To stay on hold of a record low of 0. 25 . And the company that created photoshop, well be speaking to the boss of the Software Firm adobe, shantanu narayen. Today we want to know, do you use snapchat . What do you use it for . Let us know. Just use the hashtag bbcbizlive. I know that tanya is a user of snapchat, i have seen the selfies and we start with snap, the Company Behind the messaging app snapchat. It lets you send photo messages that disappear after a few seconds. But it seems the confidence of investors has gone missing almost as fast. Snaps shares plunged in after hours trading on its first set of Financial Results since that huge Flotation Back in march. Snap lost 2. 21 billion in the first three months of the year. Thats way more than the same time last year. Why . Well, mostly because of huge pay outs to staff with Stock Options in the flotation. But heres the number investors are really looking at. By the end of march 166 Million People were using snapchat every day. Thats up over 36 on the same time last year. But it was a few million less than investors had been hoping for and a big slowdown from growth seen in previous quarters. It also pales in comparison when you look at this. Facebook has around 1. 3 billion daily users. And almost 2 billion use it at least once a month. Even its version of snapchat, instagram stories, has 200 million daily users. Investors were quick to pile into shares when snap went public back in march. Shares rose by as much as 50 in the first days of trading, but look how that enthusiasm has waned on concerns about competition from facebook. From san franciso heres dave lee. When it went public in march, snap at to answer two questions, the first if it could attract a enough new users to give investors happy, and could it survive an onslaught from facebook, copying its ideas and giving it to its users . So far, the a nswer to giving it to its users . So far, the answer to both questions seems to be no. User growth seems to have been too small, and while snapchat is still very popular with teenagers, there has not been an increasing engagement that investors wanted. 0ne investor asked the Chief Executive if there were new products coming up to give investors cause for hope. Its fair to say he did not have too many bright ideas. He also said he was not worried by facebook, but, on the evidence of these results, he probably should be. Im joined by mike weston, founder of Marketing Agency radiate b2b. Welcome to the programme. It seems that investors are quite skittish. We see some very big numbers in terms of Subscriber Growth and the losses. But that is nothing new for this particular sector. What is particularly upsetting investors . Well, the first is the concern that growth has significantly slowed. A year ago, growth rate was 52 , daily average user growth. That is the key metric. Ahead of these numbers that pundits in the states were talking about, anything below about 9 million growth in that number would be punished by the stock market. That is exactly what has happened. Why does it matter . It matters because it really needs to monetise the users they have got. It is quite a bloodthirsty market, particularly in north america, where most of the revenue comes from. Can we compete with tv audiences . If they are not getting to the bulk numbers that someone getting to the bulk numbers that someone like facebook has, they are going to struggle. The comparison with tv audiences is advertising . Absolutely, that is where the revenue comes from. Snap, making it popular as revenue comes from. Snap, making it popularas an app, revenue comes from. Snap, making it popular as an app, getting is used to taking pictures with filters, facebook arrives with instagram and makes instagram stories, they have the user base already and that is a big challenge, taking on a huge organisation with a massive user base . Yes, he will not afraid to copy. I loved eric speigels comments, the founder of snapchat, just because yahoo put a search box on their page, it doesnt make them google. Trying to draw that comparison which was quite punchy. He is quite secretive about his next creative move. In the end, as you say, it has to be monetised, it does not matter how many users you have, you have to make enough money out of them. Snapchat does that. When you ta ke them. Snapchat does that. When you take a photograph and your tongue goes take a photograph and your tongue goes. I dont do it, of course when it goes gold, or you get horns and looked like a devil, it is normally advertising something. It is not sufficiently monetised though, to satisfy investors . They have shown massive growth, year on year, an advertising revenue, but it is still short of what wall street was expecting. That is disappointing. If the user growth is disappointing. If the user growth is not there, you need to increase the amount of revenue per user that you are getting, and it is not happening. That is worrying for stockholders and investors. Nice to see you. Lots of you getting in touch already. We asked the question at the start of the programme, do you use it . Ian says he hardly uses it now that instagram has stories. 