stephen engle in shanghai. angie: we will have more later in the show, including stephen joining us live to show us the latest gadgets and discuss how china's appetite for innovation is changing the face of technology. coming up, mixed signals. what will the latest round of trade data tell us about japan's recovery? will speak to ubs after the break. ♪ angie: checking headlines around the world, malaysia's prime minister is shocked by the discovery of mass graves near the border of thailand which appear to contain hundreds of remains of muslims from denmark. -- myanmar. southeast asia is struggling with an exit of refugees. many are taking to wooden boats with thousands stranded at sea. in southerntorms and central china have broken a 40 year record for rainfall in may. authorities say 57 people have died since bad weather arrived last week, mainly from car crashes. to hundred 50,000 others have soft temporary shelter. inspections have been stepped up at reservoir. put some dams could collapse. forecast is for

stephen engle investigates.the this woman is stocking up on apple watches from resellers in this computer ball to give as gifts back home. >> the watches are more expensive in china. plus, i couldn't find any in my city. >> i didn't expect this to happen. i didn't think it would be such a hot item. i think people are going after the apple watch because there is limited supply. >> i want to give you a sense of the gray market prices. the most expensive one is 10,000 hong kong dollars, about 3000 u.s. dollars. the list price is 700 u.s. dollars. if you want to pay double, you can be an early adopter of the watch in hong kong. which is why want to try it. but i will have to pay about $2000 more than the original price. and 1300 u.s. dollars, if that is too rich, you can down scale for the cross border version. they are not knockoffs, they are more a phone on your wrist, if you will. it has a simple card you can put in there and you can talk on it ,uch like old dick tracy did and they come in multiple colors. the be

we got stephen engle taking a closer look at this. it is telling you one thing and doing another. >> i will boil it down to a nutshell. the last six months, we've had interest-rate cuts. the cap, the amount of interest rates. that's what they've done. now we're hearing from people close to the situation. don't offer higher rates to depositors right now. there are deposit costs going up. they are a risk to the banking system. they are negative for chinese banks because they will narrow the spread between lending and positive rakes -- rates. it means raising the cap. pressure march. a banks are a bit risky. angie: but was the point of raising deposit rates if you are just not going to enact them in real life? >> if you are going to raise the ceiling and not allow the banks to compete, they are offering higher returns. obviously much riskier and shorter returns. it goes back to the heart of the question about reform. how committed to reform our not allow they will the market dictate what the rates should be? let me read you something fro

richard engle reporting for us. thanks very much. >>> we'll turn now to the latest on the investigation of the amtrak train that crashed in philadelphia killing eight and injuries other. there is an investigation into whether or not it was hit by a project tile before the crash. >> i've seen it reported that the fbi is investigating. that's a misnomer. we are investigating the accident. we have asked the fbi to come in and provide technical expertise to help us resolve and figure out what was the particular damage pattern on one of the windshield. but we are investigating it at this point. and we've just asked them to come in and help us out on identifying that fracture pattern. >> tom costello is outside the 30th street station in philadelphia. tom, it does seem as if ntsb is trying to tap the brakes on this growing story that maybe some outside sbitd or force caused this accident. >> reporter: here's why they are concerned about this. they had a septa regional train hit by something. the engineer thought he had be

stephen engle took us for a spin.r: a connected car is a major theme of this, the first ces for china. unlike its bigger brother in las which attracts 176,000 attendees, this show will get about 20,000 participants. virtual driving capabilities, the market potential for ces -- consumer electronics sales in china is a huge. it will not let me crash this thing. gadgets that were not even on the market a couple of years ago , we will see in some sectors a doubling of sales around the world. to 3-dmera drones printing. it is one way for china to mass-produce cars. and wearable devices like smart watches and ultrahigh definition television and video devices. in china i only time can really stick a camera and someone spacelike this. -- someone's face like this. and then there is twitter, relegated to the back of a help. they have an inbox and they have mail. you better be careful in opening those attachments. engle, bloomberg news, at ces asia in shanghai. rishaad: up next, japan's trade is back. assess the numbers after th

