. >> i also want to ask you about the headlines on glaxosmithkline.ina caught up in a bribery scandal, i understand? >> reporter: yes, that's right, and one thing that you see here in china, and, mandy, you know this very well because you were in asia for so long, that you see with this madoff case as well as with this glaxosmithkline case is that in china when the government wants to send a message, they generally catch a very big fish in order to scare all the little fish, and so that's -- that's what a lot of people are wondering about with glaxosmithkline because the government has actually been pushing through a very high level and national campaign to root out corruption. they brought in a very important and powerful technocrat who is running the anti-corruption campaign. they also have been cutting a lot of excess throughout the government, and so a lot of people have been asking if glaxosmithkline has just been caught up in this whole matter. there are a lot of those other questions being raised as to whether or not this could be a market acce

the chinese government accuses 4 glaxosmithkline execs of bribing doctors, hospitals and officials to boost drug sales and get regulatory approvals. so far, there have been no arrests. the pharmacuetial giant is coorperating with investigators. president obama will brief the country on the economic benefits of healthcare reform in a speech today. yesterday, new york governor andrew cuomo told residents health insurance costs will be cut in half. he says regulators have approved rates for 2014 that are half of current rates. the new york times reports that individuals buying their own insurance plans may now expect to pay around $300 a month. that's down drastically from the current rate of a $1,000 a month. earnings from wall street continue today with morgan stanley reporting in. yesterday, bank of america released results showing profits soared 70% from a year ago to $2.1 billion. the bank benefitted from reducing its headcount. earnings fell 24% at mattel. however, revenues improved on strong demand for american girl dolls, which offset declines for barbie and hot wheels. americans

glaxosmithkline ceo is expected to address the issue and reporting earnings at 1:00 p.m. cet. they say gsk is looking at cutting drug prices in china. astrazeneca, two more of its employees were questioned by shanghai police and officials are detaining another u.s. citizen in shanghai in connection to the probe. a uk business heeditor helia jos us on the set. tell us your perspective. >> i think what you mentioned about price reductions is key here. alongside results obviously china has taken the headlines. we're expecting to see a bit more detail on what the drugmaker will offer up to chinese authorities to appease them. and that's expected to be reductions in price across maybe one, maybe two, maybe all of their drugs that they're selling in china. that's pretty big deal. >> we got a couple of guests coming up this morning who have been looking that the from the stock perspective and their feeling is it could be a short-term issue. if you talk about price reductions, this changes the earnings profile for the company in china, and there too i would imagine for other drug comp

. ♪ melissa: what is the cost of doing business in china if you're pharmaceutical giant, glaxosmithklineu might say a half billion dollars in bribes and sexual favors by the way. chinese police say that has been going on for the past six years for the company and four senior executives are now being detained but china is the fastest growing pharmaceutical market in the world. is this a cost of doing business there? here to answer that, china expert gordon chang and former federal prosecutor, frred tecce. welcome back to the show. fred, let me start with you. half a billion dollars in bribes in 2007 including sexual bribes. >> i didn't get a penny of it. i didn't get any of those either. melissa: there you go. seems like they have a pretty good case against glaxo. what do you think on first glance? >> i think on first glance they have a very good case and apparently there is a tipster that glaxo was paying cash to doctors for state-run hospitals to get themo use botox. who knew there was a big demand for plastic surgery but i guess there is. these allegations sound pretty serious and i wo

so what the speculation is is that glaxosmithkline could be the big fish. government has been pushing through a national campaign to try to root out corruption. you see that in the way that they put in place a very powerful technocrat to head up the anti-corruption team. they have been rooting out corruption within their own ranks, in the system, and trying to cut out some of the excess. now we're starting to see more people believe that this corruption, anti-corruption campaign is meant to include international firms. you mentioned the people's daily, the people's daily commentary, people were really talking about that, because of the fact that it was really targeting multinational firms, saying the crackdown in commercial bribery needed to take place among multinational firms to bring order to the market economy. also, one of glaxosmithkline's executives who has been detained appeared on national tv here for the chinese people. so chinese people saw him allegedly confess to these crimes. and so, you know, we don't really know the circumstances around his

