but china experts join us for the discussion all that directly ahead but first we had some headlines let's go. as negotiations on a deal for the united kingdom to leave the european union are intensifying michel bunya of the european union to bret's a chief negotiator today said an agreement is within sight although he cautioned that many issues remain unresolved he said such a deal could be reached by next wednesday if britain stays in the e.u. customs union under such a circumstance the entire u.k. would remain in the e.u. as custom area which means there would be no added terrorist between the e.u. and the u.k. they would be one solid trading block hard line breaks it tears including member members of many members of parliament who are members of british prime minister teresa mayes conservative party oppose staying in the e.u. is custom union as miss may herself today has at least rejected staying in those opposing the staying in the customs union do so primarily because they prefer the

u.k. to be able to enter into bilateral trade relations with other nations and remaining in the e.u. customs union would prohibit such bilateral u.k. trade agreements a spokesperson for the prime minister played down prospects for a deal next week when ms may will meet with the leaders at a summit and we have reports over the past that things are going well only be stalled or stymied by one issue or another so it remains to be see what will take place regardless of what occurs and he brags that deal would need to prove from the u.k. parliament. and other news from the u.k. there is more follow up for the reputed big four accounting firms after scandals including the collapse of u.k.'s super contractor karelian a client of accounting giant k p m g the chair of the competition a market's authority or a c.m.a. andrew tie re says his agency will take a closer look at auditing processes with an eye toward major reforms in a statement mr to. i rewrote if the many critics of the audit process are right not

just the companies which by audits that lose out it's the millions of people dependent upon savings pension funds and other investments in those companies whose audit's may be defective meanwhile regulators at the financial reporting council say they are considering sanctions against the big four including a ban on consulting work by accounting firms for companies that the accountants are also responsible for rating we've been doing that in the united states regulators in the u.k. are widely reported to not just be considering specific reports but also the fundamental question of whether the big four are actually too big to fail and therefore pose a systemic risk to the u.k.'s financial system. a category four hurricane hurricane michael which has had winds in excess of one hundred forty five miles per hour that's two hundred thirty three kilometers per hour is now making landfall on the florida panhandle near the tourist town of panama city it's also impacting the state's capital in tallahassee and thousands of businesses and even energy markets

are being him impacted florida governor rick scott had this to say i just received a briefing on dangerous category four hurricane michel for grammar in summation here in tallahassee. ok michael is a deadly category four storm this is the worst storm of the florida panhandle seen in more than one hundred years. and here's the current canes path and as you can see the eye where the highest winds are located with gusts reaching one hundred sixty miles per hour that eye is about forty to fifty five fifty miles wide and the highest winds are on the northeastern portion of the just east about eighty miles as the crow flies is the capital city of tallahassee it's right about here where the a is and panama and tell hasee is braced big time as it's starting to feel this impact tallahassee is actually the largest city on that florida panhandle that got about two hundred thousand people low unemployment rate for many months of the economy is

largely based upon health care retail manufacturing and education it's the home to colleges including florida state university and florida a and m. and an energy markets they are also feeling the impact these are all of the oil rigs and the oil platforms the platform stay fairly stationary those have been of vacuum way to roughly forty percent of crude oil production each day more than six hundred seventy thousand barrels of oil and seven hundred twenty six cubic feet of natural gas has been shut down there in the gulf of mexico and at least as i say seventy five of these have been evacuated the oil platforms companies including british petroleum chevron b.h.p. billiton and darko patrolling all have shut their people and sent them back home they're safe now plus the louisiana offshore oil port has stopped all of its activities and it's the only place the only facility in the u.s. which can fully load and unload these large shipping tankers and also it would go a look at gasoline prices they've reached

a four year high and are up three cents on the week to two dollars and ninety one cents per gallon nationwide in the u.s. that price is up about twenty five dollars over this time last year and many experts say this may mean prices will remain relatively high for the forseeable future and as far as crude oil prices go west texas intermediate traded at nymex the new york. mercantile exchange is trading today near seventy five dollars per barrel which compares with around fifty dollars per barrel at this time last year and we'll have those final numbers at the closing bell coming right up. and we now know to look at the massive downward move and volatility in u.s. markets and look a look at tech stock to do so we are joined by adam mesh of adam mesh trading group at a big huge news today market down three point one five percent eight hundred thirty

