this is business live from bbc news with susannah streeter and jamie robertson. snap, crackle and pop — the bubble looks to have well and truly burst for snapchat‘s parent company. shares plunge on bigger than expected loss. live from london, that's our top story on friday august 11th. snap shares plunge by close to 17% as losses mount. we'll be discussing what's gone wrong for the company that was once the toast of silicon valley. from one troubled tech firm to another — uber‘s ousted boss travis kalanick has been sued for fraud by one of the company's biggest investors. we will explain all. also the latest on the european financial markets, cannot see exactly what is happening at the

moment but stocks have opened more low following losses in asia and the us as the war of words between america and north korea rattles investors. and we will talk about the google diversity road, the founder of uber being sued. and as tourists in spain face a backlash from locals protest against tourism we wa nt from locals protest against tourism we want to know have you ever faced hostility on your holidays from the locals? hello and welcome to business live. snapchat is the disappearing messaging service thatjust keeps making money vanish. its parent company snap has seen its share price sink like a stone in after—hours trading as it reported widening losses. snapchat launched in 2012 as a mobile app that allows users to send photos that

vanish within seconds. it's been a big hit with millennials but has never made a profit. perhaps the most keenly—watched number by investors is the number of daily active users. that rose to 173 million — up only 4% compared with the first three months of 2017. compare that with instagram stories, a service on the instagram platform that closely resembles snapchat. it has 250 million users. revenues at snap almost doubled for the quarter to $181] million, which seems positive but is also lower tha n a nalysts had been forecasting. and the losses are piling up. the tech firm lost close to half a billion dollars in the quarter, and investors will be very aware that that's just not sustainable. today's results came out after the closing bell but the company has had a rough ride on the markets since it went public in march, with blockbuster valuation of $28 billion. it's not shown on this

graph but in after—hours, trading shares were down by close to 17%. simon collister specialises in digital communications at the marketing firm blackbook london. which of those numbers should we be paying attention to, the user numbers, profits, revenues? paying attention to, the user numbers, profits, revenue57m numbers, profits, revenues7m depends who you asked, a lot of the focus has been on daily active users, the number of people interacting with the platform on a daily basis and whilst there has been growth, it's clearly not good enough. but if you asked the founder and ceo of the platform he is keen to point investors away from that, saying there is too much focus on that and we should look at the engagement rates. and what are they doing? they are looking quite

impressive. what are they? how people spend on the platform on a daily basis? it is a beacon of light in terms of the results. numbers of up in terms of the results. numbers of up to a0 minutes per day. in terms of the results. numbers of up to 40 minutes per day. that is important to him because the longer they spend on it the more they pay attention to advertising which means it's more attractive to advertisers. that is a key point he is making, facebook have an average time of engagement of 20 minutes a day so this is double. and it's a much younger demographic. they have a lwa ys younger demographic. they have always believed they can grow revenue from the existing user base. but investors want a faster return given the huge valuation. yeah, that's where they are going to find themselves in a difficult situation. they have been reluctant to entertain ideas of quick growth, growth hacking as it is known in marketing circles. allowing users to

add their own network, and they have been against and that as they think it would compromise integrity. one goodidea it would compromise integrity. one good idea seems to be fantastic then it runs out of steam and other people copy it as well, look at instagram. yes and that's going to bea instagram. yes and that's going to be a challenge. the opening valuation was always based on the idea they could out innovate facebook, but facebook were very quick at copying what they had done. it's about how they can innovate which will keep them ahead. and if they do not will they get snapped 7 they do not will they get snapped up? chuckles that is the big question, there were rumours google was interest last year and it seemed like an ice pick, google has always struggled to build its own mobile social network. thank

you so much simon. europe's egg safety scare has led the european union commissioner in charge of food safety to call an urgent meeting of ministers and national food safety agencies. vytenis andriukaitis has also called on belgium and the netherlands to stop blaming each other for the problems. millions of eggs have been pulled from european supermarket shelves over fears they contain a banned insecticide. google's parent company alphabet has cancelled a company—wide meeting to discuss a controversial memo on gender diversity. the firm said there were concerns some staff might be attacked for sharing their views. earlier this week the male software engineer who wrote the memo was sacked for arguing the lack of women in top tech jobs was due to biological differences between men and women. australia's financial regulator says it's opened its own inquiry into accusations of money laundering against commonwealth bank of australia. the regulator's chairman said the country expected better

of its biggest company. the bank has said a computer coding error was behind more than 50,000 alleged breaches which could cost it billions in fines. let's go to china where the country's largest social media platforms — weibo, wechat and baidu tieba — are under investigation for alleged violations of cyber security laws. our correspondentjohn sudworth is in beijing and he's been following the story for us. what are the accused of doing? these are amongst the most powerful social media platforms in the world, each of them used by hundreds of millions of them used by hundreds of millions of people here in china and beyond and the cyberspace administration of china has issued this directive today saying they are now under investigation and the concern seems

