Transcripts For BBCNEWS World Business Report 20170302 : vim

Investors scramble for snapchat, in the biggest Tech Flotation since twitter. But is the app a Cash Cow Orjust a craze . Plus, coming up on netflix the boss tells us his plans for the Internet Tv Giant as it heads towards 100 million users. Welcome to World Business report. Im sally bundock. Also in the programme up up and away the us markets blast through previous record highs, the global rally is continuing in asia. Details in a moment. We start on wall street where investors are gearing up for what could be the biggest and certainly the most hyped Technology Flotation since twitter in back 2013 or even facebook the year before. In a few hours time shares in snap the owner of photo messaging app Snapchat Will Begin Trading on the new york stock exchange. The big question will it end up a Stock Market Giant like facebook or, like twitter, a bit of a flop . Heres what we know so far the flotation has been hugely oversubscribed there were as many as ten orders for every share. Thats allowed snapchat to up the price. Late on wednesday it priced its shares at 17 above the 14 to 16 range it had previously indicated. That will give the company an opening valuation of 24 billion. More than twice as much as twitter at its current share price. Thats despite a couple of major worries or so youd think for investors firstly, snapchat has yet to turn a profit. In fact it lost over half A Billion Dollars last year alone. Plus shareholders who buy in will not have any voting rights. The founders of the company will retain complete control of any decisions. They are incredibly young and, as of later today, officially incredibly rich. Evan spiegel and bobby murphy both in their 20s Will Be Worth around 4 billion each. From new york, heres samira hussain. Injust in just five years, snapchat has gone from a little at created by a couple of college kids to a virtual giant with 160 million daily activities users. 0n giant with 160 million daily activities users. On thursday it will start trading here on the new york stock exchanges. Why are investors so excited about a Company Valued at 20 billion but has yet to make a profit . They are hoping it will see the same success as Companies Like google or facebook. Of course, the worry is that they will end up looking more like twitter, companies that came with a lot of hype but not much chance. Twitter, companies that came with a lot of hype but not much chancem isa lot of hype but not much chancem is a new breed of social networking. It is not like facebook where there isa it is not like facebook where there is a big public wall with your family on there, it is not like twitter broadcasting to the whole world. If you are of a child com pletely world. If you are of a child completely at the did to this product you might very well see it has a future. I did not use it. I haveit has a future. I did not use it. I have it but i do not use it. I use it every day. My kids use it. |j have it but i do not use it. I use it every day. My kids use it. I use it every day. My kids use it. I use it all the time. I do not know what it all the time. I do not know what it is and i did not use it. Snapchat is the talk of wall street even though it is geared towards teenagers but that is the key towards its success. If it cannot attract its young users, it risks becoming Just Another Tech Company that group two big too fast. James erskine is director of the social Media Consultancy social circle. We have arrived after so much hype. There are questions about this company and its future. What is your take . We will be talking about this company as a Great Success . M take . We will be talking about this company as a Great Success . It is closer to facebook than twitter 160 million users daily sounds like an awful lot. The rat stakeholders, the users, they know it is a photo and Video Sharing Social Network and thatis Video Sharing Social Network and that is exciting. A bit of disconnect between them and the investors. Investors are kind of uninsured. It was rendered as a Camera Company in 2016. That to me sounds quite this are, at the moment it is saying they have more stuff coming and new toys coming in the future . Similar perhaps the google glasses, real world products hard to get hold of. You sense that there are other things coming soon which will plan into a master, eager plan, perhaps. It does have advertising on the app. And is generating much income . About 90 generated comes from advertising. As part of your business, we look at different influences and how they engaged with Different Social Networks and what Snapchat Needs is to look at its products, it needs scalability and bigger brands. It needs to sort of shift in the way facebook has in terms of getting many in from the advertisers. It has the people who use it, and it is the people advertisers want to grab hold of the millennial is. My thought is it is about content. What content is on snapchat that uses cannot find elsewhere. Fascinating. Thank you for coming in this morning and sharing your thoughts on snapchat. The big event takes place later today and we will be all over it and thenit today and we will be all over it and then it will disappear. No, it wont. We are also looking at netflix the internet Tv Streaming Service has been growing fast and is on track to hit 100 million subscribers. But its facing growing competition from other companies trying to get in on the act. Co founder and Ceo Reed Hastings has been speaking to our Technology Correspondent Rory Cellan Jones