deutsche bank?livia: coming out of europe, deutsche bank has spent more than $7.5 billion on litigation in the last three years. tom: yeah, but that's not the story. olivia: the latest fine was $2.5 billion. that came on thursday after the company was fined for eliminating bench marks. now this morning, deutsche bank has just announced a major turnaround. we have live pictures that we'll show you, plus an interview that we will bring you at about 7:10 a.m. this morning. tom, you remember back in 2012, in came the two new c.e.o.'s. they were going to rule together. since then, since that poison in 2012, deutsche bank has been the worst performing global investment. tom: it is by a mile. what i want to know is the sell side, even with these announcements today. olivia: shares are off the most since october. my big takeway, in 2012, jain and fischer said we're going hit 12% by 2015. right now, it's about -- it was about 3.1%. today they crapped that. they only have 10%. meanwhile, jamie dimon still loo

this is the strategy for deutsche bank. focusing on investment. this after they delivered their first-quarter numbers, the second-best revenue on record driven by the investment bank it should be said. a post-tax return of 10%, with planned growth leverage reductions, so this is reducing the amount of weighted assets on its balance sheet, which carry big capital requirements. the target there, 200 billion euros worth. everyone is in the same game here. barclays, ubs, credit suisse. all of the major banks are in exactly the same game of trying to do lever their balance sheet to stabilize what is called their buffer of tier one ratio at about 11%. that slipped ever so slightly in the first-quarter numbers. let's cross over to hans nichols, who is covering this story for us in frankfurt. those are some of the top headlines. a return of equity of 10% and a focus on the investment tank. this is an interesting strategy. deutsche bank looks at that site of the business. hans: and that is where we saw some strong numbers in the first quarter. of course, th

deutsche bank is expected to plead guilty. hsbc has been ordered to pay a $1.1 billion they'll charge after being charged with tax evasion at its private bank. hsbc said it was informed of an investigation regarding its private bank in 2006-2007. it said the decision is without legal basis, and the bail is unwarranted. u.s. president barack obama and cuban president castro are in panama today for a summit of the americas where they could meet for the first time since they announced plans of restoring diplomatic relations. it will be the first time cuba takes part in a summit of the americas. coming up, a deal insight. greece's finance minister tells bloomberg he wants an agreement in two weeks. ♪ guy: welcome back. you are watching "the pulse." deutsche bank is close to a $1.5 billion deal settling investigations into libor manipulation. according to people familiar with the matter, the possible deal with the include -- deal will include u.s. and u.k. authorities. hans nichols has the story from berlin. hans: $1.5 billion would

he would have to resign immediately as co-chief of the deutsche bank. it would not have much of an effect on the bank but people say that he is old enough that he will retire anyways. one of the biggest losers in today's market, not least because of the strategy. that is the way to go forward for the deutsche bank. laila: that doesn't it for us for this moment. brian: don't forget to join us at the top of the hour for the next bulletin. we will be following what happening in baltimore as that city confronts a potentially tense night. thanks for joining us. host: hello and thanks for joining us on euromaxx today. let's get the show on the road with a look at 3 of our stories coming up how milan gears up for expo 2015. meet finland's contestants for eurovision. angola poster show -- a -- and, poster show. a frankfurt museum spotlights a 1950's art movement. milan has always been seen as a mini concrete jungle. that was until now - under the motto, 'feed the planet' a major transformation has been taking place as the italian city prepares to host expo 2015.

the fine is equivalent to one quarter of deutsche bank's revenue last quarter. s a wow. that is such a big number. we already know the bank is going to go through changes. you get a headline like this how are they going to react? internally, the board has to be saying we have to reshuffle the deck because at this point -- erik: the board had better be saying something. stephanie: scarlet fu giving us the latest out of europe. scarlet is looking at the markets, i am looking at the terminal. yesterday we did an interview with the citigroup economist that just moved to the u.s. he said we should stop worrying and start worrying about the grimbo. you are not familiar with that? you are. erik: we may find ourselves in this uncertain time where it may not the a matter of either staying in the euro or exiting the euro -- staying in under current conditions or exiting because of its faults. there are some gray scenarios that would allow greece to say default, for example. default to the imf or the ecb or the esf s. efsf fund. stephanie: the issue for investors, the limbo

francine: how significant is this for deutsche bank?hing that was haunting the ceo. deutsche bank is one of the biggest banks in the world. can they turn a corner after this? hans: it provides certainty. that is what the notes are saying. the stock is up this morning. the stock was up on the news. you now have a dollar figure. you have a dollar figure for germany's biggest bank on what their exposure is. at the end of 2014, the provision for legal costs was 3.6 billion euros, north of $4 billion. over the last three years deutsche bank has had close to 7 billion euros in litigation and legal costs. that is a remarkable amount. now there is certainty and we will see if they can return to focusing on growth. brendan: you could be excused for getting one of the names of the regulators wrong. it is a long list. if i remember correctly deutsche bank shed its consumer banking assets as well. it is trying to become a different kind of bank. what will it look like in five years? hans: the big bet that anshu jain has made is that they think inve

