and there it was military aid to egypt reaches one point three billion dollars annually has been very serious there has been weeks to condemn this car when in the days of blank checks are over over the condemned. but at the end of that the continued on flowing that the provide that support also continue. or washington's so-called support for democracy getting that in the east washington wants to stop it always this. as much as possible in order to get in to its interests they don't care about democracy meanwhile even those on the streets protesting against car sharing the council's concerns are being whose motives the usa has had a hand in tips policy making for years but the whole n.t. and your campaign has become the first serious disagreement between america and the country's new authorities 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 rate any outside interference some doubts though they really minute the end

to military movement growing have a big if you can see it over there this is in 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. in our team in cairo. he is coming to you live from moscow where it's an hour just turning twenty minutes past the hour on the brink of bankruptcy greece has missed its fourth deadline this week to present a draft debt deal to parliament leaders with hopes that it may finally do so later today however getting approval may be difficult more than ten thousand greeks are out of the parliament on tuesday clashing with police while protesting the latest reforms when you see their livelihoods and the country being sold out with little benefit for the. parliamentary opposition is also strong with deputies wary of more

cuts and tax hikes expected to accompany the deal greece has until march to secure financing or face but according to investment adviser patrick the use hopes of a positive outcome continue to fade far east. this is truly finally the brink we are on the cusp of the great eurostar and of the troika are the group of people the world bank the i.m.f. the european union people they're all at the point where they know there is total exasperate in the rest of the world as to why they should be paying for a greek economy and the greek state that is totally completely and utterly by corrupt has been completely and utterly mismanaged for decades and ultimately tragically the greek people themselves are going to end up suffering as they already are the problem is it all went wrong because a group of rather well rather heads in the sky kind of dreaming pie eyed individualists saw that there could be one single europe and they rushed to

compress everybody into a single currency and ultimately none of the countries were actually remotely compatible economically in order to make that giant leap that's where it's going wrong and this is a tragedy for europe and the european union. nearly time for the business with kareena but for now let's check out some other international news in brief. all three a.t.c. projects are to be inspected after quantas found a hairline cracks in the airline is wings manufacturer of the world's largest passenger jets so the repairs will be carried out if the damage is found last month european safety regulators ordered checks on a third of the fleet of the cracks were discovered in parts of the wing on one plane singapore airlines emirates air france are among the airlines using these jets. sixteen people have been pulled out alive from a collapsed pharmaceutical factory in la as rescue workers continue dozens of still

believed to be trapped under rubble with the death toll now at twenty one a three story building collapsed monday after several gas cylinder explosions the factory which local authorities had been trying to shut down was set up illegally in a residential area over the whole. all right in just a few minutes here it's time for opinions to clash as usual on our t's crossed talker this time people bringing up the issue of facebook's i.p.o. after the business news like i said now it's time for korea. hello and welcome to our business good to have you with me russia's outstanding domestic debt grew in two thousand and eleven at the fastest race in fifteen years the money the state owns 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 in the year before despite the increases the government plans to

continue raising the debt limit and it has plenty of room to do so russia's debt to g.d.p. ratio is around ten percent which is one of the lowest among industrialized countries . that brings us to the markets no xchange rates for us the you there euro is flat against the dollar investors are keeping an eye on the greek debt talks that would enable the country to receive its next load matilde west you funds here in russia the ruble hasn't bounced against the dollar so it's highest level in five months on the back of stronger oil prices. oil is up for the second day afternoon and industry report showed that crude stockpiles fell in the u.s. it is up over ninety nine a half dollars trancing over one dollar now while brant is trading at over one hundred sixteen dollars a barrel stocks in europe are higher as greek officials profession finalize a deal on a sturdy measures banks across europe pushed higher in london lloyds banking group

gained one point eight percent barclays moved up one and a half percent mining stocks are also rebounding after sustaining losses only in the trading week. and here in moscow markets are up and midday trading with banking and energy stocks lifting the indices on oil prices the r.t.s. is up over one percent while six is over half a percent and the black. now let's have a look at some individual shammal some of my sex spare bank is gaining over one and a half percent russia's biggest lender expects the corporate loans to expand twenty five percent this year look oil is also high as supported by stronger crude bucking the trend though is food retailer seven continental the company says it will buy back shares with a discount to the market price into weston from tong says it's a good time for short term investments as russian stocks are currently trading at a discount in a number of sectors. for the first time i think again since two thousand and ten