two down. you know just crazy numbers i mean what do you make of that this is that the i.m.f. downgrading we talked about that yesterday downgrading global growth the world economy outlook continuing bond selloff interest rate trade tensions what do you think adam. what a day to be here i mean as a trader and individual trader these are the kind of days we live for we haven't seen the down there like this since february and i think the main cause that i'm hearing when i speak to people is interest rates the cost of borrowing money is going to go up so if you want to buy a house it's going to be higher and that is what's weighing on people's minds and it's been that way since last week and you saw the market start to bubble and now it's broiling you know i saw some of these figures were just crazy there the volatility index the vix traded at the chicago board options exchange the

highest levels of volatility sense april and nasdaq down three point five percent below the two hundred day moving average last time that happened was july of twenty sixteen adam i mean what do you what do you see the rest of the week in going forward your last week we were about the past twenty seven thousand and here we are with this big decidedly definitive dip what do you think going forward. so there's two ways to look at it in february march when we were down like this before i thought the volatility was moving much faster i was surprised that i didn't see a higher increase in volatility today so you could look at it as either a good sign or what i think it is which is the worst is yet to come and when you see the market going down like this you have to remember where we've come from as an example amazon right now is trading around seven hundred so people are like oh it's down

a lot off of two thousand but earlier this year it was below one thousand so even though we're down a lot we haven't really felt that much in comparison to where we've come from adam i want to read you a sub some new news out out today google owned by alphabet is elected to appeal the five billion dollar fine from european union regulators and the fine was levied by the european commission in july over allegations that google actually leverage their prevail and so on their own android operating system to coerce vendors into relationships with google and their products violating and i trust laws that alphabet said at the time that the find that they would appeal but did not file until this week days before a deadline set by the commission for google to amend their business practices commission also find google two point seven billion dollars last year in another and i trust ok so my question is google was down three percent on the day as part of this route in trading and they have shut down google plus that major bug that

you know they concealed google concealed from regulators that exposed google plus users to to compromise i mean what do you make of google i guess what do you make of alphabets the parent company of that stock going forward. well i feel bad for the five to ten people that will no longer be on google plus it was a couple hundred thousand but that shocked me. yeah. the fines for google i remember when j.p. morgan the london whale had a bad trade and they lost billions of dollars and the stock was under pressure for a couple days but i knew that it would go much higher that a couple billion for a company that is nothing so when you think of google they don't control market share they are the market so the five is the find i think it's a one time cost they might have a little bit of a dark cloud by facebook as have but google as a company is going to be just fine the what i worry more about is the snap chat

that someone that's looking to now reinvent their business model and when you see companies doing that that's a larger more systemic problem that you've got a way about adam we're at a time but we're so glad you're here on this busy and sort of depressing day we hope you'll come back some time to talk about tech stocks and other things that's adam mesh the c.e.o. and founder of adam mesh trade group thanks a lot out of great to have you with thank you so much thank you. indian authorities have now confirmed the deaths of eleven people in the aftermath of a fire at a major steel plant another fourteen people are being treated for burns and serious injuries and hospitals a gas fire broke out at the steel plant owned by steel authority of india limited or sale yesterday sale is india's second largest steel producer with the indian state is a large shareholder and the plant has an annual production capacity of over three point one million tonnes each year it is the sole steel supplier for india's

railways and sales largest facility six workers were killed on the job and twenty fourteen in a similar incident sale management says the latest deadly accident will have no major impact on production but even before this deadly safety failure sale has missed supply requests from indian railways for three consecutive years sale stock price fell two percent in trading on the bombay exchange and the national stock exchange of india on the news. the government of pakistan prime minister imran com has announced the government will seek a credit package from the international monetary fund the decision to turn to the i.m.f. may ease foreign exchange flows but the typical i.m.f. prescription of austerity and privatization will almost certainly push mr khan's campaign promises of job creation by public spending off the agenda and may reduce economic growth for years the choice to call in the i.m.f. also puts in question pakistan's current central status and china's belton road

initiative given past threats from u.s. secretary of state mike pump ale to oppose i.m.f. credit for pakistan over that relationship the i.m.f. chief economist has warned pakistan against taking on excessive debt which cannot be repaid in dealings with china. and time now for a quick break but hang here because when we return in the wake of news about apple and separately amazon cloud having tracking chips placed in their hardware and they deny it we speak with cyber security expert the c.e.o. of various software our friend todd shipley and china is building a new social credit system for its citizens what is that and why are they undertaking the massive effort conservative t.v. and radio commentator steve malzberg and ours to scale it off and join us for that discussion as we go to break here are those nasty numbers at the closing bell that going to play.

