ubs pleads guilty. for a second straight quarter, beating forecasts's japanese stocks rally. and ecb treat. i'm going to be talking about it throughout the show. i'm looking at futures pretty much dead flat. dax futures lower by 14 points. manus cranny has got your tuesday morning open. >> thank you for that. we are looking at a slight drop this morning. in paris down 2/10 of 1%.

ubs will plead guilty to manipulating interest rates.e are hearing more about the penalties and fines they are hearing. julie has the headlines. totality of the fines, $5.8 billion to settle with the u.s. five are pleading guilty to criminal charges. of the things you mentioned, citigroup, jpmorgan, royal bank of scotland, and barclays are pleading guilty to conspiring. is pleading guilty for libor. barclays also reaching a settlement with the new york financial regulators over the currency manipulation. barclays is also reaching a settlement with the u.k. regulator. in terms of getting a little more granular, and what we know right now, we will likely get more details from the various regulatory agencies on the fines, what we know right now about the us's department find specifically, or settlements, excuse me, citigroup has agreed to pay $925 million. million,will be $710 $550 million for jpmorgan, rbs, $309 million. out with theame details of what they are paying, it is paying a total of $203 million with the doj and 342 million to th

he was paid as a percentage of the ubs penalty.and his lawyers are arguing he should get all of the money that came in to the u.s. treasury from all the swiss banks altogether. >> you mention incredible highs and incredible lows. would you do 2 1/2 years to get $100 million at the end? >> that's the question. he did not know when he went into prison that he was going to get all this money. he had to sweat it out for 2 1/2 years in a federal prison which is not a lot of fun. a lot of people say i'd do that deal. i don't think i would personally. i have small kids. birkenfeld has no kids, never married so maybe it's a different equation for him. >> eamon thank you. fascinating story. >> you bet. >> up next we are "on the money." the woman whose life sparked a hollywood bidding war. why steven spielberg and others came calling for a photographer's war stories. and later a helping hand fortunate returning vets and their families from credit cards to higher ed to stoorting a bris. benefits for those who serve. behind the >>> life behind

ubs has already disclosed its exposure.y are paying more than 200 million dollars to settle a case involving interest rates. as i say, we will find out more. there is a news conference by the justice department coming at 10:00 eastern time. you can watch it right here on bloomberg television. it may take years to fix all the cars involved in the biggest u.s. recall ever. the japanese air bag maker toccata has agreed to double the number of u.s. cars being recalled to almost 34 million. those airbags have been blamed for six deaths. regulators say because of a shortage of parts, drivers may have to wait for years to get the cars fixed. stephanie: wall street's number one girl, elizabeth warren wants congress to play hardball on that asian trade deal in an exquisite interview with bloomberg tv, senator warren said congress should demand that president obama release -- release the draft of the deal before he gets fast-track approval authority. the president has criticized senator warren opposing the deal but says it was not pe

. >>> as an american working at ubs in switzerland, bradley feld held the feed -- the keys to enough accounts to crack open the confidentiality to shareholders and tax evaders. he went to prison for his part in the scheme and eventually he received a record $104 million from the irs for coming forward. he gave his first interview about his roller coaster ride of the past several years to eamon javers who has the first part of a whistleblower series. >>> so was it worth it at the end of the day. >> i would do it all over again. >> you would do jail again? >> sure. >> lose your career. >> absolutely. >> $104 million is a lot of money? >> it is a lot of money. but it is coming forward and doing something so historic. nobody had the courage to talk about it. >> he became intrigued by international banking while working at finance in massachusetts but never expected to become embroiled in the biggest tax evasion scandal in history. he moved to switzerland in 1994 to earn his mba and settled in geneva and got a job at credit suisse and bark liz and finally ubs. one of the few american as l

