it can also impact capital ratios of bnp paribas. we will have to see how much when the bank reports the next earnings at the end of july. and we will have to check capital remained strong enough to pass the next round of ecb stress tests. it could keep weighing on the share price. as you can see, the share price has been impacted, especially since february, when the bank announced that they had provisioned more than $1 billion for the case. at the time, they told me that the provisions could be much higher. since mid february, the shares of bnp paribas have already lost more than 16%. finally, investors could also have bad news on dividends, according to the wall street journal on friday. the dividend of bnp paribas could be cut or even suspended for up to two years. share.id 1.5 euros per obviously, that would be a big hit for investors. >> thank you very much. >> a warning for the world central banks read the bank of international settlements as they should not delay exiting from emergency policy measures. in its annual report, em

according to the french news channel, the ceo of bnp paribas the employeesto of bnp paribas, warning them that mistakes were made and that they will be sanctioned heavily. one of the reasons for the size of the fine, according to bloomberg sources, is that bnp paribas did not fully cooperate during the investigation. as you were saying, the eu saying commissioner was this morning that bnp will be able to handle this fine. >> that brings us to the next bit of the conversation, which is how are they going to be able to handle the fine? what are the consequences of this and potentially losing access to the dollar system? actually one of the biggest concerns for the future of bnp paribas, how many clients they could lose over this ban on clearing transactions in dollars. a small victory this morning. they managed to negotiate, according to bloomberg sources, six months, ban by meaning it would not come into play until 2015. they could prepare for this ban in order to be able to clear their transactions in dollars. of course, the shareholders will end up paying much of the cost of this. t

sanctions over bnp paribas and french arms sales to russia. hans nichols is back from brussels, in berlin today to tell us more. how do we know that dinner was not entirely a sedate affair? >> because french officials gave a readout of it. hadnly know what hollande for dinner, sea bass. left unknown to history what president obama had. obama clearly defended his position. on bnp. position paribas, the justice department looking at $10 billion of fines. andlso chastised hollande said don't reward rusher with warships that are scheduled. you don't want to reward bad behavior. here is obama's defense when hollande pressed him about the justice investigation. >> my answer on the banking case is short and simple -- the tradition of the united states is that the president does not meddle in prosecutions. we don't call the attorney general. then't pick up the phone and tell the attorney general had to prosecute cases that have been brought. i do not push for settlements on cases that have been brought. >> the size and scope of this spat over bnp pari

bnp paribas has already set aside more than $1 billion. february when they first talked about that case. they only told me that provisions could be much higher and shares since then have already lost about 15%. the shareholders will of course there much of the cost of this. this could also impact dividends. according to the wall street journal on friday, dividend could be cut or even suspended for up to two years, which would be a big hit her shareholders considering bnp paid about 1.5 euros per share for dividend last year. oncould see an impact capital ratios. we will know more about this on july 31 when the bank reports earnings. one analyst we talked to said that capital ratio could go down from 10.6 to about 9.5% this year. >> caroline, we will leave it there. thank you very much indeed. we are expecting that announcement later on today. let's get more on the story. jesse westbrook joins us now. he covers financial crime in europe. we talked about the bank liquidity, what this is going to mean for bnp in terms of ongoing operations. t

for being too harsh on french bank bnp paribas. tophat note, new york's banking regulator is said to be pressing bnp to dismiss its chief operating officer. authorities are said to be seeking the departure of another executive and around 12 employees could also be on the list. that and a potential $10 billion fine are part of the settlement negotiations with the u.s. over alleged sanctions violations. economists surveyed by bloomberg estimate 250,000 jobs were added to the american workforce in the month of may. again of at least 140,000 would being payrolls above the prerecession peak. right, let's get back to another bloomberg exclusive. publicis'chief executive maurice levy says he will have to make a few acquisitions after the collapse of the planned megamerger with omnicom. he explained why the deal fell apart. >> the issue between the omnicom dople has very little to with the americans and the europeans. it is differences between two companies and also may be some hidden agenda. the publicis-of mnicom merger has not happened

bnp paribas agrees to a number with u.s. authorities and a press conference will be held later today. >>> and a rivalry takes a new twist with a sex tape involving the firm's top china executive was the catalyst into the invest. >>> the eu approves a $1.7 billion line to help bulgaria to help boost the country's financial system. and this guarantees a savings following a run on two banks. >>> and new data out today shows a flurry of deals has led to a huge surge in global activity in the first half of the year. >> you're watching "worldwide exchange." bringing you business news from around the globe. >>> we've got the latest crossing now from the eurozone inflation data has crossed at half a percent. the market consensus was up half a percent as well. this is the latest from the eurozone. this is a market that is closely being watched. there's a break down on italy over the last couple of secondes as well. italy is plus .10% month on month. so it does explain to you how there's a divergence occurring across the eurozone. the

