eamon, thank you so much. eamon javers in washington. >>> now to that deal. pfizer walked away right from its historic deal to buy dublin-based allergan. that deal would have moved the biggest u.s. drug company to ireland in order to lower taxes and would have been the largest so-called inversion deal. in an interview allergan's ceo said this deal was specifically targeted. >> these roles, this three-year lookback was designed, i think, very specifically to target this deal. i don't believe based on initial review it impacts any other deal in virtually any other circumstance. >> in a statement pfizer says the decision was driven by the actions announced by the u.s. department of treasury which the companies concluded qualified as an adverse tax law change. under the merger agreement. shares both of pfizer and allergan climbed in today's trading session. >>> the head of the largest business lobbying group, the u.s. chamber of commerce, said suing the government over the tax changes would take a long time, bullet he dt he did expre concerns about all the new ru

>> reporter: good morning, eamon. these visuals aren't anything new. we've seen protests outside trump rallies before. that's not new. what is new is we're in california, this is the beginning of his time campaigning in the state ahead of the june 7th primary. clearly what we've been seeing over the course of the past few days is much more escalated protests, much more numbers, even more violence. the pre curser to this level of violence is what we saw in chicago a few months earlier. what was so interesting about yesterday is it actually started off quite peaceful. when we first arrived, we saw people silently protesting. some people were even burning incense. what we saw was people coming to the front of the hotel. people had to barricade the front of the hotel. the eventually goal was to pre vent trump from speaking here. that's what we saw in chicago. here in california they didn't actually succeed in that. what they did succeed in was preventing trump from entering in a very conventional way. here is what he had to say about that when he got insid

. >>> a senior new york fed official spoke with cnbc's steve liesman and eamon javers about the cyberfears. hello, eamon. >> yes, a new york fed official told steve and they the fed is taking it very seriously and that the cyber security of banks around the world that the fed transacts with is critical to the stability of the global financial system. remember, back in february, the crooks got into computer systems in bang ladesh, and authorized transfers of nearly $1 billion out of the accounts at the fed, and in new york, they blocked some of the transfers, but released $81 million to philippines and sri lanka and some of it was sent on to casinos in the philippines, and converted to chips there on the gaming table, and we don't have any idea who stole all of that money. despite the brazen heist, the fed official told us that the fed has no control of the cyber security over to the banks that it does business with, which means potentially an enormous amount of money at risk. there are nearly $3 trillion in assets and rough ly $80 billion is wired into and out of the accounts everyday

today eamon javers talking about to the money who cofounded it all, jergen mosac. >> welcome to panama city, a neighborhood with a lot of law fishes, small businesses and bakes. behind me are the offices of mosav fonseca, the law firm at the epicenter of the so-called panama papers scandal. earlier i had an opportunity to sit down with jergen mosac, one of the founders of the firm, and i asked about the scandal, the impact on business, and whether or not he knew open important political figures had business dealings here. did you know vladimir putin's aides and associates were using the services of fonseca? >> no. when we find out names like putin or like other heads of state, it is always through the media. it means that -- >> did you know that eight members of the chinese politburo were using your services? >> no of course not. >> did you know david cameron's family had used your services? >> no. >> why not? your name is on the front door, isn't that something you would want to know when you're a business owner? >> whenever we find out that there is somebody behind or that through th

for "nightly business report" i'm eamon jabbers in washington. >>> avoiding security lines. from the airports to the ballpark. >>> i'm phil lebeau in denver. take me out to the ball game, just get me into the park quicker. that's fine as long as you're willing to use your fingerprint. that story next on "nightly business report." >>> 85 million more vehicles here in the u.s. could face a takata air bag recall. the nation's highway safety watch dog says that number is in addition to the nearly 29 million inflaters that are already slated for replacement. those air bag inflaters of course can explode with too much force and send shrapnel into drivers and passengers. this is already the largest automotive recall in our nation's history. >>> american airlines is joining a growing chorus of critics including a lot of passengers who say security lines at airports are too long. in a statement american airlines said, the lines at tsa checkpoints nationwide have become unacceptable. the result? our customers are waiting in tsa lines greater than one hour. the airline went even furthe

