a lot of people work for hsbc. nothing to do with being a conduit for drug smul smugglers, and if you prosecute them, you can derail their jobs. >> collateral consequence is meant to apply to companies. in other words, it's all about the decision on whether or not to criminally charge a company, not the individuals of the company. so we can understand the reason why you wouldn't want apply a felon charge to an entire company like hsbc, which is one of the biggest banks in the world. but there's no reason why you can't charge a bunch of individuals for laundering drug money. >> good point. >> the second one is, you can only make the excuse once, that you're too big to prosecute. what they should have done is in exchange for us not tossing you all in jail now, you have to become smaller so the next time you do this, we can throw you in jail. and the the third thing is, it's morally unacceptable when one class of people pays a fine to get out of monstrous crimes, and another group of people goes to jail for the same c

ubs, goldman sachs, morgan stanley and hsbc.roup's mexican unit banamex reportedly fired two traders after uncovering rogue trading. they suffered paper losses that ran into tens of millions of dollars. banking regulators were aware of the matter. some citigroup officials are asking whether the fed's decision last week to reject its capital plan was linked to bamamex, which also suffered losses from bad loans to home services. >>> and a u.s. job judge says misleading about its ability to manage risks. the judge says shareholders can't pursue claims knowingly fit the risky moves with the bank's chief investment officers have taken in early 2012. >>> jp morgan chase stock up 0.4%. >>> and up next, find out why mark zuckerberg and cheryl sandburg are bringing home a little less bacon. details on the drop in pay for top executives, coming up. up. >>> a recap of the headlines, japan hikes its sales tax. >>> and a new prime minister in france as reactions of voters. >>> and general motors recalled 1.5 million vehicles, this time for p

i think the hsbc case is the great example of this.ey admitted to laundering money for narco terrorists. >> right, right. $850 million. >> jon: and they said, yes. >> oh, you got us. >> jon: we did do that. >> we did do that. >> jon: they are penalty was what? >> a complete and total walk. not one person did one day in jail. no individual to h- to pay any fines. there was a company fine of $1.9 billion which was at the time a record. that very same day when they made that announcement and the justice department was very proud after this deal. i wasn't like we didn't any jail time for these guys they were like we got $1.9 million. aren't we awesome. i went down to the courts and asked around asking what is the dumbest drug case today? they found a guy wawblging on the street with a joint in his pocket who got 47 days at rikers. that's worse than anything that happened to anybody at hsbc and they are at the top of illegal drug pyramid. this guy is at the bottom and he got a worse sentence. that cannot be right. there's no way to look at

if you look at the one from hsbc , that one dropped to 48.hird straight month that we have seen a contraction for this reading. it looks at the smaller private firm. it is also smaller in terms of sample size. you give an idea that should get an idea of where -- you get an idea of where the economy is being hit. the chief china economist did say they expect beijing to fine tune policy sooner rather than later. we finished the first quarter yesterday and they think they growth in china may have come in a little bit below the comfort zone of beijing's target of 7.5%. this follows on from premier li's commentsier last week. they have ideas to promote growth and that is what the chief economist at rbs said. it confirms the government is going to take some measures to support growth ahead. that is a little bit of a bright note. back to you. >> twitter is ramping up its social tv efforts in europe. see what the purchases will add to twitter. caroline high joins us. it is no longer enough to -- caroline high joins us. it is no longer enough to just

we will speak with the hsbc head of global research. ♪ first.time for the company news. 56,000 vehicles in the u.s. with in-line six cylinder engines because of a defect that could damage the engine. the recall is affecting models made between 2010 and 2012. ford's lincoln brand is undergoing a $1 billion overhaul to freshen its lineup with a new design director after quietly replacing them. ford ceo mulally is trying to revive likened to get into the luxury car market. cisco and juniper said some of their networking products are susceptible to the encryption lead withthe routers and firewalls sold by both companies. welcome back. this is "countdown," i'm mark barton. hsbc arrays in its rate on the eurozone periphery debt, bullish. stephen major is here, hsbc global head of fixed income research. steven, good morning. the greek bond sale, desperation or optimism? >> exuberance, perhaps. 24 hours before the deal came, people were talking about 5.25% coupons. and the issue was 3 billion rather than 2 billion. that was a huge market demand for this