those are serious penalties and serious problems that glaxosmithkline would be open to if, if that investigations forward and bears fruit. melissa: gordon, do you believe though, that all companies, all the pharmaceutical companies in china right now are doing similar things? we see these three big companies settling cases are the domestic companies also having to provide bribes and is that just how you get business done? >> yeah, that's the way business is done. you have these poorly-paid doctors in government in china. you know, they own many, many properties across the country. every weekend they can travel across china at the expense of these chinese pharmaceutical companies. you know, this is just endemic. china is one of the most corrupt countries on earth and pharma is one of the most corrupt sectors in china. this is just terrible and that's why this is endemic. not just glaxo. not just eli lilly, not just pfizer. melissa: but, fred, how should that factor the way the sec follows up? to a certain extent i have sympathy for companies trying to operate in foreign countries where bribes are

this comes on the back of the glaxosmithkline scandal in china, apparently four more global companies are in the eyes of regulators. the share price tracking lower by 1.4%. let's move on to what we're seeing across on some of the bound markets. u.s. treasuries in focus with what ben bernanke will say. ten year gilts is where we see the most movement today. they were tracking lower. we spike to 2.33%, not matching up to u.s. treasury. still firmer in session and across on the periphery, there are some gains there as well. on foreign exchange markets, it is the trade in sterling, the most activity has been. we saw a fairly sizable jump after those minutes as well. we're tracking firma through the 152 mark, guys. back over to you. >> thank you for that. we got a scandal in china this morning. a nationwide crackdown on the sale of illegal medicine today, promising to tighten industry regulation, the comments coming a day after the chinese police accused glaxosmithkline of widespread bribery of chinese officials and doctors to boost sales. they did it through travel agents. bribing people,

. >>> glaxosmithkline's china finance director has been stopped from leaving the country.sh citizen was hit with the travel ban as chinese authorities investigate the alleged bribery of doctors and officials by gsk. cnbc's eunice yoon filed this report. >> reporter: glaxosmithkline confirmed its finance director in china has been barred from leaving the country. he hasn't been detand. he hasn't been questioned. he's still allowed to travel normally within china, but this is just the latest sign of increased pressure by chinese authorities on the british drugmaker. the government has been in a very high level nationwide campaign to try to root out corruption. they put in place a very powerful technocrat to led up the campaign and they have been trying to cut out a lot of excess waste within their own ranks. but this is really the first time that we are seeing an international firm caught up in this crackdown. however, the commerce ministry made it very clear that this won't necessarily be the last. >> china stands firmly against commercial bribery in every way. enterprises,

henry, talking about glaxosmithkline -- >> extremely good run this year.ishing first signs of estimates improving. we started to see the first signs of actually estimate upgrades at glaxo for well over two years now. i think starting to do some work behind the scenes, it is also a little bit of small m & a, might be selling the aid. so few things starting to go glaxo's way. i think there is starting to see some sort of payback from what has been incredibly disappointing three, four, five years on the r&d front. that could be starting to bear fruit. now it is murky with regards to bribing doctors locally in china. i fear it has been part of the industry for a long time. >> i was going to say, maybe to many not a big surprise that this is an issue in the industry, but you wonder whether or not they'll be able to move on from it or separate it from the rest of glaxo's business and move on quite quickly. >> there has been a lot of work done in the developed world to make the process of drug acceptance and drug testing very much less sort of more, if you like,

fromr executives glaxosmithkline have been investigated for suspected bribery and tax violation. this allegedly happened in china. a large bribe has said to be given to officials, medical associations, and doctors to boost drug sales. the company said they found no evidence of corruption. passengers on the flight that crashed landed in san francisco airport on saturday said emergency vehicles were slow to arrive at the scene. that is according to 911 calls released today but officials maintained that ambulances and fire trucks were there within minutes, they were just cap in a nearby staging area to avoid more chaos. >> i was on the plane. >> a friend called by a female at saner after the crash francisco airport last week. >> there are people waiting on the tarmac with critical injuries. we're trying trying to keep our lives. >> questions are swirling around how it came to crash. the pilots were approaching too slowly and too low. walllane clipped the sea which separated the airport from san francisco bay. seemsssenger recollection to back up that series. >> we are so close to th

a british employee of glaxosmithkline was recently detained in connection with bribery allegations. if one california republican has his way, you may no longer get mail delivered to your door. representative darrell issa, who chairs the house oversight and government reform committee, has introduced legislation that would move the postal service away from door- to-door delivery and toward curb-side or cluster boxes. delivering mail is the postal service's largest fixed cost at $30 billion. ending door-to-door delivery would save $4.5 billion each year. in our earnings watch, ups reports customers are putting the brakes on expensive shipping options. the delivery company posted profits that came up shy. chemical company dupont turned in a 12% decline in earnings for the second quarter and is considering the sale or spinning off a chemical unit. radio shack topped revenue estimates, but losses widened as the electronic retailer struggles to turn around. and investors have an appetite for wendy's. the stock rose to a 5-year high on a better-than- expected profit. wendys is also introdu