0ccasionally use it for face swapping, we will not even get into that a whole other minefield. Damian says he has an account but i have not been using it lately, it does not really offer much more than instagram. Keep comments coming in. We will talk about them later. Lets take a look at some of the other stories making the news. Bt, britains biggest telecoms group, says it plans cut 4,000 jobs over the next two years in a major restructuring. The Telecoms Giant said the posts would be going in back office and managerial sectors as it simplifies its Global Services operations. It said Technology Trends meant it was less dependent on owning physical Network Assets Around The World. Boeing has temporarily halted test flights of its new 737 max aircraft due to possible issues with the engine. The stoppage came days before the us planemaker was due to make its first delivery of the aircraft to a customer. But boeing said it was sticking with plans to begin max deliveries this month, adding that production of the jets would continue. Profits at 21st Century Fox dipped in the first three months of the year, weighed down by Flat Cable Advertising and less successful movie releases. The Rupert Murdoch controlled firm said profits fell 5 to 799m compared with the same period last year. Fox though said it remains confident that its bid to take full control of sky will succeed. Loads of other stories for you, we cant fit them all on here, but they are on the website. Nissan says profits will fall. The japanese car maker is forecasting a 7. 7 fall in profit due to higher raw material costs. We should get used to hearing that, inflation rising in many parts of the world, we have seen a big number of manufacturers reporting that. Nissan one of the first to say it could have a huge impact on operating profits. To asia now where japanese telecoms and internet Giant Softbank has revealed some of its best profits ever. Softbank runs a Mobile Phone Network injapan but also invests heavily Around The World. It owns us mobile Company Sprint and has recently bought uk chip firm arm which designs chips for the iphone. Leisha chi is in singapore. Isaid i said dont be fooled by the name, you might assume it is a bank . Thats right, softbank is an incredibly fascinating company, howard has transformed itself from just a japanese telco to one of the worlds Biggest Technology companies is something people should look into. Today it recorded its second best profit of 26 billion. Profit tripled largely thanks to the sale ofa tripled largely thanks to the sale of a very lucrative stake it had in the chinese e commerce giant eilidh barbour, and as well as the sale of a finnish game maker. E commerce giant alibaba. It is enigmatic founder is setting up a 100 billion Technology Fund with saudi arabia. Lastjuly, you mentioned already at bought arm. It also sunk money into sprint, as well as the Indian E Commerce site snap deal. These we re e commerce site snap deal. These were all big investments, but the three i just were all big investments, but the three ijust mentioned are loss making. Whether they pay off like alibaba, that is a big question mark. Do you use a snapchat . I am quite old school, no. Just facebook. This is what happened in asia, surprise that markets rose. There was concern yesterday, all of the destruction about president trump, the sacking of the fbi chief, what it would mean in terms of policies regarding tax, is it a distraction from that about cutting tax for business . We saw some reaction to that. Let me take you to asia. This is what is happening. Not a huge amount happening across the board, in the uk, a big day because we get a quarterly update from the Bank Of England about what it expects the economy to do over the coming quarter. Interest rates set to stay up quarter. Interest rates set to stay up at record low. Lets head to the us. Samira has the details. Retail will take Centre Stage On Thursday as Us Department stores macys, kohls and nordstrom all report earnings. Now, all three companies are struggling with falling sales amid growing competition and have resorted to cutting costs by Closing Stores and selling or leasing their real estate, and keeping Inventory Levels low. Macys and kohls are already predicting that sales will fall this year, while nordstrom believes that sales will be flat. Also happening on thursday, wells fargo usually holds its investor day every other year. But it is holding one for the second year in a row. Its trying to restore shareholder confidence, following its recent accounts scandal. The bank will provide new cost cutting targets and leaders of the lenders Major Business units will discuss their outlook. Joining us is lawrence gosling, editor in chief of investment week. Quite a quitea uk quite a uk focus we have got going today. Lets start with the Bank Of England. We are getting a regular Inflation Reports, a lot of reports on whether there is any hint of an Interest Rate rise. As ben was saying earlier, virtually no expectation we will get an Interest Rate rise. It is almost a question of if we will get one before the end of if we will get one before the end of the year. I would say almost certainly not. Or the end of next year . Even before the brexit negotiations . We will still be here discussing it we could make a case for not seeing an Interest Rate rise until the uk has got through the brexit negotiations, it is the one piece of ammunition that the Bank Of England has in the reserves to kick start the economy. I think we will see some signs of slowing inflation, numbers should take up a little bit. Were getting used to Higher Energy prices, commodity prices, that kind of stuff, and the effect of weaker sterling for goods being imported into the uk. A quick look on the outlook, away from the Interest Rate decision, we will give you the update on what the economy is doing, and it is going to be the same issue, brexit . They think it is often in, that is the view from most people running businesses, that the economy is starting to flat line a little bit, largely because we are getting nervous about the longer term consequences of negotiations might be. We will talk about the paper stories later. Thank you. Still to come, hes one of the most prominent names in tech at one of the sectors most important firms. Shantanu narayen is the boss of adobe and joins us after the break. Youre with Business Live from bbc news. It ignores the Elephant In The Room which is the big Accounting Scandal in