ubs will pay two fines. there are levels of guilt and criminal behavior, all of it overshadowed by speculation the jpmorgan, citigroup, barclays, and ubs, may pony up over $5 billion. those announcements could come today, sometime before christmas. what is the negotiation point right now between u.s. banks and justice on this. the reuters story last night clearly states that there is still a lot of discussion going on. >> we expect the settlement to be announced today. at this point the ink is pretty much likely dried on the settlements. it has gotten to be a complicated story. we first started looking at this almost 24 months ago when the investigation started. for ubs, because they had side what is a non-deferred prosecution agreement from an appealing interest rates back in 2012, they are now pleading guilty to that crime, as opposed to the foreign exchange. they have immunity on the foreign exchange. tom: i looked down yesterday on michael corbat of citigroup listening to mr. roach and of india. is he a

authorities are said to be ready to revoke this nonprosecution agreement with ubs. that agreement was made back in 2012. the move is so a can seek a guilty plea from the bank and hold it accountable. this was in a ground me -- an exchange for ubs promising not to commit crimes in two years and their cooperation obviously in another investigation. four x -- forex rigging. what is the bottom line to all of this? ubs will still be shielded from antitrust charges when it comes to the libor investigation. but it is still exposed to fraud charges. ubs is set to enter a guilty plea. we are likely to find out very soon where the settlements are. each bank, we now have a list of five, is expected to cough up at least a billion dollars each for the penalty. be facing the largest among the group. rishaad: more detail for that story during the rest of the show. more upheaval may be in the work said china's massive oil conglomerate. all part of a sweeping set of reforms for the industry. we have heard talk about this. what do we actually know about what is being considered? bloo

morgan, ubs, and others. the u.k. is loving the results u.k.- ukcesetf is loving the election results, it is up. communications director is leaving facebook for twitter -- leaving her for facebook. and julie hyman wants to look at the notable movers on this rally day. julie: yes indeed, and i want to bring you up to speed on breaking news that happened in the last hour, and that was bloomberg news reporting that a visa was in talks to discuss buying a visa europe that could be up to the billion dollars that is according to people with knowledge of the matter. the initial public offering in the united states, has visa shares spiking on that and the stocks are going off on the not too hot not to cold jobs report, and crude oil is up, as well as southwestern energy, and each is up 5%, and monster beverages was the worst performer of stocks today, and it has issues with coca-cola, however as a result of that, had to terminate partnerships with others and that resulted in pushing down its numbers. alix: thank you. greece will be on the agenda on mon

ubs today is a different firm with a different focus and senior management team. birkenfeld says he was vindicated when he received an enormous reward. >> the payment of $104 million was the largest of any kind in the country. >> his attorney says he deserves more, a percentage of everything that they collected from all swiss banks. >> should you get a billion? >> talk to my lawyers on that. >> two million? >> talk to my lawyers. >> it appears his battle is not over yet. >> he is on probation until november. he tells us he is likely to leave the country once he is from from the department of justice. >> he thinks he deserves more. >> he says he doesn't feel to anything more than the law requires. under e whistleblowing provision, you get a percentage of thing that you bring in for the u.s. he and his lawyers are arguing he should get all of the money that came into all of the u.s. treasury from all of the swiss banks all together. >> would you do 2.5 years to get $100 million at the end? >> he did not kn he w prison that he would get all of this money. he had to s

ubs is nearly up there at 4%.the cfo and said is this an urbana, is this is good as it gets and he said it is not that she was not sure this was not is good as it could get. there was consistent delivery across asia-pacific and europe. they are getting ready they told us last quarter to deal with pricing and i think this is possibly to do with the quality of deposits that you are bringing in which i found quite interesting. the quality of deposits they want to take in and that is something that they are looking at in terms of the pricing when they talk to clients. the investment bank, what a seller performance there. this is profit, the tax profit up 82% at 774 million swiss francs. the language they are using around the investment bank is they would say this they have reformed their investment rank and they have. they have cut back on that fixed income trading side of the business and their staff are used to turning over the inventory, matching up with clients and that is the critical part of the ib. they have a