so what we've got to do is identify the threats that we have it's crazy to. let it be an arms race. spearing dramatic development only mostly. i don't see how that strategy will be successful very critical. to sit down and talk. this is. who they need to actually physically hold it out of the ground you would have well well well well.

there's a lot of money with the oil and with that comes. a lot of a lot of people from all over the country. if you don't make a hundred thousand dollars a year. as a minimum there's an issue. here maybe. they were told sixteen hours a day it's hard work will work it's not easy work and so they want to relieve their stress of how do they relieve their stress these men moved out. of that comfort many. people have been murdered up here people been raped there are massive drug issues up here you have a boom you have everything else that comes along with money.

welcome back iconic u.s. retailers sears is reported planning to seek bankruptcy protection sears has not produced profit since two thousand and ten is close more than one hundred located. and over the past year at the start of those closing sears holding the operator of roughly one thousand sears and k.-mart locations farther in the past sears was once the largest retailer in the world series stock price plunged about a third from their previous day's closing price on the news going as low as thirty six cents before climbing back above forty cents in the long term perspective sirius stock price peaked above one hundred thirteen dollars back in two thousand and seven. and catching up with the quick shifting ride hailing sector there's news to report on the hot battle for market share in asia first a ride hailing service from vietnam is seeking to become a regional player fast go that's fast go founded in june of this year says they are

raising fifty million dollars in capital to fund expansion into media mark and indonesia the company their apps developed by m p o s technology currently has one hundred thousand users second on a larger scale fastow's more established competitor grab based in singapore is pursuing an additional billion dollars of investment this week they scored a large increment of that capital and a boost in publicity with the announcement that microsoft will form a strategic partnership with grab that partnership will include grabs use of microsoft zune or cloud computing and other microsoft products. last week the u.s. government reported that china had compromised computer chips embedded in products that had been sold to amazon and apple both companies and china commented that the

reports were untrue and that there was no evidence to support the claim here discuss this with our cyber security expert and friend of the show todd shipley c.e.o. of vera software todd glad to have you back with us what do you make the other are the claims here i mean chopper china has compromised trip chips included parts i guess installed in part of their motherboard to amazon cloud and apple i mean amazon says they had no idea they say it was false and apple just says no not true and of course china says no no no it's not true i mean could this happen what's your take. oh most definitely i've been talking about this for a number of years about this very possibility of things occurring within the supply chain system china controls everything if you look at what happens with our hard drives and i've mentioned this in written on this before about hard drives in the fact that every hard drive the united states has chinese products in it you know we've got a problem here where we don't control the manufacture anymore and the chinese

government does so it's an issue and it's probably occurred and there stood nine at this point but i think in the near future we're going to find out that there is probably something that did occur and we're all going to be far worse off for it because the chinese have controlled everything we own i mean how do how tight how would they prove this i mean to people like you and vera software and others can they look at it and do some sort of forensic autopsy and to tell whether or not the chips actually existed. well i mean that's part of the problem i mean first of all understanding that it can occur in that there's something there the issue becomes that chips look similar and to actually take them apart and do this kind of review is a very difficult process to try to find this out so there's a gin seas in the background right now scrambling trying to figure out whether this is true or not we have intelligence communities around the world that are are are freaking out about the possibility that they've been owned by the chinese for

a number of years so yeah it's happening and it could be something that is detrimental to a lot of things that are going on in the world because the chinese are expanding in trying to take over more and more of you know what's occurring in the world so it's a big deal and i can understand why apple and amazon would say that didn't happen although you'd prefer that folks to be honest and maybe they are but i mean. how serious should we take them when they say that you know they had no reason to believe their servers have been compromised i mean wouldn't their security people todd shouldn't they be suspect of this i mean in the government we always said you know be aware of what could happen i mean it would seem like this is something you take super serious really and you would know if it happened yes or no. well yes definitely they should be taking a super serious because the possibility is always been there now whether it's

