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tv   [untitled]    February 8, 2012 2:18am-2:48am EST

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one point three billion dollars annually has been very serious there has been quick to condemn scarf worn in the days of blank checks are over or they condemned mubarak tons of times but at the end of the day the continued on flowing that the poor mother support also continue flowing we don't buy or washington's so-called support for democracy getting that in the east washington wants to step in always the situation as much as possible in order to get on to its interests they don't care about democracy meanwhile even those on the streets protesting against car share the council's concerns about the engine whose motives behind them are short of the money we support the police and the army industries in these organizations because it's for good men that agree some kind of suspicion that these are going to zation work according to fooling agenda that harms egypt's interests i'm against that the usa has had a hand into its policy making for years but the whole n.t. and your campaign has become the first serious disagreement between america and the
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countries your story takes cairo wanted to send washington and message that it's no longer the silent dog it was under mubarak but an independent state which will last so the right any outside interference some doubts though they really minute the end to military movement growing ever bigger you can see it over there the supreme council of the armed forces or scaf now running egypt is in a very vulnerable position and this nationalistic pronouncement may just be a nationalist show put on to calm the people down and to win back a shred of credibility. here if you are to cairo. regime change an agent has a severed previously well established ties between cairo and tel aviv and this as as a real continues to take steps that further isolated from their of at least neighbors policies that some former government verse strongly oppose coming up next hour a former senior tel aviv diplomat shares his views on the matter here's
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a preview. the right for. profit. public mood on you defense issues and i think a lot the both a lot of what you say about you are wrong. and i'm. very angry about this i think it should be stopped it once it is very obvious that iran is pursuing. its position as a regional power but primarily the fancy primarily it responds to. iran to pick the. ukraine is not the only country stuff or in harsh weather a strain only is also feeling the full force of nature large parts of eastern australia remain in the grip of floods as waters have started reaching people have
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thousands of people have been forced from their homes and it's feared up to ten percent of the country's cotton crops have been damaged this trail you being the world's third biggest supplier queensland state premier says people won't be able to move back to the area until water levels drop and sewage systems are restored. fifteen people have been pulled out a line from the collapsed medicine factory in lahore as rescue workers continue fifty six are still believed to be trapped under rubble with the death toll now at twenty one the three story building collapsed monday after several gas cylinder explosions the factory which local authorities have been trying to shut down was set up illegally in a residential area of the whore. previously on released footage broadcast by north korean state t.v. shows the country's leader kim yon own and his late father and pretty assessor a young leader took the reins after kim jung il died in december of heart failure
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is now reportedly striving to assert his power over the people in the states and one show military by making it official visits and presenting some ball gifts to serve as. well in just a few minutes opinions clash in our t's crossed august paedophile brings up the issue of facebook's i.p.o. that's after the business news with korea that's next. it's twenty two past eleven am here in moscow welcome to business here in r.t. russia's outstanding domestic debts grew in two thousand and eleven at the fastest rate in fifteen years the money the state owes to the population has tripled over the last three years in two thousand and eleven domestic debt rose forty two percent or one hundred forty billion dollars that's on top of a forty percent advance the year before despite the rally the government plans to continue creasing instead burden it has plenty of room to do so russia's debt to
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g.d.p. ratio is around ten percent one of the lowest among the developed countries. most of firms are splashing out record amounts of advertising despite the crisis prices for billboards commercials and t.v. campaigns are expected to grow the russian economy continues to strengthen katie pilbeam of the details. they say a picture is worth a thousand figure likely. like this one block to close wraps up in twenty twelve and that's because advertising is telling big as the russian economy cries out this is. advertised that according to stuff i've market intelligence company. out of love on. the rocks an appetite like the toilet the big. bang said a mouthful live by. market page china india and brazil
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and also there's a big oh thing i like to tease going on the big chill of the pleading the cramming and champions think back to train at the end came on sky and brown madrid these are likely to try to beat the mud still spending bills like the one all modern presidential election would like me. on a night. right here on television like this. thank them same benefit from a presidential election which is about three eight pete and these people these politicians love to the right money each other across the page and why it's not a different story for a year with one time to talk enough then advertisement not to be caught oh manipulate the thought say i like the three writing it down this season and then when i'm not out of a only show and leave time when it comes to online advertising this is that night down to twenty per hour but the internet to look out twenty percent of the media