the fifth bank is ubs based in switzerland and the others are citi j.p. morgan and the royal bank of scotland. and bradley birkenfeld went from whistleblower and now a twist in the final chapter of the whistleblower series. >>> after serving 2.5 years in prison for his role as a swiss banker hiding millions of dollars for wealthy american clients, bradley birkenfeld moved into a small rental home in new hampshire with no immediate plans for the future. a month later he got some life changing news. >> my attorney informed me that the irs whistle blowing office was going to grant me a large award. >> for $104 million. >> yeah. well they had taken taxeds -- taxes off the top. >> you learned that. >> the taxes off the top. >> it was vindication. and it vindicated me against the department of justice. you don't think they were happy to write you that check. >> they were pissed and i'm pleased. >> but he is still angry. he's on a quest to force the justice department to explain why it was so aggressive in prosecuting him but letting nearly everyone else involve

ubs will plead guilty.etta lynch says the damage was widespread. >> their actions inflated banks profits while harming countless consumers and investors and institutions around the globe. major corporations, including the thanks his own customers who relied on the market to produce competitive exchange rate. currency traders call themselves the cartel and used online chat -- online chat rooms to rig it. the discount retailer posted first-quarter earnings that beat wall street estimates. a.c.l. is working to get in the stores. the products sold especially well the last quarter. those first-quarter profit missed estimates. shares of the retailer are moving lower and lows could not fend off a home depot campaign offering in stored discounts and online promotions. time for biggest sales both of those retailers. the end of an era in late time television. closes out his career after 33 years of hosting. it is more than 6000 episodes. no word on hulu be his final guest. tonight's show will be full of surprises. ca

come, the u.s.o may rip up its settlement with ubs for interest rates. the bank could still be prosecuted for its role in the libor scandal. erik: and the deadliest job in america -- commercial fishing off the coast of alaska. we will look at what the government's focus more on regulating the boats and then protecting people on them. olivia: the price of crude oil is at its highest level so far this year and i could change of 10:30 a.m. eastern time when we got a look at weekly crude oil inventories. consumers are starting the second quarter off on a week note. sales were flat in april. it appears americans are using savings they might be finding to pay down their debt rather than splurge on big-ticket items. macy's is planning -- wait for we-- that whether -- bad ather. let's bring in analyst oliver chen. thanks for joining us. what is your reaction to these numbers? of 1%.is one/10 can you talk all of that up to the weather? oliver: macy's is a good bellwether. there were a few factors that macy's at play. the negative impact of tourism as well as the

manus: mark: -- the ubs situation, what are they being accused of? . >> they are accused of trying to work together to manipulate various foreign exchange rates. they are engagingly called the cartel. it was essentially the most senior foreign exchange trade in citigroup and barclays. they knew each other. they used to communicate about general business. at some point they overstepped the line. they attempt to manipulate a benchmark for an exchange rate. it was used throughout foreign exchange markets. >> you and i go back and forth about the legal issues. you get past one and another is uncovered. >> i think the banks will consider a kind of landmark because this is one of the most significant things to get over. it is looking into the foreign exchange market. it is never over. i think as a result of all of these scandals, there has been a process of cleaning up, changing market practices, the thing like a chat room people used to use. i would never say with these large institutions you will see a wrongdoing. mark: you hear of a guilty plea --jonath

