-- captions by vitac -- www.vitac.com with banks closed frustrated citizens are queueing up at cash machines and the greek government has only hours to meet an end of the day deadline. plus the south carolina house votes to remove the

confederate flag from state grounds. and this is not your grandfather's al qaeda. here the fbi director's new warning about isis. hello i'm rosemary church. welcome to our viewers in the united states and all around the world. thanks for joining us. this is "cnn newsroom." and we begin in greece where the clock is ticking for government to lay out its proposal for a new bailout from european lenders. greek banks will now be closed until at least monday and people are still limited to 60-euro daily withdrawals from atms. reuters quotes the head of the greek banking association who says the atms will have enough cash until monday. greek leaders want a new three-year daleout promising tax and pension reforms in return.

but it's not clear how much money they are asking for. we expect to hear many of the details today. cnn's isa soares is in athens this morning and joins us live with the latest. the big question is whether greek leaders understand this is their last chance to propose solid reform measures or perhaps risk being dumped from the eurozone. is that message getting through and what sort of reforms do the european leaders want to see? >> reporter: i think from what we saw yesterday in europe discussions being had i think the message was abundantly made clear to them. they have until the end of the day here midnight here to put the proposals through. the credible reforms they want to put through and then they will consider that for the next couple of days both finance ministers and the eu summit leaders will meet on sunday to see if those measures go far

enough but it's there have been major sticking points between them and they haven't seen eye to eye, that's for sure. let me talk you through the major points that have come up from both sides. we have a list of some of the points. raising the retirement age. this was a sticking point for a long time. but now greece will raise it from 62 to 67 years of age. that is a tick in the box, let's say. and the next point is reforming the pension system. europe has been asking for more pension cuts in greece but greece is saying this is a major red line. our pensioners have seen huge cuts already. we can't make this any worse. what europe is saying you need to reform the pension system. what happens is that greece subsidizes the pension system from the national budget and europe is saying why don't you

make the system self sufficient so people pay in what they get out at the end so they will have more independence on that front. that is one thing that europe is asking for. then europe wants greece to cut spending. and -- greece is saying we won't cut spending what about if we raise taxes on businesses. europe says we don't want you to raise tax on business. so i think there is a dilemma where they are going to cut spending which is better raising taxes or cutting spending. and they will agree to cut military spending. and europe wants greece to eliminate the v.a.t. on islands. greece says our islands depend on transportation costs and tourism. if you eliminate that that will take a hit on the islands and

the tour himism. >> isa soares reporting live from athens. many thanks to you. china's markets are in the third week of volatile trading. committing brokerages to buying billions worth of stocks. here's a look at the numbers. we'll bring those up if we can. the shanghai composite up 5.44%. the shenzhen composite up 3.77%, very different to the numbers we were looking at 24 hours ago. although stocks have moved into that positive territory, there are still major concerns about what this slide says about the world's second largest economy. david mckenzie takes a closer look at the potential impact. >> reporter: some say the bubble has burst. some say it's a stock market

crash. how bad is the epic slide of chinese stocks? chinese stocks have been on an epic slide to. put it in perspective some say it's worse than the greek economic meltdown with the loss in value ten times more than the entire greek gpp. the chinese market is not the new york stock exchange. the government has a huge amount of control all the time. it can only go up a certain amount and down a certain amount. but every day it is bleeding value. they stopped ipos and injected cash to try to stop the slide and they are saying there should not be a panic sentiment in the market. but by even saying that perhaps, they are driving more panic. what about the chinese people? individual vestinvestors have been hurt by the slide. millions have piled into the market because of loosening

regulation. they are going to be hurting badly. but the person who should be worrying the most president xi jinping of chinese. the government helped push the stock market rally and everything they are doing seems to be failing. in the come mist party everything is about power and stability. should you be panicking? yes and no. about 1.5% of the value in the chinese stocks is owned by foreigners because of the tight control of foreign ownership in the chinese stocks. there isn't a web effect if the chinese stocks crashed it doesn't effect the worldwide system like the lehman brothers collapse. but there is a sense that the sliding stock market is a symptom of an ailing chinese economy. with the second largest economy, if chinese'ses the world will definitely catch a cold. >> david mckenzie reporting there. and ivan watson visited a

