all the banks on the pam are being investigated, deutsch being one of them. so no new news. this going to be true for all the banks. >> yeah, but no new news. that may be the case, but it's yet another black eye, if you will, on any of the financials and any negative headline chira, has had a negative impact on the stocks, new or not, case in point jpmorgan. >> absolutely. we saw it barclays last week. a very expected event. in fact on wednesday evening when actually the cftc guys declared documents, said barclays settled on the libor thing in the first one actually adr didn't move at all. people expecting this. then people start pouring into it. you've got a negative sentiment. people start talking about lawsuits, can't get to a number. then basically you start selling. that's a negative sentiment you're talking about probably seen across all the banks. >> is there a point, then, when you think the selloff is overdone and you'd be willing to buy these names or urge people to take a look. >> capitalists not coming on the libor side, have to be earnings. head winds you've been

this was a similar question last week when deutsche bank ahead of everybody in this group we particularly mentioned and cut his by a full point. the street taking their estimates down. this should come as no shock. >> since march. we peaked in march, lower jobs data. the only good piece of the economy is housing. that's actually held up pretty much. it will be interesting to hear from some of these companies in housing, was it a pull forward in the first quarter or does the momentum continue throughout the year. we're betting it stays strong. >> steve weiss, how do you trade pulling down of growth forecast. >> what's interesting in the imf forecast looking at sub2% global growth this year and next embedded in that was the belief that there's going to be massive stimulus in europe, which we still haven't seen. so i think the way you trade this is continue to stay away from stocks like cummings. it had a great pop. now it's trading down today. stay away. it's not that cheap. caterpillar maybe we'll talk about that a little more. that's the global growth stock.

i need to receive it if i need to in the german banks or something deutsche bank is. just leverage is probably the most leverage bank in europe you know what perhaps is a huge bank and of course the chairman's are very worried about deutsche bank and they will try to keep it afloat with free money right sixty one leverage at deutsche bank all right wolf that's all it's i we have for on the cause report thanks so much for coming on thank you very much all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests rector of the testosterone pit going to send me an email please do so at kaiser report at r t t v are you until next time nice guys are playing by oh . sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you don't know i'm tom harpur welcome to the big picture. thing. all started here. for going global that's no. longer. choose your place take your stuff. to. make your sta

need to receive it if they need to in the german banks or something deutsche bank as. it's leverage is probably the most leverage bank in europe in the war perhaps in a huge bank and of course the germans are very worried about deutsche bank and it will try to keep it afloat with free money right sixty to one leverage at deutsche bank all right wolf richter that's all the time we have for the cause report thanks so much for coming on thank you very much all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guests wolf richter of the testosterone pit going to send me an email please do so at kaiser report at r t t v dot ru until next time nice guys are playing bio. quite.

trying to somehow solve their balance sheet issues of course deutsche bank is insolvent society generale b. and b. that if you were to freeze in time and look at their balance sheet or any given day you'd find they have absolutely no collateral j.p. morgan's balance sheet is no collateral one hundred sixty billion dollars goose egg there's nothing there it's all smoke and mirrors jamie diamond is being probed by aliens trying to sell his company's debt to some arriving spaceship floating around planet earth and this guy here. or you just described it sees the ellens over area fifty one while they just take area fifty one public on nasdaq they can probably take a public for more than facebook and equally fallacious nonsensical company group on a ponzi scheme that went public for billions zinka apologies game that went public for billions how about area fifty one take that public to a leverage buyer j.p. morgan by goldman sachs of the proces and then take yourself to another planet and set up shop on some parallel universe of bankrupt them believe earth alone. ok well you know j.p. morgan

credit agricole, deutsche bank e. and hsbc are being investigated ov over libor manipulation. >>> we'll bring you up to speed with ear lie market action. first another auction result from spain. we had an early one from spain where we've seen the reactions sending spanish yields higher. france selling three year. bid to cover three times. sold 2.6 billion of the july 16th. average yield half a percent. on the 2017 the average yield .86%. france, we're seeing this convergence between french yields and other core yields illustrated at the end of the chart there. still investors are pretty happy to snap those up. maybe they still have high yields, of course, on commensurate german auctions. so that will still give us some indication where investors go. we're getting lower yields in france, high yields, auction yields in spain still. >> indeed we're seeing the market reaction here. if we take a look at u.s. futures pretty muted. investors remember trying to figure out whether to get too spooked about those early spanish r