. >>> france's finance minister urges authorities to push forward with a resolution to the bnp paribas probe, this as the latest report suggests the bank will pay between $8 billion and $9 billion to settle. >>> and aceos is back online. the fashion retailer gets back to business after a warehouse fire over the weekend, but the firm says it's fully insured. shares pair losses. >>> well, a warm welcome again to "worldwide exchange" this morning, a bright, early monday morning. we do have some further pmi data out this morning, too. we had france and germany already this morning. now we've got the composite pmi coming. it was estimated at 52.8. it's coming in right now at 53.5. that's for june. so, compared to the estimates pretty much in line with forecast, but the pmi manufacturing estimate at 52.1, manufacturing coming in at 52.2, so slightly better on the manufacturing. on the services, too, it's come in at 53.2, bang in line with estimates, of course. and we did have france and germany out this morning. germany pretty much in line as far as the manufacturing is concerned, weaker on

regulators harshened as the spat over the fine for bnp paribas looks set to hit nearly $10 billion. jules is there in the old location of brussels. it's an old one for you, jules. >> yes, i'm used to this. g7 meeting later on this evening, in particular, the first time in 17 years that russia hasn't been present. you've said they've been excluded. people here i think would argue, the officials would argue that russia excluded itself with its actions in crimea. that point is moot right now. the message is as far as they're concerned, on the foreign policy front ukraine tops the agenda right now. of course, vladimir putin not present but very much setting that agenda as far as their process or movements in the ukraine, the influence in that region is concerned in particular. as far as its crisis is concerned, diplomacy dialogue has to be at center stage. the likely statement from g7 to say we're still ready to apply additional sanctions if they're required in this region. when i spoke to officials yesterday, they acknowledged the steps that russia is making, the softening perhaps of t

you are talking about bnp paribas at the moment. they need to get that profit going, and that could be a problem as well. it could also affect the money markets. so they had to dip their toe in the water. it will be a very small deposit rate, fractionally -30 >> very quickly, how unified is the european central bank panel behind president druggie -- behind president draghi? to ratenk when it comes cuts, bundesbank is on board. maybe they are on board with some sort of long-term refinancing operation that will force more liquidity into the system. but the european banks do not need liquidity, they need capital. that is the problem here. it is when we get off asset per juices that i think -- off asset purchases that the problems start. toe sort of buying of small medium-size loans -- maybe that would work. i think we are on board, the is there, but beyond that i think druggie will have problems. >> any idea about security purchases by the ecb? stage, i think i see what you're talking about with liquidity operation. like the bankheme o

bnp paribas to that extent. cannot penalize bnp paribas to that extent. president obama says he will not get involved in a doj or new york state attorney general issue. >> a bit of a mess right now. they are negotiating that $10 million fine right now. kindest man eric cantor says he would step down as -- cantor says hec would step down as house majority leader. the parties scrambling to replace him. peter cook is our chief washington correspondent. peter, who is likely to step into the void here? there are 3 candidates right now that have emerged as the most viable contender. kevin mccarthy of california, number three in the house i s pick tocantor' replace him as majority leader. other names include pete sessions of texas and texas hensarling, bothn of them from the more conservative side. it is mccarthy who has the edge simply because he is part of the leadership right now. which this is happening means he has more infrastructure and immediate ability to harness the votes he needs. the real contest will be in november after the elections. there is no g

is stepping up the pressure on american officials to reduce the potential fine for bnp paribas. the penalty for skirting u.s. sanctions could be as high as $10 billion. the foreign minister says that amount could hurt negotiations for a transatlantic trade he'll. >> bnp paribas has elicited the support of a powerful ally -- the french government. france lost largest bank faces fines for violating sanctions between 2002 and 2009 -- france's largest bank. the government has rushed to the bank's defense. they fear that fine would be unreasonable, warning that talks on a transatlantic free-trade deal are at risk. >> this treaty would be a positive development for trade. but it can only exist on the basis of reciprocity. obviously, action was taken aainst a european bank in unilateral matter without reciprocity. it could have negative consequences. >> it's unclear if anyone will take heat in washington. president hollande said he would raise the issue over dinner with barack obama on thursday, but the u.s. president dictated it is a fight he will not meddle in. >> i do not pick up th

. >>> the french government weighed into the bnp paribas probe. a potential $10 billion fine is unreasonab unreasonable, it's being said. >>> chancellor george osbourne is told to reign in his flag sh ship. >>> and the spanish jobless rate falls in may. it's the fourth month of declines but 4 million people are still unemployed. inflation numbers are due in, which are key for the ecb. >>> you're watching "worldwide exchange," bringing you business news from around the globe. >>> hello and a warm welcome to today's edition of "worldwide exchange." it's the first or second trading day of the month of june. and as we start today, the u.s. president barack obama has arrived in warsaw. poland is his first stop on a four-day tour of europe. today he's taking part in a celebration to mark 25 years since poland emerged from the communist bloc. the white house has said u.s. will hold up poland as an example in ukraine. he will also meet the new president of the ukraine. now, while that is going on, the gas companies of ukraine and russia are considering a