italy that erupted earlier this year. The company said it cost more than £500 million. Lots of people lost theirjobs, the investigation was opened and the companys Share Price Fell by more than 20 . The company is feeling the effects of that. There has been a problem in the uk with the scandal over open reach, the Broadband Delivery Part of bt. It was fined a record £112 million by 0fcom for failing to pay compensation to customers who had to wait, business customers, who had to wait, business customers, who had to wait too long to have high speed lines installed, for manipulating the rules. It has been a pretty rough year and that is why the Chief Executive is giving up his bonus. Quickly, it is a really tough market out there. All the Telecoms Firms have been warning on profits. They are trying to get new users and amidst all of this there is a lot of scandal for bt to content with. Yes, It Isa Scandal for bt to content with. Yes, it is a tough market and bt is trying to restructure its business. Its Global Services business which provides it solutions to Business Network solutions, notjust in the uk, it is slimming back down. It says it does not need so much Old Fashioned infrastructure says it does not need so much Old Fashioned infrastructure and says it does not need so much Old Fashioned infrastructure and it is getting rid of 4000 back office cuts to cut costs. A lot to content with there. Bt is to shed 4000 jobs. It is a new overhaul. It is a new overhaul. Youre watching Business Live. Our top story, shares in snapchats owner have plunged in after hours trading after it reported disappointing growth in the first three months of the year. Lets quickly check on what the european markets are doing and it is not a lot, as we have just discussed with lawrence. All eyes will be on the Bank Of England as far as the Inflation Report is concerned. The Interest Rate decision will be at midday in the uk. Think of tech names that are known Around The World and adobe is one of the best known software brands. Since it was formed in california in 1982, the firm has created many industry changing products that are used around the globe. It makes products many of you will be familiar with like acrobat, photoshop and the flash video operating system. Adobe has largely produced software for the arts, design and Film Industries which have been used on blockbuster movies such as avatar. Its products have also powered innovation in tv too. It helped build the bbcs successful iplayer tv on demand service. But competition is intense. So whats it like to lead a Global Technology firm amid so much change . Shantanu narayen is the boss of the company and joins us now. Welcome to the programme. This is a company which in a way has tracked the development of technology and the development of technology and the changes in the sector, so could you highlight what those have been during its journey and you highlight what those have been during itsjourney and during the time you have been there . Thank you for having me on your show. You are right, we have been known for fundamental innovations that have changed the world of publishing. The first was the ability to print what you see on the screen. After that we created the first applications that allowed people to use applications like illustrator. But the seminal products have been the ones you mention, photo shop, acrobat. More importantly we are looking at the new forms of media people are using. What is so interesting, like we have seen what is so interesting, like we have seen with hoover and vacuum cleaners, photo shop is now a verb. It is so commonplace and mainstream people use it in everyday language. That gives you a incredible power, doesnt it . If you look at the technology industry, the whole landscape is littered with people who rests on their laurels. Photo shop has been an incredible success. We are so focused on how we make sure that the billions of pictures people are taking, that photo shop continues to evolve at an innovative pace. People are using their cell phones to deal with pictures and the magnitude of pictures is amazing. Phones to deal with pictures and the magnitude of pictures is amazinglj mentioned technology has undergone fundamental change, as we have seen the entrance of facebook into the advertising world and the publishing world. You have entered publishing as well. At one point you are interested in being a journalist. There has been a huge merging within technology and broadcasting. How do you see the changes next . What has happened is everybody has had a story to tell. The ability to tell that story used to be restricted to a few people at the top of the pyramid. And what Companies Like us or facebook are doing is democratising who is able to tell the story. Distribution is now available if you have a video and a story to tell. What is happening is the confluence of technology and media and publishing is causing all these new entrants to emerge. It makes design and aesthetics and storytelling even more important. And the Barriers To Entry for new firms are much lower. There was a time when you had to buy one of your products you had to buy it on disk ora products you had to buy it on disk or a cd rom and now everything is in the cloud. Wherever you are in the world you can access it, but that also means your competitors can do the same. We were very early in pioneering and believing the cloud would enable us to attract even more ofa would enable us to attract even more of a set of customers. The upfront price was considered prohibitive, so we went to a monthly subscription. That caused us to get 30 more customers. For £9 99, if you have access to all the photo shop magic it has brought so many people into the platform. But even from a competitive Point Of View it allows us competitive Point Of View it allows