thousands upon thousands of families are stranded in airports as the story of british travel giant thomas called has completely collapsed there as america's lawyer joins us to break down the messy breakdown of the british being human rights we're seeing today 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 4 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 a 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. tiene 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 buy that looking at historic data this passed by overnight in the overnight funding rate beat out the 2 former crises we had in $22008.00 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 a ripple operations paul came out with the 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. 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 record which was only for one day it was nothing compared to this this spike higher and it kept on spiking all. weak

even with repeated massive attacks by the fed to bring it back under control the bottom line is that the fad lost control of the very benchmark rate that it manages and they're 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 more come back to the show there is a new indication that the chinese government is increasing its oversight of their home grown tired 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 do you make of this. thanks for having me i think the most important thing is that the data is the key and who controls more

straw man of the part from the companies or the giants like facebook because the not only know of or have also know there was sort of a transaction instead of making so one we're talking about china and the chinese a caravan is obviously very much concerned and they want to know what consumer habits are and then what they can really learn and especially on the back of what is happening in hong kong ongoing unrest so if chinese men can learn more about the consumer habits and the way that they think i think they can implement more policies of the so called the business friendly policies this can really help them grow to the. companies but i think on the on the on the back there are other age and i think the government is more interested to know more about the public then. anything else so that they can cater policies according to

those particular nature or particular things and in the us isn't that kind of what the us 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 as a propaganda so why is the us 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 look in companies like way the cia version of israeli an intelligence they are all based 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 the all of a sudden you can point fingers to other countries and then saying that hugh i'm not

unless major companies such as i did i leave i want to do what they want to do and then now the government is intervening granny you are actually very much at the forefront of these things because if you defend the u.s. and the 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. government in relation to war google and facebook on what they can really do and award because so yes i completely can carry the pointing fingers to shine on their very much to the same thing. and in terms of pointing fingers between the u.s. and china trade talks are no scheduled to resume on october 10th do you think we might perhaps get a partial deal coming out of the post. seem to be ratcheting down from previous

escalations president trump seems to be increasingly cognizant of some of the risks here. i think yes the president is certainly very much and shows especially in the light of the upcoming elections that just on the door so so i think presidents certainly want some sort of a mini deal china in order to eradicate all these and turn it to that we have in the market but that doesn't mean that and we need to 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 march. until an address where you're not going to move forward and even if you look at the markets especially the friday as market 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. convinced of either this mini deal wish to a larger extent is already priced into the market is really going to do any job in terms of attaining or achieving the record highs and real 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 the chinese economic numbers they are incredibly feeble and if you look care of the business and the client business climate of in the u.s. and the overall situation example one of the i lament that you've discussed. in the

report that has cohen that is also very much the trade for plays well named muslim of think markets thanks so much for your insights. 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 is on the ground in canada and joins us now to bring us up to speed on the case so alex mayes 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 their documents that the defense team is trying to get so what we're hearing today this is a day one of 8 days of being in court the last time i 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 fact that 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 you just have extraordinary powers in this country and that they use these powers on the behalf of the f.b.i. in. 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 the red 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 up 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 and 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 a there of pork beef these are all things that basically there's tariffs against now from the from china they're just not letting us in push into their markets anymore also 2 canadians have been put on death row in china they're accused of drug dealing as well as 2 other canadians are. 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 cars. donna

allison ahead of 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 drink group led by masayoshi sown while the injury from a delayed i.p.o. was still fresh more injury make sure the unsold seem to arrive in the form of an eye wheezing wall street journal profile of newman the week company's co-founder and now some members of the we board of directors along with softening founder and chair muscle yoshi sown were reportedly ready to push for mr newman to be removed as c.e.o. this week on monday rule warders reported that mr newman was no negotiating with the corporate coup leaders who had put their puts on hold while talks proceed we

were still late i.p.o. an additional embarrassment have been costly to their biggest investor softbank softbank and their founder mr sloan have until now enjoyed a priceless reputation for clear vision and a golden touch with regard to tech 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 were 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 turley trying to raise it funds for vision fun too and so that's going to be very difficult to explain to masters why we work failed why over failed 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 cars. there are 3 it's pretty emblematic between the combination of we work

and softbank and then the vision funded almost on an expert almost seems to be sort of perfect storm of the creature question whether this model can exist or with with human corns and major investors like most she saw him coming in and making the same level of return on investment they used to and exactly what his model previously was betting on the entrepreneur and if he 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 0 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 british agent thomas cook has collapsed molly barrows of america's lawyer joins us shall to break down how the british bank when on and as we go to break here the numbers at the club.

so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. theory dramatic development only. i don't see how that strategy will be successful very critical.

you know world big part of the law and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smart 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 washington closely watching the hawks. this is a story about what happens auster a stray bullet kills a young girl in the street. what happens to her family and daughters in florida the mother daughter is buried in a cemetery in healing this is 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 the . shock shock is far society we feel. we don't know just for the. end of this trial unfortunately you. will still not know all children. the latest german p.m.i. is the latest sign of a slowdown in europe's biggest economy most said. italy the p.m.i.

for the manufacturing sector showed increasing weakness with that figure falling to 41.4 in september down from 43.5 in august that is the lowest bigger 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 us china 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 embryo 4750000000 according to people familiar with the matter that use antitrust investigation could take as long as 5 months. the world's oldest travel firm 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 does 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 so 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 that thomas cook had in fact gone into administration and all flights and bookings had been cancelled they reportedly did it 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 the rescue phase get these travelers home 150000 affected immediately by this collapse so they're going to run a shadow airline basically they're using other airlines to help get these travelers home british airways easy jet they're bringing back from destinations all over the globe from mainland europe to north africa the middle east the u.s. the caribbean travelers of course saying long lines disruptions at airports but the british. says that those 1st flights to bring people home that 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.'s 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 trips . 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 a toll scheme it's where customers that have their packages package holidays protected under this and it guarantees the bookings of 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 their words are 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 i hope everybody makes it home safely molly barrows contributes america's lawyers and. joining us. thanks daniel.

wilson's auctions will be selling off more than $660000.00 and bitcoin this week the crypto currency 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 narrow coins for u.k. law enforcement and in february they sold their currencies by belgian authorities there isn't just a point on the menu as there are also smaller quantities of cash stratus civic. and . the auctions are scheduled for wednesday and thursday of this week with lots of the big one radio a quarter to 2 bit 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 at

a huge discount for the block auctions so you could actually make a lot of money here by the minute discount and they're just regular old currency exactly lou for this time boom bust on you tube dot com boom us r.t. see you next time. the tense situation in venezuela is still over the new problem in venezuela is not that socialism has been earlier but that socialism has been a holy. grail. side venezuela things are different we're going to announce

sanctions against petroleum to venezuela so as you. have a supplement to. get out of that. battle to stay on the path to the madness the moment. the whose story it isn't new makes him cold in henry kissinger to tell him that it would not be tolerated in latin america an alternative economic and social system could take hold and therefore the policy would be to make. the chilean economy scream so wants now making the economy of venezuela screed. in 2040 you know bloody revolution here to the demonstrations going to be

relatively peaceful protests to be creasing the violent revolution is always spontaneous or is it. spilling even to 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 . think we.

are getting. breaking news this the us the noise visas to several members of russia's delegation to u.n. general assembly starting today including the chairman of the foreign affairs committee it's a move that. moscow will tell you more coming up also ahead. you have stolen my dream speech my childhood with your and. climate activist credit grabs global attention by addressing world leaders at the u.n. but it seems not everyone is buying into her very emotional speech. good acting she has her. father to thank the script seems like a.