brokerage house in hang high and joins us now. what did the investors say to you about how bad they think things will get and whether the trouble could perhaps spread into the wider chinese economy. >> reporter: the mood wednesday among investors i talked to both young and old was of despair after seeing this stock market lose more than $3 trillion in value in three short weeks. a lot of people who put their savings into the stock market saying that it was dwindling away to nothing. wives are threatening to divorce their husbands over the losses of money. but talk about a wild ride and some crazy mood swings. now we see that the shanghai composite with about an hour left of trading, seems to have reverse the losses of yesterday, gaining more than 6%.

we still have 50 minutes left of trading but it gives you a sense of how crazy it's been for people seeing the shift from despair to euphoria. another thing we heard from investors was a repeated appeal to the chinese government either saying hey, they've got to do more or basically the chinese authorities are kind of screwing us the little guys or a sense of faith in the chinese government that they would step in and save everybody somehow. that gets to the crux of how big a role the chinese government plays in the stock market here. it isn't quite a free market like what you'd see on the new york stock exchange or london the government plays a big role in this stock market. and that's why the plunge that we witnessed could have big implications analysts say on the government itself.

take a listen to what one analyst told us. >> so far, this crisis or panic is contained in the stock market alone. but if the government cannot rebutte or calm down the market in very short times, weeks or days then this kind of pessimistic sentiment will be easily spilled over to the banking sectors. because the leverage -- i mean the people borrow money to buy the stock. where the money come from? most of them from the banks. >> reporter: so here's one of the announcements the government made that will probably be welcomed by many of the retail investors, the government is saying they will investigate malicious short selling and suggesting that big fish who may have been playing with the market betting it would go down further they may be investigated

and that's probably going to be welcomed by people very worried about the direction that things have taken over the course of the last three, quite crazy weeks here. >> it has been a roller coaster ride. perhaps not over yet. ivan watson keeping an eye on what is happening there from shanghai in china. now to the u.s. state of south carolina where a confederate flag may be one step closer to being removed from the capitol grounds. the state house of representatives has voted to remove that battle flag surpassing the required two-thirds majority. these are pictures from the state house floor where the debate dragged on into the early hours of the morning an overwhelming majority of the state senate also voted to remove that flag earlier this week when the debate was taking

place late wednesday a representative from charleston said it was time for less talk and more action. take a listen. >> i cannot believe that we do not have the heart in this body to do something meaningful such as take a symbol of hate off these grounds on friday! and if any of you vote to amend, you are ensuring that this flag will fly beyond friday. and for the widow of senator pinckney and his two young daughters, that would be adding insult to injury! and i will not be a part of it! >> very emotional lawmaker there. and now the bill goes to governor nikki haley's office

for her signature. she is calling this a new day for the state. officials are trying to figure out how massive computer glitches hit united airlines the new york stock exchange and the wall street journal internet home page all within hours of each other. rene marsh reports. >> reporter: for four hours the new york stock exchange was at a halt. it's unclear this hour how much money may have been lost but in the end, the dow was down over 200 points. and in the travel world, from california to chicago, a backlog of passengers stuck on long airport lines while all of united airlines flights were grounded. >> going to be a long wait how long? >> a system wide ground stop due to a computer outage.

>> a system-wide failure shut down operations for the major u.s. carrier for hours as well. >> we were checking in and basically was told the flight was cancelled. >> we're just taking it as it goes. >> more than 800 flights delayed. another 59 cancelled. agents were forced to issue hand-written tickets. >> when it happens at a giant airline like united you can get chaos. passengers have a matter of minutes to make their connecting flights. when you have flights that are held for hours that can cascade through the entire season. >> reporter: but government officials tried to assure the public that these were not malicious attacks. >> the malfunctions at united and the stock exchange were not the result of any nefarious actor. >> there is no indication that malicious actors were involved

in these technology issues. >> rene marsh reporting there for us. the head of the fbi has a warning for washington. why he says the u.s. is losing ground to isis in cyberspace. we're back in a moment. my heart... beats 100,000 times a day sending oxygen to my muscles... again! so i can lift even the most demanding weights. take care of all your most important parts with centrum. now with our most vitamin d three ever.

