deutsche bank under shares. the u.s. fed has raised major questions about the bank's financial reporting. >>> apple reports another strong quarter of iphone sales although just shy of analyst forecasts. this chinese.appetite offsets future demand in the u.s. >>> microsoft sets a lofty goal for nokia angling to get the hand set business back in the black within the next two years. >>> and all flights have been suggested to by halted in israel as a rocket lands close to tel aviv's airport. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. if you're just tuning in, thanks for joining us here on "worldwide exchange." as always, we look at how the u.s. futures are faring ahead of the equity markets. right now, we've got gains in yesterday's session, 0 of 4%. 0.6% for the s&p. we did see a fresh interday high, right now, just 17 points off that qk level. so we'll watch that in the session today. we did see the ongoing weakness in the small cap versus the large caps. we'll be t

and, deutsche bank is the largest investment bank. the second-quarter profit fell 29% as the company paid taxes. the tax payments increased 49%. welcome back to count down. i am caroline hyde. joining us is ryan chilcote. the european numbers seem to be good and they are raising their forecast. they say that there was an increase from before. why they are seeing it. it is cheaper and no-frills. >> they its present up, to be fair. >> it is interesting that they just call it here in europe. outside of europe, it remains. i have not tried it out myself. at 7500 euros -- >> invite impact all of the kids in it. can pack all of the kids in it. units purchased by that and i guess i could say i have one. badhey have a bit of a reputation. >> it cost me $3500. it has an alarm system and a cd changer. that is a good value. >> they say they are sticking to their targets and are increasing delivery overall to earnings. >> the european car market will rise this year and more than the original. now,riginal was 2%-3% and it is 3%-4%. this is counter

deutsche bank is accused of for financial reporting and faces large fines and allegations it defined .s. sanctions through involvement in business operations in iran. and that's not all. several authorities are looking at whether the bank took part in the manipulation of currency exchange rates. observers expect the bank to be tied up in legal disputes for a long time yet. it is involved in around 6000 cases and has earmarked more than $2 billion to cover those costs. >> not very good news for one of europe's largest banks. >> traders in frankfurt were not particularly pleased about the news from deutsche bank. sure, investment banking is going a little better than expected and profits are little more on the bright side dan people expected, but the rating agency moody's downgraded the credit worthiness of this day german -- big german bank and people here are very unsure what to make a future prospects with possible fines or civil suits looming with all those legal cases the deutsche bank is battling at the moment. the share price is reflect and that -- reflecting that. for the year,

like deutsche bank has a lot of making up to do. same business headed by -- >> thank you, hans. their international correspondent in berlin. >> coming up, how should investors be positioning themselves? our guest tells us, next. ♪ >> is about a clear commitment to ukraine. united, a democratic, european country. that was the foreign minister of ukraine speaking in brussels, explaining the reasoning behind me fresh round of sanctions. welcome back. this is "countdown." could geopolitics be the catalyst for a correction? things are going into gaza. rolling into gaza. canmore on how investors navigate these times, william joins us live. good morning. good to see you in the flesh rather than down the line. this bite movements on the benchmark,t mark -- shruggedave largely off offensive in gaza and ukraine. will that continue to be the case? whereasis striking is previously coming years ago, one would be very much afraid about the uncertainty related to the geopolitical developments. there is no way you could anticipate how they would un

the question is how does deutsche bank fix this. >> let's talk about the timing more. coming to light six or seven months later -- how does the bank react, and how does this play out? do they know they have to fix these problems? do the issues still remain, or is this just an old story? >> when the regulator wants to issue a letter like this they can do it private. they canceled the bank publicly or issue a letter privately and later make it public. if that is what happened it may be an indication they don't think the problems have been fixed. the next step they can do is ask which bank to restate some of their earnings. the asked deutsche bank -- next step they can do is ask deutsche bank to restate some of these earnings. maybe these changes in january weren't enough for the regulators at the federal reserve bank in new york. >> fascinating story. we are going to get more from the global head of equity trading strategy at citigroup. i want to talk about the sector. regulators versus banks. it has got to be the biggest headwind. if you are trading banks, how do you pla

if you look at the underperformance relative to the bank index, deutsche shares are off 1% this year,ally lower priced than some of the other banks across europe. what is it about deutsche bank here? >> in the case of the dutch, we have a big -- coming from the 8.5 billion equity there is. that has to be factored in in the future, yeah. >> so let's look at the positives here, fixed income currency commodities division. flat versus some of the declines we've seen across the competitors. that is good, isn't it? >> yeah. there's actually -- the second quarter beating the consensus, which i think tells you a lot about the consensus. to some extent, it has become more and more pointless in the business. and there was quite a bit of results which has always been a strength in the investment bank or franchise for the 10% increase quarter on quarter. equity was down and that's more of a -- right across the other equities like the french. for example, societe generale, low volume and i think it was down by 12% quarter on quarter. >> equities say they're going to be hiring people in the u.s. to