to be the idea that some of the content, some of the charts and m essa 9 es content, some of the charts and messages and material being shared in danger as national security and the cyberspace administration points to things like spreading false rumours, issues related to terrorism, concern about the content there as well as pornography and a general sense that these platforms are harmful to china's maintenance of political stability and order. they are already very, very heavily monitored and censored but i think this sends a message particularly at this sends a message particularly at this moment in timejust this sends a message particularly at this moment in time just a few months away from an important communist party congress, we have seen a tightening of internet controls in other areas and i think a lot of people are reading this as sending a strong message that they need to get the houses in order and get much better at policing themselves. the signal is much more

censorship and control to come. thanks very much. we'll keep an eye on that. the standoff between the us and north korea has been rattling markets worldwide. appetite for risky assets is low — instead investors are piling into perceived safe haven assets like gold — the swiss franc and the yen and that's put a bit of pressure on the nikkei which held up reasonably well — but other indices in asia also felt the effects of the sabre rattling. on wall street — stocks suffered their biggest losses in nearly three months — with around $30 billion wiped off the value of us blue chip companies. one firm that's hoping to be on wall street in the not too distant future is ride sharing giant uber. 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 forfraud by one of their biggest investors. dave lee is in san francisco

with the details. when travis kalanick was forced out as chief executive of uber he kept a seat on the company ‘s board and a 10% stake in the farm but since then it has alleged he has been concocting a plan to get his title back. he reportedly told close allies he was stevejobs it, a reference to the apple founder who was forced out of the farm only to triumphantly return more than a decade later, this alleges travis kalanick fraudulently expanded the board to fill out with allies to make such a return possible. benchmark capital said it would not have agreed to more board seats if it had known travis kalanick's plans. if successful this legal action could see travis kalanick kicked out of the company he helped build. simon derrick, chief markets strategist at the bank of new york mellon joins us now. have to talk about a country we do

not normally talk about, north korea. the influence the geopolitical tensions have on the markets, its been rather slow in coming, nobody really paid attention to this until about three days ago. and that is the interesting thing, the markets not been that sensitive, i think monetary policyjoined everything out but over the course of last 18 months we have had no consensus events happening, things like the election in the us, the brexit vote here, market suddenly becoming rather more sensitive and i think this will prove to be another one of those and at the moment the market is waking up to the fact that perhaps this is a rather different kind of red like —— rhetoric. perhaps this is a rather different kind of red like -- rhetoric. it is ha rd to read kind of red like -- rhetoric. it is hard to read directorate coming from the trump administration, the defence secretary saying one thing and president trump seeing a much

more hardline stance. and that is the thing, this is taking place in august which is traditionally thin, it can be more volatile, some of the larger moves taking place in august. the risk is the market, with that uncertainty the risk is the market, with that u ncerta i nty starts the risk is the market, with that uncertainty starts to take an increasingly risk averse tone and i think that's going to be an issue going into next week. briefly on one company, some results from news corp,it company, some results from news corp, it showed a fall in their print advertising income. yeah, that move away, remember of course, one of the key newspapers within uk was the still to come: this week's tech takeaway. google's diversity row and new video

content for facebook, our technology correspondent rory cellan—jones will chart a path through all the big tech stories of the week. you're with business live from bbc news. a flight delay is one of the worst possible starts to a holiday. well, according to new bbc research, air passengers using gatwick airport and flying on easyjet have suffered the longest average delays during summer getaways. kevin peachey is in our business newsroom. you have been looking at these figures, what more do they tell us? you could have been unlucky and got a flight from london to new york on a flight from london to new york on a particular airline with average delays of an hour and a half but overall it is gatwick that you mentioned with the worst average delays, 27 minutes on average and for the airlines it is easyjet, 2a

minutes average delay. there are others, british airways, thomson, they also have delays of more than 15 minutes. these are figures from the last two summers and past performance does not necessarily mean it will be the same, but if you look at the calculator on the bbc news website over past delays if it has a record it might be worth packing an extra book or downloading some cartoons for the kids. is this way can gauge which airports and airline to use? yes, past performance is only a guide of course but airlines and airports will say there are things beyond their control, strikes and congestion in the skies and there is a broader point over airport capacity and our demand for cheaper flights and clearly there needs to bea flights and clearly there needs to be a quick turnaround for these flights to keep the costs down and