tilde amount deutsche bank has spent 7.1 billion euros.hat is how much their legal costs have been. a lot of money. there's still some other cases out there. jonathan: hans, a lot of money has been put aside. on the libor side of things, this is the u.s. and u.k. authorities. hans: we still have that currency probe. we did have a few banks that settled. that came to a total of $3.4 billion. we still don't know if deutsche bank are going to be ensnared in the iran sanctions violation. when we had bnp paribas, they paid iran, cuba, and sedan. they had a $9 billion sediment. this is getting there on the libor front, but we have to class through the foreign currency exchange. we don't have estimates on how much that will cost. jonathan: hans nichols, thank you very much. let's keep it on the banking sector. you hear about currency vines libor, tax evasion as well. hsbc is thought to pay one billion euros after being charged in a french probe about tax evasion. stephen morris joins us now for a little bit more. you've got libor, the currency th

deutsche bank has set aside 700.25 million to settle an investigation into euro and liber manipulation. they set aside 3.6 billion in legal provision, and in total it is about 7.1 billion in legal cost litigation they had to pay over the last three years. it does include the fca. we will see how much higher it goes. it is going to be north of 1.5 billion. caroline: that is on the liber manipulation side of things. there are other things that could be facing deutsche land. >> we still have fx. remember last year when 4.3 billion settlement on potential currency manipulation was announced, that didn't include deutsche bank, and you could have potentially something on the iran side of things. they paid 9 billion on iran and cuba. we potentially have two other areas where deutsche bank is exposed to future risks, future settlements. let's see how the market response. it looks like we have a rough number on my bar, and we will see how the market reacts. >> another bank closer to home is paying up to one point $1 billion i

deutsche bank will trigger securities business, close up 200 branches, and reduce its footprint overseas. the bank has been trying to boost its profits. yesterday, deutsche bank said that legal costs cut first-quarter earnings in half. they got slapped with a $2.5 billion fine associated with a rough -- a libor rigging. and there is more action in the drug making industry. mylan has officially rejected a $40 billion offer from the israeli company teva. mylan says it is committed to a $33 billion offer from the irish maker of storebrand rugs paragraph. -- perrigo. they have already rejected that offer. the government accountability office said the engines in the f 35 are so unreliable that plans for production may have to be slowed down. the gao says the engines are half as reliable as they were supposed to be. they are made by united technologies pratt and whitney unit. pratt and whitney says the report and correctly assessed engine reliability. if you want to know where the smart money is going, the founder of the world's largest hedge fund firm like china. that sounds like sam druckenm

reporter: the shine may have worn off deutsche bank. e decision after traders manipulated a key interest rate. major but -- major banks joint -- major banks joined the libor rate. even tiny fluctuations in the benchmark could lead to big profits. that is what traitors did, they rigged the libor to earn money for their banks and skyhigh bonuses for themselves. but now they are paying the price. deutsche bank faces a 2.3 billion euro fine from u.s. and tax authorities. it is the highest yet in the libor scandal. switzerland's ubs has already paid out the equivalent of 1.2 billion euros and britain's barclays bank was given a 325 million euro penalty. german investigators german regulators are also investigating -- german regulators are also investigating. the scandal has cost customers billions. brian: we have more news about other corruption scandals. investors are getting a very cold and hard look at the financial impact of a massive corruption scandal at the brazilian energy giant petrobras. matt: this state run company now reports it h

we begin with deutsche bank dramatic rebound. the german lender plans to reduce cost and cut back its ownership of its consumer unit. guy: for more, let's go to hans nichols from frankfurt. where is the bank trimming cutting, where is it looking to grow? hans: they are going to be cutting in retail units. it is not just postbank. deutsche bank itself, their retail outlets will drop by about 200. there are currently about 730. they are trimming back the investment bank, but they are also redeploying some 50 billion to 70 billion in assets into relationships and client-based services. they are looking to shed about 200 billion in assets. that is going to get their capital requirements to about 5%. before, their goal was to have a return on equity of 12%. in 2015 they came in just north of 3%. a lot of that is litigation costs. they were hit by 1.5 billion. we are heading into a press conference shortly. we want to find out where the job cuts are, how many, and what is the overall strategy in terms of the investment bank. francine: t

deutsche bank officials announced a long-range cost-cutting plan. company wants to save $4 billion a year. it also lance to sell his consumer unit bank. the bank must be ready for tougher reserve ratio. classic if the real danger the ecb does wind up harmonizing to the u.s. standards. even if those rules do not come if you want to compete with peers that is where the consensus has gone. betty: shares suffered its biggest drop in trade down over 4%. revealing a reshuffling of the bailout negotiating team. it still supports the work of this fireman minister. meanwhile, greek officials are scrambling to come of with $1.5 billion. the clinton family is backtracking after an accusation in its new book. it admits eight -- mistakes were made on tax reform. mistakenly combined with other donations. the statement was issued after an author said the foundation should be investigated. the author of the upcoming book clinton cash, said some may donations while hillary clinton was secretary of state. >> when you ever have an issue to flow of funds whether that is