. >>> yed you to bradley birkenfeld the ubs whistleblower and tonight we'll describe he was trained to rub elbows with the rich and famous and to get them to open swiss bank accounts to hide their wealth from the irs but an internal e-mail showed more. >> this is the three-page document that caused me to come forward and whistle blow. >> it is a memo detailed strict guidelines for ubs swiss bankers with american clients. and one that bradley birkenfeld said the bank quietly posted on the internal server without alerting employees. >> and you were doing all of the stuff that this document said you can't do. >> they told you to do it and paying for it. >> he felt he and his colleagues and clients were being set up. >> i went to my boss and i confronted him and i almost got physical because i grab -- -- >> physical. >> i grabbed him by the shir]. >> and he said don't rock the boat. >> he started hiding and copying the documents and he resigned and hired a lawyer and reached out to the department of justice and others. he described the d.o.j.'s response as luke warm as best. >> they poo po

profits doubling at ubs. manus cranny joins us. very busy morning for us.he stock on my screen and the market likes the number. manus: it does. a story of lower-cost and stronger trading and rebounding. for 2 billion swiss francs. -- 14 billion swiss francs. the best since -- the money coming from europe and asia and profitability of 82% -- up 82%. rejuvenated and revamped weather turning over inventory quickly is a critical point responding to customers' needs. the statement is operating and i know you like this which is one the bloomberg intelligence trading of 23%. so much for the u.s. peers. credit suisse are in a dust quite literally at 6.4%. this rebound in investment banking is delivering the profitability of 82%. capital building capital and overall reserve for litigation at 6.2 billion. are you and to the top of ripping the cost out of the business? good news on all fronts of the business. the jonathan: manus cranny of dating on the big word that starts with r "risk." what is next? manus: you bring in new money that is not that profitable. and i ca

tom: deutsche bank bank is as adamant about ubs -- as ubs is. are they hedging their optimism?tives to lock in the gains they have now or is it up, up and away? julian: it has been a reasonably good your for hedge funds. from that perspective, less hedging going on and more use for upside. if you look at it markets like china and the salon, you have to protect against the upside to a certain extent. tom: julian emanuel with us from ubs and we will talk about the use of cashier. brendan: you heard hans nichols say greece was pulled over and said "no, officer. i've not been drinking. what's the real deadline? let us know @bsurveillance. good morning. ♪ tom: good monday morning. greece spreads are wider but on the move. let's get to our morning must. brendan: the season of commencement speeches, that time-honored tradition of. when 22-year-old sit for three hours slightly hung over to think about their debt. in an and or to be a with cnn, bill gates spoke about why making $40,000 a year is different than what it's like today. >> overall it understates how much things have been imp

lower.n slightly ubs slightly higher. much more to come. scarlet: we're not done yet. ♪ scarlet: welcome back. alix: julie hyman has a look at the market spirit julie: records for the s&p and the dow after we saw that reversal not right after the fed minutes. it took a little while. some volatility right after they came out during we have seen a very narrow range for the three major averages. not just today but over the past several sessions. the dow is gaining about 14 points and the sv of about 3.5 thomas about our trading and records. most ofaq gaining the the three, up more than .3%. as we are seeing these games, one group has been doing dismally throughout the day. that is the airlines good we heard comments from the american airlines ceo about the competitiveness in the industry, emphasizing that american airlines is going to be -- insive in continuing competing with low-cost carriers. so what will that do to profits of these companies? we are seeing all of them come off, delta, american, southwest, jetblue, united, across the board i

case, with ubs coming ubs cooperated and helped the this program but they struck a good deal a few yearsgo, a nonprosecution agreement. the justice department has been cycling -- signaling it might carry over these old agreements if these banks continue to misbehave. that continues to be the case. we are reporting the justice department will likely pair up that nonprosecution agreement. it is all about overall behavior and not just per incidents. morgan chase,j.p. if this happens, what did be a first for ubs banks -- would be a first for u.s. banks? a strange way, it might provide some benefits to the banks even of the top executives will not like the fact it will be a guilty glee at the holding company level. it could ease some regulatory burdens that would fall on the guilty plea at an operating company level. this change the ethics investigation? will it continue to go forward? this is the first wave of major banks the justice department is dealing with. it will not be the last although it is clearly winding down. it is not in the growth phase. this is a significant endpoint. the stat