bnp paribas under pressure. a u.s. regulator is pressing them to release top executives over sanction violations. hans nichols joins us with more. it looks like heads are actually going to roll. the top regulator of banks for the state of new york, that is what he wants to see happen. that is according to people familiar with the matter. 12 executives he wants out, including the chief operating officer. this is in addition to the $10 million in potential -- $10 billion in potential fines. there is a report from reuters that it is up to 16 billion dollars. french officials are glancing at that amount and wondering what it will do to not only help the bank, but the overall systemic healthiness for the european banking system. this is an argument that francois hollande made to president obama last night. obama said going into the meeting that he was going to give a stock response, that he does not have actual control over the department of justice. listen to how he put it read >> my answer on the banking case is short and

the co-ceo of bnp paribas is stepping down. u.s. regulators are investigating the french bank for breaking sanctions. bnp may face an historic find. letting veterans seeking care from non-v.a. providers could cost taxpayers $50 billion a year. lululemon cutting its forecast even though first-quarter profits beat estimates. recap, sales numbers will be out in a half hour, a much has been made about the dependence on e-commerce. they still have a lot to do on improving the experience. julie hyman has more on this. part of the problem is a lot like what we do in the stores -- we are browsing online. >> except we do it at a higher rate. forrester research put out a report looking he -- looking at the name reason why people abandon their e-cart. they say shipping and handling is too high. they're just not ready to purchase for whatever reason. i spoke to a retail consulting group yesterday, and there are a lot of reasons -- your online, cries,ne rings, the baby whatever it may be, and you do not get back to it. also, 22% wanted to compar

parkly's and bnp paribas are both in a recovery. meantime, eu association agreements have been signed by ukraine, georgia and monthly dove ya. julia, no one thought russia would be throwing a party for the former soviet nations, but what do you make so far of the response from the russians? >> i have to admit, we have expecting some kind of response. we have how negative the impact would be. the question is whether or not they pull back the preferential treatment ukraine gets right now. he spoke to the georgia prime minister and he described its as a dream come true. we discussed the pressures of russia and i said how do we put further pressure on russia regarding the ukraine smp. >> dialogue is the only solution out of this. otherwise, there is no other -- it's dialogue. >> so do you put pressure on this despite the fact that the separatists aren't abiding by it? >> well, we didn't have a chance to talk about this, but i know that they're seeking some solutions and i think -- i wanted to repeat that the dialogue is the only, you kn

against pushing ahead with the $10 billion fine against bnp paribas. he has made the government's first public comment. he says the $10 million fine could hurt trans-atlantic trade talks. linking this to something larger. he says it would be completely unreasonable. the backstory is u.s. regulators want to find them for breaking sanctions. say u.s. regulators. is it true? is a washington regulators or new york city type regulators jacob there is a whole set of players in this. >> that is a good point. this is potentially $10 billion. five quarters worth of profit. 10,000,004 bnp paribas is a bigger percentage of its profit. makes 20eve jpmorgan i -- 25 billion per year, so cap the years profit. this is one and a quarter. in other words, the french saved we understand why you are unhappy with what happened but why are you penalizing them this meeting g-seven leaders in brussels to consider additional sanctions on russia. tosident obama traveling brussels from poland. g-8 s supposed to be a meeting but decided to boycott sochi after the annexation of cri

attorney general eric holder said bnp paribas went to elaborate lengths to cover its tracks and deceive u.s. authorities. late today the bank said it deeply regrets the misconduct. >> three bodies were discovered today in israel, and appear to be those of three israeli teenagers kidnapped a little over two weeks ago. they were actually found in the occupied west bank after a massive search by israeli forces and holly williams has details. >> reporter: the bodies were discovered under a pile of rocks north of the town here hebron in the west bank. the three teenagers all of them seminary students went missing while hitchhiking from the jewish settlement. one of them naftali frenkel was a dual u.s. citizen whose mother made a plea for their return. >> we love you, we miss you, please be strong, hold on, be strong. we love you, we want to hug you again. >> reporter: the disappearance sparked one of the biggest security crackdowns in a decade as israeli forces went house-to-house in areas around hebron, and arrested more than 4-- 400. that lead to clashes with palestinians which left five d

bnp paribas could face a fine of more than $10 billion. u.s. authorities are calling for the french bank to fire a part of its management, including the deputy c.o.o. who announced he would step down. the new york financial services department is also asking bnp paribas to fire the head of compliance on the internal controls in north america between 2005 and 2007 and is now a senior adviser to the top management of the bank. and also the u.s. authorities. we talk about this before, would like the bank to plead guilty, which means bnp paribas would lose for a short period of time. it's the fifth largest bank in the world when it comes to dollar clearing. and according to the head of the french central bank, the probe could threaten the global financial system. >> certainly feels like it's opening pandora's box as far as the charges are concerned. we'll catch up with you later on in the show. >>> now, still to come. trying to boost italian trade as he continues his asian tour. but just how successful have his efforts been? find out right after th