alix: 10, from your expertise, do we end up seeing a guilty verdict for deutsche bank, will there be constituencies to soften the blow like we have seen with other eggs? -- other banks? tim: what i'm going to be looking for is the number but in addition, a lot of the brookfield characteristics going to the settlement. deutsche bank will take a charge somewhere and we think that is likely. that is not as unusual as it used to be. the question now is less of do they take the charge but which entity takes the charge? the report and the new york times indicated it looks like they'll be able to avoid taking a banking arm but they will still take a pretty substantial u.k. subsidiary, different from what we have seen the former companies are able to negotiate a less integral entity taking the conviction. this sounds like something fairly material. you will have collateral consequences. alix: what might the consequences be? why might that be significant? tim: i cannot speak to exactly what the consequences will be. if it was in the u.s., you saw other institutions that were in similar circums

we have seen the libor penalty with deutsche bank today, which is a significant amount, and that willcal tool to bash and get political points. i think you want to stay clear of banking. it will be volatile. it is a volatile sector. caroline: joe rundflle thank you very much. we wish you a good friday and good weekend. mark: right, about a minute away from the start of the session. futures indicating stocks will open higher. it is all about riga? i think that is what hans is saying. manus: does not seem to be featuring in terms of negotiations. and you heard what joe said, a relatively quiet day. the nasdaq at a 15 year record high. we had that discussion this morning, a big discussion in terms of high. mark: citigroup coined "grexit." it is now called "grimbo." caroline: too many. manus: we leave it to jon ferro to sort it out for you. that is next on "on the move." ♪ >> good morning. the plan for greece has failed. eu officials expect no deal. is the monster deal dead? comcast is said to be walking away from a deal with time warner after a merger that would create a new internet and

particularly in the bigger context of deutsche bank, with the strategy review going on and first-quartering next week. guy: they are trying to figure what to do with the bank. they are trying to have a little bit of strategic thinking at the moment. they are in the middle of a strategy review. is it good news that they have finally got a settlement on this one and can maybe put it behind them, rather than having it in front of them? >> exactly. that is the advantage of the timing if it does come today. if they can push this off to the side and get it out of the way and book the supervisory board we are expecting a supervisory board meeting tomorrow where they can review the strategic options for the company presented by management. if they can say, we have libor out of the way, let's focus on the future, here is our new plan -- it is definitely much better for management. also, looking at next week -- the first quarter results. they said last night along with a 1.5 billion litigation charges they are expecting in the first quarter, they are also expecting a near record level and the bank

employees at deutsche bank house voted to strike indefinitely as the bank consider selling the unit.ng in shane, what options are they considering and how seriously are they looking a getting rid of this unit? shane: good morning. we'll heard of management still has all three options on the table and they prefer one of the options that were either involves a complete our impartial as it banking and simply sell off and to take post and bundle it with other operations and sell them off in 2017. the third option has more support will heard under management is to take -- basically leave the bank the way it is and take a deeper cause and consumer and investment banking. there looks to be the least likely option. jonathan: in terms of the options, what are the arguments for and it is the exit from consumer banking? shane strowmatt: well, basically it is the division that has the worst return on equity and the highest cost versus income generated last year. compared to any of the other divisions of deutsche bank. this is really somewhere analysts are pointing is a you want to boost profitab

deutsche bank is poised to settle u.k. and u.s. investigations into benchmark interest rates. ing to someone familiar with the matter, it will run the bank about 2 billion euros. for more, let's get over to shane in frankfurt. how does that figure compare with georgia banks -- with deutsche bank's total legal provisions? shane: we know what they set aside last year. about 3.2 billion euros for total litigation. they say they are expecting costs about 1.5 billion. that is roughly half of what they set aside. what we don't know is what the 3.2 billion is for and what the 1.5 billion is for. we've heard that a libor settlement could come as early as today. most people are assuming the vast majority of the 1.5 billion they are expecting will be for libor. we can't really know that. so many other things are also open at deutsche bank. they have investigations into forex dealings, asset-backed securities alleged u.s. sanctions violations and so forth area it is still open. it is a decent legal cost in the first quarter. jonathan: busy because they are in the middle of a strategy revi

deutsche bank is set to face a 2 billion euro penalty in the u.s. we are life with the details. caroline: weak banks get a lifeline after bleeding deposits. the ecb doubles its emergency funds. i deal with european creditors remains elusive ahead of meetings. >> he passed by the firm and he was therefore 5, 6 years -- he was a legend. during the financial crisis this guy had faults. he used to get into big positions, saw the risks and reward and took on the trade. mark: a former colleague of the allegedly lash crashed rater, calling him a legend. we are live as he fights extradition to the united states. welcome to "countdown." caroline: coming up, youtube's 10th anniversary. we will take a look at how the video giant went from business to a global phenomenon. but there is one social network that will surpass youtube and videos in the u.s., and that is facebook. the breakdown facebook, as they talk all things tech. mark: more evidence this morning that the slowdown in china falls to its lowest level. hsbc's flash pmi came at 49.2 making a mark for contraction. for more detail, le