shanghaie, bloomberg, -- stephen engle, bloomberg, shanghai.ve at the conference in hong kong, with where we will be joined by the founder of a global e-commerce .ompany ♪ anchor: checking stories around the world, china is defending its claim to the disputed islands. the 2015 military white papers says the pla must in large what it called its active defense seasegy, adding open protection to their current on shore operations. claims in the east china seas, it is the largest military buildup in decades. japan once to rewrite the constitution, forcing a wider role, and nato has begun one of its largest-ever air force exercises in scandinavia amid rising tensions with russia. and the arctic challenge features more than 100 planes and 4000 personnel. moscow has started its own wargames in response to the nato operation. hundreds of planes and ground-based defense systems are taking part in what they're calling tactical exercises, and in even larger drill is planned for later this year, and a reporter for the washington post has gone on trial in ir

stephen engle's looking at this.ple--stephen: familiar with the situation says we may have to take this with a grain of salt because of the slowing economy. this is what we know. thef monday, the pboc for third time since november, cut the key lending rate and the deposit rate but raised the ceiling, allowing banks to raise rates to attract savers and give them a better rate on deposits. but we are learning from people close to the central bank that pboc is instructing banks to hold off on setting their own deposit rates. we know the pboc in the past, including the governor, has said that deposit rate reform and removing the cap altogether is one of the riskiest forms of rate liberalization in china. he did say that could happen in the next couple of years. this is the next step as we face a steeper slowing of the chinese economy. how far to the reforms go at this time? banks have some risk right now, the slowest profit growth in a decade and that interest margins being squeezed. the central bank wants to see those f

engle has found, they are increasingly influencing the design.phen: many of china's new uber wealthy are grabbing it all, like paying for this yet, tailor-made for chinese tastes. you would think during china's corruption crackdown, such ostentatious displays of wealth would be kept, well, you know, below deck. >> we are not in the public sector. we are selling to private owners. clients are really entrepreneurs, high net worth individuals, for sure. people working very hard all their life. and they made a fortune in the recent years. stephen: because chinese super yacht owners are much younger than those in the west, design changes were needed to suit age and cultural differences. daily boat is still for use. they do not spend hours and , so it is much longer and bigger. we extended the sofa in order for them to welcome a lot of people. stephen: because chinese buyers are not necessarily into cruising, some are smaller than the average yet. -- yacht. this is the master suite, probably about the size of your average hong kong apartment. smaller t

stephen engle take a look.mind a huge markup, china is stocking up on apple watches to give us gets back home. >> the apple watches are more expensive in china. i couldn't even find any. >> i did not expect this craziness. i do not think it would be such a hot item. i think people are going after the apple watch because there is limited supply. stephen: a sense of what the market prices here. the most expensive one he has sold is worth 10,000 hong kong dollars. 1300 u.s. dollars. the list price is $700 u.s. dollarwant to pay almost -- open w can be an early adopter here. >> it is new, that is why i want to try it. but i will have to pay $200 more. $500-$1300 isen too rich, you can always downscale. they are not really knockoffs, more of phone on your wrist here -- it has a sim card. 780 hong kong dollars. most companies -- customers were focused on the apple watch. this sounds a lot like scalping, but it is legal here. that is why a number of different vendors are lined up along the sidewalks. they are not sell

right now, coming a little closer, wearing puffies in pacifica, out in san francisco, sunset district, engleide, edgemar. san bruno, fog shooting the gap at sfo as well. that's typical. it's a low-lying spot there. the fog's going to work its way back inland tonight. it was a nicer day. it has been incrementally nicer each day, as we've been through this week. started off cool and kind of like that. then each day we gained a degree or two. some cities around the bay, oakland and san francisco have actually dropped a degree or two, flip flopping back and forth. the numbers that have been steadily increasing have basically been napa and fremont not fremont. napa, livermore, up towards the north bay and east bay valleys. so tomorrow is going to be a nice, warm day, probably the warmest day of the week. 84, 85 degrees in some of the inland valleys, the hot spots. out along the coast, upper 50s. anywhere in between, you got 60, 23-degree spread from here, coast to inland. typically in the summer, you get a 40-degree spread, right? it's not that hot. still a nice warm day. forecast fog tomorrow mo

