That was bad. They are in davey jones locker. Nice work with the markets, andrew. Down two weeks in a row. Two weeks . Was there a single up day . I thought there were two up days. I looked. Might have been two up days. You cannot hold me responsible for what happened. Did you turn bullish or something . Have you been saying bullish stuff for the past two weeks . That would give people a clue. Cisco, walmart. All the retailers terrible. Everything was terrible. You left, everything was terrible. Now you are back. Interest rates are up 0. 25 in the last week. Terrible headlines this morning. Andrew wants to get to the headlines. Youll want to comment on this, im sure. Making headlines, the u. S. Government looking into whether jpmorgan hired the children of chinese officials to help it boost its business in china. The New York Times citing a u. S. Government document for the details of this investigation. Jpmorgan saying its fully cooperate with regulators. The company disclosed part of this investigation late last not late last week but the week before that. Were going to have a lot more on this story with the former s. E. C. Enforcement attorney in just a few minutes. A foreign corrupt practices investigation . Do you know what that entails . That is horrendous. That is every Single Division of the bank all over the world will likely have to look into everything. Its every time you deal with foreign corrupt practices. This is s. E. C. , though. This is s. E. C. Doing this. My understanding is its foreign corrupt practices act. Anyway, i mean, we talk about what what is your great phrase when we talked about walmart. You say what happens in yeah, that to try to apply our to try and do i had a long discussion about whether the means justify the ends in certain means and you probably shouldnt go down that route. But there are certain countries where when in rome, you wont get anywhere that was it. Its not even against the law in those countries. I was shocked like casablanca that jpmorgan might hire some rich guys kid. It never happens on wall street. Or at cnbc or anywhere. Were they interns do you know or were they is Cheryl Sandburg paying interns now . You would think that the kids that are from the families over there that have some connections probably are pretty good candidates for the jobs. They probably speak english. As occupy wall street emails that say as they told us, you are an enabler of the banks. As the protesters have said. He is. Hes a i sat across from him at office night out in the hamptons at one point when his book came out. All those people yelled at you. They were very if im an enabler yeah. I hear you. I hear you. Neither one of us get paid by them, though. Thats true. You dont . Why not . I said something about you yesterday. I was talking about oh, god. I was talking about this guy, this allyn sloan character from fortune. Hes been on here before. I tweeted that. You bezos. You better declare your politics. And i would say, oh, my gosh, if you are not a far left liberal, you better not try to buy the Washington Post, my friend. You better get in line because youll be disqualified. And then i tried to describe the people that are already at the post. Eugene robinson, dana milbank. All these type. And i said you are probably the most conservative or fairminded person at the entire New York Times. Thats what i said. Thank you for that. But it was as far left as you are, you are probably the most reasonable person, which is why the Huffington Post probably doesnt like you. I dont know where to go with that. I have two points who read the allyn sloan piece. He better declare. But his point was was it the internet came from the 19th he was making a very left argument that the internet was a product of the government and, therefore, jeff bezos should be you guys lost your even Robert Schiller admits that invest investment in infrastructure comes from entrepreneurs. Even bono knows it now. Bono. Bono . Who is bono . Oh, hes can i give one irony of that allyn sloans piece in fortune. The Washington Post pays to republish that piece in the Washington Post. So well see how long that lasts. Jennifer rubin started following me yesterday. Really . That was my moment of shes phenomenal. To be down there in that cesspool in the beltway working at that place and to be able to say anyway. We have to get on. We continue to follow the latest in egypt. Days of bloody protest have left hundreds dead. The head of the Egyptian Army vowing further violence will not be tolerated. A strange statement since they seem to be committing a lot of it. The Muslim Brotherhood is calling for more protests. Yousuf gamal eldin joins us with the latest. Reporter its been another tough morning. More violence this time in the sinai peninsula. An attack near the border town of rafah, which is about 140 miles east of the northern terminal of the suez canal. Nbc news understands from a Security Source that two mini buses with 28 police conscripts was ambushed. They were asked to step down. And with machine guns, 25 of them were killed. Three of them seriously injured. Now that adds fuel to the fire. Just late last night a prison transporter came under attack or at least there was some chaos that broke out there. 36. Sayome say 38 supporters of morsi were killed there. This comes after the cabinet as we understand it, announced they may be legally dissolving the Muslim Brotherhood as a political party. You mentioned that they will be trying to hold more marches and more protests and that raises the prospect of further violence. Now if you take a look at the International Reactions which have been mostly ones of condemnation from United States and the European Union, they are looking to review not just bilateral ties but also Financial Assistance. Interestingly enough, nbc news learned from a Senior Administration official that further policy decisions are due within the next few weeks and that if any decision is taken it would need to happen before september, before the start of the next fiscal year and that all options are on the table. And the same applies to the European Union who will be Holding Discussions throughout the day. But how are investors feeling about this. If you pull up the chart from the Egyptian Stock Exchange this morning after losses of 3. 