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tv   BBC Business Live  BBC News  April 18, 2019 8:30am-9:01am BST

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this is business live from bbc news with ben bland and victoria fritz. heading to market — the image sharing site pinterest makes its stock market debut in new york today. butjust when will it start making money? that's our top story today, on thursday 18th of april. the company debuts with a valuation of more than $12billion — despite it losing money hand over fist. we'll find out what this means for pinterest — and other tech stock market launches. also in the programme ...grounded! india's jet airways suspends
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all its flights after failing to find new funding. we'll be in mumbai for the latest. the stock markets in europe have opened, the footsie pretty flat down about two points at the moment. exclusively female: we'll meet the founder of a women—only members club in central london — and find out how she's planning to expand. today in the news... from mid july, the uk becomes the first country in the world to make porn websites verify the age of uk visitors to their pages — or face being blocked. it's to try and stop under 18s viewing the material. let us know your thoughts. just use the hashtag bbcbizlive welcome to the programme. we start with some corporate news — shares in the image—sharing app pinterest will start trading in the us later today. it's the latest in a whole line of tech companies coming
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to market this year. the ipo price of $19 per share values the online scrapbooking company at $12.7 billion. more than expected. last year it generated revenues of $756m — a leap of 60%. but like many of its tech contemporaries it's a long way from profitable. in fact it lost $63m last year — although that's half the amount it lost the previous year. so things seem to be heading in the right direction. the company is busily enticing new users — it added 51 million last year alone, 45 million of those from outside the us. it now has 265 million active monthly users — a figure that's bound
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to interest investors. with us now is dubose cole, director of strategy at vaynermedia when investors look at those numbers, various figures into the millions, none of that is profit so how did they make this a moneymaking app? it's a great question. considering platforms like this, what they are doing is capturing and providing access to consumer attention and i think the interesting thing about interest, especially from an advertiser perspective, you can consider it offers context and attention. it offers context and attention. it offers users that sit in a place in purchase trading, considering what they want to buy, before they've gone to act. it's an interesting place to provide advertisers the opportunity to speak to consumers as they are warming to buy something. and look at the current development
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with things like pinterest lens and visual search, they are stretching further into the inspiration space, owning further up the purchase funnel, if ye will. that kind of move is interesting, as a long—time play towards reaching an interesting offer to advertisers. the thing i'm curious about, the competition. they are in quite a unique spot, the only competition i can think of this the equivalent of a google image search but that's not making any money either. that's quite an interesting point. consider where pinterest sets. it is on one side, you have facebook and google who own the opportunity, especially when they speak to advertisers, to drive awareness and speak to people, on the other side you have amazon who can sweep up action. the interesting thing for pinterest, less about scaling numbers to the size of facebook or google and more about providing useful context for advertisers to speak to users. when you consider that, that's really the opportunity for them to push forward
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and provide value. the demographic of users is interesting, heavily skewed towards women and in particular women with children. definitely. pinterest has a really useful use case, it's when people go to plan different life moments and i think that is skewed initially towards more of a female demographic but i think they had me quite a lot of moves to broaden that user base but i think what you will probably see with the platform is doubling down on how you can unlike occasions because it's an interesting moment but will users to provide value that is clear so they come back and to advertisers, so you can reach people within these moments, providing a clear opportunity for monetisation. thank you very much. let's take a look at some of the other stories making the news amazon plans to close its domestic marketplace in china by mid—july — that's according to chinese media reports. amazon chinese shoppers will no longer be able to buy goods