stephen engle joining us with the more. stephen: he is on environmental mission.ts to get the sustainable energy project really going. china builds so many of apple's projects -- products through those a joint ventures they have. apple arem cook and going to have big demand for the apple watch and big demand for the iphone 6. more shipments in china in the first quarter than the u.s. even though smartphone shipments overall in china sank for the thet time in six years in first quarter. they had those problems with the china,r watchdog in which prompted tim cook to apologize to the china market but the is pushing these environmental issues. he met with the highest ranking female in the chinese government and he will work with the world wildlife fund two-minute one million acres of forests across china. they will fund a five-year project to plant trees and implement standards that use less land and water. they also named more local project for their solar .n western china a shanghai listed company is part of that power. both of these stocks we have the share prices.

we are joininged with some of the details by stephen engle. stephen: it looks like some of the property curves are starting to take effect. downpayment rules have been relaxed in a number of cities. we are starting to see as well as developers have been working off all their excess inventories. new home prices, month over month is improving. the scenario. in march the number of cities that saw month-over-month price gains was 12 and in april it rose to 18. the number of cities that saw decline 47 out of 70. that's declining. that's a better situation. we were talking 66 in february, 64 in january. so it is significantly better. among the better improvers in month-over-month performance, shanjen. a whopping 8% price gain month-over-month. shenzhen was the first city to turn the quarter in december. we have seen five months of month-over-month gains. beijing 0.7% gains after 0.3% in march, which was the first month in eight months that saw month-over-month gains. only one city saw continued month-over-month gains, and that is shenzhen. all other

stephen engle has this report.tors have long used hong kong as a proxy to invest in mainland companies but they are now calls for money managers for even tighter oversight and investigate possible stock manipulation allr three listed companies tumbled more than 40% in a single session of the past couple of days. these stocks have surged more than five full each over the .ast year energy remains suspended. the head of energy lost $15 billion in a single day. now here are some of the top stories crossing the bloomberg terminal. agency says the uncle of kim jong on attended and eric clapton conference -- concert. it has been the first time he was seeing in public since his younger brother took power. in london, a frightening reminder of the second world war, and unexploded bomb was found near wembley stadium. evacuated officials workers and residents. it is believed to have been dropped during the nazi raids over london. the eiffel tower is closed to the public, the reason -- pickpockets. tourists are locked out of th

we have stephen engle's reporting.lared that when china and india speak, the world takes notice. but the two have been dogged by imbalanced trade. importantre the most economies in emerging markets. the biggest markets in asia. but they trade little with each other. stephen: china's trade with india is lower than what china has with brazil and russia, roughly $70 billion last year. 38 billion dollars trade deficit with china in 2014. that deficit has surpassed $13 billion in the first four months this year. if there is a bright spot ahead of the visit, it is that, despite the slowdown, china-india trade is up this year. while china-russia and brazil shipments are following. people looking at "chindia," but they are the two key focus countries in emerging markets. stephen: the key to boosting trade may be breaking down barriers to investment. both blame the other for red tape. india has complained of unfair access in china for i.t. services, pharmaceuticals, and meat, while the global times needs to sort out a way to bo

steven engle crunching the numbers. what does this tell us? steve: worse numbers since 2014 for hsbc. manufacturing economics p.m.i. 49.9 expecting 49.4, so .5 -- not a percent but you know what i mean five basis point bees low that. march was 49.2. new orders, this is a key number within that p.m.i. declining the most in a year. the official p.m.i. we got on friday showed stable stabilization but still 50.1 is right there at inertia, just about. not contracting, not expanding. and we're geling from economists expecting another rate cut perhaps the third since november in the pipeline. a lot of chatter on social media that can be coming in a matter of days, perhaps this week. i want to read you the key statement from the hsbc because this is it in a nutshell. new orders declining at the strongest pace for a year while production levels stagnated. data suggests relatively weak domestic demand is the main driver of reduced new business as new export work picked up in april, albeit marginally. export orders seemed to pick up a little bit that's e