back to you. >> eamon, so much discussion today about the coverage of this story.e lack of it. do you think the world is guilty in some part of snowden fatigue, leak fatigue? >> i think that's part of it, carl. part of it is also just the way in which this story got out there. remember, it was a german newspaper that received the initial leak. they worked with the international consortium of investigative journalists. that group chose select media participants to pair with on this story. so they gave those folks a several-month heads up. and they were running at these documents for a long time. checking them, vetting them, making sure they were real before they all popped their stories simultaneously. now a lot of the other media organizations that weren't part of it are going to struggle to catch up here. i bet you're going to see a whole bunch more stories over the coming days, carl. >> and especially, eamon, just given the scale of this leak, 11.5 million documents, it will take a lot to get through them. thank you in washington. >>> so what does the panama pape

let's get right to eamon javers with the details. >> reporter: hi, melissa. treasury is implementing imposed regulations on tax inversions, an issue we've heard a lot about, criticism from both hillary clinton and donald trump. now treasury saying it's taking new regulatory steps. here's what treasury says is actually happening. they will try to limit inversions by disregarding foreign parent stock attributable to recent inversions or acquisitions of companies and they will try to address earnings stripping by targeting transactions that generate large interest deductions allowing the irs on audit to have debt instruments and debt equity and requiring certain implementations of debt instrumentation of what is debt and not deal in one of the tax inversion deals. treasury has done this two times before and on a conference call with reporters that happened a few minutes ago they declined to say whether the two previous actions the treasury has taken actually had any effect in limiting the tax inversion transactions. mel sla? >> eamon, from your reporting do thes

eamon javers sent this report. >> reporter: microsoft filed a lawsuit on thursday. the company is challenging the government's ability to examine data held by microsoft while blocking the company from telling customers that the government has accessed that information. we believe that with rare exceptions consumers and businesses have a right to know when the government accesses their e-mails or records, wrote microsoft's president and chief legal officer brad smith in a blog post. he wrote, yet it's becoming routine for the u.s. government to issue orders to keep these kinds of demands secret. microsoft said it received 5,624 federal demands for customer data over the past 18 months and 2,576 of those came with gag orders, that blocked the company from telling the customers in question. the department of justice had no immediate reaction to the suit. a u.s. government source said the feds only learned of the legal action through media inquiries today. the filing coming in the wake of the dramatic standoff between apple and the fbi over encryption. for cnbc business

let's get to eamon javers in washington. >> that's right, the president just a few moments ago had very tough words for companies that engage in the tax inversion process. here's what he he had to say. >> i've been pushing for years to eliminate some of the injustices in our tax system. so i am very pleased that the treasury department has taken new action to prevent more cooperati corporations from taking advantage of one of the most insidious tax loopholes out there and inflame the country just to get out of paying their taxes. >> the president linked this whole issue of tax inversions to the "panama papers" case which broke over the weekend in which leaked documents reveal that world leaders around the world had accounts -- or had law firm in panama that was setting up structures where they could hide money around the world. so that is an interesting point from the president. linking that case to what we're seeing here with tax inversions in the united states. the president saying this is just an indication of a system globally in which people who are rich and powerful have lawyer an

eamon?s, we have news that jack lieu has made a decision on the fate of the $10 and there was a kerfuffle of whether to remove president hamilton from the front, and they have decided that he is going to be staying on the $10 bill, and as a result of the publicity of the broadway musical tipped the balance of the pro hamilton camp, and on the reverse of the bill, they say they are leaders of the effort to get women the vote in the united states on the $10, and as for the $20, president andrew jackson is now on the front of that bill, and he is going to be replaced according to media reports by harriat t tubman, the abolitionist civil rights leader here in the united states, and also change s s to $5 to depict the civil rights leader as well, and so a whole lot of changes to the u.s. currency here, and this is a lot more political than anybody thought it would be, and the historical figures have people in their camp a all to dday in e united states battling it out, and that is where it is goi