that leaves them more prone to delays. thank you kevin. a story from the today programme which interviewed the former aide to the brexit secretary david davis. he said on that programme the voters had been, quote, sold a pack of lies. mr chapman added, my view is that the conservative party brand has now been damaged to such an extent that it will never again get a majority. he said the hard brexit plan will make black wednesday look like a picnic. there is lots more you can read about on the bbc news website about the impact of brexit. or the perceived impact of brexit. he has had lots of coverage over last couple of days, done several interviews saying the same thing. you can read that on the bbc website, as we say. you're watching business live — our top story:

there's been another sharp fall in the value of shares in the social media company that owns snapchat. at one stage they slumped nearly 17 percent, after snap reported more than $a00 million in quarterly losses. the former uber chief executive has been making headlines. google's been embroiled in a big row about gender diversity and free speech. meanwhile facebook is launching a new video service and netflix and disney have parted company over access to videos. lots to talk about. so much going on. our technology correspondent is rory cellan—jones. i would like to ask you for your ta ke i would like to ask you for your take on uber, the latest twist and turn uber story. what an extraordinary story. i can think of a previous occasion where a venture capital backer of a major company has got into a mud fight with that company, or at least its founder, while still being a major backer. benchmark capital, one of the big

names in silicon valley, basically accusing travis kalanick of all sorts of misdeeds, unhappy with the culture he has created at the company, unhappy with the idea that he will still have influence. what have they been doing the last few years?! have they suddenly woken up to what is going on?! arianna huffington has been brought onto board. there has been a huge weight of money coming behind this company, an extraordinary amount of backing, $8 billion or so, and you would have thought that people putting that money bind the company would have asked a few questions a bit earlier. moving onto facebook, disney pulling out of netflix, starting its own streaming. is this part of a general trend? another fascinating week in the ongoing battle between new and old media, in a way. we know about

netflix making huge strides, we know about amazon prime video signing up lots of people for ondemand video. facebooked, there is already a lot of video out there, making a determined pitch that they will be a place for original content. facebooked, funnily enough, the company said we are not a media company, we don't need to be regulated like a media company, now they are saying they will have original content which they will commission. treading on netflix's toes? yes, taking on youtube, they will reward people in the same way that you tubers get rewarded, they will give them a share of advertising. a big battle going on. the other development this week is disney, you could count that as an old media company, waking up to the fa ct old media company, waking up to the fact it has been giving away its contents, or at least rewarding a new platform with its content,

netflix, saying we will take that off and do it ourselves. about how will they do that? they said they would set their own platform? there are already various disney digital platforms which have not made a huge splash, this is the dilemma for a lot of old media companies. we are all putting our content is old media companies on facebook, including the bbc. a great way to access new audiences. but we are watching as they take the profits under control. is there a problem for netflix, the fa ct is there a problem for netflix, the fact it will not be working with disney any more, all is netflix too big for that? i think netflix is already past that stage. it has been an incredibly bold company. when they first said they would spend hundreds of millions of dollars, billions of dollars, on making their

own co nte nt billions of dollars, on making their own content as well as buying it in, everybody thought it was a bit bonkers, it has turned out to be a pretty wise move. google, there was a big meeting to be held about gender diversity but it seems like it has been cancelled. what is the update? extraordinary upheaval over this week. it is a mark of how big a crisis it has been for google that when this memo we merged questioning their diversity policy, the chief executive broke off his holiday, came back and said we would have a big meeting on friday, he has cancelled bats because there has been a huge backlash, which is quite scary to people inside google, with pictures and details of people published online on conservative websites. there is a mood of extreme disquiet within google that they will be caught up in a sort of culture war and people are feeling pretty vulnerable. i gather he was so pretty vulnerable. i gather he was so keen to make the point that

immediately after the meeting was cancelled he went to a coding course and was talking to girls, a coding course specifically for girls and saying we need you to come into the industry. i think it is part of this attempt to undo this image that silicon valley has of being sexist? talking about it uber has had all sorts of issues with its treatment of female staff. google has wanted to get ahead of that, knows it has an issue, has put in all these diversity programmes, that is what this engineer who was sacked was objecting to, the extent of the diversity programmes. and i think the chief executive was good —— doubling down and saying we will carry on. while still trying to say we have free speech in the company, a tricky balance. thank you, rory, as usual. and you can hear more about the latest from the tech world with rory on his tech tent programme on bbc world service radio at 1a:00 gmt today which is 15:00 here in the uk. and if you miss it you can download

the podcast via the bbc website. 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. the business live pages where you can stay ahead with the breaking business news we will have insight and analysis from the bbc editors right around the world. we wa nt right around the world. we want to hear from you, get involved on the bbc businesslike web page, on twitter or facebook. business live on tv and online, whenever you need to know. what other business stories has the media been taking an interest in? simon derrick, chief markets strategist, bank of new york mellon is joining us again to discuss. let's talk about holidays, it is