. >>> and the rigging settlement with ubs, a settlement after ubs vialed the deal.y targeting ubs here? we'll talk about that next. >>> who needs a backyard barbecue when you can get a burger hot dog and chips on one bun? that's what crammed into carl jury's american burger. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times of year. for all the confidence you need. td ameritrade. you got this. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman. >>> welcome back. four major banks, barclays, jpmorgan and royal ban

a stellar start to the year for ubs. first quarter profit jumps near nearly 90% after a strong performance. pimco loses it's crown as the world's biggest bond fund. they pulled $9.6 billion last month. a break down for mcdonald's. but credit suisse with a higher target price. >> saudi arabia's oil minister isn't blaming anybody in the collapse in the price of oil and has no fear about future fluctuates. >> i'm not worried about crude. nor will i try to predict what the price is. if i was to predict i would be somewhere else gambling. despite that move to the upside in yesterday's trade following the big gain on friday we're looking at a muted session on wall street. at least at this hour the s&p 500 down fractionally. we're in negative territory for the dow and nasdaq when looking at premarket trade. we also got some dovish commentary from fed president charles evans last night. he says it's not appropriate to raise rates until sometime in early 2016 citing weak q-1 data. also known as being a strong dove. yesterday inte

the banks involved here jpmorgan, city barclays royal bank of scotland and ubs, although ubs gets off a little lighter because they were the first to talk to anti-trust regular you lay dors. the attorney general says that these activities were widespread. let's listen to what she said. >> almost every day for more than five years traders in this cartel used a private electronic chat room to manipulate the spot markets exchange rate between gyros you gyros and dollars. they acted as partners rather than competitors in an effort to push the exchange rate favorable to their banks but detriment tall to many others. >> the bank of america also fined $205 million for their lack of attention in this story when it came to trader's activities. a lot of people will be hoping on wall street that we finally draw a veil over the story. moving you along, fines also for transocean. this company has reached a settlement with plaintiffs over the 2010 oil spill. the well was owned by them although, it was operated by bp who paid out the lion's share of the fines in this story. back to you. >> indeed. l

some of the biggest financial institutions including jp morgan chase, barkleys the royal bank of sc ubs will pay billions for manipulating the interest rate markets, one of the least regulated markets in the financial world and one of the largest, about $5 trillion changes hands every day. the traders from different banks didn't act as rivals but rather they worked together to rig the price of u.s. dollars and euros in a scheme that went on nearly every day for five years through 2012. eamon javers has more. >> deep inside of the posh offices of the major banks, in the private digital exchanges of the private traders was right ought of the mafiainity invited to join the scam. mess this up and you sleep with one eye open up. and if you ain't cheating you ain't trying. and yes, the left competition the better. and today that language caught up with the traders as new u.s. attorney general l lyn announced the massive setty traeders formed a group they dubbed the cartel. it is perhaps fitting they chose that name as it aptly described the brazenly illegal behavior they engaged in on a nearl

steven melanovich is an analyst with ubs.ant to reduce the buzz and demand because they couldn't fulfill the orders and maybe the fact that you can't actually get delivery on this thing for several weeks is causing people to sit back? how do we know that things won't rocket back once apple has supply of the watch? >> well they might very well. and clearly supply is having some impact on demand. but our ubs evidence lab archle watch monitor is finding that the google search interest if you will, in the watch, is only about 20% as much as the original iphone and ipad. and we also tracked it versus 30 other consumer electronic introductions over the last decade. it's also lagging those. not only is it lagging, but it's actually kind of deviated down in the last two weeks. so it's gotten weaker as we approach launch. now that could very well change once we get more supply in the market and we are still bullish on it longer-term. but this was sufficient for us to take down our next-year estimate from 40 to 31 million watches. >> s