is co-coo of bnp paribas stepping down in the midst of the investigation. he will leave at his own request. askedp bank regulator that he be dismissed. authorities want bnp paribas to pay as much as $10 billion to settle claims of illegal dealings with iraq and sudan. big implication overseas. this could affect oil prices around the globe. al qaeda has seized control of the second largest city in moving closer to baghdad i the day. here is how this is playing out in the oil markets. you can see the response. in a moment you will hear from an investor who remains bullish. first, hans nichols brings us up to speed on what is happening. the latest is u.s. warplanes made from northern iraq. that gives you an indication of how serious, how desperate the situation may be there. that comes from the iraqi oil minister in vienna for an oil meeting. we do not have that independently confirmed from the pentagon or u.s. government officials. here are the cities that have fallen -- hussein's hometown. the oil city has always been a ivided city, arabs, kurds, that appear

what has changed in new york is bnp paribas is front and center in new york. ts go on.a tom keene, thank you very much indeed. >> we have another angle for you on travel. a new deal worth $1.7 billion for dufry. ufry's ceo joins us now. this is a heavily fragmented sector. this is a very big acquisition. are we going to see a rollup now? we going to see greater consolidation in your business? >> good morning. thank you for the interview. coming to your question, yes, the sector has a need. we need to consolidate and we have been a consolidator for a number of years. in terms of size and strategic positioning. we believe it all made -- may be transformation for our industry. we will have a market share of 50% in airport retail. i think the consolidation will continue further. it is not the end of it. it is clearly a step. >> you will be funding this acquisition by selling shares and doing it with debts as well. to bey investors seem liking the idea of consolidation in these markets. you will be in 20 countries. you will be selling more shares, more supplier. yo

the too big to fail, bnp paribas beleaguered, scarlet just covering that. bank of america has a set of fines. has a headache this morning. then there is deutsche bank with some challenges to their trading business as well. liam cohan is a confusing editor, author of books on bear stearns and goldman sachs among others. it does not end. what is the effect of these fine? they have become a blur. here, $13 billion there. do they have any effect? >> they certainly have an effect on the coffers of the treasury, and they are definitely an implementation of what eric holder, the u.s. attorney general, had written about in a famous memo, that this is the way to settle with these big banks. this is the way to move forward with these big banks to get them to settle as opposed to indicting them and putting them out of business. it all behind get us. it does leave us all very unsatisfied, looking forward to accountability. but it does get this behind them . >> when this is settle out, will there be ramifications for the american banks as we go after credit suisse and b

like you said, their clients are mcdonald's, the bank of china, bnp paribas. other customers are coming online for electronic payments. this market is really expanding. a want to be europe's largest company in electronic payments and they want to spend one billion euros on acquisitions. you might see them coming back to the market over the next couple of months. >> it is a very fragmented market. overall?t the market sincehas been the busiest 2006, 2007. every company that feels like they have a business case is trying to go public. just last night, we had another company say that they are not going to do their ipo. comings a lot of supply in, not so much demand. >> thank you very much. let's bring you into the conversation on the theme of ipo's. people talk about ipos and the data says there has been a lot of them. they also talk about indigestion and markets feeling like quite a lot of this. >> on this very show, i forecasted m&a would pick up and it certainly has. the magic sauce that was mixing was business confidence. another comp -- consequence of greate

prosecutors on france's largest bank bnp paribas. they say it is disproportionate, it's unfair. president hollande has promised when he meets with president obama this evening to bring up the issue. president obama earlier in the day said it's not his role to get in the way of the investigation. meanwhile, president obama expressed his disappointment that the french decided to go ahead with the sale of warships he put it, just as the international community is trying to isolate russia. two meetings that we are not sure will happen but would obviously be important if there was any sort of de-escalation in ukraine, that is president obama and president putin. they will be at a lunch together here in normandy. both sides have said they would talk but no formal meetings organized. of course, the russians want shouldlation in ukraine, sit down with the president-elect of ukraine. there's a possible meeting scheduled for that as well in normandy tomorrow. >> ryan chilcote reporting from normandy, thank you. up next, harry potter is known for his bravery but apparently he can also help

bnp paribas would say, it is france's largest bank. it is twice the size of deutsche bank. twice the size of credit suisse. this is a big bank. follow bloomberg television for that headline. >> big news for veterans. president obama will name the former ceo of proctoring campbell -- procter & gamble the head. he's been five years in the army. if confirmed, he would replace eric shinseki who resigned over failures of medical -- you remember what people are talking about allegations that records were forged to cover up the legs. the da services more than 8 million vets the year. the white house on friday says there was a corrosive culture, lack of accountability and they're hoping by bringing in a professional manager that he can change all of that. >> it will be interesting to see. it is a huge task. >> he is 61 years old, spent four years at png. during that time, stock prices rose 51%. >> interesting, to say the least. there it is. what else do we have? >> iraq. the al qaeda breakaway group ruling really everything in the area has to cleared an islamic state in areas that