fallout from glaxosmithkline's alleged bribery scandal may mean cheaper drugs. the pharma giant admitted this week that some of its executives have broken laws in china. one has pled guilty. so far, four of its executives were accused of bribery to manipulate drug prices. in a statment, the company revealed executives "appear to have acted outside of our processes and controls, which breaches chinese law." the company said this week that price reductions may result as it reviews its china operations. in a first-of-its-kind case, a high frequency u.s. trader is fined almost a million dollars by the u.k.'s financial conduct authority. michael coscia used an abusive and illegal trading strategy known as "layering" to place thousands of false orders. he made a profit close to $300,000. he was fined around $903,000. gas prices have soared like a fourth of july bottle-rocket. nationwide, the price of a gallon has gone up 20 cents since the holiday. in chicago, regular is now around $4.40 a gallon - premium nearly $4.80. analysts say a chainri from texas to canada has

glaxosmithkline is attempting to clean up its act in china with a new boss. the company's senior vice president of europe will take over as general manager in china. the former chief in asia will stay with the company to help with the bribery investigation. gsk is accused of a multi-million- dollar scandal involving bribes to government officials, doctors and travel agencies. four executives have been detained, and one has been banned from leaving the country. the faa is ordering safety inspections on boeing's 787 dreamliners. it follows a fire this month aboard a jet that was parked at heathrow airport in london. the problem was traced to an emergency beacon made by honeywell international. the faa is ordering boeing to remove or inspect the emergency localtor transmitters for pinched wires in the casing and evidence of heat or moisture. starting next month, the cruise industry will become more transparent. royal carnival, and norwegian cruise lines are agreeing to expand reporting of "at sea incidents." findings by the senate reveal since 2011, hundreds of

chinese officials say glaxosmithkline executives in the country have admitted to bribery and tax violations. the security ministry has been probing allegations that they bribed chinese doctors and hospitals with cash and travel perks to prescribe drugs. the company is accused of writing up fake invoices. this week, gsk said its own investigation into improper products marketing didn't find any signs of corruption. gsk responded to charges of bribery in china telling cnbc that they have found no evidence of bribery or corruption at this time, they will act quickly on any such evidence if provided. they said if we are -- we're willing to cooperate with authorities, but this is the first official communication that gsk has received from the chinese authorities about the specifics of the investigations. >>> and the pc industry struggles as consumers shift to smartphones and tablets. shipments were down 11% in the second quarter. inexpensive tablets are replacing low end pcs in markets like the u.s., becoming the first computing device for many people in emerging markets. we want to know, who is

. >>> and how glaxosmithkline bribery scandal could affect the company.say about this when we come back. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function

china accusing glaxosmithkline of wide scale bribery. eunice yoon has more. hello. >> hey, becky.t crackdown on alleged corruption is certainly unnerving to international business community in china. this isn't something you see every day on chinese tv, this week state run cc tv featured an interview with an executive of british drug giant glaxosmithkline, being questioned after detention, shocking the international business community in china. >> what is going on with gsk is really unprecedented. i've never seen the government go so strongly and loudly after one company. and make such a big deal out of it in a criminal way. >> reporter: the alleged crime, bribery, of doctors, officials and hospitals, in the hundreds of millions of dollars. for glaxo executives have been detained, the finance director, a foreign national, ordered not to skip town, part of the crackdown on the first foreign firm to be ensnared in beijing's anti-corruption drive. it is like catching a big fish, this lawyer says, it is a warning. one industry in need of a cleanup, health care. walk into a hospital an

in the meantime, glaxosmithkline earnings fell short of consen s consensus.argues it is too early to quantity fight september. eunice yoon joins us from beijing. >> there is serious damage control going on at glaxosmithkline headquarters in the uk. ceo is speaking at the second quarterly results and basically disassociating the company as best he can from the scandal here. he said that the chinese allegations were deeply disappointing and that headquarters had no knowledge of the china scandal. he also went on to say that 99.99% of the staff operate in appropriate way and as far as they are aware, he says there were no allegations that the top two uk executives in china were involved in the scandal. as of right now, the entire health care industry here is very, very nervous. and on edge. there was another detention for national, an american this time who was detained as part of the ongoing investigation. so far we don't know the name of that person, but -- and we also don't know for certain what company that person worked for although we do know that he does