ubs meanwhile says it is close on an investigation. ubs might face a $1 billion fine. claiming responsibility for the attack on anti-muslim event in texas. the event showcased cartoons of mohammed. many muslims feel that is blasphemous. two were killed after they shot a guard. the fbi said it was investigating one of the suspects for nine years. the streets of baltimore are calm. one week after writing following the funeral of a black man who died. there were false reports that police shot a man. troops are gradually withdrawing. president obama on david letterman last night incidents in baltimore and elsewhere are starting a new conversation about racism in america. president obama: a lot of things we have seen in ferguson, new york, and baltimore have been going on for a long time. we are more aware of it because if you see something on video, it is hard to deny. communications have improved and that is a good thing. betty: the president said a handful people cause problems for the community and police everywhere. the death of david goldberg, a mexican government off

ubs to have to pay about $50 billion.tured two men who will soon be losing their jobs. this comes a little more than two weeks before the final show. the president told letterman he knows he is not the first choice when it comes to getting guests from the white house. president obama: i know you like michelle a little more than me which is ok. [laughter] [applause] i assure you you're not alone but i'm not going to let her have all the fun. and mainly i came by to say goodbye to biff an d paul. brendan: the president told them when they leave their jobs, they can go to the local starbucks and swap stories. disney reports earnings and tom will sing the "frozen" theme song as he always does when we talk about disney. 8:30 a.m., trade balance data. 11:00 a.m. eastern, former arkansas government my coco become a in a surprise to no one, announces his presidential campaign -- former arkansas governor mike huckabee in a surprise to no one, announces his presidential campaign. tom: a weaker euro as crude hovers. greece spreads a

tom: ubs. how about a quick report? the euro advances over 1.14.chrystal with us in the next hours. bloomberg "surveillance." ♪ deputy leaders. america says we care. america's retail sales are tepid. does it extend to productivity within the united states? management lessons learned from general to major to first lieutenant. stanley mcchrystal on delegating. good morning, everyone. this is bloomberg "surveillance" live from our world headquarters in new york. it is thursday, may 14. what an interesting hour. two books. brendan: i'm excited about the whole hour. a lot of news to talk about. tom: top headlines. vonnie: investigators want to know this morning why that amtrak train was traveling at more than twice the speed limit. the crash killed seven people and injured 200. the national transportation safety board says the train was going 106 miles in our. -- an hour. >> maximum authorized speed through this curve was 50 miles per hour. when the engineer induced brake application was applied. the train was traveling at approximately 106 miles per ho

ubs is the first of five banks to enter into an agreement. others are expected to follow suit. >>> kfc is counting on a blast from the past to boost sales. the chain bringing back, there he is colonel sanders. hoping the world-face pitchman will stand out from the crowd. it coin sides with the 75th anniversary of kfc. they're balancing the throwback mascot with newly remodeled stores and new items. i wonder if they have a new biscuit recipe. >> you on don't care about the chicken on the mascot? >> i like the biscuit. >>> cancer charities accused of fraud. people opening their pocket books to fight the devastating disease. where that money was really going. >>> plus breaking a sweatover night. the first lady showing off her workout routine. listen up... i'm reworking the menu. veggies you're cool... mayo, corn dogs... you are so out of here! ahh... the complete balanced nutrition of great tasting ensure. with nine grams of protein... and 26 vitamins and minerals. and now with... ...twice as much vitamin d ...which up to 90% of people don't get

that way -- guy: ubs is find --fined. this as for other banks are said to be fined as well for fx manipulation. the french billionaire snapped up the sudden link for $9 billion. is time warner next. a great twist, liberty global john malone said a deal with vodafone would offer substantial synergies. vodafone surges. ♪ guy: good morning and welcome you are watching "the pulls." --"the pulse." barclays, rbs, city, and jpmorgan are all said to be ready to plead guilty. the link here is fascinating between what happened with ubs and the fx story. explain the connection. >> ubs is being implicated in both the fx and libel scandals. the ebs has good lawyers, or they are good at finding wrongdoing and fessing up quickly. so with libel, they were first to the door and he escaped criminal sanctions. here we are three years later, yet again they are caught up in the fx thing they were first in the door of the department of justice. ubs has avoided the scandal. they have not gotten off the hook completely, because the department ha