one of bnp paribas' coo's stepping down. the u.s. had been pressuring the bank to dismiss georges chodron de courcel. the bank has been investigated over sanctions violations and faces a fine of up to $10 billion. george osborne getting tough on people who abuse markets. set to criminalize the manipulation of currency, commodity, and fixed income benchmarks. he speaks later alongside mark carney. at how thea look european markets are trading. let's get over to caroline hyde. >> a mixed trading picture. spain trading higher, france trading higher, germany higher. a little bit muted ahead of key u.s. data. retail sales set to improve. expecting u.s. jobless claims to improve. yesterday we fell out the six-year highs in europe. now, pausing for breath. let's get over to the industry groups. technology's standout performer. ers trading lower, selling the likes of anglo american. keep an eye on the industry groups. just staying in the green. one industry group that is franceting with m&a is and telecoms, the fight is on for whether or not

bnp paribas is set to plead guilty to criminal charges in ,he u.s. over allegations alleging violations of sanctions. that is according to people familiar with the matter. the french bank could be fined up to $9 billion, the biggest ever penalty on a bank. bnp paribas allegedly hit $30 billion worth of unapproved transactions between 2002-2009. the international organization against money laundering says japan is not doing enough to stop such illegal activity. the financial action task force says it is concerned by japan's continued failure in dealing with the problem. the group, which is sponsored by the oecd, calls for necessary legislation to halt money laundering in the country. no singleesident said nation should dominate international affairs. sheesh and pings says it is an approach doomed to fail and that china would never seek such a role, no matter how powerful it becomes. beijing is seeking to end decades of military dominance by the u.s. and the asia-pacific. last month, washington said china was destabilizing the region with its dispute i

and barack obama says he will read about a possible fine for bnp paribas in the paper just like everyone else. it could end with a deep penalty for the french bank. some are pushing bnp to pay $10 billion in sanctions. the french government says that would be overboard. authorities, or the backing authority in new york state to be specific, is asking a senior executive at bnp as part ofstep down this ongoing investigation and as part of the ongoing talks between the u.s. authorities and reach abas until they settlement that the bank violated sanctions. over to you. >> next, it is time for web news. >> hello there. we will be taking a look at some of the stories making the online headlines. coming up on today's show, peaceful protests against the military coup in thailand. egypt is react to government plans to tighten controls on social media. the three finger salute from the hunger games movie suggests it has become something of a symbol online and on the street in thailand where hundreds of protesters are showing their opposition to thailand's military leaders. they took over in a coup

david: you may have noticed breaking news headlines from bnp paribas, the french bank. they pleaded guilty to two felony counts. we're seeing a lot of action from the u.s. justice department and other federal and state agencies considering what they have done. two parts of conspiracy that they have pleaded guilty to and they are paying an $8.8 billions fine. now there is a press conference by the department of justice at 5:00 p.m. in about 45 minutes, 40 minutes from now. that may or may not have to do with this particular action but we'll be monitoring that for you coming up. again, two counts, two felony counts pleaded guilty to by bnp paribas. $8.8 billion. >>> meanwhile everybody is talking about the jobs week. we get the june numbers out on thursday. of course not friday because of the july 4th holiday. one. nation's most respected economists has come out with a blistering criticism of government policy towards the unemployed which he thinks is actually making matters worse. we talk to that economist to find out how to fix our broken labor market. liz: social media

and the market seems to be more positive in terms of outlook for bnp paribas. the shares are outperforming on the comments from the finance minister. it told europe radio this weekend that the government has made some progress to want more equitable sanctions without providing further details on what equitable would mean. and it also called for a quick settlement because the uncertainty is not good for the french economy. so in the end, we expect bnp to pay less than reported by the press recently and perhaps we would hear more in the coming days. bnp will still face a ban of the u.s. dollar clearing activity, but would not lose its banking license in the united states. and that would be obviously great for the french bank. >> thank you, stephane. >>> we have further comments from ukraine's energy minister guaranteeing reliable gas supply to yukranian xlints. they are reducing the gas supply to zero. they will also continue to supply gas to european customers. that's the situation right now still trying to reach a deal. >>> still to come on the show, will it be

the french foreign minister warns against bnp paribas does face sanctions or a fine rather but he says total penalties against bnp must be fair. this is a very interesting comment. he says it would be shocking to see a french ally and friend twisting u.s. justice. very harsh words from the french foreign minister. >>> so just how much economic justification is there for policy action from the ecb today? unemployment may have edged down in may but it remains near record levels. business activity is still comparatively weak. most importantly, inflation has hit a four-year low well below the central bank's own target. how far will mario draghi go to boost the recovery? there's one big bazooka he could fire, quantitative easing. anyone hoping for this is likely to be left disappointed. in its absence we'll get measures that might cause far less of an explosion, these include a cut to the refi rate, the ecb could go where no major central bank, except for the danish central bank has gone before, that is to charge banks for depositing their money. or purchases of asset-backed securities, to

