introducing the well-connected lincoln mkc. >> o'donnell: elizabeth holmes was just 19 years old whene dropped out of stanford university with a dream of creating a company that would revolutionize blood testing. as we first reported last may, holmes founded the start-up theranos, and boasted her technology could take a pin- prick worth of blood from the finger and perform hundreds of laboratory tests. it was, she claimed, "the most important thing humanity has ever built." at its zenith, theranos was worth nearly $10 billion, and elizabeth holmes became the youngest self-made, female billionaire in the world. today, she and her company's one-time president stand criminally charged by the u.s. government of perpetrating a multimillion dollar scheme to defraud investors, doctors and patients. you're about to hear from insiders how the theranos deception worked. >> elizabeth holmes: our work is in being able to make testing more accessible. >> o'donnell: elizabeth holmes built her company theranos on this invention she named the edison-- a miniaturized blood analyzer that would disrupt

according to us regulators, it simply that elizabeth holmes, who is the compa ny‘s founder and simply the company, misled the investors. they did not do they promise to do in terms of investors and as well is to pharmacy chain to walgreens, which had put the test on the market. as a result, the test on the market. as a result, the securities and exchange commission here said they misled investors and that is why they are facing with these criminal charges and civil charges here in the united states. i guess a broader lesson here though which is people are willing to take a big bet on the health care sector in the us because if that that comes off, the size of the market is so far, you're going to make a lot of money. and, i mean, look, theranos was one of silicon valley's unicorns. that is because elizabeth holmes went around in a black turtleneck, she was likened to the female steve jobs. there black turtleneck, she was likened to the female stevejobs. there was a lot of enthusiasm when it comes to this company and many people thought this company and many people thought this is just

elizabeth holmes is facing fraud charges, accused of defrauding dares and patients anstors ouof llof dollars. >>> a ruling by federal appeals court could affect efforts the control homelessness. the 9th sixty court of appeals determined that governments can not make it a crime to sleep on public streets or sidewalks when no homeless shelters are available, based on a case in boy see but could affect other cities. san francisco is looking in to its ordinances to see if the city could be affected. >>> in the past hour, president trump said bob wood ward's new book about the administration is quote a work of fiction. >> the book is fiction. i heard somewhere where they said the assassination of president -- never even discussed the back is total fiction. -- book is total fiction. >> reporter: president trump questioned the nation's liable laws tweeting isn't it a shame someone could write an article or a book and get away with it. fear, trump in the secretary sa said most of the people he interviewed are former staffers. >> same rehashed stories, just because they keep getting told does

founder elizabeth holmes became a media star with her claim that with a single drop of blood, she could detect many diseases. a series of articles by the "wall street journal" exposed the company as being built on a lie because the technology never existed. holmes faces fraud charges and the board of directors is closing the company. shareholders will get nothing. >>> how about this, anoth burnet home in the east bay just hit the market. it's a manufactured home in oakland's rancho antonio neighborhood. how much? you see a little charred there. $350,000 bucks. according to zillow the home is ready for demolition and rebuild. zillow predicts neighborhood home values will increase more than 7% next year. a house three doors down has an estimated value of about 1.3 million bucks. >>> nike is releasing its first commercial with colin kaepernick. >> believe in something even if it means sacrificing everything. >> the two-minute spot showcases tloo athletes overcoming adversities to chase their dreams. it's voiced over by the former 49er quarterback. nike is generating a lot of controversy. t

the founder elizabeth holmes and the former coo face fraud charges. the "wall street journal" reports that the company will dissolve and pay back some creditors. after rocketing to a $9 billion valuation reports found that the blood testing device was unreliable and fraudulent. >>> an innovative way to prevent package thefts backfires. >> how these suspects were able to break into a bay area apartment complex. it is 4:42. we'll be right back. treated with patented paintblock technology. paintblock reacts with the water in latex paint to form a micro-barrier against paint bleed, giving you the sharpest lines possible. get professional results with frogtape... no messy lines, no paint bleed. for sharp lines every time, frog it! several packages at a concord apartment complex. the >>> new video out of concord shows when crooks got packages at a concord apartment complex from a kiosk. it's to prevent the package porch thief with kiosks. but thieves managed to figure it out. there are some working theories on how they did it. >> one, somehow they got an in

