we take allegations being raised in china very seriously, says gl glaxo smithkline. more on that to come a little bit later. >>> outflows from pimco have dented first quarter profits at the asset division of allianz. annetta is in frankfurt. the cfa playing down the issues that they've had at pimco. how much of this do you think is to do with concern about the management of pimco itself in order of the rotation? >> what i'm hearing from allianz, they're quite comfortable with the situation they're in right now. there was a shock to the management. what happened at their top management at pimco. right now they have a new management team in place. of course, the outflows are not great. looking at the sheer numbers, only judged by asset undermanagement from third party, that 21.6 or 21. billion figure makes up 2% of those assets on the management from third parties. but perhaps take a listen as well, what the cfo of allianz had to say on that question whether it's down to management problems or whether it's general market trend that the former cash cow is having a littl

what exactly has glaxo said? far it announced there is a formal investigation going on in the united kingdom into their foreign practices and the way they sell their drugs. this comes just two weeks after chinese police handed over results of a 10-month investigation into alleged bribery of dock task force and hospitals to use green bay packers owe smith cline drugs. -- glaxosmithkline drugs. it comes very soon after it. it is not just china that we should be keeping an eye on. you have lebanon, poland, iraq. a number of other countries also seemingly been afflicted by the wrongdoing as well. allegations of wrongdoing. allegations of bribery in the -- of green bay packers owe green bay packers owe smith cline drugs. >> took over the helm in 2008. now back to 2012. that is when glaxosmithkline held its hands up and said we plead guilty in the united states. a record fine is what they had to swallow. $3 billion related to illegally promoting their prescription drug. they immediately admitted defeat in 2012. yes, al

justice department began analyzing drug companies and glaxo admitted it. hands up and paid a record $3 billion fine, saying, yes, we did illegally promote prescription drugs and failed to report safety data. >> what does it do for andrew witty? he says he was there to clean it up. >> in 2011, he started revising some of the u.s. sales representatives. so don't need to sell much if you want to get your bonus. it has not been implemented abroad quickly enough. we need to see how it impacts u.k. entities. >> let us leave it there. east for an inside look at the recently annexed region. what is the price tag for russia? ♪ >> welcome back to "on the move ." i am manus cranny. 30 minutes into the trading day. equity markets are lightening up a little bit. we're coming off the six-year highs. -- >> in two words, deal breakdown. we're abandons their chase of metso. mezzo management were not interested. he rejected the deal. you are seeing in unchanged price right there. they are set to continue trading. i will give you a price on the get it. look out for that one.

you also have been covering glaxo. >> you mentioned it earlier.vestigation going on in the united kingdom. they are looking at commercial practices of glaxosmithkline. basically, did they bribed doctors, medical units, hospitals to use products in foreign countries. there is a big investigation going on in china. earlier last month the chinese police handed back the results of the investigation into sales for actresses. >> we don't know whether they are looking -- into practices. >> we don't know if it is a broad investigation. we just know they are investigating. >> the statement he reiterated doesn't seem to say whether it is china or other foreign countries. analyzing these allegations. of these countries have reason to believe there could be some wrongdoing from glaxosmithkline. concern that the united states and the u.k. do have the strength to prosecute if there has been corruption or mis-selling a broad. it doesn't have to happen in the u.k. it can be further afield. this has been well flagged. previously they have said, we are cooperating

just last week -- glaxo's head of business in china was arrested as part of an ongoing bribery scandal. glaxosmithkline has declined comment. the department of justice is filing a "criminal" complaint against credit suisse. the doj accuses the bank of conspiring to help american's dodge taxes, by using the bank as a safe haven. the bank is expectd to plead guilty and pay a multi- billion dollar fine. a former european trader whose losses rocked the financial world, is now in jail. jerome kerviel, known as "the rogue trader", turned himself in to french police this week. the former banker for societe generale so-sit-tay- jener-al, will serve three years in prison for a six-year old crime. he lost his appeal against jail time in march. risky trades he made back in 2008 cost the bank nearly five billion euros. as the vatican attempts to bring better transparency to its bank. more fraud has been uncovered. the number of suspicous transaction reports jumped from 6 in 2012 to 202 in 2013. the church's financial information authority attributes the surge to improved vigilance and reform effor