we have stephen engle on all of the. is it a good deal for russia or china?: pressure leads the alliance, and chinese -- china needs the energy assets. what we got over the weekend with xi jinping in moscow china extending a strategic partnership for five years been agreed on the daily gas delivery volumes and pipeline entry into china. there is also the power of siberia and volume. basically, crossing the t's on the various pipeline deals. no deal on the shipment of oil to china. even though there was a 10% stake that cnp took in one of the largest oilfields in russia. that may down the pipeline, if you will. angie: it is interesting it is a dedicated pipeline to china. that deal is very much in play. but maybe china has the upper hand. stephen: there are some price issues. we will see. angie: the two did meet for the 70th anniversary of world war ii. what do they have to say about that? stephen: it is significant in that there were the two gentleman, moscow inviting the other allies from 70 years ago, the u.s. and u.k.. those leaders respectfully decline th

. >> joining me on set, nbc news chief foreign correspondent richard engle.not losing if perception is reality and isis continues to gain ground geographically expanding its footprint, how is that not losing? >> well, i think the president is in a difficult position. i completely sympathize with his desire to not get up in front of a podium and say we're losing isis is winning, which would give a propaganda video to isis. you don't want to say your strategy is failing. but i think he's in real danger. if he continues to make comments like these that seem to fly in the face of reality, he could end up looking foolish. how can you say that the strategy's working when city after city is falling, when the iraqi government isn't holding the iraqi security forces aren't fighting. with pal myera, it was -- palmyra, it was the syrian army that decided ton stay. when you have setbacks happening daily, i think there are questions that need to be asked and answered. >> we talk about the iraq situation and then the syria situation, what is bashar al assad's response and

richard engle joins me now from new york.rom the conversations i've had on capitol hill, if in fact there was a great offensive against the islamic state, every suggested before u.s. air strikes and iraqi forces and perhaps iranian backed could take mosul, they had to first ramadi. how could this be a setback for something that's not symbolically important? >> it doesn't seem to be symbolic in any way. there are questions about the overall strategy. the strategy doesn't seem to be working. the strategy is to use allies on the ground to theoretically use allies on the ground. and to continue air strikes. air strikes have been effective in certain places. overall, no the strategy doesn't seem to be work. isis continues to expand continues to take new territory. first taking ramadi few days ago then moving. it shows the basic flaw in this strategy that no matter how many air strikes you do unless you have effective forces on the ground to move in and take territory, then the air strikes aren't going to be able to make lasting di

fox news's laura engle has more on this one. laura? >> hey, melissa. flights coming into the u.s. from cities such as paris, london and madrid were all alleged targets of these threats that turned out not to be credible according to fbi. they all seemed to come from the same source. the situation was more than unsettling for many. authorities say the calls were taken seriously enough to prompt some searches of luggage in planes. in one case a military escort. u.s. fighter jets were scrambled to bring a air france flight into new york's jfk after someone claimed there was a chemical weapon on board. a statement from the fbi says the escort was out of abundance of caution. one passenger involved in yesterday's scare says the experience was horrible. other passengers weren't even aware of any threats. these flyers said they didn't know what was going on until they got on the ground. >> we didn't know nothing of a threat or something on the flight until we get over here. >> we have to follow the security procedures. we didn't snow about the chemical weapons or anything. >> no fun to t

fox news's laura engle gives us the very first look. i have got to see that. >> hey melissa. you know there are actually two sizes. one is 250 square feet. the other, 350 square feet. developers say, hey, you know what? that is plenty of room to lounge sleep bathe, even enjoy a view off of a small balcony. they have a small balconies. new yorkers love that. modular apartments you see here behind me are put together off sight. they get trucked here to manhattan. once they get here on site, they are lifted up by a crain and stacked up like giant leg goes like a puzzle piece. housing advocates say my micro new york, the city's first micro apartment complex will make affordable housing reality for those struggling to find a space of their own to rent in the city. >> 250 square feet, 350 square feet on paper sound small but if you're in unit with tall ceilings, a lot of windows and a lot of light, efficiently designed space with idea of modern turn anying in mind it's a very spacious apartment. >> so these rents are expected to go for 2 to $3,000 a month. to put that in perspectiv

