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15.30 IMF will send people to Cyprus next week for initial talks with authorities on a programme. But Cyprus said that its low corporate tax rate is not up for discussion with European officials when thrashing out terms of a bailout from its eurozone partners.
IMF also says it will listen to Greek government's views on bailout programme. Says Greece can manage its budget for 28 days without the next loan.
15.13 Russian President Vladimir Putin has ordered his government to put aside billions of dollars in next year's budget to protect the country's vulnerable economy in case of a new economic crisis.
We must take into account any scenarios for the world and Russian economies and have the instruments and possibilities to react. Therefore I ask you to put into the coming year's budget enough reserves to realise anti-crisis measures, if, of course, the need arises.
15.08 Jorg Asmussen, member of the executive board of the European Central Bank, says fiscal pact and ESM ratification must be finalised quickly. Sees no risk for Germans' savings.
15.03 Irish finance minister Michael Noonan is hoping for upside in growth in the second half of this year but this depends on Europe. Adds that country is in a "rolling" negotiation with Troika on bailout programme. Says European countries that are running budget surpluses should be spending.
14.54 BREAKING NEWS...
EU officals have said EuroGroup Jean-Claude Juncker will stay on in his current role, while EFSF chief Klaus Regling will become head of the new permanent ESM bailout fund.
14.52 And here is the very dapper Belgian Prime Minister Elio Di Rupo arriving at the EU summit in Brussels:
Ten minutes into trade, the Dow Jones Industrial Average was down 104.75 points (0.83pc) at 12,522.26.
The S&P 500 index dropped 9.94 (0.75pc) to 1,321.91, while the tech-rich Nasdaq lost 28.58 (0.99pc) to 2,846.74.
14.36 BREAKING NEWS...
Spanish parliament approves 2012 austerity budget.
Prime Minister Mariano Rajoy's government has vowed to cut the deficit from 8.9pc of output last year to 5.3pc this year - but even the IMF has said Spain is likely to miss the target.
14.24 Herman Van Rompuy, President of the European Council:
He adds: "Reviving growth in our economies and creating jobs, especially for young people, requires immediate action. Restoring confidence in our currency calls for stability today and a credible perspective for the future. That is why both our work on growth and jobs and our reflection on the future of the Economic and Monetary Union are crucial at this stage."
14.20 Prime Minister David Cameron has voiced frustration that progress on tackling the eurozone crisis was advancing at a snail's pace but stressed Britain's place was on the sidelines.
Speaking at the EU Summit, he said:
I know people are frustrated that these summits keep happening and not enough decisions are made. These are hard decisions for the eurozone countries to make and we should be encouraging them to go ahead.
"Of course, we're saying to the eurozone countries, they do need to do more things together to strengthen their currency and make sense of their currency but Britain is going to stay out of that.
"We want Europe to work for us as a single market, as a place where we trade, as a place where we cooperate and I'm going in there to make sure we get the safeguards to make sure that can keep happening.
14.17 EU officials say leaders expected to discuss activating the eurozone's bailout funds to buy Spanish and Italian bonds in the primary market.
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14.06 Spain retaining their European Championship football title would benefit the whole of the country at a difficult time in its history, the national coach Vicente Del Bosque has said. Spain are through to Sunday's final after bating Portugal last night on penalties.
If we can do it... I believe that it will be beneficial not just for football but for the country in general. It will send some signals to the country that we are going in the right direction. And if the success can be transferred into society, that would be marvellous.
13.59 A Greek bank worker has plunged to his death from the Acropolis, in what police said could be the latest in a growing number of suicides caused by economic suffering in the debt-ridden nation.
The man was in his 40s and worked at Greece's troubled state-owned agricultural lender ATEbank. He took a break shortly after starting work in the morning but never returned, police said.
13.38 Telegraph's Bruno Waterfield is with Cameron at the EU Summit:
13.33 BREAKING NEWS...
US initial jobless claims (first time claimed unemployment benefits) at 386,000 in the past week (analysts expected 385,000). This is a fall from 387,000 the previous week.
13.30 David Cameron arrives at the EU Summit:
13.09 French PM Francois Hollande says he sees "very rapid" aid for states with market problems.
Speaking on his way to a crucial EU summit in Brussels, Hollande said there was a need for more "solidarity" in dealing with the eurozone's debt crisis.
Meanwhile, Dutch PM Mark Rutte says the only way forward for Spain and Italy is to continue with reforms. Adds that he is looking for a gradual approach to the transfer of national powers, calls for shared European oversight of markets and banks and opposes transfer of national policies
13.07 Outgoing Greek finance minister Giorgios Zannias is to be appointed chairman of the the National Bank of Greece.
12.53 Tight security at the EU summit:
12.44 The Telegraph's Bruno Waterfield is at the EU Summit:
Italy and Spain are screaming with the pain of soaring borrowing rates and are sounding the alarm over their ability to get finance from the markets.
Italy wants some “solidarity” in return for pushing through controversial pension and labour reforms, Rome wants help to bring down spreads, currently at 6pc.
Spain is warning that if borrowing costs remain at around 7pc it will go bust. Madrid wants its eurozone bailout paid directly to banks, helping its balance sheet and thus driving down borrowing costs.
But Germany in the person of Angela Merkel is not for blinking – as the Handelsbatt, the German business paper, headline proclaimed this morning: “Nein! No! Non!”.
12.39 European Commission Vice-President Olli Rehn hopes the EU Summit will take the decision to help stablilise markets in the short term.