us take a case like hsbc, it's got a $1.9 billion settlement living at them i guess a year ago. deferredt of the restitution agreement for hsbc, they admitted that they had laundered as much as $850 million for central and south american drug cartels. not only did they commit minor financial infractions, technical infractions -- we are talking about an organization that was operating at the top of the illegal narcotics pyramid. this is a major criminal enterprise. and they admitted it. if they did not find the evidence to put those people in jail, that is on them. that is a failure of the regulatory system. if you have somebody you know is guilty, admitted they were guilty, who were in league with truly dangerous and violent people, helping them out with the worst kinds of behaviors and could be involved with, nobody spends a day in jail. that is outrageous. look at it compared to who does go to jail in america. that is people at the very bottom of the illegal drug pyramid, the consumers, people who are caught selling dime bags. they go to jail for real-time. they go to jail for

that, part of it was the deferred prosecution agreement for hsbc. they admitted they had laundered for drugs $850 million cartels. not only did they commit minor financial infractions, technical infractions, we are talking about an organization that was operating at the top of the legal narcotics pyramid. this is a major criminal enterprise, and they admitted it . and if they did not find any evidence to put those people in jail, that's on them. that's a failure of the regulatory system. if you have somebody you know is guilty, who has admitted they in leaguey, who are with truly dangerous and violent people and helping them out with the worst kinds of behavior that a bank could be involved with, and nobody does a single thing to be in jail? that's outrageous, but it's even more outrageous when you look at it in comparison with who goes to jail in america, and that is people who who are at the very bottom of the illegal trade pyramid, the consumers, people who are caught in possession of drugs, who are caught selling dime bags on the corner. they ar

and in that part of the deferred prosecution agreement for hsbc they admitted they had laundered $850 million for a pair of drug cartels. we are talking about not only did they commit minor financial infractions, we're talk k about an organization that was operating at the top of the illegal narcotics pyramid. this is a major criminal enterprise and they admitted it. and if they didn't find the evidence to put those people in jail, that's on them. that's a failure of the regulatory system. if you have somebody you know is guilty that has admitted they were guilty who are in league with truly dangerous and violent people in helping them out with the worst kind of behavior a bank can be involved with and nobody does a single day in jail, that's outrageous. but it's even more outrageous when you look at it in comparison with who does go to jail in america and that's the people at the very bottom of the illegal pyramid. the consumers. people caught selling dime bags on the corner and they go to jail for real time. five years, ten years. at the same time we are letting hsbc off with a tota

we have stephen king of hsbc. great to have you on the program. there may be a political hurdle.s this going to be like a crux moment where we understand france is open for business or whether it is the same old socialist france? >> it is a big question. not so much whether it is the same old socialist france but whether it is resistant to the idea of businesses from elsewhere in the world buying its key makers. the case where the yogurt maker was not able to be bought because of strategic concerns. the u.k. model is very much in favor of basically all comers coming in and buying assets. the french model much more resistant to that particular idea. we'll see what happens over the course of the next few days. >> the french need to be more open, though. the economic numbers are probably not as bad as people thought they would be but there is clearly a deficit problem and need for structural reform. one of the ways you can do that is by globalizing your companies. if you can start to have an impact through companies like g.e., coming further into the fold. >> a consequence of foreig

it is understandable to maybe not charge the company, but in the case of a company like hsbc -- whichitted to laundering money for drug cartels. somebody has to go to jail in that case. if you're going to put people in jail for having a joint in the pocket or slinging dime bag's on the corner on the city street, you cannot let people who laundered $800 million for the worst drug offenders in the world walk. be ais can't parenthetical. explain what you're talking about. >> this is one of the world's largest banks, hsbc, europe's largest bank. a few years ago, they got caught , swept up for a variety of offenses, minor elong -- money laundering officials. they admitted they laundered $850 million for two drug cartels, when a mexico and one in south america. including the notorious drug cartel in mexico that is suspected in thousands of murders. in that case, they paid a fine, $1.9 billion. some of the executives had to do further bonuses for five years. not give them up, deferred them. there were no individual consequences for any of the executives. nobody had to pull money out of their