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from third—party merchants in the country. but they still will be able to order from the united states, britain, germany and japan via the firm's global store. the move comes amid a broader e—commerce slowdown in china. foldgate? a major pr problem is unfolding for smartphone maker samsung. its new — $2,000 — galaxy fold smartphone has been tested by the press and the results are disappointing. several reviewers reports serious screen issues after only two days of use. boeing says it is making "steady progress" towards certifying a software update to its 737 max planes which were grounded around the world after a crash in ethiopia. the chief executive, dennis muilenburg, said the final test flight with the updated software took place on wednesday. ivanka trump has confirmed she turned down the job of world bank head when her father asked if she was interested. last week, president donald trump told the atlantic he had
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asked her if she wanted the bank's most senior role "because she's very good with numbers". ms trump was eventually involved in selecting the new world bank president, us economist david malpass. the us has a longstanding, if informal, right to select the world bank's leader. indian carrier — jet airways has temporarily shut down operations from wednesday night onwards after it failed to secure emergency funds from lenders. the airline said it had no money left to pay for oil and other critical services. jet airways has been struggling due to high debt. sameer hashmi is in mumbai a very sad time for the airline because this used to be a huge carrier and very real respected around the world 7 carrier and very real respected around the world? that's right. look atjet around the world? that's right. look at jet airways it was india around the world? that's right. look atjet airways it was india 's oldest private carrier, started in
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93, at one point in time it was the largest carrier even within india and then in 2000 s started flying international, it had, you know, maximum numberof international, it had, you know, maximum number of passengers flying oi'i maximum number of passengers flying on international routes because of connectivity but things started to change or get worse for the airline from the mid—2000 s with the entry of low— cost from the mid—2000 s with the entry of low—cost carriers to the market because they changed the dynamics of the market. but the entry these airlines, ticket prices went down and these airlines were successfully able to keep the operational costs are able to keep the operational costs a re low able to keep the operational costs are low because unlike countries in europe and north america, here there is no clear demarcation between low— cost is no clear demarcation between low—cost carriers and legacy carriers, the tax structure is the same. that is where jet faltered, they couldn't bring down operational costs but they had to bring down ticket costs to compete with these airlines to keep market share intact and they started losing money and la st and they started losing money and last year when oil prices went up and the rupee lost its value, that
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made things even worse and the airline could never recover. 0k. thank you. let's check in with the markets, see what's going on. global stocks had been dipping following the lead from the us, pretty lacklustre us earnings season, that's raising fears across the market, we've also got a series of economic data that's been released, looking at the nikki injapan, we had manufacturing data and that is contracted for the third month in a i’ow. contracted for the third month in a row. let's look at the european markets. the picture is not much better, to be honest. reflecting some fears going on in the manufacturing sector in france, again, contracting even more greatly in april. all of this leaving the wider market quite flat at the moment. not much going on because we are about to head into the holiday season. and samira hussain has the details of what's ahead on wall street today. the us industrial company honeywell international
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will report earnings. in the last quarter honeywell divested some of its businesses which will likely have an impact on its revenue. that said, the company is benefiting from a robust demand for its aircraft parts and warehouse automation equipment. investors though, will be looking for comments on any possible disruptions to operations from the groundings of beoing's 737 max aircraft. also happening thursday, tesla ceo elon musk and the securities and exchange commission, the financial regulator, are due to submit a letter updating the court on the progress of the negotiations to resolve the sec‘s motion to hold mr musk in contempt of court for violating an earlier settlement agreement. joining us is kathleen brooks, founder & director, minerva analysis kathleen, interesting what's coming
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out of turkey. questions about the foreign reserves and quite how extensive they actually are? great analysis on this. they announced foreign reserves were over 28 billion for april however the ft looked back and found nearly half of this was actually from the very complex currency derivatives and swa p complex currency derivatives and swap arrangements that have been really battling ahead since the end of march and actually, if you take that out, it's only about 16 billion that's left. the risk for this is turkey has been attacked by the markets, if you like, its currency coming under a lot of pressure because financial markets, investors, analysts, they don't really like the economic path that the president is taking. the risk is if there is another crisis, another attack on turkey ‘s currency, they won't have enough to prop it up and that's a big risk for a country like turkey that has a huge amount of debt and foreign trade in us