9 in yesterdays trade, trading to the up side to the surprise of many observers thus far well have to see whether theyll be able is sustain that moment num the remaining hours of trade. Thank you very much, yousuf, for joining us live from cairo this morning. Were going to get back to the story we mentioned at the start of the show. The u. S. Government looking into weather jpmorgan hired the children of chinese officials to help boost its business in china. Jacob franker was an enforcement attorney. Good morning to you. Good morning. Help us with this. We were talking about when in rome, do as the romans do. We know so many people here in new york or interns for wall street bankers because they are the kids of so and so. Not suggesting its right or not suggesting its wrong. Its possible some of these kids might have been qualified. They went to good universities. How is this all going to shake out . How do you ultimately judge whether hiring a child of a Government Official breaks the law . You hit all the issues on the head because you have to get into the issue of qualifications. Is it for the purpose of influencing corruptly, but going back to the when in rome, the fact is, in rome, really throughout the world, you know, this concept, the culture of corruption and giving back to, you know, to Government Officials in order to obtain or retain business which are the critical words in the statute as well as the word to influence corruptly really are at the guts of it. And the government is going to have to get behind this issue of, were these kids, were these children of Government Officials qualified for these positions . What qualifications did they actually bring . I think you mentioned before they were western educated, stanford and some other american universities. Jacob, when you make reference to the statute, are you talking about the foreign corrupt practices act or fair enough. Were talking about the foreign corrupt practices act. Very quickly, its a statute that was passed in 1977. Even though we think its the s. E. C. Here at this point . Im sorry . Even though it appears its the s. E. C. Involved here . Both the s. E. C. And department of justice have concurrent jurisdiction. The statute, the fcpa is actually within the federal securities laws. Usually the lead Investigative Agency in a lot of these cases, the highprofile cases that have brought these hundreds of millions of dollar fines are all department of justice cases. And its really their settlements that have often jacob, lets say theres an email. Lets say theres an email that says we just interviewed so and so. She went to such and such school. Seemed qualified. Went through the process and we kind of like her. By the way, this is a note going up the chain to somebody. By the way, she happens to be the daughter of so and so and were hoping shes going to help us make some introductions to such and such. Lets see thats what some email exists. Very likely. And thats really where you get to the issue of compliance. The fact that the person is a relative alone is not the end of the issue. The purpose is why are you hiring this person . Lets say the email says this company is going to have an ipo and a year from now, you know, shes the daughter of so and so and were hoping that shes going to be able to get us in touch with the right people and make the right introductions. Lets say thats exactly what the emails say. Im not suggesting they do. Then it becomes more problematic. The question really is, what was the purpose of really, first thing we have to look at is what was the purpose of the hiring. If what youre describing is a scenario where id call it a real hiring. You are hiring somebody because they have qualifications, then there is a strong argument its not for the purpose of influencing corruptly. On the other hand you can look at the case that was brought, i think last year, involving tyson foods in mexico where you had spouses of mexican Government Officials but this is not that. These arent people who dont go to work every day. Correct. Just on some kind of payroll on vacation somewhere. Thats not whats being suggested. So what do you think is really happening . The short answer is we dont know whats really happening. No question we also have read that morgan did not have a strong china presence. And this clearly enabled them to have a much more active role in business with stateowned and other enterprises. So were really talking about issues that get to the guts of fcpa analysis. And speaking of that, jacob, is it a done deal . When you are involved in a foreign corrupt practices investigation, do i understand correctly that the requirements become incredibly onerous . Walmart has had to do an examination of every single business they have in the entire world that is Standard Operating Procedure when you get accused of these things. Is that a done deal . Is jpmorgan going to have to do that now or do we have to see how this progresses . Yes and no. If were really talking about discreet conduct, walmart is a different issue. Walmart had a problem and didnt respond to it. Now they have to take extra measures to establish their bona fidity. You can focus on that venue, that jurisdiction where the conduct is occurring because thats really what is at issue here. The reason you go more global, particularly with multinational corporations is you really, you need to do an assessment. If we have a problem in china, do we also have a problem