liz: glaxosmithkline says some of its executives may have broken the law in china. chinese officials, we've been telling you this since last week, accused four of the company's staff of being involved in a huge bribery scandal. david: one of switzerland's largest banks, ubs, reach ad deal with u.s. regulators after its allegedly misrepresented mortgage-backed bonds during the housing bubble. ubs plans to take a 748 million-dollar charge as a result of the settlement. we have a busy "after the bell" and it starts right now. liz: we have netflix numbers and stock is falling. dennis what happened? >> i haven't figured out yet because it is a huge beat to the upside for earnings per share. wall street wanted only 40 cents a share. revenue comes in and matches wall street expectation, $1.07 billion as wall street wanted dead on that. is a 20% increase over year ago quarter. what is bothering investors right now? q2 streaming revenue up 26% here in the u.s., more than doubling internationally. they have very little on international play. they are largely a u.s. company so

plus the company has huge preclinical collaborations with glaxosmithkline. we bring on companies like this, why? because of what happened earlier today with another biotech name we pushed endlessly. alexion. based on word of a potential bid by swiss giant roche. we saw pharma takeover bid from pharma. i don't like chasing stocks that are up that much, but at the same time, i have to tell you this is one exciting story. let's check in with the ceo of epizyme to learn more about his company. welcome to "mad money." thank you for being on the show. >> my pleasure. thank you. >> good to see you. those hou took biology, and are older, remember the double helix. you remember dna. you are actually interfering with the bad parts of dna. >> that's pretty much correct, jim. you remember the double helix where the dna is wound around in order to fit inside the nucleus of the cell. if you think for a second the amount of dna in each cell. it's fingertip to fingertip in every one of your cells. so the cell has to compact that dna down. and in order to do that, it winds i

liz: glaxosmithkline agreed to pay $293 million to settle lawsuits with states that accused of deceptive marketing. david: u.s. prosecutors charging six foreigners of hacking with cost allegedly u.s. and european companies $340 million in losses. alleged victims were citigroup, jcpenney and jetblue. this was the biggest cyber fraud case filed in u.s. history. we have a lot of action including amazon earnings in just a moment. "after the bell" starting right now. david: let's get right to today's action. we have mark tepper, strategic well parters in and ceo and founder with three companies he said you should get in on. larry shover joining us now from the pits of the cme. larry, i want to start with you. let's start about earnings overall. what do you think of the season so far? >> well the season's been great. as you mentioned we're at the peak right now of the micro season. we have had on earnings side, s&p 500 has beaten by over 70%. on the sales side has been over 50%. that has been stunning. i do believe that is what kept the market up. david, it is important to recognize the last f

the company has two major partnerships and glaxosmithkline and the other with bayer and we know fromne whose impressive ceo we spoke to on friday and these collaborations are crucial for the early stage biotech companies and based on the fabulous performance of the biotechs, i think this can roar when it starts trading on thursday and then i think we can keep running. they sell 4 million shares at a price of 14 and 16. if you want in on this one do some homework and call your broker. if you can get in on the deal, i say ring the register on some, but you know what? the history of these biotech stocks, i want the rest of you -- i want you to ride it. i'm not kidding. let the rest ride. next week, we have another biotech firm, and here's a company in my two favorite sweet spots and they treat a subest is genetic metabolic diseases and this is where drug companies can charge hundreds of thousands of dollars and you can offer a lot for the course of treatment because they're selling life-saving medications that patients can't live without and congress wants you to do that. they want thes

. >> glaxosmithkline is the first and-- >> astrazeneca and a lot of others, merck and p can-- companyhanded in china, you can be jailed under harsh conditions. stuart: david asman on top of it. question, does detroit going bust mean it's more expensive for other cities to borrow money? we will have the definitive answer for you in a moment. ♪ ♪ this is your hometown ♪ this is your hometown this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whetr you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. is it ♪ speak true will detroit's bankruptcy make trouble for other cities? ed, you say it will make it more expensive. >> i can give you some examples. this did not creep up on us all of a sudden. this week alone, stuart, $9 billion of new enjoyed this are coming. next week,