> narrator: desiree fixler, a graduate of the london school of economics, sold derivatives for deutsche bankand j.p. morgan. >> i didn't think for myself. you know, i was so desperate to perform for the bank. i mean, for so many of us, if you slit our wrists, corporate logos would jump out. >> narrator: fixler was part of a small army of bankers pushing derivatives to european markets. (phones ring) on the trading floor, they were known as f9 monkeys. >> smith: you were an f9 monkey? >> half of me was an f9 monkey. and the other half would be out on the road, marketing to accounts. >> smith: so what was an f9 monkey? >> well, just somebody who's just simply pricing all of these structures. >> smith: these are on the computer. >> exactly right. so you just had to put in a few inputs and press f9 and it would determine the price of the instrument and, in fact, your hedge as well. >> smith: and who did you... who did you sell to? >> hedge funds, to pension funds, to insurance companies, to all sorts of different types of banks. and there were many uses to the product. so it just... it naturally

. >> massive job cuts are in the offering at deutsche bank. leaking details said 1000 bankers are being sacked by germany's biggest financial institute. that is 10% of the work force. the ax will fall mainly in london where deutch has its investment banking headquarters. -- where deutsche has its investment-banking headquarters. >> high winds and extreme heat are hampering efforts to control wild fires in parts of mainland portugal. -- parts of mainland portugal also suffering fires. the mobile phone maker nokia's net loss nearly quadrupled in the second quarter on sagging sales of smartphones. the company is struggling to gain ground lost to rivals such as apple and samsung. >> nokia posted a net loss of 1.4 billion euros in the last quarter. shares in the company jump, however, as sales of low-end phones buoyed saled. >> many consumers think nokia's mobile phones look old- fashioned. the sector giant was slow to react to the shift towards smartphones, and now it is paying the price. the company began creating models that could do more than ju

deutsche bank, db, was over 41. now it's down around 32. and take a look at jpmorgan, right back to where it was after that disastrous call when jamie dimon first introduced us to the cio trade. so i think that some of those european banks in particular, deutsche bank has been sold off a little too hard. in other words, i'd flip back out of that trade in europe. >> time now for "pops & drops," the midday market mover that is might not yet be on your radar, but will be now. let's start with the big-time retailer, it is a drop, it is saks, down more than 3%. why, pete? >> hit partially because of the downgrade. but we had an analyst on "fast money" on wednesday night and it was outlined why some names are outperforming other names. it's about margin and control. >> another prop,nxp, this stock is down. j joe? >> it's a name that i talk about a lot. i talk about owning and i own myself. it is a lousy trade right now. barclays calls into question the second-half demand in the semi space, i'm holding on to nxpi. i still think the stock rallies o

deutsche bank up 3.7% as well. i own that one. >> are you telling me you'd be putting money in all these banks right here? >> i did into all those three. >> shares of barclays, deutsche bank and credit suisse all down more than 13% since that call. doc, brother one-upped you? >> oh, yeah, i'd take pete's trade over that trade any day, judge. you can't sugar-coat it and you can't make chicken salad out of chicken you-know-what. but i did like the banks back then, on dips like the one we're seeing right now, when barclays is below 10%, which you had, and you get jpmorgan, that range $33.36. when they reinstate the repurchase plan, which i think jamie dimon said could happen in the fourth quarter, i'll ratchet up that range for jpm as well. but, yea, kudos to pete for a great call on nexen. >> an interesting get-together the next time you guys are together. >> i know who's buying. >> me, too. >> ugg boot maker deckers getting a downgrade. the analyst saying we would not be involved in deckers going into the quarter, we

barry from deutsche bank. bk, you run money for other people.hat sort of demands are see seeing from clients these days. >> i think exactly what barry talked about is comparing the hedge fund world to an s&p 500 return of 8%. you are getting into it for diversification in your asset classes. a hedge fund is probably not the best thing for all of your money but a good thing for part of your money. there is a lot of interest in what i do. whether you're in the currencies, fixed income, commodities, that type of thing. and that gives you goody verseification. but when the s&p 500 is down, you probably do pretty well. >> afterhours action. very big mover here. >> better than expected second quarter results. the company giving positive guidance for the third quarter as well. sees third quarter earnings between 40 and 42 cents a share. on a revenue it sees revenues ahd of estimates. analysts looking for $330 million. this is all for the third quarter. the company beat estimates by six cents a share earning on an adjusted basis. it has been benefitting

deutsche bank says second quarter results will fall short of estimate, countrily down 3.5%. that's where we stand right now. so, the banks under pressure. >> it's remarkable because we saw the weakness in gm and ford shares yesterday in u.s. trading. nevertheless, some automakers here doing better. speaking of earnings, though, facebook reports its first earnings tomorrow after the closing bell after becoming a publicly traded company and that prompts us to ask, where do you think the stock will trade after that report? will it be enough to put mark zuckerberg back on the rich list? shoot us an e-mail at worldwide @cnbc.com and tweet us @cnbcwex or individually. >> we would love to get your comments. >>> still to come, we'll tell you why nintendo is optimistic about the future despite failing to return to profit in the first quarter. . >>> welcome back to the program. japanese video game maker anyone ten dough posted small than expected second quarter losses. net loss came in about $220 million, about a third less than losses it posted a year earlier. but for the full busines