at the mobile World Congress which is under way in barcelona. It is just starting, we are getting more viewing on mobile and doing well on television but the key thing is being able to binge view and watch whenever you want. You need to keep adding these subscriber numbers, how will you continue because there must be a limit to the number of people who want to pay that much monthly . You chip have Just Announced they are doing a billion hours of viewing a day so considerably more than netflix so there is lots of room to grow. But thatis there is lots of room to grow. But that is for free, youtube. We will continue to invest in a great shows and people who will want to subscribe now 100 billion paying members. The big issue has been neutrality of net. You do not want that to be charged from other kinds of traffic. What are the prospects 110w of traffic. What are the prospects now that we have a Trump Administration that is not seem friendly to that . Net neutrality has taken around friendly to that . Net neutrality has ta ken around the friendly to that . Net neutrality has taken around the world as an assumption about the way the internet should work. There are a lot of countries that do not have a law but we still operate very much along those principles. What would your message to trump the . along those principles. What would your message to trump the . I think Net Neutrality is important so none of the voices are censored and there is inequality around. Facebook seems interested in doing a lot more video. That would be quite a danger to you . And there is youtube read which is a subscription service, potentially apple, amazon on, a lot of competition, rate for the consumer and challenging fort netflix but there is also a lot of room to grow. But we challenge and also excitement. The dowjones the dow jones closes the dowjones closes above 21,000. It makes this the fastest rise since 1999. Shares in banks have been climbing since president trumps election victory. He has promised to cut regulation on wall street as well as reducing taxes and implementing infrastructure programmes. You implementing infrastructure programmes. You can implementing infrastructure programmes. You can see the price of oil has fallen as well. A weaker yen is also helping. Rates rise possible in march and many believe it is feeling these numbers. When will it end . We will see you soon. Mps say that the governments delayed 25 year plan for improving englands natural spaces should be published immediately. The government promised in its manifesto that it would restore damaged Wildlife Habitats and leave them in a better state than before, but mps want to see how they propose to do it. 0ur Environment Analyst Roger Harrabin reports to the west of manchester, a landscape devastated by Digging Fork Pete to make garden compost. So Many Wildlife site degraded in england and the governments pledged to improve them. Here is one wei hao row upon row of tiny plants being nurtured in a poly tunnel. Planted out, they are helping to recreate a blog that attracts wildlife and stores carbon. And what about this . Meadows used to be a common delight, now more than 90 are lost stop the government has promised to safeguard them but its Nature Protection Policy is longer delayed. People in this country love for their natural environment. Green spaces in our city, the seaside, the rivers, the forests a nd city, the seaside, the rivers, the forests and they are in decline and we need to see ambitious Government Action to reverse that. Patients is running out. Wildlife around the seed should be enhanced by the major strategy and these Have Nowjoined The Chorus to demand it be published for all to see. Coming up at six on breakfast Charlie And Louise will have all the days news, business and sport. Theyll also have more on the Potentially Perilous state of policing in england and wales. Her majestys inspectorate of constabulary says a third of forces require improvement and some are putting the public at risk by rationing services. You are watching bbc world news. The top stories calls Forjeff Sessions top stories calls Forjeff Sessions to resign amid allegations he did not disclose talks he had with the Russian Ambassador during the election campaign. A formal investigation will separately be started on collusion between russia and the campaign. Francois fillon has more problems with an investigation into more fraud. So allegations of Potential Collusion between Donald Trumps Residential Campaign and the russian president. They coming through thick and fast. We have been less from the Waddington Post website. The online page here, in fact, you properly cannot see closely enough. Every single story there is about Donald Trumps presidency. This particular wonder we are following, jeff sessions, the attorney general, saying that he never had any dealings with any russian officials dreaded president ial campaign. It has turned out, apparently, he did. So did he lie under oath . The guardian says that british Prime Minister theresa may is defiant on brexit and plans to overturn a demand by the upper house of parliament to guarantee the rights of eu citizens living in the uk after britain leaves the eu. Snap, the company that owns snapchat has been valued at 24 billion, despite having never made a profit. That article is on the bbc news website and says the companys listing on the us stock market will turn its founders into billionaires. The times reports on Stock Markets hitting record highs following president trumps speech to congress after he pledged