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that day. let's have a look at the markets now exchange rates first the euro as flat against the dollar . and best as i keeping an eye on the greek debt talks they would enable the country to see what's next as a moment of rescue funds here in russia the ruble has advanced against the dollar to its highest level in five months on the back of strong or. ok let's let's look at oil higher for the second day after industry reports show that crude stockpiles fell in the u.s. . over ninety nine dollars advancing seventy nine cents this hour while brant is trading at over one sixteen dollars a barrel. asian stocks are moving higher with sentiment helped by progress towards a greek debt deal and another boost is coming from corporate results toyota stocks rallied almost four percent after the carmaker reported a foreign coralie profit but raised full year earnings target all the japanese
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automakers followed moscow surged over seventy percent at honda motor at a two point seven percent hong kong stocks are also on the rise up to china's central bank said it will support the first home purchase. here in moscow markets open higher the r.t.s. is up over one and a quarter of a percent while the wise it's just under one percent in the black energy majors are boosting the indices on. that high oil prices people western from the times best in baghdad look to us. if we have good news on the move higher during the day but i think you know coming back from a sort of negative day yesterday we could start to be a little bit lower but then people would sort of look through the news and you know i think there's two momentum in the market for a higher level before we go lower again so i'm fairly optimistic about the next couple of days trading unless we have some very sort of significant news out of
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greece. let's have a look at some individual channels on them isaac this hour porter's gold is four percent lower now trading on profit taking after surging the more more than fifty percent investors bet its london listed parent will make a buyout offer food retailer seven continent is in the red after saying goodbye back minority shareholders with a discount to the market price and russia's largest oil company is the black hawk of what. the russian government wants to make its glowing us satellite navigation system a big hit at any cost almost twelve billion dollars could be spent on russia's answer to the u.s. g.p.s. system by twenty twenty the program had been approved by the space agency and the economics ministry and is now waiting the government's approval around ten billion dollars we spend on both support and development of the system thirty one are in
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orbit right now and plans to increase the number to thirty six and just. well that will keep you up to date so i'll be back in about fifteen minutes with. culture is that so much money in which of course you write on example you're not a facebook initial public offering is being called a very big deal and many hope the i.p.o.
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will lift the entire tech sector but is the. wealthy british style. expert on the tireless. market why not come to. find out what's really happening to the global economy with mike's cancer for a no holds barred look at the global financial headlines tune in to kaiser report on r g. but i'm defining it as a strike for thirty australia and you know the telly i know they're still on the way thank you so you get to among the stories yeah if you want to have sex go and have sex.
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welcome back you're watching our q live from moscow these are the top stories of breathing life into hopes for a peaceful solution to the syrian crisis russia's delegation to the country sees signs the both sides are ready for dialogue. between the e.u. and the u.k. grows into a kassam after the european court of human rights orders the release of a solid in the audience right hand man in europe. and washington stop military official have to try and suspend criminal charges against american ngo members as
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egypt's military leaders crack down on the western activists to help them to power a last year. the slow top stories here in r.t. up next pete all about asks his guest about the stock market flotation of the world's biggest social media site facebook and maintain its i use a despite public ownership and how many millionaires will be created overnight find out next on crosstalk. wealthy british style. ties. margetts weiner scandal. find out what's really happening to the global economy cars a report on r.t. . if you.
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follow in the welcome to crossfire i'm peter lavelle facebook's initial public offering is being called a very big deal and many hope the i.p.o. will lift the entire tech sector but is the i.p.o. a good one public ownership of facebook negatively impact the company's success and is it a profitable investment. if you. start . to cross-talk facebook's i.p.o. i'm joined by jay ritter in gainesville he's a professor of finance at the university of florida and in toronto we cross to peter leeds he's a financial analyst and publisher of the peter leeds newsletter or a gentleman cross-talk rules in effect that means you can jump in anytime you want and i really very much encourage it if i could go to peter leeds in toronto on the face of it is this going to be a good party good i.p.o.