does this go back to ackerman, or do we focus on the two leaders of deutsche bank right now? t of the loop -- prof. hintz: no, no, no. it predates the two leaders because we can think of deutsche building its capital market business. essentially, you know, you play the hand you're dealt, and the two managers who are running a now have played their hand a global fixed income player classes in europe, smaller player in the united states, globally positions, they made the move of let's go into retail. so they expanded in retail under the idea that they can't use the deposit, the leverage is difficult. olivia: although now they are spinning off. tom: because of time here, i have got to go to this uproar over bank of america becoming visible. the idea of iss, who represents institutional shareholders saying the governance committee at bank of america moynahan's bankamerica, has not been all that good. mike mayo still pricey on the street at clsa has taken up this debate and says it is a most unusual board. how critical a board are the ceo's of american banks? prof. hintz: the answe

let's get the latest on deutsche bank.man lender was fined two point $5 billion for libor manipulation. what stole the headlines were the messages between traders. employees openly calling the system corrupt and "begging for lower rates." our bloomberg european finance editor has more on that story. eliza, what do we know about the traders? all i've heard is trader three. who is trader three? >> trader three was a propriety trader. what we are told is that he specialized in short-term derivatives. according to the doj, he worked with his own colleagues at the firm who were submitting rate submissions, and with counterparts at other firms to create rates that would have been favorable to his own accounts. this was part of a pattern of frequent trading instances which were to the benefit of the firm. jonathan: yesterday's element what was fascinating was the press release. you saw the quotes from the traders. the new york department of financial services embarrassed this bank. what is next for deutsche bank? elisa: it was cl

brian: deutsche bank. germany's largest lender has revealed details of its highly anticipated overhaul. laila: the embattled financial institution joins a growing list of global banks that are downsizing to survive. reporter: prices, what crisis? -- crisis? what crisis? even though georgia has been under -- though deutsche has been under pressure. >> up, we have four divisions that are working well and a solid business model. we have managed to keep our capital base at over 11% so we are looking strong as we embark on agenda 2020. reporter: agenda 2020 is what the bank is calling its restructuring plan. it involves selling its majority stake in a german high street bank. deutsche will also close to hundred seven branches and shrink investment banking operations -- will also close 207 branches and shrink investment banking operations. the ceos say they remain committed to the universal banking model. the restructuring won't come cheap. 3.7 billion euros. laila: deutsche bank's restructuring plans were not w

hire across globally and deutsche bank has 3.5 billion euros of cost reduction and cutbacks. they are the trends. there is emerging of u.s. pc. where are the banks growing? >> they will be shedding assets and getting leverage ratio all the way up. they will be increasing and spending $70 billion on relationship-building. they presume that they want to focus on client services. here is what they had to say when they announced the changes. we must remain client-centric. we need to become more geographically focused. we need to avoid trying to be all things to all people. >> the last comment gets to the core of what they are trying to do. they are going to have the ipo as the end of 2016. in terms of retail banking, they will go down and, as a company they are trimming it and we will focus and try to trill down on which countries and what sort of job losses there will be. the cost-cutting is going to mean some lost drop -- lost jobs. in terms of return on equity, to give you a sense of how far they need to travel, in the first quarter, they came in just north of 3%. john: they go

deutsche bank order to pay $2.5 billion on both sides of the atlantic. ranking employees also must be fired. regulators, traders that germany's's biggest bank. allegations are part of a wider investigation of libor. the biggest yet fine in the scandal of about one dozen companies. those are your top headlines this morning. another one of our top stories facing within $2 billion in charges to the corruption scandal that shut off its access to bond market sees jobs. reporting third-quarter results. for five months. much more on this here in a way, is this good news? >> it is good news because we got this out of the way. we finally have a price tag at least. betty: what is next for the company? julia: they now have a lot of other issues. the highest debt in their industry. a weak currency. they need to revise their investment plan. so many issues more to involve now. betty: what about the issue coming back to the bond market? are they going to do that anytime soon? julia: they do not seem to be considering the u.s. market. they will try to test market they h

mark: the other side of germany today -- employees of deutsche bank voted to strike indefinitely at the bank considers selling. let's bring in shane. good morning. what options is deutsche bank considering, then, as part of this strategy review? shane: good morning. we have heard that all three options are still on the table but management favors two. one would be to sell one of its bigger german banking units and the other went to take postbank and bundle it together with others and sell it off in an ipo. those are the two options being focused on. the third option, which has less support, is to take deeper cuts to consumer banking and its security division. it looks like one of the first two options will probably be executed. mark: what are the arguments for and against it from consumer banking? shane: consumer banking last year compared to all other divisions at deutsche bank actually had the worst return on equity and the highest cost compared to revenue. some analysts are looking at the consumer banking and saying -- if you want to boost profit, get rid of consumer banking. others