12.36 Bill Gross, co-founder of Pimco, believes default or reflation are the only cures for the debt crisis.
12.30 Italian Treasury's chief economist says PM Mario Monti's proposal at EU Summit to cut bond spreads is "probably not achievable" and Europe "shouldn't necessarily expect very big results from event".
12.25 George Osborne has said the FSA uncovered "systemic failures at the heart of the financial system".
Follow our live blog on the fallout from Barclays' fine for Libor manipulation. Barclays' share price has fallen more than 10pc today.
12.20 After an earlier rejction of eurobonds Germany's finance minister Wolfgang Schaeuble says Berlin is willing to negotiate, but must have fiscal union as a pre-condition. Urges eurozone members to use the EFSF to buy bonds.
Spanish PM Rajoy hopes Summit will take decisions to help lower Spanish borrowing costs.
12.08 We are hearing reports that two medical orderlies with a stretcher and oxygen tanks have been led to the EU Summit.
12.08 Irish finance minister Michael Noonan says one of the main topics of EU Summit will be how to get ITalian bond yields below 4pc - they are currently above 6pc.
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FTSE being dragged down by banking shares after the Barclays fine.
12.00 We are running a seperate live blog on the fallout from Barclays' fine for Libor manipulation. David Cameron has said that the bank has "serious questions to answer".
11.58 Ernst & Young ITEM Club on the UK economy:
A recession may have been averted, but this year’s growth is likely to be lower than last year’s depressing 0.7pc. The ITEM Club’s forecast sees growth at just 0.4pc in 2012 and not returning to trend until 2014.
Central bankers have again saved the day with their unconventional monetary policies. The ECB’s LTROs have bought more time for the euro, while in the US and the UK, QE2 has turned investor sentiment from "risk off" to "risk on". Central banks have now poured trillions of dollars and euros and a quarter of a trillion pounds into the markets to help their economies get out of recession. They cannot do much more to stimulate growth for fear of reigniting inflation, but they are there in the background if a new crisis emerges.
11.52 Merkel has arrived at the EU Summit:
She says the EMU growth package is at the centre of today's summit.
11.47 France's new external trade minister Nicole Bricq has said that reaching reciprocity in international trade relations would be her top priority, especially with emerging economies.
"Within multilateral institutions as well as in bilateral ties", we must "promote trade that is equitable and fair, marked by a seal of reciprocity. I insist on that in this first intervention," she told a trade show audience.
11.45 Reporters await Angela Merkel's arrival at the EU Summit:
11.13 Irish Deputy Prime Minister Eamon Gilmore says his country will want equal treatment on bank debt if Spain wins concessions. Spain has asked the EU for up to €100bn in order to bail out its banking sector.
11.11 EuroGroup chairman Jean-Claude Juncker says he is seeking progress on short-term measures at EU Summit.
Surely we need less short-term measures and more long-term ones, Mr Juncker?
10.57 Finnish PM joins Germany in rejecting eurobonds. Should be an interesting EU Summit today. Most of Europe pushing for eurobonds as a solution to debt crisis.
PM adds that EU leaders will discuss buying Spanish and Italian bonds. FInland suggests that vulnerable eurozone countries should issue covered bonds, and the EFSF/ESM could stand ready to intervene at such auctions to make them a success.
Meanwhile, Swedish PM Reinfeldt says his country would oppose a proposal for an EU banking union.
10.44 Former MPC member Danny Blanchflower on UK GDP:
10.40 Greece's national bank says impaired loans in first quarter at 15.5pc, and the pace is accelerating. Adds that bank mergers are needed.
10.38 European Central Bank Governing Council member Christian Noyer says Europe has arrived at a crucial moment and must advance more towards federalism with a stronger budgetary union.
He adds that Greece must improve its credibility. Central banks have already done a lot but government cannot rely on them to do everything. EU/IMF Troika will visit country early next week.
10.33 And a quick update on Barclays being fined for Libor manipulation. Both Boris Johnson and Ed Miliband have this morning called for an investigation.
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10.18 Italy has sold €2.9bn 2022 bonds at yield of 6.19pc versus 6.03pc on May 30.
Sells €2.5bn 2017 bonds at yield of 5.84pc versus 5.66pc on May 30.
Bid to cover 1.28 versus 1.40. So, not a huge jump in borrowing costs but demand has fallen.
10.12 We are hearing that members of banking union IBOA are protesting outside the AIB AGM, threatening strike action over planned pay and pension changes. AIB chairman David Hodgkinson said home loan impairments "are in total 16pc".
10.06 Advert on the London Underground for conference call company Powownow:
10.00 Eurozone economic sentiment falls to 89.9 in June from 90.5 in May (lowest since 2009). Consumer sentiment falls to -19.8 from -19.3. Preliminary CPI +0.2pc.
09.49 The Greek Parliament has been sworn in.
Meanwhile, president Karolos Papoulias and the Greek delegation have flown to the EU Summit in Brussels using economy class. His two-way ticket is estimated to cost €500 to €600.
Papoulias has reportedly also delivered to European Union leaders a letter from Prime Minister Antonis Samaras seeking adjustments to the country’s debt deal with its international creditors.
09.36 BREAKING NEWS...
UK GDP Q1 figure confirmed at -0.3pc. Services +0.2pc, industrial production -0.5pc and construction -4.9pc. Government spending +1.9pc (highest since 2005), household spending -0.1pc. Bank of England expects borrowing costs for mortgages and household loans to rise markedly in Q3. Forecasts sharp reduction in availability of high loan-to-value mortgages.