stephen king is coming in from hsbc. we do need to talk to him about structural reform in europe. the resistance to foreign takeovers that we have seen recently. look at what has been happening in the cement sector. french structural reform. we will address that. we will also talk about the death of money and why draghi is right. some great guests coming up on "the pulse." can't wait. >> i am looking forward to that interview as well. thank you. here are some companies on the move in the meantime. estimates as demand stabilized in europe and the company has performed in asia and latin america. underlying sales rose 3.6% but came in slower than that in the fourth quarter. the company has warned that sales growth would come in lower this quarter. heineken poured out a first-quarter revenue beat with sales advancing 3.4%. the brewer was helped by demand in africa and the americas. heineken extech's strong 2014 sales. faceys it continues to challenging conditions in russia. jumpedof soda stream more than 10% in u.s. trading

at the same time we are letting hf bc off -- hsbc off. divide" explores injustice in america. sunday night at 8:00 p.m. >> in his weekly radio address, president obama talks about his 2015 budget proposal and how it differs romp the republicans. tim scott gave the republican address. >> hi everybody. today our economy is growing and our businesses are consistently generating new job. decade-long trends are in the middle class. those of the top are doing better than ever, but too many americans are working harder than ever. that is why the budget i sent congress earlier this year is also the idea of opportunity for all. the middle class would grow and we would shrink the episodes. it is an opportunity. jobs thatreate more pay good wages. we would train americans with these hills to all those job. we would guarantee every child access to a great education. we would make work pay with wages you can live on, savings you can retire on, and health care that is there for you when you need it. this week, the republicans but forward a different budget. it does the opposite. it shrinks

unemployment crime and also hsbc which is for many the elephant in the wii. the recent gains of the national front in from an increase in fall right to schools he said it was symptomatic of a crisis of identity. it was a bit too if i knew when i went to the chinese ancient dollars in unwanted stealthily got home we are witnessing a rise in racism and antisemitism. i went over and stood on it's accompanied by an anti jewish anti muslim anti christian all have a freebie language and indeed actions which could be dealt with decisively in a film that be france's new ten year ended his speech when singing the praises of the country that allows him a naturalized citizen born in spain to accede to the highest ranks of the government's the bride has also unveiled a series of sweeping cuts to spending. one always is aiming to deliver those cost savings is by streamlining local governments that some of the cow and see what that will mean. source well known to the plate is simplified it is complex and extensive administrative divisions france is currently broken down in

the flash market hsbc china pmi came in at 48.3 but the rating showed a slight improvement. let's go out to sri jegarajah. >>> let's talk about the pmis. they did hint at some stability. there was modest improvement on the headline in april, 48.3 as you mentioned versus 48 in the prior month. it looks as though the greater china market simply on buying these numbers, especially when you look at the devil is in the details. you consider that. because a lot of the subindices, especially the employment numbers, well, they were quite negative or truth be told. shanghai composite in negative territory with the hang seng even worse, down by almost 1%. this is stark market in terms of the disparities. nikkei 225 powering ahead, despite the fact that, arguably, there's caution in these markets with the onset of japanese corporate enings. we're yet to hit the full stride. this is going to be a big test for abonomics. they'll be analyzing those corporate numbers. nikkei 225 seems comfortable with the level chance 14,500. it seems to be comfortable with the dollar/yen. back to china qu

hsbc, retail customers, just more than 50 million.u get forensic, really can they translate some of those customers? you're going to get some of them. but it is not as easy. >> agreed. agreed. nevertheless, the thing about facebook is it is -- it can operate on an detroit. android. matter -- >> apple has a great number of credit cards. i don't know. it feels like a logical layer. you and i communicated. the transaction involved. the potential for facebook is maybe bigger than anybody else. >>> this is why mark zuckerberg and mobile world congress is calling on the companies that work within the emerging markets is saying give the internet for free in the emerging markets so they can use facebook initially and start to communicate. then if he is going to start of the pie ts because the merging market telecoms company already offer this way of transacting money by your mobile phone. facebook b wants a bit of that. they are going to find that a harder pill to swallow, to offer the internet for free because mark zuckerberg is asking them

scheduled release of the flash manufacturing pmi number from hsbc, the private forecaster and for all intents and purposes, luis, l louise, we are looking at levels below 50, whether it stays below 50 or drops precipitously below 48 is the big question, and if it does signal a sharper decline in economic activity, that could be negative for asian equities. shanghai composite clawing back some of the losses 2,072. dollar weakening against its japanese counterpart. so a stronger yen doesn't body well for the exporters and by implication the equities market. we're coming off from this two-week high we saw on monday. residual caution as we hit the full stride in japanese corporate earnings in the next couple of weeks. be watching that as an indicator and as a prism to view its success or failure if the case may be through. elsewhere, broad consolidation in some markets. i want to point out the -- there's a sense it could be hotter than expected. >>> back to our top story, astrazeneca shares have been soaring in london on reports of an informal takeover offer from pfizer. cnbc understands