the fifth bank is insert based ubs. -- is a work based ubs. -- is zurcich based ubs.ron built cabinet. the closest political ally, george osborne in terms of renegotiating uk's european membership. great to have you with us. let's get to it. is this a good scenario that he has a majority of 15 or is he channeling john major from 1992. >> guest: it is very much 1992 all over again. the majority is not quite as big as it was. while there may have been a bit more spirit of rebellion because they were coming down from a bigger majority to a smaller one, rather than actually going from a coalition to a majority. i still think many of the same problems are there. as luck would have it, down the road is europe again. mark: they were helped in the early 90's -- in the early 1990's by the disaster. the eu referendum is looming. how will david cameron tiptoe around his eurosceptic mps. how will he sell it to them and the country? >> guest: it is going to be very difficult for him. he will have to do a term offensive among european leaders. we saw that he began that already over

but overall i think ubs will be pretty cleezed as the share price suggests. they can try and draw a line under this themselves and focus back on core strategy rather than these fines. >> the big one to watch out for is barclays. we could expect a fine announced over the next hours or days because they're also settling with u.k.-u.s. regular you laytors. we're live in barcelona discussing the use of uav's sometime police force. >> and etsy reports a massive loss. that's after the break. >> going from bad to worse, what made this auto riders day turn from a dream into a nightmare behind the wheel. stay tuned to find out. it's so shiny. i know, mommy, but it's time to let the new kitchen get some sleep. if you want beautiful results, you know where to go - angie's list. now everyone can get highly rated service even without a membership. you can shop special offers or just tell us what you need and we'll help you find a local company to take care of it. angie's list is there for all your projects, big and small. pretty. come see what the new angie's list can do

ubs is the first of five banks to enter into an agreement. citi group, jpmorgan chase, barclays and the royal bank of scotland are all expected to follow suit. >>> kfc is counting on a blast from the past to boost sales. the chain bringing back, there he is, colonel sanders. hoping the world-famous pitchman will stand out from the crowd in the competitive fast food industry. the return of the colonel coincides with the 75th anniversary of kfc. they're balancing the throwback mascot with newly remodeled stores and new items. i wonder if they have a new biscuit recipe. >> you on don't care about the chicken or the mascot? >> i like the biscuit. >>> when we come back you're not going to believe this. cancer charities accused of fraud. people opening their pocket books to fight the devastating disease. where that money was really going. >>> plus, breaking a sweat overnight. the first lady showing off her workout routine. listen up... i'm reworking the menu. veggies you're cool... mayo, corn dogs... you are so out of here! ahh... the complete bala

let's move on and talk about what is happening with ubs.lleague manus cranny is in zurich and has been talking to the cfo. almost doubling this time around. walk us through the figure. manus: take a look at the five year chart free it is up nearly 7%. the market was looking for nine. profit of 82%. look at it that stock, not as high since 2008. best-performing stock on the smi 2015. there is no data to compare. the investment bank reacting. delivers to the customers costs are down preserves. i caught up with the cfo today, tom. i asked if it is as good as it gets. tom: we are certainly really pleased with a strong quarter a really solid start to be year. all of our business is performed well in what was a challenging environment. 13.4% and greater than 10 percent target and i think it shows of the benefits of having a strategy that is clearly defined and one defined early and one where you are disciplined execution. i'm sure it is not as good as it gets a but it feels good. manus: the best quarter since 2008. the quality of the new money co