is a bearish on georgia. -- on deutsche bank.prophet ju -- profit j follow me on twitter. ♪ >> welcome back to "on the move ." 30 minutes into your trading day. let us look at how things are shaping up. two opposing forces. geopolitics on one side and earnings on the other. the equity market has gone higher. european business correspondent. three stocks to watch. >> some of the biggest movers was on top of the charts is gkn. toy provide parts streamliner and airbus. the british pound has been hurt in sales. income is lower year on year. the profitability is improving. it was pretty brilliant about the the year ahead. on stoxxthe charge 600. not far behind is the u.k. retailer was out more profitable and with a bigger value. still the second big as a retailer in terms of sales and in the u.k. driving higher. it comes toior when online. it is a company that has its businesses.alog it knows how to ship your garments quickly. it is still in, terms of brick and mortar. it feels like you needed the multi channels and being able to walk

of course they could take deutsche bank down so he goes on to say despite the high p. e. ratio and despite the low trading volumes investors can't quite stop themselves from investing because they believe that the fed will step. and right now professor michael dempster he quote says i would be extremely wary of stock markets right now the last crisis was caused by keep money and it's happening again via q e which is very very worrying q.e. started as a way of priming the pump but no one knows how to turn it off without causing financial havoc that's important. to turn it off so these dumb policy makers turned on the switch of q e and they don't know how to they don't know where they off button is they don't know how to do that right stacey this is very interesting out of though the guest is for later in the show but i'm going to cancel the gas i want to talk to you in a second half instead this is much too interesting look at the state of the second half i'm going to stay for the second half that's fantastic well state for the second half we talking with stacey some mo

take us to deutsche bank. fixed income held up. >> it did. he isir to betting the house on investment banking? maybe not betting house, but he is putting his stamp down. commodities and currencies are the drivers. deutsche bank, investment banking is where they are committed. that beat. better news than their cohorts in the united states of america. your tax bill, that is what lumped them on the net income. if you look at, in principle, this is a bank that has raised capital. it is moving towards a better finance, a better capital , and thebank investment banking is doing slightly better than the market had anticipated. you have got to say that that is not bad news all around. i want to tie this together as i look back at sergio armani -- investment ubs' banking numbers and they beat. you look at deutsche bank and again, a slight improvement on the investment banking. i just wonder -- we did not have time, but the next question is, are we at the trough of investment banking? have we hit the cyclical low? or am i being too optimistic saying th

going to cut the dollars off from your derivatives we're going to try to take deutsche bank down which of course they could take to your bank so he goes on to say despite the high p. e. ratio and despite the low trading volumes investors can't quite stop themselves from investing because they believe that the fed will step in and they believe that it will have to happen and right now professor michael dempster he quote says i would be extremely wary of stock markets right now the last crisis was caused by keep money and it's happening again via q e which is very very worrying q. he started as a way of priming the pump but no one knows how to turn it off without causing financial havoc that's important to remember nobody knows how to turn it off so these dumb policymakers turned on the switch of q e and they don't know how to they don't know where they off button is they don't know how to do that right stacey this is very interesting out of though the guest is for later in the show but i'm going to cancel the gas i want to talk to you in a second half instead this is much too interestin

the question remains, what does it do to deutsche bank? you look at the provisions.hey have 1.2 billion dollars set aside for little costs. a cushion.have deutsche bank has a big provisions but we do not know what their total fine will be if indeed it is going to be examined next and it is on the sanctions. so many probes. it is not sanctions. not a myanmar are libya. we still have libel and affects manipulation to go through. >> the prospect of another $500 million in u.s. profits is great if you are a regulator of the united states. i see another fine, a big fine. i still struggle to really work out how they are common to the fine. billion dollars for bnp. it's a volume, the amount of trade or also about working with the regulators? allegations against credit suisse and bnp is they do not work with investigators. what is the case with commerzbank? >> i am sure the banks would love to have a central formula or complicated formula. the fact of the matter is it is not that simple in part because in the u.s. you have multiple regulators looking at this. the u.s. distri

we are in a situation where you talk about deutsche bank.g at what could happen next. when we look at commerzbank, this is a small fine. are we beginning to understand that maybe the crime does fit the punishment? we don't know what it will finally be. $500 million, is this the way the regulators are not going for leather and targeting everybody? >> the interesting thing about u.s.egulatory parts of the sizes you have competing interests. you have three or four regulators looking into this. it you have the fed, then your state regulator, you have the prosecutors and the department of justice and the southern district of new york. this operates semi-at thomas lee. alternately they take their orders from washington. the u.s.know where regulators are. we don't know if they are acting as brakes on these large fines. once the settlements are final we may get the back story on how much of a concern there is about systemic risk if you continue to go after these banks for what appears to be criminal activity violating u.s. sanctions laws. business w