at the same time, we are letting hsbc off. , nobody pays any individual counted in that case. taibi explores inequality in america. that is on q and eight. "q&a." imagine this is not a moment i have been waiting for. timeimes, we spend so much malign icing the winner and labeling of the loser, we lose sight of the victory we all share. in this crown jewel of democracy. mr. speaker, this a day to celebrate a power that belongs to not to any political party, but two of the people. no matter the majority. all across the world from bosnia to chechnya to south africa, people laid down their lives for the kind of voice we take for granted. often, the transfer of power is an act of pain and carnage. we see here today of peace and decency. here in the house of years,ntatives, for 219 longer than any democracy in the world, we heed to people's avoids with peace and civility and respect. friendshipand with and the deepest respect, you are now my speaker. and let it a great debate began. i now have the high honor of distinct privilege of bringing to the house of representatives our new s

analysts at hsbc have put out their preliminary reading of manufacturing activities in april, and their index rose for the first time in six months. the flash purchasing managers index came in at 48.3. that's up from the 48 that was logged in march. a figure below 50 does indicate contraction while one above that indicates expansion. the index has been below 50 since january. all right on to the markets now. investors in asia shrugging off the key economic figure out of china. the data was pretty much in line with what many economists had expected. and it's providing little direction for markets across the region. as you can see here, asian equities ended fairly mixed this wednesday. the shanghai composite, one of those declining, down about a quarter percent, finished at 2,067. investors sold shares ahead of a number of scheduled new listings. and they're concerned now about fund outflows into the new issues. and in hong kong the hang seng index also with declines of about a percent, 22,509. telecom shares dragged the index lower. market headway china mobile saw sharp selling. here in

hsbc off with a total walk -- nobody pays any individual penalty in that case. >> matt taibbi. , "thetest >> joining us is jason furman. thank you for being with us here on "newsmakers." joining me is damian paletta and james tankersley. let me begin with the senate debate. john boehner says the senate bill does not do enough to create jobs and it is a dealbreaker for house republican. do think you a compromise? >> let me tell you why i think extending unemployment insurance is a job creator. it is not just about providing relief for millions of people who are working really hard to find a job. it has two real economic benefits. one is you cannot get unemployment insurance unless you're looking for a job. looking for a job means you are in the labor force. in the labor force means you're keeping the people connected so when the economy continues to recover, they will get the jobs. in addition, the purchasing power of the unemployment insurance benefits, they have all said this would add to growth and create jobs. >> what happens at the house fails to act on the senate bill? >> i do not wa

french financial banking group pmp paradise and hsbc bank the believer stable outlook greens for which a bank lloyds bank in specific and i were downgraded from stable to negative. companies don't like this up it's on a cross licensing agreement on customs in accordance with a cream and double pay royalties to microsoft products and promotes the sport and enjoy life or something through provides a look back and protection aside from this according to representative of microsoft dell is licensing intellectual property rights over the xbox console. sony will sell another one of its office buildings in tokyo a visit to the reports the company agreed in the sale price of sixty eight million dollars previously bank's headquarters of the corporation were sold for one hundred and fifty six million years dollars. ice cream market. boy aim of the cars some ice cream market in twenty twelve amounted to forty million readers. markets growth in an explosive three to four percent for you in real terms buy your own monitor estimation per capita consumption of ice cream in kazakhstan a month to two p

some positive energy and is china's war on pollution in this series is hsbc tell sis house on a journey. super funny is the most environmentally friendly buildings in teaching and this one there is a financially vulnerable future. but china's green beauties. located in center cbd of china's capital. it really is the first mixed use building to the award in the least green building platinum certification please stands for leadership in energy and environmental design and building certification for them to break a nice fast increase strategies and practices. to learn more about buildings and featured a ticket or with me who won the third generation successor in a child from korea. in effect a director at the park and clean and explain to me helped build the future and our shield works out we have effectively for a traditional buildings with a combined with shilpa goes around itself. it's almost like a greenhouse this editing for plants. it's a greenhouse for human beings for for people to live in and to work and consider him to play. so this amended to shield allows this to come later wit