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dollars. it's in, the crisis isn't there yet, but it doesn't necessarily have the warchest it might need and it's overstating what it has. it's definitely one to watch. let's talk about apple. a big tech company, and the other company is in tech company, and the other company isina tech company, and the other company is in a long—running battle with about tech. they have decided to give peace a chance at last. they've dropped, they were in a long—running courtroom battle over intelligence and various other legal disputes that the companies had together. they've decided, apple has decided, it has been pushed into a bit of a corner because qualcomm has five g technology that apple is desperate to get hold of, the other company makes chips good for 5g, apple has used intel and they are struggling to keep up with apple ‘s demand and the timeline to get these 5g chips. so really, apple had to use qualcomm but what's quite interesting, i
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think, the intel ceo who has been dubbed by apple, you think you'd be devastated because it's a big contract, actually said it was very ha rd to contract, actually said it was very hard to make money and get positive returns from the smartphone modem market. so it's quite interesting, obviously they moved to qualcomm now and shares are up 25% yesterday but there are problems with the iphone market, its so saturated, tight for eve ryo ne market, its so saturated, tight for everyone to make profit, even apple. indeed, kathleen, thank you for talking us through the markets, we go through the papers later. including the latest pr disaster for samsung. still to come exclusively female! we'll hear about the all—women private members club in central london and how it plans to expand. you're with business live from bbc news. a project to build a new rail line under london might not be finished until 2021. crossrail was supposed to open last
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year but bbc news has been told none of the new stations has been finished, and there are concerns about the signalling system. 0ur transport correspondent tom burridge has the story. it's one of the most impressive engineering projects in modern times. a new high—tech high—capacity rail line underneath central london. but a senior source associated with crossrail as told bbc news that this railway might not be complete until the spring of 2021. with none of the new stations finished, a best case scenario, i'm told, is the spring of next year. the budget was {14.8 billion. after initial delays were announced, that rose to £17.6 billion. with another delay likely, that figure could rise again. there's so much uncertainty because software on the new trains, most of which sit idle, is still not fully compatible with signalling in the tunnel. we're told marrying them up is proving much harder than was originally envisaged.
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this is the first train that will run on the eastern overground branch of the new route. featured in a bbc documentary, the line will carry vast numbers of passengers from east to west across london. the initial delay was only made public last summer, just weeks before the line was supposed to open. crossrail says testing of the trains and signalling is now progressing well. it plans to announce a new target for opening by the end of this month. two other senior rail sources say they've also been told that a 2021 finish is now likely. tom burridge, bbc news. don't forget there's plenty more on oui’ don't forget there's plenty more on our website online. on there now, details of how the competition regulator wants to break up the dominance of the big four accountancy firms. this is all tied up accountancy firms. this is all tied up with the problem is that karelian, the big construction company, ran into. and there are questions about the auditing and the
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oversight of it and a feeling, by the regulator that perhaps the big four firms need to the regulator that perhaps the big fourfirms need to be broken up. —— carillion. 0pening fourfirms need to be broken up. —— carillion. opening of the market to smaller firms carillion. opening of the market to smallerfirms and carillion. opening of the market to smaller firms and also on there, we talked about crossrail but hs two also featuring in the news. and the anger by homeowners who have had their homes bought up in order to make way for the new. your‘re watching business live — our top story — image sharing site pintrerest makes its stock market debut in new york later today — with a valuation of more than $12 bn. the company is a loss making operation — but is rapidly expanding its user base. a quick look at how the markets are faring we are waiting for a little bit of a