the fraud office is open to criminal inquiry into glaxo smithkline. no details right now have been released about the investigation. gsk was recently accused of massive and systemic bribery in china. the drug company also faced allegations of wrongdoing in poland and iraq. katherine boyle is with me now with more. not unexpected. we said the allegations that were made in china actually opened up the door for an investigation here in the uk, too. >> well, of course. what gsk watchers will be looking out for is whether it also left themselves open to accusations in the united states as well. because, of course, they've got operations there and the u.s. doesn't look too kindly on these actions if they're proven to be true, of course, as well as the uk. of course the sfo has opened this investigation. we don't know who will be enter viewed yet. usually when this kind of comes down to it, a lot will settle on just how much management will know. you might see board members being hauled in. of course gsk management has been really stringent so far in saying

an investigation alleges glaxo bribed doctors and hospitals to boost drug sales. the company called the allegations deeply concerning to us and contrary to the values of gsk. if convicted -- the individuals involved could face up to life in prison. deere and company is running into tough turf. that leads off our earnings watch.. deer blames lower crop prices and slowing demand for farm equipment on a 10% drop in net income to $9.2 billion. the company missed analyst estimates and lowered its outlook for the year. and after a powerful run in the stock this year.. plug power is trading below $4 dollars. the fuel cell company reports a $75 million dollar loss. but the ceo insists plug is charged up to become a large profitable company. flyers feel more satisfied up in the air. jd power and associates says for the second year in a row, consumers gave airlines higher marks in a satisfaction survey. alaska and delta topped the survey, followed by u.s. airways. newly-merged american and u-s airways also made the biggest improvements in their score from last year. jd powe

. >> with glaxo. >> there is a frenzy going on. >> you have novartis and glaxo, ju have bayer, what is j and going to do? they have not done a lot of things. >> they got out of a surgical unit. allergan is actually reaching out to see if there is any interest in a large game changing -- >> there is a little bit of hesitation whether jay and would be interested. it is not in their dna to do these deals. today they said they are getting out of the botox space, which might put them in a better position. >> so what does this mean for the future? it sounds like there is other stuff in the pipeline and that people are becoming more aggressive. these companies are willing to pay up. >> you're noticing in the last several weeks how much knock on effect of areas in the transaction. look at comcast, that is one of the reasons they want to go after t-mobile because he thinks that deal opens him up for other situations. at&t talking to directv. and then you bring it back to pharma, pfizer is going after astrazeneca because they saw what they were doing. >> one add-on is that we have seen a large r

glaxo's rate is much lower. maybe the drug synergy is not there. maybe they like astrazeneca's future in over-the-counter drugs. surprised at how high it is gone so far. mehta will stay with us. the u.s. prepares criminal prosecutions for europe's banks. suisse $1ost credit billion. plus, swing and a miss. .tay with us we are "on the move" and we are just getting started. i am back into. two. ♪ >> welcome back haired i'm francine lacqua. this is "on the move." this is the stock that is on the move. it is construction company losing some 16.2%. all, it expects a 30 million pounds shortfall in the u.k. construction business in 2014. .he ceo also quit andrew mcnaughton has stepped down as ceo with immediate effect. steve marshall will take over as chairman until a successor is appointed. it is one of the biggest stocks that is losing today. aboutan ferro, we talked this is aehta, problem that is specific to ball balfour -- to balfour beatty. >> there a lot of extensions that are positive for the overall environment. clearly, they have a managerial iss

. >> it used to be smith klein and then there was a beckham, a glaxo smithkline. i think some were cross borders. i don't remember thinkingen some was trying to lower their tax rate at the time. this is a new twist. >> this characterized the discussions this morning in the uk. this panel really given ian read, the ceo of pfizer, a tough time here. just as i left it, they were talking about taxes and the tax rate in the uk and whether this was driven primarily by that tax idea. >> he said l says no. >> he says there are other considerations like r&d and the pipeline. they were challenging him on the commitments they were making to the uk and potentially cutting that r&d spend there. we have a clip of him talking about keeping some of the r&d force in the uk. >> we've made a commitment to include, globally, i say globally we'd probably reduce the combined budget. i haven't said in which countries and where we reduce that. a lot of programs are duplicated. what i have said is 20% of our global r & d head count will be in the uk. has any other company made that promis

dave: chinese police have charged glaxo smith kline business with corruption. order the payment of bribes to doctors and hospitals in order to boost sales. saying it is cooperating with authorities. stay tuned and fasten your seatbelts. "after the bell" starts right now. as we wait for cisco earnings, let's get to the market. why is that not good news? >> we're looking at more of an arbitrage money out of stocks going into bonds right now. i think what you are really seeing here is an overall profit taking market. it was very light today, the bonds just got going yesterday, they continued today. they are back up toward resistance levels and i would not be surprised to see the rates rise a little bit from here. liz: it would have thought the utilities would continue to show strength, but on days when equities look good, others don't. >> when you look at the overall sector, they had some pretty good movement because it has been a big shift out of money into a lot of the safer stocks, so now people are trying to buy on the dips and get involved in some risk. this