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the united nations has just released a disturbing report about war-torn syria. the number of refugees fleeing the five-year conflict in syria to neighboring countries has now passed 4 million. this map shows just where they're heading. turkey has received the most refugees about 1.8 million so far. the u.n. expects another quarter million people to flee syria by the end of this year. the fbi is warning u.s. officials that there is a growing cyberthreat when it comes to isis. fbi director james comey says that the terror group is using encrypted programs to prevent law enforcement from accessing its communications and he says his agents don't have the tools

to stop it. jim sciutto reports. >> reporter: the top law enforcement official gave congress a frank and sobering warning today. terrorists are going dark in cyberspace. >> sometimes people watch tv and think that the fbi must have a way to break that encryption. we do not. which is why this is such an important issue. >> reporter: the use of encryption means that the fbi cannot prevent attacks on u.s. soil like the one in texas two months ago. >> we are stopping these things so far through tremendous hard work and online undercovers but it is incredibly difficult. >> reporter: the issue, online conversations between american supporters of isis and other or report groups and terrorists overseas like the isis recruiter hussain hidden by encrypted and

available messaging apps like sure spot and kick. >> this is not your grandfather's al qaeda. we are look for needles that are increasingly invisible to us. >> reporter: a person sends a message like i want to fight for isis over the web. encryption software scrambles that message and only the ref sip yant with unscramble it. the st. louis is to allow law enforcement access to encrypted messages with a search warrant. tech companies are resisting, concerned they will lose business from privacy concerned customers. silicon valley says it lost tens of thousands of dollars overseas. >> the encryption debate is a trade. how much more secure do you want to make americans and their

personal data versus how much opportunity do you want to create for terrorists and other criminals to communicate safely. >> joining me is susan landau from massachusetts. she is a cybersecurity expert that co authored a report that warned experts. thank you for joining us. so susan we saw that the fbi believes the solution is to allow them and other legal authorities access to encrypted messages with a search warrant but you don't agree. why is that? >> that is not exactly the problem i have. if they have legal authority they should be able to access things. the problem is that they are asking for exceptional access and that systems are designed so they can always get in. and security is very hard to do. when you do exceptional access

and they haven't described what that means. you break security and in the end that makes us all less secure rather than more so. >> james comey says privacy technology can be detrimental to public safety. what do you say to that? >> if you look at one set of issues and he brings up things like kidnappings and isil i can see where he is coming from. but our real national security problems are the threat of intellectual property. the u.s. is producing ideas these days, how to make pharmaceuticals, build software and so on and so forth. to protect those we need to protect the data. we need the security tools to encrypt the data at communications and at rest and do so securely. and the things that enable wiretapping may create problems there. that's where the conflict lies. >> how do you prevent terrorists

from going dark with encrypted communications. there is an impression that isis is ahead of u.s. authorities when it comes to encryption in cyberspace. is that a reality? >> the fact is that enemies of the united states have always spoken in code. that was true with organized crime and the 9/11 terrorists and the soviet union. i am not a law enforcement officer. but where you need to go in that particular problem is to start with when you see the communications going from isis and all of its followers and see who its followers are and start to track what they do. and that's where you need to go. it's a hard problem. but you are balancing that issue against the need to protect u.s. industry, u.s. government and we have seen any number of hacks, large numbers of hacks as a result of not doing secure encryption and secure methods of

keeping the data safe. >> susan landau many thanks to you for shedding light on a very complex situation. we appreciate it. >> thank you. an adoring followers of pope francis warmly greeted him as he visited la paz, bolivia earlier. watch as the catholic leader appears to catch a bouquet of flowers from the court. his visit is part of an eight day tour of south america. he spent a short amount of time in la paz before moving on to santa cruz in bolivia. >> reporter: la paz celebrating the coming of pope francis. but at 3600 meters, nearly 12,000 feet quite a challenge for a 78-year-old pontiff.