holiday time. there is a story on wa nt holiday time. there is a story on want a cheap holiday, to be saying spain is too expensive, go to bulgaria. what is interesting is there has been a rise of protests taking place in spain are people essentially saying tourists seem to be taking over our cities, it should be taking over our cities, it should be rather more balanced, notjust in spain, venice has a very similar movement taking place. on one hand you could look at this as being simply about the sheer success of these cities as tourist destinations, there is another side, which is there has been a recovery in europe but it is perhaps a recovery that is only benefited... surely it is also tui trying to expand its market to bulgaria?m surely it is also tui trying to expand its market to bulgaria? it is a great marketing move, nobody would argue that. maybe we should do more of that in the uk. but i think it is

a major thing that we are getting movements like this in place. it is pa rt movements like this in place. it is part driven by how we have driven the recovery in europe. this story has been picked by bloomberg. they have statistics showing the managers are making the most of the recovery, it seems as if the recovery is not benefiting those workers and those people trying to find houses in barcelona and some of the big spanish cities, they are fed up with being squeezed out and not making the money? it is really a mark of how this recovery is different to ones we have seen how this recovery is different to ones we have seen in previous decades. feels as though there has been a real split between the relatively well—off who seem to have come back relatively well and relatively quickly, and those further down... why is that? i think it is to do with what has been used to drive the recovery. a lot of that

was due to the ultra—easy monetary policy, quantitative easing. that is great if you owned a house, shares, assets of any kind. yes we have had one of the longest ones for a long time, it has been driven by easy monetary policy. if you had a pension or own day house he did very well, if you did not own those things you left stomach felt left behind. people trying to rent in big european cities in seeing tourists coming into airbnb properties feel disgruntled? that is what you see behind these movements. in fairness, you suspect it will continue. the people who own the houses are making the money? that's it. thank you. thank you forjoining us. that's it from business live today. there will be more business news throughout the day on the bbc live web page and on world business report. we'll see you again tomorrow.

yesterday we had a bit of sunshine, todayit yesterday we had a bit of sunshine, today it is changing again. lots of cloud and outbreaks of rain on the way. moving mainly into northern and western parts of the uk. all associated with this weather fronts here tied into the area of low pressure sitting way to the north. moving gradually southwards and eastwards. it will stay largely dry and sunny eastwards. it will stay largely dry and sunny across eastwards. it will stay largely dry and sunny across the far south—east of england, we can see this area of rain as it slowly moves eastwards, quite breezy conditions and strong winds over the mountains and the north—west of scotland. while the bulk of the heavy rain clears from scotla nd bulk of the heavy rain clears from scotland it will feel quite cloudy and drizzly. drizzle is likely for the lakes and the peak district and through wales, the south—west of england as well and even for northern ireland, staying pretty cloudy during busy afternoon. the rate will move into central and southern england, the midlands, it could be heavy at times, getting

away with a dry and sunny afternoon across the far south—east, temperatures could get up to the low 20s. eventually the cloud moves in and overnight tonight it will stay quite cloudy, a little bit drizzly from time to time, temperature is not falling too far, a mild night compared to the last few nights, temperatures about 13, 15 or 16. going into the weekend, the weather fronts will move out into the near continent and we have an area of high pressure which is building nicely for the weekends. that means it will be mostly dry, there will be one 01’ it will be mostly dry, there will be one or two showers, but also sunny spells. well you could catch the odd shower during saturday, for many varying amounts of cloud, good sunny spells likely across most areas and in bad sunshine, temperatures getting up to 18, 21, 22 celsius. they're also some fairly light winds. as for sunday, a similar

story, one of two showers again, but the emphasis is once again a dry day with some sunny spells. 16, 18 or 19 celsius, fairly typical for this time of august. into next week, staying quite changeable with more atla ntic staying quite changeable with more atlantic weather fronts pushing from the west, meaning some rain at times but also drier and brighter interludes. more details on the website. hello it's friday 11th august, it's nine o'clock. i'm joanna gosling, welcome to the programme. war would be catastrophic — the words of american defence secretary james mattis as he insists the us is trying to solve the north korea crisis through diplomacy, but president trump gives a blunter warning. he does something in guam, it will be an event the likes of which nobody ‘s seen before. be an event the likes of which nobody 's seen before. the tragedy

of war is well enough known, it does not need a number characterisation beyond the fact it would be catastrophic. we'll be live from seoul with the latest. also millions of pounds raised for the victims of the grenfell tower tragedy are not getting to people quick enough.