the journalist who wrote the act on the rise and fall of the company and its founder elizabeth holmesill be joining us live. >>> plus, shares of walmart up nearly 15% in just three months. and a new note from barclays says there could be more upside ahead. i think that she's a very nice girl... ...you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital. >>> welcome back to "the closing bell." we have a half an hour until the bell rings the dow is positive. it's been going steady all day it's the technology sector that has seen the bulk of the action. visa, microsoft and american express are the biggest decliners right now. >> time for a cnbc news update and contessa brewer has it for us >>> here's your news update right now. questioning of supreme court nominee brett kavanaugh began this morning as

elizabeth holmes.atients and investors out of hundreds of millions. the company claims to have invented ground breaking blood technology. reporting found that the twice was unreliable and a fraud. the executives will face a criminal trial. >>> meantime, gwyneth paltrow company will settle a false advertising suit for $145,000. prosecutors in 9 bay area counties alleged that 3 of the female sexual health products were misleading and medically unsupportive. a cure all for female health and hormonal issues. >>> a democrat that wanted a in- in-out boycott tells it is over. i put one tweet out at 10:30 at night and it turns into a whole thing. we raised so much money in small donations, one tweet, amazing how it became this big boycott. he targeted the company after it was revealed last week that the chain donated $25,000 to the california gop. the hash tag, boycott in-n-out. they make equal dough nations to both parties this year. >>> public parking, getting a little steep for drivers. it is not the price

. >> elizabeth holmes was a charismatic stanford dropout, who promised to revolutionize blood testingby using this small box, supposedly filled with dazzling technology. the invention was backed by hundreds of millions of dollars from a-list investors, until the theranos story unraveled. >> this is one of the most epic failures in corporate governance in the annals of american capitalism. ( ticking ) >> dr. ann mckee has spent 14 years looking at the brains of hundreds of athletes who suffered concussions. earlie

founder elizabeth holmes became a media star for her claim that with a single drop of blood she couldt many diseases. however, an investigation exposed the company as being built on a lie, because the technology didn't exist. holmes faces fraud charges and now the board of directors is closing the company. only $5 million is left, which will go to creditors. shareholders will get nothing. >>> uber is rolling out some new features designed to protect drivers and passengers. one of the features called ride check will detectentsr seems unusual or a car is overdue, indicating an increased safety risk. drivers will have access to a new hands-free feature, an emergency button to summon help. we'll see some of these changes in the coming months. >>> resistance from within the white house, the anonymous senior administration official who's now blasting the president. >> reporter: a plane crash survivor who suffered severe injuries made a miraculous recove recovery. ♪ i put a spell on you ♪ yeah, because you're mine ♪ with chase atms serena can now grab cash on the go, all with the tap of her

this means more bad blood for founder elizabeth holmes who promised to revolutionize blood testing.enied the charges. coming up, the technology matching cancer patients are treatments specifically for them. this is bloomberg. ♪ emily: a new global platform is aiming to revamp cancer care. river was developed by a harvard-trained oncologist. the ceo and cofounder told our chief asia correspondent the startup launched in china with a number of cancer patients is exploding. >> we did not pick the timing. we have been in china over three years. we have endeavored to build our platform as a global one. >> in a nutshell, how does it work and what need is it filling? >> the problem driver salsas the following -- we have a market failure in terms of how a patient gains access to treatment. the doctor did a good job interfacing with the patient and getting them treatment. >> there's a lot of information. how do you get the right treatment? >> there's a ton of information. the only way the patient can get access for this treatment is through a physician. giving the is patient access to the mo

months ago the ceo, elizabeth holmes and a colleague were indicted on federal wire fraud charges.owingly lied about the accuracy and reliability of their products. >>> tesla is being sued by a woman who said she had her model s in autopilot mode when she rear-ended a stopped fire truck at 60 miles an hour. she had minor injuries. the crash happened in utah in may. the lawsuit alleges that tesla salespeople told her autopilot would ensure the car stopped on its own if something was in its path. >>> this weekend will mark the official end to demolition of the old eastern span of the bay bridge. a pair of foundations from the original 1936 foundations will be imploded on saturday around noon. yes. a little bit of that. this is what it has look and sounded like during previous implosions. we thought caltrans had everything done last november after crews imploded a total of 18 foundations after dismantling the remnants of the old span. three foundations that were purposely left in place to be wa by y bheth by e new parks shoreline. here are renderings. for saturday's implosion, the chp