The ONS said fourth-quarter 2011 UK GDP revised down to -0.4pc.
Ranvir Singh, chief executive of the market analysts RANsquawk, said:
Waiting for these numbers was much like watching an England penalty shootout. A grim sense of foreboding, flecked with the odd, irrational splash of hope.
"In the end the confirmation that, yes, it really was that bad, came as an anticlimax. No amount of extenuating circumstances can mask the economy's serious weakness in the first three months of the year. All eyes will now turn to the Bank of England to see how it will respond. But the sages of the MPC are far from united in their approach.
09.32 Italian employers' lobby Confindustria says country is "in abyss" and that crisis is hurting economy as if there was "a war". Cuts 2012 GDP forecast from -1.6pc to -2.4pc and 2013 from +0.6pc to -0.3pc, sees debt to GDP ratio at 125.7pc (121.3pc previously) this year.
09.26 Markets falling on rumours that no debt crisis plan will be finalised at today's EU Summit. FTSE 100 down 0.6pc now.
09.09 Ireland is undergoing the costliest banking crisis of any advanced economy since the Great Depression, according to The Irish TImes, citing a working paper prepared by two researchers within the International Monetary Fund.
Luc Laeven and Fabián Valencia said Ireland held “the undesirable position” of being the only country currently ranked among the 10 costliest banking crises since the 1970s, when measured in terms of fiscal cost, increases in public debt and output losses.
09.02 Euro falls to three-week low against the dollar of $1.2432.
08.56 German unemployment edges up from 6.7pc to 6.8pc in June, extra 7,000 claimants this month.
08.34 Spanish 10-year bond yields have jumped seven basis points to 6.99pc this morning. And they have now passed 7pc.
08.20 Trader Cigolo:
The source also says Germany is sceptical about dveloping yet another instrument to solve Italy's problems. Adds that Germany warns against "exaggerated panic-mongering" over very high interest rates in Spain and Italy. Troika report on Greece likely to take weeks.
08.10 ECB powers will reportedly be discussed at the EU Summit today.
08.04 Spanish inflation has slowed to the weakest in three months in June as the euro area’s fourth-largest economy sank deeper into its second recession since 2009.
Consumer prices, based on European Union calculations, rose 1.8pc from a year earlier, compared with a 1.9pc gain in May
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However, in Asia the Shanghai Composite fell 1pc, erasing 2012 gains.
Japan's Nikkei jumps 1.65pc.
07.58 In the latest version of his daily email, Telegraph Head of Business Damian Reece has focused on Barclays being fined for Libor manipulation:
As of last night Diamond was defiant, insisting he was clearing up previous mistakes. At some point the bank will have to discuss the situation with its shareholders and take soundings which would sensibly be done sooner rather than later. Obviously all the breaking news, including reports of all the latest reactions and interviews this morning on the story, are live on our website.
07.55 German IFO Institute sees economy entering a "weak phase".
07.49 The ECB's Peter Praet has added that a bailout of Spain's banks comes with strings attached and Madrid's efforts to cut its deficit must be monitored closely.
He told the Financial Times Deutschland:
Spain will receive the money from the bailout fund in tranches, with payment depending on whether Spain meets the conditions. Spain has no classical aid programme. But given the interconnectedness between the situation in the banking sector and state finances, we must also keep an eye on the development in the Spanish state budget.
07.37 Moody's has downgraded 11 Brazilian financial institutions. The ratings agency said it had cut the standalone bank financial strength ratings (BFSR) or lowered the standalone baseline credit assessments (BCA) of eight Brazilian financial institutions by one to three notches.
The long-term global local currency (GLC) deposit ratings or issuer ratings of 11 financial institutions were downgraded by one to two notches, while the deposit rating of one bank was confirmed. The short-term deposit ratings of six banks were downgraded by one notch.
Banks affected include Banco do Brasil, Banco Sanfra SA, banco Santander (Brasil), HSBC Bank Brasil - Banco Multiplo SA, Banco Bradesco, Banco Itau BBA SA and Banco Itau Unibanco SA.
07.30 Spain is considering buying its motorways in the Madrid region for €1 plus debt and introducing tolls, according to Cinco Dias.
07.19 European Central Bank policymaker Peter Praet says he is very skeptical of Italian PM Mario Monti's plan for the ECB to buy bonds part-guaranteed by the ESM bailout fund. Praet says plan would contravene ECB mandate. He adds that Spain should first look to shareholders for bank aid.
07.12 BREAKING NEWS...
UK house prices have fallen 0.6pc in June compared with May, and 1.5pc from last year. Analysts expected a 0.1pc rise. Average home price now £165,738.
Russell Quirk, founder of low cost online estate agents eMoov.co.uk, said:
With the economy back in recession, confidence low and the eurozone on the brink, it's no surprise that house prices remain under pressure. On an annual basis, we're back to the bad old days of 2009.
"The end of the stamp duty holiday may have contributed to the weakness in prices but it is by no means the biggest driver. That's the lack of confidence to commit to a purchase.
"One reason why prices aren't falling further is simple supply and demand. There aren't enough properties for people to live in and to a certain extent that puts a glass floor under prices.
"As for policymakers providing support, the jury is out. We've had all kinds of schemes over the past few years, none of which has made any material difference to credit availability. Why should we believe them this time around? Homeowners shouldn't hold their breath on prices, as we're in it for the long haul."