credit suisse tradition barclays all with a stable outlook for financial banking group pmp paradise and hsbc bank. the believer stable outlook springs resort to bank lloyds bank and so steep it and i were downgraded from stable to negative. now my picks up the sun a cross licensing agreement on customs in accordance with the agreement that will pay royalties to watch her suffer from eczema promotes the sport and enjoy. like herself in turn will provide to look back and protection aside from this according to representative of my piece of demos licensing intellectual property rights over the xbox console. so you'll still another one of its office buildings in tokyo a visit to the reports the company agreed in the sale price of sixty eight million dollars previously the ex headquarters of the corporation were sold for one hundred and fifty six million dollars ice cream market. boy am of the kazakhstan ice cream market in twenty twelve amounted to forty million readers. the market's growth dynamics is positive. three to four percent for year in real terms. my girl monitor estimation per capita

what is the variance of on hsbc? there are a number of different trading techniques. the s.e.c.as broken them down into four main groups. market making. this is very old fashioned. the aim here is to make the spread, of course. then you have arbitrage. very simple again. mispricing between assets between indices and stocks. this is a very old fashioned practice, but it's now gone at a very fast speed. you've got issues taking advantage of structural vulnerability, both in the market and indeed in a participant's positioning in that market, as well. and fairley directional, as well. this is attempting to get ahead of or indeed to trigger a price move. so far, so good. but the high frequency trading has come under some serious scrutiny. credit suisse has a very good piece together with the strategists that seek to distort the playing fields. they send large numbers of orders and cancels those orders. many, many orders in the market are priced to create a false impression of a stock's liquidity. this is lightning fast reactions to news and all the pressure leading to liquidity. thi

i was taken with stephen mager from hsbc this morning who was saying that the price action you validatest he is expecting to see in terms of the fundamentals. some people might argue that what we are seeing in terms of these yields is coming because we are seeing too much exuberance over the possibility of the european central bank earning up to play some kind of qe. there are other good sites out there. for example, today, portugal raised its outlook on the debt. financing conditions are better. thing is, portugal really needs to get back into investment grade, otherwise, even if the central bank were to do some quantitative easing, its bonds might not be eligible. something to think about, anna. >> david tweed in berlin. "the pulse" is coming up at the hour. guy johnson will be continuing this conversation on greece. today's show is appropriately named "the pulse." that is what we're talking about. my pulse, more particularly. i'm wearing this new samsung fit , which effectively syncs up globale new phone, the as five, launched today. let me get a quick shot of that. i must say, have b

off.were letting hsbc nobody pays any individual penalty. the divide, exploring injustices in america, sunday night at eight. >> the associated press reports that the eu will continue to work with russia and ukraine to reduce tensions between the two but will keep further sanctions as an option. samantha powers testified about russia's and convention in andine and the on top -- the ongoing talks with syria. this hearing is an hour and 45 minutes. >> thank you for being with your -- with us here today. the appropriations goes up significantly by more than 25%. we need to hear why this is been justified, especially in light of the fiscal challenges we face here at home. in the short time you have been an abbasid are at the u.n. the many more impatient -- many more important issues have, before you. the iea in particular to an important role to play make sure iran follows through in its commitments and keeping up the pressure as the final deal is negotiated. in syria the u.n.'s role is critical, both in the laminating the chemical stockpile and

we saw hsbc got hit with a $1.8 billion fine, standard charter bank got hit with, i think it was, 3 or $400 million fine and if they want to court doing business in the u.s., they will pay those fines. >> similar to what happens to drug dealers ones you get the scar let letter? >> yeah. >> you get in serious trouble if these banks end up doing business with them but yakunin told the financial times, i did not intend to travel to the u.s. i have no assets there. it does not bother me at all. >> aren't we just talking about at this point, just a few russian oligarchs and the ukrainian government says the sanctions aren't enough? >> well, the then you have the third order of facts meaning anybody who looks like him or seems like he might be yakunin or might be sanctioned sometime in the future can't borrow money, can't enter business deals we see the effects. vladimir putin thought his economy would be growing at 3 or 4%. right now, russia is effectively in a recession. so, i think while if you look at the people who are discredcriticizing the sanctions, they affirmative really criticizin