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will be successful and is it a good long term investment. this for me on the show peter i think first the price is going to go up i think to be successful i.p.o. on first glance but then you're going to have to look at the valuation ratios you know it's going to one hundred times earnings twenty five times revenues that's way too high we think a lot of people are going to jump into it just because it is facebook and we think it's going to other price further and at the end of the day this stuff over time will start coming back down jay what do you think about that i mean more hype than a common sense being. made here when we look at this i.p.o. i mean obviously facebook is very very popular but is that its popularity reflected in its valuation. i think peter's scenario is very plausible with the huge brand name recognition it's possible that investors are going to drive up the price especially since a relatively small percentage of the company is being sold at the valuations that
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people are talking about one hundred times sales twenty five hundred times earnings twenty five times sales the long run upside for investors that is a limited ok if i go back to peter in toronto i mean last year facebook generated i don't want three point seven billion dollars eighty eight percent up from the year before those kind of numbers are not sustainable are they. well what's going on in north america you have to divide it between developed nations and developing nations development north america for example europe they've pretty much got critical mass there they're not going to get a lot more people anybody who's on facebook is going to be on facebook is already there there's a lot of room for growth all the growth is coming from developing nations now russia india china but the problem with that is that they're not able to convert that into the same degree of revenues from the advertisements it's in tory's for not driving as much advertisement spending of retirement dollars and so
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a lot of the growth may be behind facebook and going forward it might have a little bit of trouble getting to the next level ok jay walker who's going to buy this stock i mean you can see institutional investors i mean pensions i mean individuals who do you think it's most attractive to him because you know institutions are not really represented on facebook i mean people are ok is it the people that are on facebook to be interested in the stock do you think. this is some of them with over eight hundred million users it doesn't take a bit very big percentage of them to be interested but the reality is institutional investors if they are going to buy buy a lot more shares an individual might buy one hundred two hundred even five hundred shares but an institution might be buying a million shares five million shares and a lot of institutions are going to be buying ok peter i mean is there some
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precedence out there we look at the tech sector and the what the most well known ones are google and america online which way what president do you think facebook might follow or will it be just unique. it's going to be unique but they are going to have a lot of competition from google plus google's decided to get into the social media space and they're going to do that pretty aggressively and overseas they've got a lot of competition too from brazil and china india you know these are these are nations where they have a platform there that they're going to start leveraging their platform to tension we users away from facebook facebook tori's problems trying to get into china at all so you're going to have a lot of people who more choice going forward they haven't had a lot of competition yet with those days are ahead of them and now they're going to see oh we have to see how they're going to react to that it's interesting you point that in russia facebook is not particularly popular it's here but there's
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a russian version that many people are very attracted to jail if we could if we can look at the emerging markets one of the interesting things is and we advertising dollars is a big part of the future of any company like facebook in emerging markets people do not necessarily are attracted to the to the ads because they're there they're spending ability is much more limited than let's say in north america or the english speaking world i mean is this something that's being played into it you can grow the numbers but you're not going to get any revenue from them. there's both the issue of how many users and then the revenue per user the per capita income growth in certain emerging markets does result in a lot of long term upside potential. lower middle income consumers rise to be middle income and higher middle income consumers the bullish case for facebook is actually based upon the google model where google
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has demonstrated that a lot of money can be made on targeted search it's a very efficient form of advertising and google has been able to grow its revenue per user very substantially facebook has a lot of that upside potential as well but things could go wrong. while america online had a very large market share fifteen years ago and largely faded research in motion with blackberry had a very big market share a couple of years ago and they've run into some tough times so with facebook they they've got a wired and growing potential market a case can be made that they're going to be as successful as google generating
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profits. of nine point seven four billion dollars just thirteen years after being founded but on the other hand they could fall off of that growth path as well and that's the problem with the very high valuation that people are talking about that that it's that optimistic growth path built into the price and it doesn't. possibility that they're going to fall off of that growth path targeting advertising is very interesting peter because on facebook particularly there's the privacy issue when people are getting more and more sensitive to that issue and targeted advertising is the contradict is a antithetical to privacy is this something that investors should be worried about and thinking about because the the users of facebook want their privacy at least most of them do and of course the advertisers want to know as much as possible