bnp paribas essentially makes history in the wrong ways for being penalized with the heaviest, harshest penalty, criminal penalty, i should say, in american history, dwarfing previous amounts. all of this to do with transactions they hid from the u.s. involving countries like listed by america. >> thanks very much. another legal ruling today. the u.s. supreme court placed limits on contraceptive coverage required under the new health care law. the court ruled 5-4 that some companies with the religious objections to not have to include certain types of birth control in their health care plans for female employees. the white house says the ruling will jeopardize women's health. i'm joined by david willis. how significant is it? >> it is significant. about 16,000 people work for the companies that brought the case before the supreme court. potentially, this could open the way to claims by other religious affiliated nonprofits, catholic hospitals for example, to bring similar claims against the government. what it means as far as the affordable care act is concerned is it is a blow, but pot

. -- bnp paribas could be fined as much as $9 billion for either dating sanctions against iran, sudan, and cuba. let's see how the markets took that news. our man at the frankfurt stock exchange has this to say -- >> it is stories like these that people here on the frankfurt floor can do without. corruption, manipulation, fraud -- it is damaging to the image of every market participant, and if there is more strict criteria, regulation for the markets coming out as a result, then that is a factor for everyone else, too. of course, people here are also getting the feeling, they say, slowly, that the american authorities are pinpointing european banks more than their own u.s. banks and giving billions in fines and taking that money from europe. european banks, the losers this day. the dax also a loser, giving way suddenly in the afternoon. traders here not really finding a plausible reason for exactly just that but saying because of ukraine and iraq, investors are getting increasingly nervous. >> the japanese car company toyota has unveiled a new car that is powered entirely by hydrogen.

bnp paribas said to plead guilty to criminal charges in the u.s.. all of this according to a person familiar with the matter. allegedly hiding $30 billion worth of unapproved transactions between 2002 and 2009. china's president says no civil nation should dominate affairs. role would never seek such no matter how powerful it becomes. month, washington said china was destabilizing the region with its disputes in the south china sea. the international organization against money-laundering says japan is not doing enough to stop illegal activities. a task force saying it is a concern by japan's continued failure in dealing with the problem. the group calls for necessary legislation to hold money-laundering in the country. evidence of wage growth is what japan needs to see. let's go to the report card on japan. abenomics have not worked the way they wanted to share. the end is stronger. -- the yen is stronger. the nikkei is the weakest develop market index. last year, it was the best performer. real estate prices are a concern. they are shrinking. wage

bnp paribas essentially makes history in the wrong ways for being penalized with the heaviest harshest penalty criminal penalty, i should say in american history, dwarfing previous amounts. all of this to do with transactions they hid from the u.s. involving countries like listed by america. >> thanks very much. another legal ruling today. the u.s. supreme court placed limits on contraceptive coverage required under the new health care law. the court ruled 5-4 that some companies with the religious objections to not have to include certain types of birth control in their health care plans for female employees. the white house says the ruling will jeopardize women's health. i'm joined by david willis. how significant is it? >> it is significant. about 16,000 people work for the companies that brought the case before the supreme court. potentially, this could open the way to claims by other religious affiliated nonprofits, catholic hospitals for example, to bring similar claims against the government. what it means as far as the affordable care act is concerned is it is a blow, but poten

bnp paribas is sticking with the plan to expand its american bank last division -- bank west division. potential $10 billion penalty from the u.s. over its dealing with sanctioned countries. the eu will have to rely on antitrust and privacy rules to curb google search engine dominance. that is according to the german interior minister. the comments from response to critics who say the eu needs to take radical steps to curb the power of u.s. internet companies . he spoke to bloomberg. chinesee cannot unravel , american, indian, or south american companies. what kind of legal system would that be? >> another company we are watching this morning is h&m. a 25% jump in profit. winning us is -- joining us is charles allen. what is behind the outperformance and the fact that they have beat estimates this morning? >> cost control, sales were good, which we knew. touch.argins down just a they have a lot of operational leverage. >> where will they get more growth? >> broadly speaking, a lot of countries where they are still immature. they just opened a store in melbourne. i'm sure they can go t

the case against bnp paribas. the french bank is close to a deal with the u.s. government over allegations it violated sanctions against iran and sudan . bnp would plead guilty as part of a deal and pay up to $9 billion to settle these charges. the settlement is not officially done yet and still change. besides have a broad agreement in principle. i want to bring in kerry gardner -- keri geiger, who has been following the case for months. the hits keep on coming in terms of fines. $9 billion, the clo is stepping down. to getcase is going wrapped up. the unlike some of other banks, is going to feel a lot of pain. they are a smaller bank and they have smaller u.s. operations. here.maller bank >> they are going to use their dollar clearing operations, that could cause customers to go elsewhere. there clo has resigned due to pressure from the new york state sky.ing regulator ben law dozens more are on the chopping block. being we talk about prohibited from conducting business in u.s. dollars will stop has this ever happened before? >> not in a case like this. there