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trickle of european economic data to come out. uniformly, quite downbeat, this is something we see right across the world, we've seen some pretty downbeat data from asia as well, japan manufacturing sector and also french manufacturing sector contracting in the last few months. even the ftse is down about 7—8 points at the moment. now, 25 years ago, when she was united states ambassador to the united nations, madeleine albright coined a phrase that resonated with many women around the world: "there's a special place in hell for women who don't help each other." in the wake of the #metoo movement — this adage could be seen as more relevant than ever. 0ne company aimiing to put women's issues to the fore is the uk—based private members' club for working women, allbright. it's named in homage to dr albright, the club promises to be the location where women can network, relax and boost their careers in comfort. with us now is anna jones, co—founder, allbright
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thank you so much for coming in. my first question, do women really need all women clubs? well, we founded the club two years ago to build a community where women can network, where they can connect and up skill and it takes the form of a number of things, the physical members clubs, we also have our digital academy where women can up we also have our digital academy where women can up skill, we have oui’ where women can up skill, we have our magazine and out and our book which we are releasing in a couple of weeks. we believe that there is absolutely momentum around women coming together, women from different sectors, different stages, ages, entrepreneurs and executives, because what happens is, when you get women together in a room, really interesting, connections happen and that's what we have seen in our members club. we have found that
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women are working, collaborating together on new projects, they are found in companies together and they are forming really important friendships. and really importantly, being inspired by each other. i suppose the problem with a private members club is, inevitably, you are limiting it to a very narrow section of society, people who can afford the fees. and so, although it's a space for women to network and meet it's not across different income groups, is it? that's right, i think you have to have the means to be in a members club, you are absolutely right is one of the things we wanted to do was think about how we could reach women wherever they are and we launched the academy in order to do that. that is free digital courses, one for entrepreneurs and one for executives and basically, that helps you look at how to achieve your career aspirations in a very practical and pragmatic way. we have
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courses on how to build resilience and how to negotiate and think about what your motivations are and your personal brand and that's completely free of charge. we want to make sure that sisterhood reaches out beyond the physical members club. what your particular interest in the sisterhood, as you call it? i'm the eldest of four girls, before i founded this business, or co—founded it, i was the ceo of a magazine, i rana it, i was the ceo of a magazine, i ran a business which had a large number of women working together and i was really a bit of an outlier as a female ceo in the immediate sector. and i met my co—founder it was a tech entrepreneur we realised we had this kind ofjoint passion around empowering women because we didn't feel like we should be outliers, why should it be there are so few female ceo plea mark and similar roles filled by women and female entrepreneurs when we knew so many amazing female entrepreneurs who wanted to reach their career heights and corporations and found their own businesses. and what we felt was there was an opportunity to galvanise the community to really make a change. did you run into any
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difficulties in setting up a club where the membership was limited to only women because conversely, if anyone now try to set up a club membership was exclusively male, they would run into ulcerative opposition? did you find there are any doubts about it? look at the statistics and some of them you know very well, because we are so far apart in terms of equality, how much capital will back a female entrepreneurs, 2% of that, you probably sew the russia in the pound goes to back female co—founders and 89p in the pound goes to blackmail co—founders, we also looked at the statistics like only 15% of these withdrawals in uk companies are held by women and you know the gender pay gap and the board starts better than i do. there is a long way to go to reach parity but what is important to mention is although the membership is solely female, men are
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welcome in our building and we a lwa ys welcome in our building and we always have been in the buildings because we want these to be places that are useful and we know people wa nt to that are useful and we know people want to have meetings and lunches and cocktails with men but the programming and the whole ethos of the clubs focuses on women. interesting you have a man at the top of the tree, a male chairman. we do because we believe we have to have enlightened men along on the journey. allan leighton is our nonexecutive chairman, he is certainly an enlightened man and we really feel like to make a change, to make a difference, we need to work together. thank you, really good to hear from you. best of luck with that. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us.