occurring or not whether able to figure it out as a whole separate issue but they should never just dismissed and said no it didn't happen because the possibility is always there putting firmware into things and and changing the coding to be something that it wasn't intended to be is always been a possibility so the fact that they're simply denying it i think is problematic now bloomberg report says that they have the evidence that it occurred but they've not produced any of this yet so we have to wait and see how this all plays out but the possibility is there i'm assured that something did occur and that there's you know the probability that we've been compromised in some level now how well they were able to do it is another issue we don't know yet but i mean the possibilities is totally there. you know what i hope happens i hope that somehow bloomberg produces this evidence and that it is somehow peer reviewed by people like todd shipley the c.e.o. of various software and they get paid for reviewing that because we really need to you know we question more here we really need to know this stuff if they're

tracking us tiger we really appreciate your time. no problem good to see you all right see it again. and we often discuss china and the enormous growth is experience over the past few decades well now china is doing something different called a social credit system and it's expected to be fully functional by the year twenty twenty what is it and why are they doing it to help us out we're joined by conservative t.v. and radio host steve malzberg and r.t. correspondent and china expert caleb bop and gentlemen welcome we love covering china and caleb you talk about it about every other day and good on china for making such great economic progress but one of things we always question around here are the numbers so what i say the numbers matter they are important in china we actually question more about those numbers than other countries just given the close society and like if the g.d.p.

numbers are correct if it's based upon real data that we may be can't see so i suppose there are sort of growing pains in china opening up here and i'll attribute this skepticism by some of some of these numbers to the growing pains but at the same time this new social credit system seems to be trying to fill a gap in numbers that do not exist at the current time and that is things like credit scores for millions of chinese who have no or very little such credit history so the chinese government is creating this new system steve explained it to us how does it actually work. well ok this is orwellian in nature and it's right out of a science fiction movie and to me it's very scary and it goes well beyond financial credit scores the way i see it the numbers that are important are about one point five billion people are going to be spied on surveilled totally by the chinese government with the help of two hundred thirty close circuit television cameras

facial recognition artificial intelligence algorithms and basically it's to monitor and keep score and keep tally of good things they do and bad things they do and based on the number of good and bad things you get a trust worthiness score and then if you do too many bad things you're put on one of a dozen blacklists yes you get blacklisted group together with other people who do this same or similar bad things that you do and you could be punished for instance you might not be able to travel you might lose your internet access you might not be able to stay in a hotel etc so this to me is it's not only big brother it's gigantic brother and i don't think anybody has ever seen anything like it it's very very dangerous plus they're extending it beyond their own country which i'm sure we'll talk about later to infringe upon the sovereignty of foreign nations right good explanation and kaleb i mean i can understand if you know people that don't have credit

histories and the government wants to try to help out although i assume that they can go to ali baba the big e-commerce site and use some of their their data but is it a concern i mean do you think that they're going to the point where it's really more you know social engineering where they're trying to control and coerce the population as opposed to just a real credit system as we know it like in the u.s. or in the e.u. . well bart i think it's pretty clear such a system would never be implemented in this country we our legal system is very different in china so is our culture so is our history but it's pretty clear that president xi is very popular in china and a lot of people in china actually support this move and the argument that they make is this they say look everyone knows that american corporations hire people and fire people demote people promote people based on their values they look for people that are promoting their values and put them forward and if somebody is not promoting their values they push them backward or maybe they don't hire them or

maybe they get rid of them you know that american corporations explain all things are once you stop telling. you my hate the banks by where do you put your money. you put them in the bank and what happens if the bank goes on and. on anymore these kind of reasonings would be much more a handful to make people on the stand of you know dynamics there in why people locked consequences of prices that of post nobody wants. the wings of the united states is dangerous for most of the illegal immigrants. just as there was a simple i want you. to sum this up but if many of them look for refuge in the so-called sentry sides the drift used to share information about undocumented

migrants with federal authorities the best person to ask than. listen to point zero and up next time i get i'm in a lot of class and i want to. watch as the options to stay in the country with donald trump in the. struggles of many couples. you were trying. to appear with all of the. google the good elise briefing from the web giant admits its struggle with internet free speech control certain content that the likes of facebook and twitter are to. israel blocks the u.s. student from entering the country over her political views leading academics

worldwide are demanding she be allowed in. also ahead this hour one step closer to a space age health care of russian scientists to just set off.