at the airport pope francis, greeted by indigenous children and presented with a traditional bag to store coca leaf. according to many bolivians, that's the best way to stave off altitude sickness and it's sold at markets like this one. piles of tomatoes cheese and eggs and then coca leaves. this woman chews the leaves every day. do you think pope francis will try it? he's going to chew it he says. he's here he's going to chew it. further down the road another woman shows me how it's done. it's for hunger she says it give use energy and for altitude. she says it will give rid of hunger and make me feel stronger and help with the headache. >> and it does help with the headache. and there is the tea made of

coca leaf. coca leaf is the main ingredient of cocaine. but drinking the tea and chewing the leaves are legal here. the vatican limiting his trip here to four hours. joyous followers lined the way. he showed no signs of fatigue as he kissed children and waved at crowds but we may never know if coca leaf helped him keep up his spirits. we'll take a break but still to come cnn's anderson cooper asked donald trump what he would do to stop isis. his answer? bombing the oil fields. >> you don't think that bombing the oil fields is going to anger huge numbers of people? >> i would bomb the hell out of those oil fields. when you're not confident you have complete

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a warm welcome back to our viewers here in the united states and around the world. i'm rosemary church. we want to update our top stories this hour. south carolina lawmakers have voted to remove a confederate flag from capitol grounds after hours of debate. this comes weeks after a racially motivated shooting at a predominantly black church that killed nine people. the shooter posed with pictures of a similar confederate flag and he said that he wanted to start a race war.

that flag holds an important place in southern history as it was carried into battle during the u.s. civil war. for more african-americans it is a painful reminder of slavery. banks in greece will stay closed until monday with a 60-euro daily limit on atm withdrawals. the government has requested a three-year bailout from european lenders. details are expected in the coming day. china's markets moved into positive territory today after the government announced more measures to stop the slide. interest rates were cut to a record low. and brokerages planned to buy billions worth of stocks. the shanghai composite has lost 32% since mid june. the morning commute is underway in london where a tube strike is causing chaos for commuters. the strike has closed the

underground network until friday. transport for london has added 200 buses and other means of transportation to try to help millions of people get around. bomb the oil fields. that's what u.s. republican presidential candidate donald trump says he would do to get isis under control. anderson cooper sat down with trump for an extensive interview and here's more of what he sad to say. >> i want to ask you about isis. you said no one would be tougher on isis than donald trump. >> nobody. >> what would be you strategy? >> the situation with isis has to be dealt with firmly and strongly. i would love not to be over there. that's not our fight. that's revolutions and whatever you want to call it religious wars. i would do things that would be so tough that i don't know if

they would be around to come to the table. >> what sort of things? >> i would take away their wealth the oil. >> what does that mean? >> bomb the -- i tell you what i hate about this question. if i win, if i win -- i didn't want to answer this question and i thought maybe i could go without answering it. if you look at the great general george patton or general macarthur they didn't talk about what they did. and i hate to -- if you were i said i have a plan but don't want to talk about it. people said he doesn't have a plan so i had to talk about it. if i win i would attack the oil sites that are controlled and owned -- owned -- controlled by isis. they are taking tremendous money out of it. they are renovating a hotel in iraq. >> wouldn't you be destroying the wealth of iraq? >> there is no iraq. >> iraqis might differ --

>> there are no iraqis. they are broken up -- >> you don't think bombing iraqi oil fields is going to anger huge numbers of people? >> i would bomb the hell out of those oil fields. i wouldn't send many troops because you won't need them. i would get exxon and the oil companies to go in and rebuild them so fast -- >> you have to have u.s. troops -- >> excuse me. you see how fast they put up rigs? i go to the top five companies. >> don't you need u.s. troops to protect them? >> you put a ring around them. you have taken all the wealth away. this is what should be done. but no politician is going to do that. >> donald trump there. and anderson asked trump about a report from the "washington post" that illegal immigrants are working at the construction site at his hotel in washington. this is after trump said some