. >> now, i know that you're head of equities strategy for asia there at deutsche bank, but are you sensing from clunts this is a re -- clients this is a real possibility? >> i don't think so. we had specicommercial banks no doing well. i think it's a management problem. as you said this is way above my pay grade, but i heard clients nengs is the key problem they're facing. >> i will come back to you because i really want to get your thoughts on this market here and i know whether covering asia or other kwek quit ti strategies you have some real opinions. in terms of the same question, are you feeling, given all of the pressure on the banks, this could end up happening? this would be a huge change for profitability for these companies or for investment returns. any abopossibility? >> i don't see it, the banking sector has been very volatile. they're really just starting to claw they're way back, and despite this black cloud hanging every us from washington, i think what you're dealing with by having these two segments, in many cases they're not compatible, is additional diversification. the

the analyst at deutsche bank. steve weiss, do you have a trade here? >> i do.e, i would stay away from the high end reliant upon the tourist trade, that would be saks fifth avenue where 30 to 40% of their revenue come from the new york store. people i talk to, europeans aren't coming over and they are not spending like they did. that's where i'd be cautious. >> i can't wait for comments, then, when i talk to the analyst from tivoli. >> i'm saving them. >> i know you are. please do. grasso, what's your trade? >> i would stick with target. more and more people i speak with are bulled up on the name. they have had their reservations in the past. i know the price they are unsure of but this is poised to go higher. >> coming up on halftime, one of the top performing tech managers looking under the radar for outsized returns. he reveals his top picks including one up more than 4% today. we'll be right back. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weig

investigations are under way into suspected interest-rate manipulation by the banks, including germany's deutsche bank -- are around the world, investigations are under way. >> it is a major breakthrough in science. physicists have announced they had discovered a new particle which could lead to a new understanding of how the universe began. >> the director of geneva's european center for nuclear research said the discovery is a milestone. physicists say it is consistent with the long-sought [inaudible] >> the theory is that the particle came into existence within fractions of a second after the big bang and is believed to be responsible for giving other particles their mass. until now, this key component in understanding how these subatomic world -- the subatomic world came into being has been a mystery. by accelerating subatomic particles to the speed of light and colliding them, they simulate conditions that are believed to have existed in the big bang. after analyzing the data, they announced their spectacular find. >> i believe we have achieved a major discovery here. we found a particle, presuma

not good after the ifo institute reported its business climate index, and after companies like deutsche banknd the hamburg port reported dismal earnings for the second quarter. >> let's look at the stock exchanges around europe. the dax in positive territory today, only up by 0.25%. over to new york where things were also looking a little rosier -- 12,714 points. the euro trading up -- $1.2159. >> the big question being asked these days -- can face ever be completely restored in the global banking system after the libor banking scandal that saw the world bank's colluding to fix borrowing rates -- can faith ever be restored? >> barclays bank was fine after admitting to attending to manipulate rates, but four top executives, there has been no legal consequence. >> with the fallout from the libor scandal still claiming bank executives, the lawmakers are taking steps to restore market confidence. barclays admits it colluded with other european banks to manipulate interest rates on interbank loans. the eu commission is drafting legislation, forcing member nations to enact heavy fines and impose s

jpmorgan, you mentioned that, being cut to hold over at deutsche bank on concerns that earnings expectationsay be too high for the bank, among other issues. and we want to point out that cit group reported a small loss there. we'll see whether or not that stock comes under pressure. dow holding on to an 11-point gain. jim, back to you. >> rick santelli's at the cme group in chicago. good morning, rick. >> good morning, jim. of course, if you look at an intraday or a two-day chart of our tens, you'll see that rates are down just a little bit today. but more appropriate, they touched a high yield closing at 1.55 on friday. we saw reversals on many of the safe harbor securities. if we look at the foreign exchange side, we could see that traders, of course, are all anticipating there's going to be a test of that 1.20 level that we seem to have bounced from, based on some of the draghi comments last week. but we'll have to wait and see. those comments have lost a little of their horsepower as an abundance of stories over the weekend throw into question what kind of efficacy the ecb leader will ha