the structure collapses in front of engle's eyes. >> it was terrifying. be lying to you if i -- i had never seen anything like this before. it was terrifying. the sound of it was panic. i think that's the best way i can describe it. panic. >> sam! >> sam! >> sam! >> 12 people are treated for broken bones and bruises at the nearby hospital. no players are injured, but the cowboys' staff suffers a devastating blow. the most severely injured is 33-year-old assistant scout rich beam. his spine is severed and he's permanently paralyzed from the waist down. >> the initial reaction was, man, we were lucky. nobody got really hurt. it wasn't much later we realized, not everybody was so lucky and we found out about rich. i think that changed everybody's perspective of all of it. >> the cause of the collapse is immediately investigated. at first it's thought that a tornado hit the facility but it turns out the collapse is caused by a microburst, an intense downdraft of air over a small area usually caused by a thunderstorm. the investigation reveals that wind speeds

. >> richard engle in istanbul. thank you very much. >>> we are going to turn to the latest investigation into the amtrak train in philadelphia killing eight and injuring more than 200. earlier, i spoke with the ntsb and asked about reports of the fbi to investigate whether or not the train was hit by a projective before it crashed. >> i have seen it reported that the fbis investigating. that's a misnomer. we are investigating. we asked the fbi to come in and provide technical expertise to help us resolve and figure out what was a particular damage pattern on a windshield. we are investigating it at this point. we asked them to come in and help us out on identifying the fracture pattern. >> bring in tom costello, just outside the 30th street station in philadelphia. tom, it seems the ntsb is trying to tap the brakes on this growing story that maybe some outside entity or force caused this accident. >> reporter: well, here is why they're concerned about this. they had the train hit by something. the train conductor t

stephen engle joins us on the undercurrents of south china sea.en: it is part of the pacific ocean but it's the south pacific see that china claims 80% and quadruple the wreaths and small islands. 2000 acre spree and is a concern, not only china claiming key maritimet is but also fishing grounds and said to the oil and lots of geopolitical tension among six different complaint is. the united states, john kerry, the secretary of state was pressing for restraints. building an airstrip so there will be military purposes but also maritime issues and a lot of concern that john kerry had it when he met with xi jinping as will his counterpart. the foreignold of minister of china he is concerned china is to establish de facto control of the south china sea by controlling the scholls. china rebutted by saying it was national interests. it is what the things they them said repeatedly. they are indisputable sovereignty over areas of the south china sea. verye always been interested in that claim, indisputable. it is disputable because there are five other na

over to stephen engle. recovery is housing taking hold at least a month over month.t of the year over year numbers because they came off a low base. i want to look at month over month. almost at the bottom from a number analyst for you will prices falling and 47 of the chinese cities. that is better than the 49 cities. falls month over month in february. 37 is an improvement. the number of cities that saw prices gained increased, 18 out a 70. it was 12 in march. also unchanged from 9 down to 5. beijing is seeing a civilization. month over month prices are up 0.7%, the second month in a row. shanghai also for the first time in many, many months seeing a month over month gains in prices up. it had a no change in the mother before basically stabilized last month and now increasing to 0.6%. what we are seeing is the three interest rate cuts since november and relaxation of the mortgage rules on second homes really trickling in. perhaps with found the bottom month over month for new home prices. rishaad: thank you for that. we will more later in the show. ok, a look at ot

stephen engle taking a look at the discussion stephen: cooler heads prevail in publicly, but behind theto brass tacks. that is china being much more assertive in the south china sea. sayinghe united states we are going to fly where we want to fly in international waters. at the backdrop is china's threat to potentially label the area defense identification zone, which amps up tension. was a bitl last year more terse in comments. so they dial back the rhetoric this time. ashton carter is relatively new as defense secretary. and the chinese admiral, they couched their words. but the message from both sides, including secretary carter, was clear. states is deeply concerned about the pace and scope of land reclamation in the south china sea. the prospect of further militarization and the potential for these activities to increase the risk of miscalculation or conflict among claimant states. stephen: i mentioned the airstrip. -- admirable sung address that. here are his words. justified, legitimate, and reasonable. i think the u.s. would disagree. the dialogue is trying to build a consensus,