07.00 The euro-region economy may only show an “anaemic” recovery in 2013 after shrinking this year as leaders struggle to find the balance between policies that foster growth and the need for budget cuts, Ernst & Young International has said.
The euro-area economy will contract 0.6pc in 2012, before stabilizing with 0.4pc growth projected next year, Ernst & Young said in its Eurozone Forecast. The report also estimates 1.7pc growth in 2014 and 2pc in the two following years.
Mark Otty, managing partner for Europe, Middle East and Africa, said:
Any kind of recovery is dependent on eurozone political and financial leaders seizing the initiative over the next few weeks to head off the pressing problems in Spain, Italy and Greece. The difficult balance between growth and austerity has to be found with neither option at the exclusion of the other.”
06.54 The two-day EU Summit starts today in Brussels. We have a detailed schedule of events on our website. Our man in Brussels, Bruno Waterfield, will be at the event and, as usual, we'll have the latest news here. All eyes will be on German Chancellor Angela Merkel - will she budge on eurobonds?
Chris Cummings, chief executive of TheCityUK, said:
The UK cannot remain on the sidelines in discussions about banking union. While we are supportive of much needed positive action from eurozone countries to answer the on-going crisis, banking union raises important questions for the single market. In particular, the UK needs to be vigilant about technical rules which could impact on the wholesale market based in London.
“EU Leaders should recognise the essential contribution of the financial services sector to the economic recovery. Supporting bank lending to small and medium-sized enterprises and promoting non-bank sources of finance is essential to growth and recovery.
06.50 Lots of economic data to look forward to today. In the UK there is the final GDP revision for the first quarter (9.30am) and Nationwide house prices (7am). In Europe, Germany releases unemployment figures at 08.55am. In the US, jobless claims are out at 1.30pm. Also an Italian 10-year bond auction at 10am (UK time).
06.43 The lady's not for turning. No, not that one, but Mrs Merkel, as Jeremy Warner explains:
The German Chancellor is bluffing, and doesn't really mean it, the markets reply, but if this is indeed only a game of poker, she's certainly got nerves of steel. There will be no joint and several guarantees for euro area debt "as long as I live", she told a private meeting of German MPs this week. If that's bluff, then it's one from which politically she'll struggle to escape.
The parallels with Britain's own iron lady are striking, though obviously not exact. Mrs Thatcher pledged to use the British veto to block monetary union. I'm going to stand on the track and stop that train, she said. So she stood on the track and was duly run over by the EMU locomotive.
Looking at the mess into which the eurozone has since descended, many Europeans must wish she had succeeded, but it was not to be. With Mrs Thatcher disposed of, Britain instead negotiated an opt out from a project it believed itself powerless to stop.
06.40 Nein, nein, nein! Pleas from Spain and Italy for financial aid were dismissed by Angela Merkel yesterday on the eve of a critical summit in Brussels. Bruno Waterfield reports:
Before flying last night to Paris for emergency talks with Francois Hollande, the French President, Mrs Merkel told German MPs that instead of more cash the eurozone needed to step up debt reduction and economic reforms.
"I fear that at the summit we will talk too much about all these ideas for joint liability and too little about improved controls and structural measures," she said.
06.30 Good morning and welcome back to our live coverage of the European debt crisis.
Finance Ministry projects 5.7% growth for 2012 - Nation - Thailand
The Finance Ministry expects the Thai economy to expand 5.7 per cent this year, despite some risk factors that include the euro zone crisis which is plunging demand for Thailand's exports.
Thai economy expected to expand despite euro zone crisis
The Finance Ministry expects the Thai economy to expand 5.7 per cent this year, despite some risk factors, which include the euro zone crisis that is pushing down demand for Thailand’s exports.
Somchai Sajjapongse, director general of the Fiscal Policy Office, said at a press conference today that the Bt350 billion public investment on water management infrastructure would be key to buoying the economy, aside from the recovery in the manufacturing sector.
While the National Economic and Social Development Board forecasts a growth range of 5.56.5 per cent, the office expects the economy to grow in the range of 5.26.2 per cent, an upward revision from the previous forecast announced in March.
Somchai said that domestic consumption should show a vigorous and continued recovery, as consumers and investors have been cheered by the fast recovery in the manufacturing sector after last year's floods.
The floods also sparked a need for replacement and repairs. Spending is being boosted by the higher minimum wage and the pay rise for civil servants. This is supported by the government's rice pledging, firsthome and firstcar schemes, and corporate tax cut policy.
The government is expected to start spending the Bt350 billion fund in the second half of this year.
Still, he remarked that the export sector and tourism sector should witness a slowdown, given the Euro zone debt crisis.
While the export value is likely expand only 12.8 per cent (against Commerce Ministry's 15 per cent forecast), the import value is expected to increase by 22.3 per cent this year.
On lower export income and higher imports driven by domestic demand, Thailand should this year register a current account deficit, estimated to account for 0.10.9 per cent of gross domestic product.
The office expects inflation to stay at 3.5 per cent this year, in line with weakening oil prices.
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China Finance Online Reports 2012 First Quarter Unaudited Financial Results - Yahoo Finance
BEIJING, June 27, 2012 /PRNewswire-Asia/ -- China Finance Online Co. Limited ("China Finance Online", "the Company") (NASDAQ GS: JRJC), a technology-driven, user-focused market leader in China in providing vertically integrated financial information and services including news, data, analytics, securities investment advisory and brokerage-related services, today announced its unaudited financial results for the first quarter ended March 31, 2012.