moments ago deutsche bank cutting second quarter fwrks dp growth forecast by a whopping 1%.gna is deutsche bank's chief u.s. economist and cnbc tribute to contributor. one point. that's a big move. why? >> i think, scott, what we've seen in the last few weeks is numbers turn out weaker than what we thought. and today's trade numbers, i think, kind of pretty much crystallize the fact that exports aren't going to be strong enough to really help us this quarter as we thought was the case earlier on. and we just bit the bullet and made the full point cut. to tell you the truth, i wouldn't be surprised after revision if we're actually lower than that post the q-2 results at the end of this month. >> you think inevitably we go into recession again? >> no, i don't. i still actually am somewhat constructive on the outlook. the pieces we've been writing recently have reflected or rather have tried to make the point that the household sector, despite this very weak and uneven growth, the household sector below all this is actually improving quite a bit. we've seen continued declines i

shares of deutsche bank, which is also under investigation is, were never the less up -- which are also under investigation. german car makers still have a good reputation o the u.s. markets. vw was able to increase sales by more than 30%. >> i have a closer look at those market numbers for you now. the dax was higher on tuesday. holding onto its gains from the past recessions, investors are speculating that the ecb could cut interest rates at its policy meeting on thursday. you can see the dax up there by about 1.25%. that optimism carried over to new york. let's bring in the dow jones industrial average for you. it is currently higher by about 0.5%. as for the european dance the dollar, 24 $1.2608. >> a court in brazil has of held a major compensation claim against the german chemicals giant and oil giant shell. it has ordered the two companies to pay for -- pay more than 280 million euros. hundreds of people have suffered problems after working there. the site was contaminated before they bought it according to the company and it is pushing for shell to accept full responsibility and

morgan chase and deutsche bank accusing the banks of manipulating libel rates during the financial crisis to boost their own profits while screwing over entire cities so so it could be just a matter of time before some banks heads roll and by heads roll i mean a slap on the wrist fine since we all know that banks toure's are immune from jail time in this day and age congress is jumping into the mix too with plans to bring federal reserve chairman ben bernanke and treasury secretary tim geithner to capitol hill for hearings before the senate banking committee and the house financial services committee given the charade on capitol hill when j.p. morgan chase c.e.o. jamie dimon came down to testify a few weeks back we shouldn't expect too many tough questions about this latest financial scandal then again and treasury secretary tim geithner knew what was going on when he was head of the federal reserve bank in new york you might actually get some answers after all if there's one thing republicans love more than protecting wall street it's embarrassing the obama administration but here is the

deutsche bank made six-month lows. if we look at a five-month chart, you can see it here. morgan stanley are almost 1-1 correlated. morgan stanley is exposed to systemic risks. it's another reason why i think next week's report is going to be important to show that. >> he's buys a put spread tonight. it's always good to review the play book and see how it works. this is a bear strate where you buy one point and buy a lower sell put at the same expiration to reduce your cost. you want to make the money fall. that's also where your profits are capped. walk us through the trade. >> yeah. so today when morgan stanley was around $14, i bought the 13.11 put spread in august. so what am i doing here? i bought one of the august 13 puts for 40 cents and i sold one of the august 11th puts for 11 cents some of net put, i paid 30 cents, my net risk is 30 cents. i start to make money when the stock is below $12.70. it's great risk reward. morgan stanley is near the lows of the last year, so i certainly wouldn't short the stock, but think the one way to play the theme of investment bank

deutsche bank had good things to say. >>> time for the upside call. we mentioned nike's tough day. a couple weeks back, dan had a simple trade on the giant. just short it. he made three times his money. here is how. on "options action," how we just do it, risk less so we did make more. dan thought shares of nike would get knocked by europe. >> a research report commenting on weakening shoe sales or trends in china and the u.s., and weakening apparel trends this western europe. >> shorting the stock? might as well go one-on-one with this guy. to define risk, he bought the 97.5 put for $2.50, now dan needs mikey to fall below the strike put price than by the $2.60 he spent. $2.60? we don't have multimillion shoe contracts. just spend less. dan sold the july 92.5 put for $1.35 and created his put spread. but more importantly, he made making money easier and here is how. between 2.60 he spent buying one put and the $1.35 he collected selling the other, he cut costs to to $1.95. and now instead of needing it to fall, he can see profits fall to $96. 25. hold the applause. because there i