eamon? >> yeah, so interesting here to see the president linking these two issues, the panama papers revelations on sunday that continued into yesterday that have now led to a political crisis in iceland and political damage for countries and world leaders around the world. now the president linking that with this tax inversion issue, sort of seizing the political zeitgeist around the world. a half hour ago we saw a new announcement from the department of justice saying they will hire new prosecutors to go after foreign corrupt practices act cases. the department of justice saying in a conference call with reporters that it's hiring ten new prosecutors, a 50% increase to focus on those kinds of cases. they also said the fbi has formed three new what they call fully dedicated squads focusing on foreign corrupt practices act and kleptography. clearly an effort throughout the government to focus on moving cash offshore from the united states and attacking some of the so-called politically expos

eamon javers has been looking into this. >> we had to go back to 1990 to check the records here. in that span of time, we couldn't find a single other fed governor who made a contribution to a presidential candidate while sitting as a fed governor. a lot of them gave money before they joined the fed and after they left, but the tradition has been that while they're a fed governor they don't give to presidential candidates. we did find a couple who gave to lower-level political canceled dates or to state political parties, that sort of thing. this one is raising eyebrows in washington. a lot of people interpreting it as an effort by brainard to curry favor with the hillary clinton camp and maybe angling for a job in the clinton administration if that happens come next year. >> we know whether see has been a long-time clinton supporter, number one? number two, can you see circumstances under which this becomes a major political controversy that could potentially lead to her resignation? >> i don't think it becomes a major controversy at this point. it's well within her rights as a

. >> but eamon and kelly, they're monitoring which is a fuzzy term.nk it's a little bit interesting, i'm curioious on yr thought on this. this is a big thing of donald trump, that the obama administration hasn't stood up to china. he wrote a wall street editorial about this. beating the drum on this. is this something he can brag about or not really? >> i think this is something you might hear from donald trump out on the campaign trail. you're exactly right to put this in the political context because that's what this is ultimately. it's a negotiation between countries. it's subject to political forces here inside the united states. it is absolutely an issue out on the campaign trail. you will hear candidates talk about it. it's always easier for candidates to talk about labelling other countries as currency manipulators than for the people running the government to do that because it comes with real world consequences and there's the potential of starting off a trade war which you don't want to do. those people in power are less likely to do it than

. >>> let's get to eamon. eamon? >> they a's right, carl.ago we got the news that the u.s. department of justice is going to sue to block the deal. within minutes of that announcement we're getting a new press release from halliburton and baker hughes that the companies plan to vigorously contest the justice department's plan to block their impending merger. here's the reason. they believe the department of justice has reached the wrong conclusion in the assessment of the actionnd it's counterproductive especially in the context of the challenges that the u.s. and global industries are clearly experiencing. clearly, guys, one of the arguments is going to be all the roller coaster ride we've seen in the rise in oil will have an impact on whether this is an appropriate merger. let me read what the department of justice says why this is a bad deal. it would combine two of the three largest oil companies in the united states eliminating important head-to-head competition in markets for 23 products or services used for on and offshore oil explora

eamon had a staggering statistics that one out of every two phones is -- where is the line?k there's a balancing act. and we'll have more discussions. i understand why apple and innovators want to make sure they protect people's privacy and don't have back-door problems. at the same time i understand why the government has concerns why they're making sure they can protect people. it's great to have a dialogue. last week a committee was formed to look at this. hopefully they can find a balance. >>> if you're investing in a private company and the fbi or other laws infers officials wanted information that the company had to unlock in some way, how would i advice -- >> when we were aol, we had issues like that all the time and we were kipt tiff when there was a legitimate reason and court order, so it's a situation by situation. the issue around more dilock with the innovator and policy makers being a big theme. it's not just about the software, but how it's integrated, and that the create some thorny issues. >> tacking about child pornography, isn't terrorism obvious? >> it is

eamon javers has the story. >> this is massive just breaking around the world.t's already being compared to the edward snowden case and the 2010 wikileaks case. they're calling it the panama papers incident. more than 11 million documents have been leaked to a german newspaper that then cooperated with an international consortium of investigative data. it creates offshore companies for clients around the world. the law firm also operates in different jurisdictions around the world. reports show that 12 current or former world leaders maintained offshore shell companies in that data that was released. vladimir putin's name does not appear in the data but the data does detail holdings of his close friends and also 12 other world leaders around the world. here's a statement from the law firm reacting to the news that broke yesterday saying we have not once in nearly 40 years of operation be charged with criminal wrongdoing. we're proud of the work that we do, notwithstanding recent and willful attempts by some to mischaracterize it. guys there's an awful lot to che