2012 Q1 Financial Summary
- Net revenues were $9.1 million compared with $15.0 million for the first quarter of 2011;
- Gross profit was $7.1 million compared with $12.7 million for the first quarter of 2011;
- Net loss attributable to China Finance Online was $1.3 million;
- Excluding non-cash share-based compensation expenses, non-GAAP net loss attributable to China Finance Online was $1.1 million.
Key Developments
- Stockstar.com ("Stockstar") entered into an exclusive partnership with Baidu.com ("Baidu") on a mobile web application to provide financial information services.
Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online, commented, "Amid concerns toward a slowdown of the Chinese economy, the Chinese A-Share market again was one of the most underperforming global equity markets during the first quarter of 2012. Trading turnover and market capitalization shrank further as China's GDP and corporate earnings growth trended lower. Demand for paid securities analysis software continued to be negatively impacted across the board as investor sentiment remained fragile.
"As we transition our business toward securities investment advisory services, we continue to leverage our leadership in financial information services, data solutions and web technologies, to expand our user base. Our flagship sites jrj.com and stockstar.com are two of the most established financial portal sites in China with tens of millions of users. We keep strengthening our research and development in new areas including open-source platform application, wireless application, financial micro-blogging, and HTML5 technology. Furthermore, our exclusive partnership with Baidu will enable us to provide our market-leading financial information services to a much broader audience," Mr. Zhao concluded.
2012 First Quarter Results
Net revenues for the first quarter of 2012 were $9.1 million, compared with $15.0 million for the first quarter of 2011. The main sources of the Company's net revenues were subscription fees from individual customers, subscription fees from institutional customers, advertising revenues and revenues from brokerage-related services, which contributed 69%, 8%, 9% and 14% to total revenues respectively, compared with 80%, 4%, 8%, and 7%, respectively, for the comparable period in 2011. Revenues from subscription fees paid by individual customers decreased 47.8% year-over-year reflecting the decreased demand for paid securities analysis software amid a sluggish stock market in China and continuing impact on sales due to regulatory requirements effective from January of 2011. Institutional subscription revenues increased 17.9% year-over-year to $0.8 million. Revenues from brokerage-related services increased 15.5% year-over-year to $1.3 million.
For the first quarter of 2012, gross profit was $7.1 million compared with $12.7 million for the comparable period in 2011. Gross margin for the first quarter of 2012 was 78.2% compared with 85.0% for the first quarter of 2011. The year-over-year decrease in gross margin was mainly due to lowered revenues.
General and administrative ("G&A") expenses for the first quarter of 2012 were $2.8 million, or 30.4% of net revenues, compared with $2.7 million, or 18.2% for the comparable period in 2011. Excluding non-cash share-based compensation expenses of $0.2 million and $0.4 million for the first quarters of 2012 and 2011, respectively, adjusted G&A expenses for the first quarter of 2012 were $2.6 million, or 28.5% of net revenues, compared with $2.3 million, or 15.4% of net revenues in the first quarter of 2011. The increase in adjusted G&A expenses as a percentage of quarterly revenues was mainly due to lowered revenues.
Sales and marketing expenses for the first quarter of 2012 were $3.5 million, or 39.0% of net revenues, compared with $5.6 million, or 37.4% in the first quarter of 2011. The decrease in sales and marketing expenses in absolute value was due to less marketing expenses and sales commissions from reduced sales. The increase in sales and marketing expenses as a percentage of quarterly net revenues was primarily due to lowered revenues.
Product development expenses for the first quarter of 2012 were $3.2 million, or 35.2% of net revenues, compared with $3.2 million, or 21.6% of net revenues for the same quarter in 2011. The Company's management believes that investments in human and technical resources to improve the Company's data, product and technical capabilities are crucial for the Company's business in the long run.
Total operating expenses for the first quarter of 2012 were $9.5 million, down from $11.5 million in the first quarter of 2011. Excluding non-cash share-based compensation expenses, adjusted operating expenses were $9.3 million in the first quarter of 2012, down from $11.0 million for the first quarter of 2011.
GAAP net loss attributable to China Finance Online for the first quarter of 2012 was $1.3 million compared with a GAAP net income of $1.4 million in the 2011 first quarter. Non-GAAP net loss attributable to China Finance Online, which excluded the non-cash share-based compensation expenses of $0.2 million, was $1.1 million for the 2012 first quarter, compared with a non-GAAP net income of $1.9 million for the same quarter of 2011. Both basic and diluted weighted average number of ordinary shares in the first quarter of 2012 was 109 million. Each ADS represents five ordinary shares of the Company.
As of March 31, 2012, total cash, cash equivalents and restricted cash were $79.9 million and short-term investments were $10.8 million. Accounts receivable in non-margin related business were $2.8 million while Daily Growth's margin-related accounts receivables was $16.7 million. Daily Growth continues to implement strict margin account screening and ongoing monitoring to ensure the safe return of capital.
Total China Finance Online Co. Limited's shareholders' equity was $89.9 million as of March 31, 2012, compared with $90.9 million as of December 31, 2011.
The combined current and non-current deferred revenues at the end of the first quarter of 2012, which represented prepaid service fees made by customers for subscription services that have not been rendered as of March 31, 2012, were $20.1 million.
As of March 31, 2012, the number of active paid subscribers of the Company was approximately 85,000.
Key Developments
On June 18, 2012, China Finance Online announced that one of its flagship portal sites Stockstar.com ("Stockstar") entered into an exclusive partnership with Baidu.com ("Baidu") on a mobile web application to provide financial information services.