that the end russia looks like to actually attractive so this should be fundamental to full support for russia in my view at least short term but if you have the most important thing is not a cool. two thousand and twelve we will turn around the some point we would have another big downturn but this moment of can probably last for a month month and a half i think we have to look into march we're going to have elections and it's a very difficult agenda with regard to europe meeting selections and also debt payments in march that could turn it around. russian government wants to make its global satellite navigation system a big hit at any cost almost twelve billion dollars could be spent on russia's answer to the us g.p.s. system by two thousand and twenty the program had been approved by the space agency and the economics ministry and is now awaiting government's approval thirty one satellites are in orbit at the moment and russia plans to increase the number to thirty six in just eight years. russian firms us flashing record

amounts on advertising despite the crisis prices for billboards commercials on t.v. campaigns are expected to grow as the economy continues to strengthen katie povey has the details. they say a picture is worth a thousand figure likely to look like this one block to close ross 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'm lucky to have a good company pool out of los angeles by the rocks an appetite like the beak is big. enough to live by. market china india and brazil and also there's a big o. thing i like to tease going on the big children including the printing on

champney's ink badges to train the answer came off going on around the trade these are likely to try to beat the mud still spending bills like the one all modern presidential election would like me. tonight. right here on television if you'd like to thank them say benefit from a presidential election which is about three a week and these people these politicians love to the right to each other across the page. it's not a different story to europe of course the time to talk up the advertisement dot com so when it played the thought hey i like the tweet painting it down this season and that would be a live shot and leave but it comes up like i said this is set to lay down to twenty two hours but the internet to look up twenty percent of will be just that day. but

that's all we have for this hour but remember you can always find more stories just log onto our websites r t dot com slash business thanks for watching.

from los angeles to chicago to birmingham twenty trauma centers have closed since two thousand severe problem is not enough inpatient beds not enough heard emergency department beds and not enough nurses commandoes that to take care of all the people who are here the only real health care system that we have in the city of los angeles is the los angeles fire department in fact when i started my venture is a firefighter i didn't want to do your mass and i started out going to just do fire fighting it's about eighty two percent of what we do the far the problem is medical but they had a rescue couple weeks ago waited for hours for a bit i've waited sometimes three hours but i wouldn't say it's a francis and we went for four hours and fifty minutes standing against a wall with patients and we have a federal law that mandates that you can't turn no one away who seeks care and

emergency room. we have the most expensive health care system. and it's probably value the least. here in the russian capital this is. the headline polar approach to the syrian. stepping up its rhetoric for regime change in syria ignoring moscow's attempts to bring both the opposition together for peace talks. the rift between the e.u. . the european court of human rights the release. and washington's top military official will head to cairo to try and criminal

charges against american. military leaders to crack down on the western activists who helped bring them to power last year. stay with us if you can hear on our. guests about the stock market flotation of the world's biggest social media site of course facebook. despite public ownership and how many millionaires will it create overnight is now. well see british scientists are. not out to cause. markets weiner scandal. find out what's really happening to the global economy in these kinds of reports. and you can.

follow in a welcome to cross talk 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 out 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 pipe good i.p.o. 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 it'll 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 everything is going to other price for it 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 common sense being. touted 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 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 i've been dollars and so 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 james look 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 it because you know institutions are 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 institutional investors if they are going to buy buy a lot more shares in individual might buy one hundred to one 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 precedence out there we look at the tech sector and what the most well known ones are google and america online which why would 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 potentially 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 are more choice going forward they haven't had a lot of competition yet but those days are ahead of them and now they're going to

see you know we have to see how they're going to react to that it's interesting you point out in russia facebook is not particularly popular it's here but when there's 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. well 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 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. well 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 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 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 in people 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 or at least most of them do and of course the advertisers want to know as much as possible 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 you'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 audit's 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 getting to be a little bit too much i think people are starting to have a little bit of 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 got to go in there and they've got to want to be very aggressive because i want this company to perform in the valuations are very high and 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 and terms of it doesn't bother me if. google or facebook or linked in. able

to tell some advertiser i'm one. forty seven thousand and nine and this ip 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 traveling. 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 an image just a number that doesn't bother me. on the other hand if you've got some government that 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

going to i'm 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 had as a dress your guests last point in. time. and the fact that you know you could be on facebook is tracking what you like and what you do at work somebody walks by and sees you want facebook on your monitor and on the side 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've been 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 our.

it's.

and. welcome back to rostock i'm carol going to mind you we're talking about facebook's

i.p.o. . and now we're joined by garrets fieri in philadelphia he's founder of market tamer dot com if i can go to you first gareth 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 got an i pad or something like that and facebook gets zero revenue from that if 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 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 when 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 agile.