morgan except for a as well as deutsche bank and some other banks that may or may not have been involved in something here so it is possible we'll see a criminal prosecution i wouldn't hold my breath and i think the old lesson of this is that you know you steal one hundred dollars and you may go to jail you steal hundred million dollars and maybe that you know you end up in the in the house of the senate. sadly let's switch gears here france france holland a whole on just introduced a new budget there is a new french president brings back free sarkozy tax levels on millionaires and big corporations how do you see his policies working out compared to the e.u. and i.m.f. austerity demands. well i mean i think france is beginning to attempt to articulate another path forward we've seen this sort of devastating stories in spain and ireland and greece and we've seen what austerity often brings which is generally speaking more suffering a weaker economy and quite ironically lower tax revenues because even a rising share of a shrinking pie often means less for the government what all along is d

in germany, the deutsche bank and commerzbank among the day's best. >> we stick in frankfurt were the blue-chip dax was higher on the day, 1.25% higher. it was a similar story for the euro stoxx 50. in new york, trading is still under way for the dow jones industrial average, currently little change. for the euro against the dollar, declining, $1.2260. british bank hsbc says it is expecting a $2 billion hit from scandals over money laundering and miss selling of investment products, but that is not putting that much of the debt in the firm's profits. >> net profit fell just 8% to about $8.5 billion in the first half of the year. earlier this month, hsbc admitted that it failed to apply rules against money- laundering. clients were allowed to move funds from countries like mexico and iran into the u.s. without proper checks bit of a u.s. senate report said that ultimately benefited drug dealers and terrorists. >> france's call for an emergency meeting at the u.n. this year on syria. the diplomatic deadlock that the security council remains as a fighting rages on, especially in the nort

the national security council staff, and before that, for seven years chief energy economist at deutsche bank. adam will be giving us essentially the base case. eia is sort of the gold standard for government forecasts of the energy world and he'll be talking to us about what they see in the future. the second presenter will be ed morse, who is managing director and global head of commodities research at citigroup, and really the man responsible for identifying a lot of the trends that we're all talking about now, and really trying to flesh them out, when everyone else is putting out three-page papers on the issue, he's putting out 100-page ones. i don't know whether his staff enjoys that, but it is a benefit to all of us, and giving us really robust data and information to talk about. he's previously served as head of commodities research at credit suisse, and deputy of state for international foreign policy. no more introductions. adam you've got eight minutes to tell us your view and the eia view on the future. ed, you'll have eight minutes and then we'll have a chat. >> are we going to ha

deutsche bank credit to group the law and society in general but will lie mark a turning point and authorities serious pursuit and punishment of wall street crime will talk about it and why haven't there been convictions of senior level executives from big wall street firms for crimes related to the financial crisis in the several years since well here is how it was laid out and the oscar winning documentary inside job. was go for more do you think there is some more systematic investigation being undertaken because of your find the concrete spinal please i have to disclose something. well the director of that film discussed it with us we interviewed charles ferguson who is out with a new book i should mention and we took stock of where he sees us now and from wall street clients shelling out for consultants to help their daughters get into the best sororities to the royal version of austerity in europe we'll cover the financial stories that triggered our gag reflex today let's get to today's capital account. it's been roughly four years since the financial crisis and it doesn't feel like a wh

contracts the benefits may take a while to be enjoyed we've got analysis from the chief economist at deutsche bank in the business bulletin and about five minutes time from now. ok before we get to cody with the business let's get to the r.t. world update now will start. with egypt it's where the parliament has convened for a brief session despite being ordered by the military to dissolve it was elected earlier this year after the country's first general election since the revolution it was banned by the supreme court in cairo last month the parliament met in defiance of the ruling after a call from the new president mohamed morsi it is the latest confrontation between the new leader and the military amid rising political tensions. tough new western sanctions already forcing iran to shut off wells that is vast oil fields production has been cut to the lowest levels in two decades meaning billions of dollars in lost revenue a senior iranian official says a private oil export group has been set up to try to bypass a european ban on buying the country's oil sanctions are intended to put pressure on i

or whether it's goldman sachs whether it's bank of america whether it citi group whether it's deutsche bank whether it's credit agricole whether it's society in general what they've done over and over is the same thing they take out the assets of all these small and medium sized enterprises which are the backbone of the capitalist system of our economies more people are employed by small medium sized enterprises than by these too big to fail there's a long list of small companies that this guy destroyed through his crony sort of situation here same thing with malcolm glazer and manchester united they loaded up with debt pay themselves a huge multi-billion dollar dividend and now to try to pay off that debt are going to go public but that stockland up in pension accounts and be left to die so five years from now it'll be we're down ninety percent from where it started so that's another huge global thieving campaign well of course all of these crimes from the banking sector are allowed and overseen and aided and abetted by the financial services authority one of the. companies i refer to the