Under the partnership, Stockstar and Baidu launched a mobile web application integrating Stockstar's proven financial information services with leading internet technologies. The application allows users to access a variety of information on companies traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
The web application went live in June 2012. Through the application, smartphones running on Google Android and Apple iOS operating systems are now able to access financial information by inputting company name or ticker into Baidu's search engine.
"Stockstar is one of the most established financial portal sites in China with a proven track record in data processing, website optimization, and client development. As more Chinese are spending more time seeking market intelligence online, extending our competitive advantages to the mobile internet market is a natural choice," Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online, commented. "Meanwhile, we are excited to provide our timely, reliable and robust financial information services to Baidu users. I am optimistic that by building on Baidu's powerful and far-reaching platform we will be able to expand our potential users and provide them with a better mobile experience in accessing financial information that is faster and more streamlined," Mr. Zhao concluded.
Strategic Operational Transition
As stated previously, assessing the profound secular changes taking place in both capital markets and our own industry, the Board of Directors decided upon the following strategic transition. Beginning in April 2012, as the Company continues to offer basic versions of paid individual subscription services to individual investors through its flagship portal sites and accumulate paid subscribers with basic software and information services, the Company is no longer accepting new paid subscribers or renewals for its premium individual subscription service, instead, targeting unpaid users of its flagship web portals and low-end subscribers for our securities investment advisory service and over time provide other wealth management services. Such strategic transition may adversely affect our performances in the short term and result in losses of profit during such transition period.
In China, securities investment advisory refers to fee-based investing advice and counsel on stocks and related financial products from licensed professionals who assist in clients' investment decision-making process. Such new business and other wealth management services are still in the early stage of development. The Company does not expect these areas to contribute material revenues any time soon.
Cost reduction associated with the transition will help offset the loss in revenues and mitigate the loss of cash flow to a certain extent. The Company plans to implement additional cost-cutting initiatives to increase efficiency and improve operational performance. Deferred revenues will continue to be realized until the expiration of outstanding premium individual subscriptions. The Company intends to preserve its cash balance as ample cash is critical for ensuring the success of the strategic transition.
Conference Call Information
The Company will host a conference call and a simultaneous webcast, on June 27, 2012 at 8:00 p.m. Eastern Time/June 28, 2012 8:00 a.m. Beijing Time. Interested parties may participate in the conference call by dialing approximately five minutes before the call start time at U.S. +1-877-847-0047, Hong Kong +852-3006-8101, Singapore 8008-523-396, or China 800-876-5011, and the pass code for all regions is 675169.
A replay of the conference call will be available shortly after the conclusion of the event through 11:59 a.m. Eastern Time on July 5, 2012 (or 11:59 p.m. Beijing Time on July 5, 2012). The dial-in details for the replay: U.S. +1-866-572-7808, Hong Kong +852-3012-8000, Singapore 800-101-2157, China 800-876-5013. Access code: 675169.
The conference call will be available as a live webcast and replay at: http://www.media-server.com/m/p/6itzpumo
About China Finance Online
China Finance Online Co. Limited is a technology-driven, user-focused market leader in China in providing vertically integrated financial information and services including news, data, analytics, securities investment advisory and brokerage-related services. Through its flagship portal sites, www.jrj.com and www.stockstar.com, the Company offers basic software and information services to individual investors which integrate financial and listed-company data, information and analytics from multiple sources. Leveraging on its robust internet capabilities and registered user base, China Finance Online is developing securities investment advisory and over time wealth management services. Through its subsidiary, Genius, the Company provides financial database and analytics to institutional customers including domestic brokerages and investment firms. Through its subsidiary, Daily Growth, the Company provides securities brokerage services in Hong Kong.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, this release contains the following forward-looking statements regarding:
- our product upgrade and strategic transformation initiative;
- cost-cutting initiative and its effect on efficiency and operational performance;
- potential business consolidation amidst the new regulatory environment;
- the market prospect of the business of securities investment advisory and wealth management;
- the new exclusive partnership between Stockstar and Baidu; and
- the transition period to adapt to the new compliance requirements.
Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which risks and uncertainties include, among others, the following:
- the changing customer needs, regulatory environment and market condition that we are subject to;
- the uneven sector-growth of the Chinese economy that could lead to volatility in the equity markets and affect our operating results in the coming quarters;
- the unpredictability of our strategic transformation and upgrade;
- the competition we are facing in the new business of securities investment advisory and wealth management;
- global macroeconomic uncertainties;
- wavering investor confidence that could impact our business;
- the extent to which Stockstar's financial information services can be integrated into the mobile web application launched by Stockstar and Baidu, and the continuity of the exclusive partnership; and
- possible non-cash goodwill, intangible assets and investment impairment may adversely affect our net income.
Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F under "Forward-Looking Information" and "Risk Factors". The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Non-GAAP Measures
To supplement the unaudited condensed consolidated financial information presented in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"), the Company uses non-GAAP measures of income from operations, net income, and diluted net income per ADS, which are adjusted from results based on GAAP to exclude the non-cash share-based compensation expenses and non-cash goodwill, intangible assets and investment impairment. The non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and therefore deems it important to provide all of this information to investors. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of the Company's GAAP financial measures to Non-GAAP financial measures" set forth at the end of this release.