i don't think there are problems for deutsche bank. >> why does the market say this is not a big deal? the market -- i cover the banking crisis. what is the credit default swaps? i know what to look at. the market is not saying that deutsche bank is about to implode, not even close. they may -- >> not imploding issue. it is issue how accurate are financial statements. they raised some stock -- >> they have accurate financial statements -- >> charlie, no one knew financial civil would implode in 2008. >> yet they did. >> 2007 was the top at that point. >> are you kidding me. listen, i remember covering this. the market was trading off credit default swaps of all the big banks were going through the roof because the market was saying there is a big issue. i don't think we're getting that here. we're getting technical violations. melissa: move on, senator ron wyden is fearing the worst saying as many as 25 companies are considering relocating outside of the u.s. in order to avoid heavy taxes. these are companies fleeing the country because they don't want to pay taxes. money goes, more t

a significantly higher threshold so perhaps that is what deutsche bank is comforted themselves with this morning. >> this is the first bank to have to restate its financials, writing bank of america was at to do the same thing as well. the difference here is it went so long and deutsche bank did >> do anything about it very that is a fair distinction. i would caution against using all the banks. when commerce bank was announced a couple weeks ago, everyone turned to say this means deutsche bank might be next. fair point. thank you so much. we want to say, in europe, tensions are on the rise. we just got word that militants in the region to fighter jets in the east of the country, no immediate information on the country. news does this recent about the downing of tea does aircrafts ramp up more pressure on europe for sanctions? >> that is entirely possible if you think about it. six days, five days after a flight to ma 17 was down. the idea rebels are using antiaircraft guns, presumably not the same antiaircraft weapon. nonetheless, antiaircraft weapons that are able to down aircraft that

that is what a report from the new york fed said about deutsche bank's u.s. operations. installing on sanctions. the eu delays tougher sections against moscow. we will assess the risk to russia's energy giants. ♪ >> good morning, everybody. you are watching "the pulse." we are live from bloomberg's european headquarters. i am guy johnson. let's get to our top stories. it limits are sending out pressure on hamas to extend a cease-fire that has -- in a conflict that has killed nearly 600 people. israel's president spoke today about the cancellations. this is what he had to say. >> it is not to stop the flights, but to stop the rockets that are endangering the flights. , speaking earlier. let's go to elliott gotkine. the faa putting a ban in place. it is a 24-hour ban. let's talk about that and put it in the context of what we are seeing in this wider conflict. ban from the federal aviation administration, almost like an automatic ban after a rocket hit a house about -- mile north of the airport now, there are airlines flying in and out. british airways is flying. el al int

deutsche bank and barclays are targeted. people close to the investigation in new york say that early findings point to problems at both of those institutions. and barclays bounce back to profitability. it posted income of $273 million, reversed a large loss in the same period last year. they cut cost as well as 7,000 jobs. that is this morning's company news. >> scarlet, today marks the final day in a 13-year battle over argentina. the country has a few hours to make good on u.s. bondholders. if not the country could trigger default on its entire $29 billion worth of current debt and that would send ripple effects. we have a chief investment officer based out of the bahamas. he knows a thing or two about global cash flow. if this happens, if there's bankruptcy tonight, how do u.s. banks conduct business tomorrow morning? >> it's quite a separate issue. and there's an issue with argentina's default that we need to address. and that's not on the u.s. bank but investors globally need to realize with some of the risks associate

the question on all this, we will be knocking on doors asking what this means for deutsche bank. k is st to be prosecuted? and how big is that whole going to be. be. >> we will find out why these companies are getting a boost right after the break. ♪ countdown, i'm ryan chilcote. and i'm anna edwards. our markets editor manus cranny joins us now for a look at our top scenes from the day. was it ge finance ministers meeting getting your interest? >> i think they put really nicely. tokel has almost signed on the report by renzi. it is a very interesting take. the way they make the analogy is that when roy came into power in aain, he was going to go for growth pact. the whole european landscape. will disruptple the germans from their agenda. are put there for a reason. >> i like the way that you keep saying that the germans break the rules in the early 2000's, but what good it did them. >> everybody has a very short memory. it will impact markets per se, but it has been a backdrop. there's been a whole debate about greece. could they, would they, should they need another bailout? hea

and deutsche bank is reporting earnings on tuesday. update on their performance on wednesday for bes and bbva. and thursday it will be santander. great to have you on the show again. looking back to the u.s. earnings and the surprises we got from there and the commodities, i break down what was seen to -- >> i would say two-thirds is good. one-third is driven by social. you have peanut butter as a surprise for them in second place. it's a normal volatility fixed income at a 15 to 10-year low, and that clearly means negative news for fixed income revenues so far, but that also could be a big upside potential in the future. >> as far as regulation is concerned, you're attributing that to a third of the decline right now. so for those who say bulk is not working having the impact we were hoping for, it is having an impact. >> it is having an impact. many of you have resulted in low inventory levels for the investment banks. and that means that limits trading. on top of that, we believe overa overall that the investment banks are being red