in other countries . The immediate focus here is going to be china and the conduct of china and their unique there are very unique issues here. Real quick. Should other wall street firms be worried about this . Do you believe the s. E. C. Is going to start looking at them . And to jpmorgan, i dont know if theres something in the water or if people just decided to put a target on their back . Every other day theres a new headline related specifically to this firm. Do you have a view . Answer, nothing special about this thats targeting morgan. There are particular facts here that give rise to the issue. Weve heard recently about Major Pharmaceutical Company having major issues in china. China has, you know, conduct in china for u. S. Based corporat n corporations is a major issue. I dont think its specifically targeting them. Your issue started with Financial Institutions. The s. E. C. Has made Financial Institutions a priority going back two or three years where it started focusing on sovereign wealth funds. Jacob, thank you for joining us. How did you get that job . You were in high school at the New York Times. Yep. Your dad was aaron sorkin is your uncle . Im related to all these people. Your father is a bigtime lawyer. He is. Just real quick, he sent a letter through hold on. Through a friend of ours to try to get me a job at the New York Times and i still have the letter when i was 18 years old from Russell Lewis who was the ceo of the New York Times at the time rejecting me saying that he was very sorry but you were too young and could not have the job. That didnt stop you, though. It didnt stop me. I got in but not through him. I got in i went around and around and around. You dont stop. I hear that. You keep going like the energizer bunny. And the world i found a way in. Unfortunately or fortunately, not through my father. He would have been happier the world is a better place that you didnt. West wing. Newsroom. All these phenomenal anyway. Time for the Global Markets report. Carolyn roth is standing by in london. Good morning to you, michelle. Were pulling back just a little bit. Were off the session lows for the europe stocks 600. That follows a flat session that last week and that certainly is a big disappointment to many investors out there. It seems as though europe is now everyones darling on the back of better than expected Economic Data over the last couple of weeks. Last week, we saw the strongest inflows into eu equity funds since 2008. Now its pulling us down today is definitely basic resources. The biggest decliner sectorwise. This is on lower metal prices. A little profittaking but theres also this glencore story. Let me show you shares in the combined mining company. Theyre on the bottom of the ftse 100 here in the uk, off by 1. 4 . This is on press reports over the weekend indicating glencore will be writing down 7 billion in assets tied to its xstrata assets mainly in nickel and copper. Finally the bond markets. I know you guys are watching the tenyear treasury yield inching ever so close to the 3 level. Currently 2. 86 . 69 rather. But the current yield at 2. 74 . And the german yields for the tenyear at a 17month high. Guys, back over to you. Very good carolyn. Thank you. We appreciate it. Now dick cohey is joining us. For the last two weeks, i dont know, there has not been a voice of reason around or something. Im not sure what has happened. Supposedly he goes on vacation and the markets go down. Heres my point. If i were trying to take a half full view of what weve seen, as the fed slowly starts to do what it is doing, i would like to see a slow move up in the tenyear. Id like to see it go up to 2. 70, back to 2. 50. Up to 2. 75, back to 2. 55. Id like to see it where it is but react like it was predicted to do but not have a huge dislocation. And it seems like everything is going according to plan from where we are. Is it working . The speed of the rise of loan rates did they lose control . Is a function of how severely they manipulated the bond market. But it hasnt been that quick of a rise. If you take the last four months we were 1. 60. Went to 2. 87. Thats a pretty big rise. And the reason is nothing has exploded. 2. 87 is not a wrong price. 1. 63 four months ago was a manipulated price. And it was the severity of the manipulation by the Federal Reserve that caused the speed of the adjustment. You are not going along with me then. Youre saying it has been disorderly and it has been a its been fast. Has it been a reason for concern . I guess i guess my technical rule is, any time the stock market goes up 150 you should not be shocked if there is a time correction where it doesnt go up every day. I was going to say lets have a sense of longer term perspective. Weve gone up over 150 and we are not making new highs every single day. Duh . I mean, why are we getting upset . Weve also been told that if rates go up for the right reason, that its something that should be beneficial long term for the stock market. Are rates going up for the right reason or they are going up for the right reason because real yields are rising because of an expectation. I think were going to make a transition from a 2 growth rate to a 3 growth rate. For three years you said . Three years of real gdp growth. Were still in a stock bull market and were going to be in a stock bull market for the next several years. But that doesnt mean you make new highs every single hour. Its going along, andrew, as planned. Its going along. This might work. Bernanke succeeded. He kept the economy growing. We didnt have a double dip. We dont have that inflation. All the inflationists were worried about. We have an expanding economy that is expanded. Its slow but its a long recovery. Its going to last seven years. Were in the middle of a sevenyear what year are we in . Were in the fourth year. Lou, is he full of it . One point i will deba