Contact:
Julie Zhu
China Finance Online Co. Limited
+86-10-5832-5288
ir@jrj.com
Shiwei Yin
Grayling
646-284-9474
shiwei.yin@grayling.com
| China Finance Online Co. Limited | ||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands of U.S. dollars) | ||
| Mar. 31, 2012 | Dec. 31, 2011 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 50,493 | 64,641 |
| Restricted cash | 29,432 | 29,861 |
| Trust bank balances held on behalf of customers | 11,645 | 18,664 |
| Accounts receivable, net - others | 2,821 | 1,468 |
| Accounts receivable, net - Margin clients | 16,715 | 12,889 |
| Loan receivable | 9,574 | 9,566 |
| Short-term investments | 10,832 | 10,701 |
| Prepaid expenses and other current assets | 3,623 | 3,577 |
| Deferred tax assets, current | 503 | 634 |
| Total current assets | 135,638 | 152,001 |
| Property and equipment, net | 5,819 | 6,530 |
| Acquired intangible assets, net | 2,749 | - |
| Rental deposits | 739 | 738 |
| Deferred tax assets, non-current | 511 | 484 |
| Other deposits | 223 | 224 |
| Total assets | 145,679 | 159,977 |
| Liabilities and equity | ||
| Current liabilities: | ||
| Deferred revenue, current (including deferred revenue, current of the | 14,037 | 17,287 |
| Accrued expenses and other current liabilities (including accrued | 4,360 | 6,458 |
| Short-term loan (including short-term loan of the consolidated variable | 18,545 | 19,171 |
| Amount due to customers for trust bank balances held on behalf of | 11,645 | 18,664 |
| Accounts payable (including accounts payable of the consolidated | 398 | 144 |
| Deferred tax liability, current (including deferred tax liability, current of the | 4 | 45 |
| Income taxes payable (including income taxes payable of the consolidated | 101 | 135 |
| Total current liabilities | 49,090 | 61,904 |
| Deferred revenue, non-current (including deferred revenue, non-current | 6,025 | 7,237 |
| Deferred tax liability, non-current (including deferred tax liability, non-current | 688 | - |
| Total liabilities | 55,803 | 69,141 |
| Noncontrolling interests | (20) | (105) |
| Total China Finance Online Co. Limited Shareholders' equity | 89,896 | 90,941 |
| Total liabilities and equity | 145,679 | 159,977 |
Forex Broker Tadawul FX Wins Best Broker Award at 2012 World Finance Foreign Exchange Awards - YAHOO!
Online Forex Broker Tadawul FX today proudly announces that the company has been named Best Broker, Central & Eastern Europe at the recent World Finance Foreign Exchange Awards 2012. Further to last year’s recognition as the Best Islamic Finance Provider and its recent win at the FX Empire Awards, this latest achievement adds further to the numerous industry accolades of Tadawul FX.
Limassol, Cyprus (PRWEB) June 28, 2012
Forex Broker Tadawul FX today announces their recent win at the World Finance 2012 Foreign Exchange awards where the company was awarded ‘Best Broker, Central & Eastern Europe.’ These prestigious finance industry awards celebrate achievement, innovation and excellence in currency trading and were first established in 2007.All financial service providers that enter the awards are nominated by the readers of World Finance and then the winners are selected by an independent panel of judges, who are all chosen due to their expertise and extensive experience in financial services journalism.
Among the criteria for this prestigious award are service quality, innovation and introduction of new services along with best practice applications. Tadawul FX, in its continuous efforts to promote higher quality service and an enhanced trading experience for clients, is being recognized for their progress and achievements in this area. Other key areas which affect the final winning choices of the judges include the level of transparency on a regulatory level, selection of trading platforms available for traders and use of technology.
Further to their award in 2011 from World Finance for Best Islamic Forex Provider, this latest recognition adds to the growing number of industry awards this company has received.
Chairman of Tadawul FX, Ramzi Chamat, was delighted to acknowledge receipt of the World Finance award on behalf of the company. Of this achievement, he says:“We are delighted and honoured to receive this prestigious award for Best Broker Central & Eastern Europe. We would like to thank our clients and those who nominated us for their continued loyalty and trust. At Tadawul FX, we are always honoured to have our efforts recognized and we will continue to innovate and work towards a superior trading experience for our clients.”
About Tadawul FX:
Tadawul FX, also known as TDFX, is an online forex broker. TDFX is licensed and regulated by the Cyprus Securities & Exchange Commission (license number 103/09) and is also registered with the UK Financial Services Authority (FSA) with registration number 516667, as well as the German regulators BAFIN (Reg 123252).
For more information, visit http://www.tadawulfx.com or contact Tadawul FX at support (at) tadawulfx (dot) com or telephone: +357 25 200 920.
For further information about Tadawul FX, visit http://www.tadawulfx.com.
About World Finance
World Finance enjoys a distribution network that includes some of the most prominent decision makers worldwide. Both the magazine and the website are committed to the very highest standards of journalism and have built up a coveted reputation for excellence. World Finance provides readers with regularly updated news collected from trusted media organisations such as Reuters and Financial News. World Finance has global newsstand distribution and their website contains a virtual page-turning version of the magazine that can be viewed for free. For further information please visit http://www.worldfinance.com
About the Awards:
The World Finance Awards were created in 2007 to identify industry leaders, individuals, teams and organisations that represent the benchmark of achievement and best practice in the business world. The World Finance awards panel, headed up by Editor Alexander Redcliffe, used a wide range of criteria, and applied the critical eye of a collective 175 years of financial journalism to the exhaustive information gathered by the award body’s research team to inform its decision over the most pertinent categories to include in the Foreign Exchange 2012 awards.