fine based on extremely thin claims about doing business with iran now america is going after deutsche bank for the same reason because of course they don't want germany and russia to come together and fight off the america britain. ally that they have going on over there in ukraine so of russia and germany a line of course that would be a game ender for the america u.k. ukraine fandango so now america is saying ok we're bankrupt to put you out of business we're going to cut the dollars off from your derivatives we're going to try to take deutsche bank down which of course they could take to your bank so he goes on to say despite the high ratio and despite the low trading volumes investors can't quite stop themselves from investing because they believe that the fed will step in and they believe that it will have to happen and right now professor michael dempster he quote says i would be extremely wary of stock markets right now the last crisis was caused by keep money and it's happening again via q e which is very very worrying q a. he started as a way of priming the pump but no one knows h

let's bring in deutsche bank analyst.or coming in. >> large cap two reasons, they're launching a hemophilia drug. number two this company has binary events that are not in numbers. expect the stock to move 30 to 100 by the end of the year. they could stop progression of ms rather than slow progression of ms. >> you said the stock could move $30 to $100 per share this year. >> on that date. if it works, either way. no, only upside. we do not see a lot of downside in the numbers. i think expectations are very low. for the proof of concept for the biology here. very interesting. >> all right t. second one is a small cap pick? >> small cap pick, tesoro, kind of off the radar screen. number one tape have a drug that already has good data. they will launch it next year. number two, they have a drug going to be launching or new data on ovarian cancer. we think that drug will work. peep think it's a $23 million drug. we think it's a $3 million next year. rare and small cap biotech, a good management team. this team has been in ot

arm of deutsche bank, of course, one of the world's largest banks and a germa german-based bank. letter says deutsche bank has made no progress at fixing previously identified problems. and then the report goes on to say that the letter, which hadn't been previously reported, ordered senior deutsche bank executives to insure steps were taken to fix the problems. it also said, this being the letter, that the bank might have to restate some of its financial data that it had submitted to regulators. the report quotes a deutsch spokesman saying the bank is working diligently to further strengthen systems, but it is affecting the stock right there, as you can see. back to you. >> mary, not that you would know this off hand, but why do you think it's the case? or wouldn't somewhere in its financials -- since december, deutsch had said something oblique about a reference to this letter. why is this the first we're hearing of it? >> i'm not sure that they would have said something like this, unless there was some kind of civil action. usually, banks are pretty quiet about what their conv

in many waysk is treated just like deutsche bank.ial rules really for commerzbank. again on all of this, think of the numbers we're talking about. asset billion dollars is a lot of money. bnp paribas -- $9 billion. what you have to do to turn this into an outbreak of equation, solve for x. i know adam johnson eestnet scores and high school. you have defined what x is and see what deutsche bank is going to end up owing. >> is this extortion? rd being used by a german or french or swiss authorities? >> in germany not quite yet. again, the number is lower. publicer -- the level of sort of outrage here in germany was nothing like you saw in france with $9 billion for bnp paribas. they are not comparable. the question are all of this is -- did these banks actually do wrong, and if they did were wrong, what should be fine be a question of systemic importance? should you be worried about the health of the european economy or do you worry about u.s. sanctions law? >> hans, doing a little bit of algebra, it looks like the bnp paribas slightly

the chief executive of deutsche bank is seeking to keep truman -- keep some to foul a criminal case against has denied any wrongdoing. york's topnew banking regulator is said to be pressing to put foreign exchange monitors in place at deutsche bank and the barclays. that is according to a person familiar with the matter. this comes as part of an investigation as to whether traders manipulated benchmark currency rates. skied deutsche lens second-largest shareholder has rejected the buyout offer. it said the offer was too low and that it significantly understates the value of the company. b-sky-b offered 6.75 euros a share. ."lcome back to "countdown i am caroline hyde. "sharknado" attracted an enthusiastic following online and became a surprise hit. will premierework the inevitable sequel. it is also the debut of a new home theater technology developed by sci-fi. we explain. obviously, there were so many unanswered questions to last year's sleeper hit "sharknado" that the sci-fi network decided to release a sequel with this time, they are bringing back rate hot with action not just to your s

