huawei lingers on another move in the global game is unfolding in canada as a company. that for her showdown in court our correspondent alex the hell of it is on the ground in canada give us the latest on the state of the case plus. thousands upon thousands of members are stranded in airports as the story of british travel giant thomas called has completely collapsed there as america's lawyer joins you show the breakdown the messy breakdown of the british behavior experts say today's show can put you in a business mind so that after just 27 minutes let's go 'd. the federal reserve is conducting repo operations for the 5th day in a row after interbank borrowing rates skyrocket to 10 percent more times its normal barring rate forcing the new york fed to get the interest rate under control this

move is the 1st of its kind since its 2008 financial crisis and the scary part is the fed still doesn't know what caused the spike so let's take a step back and really understand what the repo market is it's essentially a short term borrowing market where banks and institutions lend to one another banks exchanging billions of dollars every day and overnight lending in order to maintain their reserve ratios now this borrowing isn't free you have to put up collateral usually in the form of treasuries or other tear one securities so under normal circumstances the repo market runs smoothly the rate is steady around 2 percent and the entire system is dependent on trust trust that the borrower can pay you back plus interest it's a great way for commercial banks to make money now what happened here was when the rates suddenly spite we don't actually know what happened yet because we haven't seen a spike like that since 2008 and in 2008 when the rate suddenly shot up indicating that there was a risk and uncertainty in the. market there were rumors going around that your

partner banks were insolvent so when you hear something like that as a bank that's a huge risk you don't want to lend to an insolvent partner so when you see a risky client you want to charge them 5 percent 10 percent 15 percent for taking a risk like that so when the bank doesn't know who the insolvent partners are all of a sudden you have a standstill in the repo market credit stop circulating liquidity dries up and everyone is at a mexican standoff now most of the media has been downplaying this issue we've had analysts and bet officials coming out to reassure the markets saying that this was not and solvency issue like back in 2008 this was a technical mistake but officials said that the instability 2 in the overnight lending does not suggest any underlying credit concerns experts say that this is a temporary phenomenon that would fade entering this week but do we really by that looking at historic data this passed by overnight in the overnight funding rate

beat out the 2 former crises we had in 2002008 are we really going to ignore this and say oh it's just an end of the quarter phenomenon no interest has been pushing outside of the fed all year and this past week cracked it wide open the same thing happened in august of 7 leading up to the financial crisis and back then we got the same rhetoric the fed has everything under control. so now we're in day 5. paul came out with a call little speech to placate the streets and reassure that more injections are on the way so doesn't look so temporary anymore right should we expect q e 4 soon pomo the problem is that this is persisting and it's not fading as they said it would so now the new fed schedule shows that they believe the problem will persist on for about another month and maybe longer they left the door open for

that so clearly we're not talking about a small problem anymore this spike broke december always record which was only for one day it was nothing compared to this this spike broke higher and it kept on spiking all week even with repeated massive attempts by the fed to bring it back under control the bottom line is that the fed lost control of the very benchmark rate that it manages and they are not owning up to it. and as the 3rd resumes intervening in the capital markets chinese government officials are stepping up oversight on their homegrown companies we're joined now by chief market analyst of think markets to look into this. come back to the show there is a new indication that the chinese government is increasing its oversight of their homegrown tech companies government representatives are being sent to work with about 100 local companies including some big names like always barber just to just

to name one in order can to conduct government relations information exchanges what's what's going on here and what you make of this. thanks for having me i think the most important thing is that the data is key and who controls more of the pot from the companies or the giants like facebook because the not only now it's they also know there was sort of a transaction start of making so. when we're talking about china and chinese it is obviously very much concerned and they want to know what consumer habits are and then what they can really learn is freshly on the back of what is happening in hong kong ongoing unrest so if chinese men more consumer habits and the way that they think i think they can implement more policies of the so called the business friendly policies which can really help them grow to the.

companies but i think on the on the on the back there are other agendas i think the government is more interested to know more about public than anything else so that they can cater policies according to those particular nature or particular things and in the u.s. isn't that kind of what the u.s. was previously doing to facebook and google increasing their oversight and allowing 0 for more exchange of information between google facebook amazon and the regulators they were monitoring post ads and propaganda so why is the u.s. now so quick to criticize china for now increasing oversight of private companies when the u.s. does exactly the same thing. i cannot agree more i mean in fact if you live in israel companies like way and the cia version of israeli intelligence they are all in the same building can you imagine the

amount of data that they are gathering so yes i think it is. it is a little fast that you can all of a sudden you can point fingers to other countries and then saying that hugh i'm not letting the major companies such as i did i leave i want to do what they want to do and then now the government is intervening reign you are actually very march at the forefront of. these things because if we defend the u.s. and there how the intervening with the facebook business or even with google's business the freedom of what we call the freedom of speech or the freedom of doing things isn't really there because everything is pretty much dictated by the u.s. and in relation to war google and facebook and as on what they can really do and what the counter so yes i completely can carry the pointing fingers to china one of

