26/07/2012

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:00:03. > :00:13.can lay dormant for many years. Those are the latest headlines. Now

:00:13. > :00:17.

:00:17. > :00:24.for the latest financial news. Hello. This is a World Business

:00:24. > :00:28.Report. Headline is: Can Facebook live up to the hype? A severe bout

:00:28. > :00:34.of nerves ahead of the first financial results since its

:00:34. > :00:44.flotation. A management shake-up is set to

:00:44. > :00:48.take place in Japan's largest broker. The eurozone crisis shifts

:00:48. > :00:58.from Spain back to Greece. International lenders refused to

:00:58. > :01:01.

:01:01. > :01:04.sign up more funds without further In a few hours time Facebook

:01:04. > :01:08.reports its first quarterly earnings since it became a public

:01:08. > :01:13.company. Shares are down some 25% since the company's $100 billion

:01:13. > :01:16.market listing in May. With limited historical data available for the

:01:16. > :01:19.social network, the numbers are hard to predict. But nerves were

:01:19. > :01:22.seriously rattled late on Wednesday when Zynga - which publishes games

:01:22. > :01:28.on Facebook - badly missed Wall Street estimates and slashed its

:01:28. > :01:38.forecasts for the year ahead. Michelle Fleury has more from New

:01:38. > :01:40.

:01:40. > :01:46.York. Facebook has more than 900 million users. For investors, its

:01:46. > :01:56.growth appears to be slowing. The number of monthly visitors fell

:01:56. > :01:58.

:01:58. > :02:05.from 166 million last November to just over 160 million. A 21-year-

:02:05. > :02:10.old college student with a side business, this man is among those

:02:10. > :02:16.who have charted his growth. Every second of Facebook you could be

:02:16. > :02:26.having constructive business, legitimate advertising, raising

:02:26. > :02:29.

:02:29. > :02:34.sales aura awareness. When the company went public to great

:02:34. > :02:39.fanfare at its headquarters, the promise of continued growth was

:02:39. > :02:46.supposed to justify its valuation. At Wall Street there are doubts.

:02:46. > :02:50.They worry about Facebook's ability to generate money. Given how many

:02:50. > :03:00.of us are on the side, this executive this the concerns are

:03:00. > :03:07.overblown. We have 1 billion people who are addressable. I am less

:03:07. > :03:12.concerned when a personal level about the earnings. The people who

:03:12. > :03:17.were concerned about the earnings array investors. If I was investing

:03:17. > :03:21.in Facebook I would be taking a longer view that the investment.

:03:21. > :03:28.The company behind games that make money by a Facebook just reported a

:03:28. > :03:33.loss. That does not hold well Four Marks that the bird and his team.

:03:33. > :03:39.For Facebook it has been a rough ride. Share prices have fallen 25%

:03:39. > :03:42.since its first day of trading. Investors still have doubts about

:03:42. > :03:49.whether the social network can continue to grow its number of

:03:49. > :03:59.users as well as revenue. It had a lot to prove with its first set of

:03:59. > :04:01.

:04:01. > :04:11.the unease as a public company. -- earnings in after-hours trades fell

:04:11. > :04:11.

:04:11. > :04:20.to a record low. The chief executive of the Japanese company

:04:20. > :04:30.is poised to resign over an insider trading scandal. We cross to

:04:30. > :04:40.Singapore. Tell us about this news. Another Maitland shake-up. You have

:04:40. > :04:41.

:04:41. > :04:49.the C E O set to resign to take responsibility for lease of

:04:49. > :04:56.information to clients. The company confirmed it was a source of leaks

:04:56. > :05:01.and planned offerings by an energy company. It is currently awaiting

:05:01. > :05:08.possible sanctions from financial's -- Japan's financial services

:05:08. > :05:16.agency. Some asset managers have stop trading with the firm. It has

:05:16. > :05:26.been left of the government's sale of $6 billion worth of shares. The

:05:26. > :05:30.

:05:30. > :05:35.departure throws open the We will give an eye open for that

:05:35. > :05:41.story. The British government is using the Olympics to attract

:05:41. > :05:45.billions of dollars worth of business to the UK. It is turning a

:05:45. > :05:49.building near Buckingham Palace into Webb business and deceive.

