in each trials purple brussels to tell us what we can and cannot do the answer is we don't so therefore british law for british people those who aren't calling for the u.k. to pull out of the european convention on human rights altogether are demanding reforms to stop strides berke making decisions on what should be sovereign issues the court press to be more focused on fundamental civil and political rights not interfering in the daily lives. and in the ministration of the criminal justice system in the member states of the council of europe without reforms there is a risk of throwing the baby out with the bathwater as nations pull out of the human rights court undermining it leaving those in countries with we can human rights protections entirely vulnerable laura smith r.t. london. r.t. this coming to you live from moscow and still ahead for you this hour the first serious signs of a rift between the u.s. and post mubarak egypt cairo says threats to halt military aid won't change its

position on the so-called crackdown on western n.g.o.s as a military delegation cut short his visit to washington. in a recent report the bureau of investigative journalism uncovered countless deadly drone strikes carried out by the u.s. in pakistan it also highlighted several quotes from president barack obama claiming the strikes only target terrorists are not civilians however the report found hundreds of civilians have in fact being killed by these cia led aerial attacks chris words to compile the report things it won't be long before the legality of using unmanned drones in that way is tested in court. cia has been saying for some time now that it hasn't killed a civilian in pakistan since at least two thousand and ten every news agency. pakistan every credible news organization that's looked at this is finding that that's not the case we know that civilians are being killed pakistan is clearly

very unhappy with the strikes there's an interview in a british newspaper today with the pakistan high commissioner to london describing the drone strikes as in effect extra do show executions state sanctioned executions does seem to be an indication that these drone strikes are happening despite what you know not because of what pakistan wants you know court has ever looked at the legality of these drone strikes and there's a reason for that every time a case has been brought in the united states that is attempted to look at whether these strikes are legal or not the united states is claiming something called state secrets privilege but that's where they say actually this is a covert operation and we can't discuss it really does need to be an accounting here and an examination by the u.s. courts about the legality of these drone strikes and the various additional legal questions that they raise and that time i suspect is coming quite close given the

pressure in the u.s. right now. it is a nearly time for the business with katie but now do remember we always have many more stories news and comment on our website r.t. dot com just a click away for you right now at r.t. dot com than a toy anonymous a group. city officials and publishers that personal data are online and comes to retaliate for the violent crackdown on occupy protests. plus it's reported that the british government is to sanction the use of nerve gas five riot police at a spike the chemical agents actually for use in war. and egyptian military delegate. has abruptly pulled out of a visit to washington and the latest sign of rising tensions between the two countries nineteen americans are among forty three n.-g. o. activists banned from leaving egypt and accused of illegally using foreign funds to fuel on rest in the country washington has already called the scandal quote

a slap in the face and threaten to withdraw its military aid to egypt it's very financial reports. egypt's new government crackdown on and you know is has raised many questions and they may want to is right now the groups many which funded by washington have been on the ground here for a while now they were at the vanguard of the uprising against the baraka that eventually brought the supreme council of the armed forces to power last february and no one has ever seems to care about their sources of income that is until they directed their criticism to the new military leadership blaming skaf for the slow pace of reform some of them are used by the other. that are quote in people who work in those and they are the ones that evolution. works when there is a. this is very much a dangerous war there are two goals this is species led to the prosecutors really seventy offices of advocacy groups forty three activists including americans

germans and egyptians are now facing trial for illegally using foreign finds to promote unrest in the post mubarak country activists how would claim they are the victim of scarves reluctance to give up power with dreaming the people about with their brights with the scaf looking for. some against the regime and all the mind the round up of activists has also netted the sun if you asked mr taishi secretary raina who further fueling tension between cairo in washington. isn't simply because. of them in a sort of plans for. i don't think that. at all in the things. so this is a game 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 or they condemned mubarak tons of times

but at the end of the day the continued on flowing that the provided support also continued on flowing. toward washington's so-called support for democracy here in the middle east and washington wants to step in laws the situation as much as possible in order to guarantee its interests they don't care about democracy meanwhile even those on the streets protesting against car share the council's concerns are being whose motives the usa has had a hand in tips policymaking for years but the whole n.t. and your campaign has become the first serious disagreement between america and the 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 for the rate any outside interference some doubts though they really minute the end to military movement growing have a bigger 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. here if you know. cairo. if you can stay with us here on r.t. in six minutes cross talk with people over for now though it's katie and the business. that welcome to the program well renowned scientists futurists have been as are in moscow discussing the russian economy and its prospects of becoming a global financial hub most of them believe russia has the results is to succeed but as marina culture of all reports not without reform. the auditorium was jam packed with business owners and experts hungry to get an outside view on russia's investment climate