deutsche bank is set to pay $1.5 billion in fines. the bank is suspected of interest rate manipulation. regulators say traders raised the rate known as the libor. apple and samsung picked the same day to unveil new devices. the lines were not so long in london or beijing. it is the first new apple product in five years. shoppers in 20 countries are checking out the new samsung phones today. samsung hopes it will recapture the market share. a young player, 21-year-old challenging to make his mark at the masters. the leader is 21-year-old jordan spieth. he shot -8 in the opening round, one shot off the record. tiger woods is also there playing his first tournament in two months. he is an 40 first place -- 41st place. a $26 billion deal. joining me to discuss. we know that jeff him out -- jeffrey himimmelt has been wanting to do this for a while. >> he does not wanted to be a bank. this is just one of many steps he is trying to take to transform gen get the stock price back up. he found a buyer. he engaged blackstone on an exclusive basis

deutsche bank struggling to compete with the united states. eir regulation makes it easier to compete. is the european banking sector at a structural disadvantage now? david: in a way, yes. if we compare that return equity -- with the results of a european banks compared with the american. there is a substantial gap. the reason why we want to own some of the european is with markets up challenges also represent opportunities. if you have a name of a good bank which would be in the next four or five years which have a good strategy, like santander for instance. there could be opportunities there. of course, challenges remain because regulators are on a continuous move to make it even harder to increase leverage and make more money to banking. francine: thank you so much for that insight. dean of robert kennedy college in zurich. guy: running to the standard chartered numbers. efforts to de-risk and build capital. there is nothing there about relocating. but i wonder if that conversation is going on behind the scenes. francine: that is what we ar

you have bank of america deutsche bank, economists at all of these banks are trying to put together somethingll be helpful to investors. they need to come up with inflation numbers and government spending numbers. government spending hasn't then reported since 2013. mark: this is basically their best guest -- best guess because they do not have hard data to rely on. guest: one of them described it as being a private investigator you are just piecing together something to give investors an alternative. investors i talked to have data series from all the different economist and are conservative from there. mark: the international monetary fund seems to be ok with this data. why are they ok with it? guest: they censored argentina for misreporting inflation and economic data. but during the imf meetings, the deputy director said venezuela reports in a lag. if you imply it wasn't misreporting the data if you are an investor you don't have time to wait for a lag. mark: speaking of legs, let's look at the historical arc from when hugo chavez was president to now. how is there a difference? guest: fo

it says authorities around the world are pushing deutsche bank to pay a record penalty of what could around $1.5 billion. that would eclipse all prior settlements with banks accused of interest rate manipulation for this london rate or a global benchmark for interest rates. it's in talks to resolve this case as possibly as this month. that according to people briefed on the matter. and this would span regulators from u.s. federal regulators like the cftc also with new york state's regulators and regulators in london as well. the justice department also conditioned this deal to be finding at least one of the units at deutsche bank to plead guilty to fraud in what would be the most significant bank needed to have a criminal plea. according to "the new york times" deal book citing sources, deutsche bank may be close to a $1.5 billion settlement that could include a guilty plea in this case. it's a story we'll stay on top of in case of other developments. but right now, big headlines involving a banking giant. over to you guys. >> thank you very much. as we await earnings season to begin

guy: deutsche bank madey ditch its retail operations.rancine: also, we will be speaking to the cypriot finance minister about the situation in greece. ♪ francine: deutsche bank may be planning to ditch its retail operations. this is said to be part of a strategy revamp that may be announced as soon as this month. let's bring in our european finance team leader. thank you for joining us. what options is the bank considering? >> we know the bank started with five models. it has narrowed that down to two those being a partial exit of its consumer business and a slightly more radical shift which would see all of its consumer businesses combined and an exit from those. as part of both scenarios, there would still be a scale back in the investment bank, but that will depend on the size of the retail divestment, which is being pondered now. third scenario which was presented a few weeks ago, that we should see the perimeter of the bank unchanged while the bank scale back the cost of business. at the moment, that is the least favored scenario. g

power battle with ceo martin winterkorn who is expected to take over the chairmanship as well. >>> deutsche bank plans to significantly pare bank its investment banking business cutting $200 billion in business. it's part of a 3.7 billion euro restructuring program. coming up on cnbc we'll be speaking with anshu jain you won't want to miss it. >>> will it be a juicy quarter for apple? they report after the bell. we get the details coming up in two minutes. >>> and that question has got us talking. what is going to happen to that cash balance or is that not the top aspect for these results? will you be looking for iphone sales or guidance on apple watch sales or something new, apple tv and the rest of it the internet of things. get in touch with us. email us world wide at cnbc.com or via twitter and our personal handles are on the streen -- screen as well. before we go to the break, we're going to look at u.s. futures. we're looking at a positive open. s&p up 2.5 and dow jones up and nasdaq up 8. we'll be right back in a couple minutes. >>> it's 5:30 a.m. in new york. 10:30 in london. good mornin