pfizer left its research base sandwich, glaxo smith kline closed its research center in harlow, and astrazenecaough. it still does research in sweden and building a new research base in cambridge which pfizer says it would keep open. many politicians and scientists are skeptical about that. but professor bantra of oxford university says britain needs to grab the offer pfizer is making to invest in the country. >> i would rather see pfizer put that money you sboo the uk as opposed to invest it in germany or singapore or china because if we push them away from the uk, that's exactly what will happen. they've got all these offshore funds, and they're looking to invest them. if we don't give them that opportunity in the uk, they will go elsewhere. >> reporter: professor bountra is hoping a merger might be matched by a new wave of investment in british medical research from fund managers and venture capitalists. but investment depends a lot on confidence and for astrazeneca seems to have created a lot of uncertainty in the sector. jeremy howell, bbc news. >>> now, at least 830 million women workers

you can see glaxo smith kline, it's the tax advantage that ryan had that allows me to get so much. the business bid was april 22nd if you want to share those. and reportedly bill allergan has made almost $1 billion in paper profits. the paper says the allergan gains were $1 billion and they make about $4 billion in purchasing the portfolio. so you anchor a million and it pays to get a billion. it was some of the gapes of the billion dollars needs to go to a place. but i think it was only a deal, like a dollar. is it -- >> some of them will give gains back. >> it's a great way to do business, and i can't believe it's legal. >> how can you do hostile takeover if you can't buy the stock. >> he's buying stock. and if it falls apart, he loses money. he has all the legal money on et cetera, et cetera. but going into that room i frantically know the balance in advance -- >> the minute you are amounting to hostile, there's a bid. you buy the stock in advance knowing you're going to do it. >> that's the most risk-free thing he could do. >> no, because the deal may not happen. >> why is it m

bribery that pushed up glaxo's chinese drug prices in order to cover the cost of bribes passed on tomedical associations. >> translator: in order to aclooef the high sales targets set by glaxosmithkline headquarters, they set up and expended a number of sales departments with the support of a few criminal suspects. they put the sales cost into the price of medicine. using profits from overinflated drug prices, these departments bribed hospitals, doctors and medical institutions, earning illegal profits of billions of yuan. the more drugs they sold, the more bribes they gave. the more bribing they gave, higher the drug price was. to accomplish sales targets, they adopted many new methods to boost the sales. they encouraged their employees to bribe on a large scale. glaxosmithkline's behavior demonstrates a complete chain of bribery. >> reporter: investigators say they've now wrapped up their case. and they passed it on to the chinese courts. we'll now be watching to see who will be facing charges from glaxosmithkline. celia hatton, bbc news, beijing. >> we've had a statement from gsk.

legally, anyone, this is a larger policy thing, not necessarily about glaxo smithkline. >> not in this particular deal. >> can i ask you a question? >> you can. >> the market hit another new high yesterday. i am now asking who has been waiting longer, the people that have been waiting for the correction or the people that have been waiting for the ten-year to go up? >> the yield. >> and is it related? >> i think it is related. i think it is related. >> we have a new list of clowns in the past month or two. they waited, they waited, they waited, they waited. okay now. why? you're never going to be right about it. it's going to happen when you're saying no. when you finally say -- >> you have to let it go. if you're looking as a long-time investor, let it go. >> in the meantime, nestle -- >> you missed my mispronunciation yesterday. >> i just need to say that now. i will end up -- someone will say, see? nestle announcing it is buying the rights of several dermatology products. >> dermatology. >> from valeant from -- >> i'm not making fun of you. i'm making fun of the generic bad prompter

part of the deal was a joint venture in consumer products between novartis and glaxo which is going to strong. you have one of the situations were chief executives are looking over the shoulders and wondering, if i don't make a deal, am i going to be in trouble? is a gn of weakness for the pharma sector, not a sign of strength. can i proceeded from that angle? termshink it depends, in of what each is getting out of the deal. this pfizer going to get pipelined? they had $240 worth of deals and they have produced three blockbuster drugs. like a position of weakness to me. >> yeah, that to me would sound pretty weak. deal them as stronger position? the industry needs to do something. >> so you're saying, oh, my competitors buying. this is the danger? ,> i think if you go very macro there are two issues. one is the patent cliff. a lot of these big companies have drugs that are going off patent in the next years. that means revenue might go from zeroat deal to virtually as they lose the ip protection on those technologies. that is number one. number two, most of the easy stuff has been foun