bnp paribas with a nine point $5 billion record on this case. is is going to be part of the global bank? >> moynahan -- this is just an ongoing saga. tore is this incredible rush get away from them -- >> with the ongoing saga, can you buy shares in these banks? -- this is ok but part of the reason they are so cheap is exactly why -- >> can jpmorgan do business in paris this morning? i don't want to traipse on barclays but can they do business in paris this morning? i don't know. raked overting the coals. >> this looks like a one-off. >> just a melt show that withcans can do business the french parliament. i believe that france is ok. the bnp thing is really an incredible story, if you look at what the regulators are continuing to do to financial services companies. >> and the fee is one year of total profits. >> we are talking huge numbers. going tomoynihan is meet with eric holder to get these night -- many billions of dollars of fees reduced. >> thank you so much for being with us this morning. >> michael holland is our guest host for the hour

let's start with number 10 bnp paribas. the bank close to a deal to plead guilty to pay up to $9 billion for allegations of violating sanctions. an agreement is said to have been reached. >> number nine, starbucks. it is attracting a lunch crowd. starbucks will start selling handmade sodas as well as revamping its sandwich offering. >> number eight, central garden and pet. it is being targeted by harbinger group. the firm made a bid to buy central. >> number seven is oracle. the company is by micros forems, a provider of i.t. retail industries for $5 billion. it marks the biggest deal for oracle since 2010 when it acquired sun microsystems. >> number six, american apparel. the board has rejected a plea to meet with the x ceo and has again refused to reinstate his position. hisexecutive has also lost support of american apparel's biggest shareholders. >> number five, wisconsin energy. they agreed to by an energy group for $5.7 billion to double its number of customers and increase revenue. the deal is expected to close next

authorities and the french bank bnp paribas could reach conclusion. they could have to settle a claim that basically it was criminally liable for, violating international emergency economic powers. there's a whole host of agencies against them including the treasury, the justice department, the u.s. attorney's office in manhattan and the new york department of financial services, mika. >> all right. thank you very much. >>> talking about google, though, making another early run to dominate the so-called internet of things marketplace. explain their latest acquisition. what is this? >> well, this is very exciting, especially if you've got teenage kids. you want to keep an eye on what they're up to when you're at work and they're at home. basically neslabs which google bought for over $3 billion anyway is buying this company called dropcam for $555 million. and basically it is very simple. it is wireless cameras within your home or outside your home. and you can just logon to this using pretty much any device. you can see what they're up to at home, see

bnp paribas and others could pay to settle legal issues. that's the second half outlook. >> kayla also on the panel with us. rich peterson mentioned that the outlook for second-quarter earnings is for 6% growth or 6.5% growth overall but 8% when you strip out the financials. in other words, they're under pressure here. >> they're dragging down almost the entire economy right now. the wonders of live television. we can be there, we can be here, we can be all these places at once. >> beam you around. >> but the point being, everyone thought banks were really going to be benefiting from a rise in yields as the economy starts healing, but bonds have just basically been trading sideways. and remember, the bulk of their earnings are in interest on loans to consumers and to businesses, so the longer yields stay low, the more the banks will make, not to mention these amazing legal settlements that keep coming in the tens of billions of dollars. >> and now the problem is that they're starting to really keep chasing the yields and we're seeing an ero

expected to unveil a near $9 billion fine for francis' bnp paribas. >> futures pointing to a lower open nasdaq on pace for two months of gains. s&p and dow shoot for five months of consecutive gains and data over the next few days. chicago pmi, pending homes also out today. auto sales, june jobs coming later in the week, adp challenger. a good time as always to take stock of what the first six months have meant. not good news for actively managed funds, as "the journal" points out today. >> we're in this business where there's a deal that happened this morning that really does in many ways capture what's going on. ppg, a buy comex, paint company. the ceo who is terrific, at ppg, came on "mad money," what happened if you buy comex. he said we're always open to m&a. no one thought it was not going to happen after sherwin-williams, not a surprise. but the stock goes up big. mannkind, see that stock going up on the tape this morning. >> yep. >> everybody knew the fda would approve this insulin dispensary. when it happens, it goes up, where we are the good news is not correctly discounted be

and the justice department is expected to announce a nearly $9 billion fine against bnp paribas today. that will setting u.s. sanctions by france's largest bank. >> cnbc's 125th anniversary all day we will be featuring what the markets could look like 25 years from now. we start by looking at which stocks might be the biggest names over the next few decades of dominic -- that's the thing about predictions. they're very difficult. you're going to try here, what i like is that we -- you know, even though i cannot tell you what the weather is going to be like tomorrow, we do know what the climate's going to be like in 100 years, 50 years, 30 years. but anything else is really hard to predict, except for that. but what's the dow going to be like in 25 years? >> you're absolutely right, joe. i have no idea what the weather is going to be like or what the dow is going to look like. but we thought we would take the progression from 25 years ago to today to maybe what it looks like 25 years from now, just to give you an idea of what things could look like. now, 25 years ago, it's interesting,