francine: what is next for deutsche bank? elisa: this was a considerable legal challenge that it faced. it was the biggest penalty the firm has ever paid. but there's not much time for them to rest. we expect a big decision as soon as today on the bank's biggest overhaul in the current management. the bank is considering a radical shift to its model, which may see it exit consumer banking entirely. [indiscernible] francine: thank you so much. elisa martinuzzi from milan, the team leader for all coverage to do with european finance. guy: what else is on our radar? comcast is said to drop its proposed deal with time warner. the proposed merger which took over a year to get approval faces opposition from the u.s. justice department. comcast could announce the news as early as today. francine: not a grexit but a tapering is the greatest risk faced by the economy this year. that is according to martin, who spoke to me earlier. >> the thing that worries me most is what happens when tapering ends. i think growth is going to be lower

deutsche bank faces a $1.5 billion fine for alleged libor rigging. indices are all in the green.rgely a sign of fears over greece are easing after the country repaid it 450 million euro loan through the international monetary fund. markets are also moving up things to signs of a weak euro after the european central bank is continuing to pump around $60 billion a month into the economy, molly so markets are responding to the economic data out of the eurozone. molly: thank you for that business update, there. it is time now for our press review. i'm joined in the studio by florence milliman of -- by florence milliman of. we start with a story out of france anti-terror prosecutors are -- by florence villa eminot. we start with a story out of france, anti-terror prosecutors. florence: hackers took over its social media accounts and blacked out at 11 channels. the friends russ french press is still reeling from the "charlie hebdo" attacks in february for said he see the front page of "aujou rd'hui france," talking about cyber jihadist himm, the invisible war. molly: it is a symbolic t

we have seen deutsche bank trailing down about 5% after announcing an overhaul of its banking operation on the back of very heavy losses in shanghai -- very heavy losses. in shanghai, we saw a seven year high. the meeting of the u.s. federal reserve. a downgrade for tokyo. the ratings agency has cut japan's credit rating from one much -- for one notch, from a-plus to a. it is uncertain whether tokyo will be able to address its debt burden by raising enough revenue. scotland has $5.5 billion worth of loans in america. rbs is trying to reshape itself as a corporate and retail bank focused on its domestic market. apple will reveal its first-quarter results later this monday after record-breaking earnings in january. it has warned that the surge in the value of the u.s. dollar could cut as much as $2 billion from its quarterly revenue. analysts expect initial sales of the apple watch to be disappointing. >> new marketing retailer -- new marketing strategy for retailer abercrombie & fitch? >> abercrombie has officially changed its dress code and look policy for its employees. it says it will

that's where you're seeing the likes of deutsche bank deleveraging. another capital increase. the fourth one over the past five years so there's still a lot of pressure on banks to improve their capital ratios. >> on that point, phillipe, because it feels like over the last five years that banks have been trying to sure up their balance sheets and make sure they have enough cash. when do we reach that level when it happens? when can we stop worrying about that? >> it's been a moving target for sure. look at the u.k. and switzerland now well ahead of the game compared to the euro zone. you've seen as well in the u.s. that some of the largest banks despite being very healthy like jp morgan was forced by the fed basically to increase it's capital target from 10% to 12%. so i think a lot of regulators are now more powerful. they're looking to self-ensure and the best way is to ask for more capital and see the shares have been going up and they feel this is a bad time to apply extra pressure. so there's no magic number where this is going to end i'm afraid. it's going to be with us

and that's very relevant on social stability. >> in the meantime, banks were active in europe, deutsche bankcutting back. people are worried they're not going to meet their targets. rsbc continues to follow through on the upside that it might leave the u.k. and not pay the bank tax there. and, volkswagen added in broad terms about $5 billion to its value today after the chairman was ousted over the weekend. this is the controlled by porsche, the new management team guys might be less empire building, and focus more on shareholder value. on that note, let me send it back to you in san francisco. >> all right. simon, thank you so much. >>> when we come back this morning, the nasdaq's only a few points away from its first record intraday high in over a decade. what's it like for investors in this kind of environment? we'll talk to scott noland, former engineer at spacex and in just a moment, "squawk alley" continues after a break. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidate

deutsche bank cutting rating on these stocks to a hold from a prior buy. and they point out to weaker things like weaker than expected international sales. also other factors, as well. so those airline stocks lower on the day, thanks to that, and, of course, rising fuel prices as well. over to you. >> thanks. okay, so pete. >> yeah. >> you've got this price line upgrade yesterday by scott devit, in part expecting tail winds from an improving economy. you have the downgrade today on these three names in part because deutsche bank sees international sales a source of earnings disappointment. >> yeah. and they're concerned about the strong dollar. it makes sense why the downgrade, quite honestly. i understand when you look through the list of reasons, it makes a lot of sense. but he also mentions, hey, these guys are set up for the record profits. potentially. and record cash flow. so i think that combination on these pullbacks, i absolutely think it's a buying opportunity. he was right, he's adjusted some numbers. i think on this pullback, though, we know th