mexican immigrants in the u.s. are criminals and rapists. >> the "washington post" say that some of the workers that are building your hotel in washington, d.c. are illegal. they talked to 15 workers and a number came here legally through asylum and a number said they are illegal. isn't it hypocritical for you saying that illegal immigration is killing the country to be employing them. >> i read the story. we are building a hotel on pennsylvania avenue and it's being done beautifully. and by the way that story does not name any names. i would love for them to give the names. they don't name them and they don't know if it's true. >> what they say is several of the men from el salvador have earned legal status through immigration status arguing south americans and others are in the

country illegally. you know they are not going to give you names. >> and i have to say this we believe so strongly -- i hired a very big contractor one of the best in the world to build the building. it's their responsibility to make sure -- >> doesn't the buck stop with you. you are paying their salaries. >> absolutely. we have gone out of air way to make sure that everybody in that building is legal. and we do have some that became legal. and -- wait a minute. we have some -- many i think that became frankly, me you, everybody, ultimately we are all sort of in the group of immigrants. but we have done that to the absolute letter of the law. and the u.s. republican national committee chairman wants trump to tone down his immigration rhetoric. a republican source says that they spoke wednesday on the phone. he told trump the way

republicans address immigration is important to winning back the hispanic vote. trump's campaign manager says the two speak regularly. democratic presidential candidate hillary clinton's team is doing damage control over her answer to a cnn question about her e-mails. listen to her exchange with brianna keilar on tuesday. >> people across the government knew that i used one device maybe it was because i am not the most technically capable person and wanted to make it as easy as possible. >> but you said that they did the same thing -- that they used a personal server. >> personal e-mail. >> and deleted e-mails from them? >> you are starting with so many assumptions. i've never had a subpoena. again, let's take a deep breath here. >> in fact clinton had been subpoenaed in march, a spokesman

said clinton understood the question to be if she was under subpoena when the e-mails were deleted. nick merrill says that the suggestion was a subpoena was pending at the time that was not accurate. trey gowdy did not issue a subpoena until march months after she had done that review. the fbi is asking the public to help them find hundreds of teenagers who are victims of sextorsion. they coerced young girls into sending them naked pictures of themselves which they post on the internet. i was just the good girl of school. i didn't ever get in trouble or anything like that. i was just freaked out. >> reporter: ashley reynolds just finished her freshman year

in high school when a stranger said i have naked pictures of you. and the threats kept coming. i need you to take pictures in your bra if you don't want them to see you. >> i knew there was no picture of me. >> reporter: but ashley who was 14 years old at the time remembers finding victim to the mind games of a sexual predator. >> he was manipulating my mind to think i had pictures of me. maybe i had my laptop up and was changing. >> reporter: the man behind the threats a man from florida now in prison serving 105 years. ashley at the time feeling she had no choice sent him a few naked pictures of herself thinking he would go away but that was wrong. >> what started off as seven pictures that one night turned into 60 pictures a night. i was so scared.

i didn't know where it was going to go. >> reporter: ashley is one of 350 young girls victimized by chancellor in 26 states across the u.s. along with canada and the uk according to court documents. federal agents raided his home in 2010. on his computer more than 80,000 images and videos some showing the young victims crying pleading with him. fbi officials are asking for the public's help to identity hundreds of his victims. so far they have identified 109 girls including one in florida. >> he came out and threatened her he was going to harm her and her family if she didn't produce for him. >> reporter: ashley is on a crusade hoping to save other young girls from predators like lucas chancellor. >> i feel like i have a meaning to help other girls so they don't have to go through this like i did. >> reporter: thanks to pamela

brown for that report. a short break. but ac/dc drummer learns his sentence and he hits a sour note on his way out of court. the details just ahead.