the very much to the same thing. in terms of pointing fingers between the u.s. and china trade talks are no scheduled to resume on october turned do you think we might perhaps get a partial deal coming out of this as both sides seem to be ratcheting down from previous escalations president trying to be increasingly cognizant of some of the risks here. i think here the president is certainly very much anxious especially in the light of the upcoming elections there just on the door so so i think presidents certainly want some sort of a mini deal china in order to really cared all this tentative that we have in the market but that doesn't mean that and we need deal can actually turn into a major deal so yes by betting on just this morning some sort of a small deal with china may stimulate some sort of a confidence in the market but in the on the longer term i think the issues are

still very much. until and unless they're not address we're not going to move forward and even if you look at the equity markets especially the friday its market a read of price action and today's price action the market is still struggling to break the previous record highs and the reason is that investors are still not that much convinced of either this mini deal wish to a larger extent is already priced into them. good is really going to do any job in terms of attaining or achieving the record highs and real who do you think needs this deal more china is obviously shoring up their asses in anticipation for a drawn out fight and for the 1st time in a few decades china has become a global net seller dumping $40000000000.00 in assets in order to convert it into dollar reserves so who do you think needs this deal to happen more. i think both of them need this to heal happen very soon because if you don't hear the chinese

economic numbers they are incredibly feeble and they feel their care of the business and the client business climate of in the u.s. and the overall situation of exactly one of their i lament that you've discussed in the report about house call and that is also very much the trade for play as well. slum of think markets thanks so much for your insight. and as a trade war rages on one key development in the stalemate is moving forward as huawei c.f.o. men lonzo heads to court in vancouver to dispute heard sustainment r.t. correspondent alex mahela on the ground in canada and joins us now to bring us up to speed on the case so alex may's defense team claims and i quote the u.s. is attempting to use these extradition proceedings for economic and political game what can you tell us. well this is their defense and this is the documents that the defense team is trying to get so what we're hearing today this is

a day one of days of being in court last time he was in court was last may and we're hearing that in front of the justice in the court here in british columbia that there is a pile of files that are sitting there because there's a lot of paperwork to go through that meg's team wants to see this paperwork they want more paperwork they're claiming that this is all part of a bigger scheme from the united states to get the canadian authorities involved to arrest manning and that that scheme actually deals with the. there's a trade war going on with the u.s. and that they want to use her as a bargaining chip in all of this now with that said the crowd attorney today said which is the other side the prosecutors there saying that you know what this is just fishing we've pushed out i don't know how many documents none of this proves any of the above but the defense is sticking to it and they believe if they find the right documentation they might be able to get men to go free and on the top of that to avoid extradition to the united states eventually now what they're claiming

is that the c.b.s. a which is the canadian border service agency was involved in this that they just have extraordinary powers in this country and that they use these powers on the behalf of the f.b.i. and other agencies of the united states along with the r.c.m.p. here in canada that manning is actually suing the r.c.m.p. the royal canadian mounted police in the c.b.s. a in a civil suit saying that what they did was wrong from the very beginning the extradition lawsuit is not going to be happening until january 2020 so it's a few months away but this really is for the defense right now is the big part of their argument because we know the accusations what they are basically making and way they're accused of 13 different charges ranging from fraud to conspiracy basically to try to what the u.s. is saying they've tried to avoid u.s. sanctions kind of go around the back door to do business with iran both while way and banks say that simply isn't true so this is obviously something that's rolling

out but if you look at the situation right now who knows what kind of documentation is going to pop out they do have an argument there and a lot of canadians agree with that and alex with the defense for him is one is weighing finally just saying pointing at the elephant in the room and saying look you're just canada you're doing this on behalf of your friend the united states how has this case at this point affected canada's relationship with china. it's a horrible thing and i mean canada's relationship with china has been on the sort of a. downward spiral for a while this is just added to it and to leaps and bounds i have to say added to it look we don't we export it can all it's are there of pork beef these are all things that basically there's tariffs against our from the from china they're just not letting us and push into their markets any more also 2 canadians have been put on death row in china they're accused of drug dealing as well as 2 other canadians are have been in jail in china since this all started up they are accused of spying in china so some people are saying well you know this is obviously related some and

the chinese are obviously denying this but any way you turn it it's not a good place for candidates have be especially when you have to monsters of nations like china and the united states fighting this tariff war i take correspondent allison to help us thank you so much for being here. thank you. and the drama surrounding the delayed initial public offering for we work seems to have snowballed into a larger crisis of confidence for that company and perhaps for one of their major investors the famed soft bank group led by masayoshi sown while the end injury from a delayed i.p.o. was still fresh more injury makes for the insult seem to arrive in the form of an eye raising wall street journal profile of adam newman the week companies co-founder now some members of the we board of directors align with softening