deutsche bank looking at a libor settlement. gm with a nuanced quarter.th america. mr. zuckerberg, he is investing. is it an investment or an expense? we will talk about that. this is important. we look at america's projection abroad. it starts with legacy. thomas jefferson, james madison. secretaries of state, president obama they have defined a new american order. is this secretary of state now like it was 10 years or 20 years ago. >> i think president obama has made a big priority to increase his profile. he picked two people known for having run for president. secretary jake cake -- secretary clinton's was treated like a rock star. that was a big part of it. tom: what of other secretaries of state will do with the future? >> one thing clinton prioritized was commercial diplomacy, going out there. that has stayed on during secretary kerry. the question is trying to promote u.s. companies overseas. olivia: what is her legacy with the voters? >> business will not forget it. whether or not she will be elected, she is the democratic nominee. the biggest ne

the real interesting one is deutsche bank down again today in the wake of the restructuring.g that co-ceos were looking at turning deutsche bank into the goldman sachs of europe. investment banking and kmernl lending and ditching the retail operations, but they found on their models if they did that they kept failing the ecb stress test. it wasn't stable enough. banks down, europe down, guys, back to you. >> thank you very much simon hobbs. get you an update on these reports regarding iran and a u.s. cargo ship. dom chu has more back at hq. >> we're going to try to clarify the details here. when we do know now is there has been a cargo ship seized in iranian territorial waters, but it is not a u.s. ship. what we know per a department of defense spokesperson is that iran has seized a ship, but it's the "mersk tigress" that's a danish shipping company and the "tigress" was flying under the marshall islands flag. per the same defense department spokesperson cited by "reuters," there are no u.s. citizens aboard this ship. however, the pentagon is also saying there are u.s. milita

deutsche bank rocking along. credit suisse wasn't exactly comparable. others are snapping on the currency space. equities not meeting their peers. an investment -- investment banking, this is the interesting part. taxes up by 7%. jpmorgan was up 23%. if you are going to be an investment bank, you have to be the best platform, and you have to have some about it. you can't be everything to everybody. the world of investment banking has to be changed. if you are going to be an investment banker, you can't be everything to everybody but you can be excellent at certain things. mark: i know what he was thinking. thank you very much. samsung posted a 40% decline, but samsung remains optimistic predicting a recovery. to asia technology expert has more. i know it is late were you are. why the optimism? >> the optimism is driven largely by the high-end flagship . so far so good as far as sales are concerned. some sun are not releasing numbers, but the analysts expect them to sell 50 million of those this year. that is going to lead the recovery, because it not onl

deutsche bank investors not big fans of the five-year plan.heir plan involves shrinking the equity business. >> you will see us stronger inequities than we are today. you'll probably see us as a smaller sticks income house. cory: they say they will be able to maintain capital ratios despite raising costs. greek shuffle it bailout team reducing the duties of the finance minister. he will still lead talks with the imf creditors, day-to-day deals will be handled separately. not giving up plans for a takeover of a fellow drugmaker. they rejected their offer today, calling it to load. they cited concerns about whether the companies were actually a good fit. france's largest provider i.t. services is buying new jersey-based iagetgate. they have clients including ge and the world bank of canada. right now to believe, it is one of the most anticipated earnings reports of the quarter. apple released its second quarter report after the bell looking for a lot of information. iphone sales, and news about whether china took over sales of the u.s.. we might

erik: coming up, investors are not buying deutsche bank's strategic overhaul.ng to break down why, coming up next. ♪ alix: we do have some breaking developments in baltimore. scarlet, what are we looking at? scarlet: some very to medic year of protesters in baltimore. this is in downtown baltimore, not far from where mourners bid farewell to freddy gray the 29-year-old who died from a spinal cord injury -- injury while he was in police custody and lead to all kinds of anger over racial relations in the city. you can see the police -- there are rocks and bottles being thrown between the two parties and we saw earlier that one policeman was taken away. you can see protesters running from the site. they have been scuffling and taunting police for about 10 minutes to an hour now. -- 90 minutes excuse me. we just tuned in as the protests turned a little violent, but this has been going on all day because of the funeral taking place and the debate it is generating. you can see police being confronted by protesters -- the protesters have been throwing models and rocks

mark: deutsche bank is a major overhaul. reduce annual costs by 3.8 billion dollars. it will strengthen the security business, close up to 200 branches, and reduce some overseas operations fair the bank ceo told bloomberg's hans nichols what the bank would eventually look like. >> will see stronger inequities than today. you will see a considerably stronger corporate finance than today. probably a smaller fixed income house. less transaction and more advisory. mark: investors are not impressed. shares falling. 45 billion -- $45 billion offer. it says the offer is too low and does not deal of problems of combining the companies with different cultures. it is committed to his $33 billion offer for the irish maker of store drugs. they have already rejected that. loretta lynch has been sworn in as the first afghan american female attorney general. joe biden did the honors at the justice department. for the last five years, which has run the u.s. attorney's office in brooklyn. harvey miller a partner in a law firm that recommends lehman brothers is dead. he died today in h