stephen engle asked tim pinsky for his views. >> what is a car doing at an electronic show?emiconductors? >> you're talking millions in his vehicle. we are seeing the convergence of technologies. this is one more of those. are wer: how far away from having pilotless cars on the road as a mass product like the smartphone? look at global trends, we are seeing urbanization, congestion. when you take those problems and look at how you solve them, a vehicle like this does fantastic. because every time you stop, the engine is not running. the braking energy is going back into the battery. it is available the next time you accelerate. looking at trends globally of these cars with congestion, this is a vehicle that does very well. reporter: as we get more interconnected with our appliances, whether it is a kitchen, living room, garage with smartphones? how secure is it? better security than a bank. encryption is everywhere. reporter: what are you doing as you lead the innovation at ford to reduce range anxiety and get faster charging? >> batteries are getting lower cost and more cap

leslie liu told stephen engle that the company wants to be far more than just an online retailer.have created an open ecosystem. partnersrking with our to bring new products. we are not making any new products by ourselves. we are working with our partners. stephen: what kind of products are we talking about? has made an investment in a voice recognition technology company and smart home appliances. how do those mesh? there are already 400 products sold on our smart home website. we will keep adding new products into the pipeline. announced our joint venture from ifly tech. a voice controlled speaking system that allows you to use your own voice to give commands to speakers and have instantaneous access to millions of hours of content. additionally, you can use your voice to talk with this smart speaker. ask what the weather is tomorrow, what is a stock's price. alibaba,you know that your main competitor, has been criticized for allegedly facilitating a platform for the selling of counterfeit goods. even jd.com was in the news for allegedly selling refurbished iphones that were pa

engle burt if possible. for the huge enthusiasm the very beginning a few years ago regarding the shale gas coming from poland, ukraine romania. unfortunately the work was stopped. from your perspective it's a matter of, i don't know, profitability of the resources that are inside or it's a matter of conjunction of the market or could be influnes some geopolitical issues in this regard. >> well, in that -- i'll answer the first part and then i'm going to pass this off to my colleagues. i just spent some time in a number of those countries. and the gas shales that we're talking about in poland runs from poland through ukraine shows up in turkey. it's a gas shale that's sourced in an organic fossil. and if there's an analogy in america, it probably is the utica gas shale. it turns out that the major issue is the quality of the rock. it doesn't really matter what the politics are or what -- how the local people feel. if the quality of the rock is not there to make this work, the way that it has with marine shale

for steve engle we are back with professor joseph stiglitz -- francine: we are back with joseph stiglitztay with us. ♪ francine: a welcome back to "the pulse." we are back with joseph stiglitz , an award-winning economist. in the book you talk about inequality and we are talking about austerity and the difference between the haves and have-nots. in europe, it resonates a lot. there is also more concern about shareholders. there's too much pressure on corporations to give back to shareholders instead of investing money in a more useful way. do think the current form of capitalism will survive? joseph stiglitz: no, it has not been working. take the united states, i know about the data. if you look at what just happened since 1980, just 1/3 of a century, the bottom 90% has seen no increase of their income. this is not a successful model. where those, a majority of citizens are not getting any gains, stagnating, declining over 1/3 of a century. that model is flawed. one of the reasons is the focus on the short term. and short-term to capitalism you might call it. i want to say it is not just

stephen engle went out for ray market watches -- gray market watches. >> stocking up on apple watchesas gifts back home. >> the apple watches are more expensive in china. plus, i could not even find any in guangzhou. >> i did not expect this craziness to happen and i did not expect it to be such a hot item. i think people are going after the apple watch because there is a limited supply. >> what are the gray market prices here in hong kong? the most expensive one is 10,000 hong kong dollars. about 1300 u.s. dollars. the list price is about $700. if you want to pay almost double, you can be an early adopter of the apple watch here in china. >> it is new. that is why i want to try it. i guess i will have the pay more than 2000 hong kong dollars more than the original price. >> if that is too rich for your blood, you can go down scale with the cross-border version. they are not really knockoffs they are more a phone on your wrist. it has a simple card that you can put -- a sim card you can put in and talk. the best part, just 780 hong kong dollars. that is $100. most of the customers wer