:05:49. > :05:57.Thousands of entrepreneurs are being invited along in the hopes

:05:57. > :06:02.they will invest large sums into the British economy. High on the

:06:02. > :06:07.list for Chinese entrepreneur as visiting London is a tour of an

:06:07. > :06:12.upmarket department store. It is a group being targeted by the UK

:06:12. > :06:16.government as potential investors. Some might be keen. Most of my

:06:17. > :06:25.friends in the business world, they think that if they have a nice

:06:25. > :06:28.chance to invest here or may York they would do it. To encourage such

:06:28. > :06:36.investors, my guest house is being turned into way British business

:06:36. > :06:43.and the sea. -- Lancaster House. Over the next few weeks there will

:06:43. > :06:47.be no fewer than 17 some it's here. It starts with a global investment

:06:47. > :06:57.conference. Over 4,000 foreign business people will come here. It

:06:57. > :07:02.is hoped they will invest $1.5 billion in the British economy. One

:07:02. > :07:05.example is the reconstruction of a power station. The government

:07:05. > :07:13.estimates the UK would get $20 billion worth of benefit from the

:07:14. > :07:23.Olympics. We're not quibbling about specific numbers. A lot of thought

:07:24. > :07:24.

:07:24. > :07:28.has gone into the area. It is plausible and realistic. Later this

:07:28. > :07:33.week the Chinese will get their own summit at Lancaster House before

:07:33. > :07:37.watching the opening ceremony. That will be a reminder that the UK

:07:37. > :07:47.needs to see $14 billion worth of foreign cash to break even on the

:07:47. > :07:47.

:07:47. > :07:57.Olympics. Europe's top oil producer is among the big names reporting

:07:57. > :08:00.

:08:00. > :08:03.second-quarter earnings. Its US rival will report later. Lloyd's

:08:04. > :08:08.banking group is also revealing how its profits are looking at the

:08:08. > :08:17.moment. Shareholders are bracing for a drop in second-quarter

:08:17. > :08:24.profits. They will face questions over their role of the in the LIBOR

:08:24. > :08:31.rates. The eurozone's biggest bank could series down by 60% as it

:08:31. > :08:36.rides of the value of some of its real estate assets. They will put

:08:36. > :08:44.off the bulk of these write-downs until the Willoughby year. It will

:08:44. > :08:48.make a profit of 3 billion euros in the first half of the year. Now I

:08:48. > :08:52.look at what is going on as far as markets are concerned. The focus is

:08:52. > :09:00.very much on Greece and what is going on there. These markets are

:09:00. > :09:03.fairly flat at the moment. We will brief York in what is going on. The

:09:03. > :09:11.President of the European Commission will visit Athens for

:09:11. > :09:17.the first time in three years. It is a gesture of support and the

:09:17. > :09:25.Prime Minister is desperately behind on finances. The euro is

:09:25. > :09:35.languishing today at multi-year lows. It is based on the news that

:09:35. > :09:39.

:09:39. > :09:49.the IMF may not release further bail-out Murray to Greece. I enjoy

:09:49. > :09:50.

:09:50. > :09:58.and the smack I am joined. Real What can we expect in the near

:09:58. > :10:01.future? They are putting off more money until they visit in September.

:10:01. > :10:06.September will be the big month. Right now everybody is putting

:10:06. > :10:14.pressure on everybody. The Germans and the IMF are putting pressure on

:10:14. > :10:24.to deliver to the reforms. Greece is say the recession is deeper than

:10:24. > :10:24.

:10:24. > :10:33.they had anticipated in March. They say the programme is of track. We

:10:34. > :10:37.have for a renegotiation going on already. Before September, when the

:10:37. > :10:42.rescue fund is in place and the Europeans will fill more

:10:42. > :10:49.comfortable that they can deal with a further great crisis we will not

:10:49. > :10:55.see their decisions. They're now saying it is inevitable that Greece

:10:55. > :11:05.will exit the single currency. What is your thinking on that? September

:11:05. > :11:15.is quite a way away. We have the whole month of August than of us.

:11:15. > :11:15.

:11:15. > :11:23.This can cause all sorts of damage in the other countries. It is a

:11:23. > :11:30.serious situation. It is unlikely that America would put another vote

:11:30. > :11:35.on another bail-out for Greece in front of us Germany. With there is

:11:35. > :11:39.no vote the what BA bail-out. Is there is no bail-out race will have