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welcome back everyone. two migrant workers are on trial for the deaths of two british backpackers in thailand. david miller and hannah witheredge were found dead on a beach last year. the migrant workers originally confessed to the killings but they later retracted their confessions saying they had made them while being tortured. the men could face the death penalty if found guilty. rights groups say the case is raising question about the

treatment of labers in thailand. phil rudd pleaded guilty in april to drug possession and his attorney says it is just an angry phone call. here's rudd as he left court earlier today. >> we're looking at all options. [ bleep ]. >> any idea whether you might be appealing or not? >> we're taking those option. out of the way [ bleep ], job pal. [ bleep ]. get a real [ bleep ] job. [ bleep ] [ bleep ] [ bleep ]. >> excuse me. >> i have a job. interesting. rudd's lawyer is appealing the sentence and ac/dc has replaced rudd for its record tour that

starts next month. we want to update multiple typhoons. pedram javaheri is with us. three typhoons in east asia. >> the immediate danger around the guangdong province one of the main areas that will see tremendous rainfall over the next couple days. we'll show you video coming out of the region as the storm is sitting offshore and you see the beaches taking on water damage across the board. and the harbors taking a tremendous pounding from the waves offshore with a storm system that had wave heights up to 7 meters. it's weakening and paralleling the coastline. show you hong kong. officials know all too well about the tropical features. the clouds are coming into the area. we don't suspect much of a wind problem but it's a rain issue with this storm system. it is going to weaken rapidly.

it is a category 1 equivalent. and typhoon linfa. and some of the rainfall 150 up to 200 millimeters of rain is possible. we have had a very very soggy summer this portion of the world. and the temperature trend is in the low 30s. 70 to 80% chance for rain and thunderstorms over the next couple days. the storm parallels the coast. and you see the storm meander into the south china sea. chan-hom over the open waters. this one goes right to shanghai. in 70 years of data keeping we have seen two storms come close to shanghai. heavy rainfall saturday into sunday threat over this portion of the world. i want to take you to italy. in europe tornados are not

uncommon. germany sees about 30. work your way to italy, they see about 12. sometimes some of the largest ones. and the video coming out of italy showing you the impressive storm here that injured 20 people and took with it one life and really really scary stuff when you see how close this person was able to get to this storm in a western suburb of venice with this tornado damaging businesses and property as well. the trees take on the brunt of the storm system. >> we never think of tornados in that part of the world but we have been reporting on them in recent months. >> they get about 12 a year. >> many thanks to you. appreciate it. most people think that selfies are fun, not the russian government. they say that taking personal shop shots carelessly could be

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welcome back everyone. nowadays it seems everyone loves taking a selfie and it seems so fun. this is one here at cnn

international newsroom and others around the studio. but russia's interior ministry is warning that taking a selfie can in fact be dangerous. kelly morgan reports on the government's campaign on the safe way to snap a selfie. >> reporter: the photographers train the cameras squarely on themselves eyes focused on the tiny screen as they strike a pose. a memory is captured to last a lifetime. but beware some selfies are cutting lives short. >> translator: the number of accidents while people are take selfies are growing constantly. they are taking risks and for getting great photos can be done in a safe environment. ♪ >> reporter: in response rush's interior ministry has launched a safe selfie campaign complete

with diagrams. many inspired by actual events. selfies with dangerous animals, portraits from high buildings, photos taken from cliff edges and near moving trains. russia police say there have been 100 incidents this year alone and some have been fatal. a 21-year-old pictured here on her vk page. she died after falling from a bridge while taking a selfie in moscow. the selfie obsession is a relatively new trend in russia and he quotes a local proverb. if you don't take a risk you don't get champagne. in other words, no risk no reward. selfies are cool and trendy these girls tell us. another pair say they are prepared to take a risk for an image that grabs attention.

it looks like the selfie is set to stay until we feel ridiculous taking the self portraits. until then, don't let taking this photograph be the last memory you ever make. kelly morgan cnn, moscow. >> of course taking a selfie is usually pretty joyful. just ask pope francis. he caused a stir when he greeted admirers bent over and posed for a selfie with a disabled child. the crowd, of course loved it. and you have been watching "cnn newsroom." i'm rosemary church. next hour i'll be joined by max foster. stay with us. ♪ ♪ when you're living with diabetes steady is exciting. only glucerna has carbsteady clinically proven to help minimize blood sugar spikes. so you stay steady ahead.

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-- captions by vitac -- www.vitac.com the confederate flag the center of controversy after a racially motivated shooting in the u.s. is coming down in one state capital. wild trading in china. and a killing, the clemency and the aftermath, arnold