paul: former ceo elizabeth holmes, she's been indicted for fraud and the sec barred her only 10 yearr officer, he's getting -- elon musk if succeeded he would get banned for life. >> this is the opening bid of negotiation and they'll be a settlement, i think, between tesla, they are not going to put him out of business but at the least perhaps tesla ought to think about thinking succession strategy in case for some reason elon musk gets set aside in the future. paul: kim, tesla has a market cap of about, i think, even after the big 14% plunge on friday, i think it's still 45 billion which believe it or not is bigger than ford's which sell a lot fewer cars yet they are bleeding cash, they have a lot of bonds coming due in the next six months and we don't know if production capacity can meet the profits they need in the cash flow to those payments. >> right, by the way to mary's point i'm not suggesting there shouldn't be a penalty to musk but i think it's extreme coming from the sec. you know, this is a really important point that dan just made, though, how did we get to this point an

>> it brings about the book bad blood about elizabeth holmes. therd that doesn't know health care, it tesla automotive's, you have the ceo who is basically unfettered , there is the company parallel between these two companies. executives leaving is not a good thing after less than a month. the chief accounting officer leading $10 million of equity grants on the table. joe: -- tesla has a real product that works. that is one difference. >> that is a good point. have you driven a model three? no. the issue is they have a card that works. if you can't make that car profitably you don't really have a business that works. that is where people get confused. the market closes next. here are the major averages in the red. four minutes until the close. this is bloomberg. ♪ >> "what'd you miss?" apple wing on the dow. the e-cig to you 500 in the red -- the s&p 500 in the red. i'm joe weisenthal. if you are tuning in on twitter, we want to welcome you to our coverage every weekday from 4:00 to 5:00 p.m. eastern. down on the week for the major averages, fo

allegations but elizabeth holmes may face up to two decades in prison. >> also ayman is here that mayon the nike story. >> talking about shares of nike, but also i saw yesterday some of nike's global sales, 65% of it, are outside north america and this is not an issue followed closely outside the u.s., or is it? what's the perspective from london on that? >> interesting, in fact, and somewhat ironically it is very closely followed. perhaps not so much the nfl, but you had former iranian president ahmadinejad weighing in on the conversation as well. people are watching all over the globe and seem to have a view, but as you say, a big part of their sales come from the international market and also from the younger consumer as well who don't seem to be too affected by the story. >> interesting to see. thank you. >> ahmadinejad, a fan of colin kaepernick. >> finding his voice on twitter. interesting enough, not tweeting in english. thanks, guys. >>> coming up, mike allen, a look at this morning's "one big thing." coming up on "morning joe," more on the new book from bob woodward wood w wo

this means more bad blood for founder elizabeth holmes who promised to revolutionize blood testing butminally charged in june with defrauding investors along with the company's former president. both have denied the charges. coming up, the technology matching cancer patients with treatments specifically tailored to them. the new platform that has the backing of a hong kong billionaire to take it global. this is bloomberg. ♪ ♪ emily: a new global platform is aiming to revamp cancer care. driver was developed by a harvard-trained oncologist. a swift specifically tailored treatments from anywhere in the world. the ceo and cofounder told our chief asia correspondent the startup launched in china with a number of cancer patients is exploding. >> we did not pick the timing. we have been in china over three years. we have endeavored to build our platform as a global one. >> in a nutshell, how does it work and what need is it filling? >> the problem driver has is the following. we have a market failure in terms of how a patient gains access to treatment. there has never been more treatment. 50

paul: but the former ceo of theranos, elizabeth holmes, she's been indicted for fraud, and she was onlyif he succeeded, would get banned for life. >> this is the opening bit of negotiation, and there will be a settlement. they're not going to put him out of business. at the least, perhaps, tesla ought to think about setting up a succession strategy in case for some reason elon musk gets set aside in the future. paul: tesla still has a market cap of about, i think -- the even a after the big 14% plunge on friday, it's still $45 billion which, believe it or not, is bigger than ford's which sells a lot fewer cars. yet they are bleeding cash, they've got a lot of bonds coming due in the next six months, and we don't know if their production capacity can meet the profits they need and the cash flow to make those payments. >> right. and, by the way, to mary's point, i'm not suggesting there shouldn't be a penalty for musk, i just think this is a little extreme coming from the sec. and, you know, this is a really important point that dan just made though. how did we even get to this point? you