and british regulatory does --regulators to play -- to order deutsche bank to pay 2.5 billion. misconduct included at least 29 employees based primarily in london. about a dozen other firms have artie paid more than $6 billion to's total similar claims. claims front employment benefits in the u.s. state below 200,000 for the seventh week in a row. that is a consistently low level of borrowing. we will see in a couple of weeks if that made for a turnaround after last month report which was the weakest in more than a year. it may be the sign of progress in the u.s. housing industry is going down. sales. the average sales rate 481,000 homes in february. sales of new homes hit the new york type. first-quarter profit of general motors almost tripled the strong sales of light trucks in the u.s. undercut by problems in russia and brazil. those estimates missed estimates -- those analysts missed estimates. gm down 3.6% at 35.82. those are the top stories we're following. imagine bypassing your doctor to order your own broadcast. cynthia kunz will tell us about this now. a look at women

deutsche bank investors are not big fans of the bank's strategic plan.res fell today after they reduced targets. here is the co-ceo -- >> you will see a us build on the momentum we have had over the last two years. you will see us considerably stronger in global finance, but you will probably see us as a smaller fixed income house. less transactional and more advisory. cory: he says the bank will be able to maintain profit despite rising legal costs, including a $2.5 billion fine for attending to rate interest rates. the battle for a cheaper, smaller cable option is heating up. espn has sued verizon over its custom tv service. verizon says its use of the channel violates a contract. custom tv gives users a base package of channels based on certain categories. nbc and fox have expressed opposition, but have not sued. facebook is adding video calling to its messaging app. they compete with facetime google hangouts, and more. facebook accounts for 10% of all voice over internet calls may globally already. now to the lede. apple reports and other huge quarte

deutsche bank could decide as soon as tomorrow whether to sell all or parts of its consumer banking business is under pressure to be more profitable. it was fined $2.5 billion. regulators in the u.s. and u.k. accusing them of manipulating interest rates. one pleaded guilty to wire fraud charges. starbucks says revenues are up 18%, as well as an 11% rise in the americas. expanded menu brings in more customers. shares are rising in after-hours trading. kleiner perkins is asking ellen pao to pay up. seeking $900,000 from pao to cover their legal cost in fighting her lawsuit. a jury rejected her claims. now to the lead, the cable deal of the decade. comcast stopping the deal in its tracks deciding not to go through with this purchase of time warner cable. comcast backing away from the deal after regulators at the doj and the fcc suggested they would oppose the combination of the number one and number two cable companies. for comcast, a reminder that money can't buy everything. comcast is spent $17 million on the lobbying last year, more than any other company. 128 lobbyists try to seal the deal.

. >> other stories making headlines, deutsche bank prepared to unveil cost-cutting plans that could see thousands of job losses. the strategy to be unveiled as soon as today, including branch closures and withdrawing from investment inking businesses. the overall is designed to win back confidence from co-ceos. family power struggles seeming chairman ending their reign of unquestioned authority. the 78 euros stepped down after he publicly challenged martin winterkorn. credited for pulling them back from the brink in the 1990's transforming it into one of the world's top three automakers. a tycoon defying calls to quit his chairmanship the board wanted him to go following an internal inquiry into loans and deposits made over three years with transactions including loans of $204 million. >> later on the program, signs of optimism to the singapore banks leaving rewards going up next on the emerging markets getting the country fixed from jpmorgan when "asia edge" returns. ♪ >> checking some of the stories making headlines around the world. >> international condemnation is growing over the i

finally, deutsche bank may look to buy hsbc mexico operations.ing to an analysis from a group. there was an earnings call that mexico was one of four potential market that things may exit. these are the stories making headlines in latin america. mark: jose with our latin america report for this tuesday. when we continue, few were u.s. oil rigs may curb oil output. alix steel with the numbers when we return. ♪ mark: welcome back. rand paul has made it official he is running for president. the republican senator from kentucky made his normal announcement earlier today in louisville. he is a favorite of libertarian and the tea party. that's we to take our country back from the hustle interest. they use washington as their personal piggy back. he is the son of former texas congressman randy all who ran -- ron paul who ran in searching campaigns in 2008 in 2012. in chicago voters are deciding who will run the city for the next four years. rahm emanuel horst into a runoff . whoever wins will have a tough job. chicago's finances are a mess and the city

i do think that the banks, you sought in the paper today that deutsche bank is paying a $2.5 million olivia: we have a few more headlines coming out of mario draghi, who is speaking about greece. do you want to dip in? he's saying that progress has been achieved on greece in the last few days. perhaps playing a little bit of good cop, varoufakis has been called a gambler and the tone has been critical. mario draghi is saying ela assistance will continue as long as greek banks are solvent but they may examine haircuts. tom: i've will go with haircuts. i love your haircut. francine, this is the same thing as the previous 19 meetings for americans. for francine lacqua, what is different? francine: you see the finance ministers being a little bit mad. this is the diplomatic way of putting it. to hans' point, for the first time we understand that eu ministers are calling greece. they are saying this is not fair. you are not negotiating so we cannot give you anything. is nothing different apart from the fact that nothing is different. you've had 22 or 23 meetings and we still do not have a