Kate Alippa
Tadawul FX
+357 25200900
Email Information
FOREX-Euro bounces back ahead of EU summit, ECB hopes help - Reuters India
* Euro above 3-week low as market braces for EU summit
* Euro helped by growing speculation of ECB action
* U.S. data helps risk assets, Aussie at 1-week high vs USD
* Month-end Japan exporters' selling sends dollar/yen lower
By Hideyuki Sano
TOKYO, June 28 (Reuters) - The euro bounced off a three-week low against the U.S. dollar on Thursday on short-covering ahead of a European Union summit starting later in the day and also helped by expectations of more monetary support from the European Central Bank.
While many market players expected European leaders to struggle to agree on bold steps to solve the region's debt crisis at their summit, some market players were playing it safe by squaring their positions just in case there would be a surprise breakthrough.
The single currency rose 0.35 percent in Asia to $1.2511 , versus $1.2466 late in New York, recovering further from the three-week low of $1.24413 hit earlier in the week.
On the whole market players' expectations for the two-day European Union summit are already low, as EU leaders look more openly divided than at any time since the debt crisis erupted in Greece in 2010 and spread over the euro zone.
German Chancellor Angela Merkel on Wednesday brushed aside increasingly shrill calls from Spain and Italy for emergency action to lower their soaring borrowing costs and poured cold water on the idea of joint euro zone debt.
"The summit will probably just show that the debt crisis needs a lot of time to be resolved. I don't think it's time to buy the euro," said Katsunori Kitakura, associate general manager of the market-making unit at Sumitomo Mitsui Trust Bank.
Still, the euro has some support around $1.2440.
In one sign that market players have curbed their extreme pessimism on the euro, the costs of buying euro/dollar put options have dropped to the cheapest level in about two months.
The euro/dollar's risk reversal spread eased to around 1.3 percent in favour of euro/dollar puts, compared with a high of around 2.6 percent just over a month ago.
Analysts from Barclays also noted that riskier assets tended to rise in the week following 18 EU summits since 2010, with the euro eking out average gains of around 0.2 percent and the Aussie 0.6 percent, despite widespread cynicism in the market on the EU's ability to tackle the crisis.
ECB TO THE RESCUE?
"The market is already expecting disappointment from the summit. But I do think the euro will be supported by expectations that the European Central Bank will take some measures next week," said a currency trader at a Japanese bank.
With concrete steps for further integration of the currency bloc seen unlikely while Spanish and Italian debt yields remain at unsustainably high levels, market players are increasingly betting the ECB will either cut rates or announce massive long-term fund injections after its policy meeting next week.
The bank's Executive Board member Peter Praet said on Wednesday there is nothing to stop the bank cutting rates and 48 out of 71 economists polled by Reuters expected a rate cut.
Helping to fan such speculation, German inflation eased to an 18-month low, government data showed on Wednesday, which market players think could help nudge traditionally hawkish ECB policymakers towards easing.
Italy's borrowing costs are likely to rise above 6 percent at an auction of up to 5.5 billion euro bonds planned later in the day, just hours before the start of the summit.
On the other hand, U.S. economic data offered a rare positive surprise on Wednesday, with durable goods orders and pending home sales both beating market expectations, helping to boost risk sentiment in broad financial markets.
That helped to lift the Australian dollar by around 0.3 percent on Thursday to a one-week high of $1.0121, though strong resistance is seen around $1.0130, a level representing the 61.8 percent retracement of its recent decline.
The Aussie hit a four-month high against the euro, which fell as low as A$1.2331.
The U.S. dollar fell 0.4 percent against the yen to around 79.40 yen largely due to month-end selling by Japanese exporters, but it stayed within its trading range of the past few days.
"I don't think a clear trend will emerge in the dollar/yen in the near future," said Koichi Takamatsu, forex manager at Nomura, adding that the pair is hemmed in by Japanese exporters' offers above 80 yen on the upside and by wariness about Japan's intervention around 78 yen.
Traders also said it might not be wise to read too much on latest price actions as month-end and quarter-end flows probably played a big role in each currency pair in otherwise thin market ahead of the EU summit.
Naked Ziplining to Running Barefoot: Strange Ways People Raise Money - ABC News
After a 2.4 mile swim and a 112 mile bike ride, firefighter Robert Verhelst shocked spectators at the Ironman Wisconsin triathlon on Sept. 11, 2011 when he ran the last leg of the race, a 26.2 mile marathon, in more than 50 pounds worth of firefighting gear, according to Wisconsin's Channel 3000.
After hearing the news of 9/11, Verhelst, of Madison, Wisc., jumped in his car and drove to New York City to help sort through the rubble from the attack. Exactly a decade after, Verhelst ran the Ironman Wisconsin in full gear to honor the 343 firefighters who died on 9/11 and to raise money for Code 3 for a Cure, a non-profit organization of firefighters who have battled cancer.
"When people see me walking in that gear, struggling with those 26 miles, in 65 pounds of gear, I want people to think of more than just, 'Oh, he must be tired,'" Verhelst told Wisconsin's Channel 3000. "Think about why I'm out there. Why I'm doing what I'm doing."
Verhelst is an 11-year veteran firefighter and works at the Madison Fire Department in Madison, Wisc. He plans to complete 27 triathlons this year which would break the Guinness Book of World Record for most triathlons completed in a year. Verhelst hopes to raise $650,000 for Code 3 for a Cure this year.
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