first up, bnp paribas set to plead guilty to criminal charges and pay a $8.9 billion penalty to state and federal authorities. the french bank is accused transferring billions of dollars on behalf of sudan and other countries plaque listed by the u.s. >>> google is offering free coding lessons to women and minorities. google, $50 million made with code initiative which aims to help close the gender gap in tech. >>> frozen foods are falling out of favor in the u.s. frozen food sales down 3%. $3.92 billion over the past four years. >>> industry officials warn of potential hit to the u.s. economy if dock workers at 30 west coast ports go on strike when their contract transpires on monday. a five-day strike would reduce u.s. gdp by $1.9 billion a day and disrupt 73,000 jobs. >>> youtube is adding a new feature that will make it direct competitor to kickstarter. channel owners have the ability to make money soliciting donations from their fans. [buzzer] where did the time go. that is today's "speed read." wow. liz: okay. well the unemployment rate has shown signs of improvement recently. g

bnp pz paribas violated a u.s. embargo with iran, south sudan and cuba. >>> and distributing money to victims of accidents caused by the faulty ignition. and the payout could be substantial. mary barra said there's no cap on the payments. gm still faces a criminal investigation. >>> facebook underfire this morning, accused of playing with our emotions. researchers manipulated the news feeds of 700,000 users to see how they affected their mood. scientists said it proved that positive and negative moods could be transferred across social networks. it's being called unethical. >>> and the transformers movie annihilated the competition, $100 million. it's the biggest of the year. 22 jump street and how to train your dragon 2 brought in $15 and $13 million. >>> and two women burglarized a state capital. what they took that led to their arrest. >>> and the knockout stage of the world cup delivers a lot of drama. we have all the highlights. i'm k-a-t-e and i have copd, but i don't want my breathing problems to get in the

and bnp paribas is close to a deal with u.s. prosecutors after it allegedly violated u.s. sanctions by hiding billions of dollars in financial transactions. sources say bnp will pay up to $9 billion and could agree to a temporary ban on u.s. dollar transactions. and target is now giving free shipping to most online orders over $50. that now matches the free shipping at wal-mart. it is still higher than the $35 minimum for customers at amazon. that is the latest from the fox business network, giving you the power to prosper. when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. ♪ ♪ melissa: more proof that every dog has his day.

paribas fine. we will go to new york and the whole question of whether they will be locked out of dollar transactions and whether they won a six-month reprieve for that to start in january. there is a bank run in bulgaria they are trying to sort out to the east of europe. in portugal they have a problem with the main shareholder in the largest bank there as well. you are beginning to see the banks move in sympathy. remember when kbc, weand credit agricole were moved together, we are seeing it again today. the airlines, started off with bank of america and merrill lynch downgrading easy jet to a sell. effectively a sell. it is an underweight because they are worried about overcapacity and inability to grow the business, grow earnings. during the course of the session, they dragged down air france-klm and iberia. time for a holiday. >> thank you, simon. general motors opening up with the compensation fund for the victims of the defective ignition switches. $ing for $100 million for families of the vi

. >> manus cranny is watching bnp paribas. a deal with regulators. berlin,hols is in following the race for the european commission president. as england takes on costa rica in the world cup tomorrow, we will take a wider look at the country's economy. we have an exclusive interview. >> gunmen fighting iraq he forces seized more terror -- iraqi forces seized more territory. president barack obama warning the violence could spill over into neighboring countries. elliott gotkine has more. things seemingly going from bad to worse in iraq. >> it does seem that way. since the insurgents took most of iraq's second biggest city, they have used it as a springboard to capture more territory. over on about four towns the weekend and now control a swathe of iraq. they should be able to keep open supply lines to what is now their frontline to take more territory away for the government to be formed. >> there is no guarantee any government will be able to bolster to the extent they will be a will to be back the rebels. >> how are they managing to defend the count

and one more, we're still waiting for resolution on bnp paribas and the fines for tl deliberately hiding the money in sudan for so manyccording to re billion probably to be announced in july. more heads rolling according to the report. a big question for many, carl, will be whether or not they're suspended from -- there you are -- suspended from some operations and money transfers for any period of time. i think that's still up in the air. >> part of our financial discussion earlier this morning. simon, thanks. >>> when we come back, samsung getting ready to launch a new android-powered smartwatch. apple obviously targeting one big celebrity to promote their own. it brings to us the part of the show where we'd like you to vote. we're asking the question once apple and google enter the smartwatch market, would you buy one? all you have to do, head to cnbc.com/vote. let us know what you think. get ready. that question and more going live on the other side of this break. the dow is down 29. with all the opinions about stocks out there, how do you know which ones to follow? the equity summar