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stay up—to—date with all the news as it happens on the bbc bsiness live page. there is insight and analysis from a team of editors right around the globe. and we want to hear from you. get involved on the bbc business live web page. on twitter. and you can find us on facebook. business live, on tv and online. what you need to know, when you need to know it. this i've just this i'vejust dropped my this i've just dropped my notes, this i'vejust dropped my notes, but don't worry, these ladies can wing it. what will i start with? the folding phone? lovely idea but it doesn't seem to have worked out. folding phone? lovely idea but it doesn't seem to have worked outm seems there's been a big race to create this new mobile technology, samsung might have that not more than they can chew with putting it out early. it's only out to reviewers and actually, some very well—known have found that it's broken or has not worked, due to some sort of film which some
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reviewers think you strip off. there's actually a screen protector. but one reviewer who kept the don, says, your own bbc reviewer, said there was a small gap, obviously, as she folded over, and he was worried about things breaking in that are getting trapped in that and causing a problem to the phone. it's got a lot of struggles. it retails at $2000. it's a lot, isn't it? this could hit sales of this product. bit like a lot of things, the first generation are great, this could be the best thing that's happened to samson because now they know what to fix. it's all happening at a time for a—way or into the marketplace, launching a new phone of their own, exactly the same time, handing it out to all reviewers. it's not great. samsung, bigger, older, thought of, a more respected company, thought they had a bit of a
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head start but obviously not. let's talk about this other story in the papers today, the independent, the telegraph and on our website if you wa nt to telegraph and on our website if you want to look. this story about age restrictions on pornography in the uk coming into effect injuly. this isa uk coming into effect injuly. this is a government announcement today. really interesting and i'm sure will be welcomed and celebrated by lots of pa rents. be welcomed and celebrated by lots of parents. but it probably raises a lot more questions than it answers at the moment. well, it does, to access pornography online you have to enter a lot of personal information online or you may even have to buy a pass from a newsagent. either that your local shop down the road, i don't know, i guess that opens a question of whether or not they should ban online pornography and people should go back to the top
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sheu and people should go back to the top shelf like they did 20—30 years ago. but the issue with entering lots of personal details, robust age verification checks would lead to what the data gets leaked, that would be the government ‘s fault. what the data gets leaked, that would be the government 's fault. we are out of time. thank you so much for all of your tweets. we've had a read through. thank you and see you soon. hello. the long easter weekend is on its way. we could see lots of sunshine, wind coming in from the south—east pushing warm air across central and eastern europe, across siberia, things are cooler and more u nsettled siberia, things are cooler and more unsettled thanks to an area of low pressure. 0n unsettled thanks to an area of low pressure. on saturday, parts of the uk will be warmer than spain. acted today, chilly start across northern and eastern scotland. the mist, fog, low cloud, especially across the east midlands and east anglia. temperatures lived in, we will see good spells of sunshine today, hazy at times, areas of high cloud, brisk east or north—easterly wind pegging
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back the temperatures across eastern and channel coast but elsewhere, temperatures widely between i6—20d. possibly 2i, temperatures widely between i6—20d. possibly 21, 22 across southern parts of england, making it the warmest day of the year so far. a fine evening and night to come. like the night gone we could see areas of mist and low cloud, not as cold as last night across scotland, then generally holding up li—5d, more like 6-9d generally holding up li—5d, more like 6—9d further south. this is the set up 6—9d further south. this is the set up as we head into the long easter weekend. this large area of high pressure a cross weekend. this large area of high pressure across scandinavia keeping things fine and settled, the wind becoming more southeasterly as we head through good friday and saturday. we could see mist and low cloud first thing tomorrow, lifting, like today, plenty of sunshine, fair weather cloud in the afternoon, temperatures up a notch compared to today, i7—2i or 22 degrees, possibly a degree or so higher across southern parts of england. by the time we get to saturday, subtle changes, frontal systems bringing
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more cloud and patchy rain across northern ireland, western scotland. elsewhere, fine and dry day, plenty of sunshine, southern parts of england could see highs of 2a—25d, cooler for eastern and channel coasts. by easter sunday, the seafront still with us across scotla nd seafront still with us across scotland and northern ireland, retreating north, the odd spot of rain, most should be mainly dry. the best of the sunshine further south and east, temperatures down a notch compared to saturday, 21, 20 2 degrees. for most as we head into easter monday, staying mainly dry, further spells of sunshine. goodbye.
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you're watching bbc news at 9am with me, annita mcveigh. the headlines. climate change protestors begin a fourth day of disruption in central london. nearly 400 people have been arrested and three charged. we have tried absolutely everything else to get the government to listen and to take climate breakdown seriously. and this is the last resort. meanwhile, in a new documentary, sir david attenborough gives his gravest warning yet on the threat of climate change. if we have not taken dramatic action within the next decade, we could face irreversible damage to the natural world and the collapse of our societies. investigations begin on the portuguese island of maderia

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