in deutsche bank, ubs, credit suisse. there is an element to be tied up.payment protection insurance and the other big number -- >> the massive number. i am surprised this is still going on. you still getting phone calls? >> you have an opportunity to sue your bank. >> the number this time around is big. >> 900 million pounds. people say that is a big improvement from 3.5 billion this time last year. it is still a billion pounds. >> and we have litigation charges on top of this. pounds is indeed ber, i have just rounded up. pretax profit dropped by nearly 50%. not you have here is guidance on how to set a foreign exchange. they still do not know. i read a note from number of -- from nomura saying litigation could cost up to 7 billion pounds. there is a civil case involved. there is litigation with the lx dark pool in the united states. pool which dark purportedly misrepresented themselves to investors. >> not positioning for this means they do not have their arms around it yet. >> it is another major litigation process. .hese are the questions how is antho

adam: coal stocks fall into the red following a downgrade from deutsche bank. nicole petallides on floor of new york stock exchange. nicole. >> glad you went full circle on that. people may have been wondering what you were getting at there. that is exactly right. deutsche bank talking about coal stocks. with that seeing a drop, peabody in particular. down 3.7%. the concern here, this is why they downgraded stock to a hold from a buy, a $19 price target which is upwards down from 23 bucks, still upward from where it closed. it closed at 16 bucks. the reason behind it basically coal prices have been under pressure. cost pressures in the foreseeable future for name like peabody energy. instead of covering the whole sector will look at stock specifics. a. because a name like consol energy, they remain with a buy rating. that is because they have a fast-growing natural business and solid financial position. they will look at coals on case-by-case basis. cloud peak energy was down 3%. the dow held 17,000 but we did have down arrows across the board in many of these

societe generale and deutsche bank are under investigation's for violating u.s. sanctions. >> let's have a look of the markets. as i said, this has been good drag otherp and french banks up with them. societe generale has gone up 2.96%and credit agricole, cac40 and the hole the london ftse. the usa has its longest streak of corley gain since 1998, sir .75% a short time ago. streak of gains since 1998, 0 .75% a short time ago. switzerlanders like and luxembourg will start having to turn over the names of their account holders to u.s. tax authorities. some 70 countries have agreed to only after swiss banks, ubs, and credit suisse were hit with fines for helping americans hide their many. for residents planning a summer holiday to another country and the union, mobile phone data roaming costs will be capped so you should not go home to a terrifying phone bill. the top prize for one megabyte of data has been cut to $.20 of a euro from 45 and text messages will also fall by a quarter. the commission wants to abolish roaming fees altogether by 2016. the founder of telec

deutsche bank says it is responding to requests from unnamed regulators. restaurants are up 6%. why's that? clarence otis has agreed to step down by the end of this year. investors have been unhappy with his turnaround. in the meantime, president obama may grant work permits as soon as next month to millions of undocumented immigrants, marking the first major action on immigration. mattingly with more on this. what can the white house do on its own? >> what we have heard and seen behind the scenes, top obama administration officials have been working to try and figure out what they can do to address some of the 11 million undocumented immigrants. what we know at this point in is two realre tracks they are considering. work permits for undocumented immigrants, primarily those that are the parents of u.s. citizens or guardians of u.s. citizens. that is a couple million individuals there. they are considering the possibility of expanding a deferred action plan they put into place in 2012 for children brought to the u.s.. that was a plan that lasted about two years. it was in order

bank,, including deutsche banks,ised equity -- including deutsche bank, have raised equity. time for a bloomberg exclusive. sap is one of the biggest gainers on the stoxx 600 this morning. online applications help boost sales. we spoke to the ceo an exclusive interview. stepe cloud is a logical in simplifying your business. and we why a group 39% raised our guidance for the cloud for the year. one very important point for investors is our core business, the traditional software services, grew eight percent in constant currency. the core is still growing and it is holding solid while the cloud is really taking off. >> you mentioned about the foreign currency concerns. it hit by about two percentage points. what are the major -- what are the main currencies? would you like the euro to become weaker? >> i would, actually. the fact of the matter is, when you look at our business and the investors judge our business, the tendency to look at things in constant currency because that is what we can operationally control. we are running a very profitable business. we have made the tr

unit of deutsche bank is suffering from ongoing financial reporting problems.ngs central, dow chemical set to report quarterly reports. we will talk to ceo andrew liverus when "squawk box" returns in just a moment. . >>> good morning him welcome back to "squawk box," i'm andrew ross sore kin along with joe kernan. . >> you have an allie. >> we will talk about allies in just a second. becky quick won't be here, our guest host carly fiorina a former chairman and she is chair of the american conservative union foundation. you guys are already against everything you stand for? pretty much. the futures, take a look. we got some green arrows across the board, things are looking up for the day, at least for the moment. they were looking a little better before. dallas opposite higher. s&p largely half a point. the nasdaq up as well. the ten year, you are looking at that 2.46 is the football of boat. shares of apple are lower. not quite as much as they were in yesterday's after hours sessions, apple earnings came up short as apple sold fewer ipads than an a lists expect