eamon javers has more. >> look at wisconsin voters casting ballots in wisconsin.ow what these voters are doing today, but we think we have a clue about what might happen. so much at stake here in terms of the insurgencies in both campaigns. we have democrats looking at hillary clinton whether or not show will survive this charge from bernie sanders. on the republican side, donald trump seeking to hold his lead. here's where the polls stand now going into today's voting. donald trump not leading in wisconsin. we have ted cruz at 39%. donald trump at 35%. john kasich down at 20%. on the democratic side, 48% sanders, 45% hillary clinton. the clinton surrogates are out there today suggesting that she doesn't necessarily need to win wisconsin because she's got a pile of delegates already. take a look at the delegate count. on the republican side, donald trump 750. ted cruz back there at 481. john kasich at 143. the magic number here, 1,237. on the democratic side, clinton, 1,692 delegates. sanders just 1,012. needed to win, 2,383. you could ask where is wisconsin's pau

eamon javers, thank you very much.hat will shine a light on offshore activity overall. >> i remember when ubs got -- remember the swiss 5:kouaccount people were using to avoid taxes? this is -- i think this will show that there are so many rich people around the world. put a backlash against the rich. again, the rich are just under fire everywhere. and one of them is running for president. >> i'm not getting out my violin. >> no. no. no. >> tiny. >> i think it's interesting that we are -- that cuba, which was always against the rich, right? there's no statement -- there's no one against the rich anymore. in the countries that used to be against the rich. then there marx, lenin, they're struggling right now. wherever they are, they're confused. remember when they said -- >> the world turns upside down. >> when we get back, the ge downgrade, also some calls on apple. later this morning, a conversation with steven chazen, as his industry deals with challenges posed in the slump in oil prices. another look at the premarket

eamon has more. >> microsoft filed that case in washington state earlier today.y had to say about it in a blog post this afternoon. they said we believe with rare exceptions, consumers and businesses have a right to know when the government accesses their e-mails or records. we believe that with rare exception they have a right to know -- i'm sorry, let me recap that. it's becoming routine for the u.s. government to issue orders that requi e-mail providers to keep these type of legal demands secret. what's going on here, kelly, is the government is asking microsoft and other companies for information about consumers, but saying the companies can't tell their customers. in this case, microsoft wants to be able to tell its customers about those demands. we talked to law enforcement about this, though, and they say they need the secrecy here because they need to be able to avoid tipping off the bad guys. >> thank you, eamon. >> now it's actually in the courts as opposed to the pr war. >> them fighting it. >> yeah. and microsoft can't be completely overshadowed by ap

eamon javers has the latest. >> the president was wheels up for saudi arabia from andrews air force baseouple minutes ago but before he left he poured a little cold water on the september 11th bill that's moving up on capitol hill. that bill would make it easier for american victims of the september 11th attacks to move forward with lawsuits against the government of saudi arabia in u.s. courts and in an interview with cbs this morning the president said he doesn't think that's a very good idea. here is what he said. >> this is a matter of how generally the united states approaches our interactions with other countries. if we open up the possibility that individuals in the united states can routinely start suing other governments, then we are also opening up the united states to being continually sued by individuals in other countries. >> speaker of the house paul ryan also expressing doubts about the legislation earlier today paul ryan not as definitively negative as the president, but expressing some of those doubts. here is what he had to say. >> i think we need to look at it. i think

our eamon javers is in d.c.h the latest on the delegate math, morning. >> good morning, sarah, a pair of absolutely monster wins on the democratic and republican side in new york state primary voting last night. look at these numbers donald trump with a huge margin of victory 61% over john kasich at 25%. and ted cruz back there at just 15%. that's for the republicans. on the democratic side hillary clinton also with a commanding win. hillary clinton 58% to bernie sanders 42%. look at this exit poll result. this is in wall street's home state of new york state. and wall street not polling very well. if you asked voters yesterday whether wall street helps the u.s. economy or hurts it, hurts the u.s. economy, 64% of democrats say wall street is hurting the u.s. economy. republicans 51% helps the u.s. economy just 29% of democrats say that and only 46% of republicans say that wall street helps the u.s. economy. so wall street under water in both parties here. maybe not that much of a surprise given that we're just a

