up with the Joneses and big profits for the


babycare companies seem to be child's play.


What do you think? Please join in on the conversation online. How much is


enough to spend on your new baby? Let us know your thoughts.


on Facebook or whatever platform you choose..


In other news, corporate regulators in Australia say they're reviewing


money-laundering accusations against Commonwealth Bank.


The chairman of the country's Securities and Investment Commission


told parliament this morning that they're looking into whether other


Australia's treasurer described the latest scandal engulfing


the country's biggest bank as "an epic fail" and "incredibly


Cyberspace administration of China accuses certain sites of failing to


remove violent and obscene content, as was terrorism content and fake


news. This includes sites such as we chat and we bow. That's check in


with the financial markets now. The standoff between the US


and North Korea has been Appetite for risky assets is low -


instead investors are piling into perceived safe


haven assets like gold, the Swiss franc, and the yen that's


put a bit of pressure on the Nikkei feeling the effects


of the sabre-rattling on wall street - Dow Jones,


and S 500 suffered their biggest