founder and chair muscle yoshi's so on were reportedly ready to push for mr newman to be removed as c.e.o. this week on monday ruled reuters reported that mr newman was now negotiating with the corporate coup leaders who have put their puts on hold while talks proceed we work still late i.p.o. an additional embarrassment have been costly to their biggest investor softbank softbank and their founder mr stone have until now enjoyed a priceless reputation for clear vision and a golden touch with her. detect investments. so this entire thing just kind of unraveled in a spectacular fashion ever since the release of the prospectus where investors could clearly see that we work is not a tech company in any shape or form and that they were only trying to push themselves as such in order to attain a higher tech multiple way and go ahead yet in terms of muscle yoshi so he has previously had an impeccable track record but now he's going to have a lot of trouble in because he's terminally trying to raise funds for vision fun

too and so this is going to be very difficult to explain to investors why we work failed why overfilled lift and slack why they all failed he invested in we work 9 separate times for a total of over $12000000000.00 over the last 3 years and that was essentially just burning cash right there are 3 it's pretty emblematic between the combination of we work and soft bank and then the vision fund it almost i'm not an expert almost seems to be sort of perfect storm of the creature question whether this model can exist or would would take unicorns and major investors like most she saw him coming in and making the same level of return on investment they used to exactly as model previously was betting on the entrepreneur and if he ousts newman here that actually goes against his entire philosophy so now founders are going to be reluctant in going to him for a couple because they're going to fear that one day he's going to out me as well the founders can be inconvenient time now for a quick break but hey here because when we return thousands upon thousands of

travelers are now stranded in airports as the story of british travel agent thomas cook has collapsed molly barrows of america's lawyer joins us to break down how the british banking mess went on there and as we go to break here the numbers at the club. join me every thursday on the alex simon chill and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see you then. you know world of big part of the lot and conspiracy it's time to wake up

to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other it's time for critical thinking it's time to fight for the middle for the troops the time is now for watching closely watching the hawks. this is a story about what happens auster a stray bullet kills a young girl in the streets. what happens to her family and daughters in florida the mother daughter is buried in a cemetery in healing messes with your head what happens to the community the public was screaming for a scapegoat the police needed a scapegoat so why not choose a 19 year old black kid with

a criminal record who better to pin this on than him and what happens in court b b b b. shot after shot as far as society revealed. we don't know chills just for. the end of this trial unfortunately you. will still not know what childress. the latest german p.m.i. is the latest sign of a slowdown in europe's biggest economy most specifically the p.m.i. for the manufacturing sector showed increasing weakness with that figure falling to $41.00 in september down from 43.5 in august that is the lowest figure and more than 10 years and the p.m.i. figure below 50 signals a sector or

a contraction and the lower the number of falls below 50 the more severe the slowdown the euro fell nearly half a percent against the dollar on the latest negative news for german growth and the auto stocks noticeably waned across the european stock markets fall german figures for the 3rd quarter are now very likely to show a 2nd straight quarter of economic contraction putting the country in recession german exports have been battered by sagging demand attributed to factors including the u.s. trying to trade fight and the lingering bags of the bottle. investigators in indonesia have determined that a lack of oversight and design flaws played a role in the deadly crash of a boeing $737.00 max jet in october according to a report from the wall street journal government officials also identified pilot error and maintenance mistakes as some factors that cause a line or flight to go down but the main factor one of the main factors was a malfunction in the automated flight control feature of the 737 max plane which

caused a nosedive shortly after takeoff a similar crash happened on a ethiopian airlines max jet in march which then prompted the grounding a many in the 37 max fleet meanwhile boeing will face an e.u. antitrust investigation into their bid for control of the commercial aircraft arm of brazil's embraer with the offer boeing values that segment of embry are at 4750000000 according to people familiar with the matter that use antitrust investigation could take as long as. 5 months. the world's oldest travel farm thomas cook has collapsed leaving their planes grounded and 150000 british travelers stranded abroad the british government and other agencies are now working to with them to bring them home legal journalist molly barrows contributor with america's lawyer has more so molly how did that happen. well a lot of debt thomas cook sure have that 1700000000 pounds of it christine company