ceo elizabeth holmes and her colleague face federal fraud charges. prosecutors say the pair knowingly lied about the accuracy and reliability of their products. >>> in today's "gma" first look, two cold cases in florida are getting national attention, in part because of filmmaker tyler perry. lindsey davis has the details. >> reporter: in this morning's "gma" first look, film maker tyler perry announcing he's seeking justice in real life. >> we have to come together as one to fight injustice and fight what is wrong. this is wrong. this is wrong. >> reporter: using his star power to shine a light on a pair of disturbing cold cases, announcing a new lawsuit against a former sheriff's deputy the last person believed to be seen with two men who disappeared without a trace. >> no matter who you are, be it poor or rich this has to bother you. >> reporter: the actor and activist was moved to act after watching an episode of discovery i.d. 's "disappeared" that detailed the disappearance of 27-year-old terrance williams and coming up at 7:00 a.m., tyler perr

we'll look at the rise and fall of elizabeth holmes.squawk box" begins right now. ♪ >> live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host -- >> we're all back together again. >> we're all here. >> and our guest host for this hour is stephanie link head of global equities research and a cnbc contributor >> great to be here. >> lots of stuff to run through. let's start with the u.s. equity futures. at this point it looks like there are red arrows across the board. dow futures indicated to open down by 96 points. s&p futures are off by 9

elizabeth holmes again she hoodwinked everyone from george schultz to henry kissinger. >> they were all on her board. dagen: their tactic was you have an army of lawyers and you threatened to sue people into submission, into silence and we should give credit, i read the book that john wrote about this and credit deserves to go to tyler schultz, the grandson of the former secretary of state george shultz who is on the board. his own grandfather did not believe him about what was happening. he was the first employee to blow the whistle to escape regulator about what he saw as troubling practices. again, criminal charges have been filed and i hope that this forces people in silicon valley again, the code of silence because we are worried about not getting a job somewhere else, the code of silence i hope it pushes people to act when they see something wrong and so hideous. maria: pretty incredible what went on because the truth is she was sort of a mystery the whole time. they would call her the steve jobs of healthcare the where she'd dressed and it was shrouded in mystery, but she really

elizabeth holmes facing investigation on this business and the way that what's conducted as well.his story develops in the meantime, a quick check of the latest business flash headlines. selling its 4% stake in abu dhabi national oil corporation. the south china morning post says the china development bank is putting the stake up for sale. bondeo has released two payments after the chairman and founder came under official investigation. rishaad: reporting amazon briefly joining the other trillion dollar company. just got apple in its lounge, adding more than $430 billion to its market cap alone. jeff bezos property $67 billion the last eight months, that gives them a net worth of $167 billion on the bloomberg billionaires that lurk. market cap and the increase alone would make him the seventh richest person on earth. haidi: almost at a stage where etf everything makes sense. one for the videogame sector. games constructing so much atention lately, it was matter of time before a gaming etf caught attention. the etf to give game tech known by its sticker gamer tracks globally with s

related to her function as ceo at martha stewart, it was her alleged insider training then you see elizabeth holmes where she did settle the s.e.c. complaint but there were still criminal charges that came in afterwards so it can go in any number of directions i would by no means rule that possibility out. >> though it could still be a settlement that's certainly a possibility isn't it >> there could certainly still be a settlement but i wouldn't expect one in the imminent future if they turn down what looks like a very reasonable deal it looks like s.e.c. is really trying to not destroy the company. to their credit. >> as we reported, there was an expectation they would also charge the company and they did not. it would not have been a violation but they were expected to come and they didn't. that was a surprise. >> yes, i was a little surprised by that, too they typically do do both. i think part of that may be that the directors themselves according to the complaint were totefully the dark here. i mean, he did all of this just freelancing which, by the way, again, i've heard from some directors,

holmes,der, elizabeth and the former president, have been accused of lying about theranos'technology.t is trying to make it easier for companies to make it to gain international capital. to make the global market system work for everybody. and whether you like it or not, we really have to do that. there will be no way to offer yourself from 2 billion people living in africa who have aspirations that are every bit as high as european and americans. we have no choice but to make this system work for everybody. emma: catch the full interview tonight on the david rubenstein show at 9:00 p.m. eastern time. alix: we turn to the wall street beat. first up, fidelity likes it free after offering zero free fun, they raise almost $1 billion in the first. studzinski joins pimco. and goldman's hunger game. preparing to take the helm and insiders await his choice for president. usid w.: here to take give itit all -- if you away free, people will take it? people like it. fidelity offer the first free and dekes fund. we saw prices go down, down. what they were the first to put it out there. it looks

holmes. and legal analyst, dan goldman. hi. we begin with the stunning announcement that one of elizabeth smart's kidnappers is about to be set free