. >> let's take a case like hsbc, which got a 1.9 billion dollars settlement, sort of levied at them, i guess it would be one year ago. part of the deferred prosecution agreement was they admitted they had laundered as much as $850 million for a pair of central and south american drug cartels. we are talking about, not only did they commit minor financial infractions, technical infractions, but an organization that was operating at the top of the illegal narcotics air amid. this is a major criminal enterprise, they admitted it, and if they did not find the evidence to put those people in jail, that is on them. that is a failure of the regulatory system. that youve someone know is guilty, who has admitted they are guilty, who are in league with truly dangerous and violent people, and helping them out with the worst kind of behavior that a bank could be involved with and nobody does a single day in jail, that is outrageous. it is even more outrageous when you look at it in comparison with who does go to jail in america, and that is people who are at the very bottom of the , peopledrug p

at the same time, they were living hsbc off. taibbi sunday night. next, a previews of today's elections.idential they also talked about the future of u.s./afghan relations after president karzai. posted by the alliance in support of the afghan people, this is one hour. >> thank you so much. thank you for coming here and those of you who may be online. to very happy to be here discuss this upcoming election in four days time in afghanistan. be election day in afghanistan. with thee seeing impressions we have and the news out of afghanistan is that there is mounting enthusiasm in the population, across the board, not just in one area or another. even in the south and eastern parts of the country. much more enthusiasm than fear or trepidation. the election process overall, by attacking soft targets mostly. the reaction of the afghan people overall through afghanistan, there are many of those these days, is one of the science which to me is a very positive sign to see the afghan people give a very strong message to the taliban. in what peoplepe are sayi

have hsbc the last rating was 48. we could get some good news on that front later this week.oining us from singapore this morning, thank you. why this japanese shipping company has had one of its vessels seized by china. it is a story going back more than 80 years. ♪ >> for a quick look at the major events, we will be keeping an ion for you this week -- >> after a three-day weekend, u.s. stocks will kick back into high gear on monday beginning with netflix. company topect the report first-quarter revenue of $1.27 million. theme continues into tuesday with mcdonald's, at&t, and comcast. tuesday, new data on u.s. existing home sales. theomist expect to see sales of previously owned homes to hold close to the levels of july 2012. wednesday withn the world's largest company by market value and the world's largest social media network both reporting profits. apple is likely to report fiscal second-quarter net income declined as sales fell flat amidst stiffer competition. facebook is expected to announce earnings per share increased in the first quarter on greater mobile advertisin

the hsbc reading, a fourth month the manufacturing data has been in contraction.t are likely to have very tight margins if they are exporters. when does this weaker currency start to filter through into this data? you will have to make -- you will have to wait until may 1 for the official emi reading. >> ukraine is considering resuming operations to oust militants from eastern cities. a new move would cause the collapse in agreement reduced -- reached last week. have broken out in rio de janeiro following the death of a young man. he was allegedly eaten by police. -- beaten by police. angry demonstrators set barricades with tires alight. u.s. president barack obama arrives in tokyo today. he will hold talks tomorrow with the japanese prime minister. japan is engaged in a territorial dispute with china. obama is also traveling to the philippines, south korea, and malaysia. it will expand for the first time into the united states. the department store chain is hoping to be operating in the northeast towards the end of next year. expansioncompleted into france and re

we saw how standard chartered and hsbc responded when they were accused of overseas money laundering.quickly settled. given the importance of new york to most global banks, it is not in your best interest to do anything other than try and put whatever the issue is behind you as quickly as possible. >> credit suisse has been the target since 2011 of a u.s. criminal probe into whether it helped americans evade taxes. shouldn't this be priced in and expected by the bank's ceo? >> i think it is, they took another $425 million against this matter in their plea 13 accounts. they clearly are close to some settlement. on, there are 12 or 13 swiss banks also involved. they want to put it behind them, reputational he it is bad. >> is there a chance this goes to trial or gets settled? settling obviously makes more sense but it is very expensive. one has to ask, what the talks going on between the eu and the whether the du will say hold on, what is going on here? money beingot of extracted by regulators and we want to be clear this is fair. it is also calculated appropriately. it is dealt with in

at the same time that we're letting hsbc off with a total walk. again, nobody does -- nobody pays any individual penalty in that case. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2014] captioned by the national captioning institute --www.ncicap.org-- host: good morning a live view of the u.s. capitol. andpublican budget plan democratic alternative front and center at the house this week as lawmakers debate priorities. years ago when another congress passed one of the most significant pieces of legislation in the 20th century, the civil rights act of 1960 four. on thursday president obama will be joining predecessors to commemorate the anniversary. we will begin with