executives were in talks all day yesterday in london pitching proposals to stakeholders as well as shareholders on ways to secure a deal with creditors and say this 170 year old travel company thomas cook though had agreed to a 900000000 pound bailout but that was then that the company was then told it needed to come up with another $200000000.00 pounds and that was the deal breaker the talks collapse they just couldn't come up with that thomas cook had also asked the government for a $150000000.00 pound bailout which was denied so to this morning the united kingdom's aviation regulatory corporation the civil aviation authority announced it thomas cook had in fact gone into administration an all flights and bookings had been cancelled they reportedly did at that early that was when the largest number of the company's 94 planes were on the ground kristie so that was their way of i guess trying to make it as convenient as possible but it certainly is not for all those people that are stranded abroad and mallie know that the collapse has happened what does it mean for travelers employees how do the who do they even contact to try to figure this out. well based on the number of reports the

government is essentially being the go between now and providing a lot of that information because like i said based on a number of reports travelers have not had a lot of luck getting a hold of the travel company but the government says that it's going to step in and rescue if you will in a rescue phase get these travelers home 150000 affected immediately by this collapse so they're going to run a shadow airline basically are using other airlines. helped get these travelers home british airways easy jet they're bringing him back from destinations all over the globe from mainland europe to north africa the middle east the u.s. the caribbean travelers of course in long lines disruptions at airports but the british government says that those 1st flights to bring people home it actually already landed and all the thomas cook holidays are now all canceled the government told people if you don't have to come home if it's not time for your trip to be over finish it up keep it as planned leave as scheduled and they say that they

should be able to get you home but the government is not running that original airline it just intends to have this rescue phase finished in the next 2 weeks and in fact this is the largest ever peacetime repatriation in the u.k. history and they've code named the operation matter horn and as for the employees some 21000 worldwide 9000 of those jobs in the united kingdom and it looks like this collapses certainly left them at risk there's no word yet if they're completely out of a job i guess that depends on if somebody else were to try to take over the company but for right now it looks to be that they are unemployed so now will the travelers who previously have both trips with them be out of any money related to their trip . well this is interesting so if they do feel like they need to recoup some costs associated with this there is it's all protected under britain's a toll scheme toll scheme it's where customers that have their packages package holidays protected under this and it guarantees the bookings that package holiday

makers will be protected it covers holiday accommodations as well as return flights if they happen to be abroad at the time of the company collapse of future bookings are protected as well the total cost it's going to be paid by this atoll scheme is an estimated $600000000.00 pounds now that the company has gone bust so of course these customers are anxious they're worried they might even get a victim from some of these hotels because the way it normally works is these travel companies pay for them after they've already gone on their holiday so they're worried. going to get kicked out either way a lot of folks want to get home and it is a sad thing to watch this old company collapse like this and certainly in such a traumatic way for a lot of people traveling yeah i hope everybody makes it home safely molly barrows contributor america's lawyer thanks for joining us. thanks. wilson's options will be selling off more than $660000.00 and bitcoin this week the

cryptocurrency was obtained during a criminal case involving the illegal sale of online personal data and hacking services wilson the u.k.'s largest independent auction house has previously handled these types of crypto auctions in january they handled the salesman arrow coins for u.k. law enforcement and in february they sold their coins seized by belgian authorities there isn't just a point on the menu as there are also smaller quantities of cash stratus civic. now auctions are scheduled for wednesday and thursday of this week with lots of the big one radio a quarter to 2 big quine. so so with all of this that seems to be a lot on the menu and a lot of these are going to be sold out a huge discount for the block auctions so you could actually make a lot of money here by the middle discount and they're just regular old currency exactly luke for this time boom bust on you tube dot com boom us are to

the next time. i. turn the situation in venezuela is still all over the news the problem in venezuela is not that socialism has been really. but that socialism has been only implement inside venezuela things are different we're going to announce sanctions against a troll venezuela socio. political moment to. get out of that. battle see on. the map of the moment focus on the who story isn't new nixon called in henry kissinger to tell him not be

tolerated in latin america. an alternative economic and social system could take hold and therefore the policy would be to make the economy scream so wants now making the economy of venezuela screed. and this is when the bank is solvent and folks are concerned about their money so they. withdraw the money so here you have one of the foundation blocks. derivatives market and the repo market. it's being bailed out every day by $75000000000.00 a day the biggest per day for our i'd never seen a bailout on an hourly basis this big history. in 2040 you know bloody revolution to the demonstration going from be relatively

peaceful protests to be creasing the violent revolution is always spontaneous or is it. spilling into the former ukrainian president recalls the events of $24.00. those who took part in this today over 5000000000 dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. i i. i'm sorry i. didn't get it is something i.

would. look at. russia is being investigated 'd over claims it gave manipulated data to the world anti-doping. watchdog. over the country's participation in next year's olympics the russian side says it has fully complied with all regulations. young climate it. addresses a summit of the world leaders in new york telling them that they have stolen her childhood by not taking action on climate change. and the u.k. follows washington's lead saying that there is a high degree of probability that iran has attacked the saudi oil facilities with the british prime minister stressing that he is ready to join the u.s. military effort in the gulf region if.