>> that's what struck me about the deutsche bank. they said that vix is bottom.d, going back and forth with the travel trust manager, and i said, listen, the job cuts are kicking in, revenue. she goes, no, the deutsche bank piece was about increase in business, stabilizing. if that happens, and you have mna is good. >> we know that, capital markets are good, the ipos, the fee structure, fees when you have a very strong fixed income cap on commodities. >> multiples here are low. no one is expecting that rates are going to have this kind of move because no one expected the job numberment you' menumber. you'll see these flying meaning they could fly into the report, and they report in two weeks. >> we'll watch that and the commentary around it, particularly if we see a ten year staying at 27 or moving pup. >> look, this is the focus name. the industrials too, but the banks have been -- bank of america is still down from where it was a couple year ago, and this is brian's chance. if there's no screw up, this is best in show. i know, what a caveat. >> no psychiatry up

neither hsbc or deutsche bank will comment on this. this is 7:46. >> you name it. the level of profitability is going to expand. the u.k. company has been heard by the strength of the british pound once you bring back sales from north america. half of the sales come from byope. they have been hurt foreign currencies weakening in asia. as well. we are expecting first-half sales to drop a little bit. we are seeing adjusted net income better than expected. the key take away is the pharmaceutical unit. this is all about opiates. to be abouting heroin. they made a treatment to help addicts. strong.ry got very strong market share. competitors are starting to weaken in terms of sales. >> they are going to farm out pharma. that is the take away. >> they are going to be selling thees to another ipo in next month. >> it has got a big share of the market. theas about two thirds of market in the united states. >> the growth is still there. the amount addicted, this is going to be a company that can continue to build a unit on its own. >> sales fell five percent in the second q

what's going on in the big picture here is the international bankers are you know insolvent i mean deutsche bank are b.s. you know chase citigroup bank of america all these huge money center banks are insolvent where it's zero interest rates they're desperately trying to reflate the global economy i think that's the key because they're just really scared a deflationary depression that's when bankers go to jail that's when they're soup lines that's when people get really angry and bankers do go to jail if this will go to jail so they're desperately trying to reflate the global economy and the only thing the united states as do that is military industrial complex oil prices at the pump are up thirty five cents here in the last week and the artificial inflation of oil prices and defense contractors is or attempt to reflate the global economy in the big picture so. again has been very restrained but it's some point you know really have to. be has if you think some of our own are going to speak that's for sure but we have to intervene and it's just a big question now he's been very restrained and i t

companiese value in like deutsche bank because the expectations are very low. i see a lot of durable businesses very expensive. i am offering valuations with plenty of risks associated. in ave we priced significant slowdown? >> i believe we have. markets got ahead of themselves. i believe they are quite bullish. 56% has been talking about have eaten results. those results are down over the last quarter. the revenue numbers are disappointing. revenueess strong numbers. they have not been investing adequately in new capital. long-term growth prospects in the corporate sector and the u.s. economy likely to be much less grand than many analysts are currently sick testing. should i be stepping back from the equity positions i put on? >> i think you should we neutrally or modestly overweight. i would be wary of retreating to the bond market. i would also look at some markets people have been neglecting. i could see reasonable value i would be japan. looking at toyota. worldare areas of the people love to hate. i see some value among companies like samsung, companies

that is what the wall street journal has called deutsche bank's financial reporting.problems mentioned, week pathology. importn is suspending from china over me port -- meat imports. u.s. faster giants have stopped orders from the company. and more ignition switch problems, but this time not from general motors. chrysler is recalling almost 800,000 suv jeeps worldwide. the ignition switch could shut off the engine and disabled the power steering and air bags. >> elliott gotkine has given us terrific average from tel aviv. he is himself down toward gaza to ashkelon, a biblical city. mr. gotkine joins us now. statet, the secretary of is in israel. was his trip to egypt successful? if it was] well, successful, we don't know yet. he is again in israel to try to push forward the cease-fire proposal. he says progress has been made, but there is still work to be done. have a sense, we could cease-fire. color for us the way the secretary will be received by mr. netanyahu and his team. >> i don't think there is any and necessarily bad blood from secretary of state carries -- o

deutsche bank will handle that ipo. a number of shares have not yet been determined.r deal could be in the works. dealare planning to make a with dannon. the buyout would let them shift their tax base to france. companies are trying to re-domicile in france. >> thanks for bringing that up. that is new. >> it is a lower tax rate. they will not deal with the french business environment. they will still u.s. infrastructure and all that. >> very good. thank you. august 8 of 2007 -- talk about starting a company at the absolute worst time. 10 days before the beginning of the financial crisis. david from virgin america. it has been a seven-year slog. >> finally announcing they will file for an ipo. the placeholders $115 million. the ipo could be larger than that. we should point out that as soon as the news came out, this is a relatively small company. small company, but it speaks to the resurgence of the airline business. >> not to be confused with the uproar, when they decided on this project. mr. branson was removed. the numbers 22% ownership. >> that is just one of the