. >>> in today's "beyond the dream," huntington engles newport new ship building bashaned in virginiaary ship-building company. while they live up to its model always good ships it also lives up to bringing the best out in its people. created one of the pop apprentice schools in the country, which improves not only productivity but helps individuals improve their lives. in the navy sailors need ships to defend our national security around the world. for more than 100 years, newport news ship building has been supplying the navy with the best fleet of ships ever built. from nuclear powered aircraft carriers to destroyers and submarines. the company relies on a motivated and intelligent team of employees to accomplish its goals, it does that by pakinge ing making the american dream achievable. >> for a lot of people i think they have to be reminded that the american dream is out there. for those of us who have benefitted from that i think it's really important for us to reach out and bring people along and show them that the dream is still alive. >> reporter: in 1919, the company which

laura engle joins us live from the port authority bus terminal in new york city where no doubt a lot of people flowed into that area to use buses instead. laura how does it look over there? >> reporter: hey, martha. as most people know traveling by bus is one of the cheaper ways to get to point a to point b, with last night's train derailment many travelers came here to new york's port authority. one woman we spoke to inside of terminal an hour, she came to grab a ticket on greyhound to washington d.c. because fly sive. 200000 people pass through the bus terminal every weekday. that number expected to rise over next few days as travelers here in the port authority and new york's penn station look to get their northeast destination another way. >> supposed to go to philadelphia but our train got canceled. now i try to book by, going by greyhound bus. >> we had to leave to try to make our train. the website still offered a lot of people to purchase tickets to the line we were. we were like maybe the train is not canceled. we got here and the train is canceled. we have to find an altern

. >> reporter: i'm joined by bob engle, co author of chris christie.s on the website coming up. let's talk first about david wildstein. he has ties to christie going back to high school. chris christie distanced himself from him when questioned about wildstein. >> i don't think we learned anything we didn't know before with months of looking into it. there was really nothing that really stood out. i thought what was interesting was the documents referred to that these people who are alleged to be conspirators, it also said and others not named. the other thing is what you just said about how he said he didn't expect more indictment miss the bridge matter. it sort of left the door open. we know there's other investigations going on. there may be other people close to christie who get brought up the next time around. >> we talk about the preeripheral circle around christie. >> his name didn't come up. his defense is i didn't know what my people were doing. what defense is that? is that somebody you want in the white house, someone that doesn't know what'

. >> representative richard engle said i don't think the american public is ready for another full warsis is a more serious threat than iran, russia, south korea or china. i'm wondering, do you think at any time the fear of isis and what should be done to stop them might supercede the fear of war? >> i don't think so. every has the reaction to tactical defeat which is what this week was in ramadi. everyone is saying let's send forces. i've got to remind everybody, once you send forces, they're there for a long time. even when america forgets forces are there. the decision to send forces is a tough one. >> stay close to this. i want to bring in arwa damon there. what are you hearing there on the ground? >> reporter: well there's been it seems finally -- this was much needed -- a level of collaboration between the iraqi security forces, these shia military units and sunni tribes. at least when it comes to battle space around the town. from what we're able to gather from security forces, sunni tribes are left to hold territory while dshia fighting force advances. sunnis are left behind. t

richard engle, nbc news. >> joining us is jack jacobs and our guest host this morning., what happened? >> the iraqis who we spent a lot of time training and equipping decided they weren't good at what we taught them to do and ran away. >> it's courage and bravery and willingness to lay your life on the line. >> you have to be serious about the objective and the iraqis like the united states don't really have a strategy. we just have tactics. >> i had read though, tell me if this is correct or not. i read that the americans asked the iraqis not to send in additional troops. they wanted the local troops to be fighting. >> it's a suni area so you need suni people there and they're not up to the task. >> would it be better if it was like korea where we still had guys there. cynics would say there was an election coming. it was a first time promise that we would get out and we got out too quick. would it have been preferable to leave u.s. troops there. >> you don't know the objective. >> no i'm convinced we don't have an objective. >> what should the objective be? >> in this