tv Business Briefing BBC News August 8, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. in fifth gear — ride—hailing company lyft announce a 72% jump in revenues, but losses grow as well. big, bigger, biggest! samsung releases a new galaxy note smartphone, and we were there to check it out. and on financial markets, china's currency‘s strengthened a bit, easing fears. its latest trade data is out too. it has given markets a boost.
stocks at the moment are edging higher in asia. do you use ride hailing apps to get around the city where you live or where you work? if you're in the us, i'm sure you will know lyft well. it's just reported results and it has beaten market expectations and delivered an up beat outlook as well. its revenues soared 72% during the second quarter, compared to the same period last year. however, its net loss widened to just over $644 million, that's 3.5 times bigger than a year ago. when it launched on the stock market back in march, the company warned it may never make money. and since then, its share price has struggled. in fact, it's down by around 25% since that stock market debut, as investors start to question the sustainability of its business model.
that's not been helped by the resignation of several senior managers, including the chief operating officer, john mcneill, who's leaving afterjoining last year. the ride—hailing sector is seeing increased competition, therefore putting pressure on prices. investors will want to see how these latest results stack up against those of larger rival uber, which reports today after market close. rob kniaz, founder of hoxton ventures, joins me now. good morning rob. what do you make of lyft? revenues are soaring 22% in a quarter, and yet it is burning through cash and losses are getting bigger and bigger. there being their best to live up to their ipo promise that they would never make cash,
they are burning cash and they think they are burning cash and they think they can cut costs and cut the burn. investors are pleased now to at least see they are over the hump and costs should go down proportionally to growth. this was lyft basically trying to get as much market share as possible and in order to do that you have to get around at the cheapest price, it was about price at the end of the day. it's a brutal cutthroat competition with uber and in every market they've been head—to—head with them and they've been fighting with every user and spending tons on user acquisition and cost to keep prices low. if you're in a city in the us, there's not much between uber, you will either use the one nearest to you but from the point of view of a business, uber is in 86 countries but lyft is in the us and just into canada. how does that compare from an investor point of view? lyft has far less global distribution, it's a
much different company and revenues are smaller and they've missed out on important markets like london and sao paulo that are meaningful for uber. lyft chose not to play. uber has had them fight against them in the us but they've had other markets for yea rs the us but they've had other markets for years now. looking at driverless cars for lyft, they're working with google from that perspective, will that help it in the future? it's interesting there's a huge market where when self—driving karzai available, these companies will be more valuable where they will have lots of liquidity with cars in the right areas. it's a long time before these ca i’s areas. it's a long time before these cars are ready to be on the road in mass—market deployment. it might be ten or 15 years. mass—market deployment. it might be ten or15 years. is lyft mass—market deployment. it might be ten or 15 years. is lyft here to stay? i think so, ten or 15 years. is lyft here to stay? ithink so, people love it ten or 15 years. is lyft here to stay? i think so, people love it and the growth is still there and what's changed after this has been announced is prices are going to go up. there an informal detente with
oboabona they are cutting costs, the market is less cutthroat and both are going to take advantage to put prices up so higher prices in your pocket book! —— uber. oboabona's results are out later and we'll have those numbers for you. —— oboabona's results. in the last couple of hours, china's central bank set its official yuan midpoint rate below the key level of seven yuan per us dollar. a similar move earlier this week triggered a selloff in the global markets. if you recall, the dow in the us lost over 700 points that day. let's go to our asia business hub, where shara njit leyl is following the story. sharanjit, tell us shara njit, tell us about sharanjit, tell us about today's move on the chinese currency and the trade data that's come out as well. that's right, sally. it's really interesting because the central bank of china set its rate again
reasonably weakly, but asian markets seem to be shrugging it off making slight gains. part of it is there to — yuan slight gains. part of it is there to —— yuan is stronger than most a nalysts —— yuan is stronger than most analysts expect, saying the chinese central bank want to limit declines, including reassuring foreign companies that the company won't wea ken companies that the company won't weaken too much. china's daily fixing has become a closely watched event after the weak reference rate was set on monday, and that helped to trigger the huge loss you talked about on the markets as well as the biggest loss on the yuan since 2015. and it sparked concerns about a global currency war, including china the label of currency manipulator from the us, a tag they haven't had since the 1990s. you mentioned the trade data, it doesn't seem like the trade data, it doesn't seem like the trade war between the us and china is impacting china that much because
exports rose 35% injuly against is impacting china that much because exports rose 35% in july against the previous year amid expectations of a fall and imports declined by less than expected, suggesting that china has been fairly resilient to this drawn out china—us tariff for —— 3.5%. thanks, sharon tate, with the latest on china. —— thanks, sharanjit. now let's brief you on some other business stories. the trump administration has just announced a ban on federal agencies using huawei technology and services, among four other chinese tech giants. this comes at a time when america's biggest tech firms have been pressing for more clarity on what kind of business they can do with huawei. some 115,000 dairy cows could be culled in northern ireland, in the event of a no—deal brexit if new higher tariffs are applied to british milk, senior industry figures have warned.northern ireland is particularly vulnerable because about a third of its dairy output is processed in the republic of ireland, which would continue to be part of the eu. pilots at ryanair have voted
to stage a series of strikes in a dispute over pay and conditions. members of the balpa union are to hold two walkouts, one at the end of august and the other at the start of september. samsung has just launched its latest device. this is the note 10, which offers new stylus and camera features as well as 5g technology. rory cellan—jones has been checking it out. when the first samsung galaxy note came out, it seemed an extraordinarily huge device. who would want to hold something quite this big to their ear and make a call? but of course since then all phones have got egger. this phone has found an audience but each new note finds it harder to stand out from the crowd.
