11/08/2017 World Business Report


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11/08/2017

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The tainted eggs scandal that began in the Netherlands has spread

:00:00.:00:00.

20 tonnes have been sold in Denmark.

:00:07.:00:09.

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

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More troubles for the founder and former boss of Uber.

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Now Travis Kalanick is slapped with a lawsuit for fraud.

:00:21.:00:28.

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

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

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

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

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

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horrible 2017 continues. In June its co-founder,

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Travis Kalanick, was ousted as chief executive after a series

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

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

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

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

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

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

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

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

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

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

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

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Francisco. Shares in Snap, the company that

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

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disappointed investors. Snapchat launched in 2012

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

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within seconds, and has gone on to become a big

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hit with millennials. Snap said the number

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of daily active users, the measure the markets

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

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compared with the first three a service on the Instagram platform

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that closely resembles Snapchat - Revenues at Snap almost doubled

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

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

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

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on the markets since it went public in March with blockbuster

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valuation of $28 billion. These results came out

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

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

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

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These are some disappointing results. Particularly its active

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

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

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

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

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

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

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

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

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

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

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

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innovation within Snapchat, offering different devices and technology to

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

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difficult spot. They have demonstrated over the last four or

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

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

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quickly and effectively, by Instagram in particular. They need

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

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

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

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

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

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

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

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

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

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

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Weston. -- for joining. Babies are big business

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

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for their child has In the US that's fuelled

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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babycare companies seem to be child's play.

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

:08:37.:08:47.

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

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on Facebook or whatever platform you choose..

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

:09:07.:09:10.

money-laundering accusations against Commonwealth Bank.

:09:11.:09:11.

The chairman of the country's Securities and Investment Commission

:09:12.:09:13.

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

:09:14.:09:15.

Australia's treasurer described the latest scandal engulfing

:09:16.:09:18.

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

:09:19.:09:21.

Cyberspace administration of China accuses certain sites of failing to

:09:22.:09:27.

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

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

:09:37.:09:41.

with the financial markets now. The standoff between the US

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

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instead investors are piling into perceived safe

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

:09:51.:09:55.

put a bit of pressure on the Nikkei feeling the effects

:09:56.:09:59.

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

:10:00.:10:15.

and S 500 suffered their biggest

:10:16.:10:20.