>> i asked someone at deutsche bank, and he said he focused on one of the lines in her speech.ates could rise sooner than expected if economic data continued to improve, if the surprises continue, meaning they have been surprised, meaning we need more continuation of that. he said they have been wrong perhaps on the economic forecasts, but their unemployment forecasts have been a little bearish. improved a little faster than expected, at least on some measures. that is, to him, one of the most telling things on a macro level. he said it seemed markets were focused on that. >> she said she was concerned about the long-term unemployed. there is nothing monetary policy can really do. what are people saying more generally about the dollar? it has had a good few weeks, few months. like they do not seem to be giving up on it. it was a favorite trade going into the year. strategists kind of had to readjust. they are expecting it to get stronger by the end of the year. our median forecast has the dollar index getting about 4% stronger by the end of the year. >> what about the pound? i

deutsche bank, not all bad news for germany. you have got the bank stock up by over 1%.gone from overweight to neutral. 33 euros. we are at 25 right now. shire, this is the one everybody is talking about. they want a home where they can get a lower tax rate. seems to be the theme for most of these u.s. companies. acquisition because of tax reasons. higher foris 48% shire than when they first approached the company. will it take a hit? seems to be. >> ok, thanks. those are three stocks. time for some top headlines. israel launched its largest offensive in the gaza strip in nearly two years. assault out an aerial on more than 150 targets. 23 palestinians died. hasrmy spokesman said hamas to pay for rocket attacks on israel. with federal prosecutors. thatew york times reports the deal could be as much as $7 billion. brazil, as if you hadn't heard, they are out of the world cup. to germany in front of the home crowd. it is the biggest loss ever in a knockout round of the tournament. will be decided when argentina takes on the netherlands later today. while germany might be f

is an analyst at deutsche bank securities with a buy rating on pepsi shares. bill, there was some striking margin expansion at pepsi. nooyit enough for indra to silence the critics that might side with nelson peltz? >> i do not think so. he has made it clear that he is in it for the long haul. he has his mind made up. >> nelson peltz might not be quiet, but the folks that he needs to persuade to go along with him are listening to his story on the one hand, and looking at the numbers that noo yi is delivering on the other. is she offering enough? greatk, this will be a set of results. it is only one quarter and he has some broader point about having the benefits of a beverage and snack business together. it is one battle in a long war, and like i said, he will continue to press pepsi shareholders. it is probably not enough to get him to walk away, or the people that he needs to influence. >> does he have a point? would pepsi be a better company if it were two companies -- food on the one hand, beverage on the other? >> i do not think so. first of all, if you se

one man that caught that rectally was john from deutsche bank. guy johnson will be speaking to him. and heed the may rebound is looking for the micex to be down 10% on the year. this one is about sterling, just shy of 1.71. a big week for this trade. u.s. cpi out tomorrow. for three months, the figure has climbed higher. janet yellen calls it noise. if it goes any higher, the noise is going to get louder and she might have to listen. on the other side of the trade, it is about the pound and u.k. gdp friday. has not of england given any indication of when we are going to get the first rate hike. did anyone put up their hand and say, it is time to hike? >> we will wait and see, but it is certainly a possibility. we look forward to that number later on this week. more immediately, calls for tougher sanctions on russia as world leaders say they are almost certain that russia supplied separatists in ukraine with weaponry that shot down flight mh17. ryan chilcote was one of the few journalists who spoke to the ukrainian prime minister following the crash. he joins us now for more on that

you mentioned the first etf come a deutsche bank. >> i'm not a fan of the names.o shorten them. these are the 300 largest and most liquid stocks. this was $100 million. this is the one that is the biggest. the crane chairs product, another one that came out, is the broadest. it tracks for hundred stocks but it is small. a lot of these are just coming out of the gate. >> and they will get bigger. >> another is the market vectors china etf. >> these are predominantly privately owned midcap. with that you get tech. that is your tech and smaller play. >> let's get the last one in. >> this is what i call the easy button. 50% a shares and 50% everything else. >> etf's from china, investing in a shares. more on the markets later. "street smart" is next. ♪ >> welcome to the most important hour of the session here at 60 minutes before the closing bell. the s&p pulls back from record highs. disappointing earnings leading stocks to their worst day in more than a week. "street smart" is next. on today's edition, we remember a legend on wall street, alan ace