a walk can be done to improve it all the foreign specialists agreed on the one thing and that is that russia has a lot of potential but the problem is how to realize it more investors are online emerging economies like russia right now because they're seeing us the best place to support cash given the economic uncertainty in europe and the u.s. at the moment of russia locks the global competitive edge and many of the russian experts here today said that the country has many internal problems which need to be fixed and some believe the government should join forces with the business elite to make the changes required that believe that it's important to convince local businessmen to invest in russia rather than the broad and keep specialists in the country as well as create an atmosphere where on supreme yours are appreciated another one of the main points they will see in the vacation russian state companies have significantly increased investment to ward stands the foreign specialists here say that russia has all the potential to produce the next

generation of entrepreneurs and become the next silicon valley but it needs to act fast and start implementing the changes required now. exploiter let's get over to the markets now we're going to start with the exchange rates the euro is high against both the dollar and the revolt investors are keeping an eye on the great debt talks an agreement from athens to impose new spending cuts without allow. to receive the next and last month of rescue funds on the ruble of highest level in five months against the dollar on the back of those strong oil prices other u.s. markets they are now open a fair business and as you can see the dow jones on the. top the dow jones up as a slightly left positive on the nasdaq is no point four percent the greek situation will remain a a major concern of the investors and the european stock market is high and again it's the greek debt talks but the main concern right the sea isn't too optimistic

there frocks a positive on the dax is half a percent. the russian markets on dow closed here in moscow the my six finished a third of a percent up by the all ts it was a point six percent. let's have a look at some of the individual and how they got on today chips did roll the world bank gained almost two percent that loophole finished higher supported by stronger crude bucking the trend was the food retailer seven continents the company made an offer to buy about shares at a discount to the market price. higher from troika doc says in fences or alert ahead of chinese inflation figures. investors are expecting. important news from china which will be released this night this is a number you for we see that inflation is slowing down. that's will create very

good sentiment many will be with will be thinking that central bank of china. lending rules and we can see more liquidity from. the us if a now i'll be back in about fifty five minutes i'm going to monitor the u.s. figures for you to join me then fifty five minutes back yet. more news today violence is once again flared up. these are the images the world

has been seeing from the streets of canada. trying to corporations are on the day. the big. now half past the hour here in moscow this is our time for you headlines russia insists that only by urging both the syrian government and opposition to lay down their arms can an end to the bloody conflict be found that's why western and gulf countries keep up with their regime change rhetoric and recall their ambassadors from damascus. fury in the u.k. as a notorious terrorist suspect dubbed al qaida spiritual leader in europe is bailed and allowed to roam the streets of london that's after his deportation to jordan

where he was sentenced to life in prison has been forbidden by the european court of human rights. questions over legality over u.s. drone attacks on pakistani soil over surface with a fresh strike now just days after a report revealed evidence that dozens of civilians were killed by america's unmanned aircraft. and the growing tensions between egypt and the u.s. triggered by cairo's crackdown on western n.g.o.s lead to an egyptian military delegation cutting short a visit to washington nineteen americans are among a group of activists banned from leaving egypt and accused of illegally using foreign cash to fuel unrest. my colleague or buildout is here in half an hour's time but for now peter lavelle and his guests discuss the internet sensation of the world's biggest social networking site facebook and its stock market flotation cross-talk is now.

well the british science. markets weiner scandal. find out what's really happening to the global economy cars a report on r.t. . if you. 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. 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 further and at the end of the day this start 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 the 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 of retirement 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 jane 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 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 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 ensure 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 haven't had a lot of competition yet with 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 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 video as you watch who your character 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 a backlash against it when you think about that jamming it's the flavor of the month right now 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 are going to go in there and they go to 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 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 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 enjoyed dress your guests last 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 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'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 face state. and. see.

well her colleagues technology innovation all the list of elements from around russia we've got the future covered. and you can. still. come across talking carol about two minute we're talking about facebook's i.p.o. . take.

and now we're joined by carrots ferry 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're looking for example at the numbers four hundred million plus mobile users that set to increase that at 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 at a half.