us to compete better because we can innovate at the pace of which our product people are focus. And it is a Lwa Ys Product people are focus. And it is always updated in the cloud. That is right and you can benefit from making sure it is perfect. Right and you can benefit from making sure it is perfectlj right and you can benefit from making sure it is perfect. I want to briefly ask you about india which has developed enormously on the back of the technology wave. How do you perceive it now . Mobile is transforming everything and emerging markets like india get to leapfrog countries like the uk or the us and they are taking advantage of that. Thank you so much forjoining us. In a minute we will look through the business pages, but here is a reminder of how to get in touch with us. Reminder of how to get in touch with us. We will keep you up to date with all the inside news with analysis from Around The World. We want to hear from you as well. Get involved on the web page. We are on twitter and you can find us on facebook. Business live on tv and online, whenever you need to know. Lawrence is here to take us through the papers. If you pick up a copy on the way to work this morning in the uk or in new york, the chances are it is from pret a manger, which was founded in the uk and they are looking to float on wall street. Largely because the central evaluation would be a lot higher. If you explore that multiple, it could be worth £3. 5 billion sterling. You explore that multiple, it could be worth £15 billion sterling. This is the value of the share price at which it floats. Correct. That is normally some sort of multiple according to the sector of the earnings. 40 times would be a bit frothy. Frothy in cappuccino terms. If we were going towards the americana, it would be 15. Yes, towards the filter coffee, a sensible price for a business like this which is growing steadily, particularly in the states. Can i pick up on that love of triangular sandwiches. We were told it was a british obsession. No one else in the world does this. Clearly this is proof that it has a future. They also sell bread to the french these days. It was very early in the casual dining sector, in fact it almost kicked it off. I remember it in the 90s. It is a 30yearold business. And it has had an ethical sta nce business. And it has had an ethical stance and it gives away its fresh food at the end of the day to Homeless People which has resonated with people. And an interesting hiring policy. Yes, they have got the big eu workforce. It tried to offer free sandwiches for unpaid internships but it has withdrawn that because it was pushing it a bit too far. On that note we will all go and have a copy. Thats it from Business Live today. There will be more Business News throughout the day on the bbc live webpage and on World Business report. Well see you again tomorrow. After days and weeks of dry weather, many of us are desperate for some rain and it looks like most of us will get some as well. It is coming from the south, from iberia. This cloud has given as heavy rain and thunderstorms and that will be moving northwards, together with this humid air. That means the possibility of heavy showers. But they are rather hit and miss. More cloud coming into southern parts of england and wales. Some patchy cloud further north, but for most of us it will be dry and warm with some sunshine. 23 degrees possibly in southern england, but that could trigger those heavier showers and thunderstorms, giving localised flooding in the afternoon. But it is still very hit and miss. Temperature is 20 and 21 in the midlands and north wales. 17 20 in scotland and Northern Ireland away from the Cooler Conditions on the coast. Though showers will ease off for a while, but more showers will come in again from the south affecting southern parts of england and wales. Rain coming into Northern Ireland as well. Largely dry for scotland and Northern Ireland. 0n the whole it will be a warm night than we have had for some time. Showers will be moving further north. A few for scotla nd moving further north. A few for scotland and Northern Ireland, that they will turn drier later. Heavy showers in the afternoon in england and wales together with that warm and wales together with that warm and humid air. Temperatures could be as high as 20 or 21. Heavy rain in a short space of time may well lead to some local flooding. Short space of time may well lead to some localflooding. Still short space of time may well lead to some local flooding. Still quite a warm feel to the day as well in that humid air. A band of rain coming in from the south west and behind it some fresh air. 0vernight we could all get some rain moving its Wake Eastwards and then the temperatures dropa eastwards and then the temperatures drop a little bit, not a huge amount. The second half of the weekend we have sunshine and showers. This warm and humid air will aid the shower development. It will aid the shower development. It will be a bit hit and miss. Hello, its thursday, its 9 oclock, im victoria derbyshire, welcome to the programme. Labours leaked manifesto promises a radical agenda including plans to nationalise the railways, abolish tuition fees and tax the highly paid. The partys Campaign Co Ordinator says the leak isnt a sign of division in the party. He says he is relaxed about the leak. Leaks happen, they always happen and they probably always will. But the point is theres an opportunity now, were talking about labours policies a week in advance of when we would be launching them. Well be live in westminster with all the details. Also on on the Programme Today 0laseni lewis died after police used multiple force to restrain him in a Mental Health hospital. His parents tell us about their long fight for justice. And
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