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about these people and you know that facebook is going to have to make a decision maybe even make a compromise which could also hurt its image and maybe its popularity. that's an excellent point peter what's going on right now think of it like a seesaw where on one side you've got google or facebook trying to maximize their advertising targeting by watching everything you do on the other side of the teeter totter you've got people who are tired and weary of all their actions being tracked and most recently we've had all sorts of backlash in terms of privacy issues with the issues and with the google problems and now you've got you know facebook's tried to address this by having you know twenty or twenty years of audience with the f.c.c. for privacy they've also change their privacy laws but at the end of the day people don't trust the internet when they go on there and when they're going around on facebook it's tracking what books you like what videos you watch who you are who your friends are and it's going to be a little bit too much i think and people are starting to have a little bit of
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a backlash against it when you think about that jamie it's the flavor of the month right now but as we go down i mean people are going to invest in this company because they want to make money not just because they like facebook maybe there's an overlap of the two but people get to go in there and they don't want to be very aggressive because i want this company to perform in the valuations are very high they want the valuations to meet expectations do you think that you know this is facebook's going to have a real challenge in dealing with the privacy issue and with sales because there's high expectations here like we haven't seen for a while. well with the privacy issue. there's kind of an anonymous lack of privacy in terms of it doesn't bother me if. google or facebook or linked in. able to tell some advertiser i mean one of forty seven thousand and nine and this ip
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addresses that have some of the following characteristics in terms of my age a rough guess for my income level and the fact that i subscribe to several business magazines and do a lot of international travel and. you know if it's not identifying me by name does it bother me that some targeted ads get sent my way and that i don't get that i have absolutely no interest in. you know in terms of that and the name it is just a number that doesn't bother me. the other hand if you've got some government is demanding. we want the names behind the ip addresses that's another issue ok peter jay told me before the program he's not. on facebook and you're on facebook i mean do you check any of the ads you click on any of the ads on facebook. i never have i never enjoyed dressed your guests last
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point in. it in the very you know you could be on facebook it is tracking what you like and what you do at work somebody walks by and sees you on facebook on your monitor and on the site is a whole bunch of ads that are going to be related to what you like you might not want that person to know that you are interested in overseas vacations or whatever it may be and so there's a bit of a privacy breach there i think because it's going to put ads that are appropriate to what you're looking at on your facebook page for people to walk by and see ok gentlemen we're going to go to a short break and after that short break we'll continue our discussion on facebook state party. and. see.
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if she. leaves. and you can see the sun it's. slowly. coming to cross talk i'm going to mind you we're talking about facebook's i.p.o. slim. and you can see the sole.
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and now we're joined by its very in philadelphia he's founder of market tamer dot com if i can go to you first in philadelphia thank you for joining us here one of the things we're talking about earlier in the program is the facebook's ability to expand one thing that's very interesting about the eight hundred forty million forty five million users that half of them go for use the facebook from mobile instruments you know i go on i pad or something like that and facebook gets zero revenue from that if it people are accessing it from their telephone is this going to be have to be the next major breakthrough for us for facebook and other social networking because i'm not going to pay for advertising on my telephone i don't know anyone who will. well i think what's interesting about facebook is they can actually generate money even if people are not clicking so they can generate from brand awareness just by impressions being placed on phones so if you
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are looking for example at the numbers four hundred million plus mobile users that set to increase. the rate they're generating returns from the regular platform which is about five dollars close to five dollars per user if they can figure out how to monetize that channel that's potentially another four hundred million times five that's two billion dollars in returns and revenues to the top line that they can generate which would increase their revenues from current levels by almost fifty percent you know that would be very good news peter if i go to you you know and we look at the business model that facebook has right now and it's been very profitable very successful but as we mentioned earlier in the program it's not sustainable because you're not going to have you need a lot more users that you know a multiple of or have a much more and add generation when it comes to revenue is is facebook and i have to find another breakthrough in social networking to really match the expectation.


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