. >> eamon javers sat down with the man at the heart of the panama papers scandal.ou'll see some of that interview after the break. >>> we're minutes from the latest rockets launch by elon musk's spacex. got to have that music, of course. we'll bring you that live later on "the closing bell." you'll see the launch right here. is car? came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else live the life you're saving for. find out if you're dealing with a registered investment professional at investor.gov. it's a great first step toward protecting your money. before you invest, investor.gov. igoing to clean betteran electthan a manual. was he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates t

. >>> fairfax fire chief lashed out at people who posted eamon must vial and vicious comments about people, fairfax underground. and on any, anomaly right now, out of control. people have no common sense, and they have no sense of responsibility. when you have anonymous posts, and people can say anything, and it is not factual, it is not true, it is wrong. absolutely wrong. and it is terrible. >> chief because says he doesn't know what was in the note, left by nicole mitten door of, before she took her own life in sean endo a national park, says he has no idea at this point if the people who wrote the vial notes about her sex life are firefighters connect in the some way to the fire service. >> that's why i'm appealing to the person that hoses this site, take down the leud comment, and certainly consider shutting the site down. >> chief because says he was unaware of the cyber bullying on the site before her dea, will not be tolerated in his department. and he promises to get to the bottom of it. >> now that we have been able to respect and honor nicole and her family, i have all of my int

if you look back at eamon's famous tweets nearly every single one sent tesla stock higher. when musk said it was time to unveil the "d" and something else he added more than $2 billion in market company to the stock within the next five days and we should point out back in 2013 musk made the comment that he thought it's la was overvalued. dan? >> i've been wrong on this one for a week and kind of threw in the towel today and elon musk owns 22% of the shares and he buys on every deal they have basically ever done and will probably never sell stock and then you have 33% short interest so you have a really difficult scenario if you're trying to be short here. i'm down, you know, at some point very soon it gets back to the prior highs and the car is not going to be delivered until 218 in mass shipments so to me you're really buying this thing on a hope and a prayer. >> if you've been a short in tesla stock you've just been squeezed like you're squeezed in a vice and at the same time barclays today is saying perhaps with the popularity of all the three and all these orders comin

close friends to vladimir putin and yesterday eamon javers spoke with the law firm, and he was askednew of the world leaders using his law firm for this activity. take a listen to what he said. >> did you know that vladimir putin's aides and associates were using the information? >> no. when we find out names like putin or like other heads of state, it is always through the media. it means that -- >> did you know that eight members of the chinese bureau were using your services? >> no, of course not. did you know that david r cameron's family were using your services? >> you continedon't want to kno owns that company? >> nowadays with the regulations, we have to know who is behind the company. so because our -- >> you just told me you didn't know all those names. >> yes. that is -- that is correct. >> first of all, who do you believe? do you believe the -- the ceo of this law firm? >> well, if you're going to say -- i did know that 12 heads of states laundry money through my firm, of course not. of course he would say -- >> but the implication is maybe they're not doing something ill

eamon javers joins us with more on what is being called the panama papers. robert? >> that's right.t is being called the panama papers, also being compared to the edward snowden leaks and the wikileaks situation back in 2010, a dramatic exposure of global information. here's what is a