amy: ubs is also expected to plead guilty to charges and pay a $500 million fine. the justice department is voiding a previous non-prosecution agreement with ubs over its violations of the terms. no individual bank employees were hit with criminal charges meaning no one will go to jail. we'll have more on this story after headlines. nebraska lawmakers have voted to abolish the death penalty. a measure approved wednesday would replace lethal injection with a maximum life sentence behind bars. republican governor pete ricketts has promised a veto but state legislators are expected to override it as early as next week. if the override prevails nebraska would be the first conservative state to ban the death penalty in more than four decades. republican senator rand paul staged a 10 hour filibuster-type action on the floor wednesday to protest the extension of bulk data collection by the nsa. the senate is set to consider the measure before the patriot act before expires on june 1. >> there comes a time in the history of nations when sera and complacency allow power to

ubs will plead guilty to fraud and pay a $203 million fine for venture rate. bank will also paid $42 million to the federal research related to its foreign exchange commission. the justice department expected to announce similar agreements. >>> the st. louis federal reserve website hacked. visitors in late april were redirected to a phony site looking exactly like the st. louis fed. they were lured to an official looking site. when they attempts to login there, experts could get their user names and passwords. >>> "early start" continues right now. >>> the largest auto recall ever carrying air bags. takata admitting. finally admitting its product is defective. can be linked to five deaths and more than 100 injuries we're live with what you need to know this morning. >>> does the white house need a new strategy to fight isis? isis gaining new ground in iraq. we're live there with the latest. >>> and information on what may have caused a deadly biker gang brawl in texas. good morning, welcome to "early start." nice to see you, everybody. i'm christine romans. >>

ubs clearly broke probation and that is why they had to take a guilty plea.he entire street has guilty pleas. is that type of enforcement on wall street you know, basically getting diluted? what's the point of doing this if there is not any real ramifications? i understand the justice department has to do something. is there a way to police these corporations in a way that makes sense and can deter bad behavior? is anyone expecting any ceos on the banks to resign? my guest and what i have been hearing is no. as long as the shares are good, shareholders are happy. tom: citigroup is in the biggest trouble, they are the ones with the further story, do you agree? keri: i think all of the banks are working things out. investigation after investigation. brendan: do you have any sense that the culture has changed? that is the word we keep hearing, cultural change. is anything driving it? keri: on the one hand, the banks has added enormous he mounts -- enormous amount of staff and resources to compliance divisions. attorneys, officials -- everybody that can help them

ubs have cut their ¥240 -- toe from 170 ¥40. outysts say time has run for sharp.re is doubt in the market. rishaad: thank you, grace. we will take a look at what is going on in china with the people's bank of china. it is said to be instructing other banks not to offer high deposit rates even though it raised the ceiling. that seems to be the latest sign policymakers are struggling to stimulate what has been described as a altering economy. stephen engle's looking at this. people--stephen: familiar with the situation says we may have to take this with a grain of salt because of the slowing economy. this is what we know. thef monday, the pboc for third time since november, cut the key lending rate and the deposit rate but raised the ceiling, allowing banks to raise rates to attract savers and give them a better rate on deposits. but we are learning from people close to the central bank that pboc is instructing banks to hold off on setting their own deposit rates. we know the pboc in the past, including the governor, has said that deposit rate reform and removing th

is doinghis eerie, ubs this in part because it is an enormous business opportunity for them.f the big banks responding with their wealth management divisions to try to top this? over the years, i have seen a tremendous uptick in terms of resources private banks are putting behind reaching out to new customers, keeping the old ones, particularly as women are amassing more will. also trying to be conscious of millenials. there about to have greatest wealth transfer the world has seen in the next couple of decades as the self-made billionaires transfer their wealth. that is one thing they have tried to do, reaching out to your customers. -- collins,y custom thank you for being here. a lot more to come in the next hour. including from your toilet to your tent. the california water crisis may be pushing them to recycle water in ways that may be hard to swallow. how california is coping with the drought, next. ♪ . . good morning. it is 11:00 a.m. a new york. welcome to the bloomberg market day. buyter munication is was to time warner. is the price right? million home. what does all