she has also brought with her leaders from many key german industries including the heads of deutsche bank, deutsche post, liamens, lufetansia, airbus, volkswagen, among many oceans. yesterday she toured a volkswagen plant with the chairman martin wintercorn. she's being given full military honor welcome in beijing and said to meet president xi jinping later tonight for dinner. who, of course, was just in germany in march. >> business is one thing, isn't it, steve? there are a lot of other issues, human rights issues, et cetera, et cetera. what about the more sensitive ones, do they get swept under the carpet or will they be dealt with? >> well, i'm sure they will be dealt with behind closed doors, not necessarily in front of the cameras. they will say all of the right things and talk about their great relationship as you see here in the video right now, merkel is on the steps of the great hall of the people with her delegation. basically on the geopolitical front, i'm sure they will speak about the fighting in the ukraine that will most certainly be discussed given merkel's outspoken comm

all down and sue, largely on greater concerns sanctions in russia, hurt businesses from banks, deutsche bank, british banks big in russia, lloyds bank, ing of ireland, german stocks are trading at the lowest levels since may, that's largely on these concerns about the russian sanctions but also some broader general weakness in europe as well as in the middle east. finally, i just want to note here, the s & p 500 opened down, traded down and bounced off of that when president obama came on the air and did not any additional sanctions against the market -- russia, we saw the markets bounce off. >> to be clear, one of the reasons the market is watching dubai so closely is the european banks have basically issued debt and other paper to some of those middle eastern countries, specifically in dubai and if that goes south, then they have exposure. >> a lot of these banks try to move away from the middle east in the last several years, four or five years ago and have been coming back in a big way. they are trying to figure out how to get in because the markets have been improving there >> right. >>

that the banks whose paperwork was handled by the docx forgery mill included wells fargo, hsbc, deutsche bankbank, u.s. bank, and bank of america. we contacted all of them, and each said that it farmed out its mortgage servicing work to other companies, and it was those mortgage servicing firms that hired docx. docx was owned by a company called lps, a $2 billion firm that calls itself the nation's leading provider of mortgage processing services. lps told us that when it found out about the phony signatures in 2009, it shut docx down. >> it's astonishing me that this became as pervasive as a problem that it is. >> it got sloppy. >> it got very sloppy. >> until july 2011, sheila bair was one of the government's top banking regulators as chairman of the federal deposit insurance corporation. you just described it as pervasive. >> yeah. it is pervasive. it absolutely is pervasive. and it was just a matter of cutting corners, not spending enough money, not have any quality controls. >> although banks say the courts have been accepting their paperwork, that's changing as desperate homeowners coun

. >> deutsche bank put out an upgrade in the call space.nk the rest of the sector traded well. they needed the names but have had a good one. walter energy closed down two-and-a-half t. balance sheet is the big issue. looking at the whole space and the minors, stay with the industrial metal's minor, stay away from the alluminum. that's been priced in stay with free port, southern copper. even in cliffs because they came out with a downgrade, it's not a wholesale sell. >> to your point, i like the fact there is an energy component as well. so that southern copper. >>> the box office dud, numbers were down, get this, 44% from last year. what is the name for movie theater stocks? >> i wouldn't call eight dud. >> you relished every permanent from the first three. >> i have many millennial friends friends, they are increasingly moving things from popcorn time. >> did you write that down? >> i like to tape record them when they talk and bic pick up the new ling go. i think this is starting to have an impact. some of this stuff is geared towards t

resume, barclays capital hong kong, deutsche bank, merrill lynch. he'll be arraigned next month. vic lee, abc 7 news. >>> san jose police looking for a missing 81-year-old man. silva last seen in north san jose at stratton place yesterday. silva has alzheimer's, and police are calling him at risk. seen wearing agray shirt, white slacks, gray full brim hat. if you see him, call san jose police department. >>> we got our first look at abandoned east bay school where five fires were set this week. this is some of the damage caused by the fire at adams middle school, which was closed five years ago because of budget cuts. investigators are looking for those who lit the fires either late tuesday or early wednesday morning. the fire marshall says vandals appeared to break in through a window and purposely set fires in five different locations. >> it was piles of debris that were ignited somehow. it's not possible where the fires were, it's not possible the fires started in one place and spread to the others. at least one in a completely separate room. >>> fire officials say sprinklers

we all remember those days and i will read a cloke from economist from deutsche bank who told "the new york times" in this day and age spreads around the world not around the block. want block. once a bank run is underway doesn't matter if you have good loans are bad loans, people lose confidence in you so that's really obviously shows this is really about trust. this worldwide loss of trust can safely turn to rage, riots and protests and we say in the book it went from balance sheets to the streets and in 2012 there was a poll by the pew research center that we cite in the book is that america has been more polarized now than any time during the past 20 years and what they basically said most of the increase polarization has taken place not just in the last few years but during the presidencies of both george bush and barack obama and both administrations were weak dollar administration so was definitely this polarization has coincided with the weakening of money. basically when money is weekend there's a sense of increasing unfairness that the system is rigged, that they are being de