. >> like what we saw a couple weeks ago with glaxo at novartis. >> exactly.0ill get $8 billion billion of proceeds, some of it &d, it will mostly be used to buy promising medications and hepatitis b or cancer. they can charge an extreme amount of money for specialized products, that will be the future of the company. >> do you get a sense that that will continue to be the way the industry is going? or are we going to see more shakeout. another vision that maybe reflects the kind of thing we saw before, the megamergers. like what we might see happen with pfizer and astrazeneca. >> i think you will see -- i want to focus on merck. i think we will see more on this. a retooling of the business. >> increasingly specialized pharma companies. >> from 2013 to 2018, pharma largest inthe 13th the u.s. and europe will lose about $15 billion in sales over patent laws. >> the cliff. thisis is what a striving activity. they want to get out of the lower margin businesses. even merck has said that it's older pipeline, it is going to shed. we will see merck and possibly sanof

we've seen a swap from glaxo and novartis. this is a way for companies to hone in on what they're good at. we're hearing a lot of pharmaceutical companies saying they need scale, they need to cut costs and they want to be number one or two in positions where they're playing. so areas where they're a little bit smaller, we're seeing these asset swaps. and now of course this is all set against the backdrop of pfizer making its $106 billion bid for astrazeneca which is eclipsing everything else going on in the industry. but this is a big deal for merck and one it's pointed to for a long time. >> how much of this deal is being driven by tax implications? by bayer, not bayer by the way -- >> i think they call it bayer aspirin. >> i have heard it's bayer. >> they are the buyer. but being the buyer, in part being driven by taxes in the savings and come with if because their tax rate is lower, how much should we take away from that? >> well, in this deal, they do say that they're going to have some tax synergies, some tax savings. the

eunice yoon joins us with glaxo smithkline's troubles in china. eunice? >> it is troubling. chinese police are charging gsk executives with bribery. at the end of a ten-month long investigation, the authorities at the public security ministry said they found gsk sales staff did indeed bribe hospitals and doctors, helping the company raise hundreds of millions of dollars. now, the authorities did single out the former china chief, a british national named mark riley. authorities say that riley ordered staffers to take part in his massive bribery network. all day today we've been watching the chinese staff of gsk in their orange jump suits on state tv. there's been a parade of them. they've been constantly confessing the crimes that they did. they've been talking about how they engaged in this bribery and in fact there was one staffer who actually specifically accused riley of ordering hr and finance directors to destroy evidence in a crisis management campaign. now, the company itself has issued a statement about this investigation, saying we take the allegations that have be

what we are focusing on again today is glaxo smithkline, up right now around 0.7%. the it latest news, sales people saying the company aren't going to reimburse them for brabs they were ordered to pay their superiors. the report coming after news that chinese officials have accused that uk pharmacy of operating a massive bribery network. we know here in the uk, the britain's office is looking into this scandal. guys, on that note, i'll hand back to you. >> okay. we'll have your buddy nigel on later today. did you know that, julia? >> yes, i did. i was talking to michelle this morning. can't wait to see the face-off between nigel farage and michelle. >> i don't know whether -- we don't have a lot problems with him. i think the euros have a lot of problems. we'll see. we've had this guy on before. he was refreshing. i enjoyed having him on. this should be interesting. >> he's a closet american. he's a closet american. he's very -- >> exactly. exactly. >> he's very american in his approach. >> that's what i'm talking about. did i say refreshing? others might call it ug

. >> everyone kind of -- says there will's glaxo, a good company, navarre tis, there's astrazeneca.le would say. >> yeah. >> i wanted to recommend it so badly on "mad money" for people who wanted income and i got cold feet, man. i was wrong. pfizer loved it. they like the address. >> they have $40 billion sfimtsing what their foreign cash they haven't told us specifically to put to work they won't bring back to this country. why not use it. >> ask the labor secretary about it. do you think he'll react? >> i would be interested to hear. >> might be out of his universe but never know. >> right. >> i know what he's going to say. we need to have immigration reform. >> yes. >> globalization -- >> he can hear you right now bring him in, on the jobs number, labor secretary mr. perez joins us from washington, d.c. good morning to you. >> always a pleasure to be with you. >> it's been said that it's into the often you see a madeline -- not often you see a headline this good with internals disappointing. do you consider 6.3 a success? >> i consider 288,000 jobs created to be a significant pro