if you use your finger to tap it, you can select that. that's an interesting word! another feature is video anotherfeature is video mode. it means as you zoom in, the audio zooms into two. the microphone ca ptu res zooms into two. the microphone captures the audio at a distance. is it working? can you hear me? —— zooms in to two. —— zooms in to two.
you can also use the pen as a kind of re m ote you can also use the pen as a kind of remote control and take a group extra. come back here... see how it goes. there we are —— group picture. all phones are huge, it's impossible to make it stand out from the crowd, isn't it? the real iconic thing is the pen, that's the number one reason people are purchasing the device in europe because it gives them defects ability to be more productive and more creative. you had not outstanding sales figures for the latest galaxy s. you had the delay to the folding phone. how difficult a time is this for samsung when it comes to convincing consumers they need one of your mobile phones? be honest, it's quite an exciting time with new functions. it's both the hardware and software that work in tandem as well, things like machine learning and ai that work in tandem as well, things like machine learning and a! really important to us in taking the devices to the next level —— to be
honest. rory cellan—jones looking at the galaxy note ten. i'll see you in a moment. —— galaxy note ten. of youthful the nhs in england is receiving £250 million to create a national artificial intelligence laboratory. it's hoped that new a! technology could help treat conditions including cancer, dementia and heart disease. health secretary matt hancock says boosting the role of ai in the nhs could also help organise hospitals more efficiently to allow doctors to spend more time with patients. james gallagher has more. artificial intelligence is already showing its potential in medicine.
algorithms can analyse scans of organs, such as the or heart, to diagnose disease. other ais have been developed to predict cancer survival or which patients are most likely to miss appointments. health secretary matt hancock says artificial intelligence has enormous power to improve people's treatment and to save lives. he's announced £250 million will be spent on boosting the role of ai within the nhs in england. he also expects the nhs‘s national artificial intelligence laboratory to organise hospitals more efficiently to help doctors spend more time with patients. the power of artificial intelligence to improve medicine, to save lives, to improve medicine, to save lives, to improve medicine, to save lives, to improve the way treatments are done, that power is enormous. in this country, we've got an opportunity really to be one of the leading countries in the world at using this new technology. increasing use of ai will also pose challenges for the health service,
from training staff to enhancing cybersecurity and ensuring patient confidentiality. james gallagher, bbc news. that story is coming up at 6am on breakfast with charlie stayt and naga munchetty. they'll have the day's news, business and sport. plus, women and girls carrying knives. bbc research reveals a huge rise in offences in the past five years. this is the briefing from bbc news. the latest headlines: un scientists are set to urge people to cut down on meat and switch to plant—based diets to help combat climate change. president trump has visited the sites of last weekend's mass shootings as critics accuse him of stoking racial hatred. canadian police believe they have found the bodies of two teenage fugitives suspected of three murders. now it's time to look at the stories
that are making the headlines in the media across the world. we start with the daily telegraph which suggests the queen could be dragged into the politcialfallout from a no—deal brexit if the opposition labour party leaderjeremy corbyn demands to ta ke—over after a vote of no—confidence in the prime minister. the i reflects on a summer of air chaos as pilots from one major airline threaten to go on strike, ryanair, while a second suffered a la rge—scale computer glitch, british airways, that's left thousands of passenger stranded. in the uk, the times reports on a social trend that appears to be growing across the western world. new statistics show millions more adults in their 20s and 30s are living with their parents than 15 years ago.
the irish times identifies one of the downsides of smart technology. universities are recording a sharp spike in exam cheating, much of it being blamed on students wearing smart watches and smart glasses. on a positive note, the paper says cases of plagerism are on the decline. and the bbc website features an unusual drink, chernobyl vodka, which has become the first consumer product made in an exclusion zone. the website asks is it safe? what does it taste like? and could it be a commercial template for similar regions? with me is oliver cornock, editor—in—chief, of the oxford business group. that's get stuck in. there is a photograph ofjohn donald, the shadow chancellor, he is at the edinburgh fringe festival talking to an audience and a lot of what he had