. >> and our thanks to eamon for bringing us the inversion story. winning the race to stream thursday night nfl games. will that turn around the struggling stock or is this a hail mary attempt at a comeback? >> kinds of a buzzer beater. sorry. >> too soon. >> plus we'll take a bite out of the bacon cheeseburger index we're familiar with, the off the grid indicators out there that could give the fed more coverage to raise interest rates more slowly. you're watching cnbc, first in business worldwide. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. man 1:man 2: i am. woman: ex-military? man 2: four tours. woman: you worked with computers? man 2: that's classified, ma'am. man 1: but you're job was network security? man 2: that's classified,

eamon javers, what have you learned? >> reporter: hi, brian.e're sitting here inside the law firm mossack fonseca. this is probably one of the most scrutinized law firms anywhere in the world now, given the breaking news around the world of the panama paper scandal that broke on sunday, last week. i had a chance recently to sit down with jurgen mossack, the co-founder of this law firm. i asked him if he says he's done nothing wrong, which he does say, and says this firm has done nothing wrong, i ask him if that's the case, why did you think all the clients from all around the world are coming here to panama to do business? here's what he said. >> there is another misconception here. they were not coming to panama. they were coming to jurisdictions all over the world. in fact, you have many from were coming to places like delaware and the united states. who also incorporate companies in very same fashion as we incorporate them here. but panama is just our base. we incorporate companies in many jurisdictions all over the world. in fact, the minor

eamon javers joins us with more on what is being called the panama papers. robert? >> that's right. it is being called the panama papers, also being compared to the edward snowden leaks and the wikileaks situation back in 2010, a dramatic exposure of global information. here's what is at issue here. a panama law firm called mossack fonseca, 11 million documents taken from that law firm, given to a german newspaper, which shared them with a global consortium of media outlets around the world. in those documents, according to the reporters who had a chance to go through them, are accounts of world leaders, as many as 12 world leaders who set up shell corporations using that panamanian law firm to allegedly hide assets around the world. one of the leaders under scrutiny today is vladimir putin. his name does not show up in the documents personally, but the names of a lot of his close confidants and inner circle do show up in those documents. the kremlin has already had reaction here and we're getting reaction from some of the world capitals to this story. kremlin saying this report was

go to capitol hill, valeant was in danger potentially of being held in contempt for not appearing, eamon. >> he is on the hill and he will be testifying. we're told that was scheduled to start at 10:00 a.m. and our crew caught his entrance up on capitol hill, asked him a couple of questions as he went in. here's what he had to say. >> i'm with nbc, can we talk to you for just a moment, sir? are you confident about following the 10k this month? so that's michael pearson heading into the senate dirksen building where the deposition will take place this morning. we'll try to get more information about what he had to say, what the committee wanted to hear from him. as you guys know so much focus now on this question of pharmaceutical companies raising drug prices after they acquire new drugs and new products. senate aging committee wants some answers. >> that will be the guy to give them. thank you very much. let's check where we are in the markets at the moment. slightly higher overall. decent start to the week despite the fact of course oil is falling for the reasons we just discussed. tho

eamon javers has more. >> reporter: there's an old saying in politics which is you got to dance withring you, mean you're supposed to be loyal to the people who sent you to the convention. we'll test that this summer at the republican national convention. so many scrutiny on those delegates selected to carry out the voting on the floor. let's look what we know as of right now. first of all how do you become a republican national committee delegate. four possible ways. you can be elected at a state convention. you can be elected by primary ballot. or be elected at a state committee meeting. some states accept candidate provided slates. the candidate writes down 25 people he would like to see as his delegates. once the election happens the state takes the list and goes one, two, three, four, five how many they won on election day. the question is are the delegates bound? there are rules that vary state by state. in 31 states the delegates of the republican national convention will be bound on the first ballot. in only seven states will those delegates be bound on the second ballot. on

eamon javers has more on the inversion fallout. >> reporter: president obama had some very tough wordsay for corporate inverters saying they effectively renounced their american citizenship. here's what he had to say just yesterday. >> jobs in march. >> reporter: okay. looks like we don't have that sound but what president obama said yesterday that this was a loophole that companies took advantage of to lower their tax bill but sticking the middle class with the bill that everybody else has to pay. on capitol hill republicans said this new treasury rule was punitive but nobody on the hill was predicting that congress will take any legislative action of its own given the election season and limited amount of time left in this congress and this administration. guys we're left with a standoff here in washington where president obama is using the treasury department to tighten up the rules. they had dramatic impact on one of the deals that was pending. we have to wait and see what happens through the rest of the year here. but president obama linked those tax inversions to the panama paper