hsbc, all these brand names, they could be a target. >> we often take a look at the shanghai composites. there is a huge gap at times. that cap has recently narrowed as a result of this reform that's going to come in about six months. you see that overseas investors can transfer some discipline to the retail market in the equity space in china? >> absolutely. it is both ways. this is one way that would deflate the smaller companies in china. 40-50 timesading earnings. there are similar companies here or in the asia-pacific, probably 10-12 times earnings. we will see money come out of those highly expensive companies and come to hong kong. >> right. so in hong kong, what are your bets? what excites you most? >> i think the quality names -- they are not cheap, but there are some individual opportunities. secondly, if you look at the overall, the perception of china, it is gradually changing. >> that's the good news. that is the good sentiment. what are your concerns? >> the concern is people get ahead of themselves. , and 2007, and over the market collapsed, but probably because of other

what really stuck in my mind is that the same week that the settlement came out with hsbc, which i may be wrong but i don't think involved in the individuals being prosecuted. that same week there was a story about a woman whose boyfriend stashed his drug money in at a coffee can in her attic. and if i recall right, i think she was serving 15 years in prison. and so one involved a few dollars and the other involved hundreds of billions of dollars and it just seemed like the sort of thing that sticks in people's minds as to whether the justice system is not waited heavily in favor of the powerful. and i just want to encourage you to do all that you can -- and i understand that often it makes sense to go, when individuals are involved a lot to go after the individuals rather than the institutions for the reasons we are discussing, but it is important to our system in the united states that the powerful don't pay a fine while the ordinary person goes to prison. >> senator, you make an excellent point. that is one of the reasons why our smart one crime initiative has, at its base, the noti

. >> look, they along with others, rbs, hsbc, those were the five banks the fed didn't go ahead for thean. if there's mismanagement at citi to that regard, you'd have to say the same for the other banks who fell short, no? >> first of all, i'm on the board of the group holding company. i'm not on the board of the u.s. bank. this was the first time around for a lot of the foreign-owned banks. so i think everybody wants to meet fed regulatory expectations. everybody will work hard to make sure that happens. obviously i think your question related to the problems they were having in mexico with the $400 million fraud situation and the investigation reported today in the "new york times." i was responding to that. but clearly everybody needs to meet those stress test expectations and everybody should be working very hard to do so. >> yeah, look, there's a lot going on with these big banks. maybe it gets back to these questions about management and whether they are too big to manage to some extent. we know if there's one thing we've learned about the u.s. banking subpoena, it's that the bank

the hsbc purchasing manager'sen devil for april rose to 48.3 for march's final reading of 48. that's still below the 50 line. that 50 line separates expansion from contraction. this signals more economic weakness. the first quarter gdp slowed to 7.4%, its slowest pace in 18 months. >> back to u.s. markets. stocks rally once again to get closer to record territory after the recent little bit of whatever you want to call it, medium, intermediate, short term pull back. it was like all the other ones we've seen. shallow but steep. investors rushed in the health care and pharmaceutical stocks. the dow is now 0.7% away from an all-time high. the index added 65 points, up more than 100 for a lot of the session. it closed at 16,514. the s&p 500 gained just over 7 points. it closed at 1879. it's about 1% from a new high. that's up like 30 points from its december 31st close. the s&p 500 along with the nasdaq are on a six-session winning streak. the nasdaq added nearly 40 points, which is bigger on a relative basis. look at the futures at this hour, you can see -- they're not really say

at the same time we are letting hsbc off with a total walk, nobody pays any individual penalty that case. >> his book "the divide" explores injustice in america. gm ceo mary barra publicly apologized on tuesday for her auto companies faulty in mission switch in certain vehicles that resulted in at least one dozen deaths. the gm recall that started in february covers more than 2 million vehicles. with davidtestified freeman, the acting administrator of the national highway safety administration. run the house energy and commerce subcommittee, this hearing is 2.5 hours. >> i now convene this hearing. why does it take so long? ms. barra, if you would like to take your seat, please. thank you. this question is the focus of our investigation. >> i now convene this hearing of these customers told general motors that just by bumping the key with their knee while driving the cobalt it would shut off. in 2004 and 2005, gm engineers twice considered the problem and even developed potential solutions to fix it. but fm decide it the quote tooling costs and piece prices are too high and the quote non