worldcom and enron lasted about four months, once their accounting frauds were exposed we'll see how ge does. i think they are a bankruptcy waiting to happen. >> ge meanwhile saying we are extremely disappointed that an individual with no direct knowledge of ge would choose to make such serious and unsubstantiated claims ge stands by it. and mr. markopolo is compensated by unnamed hedge funds if people -- if you department see the whole interview this morning, go to cnbc. it's well worth the watch. what do you think? >> so i've been covering it this morning since the report dropped. and i think the best way to put it is the feedback that i've seen about this particular story has been so visceral on both sides of things. because of the nature of what's happening. on the one hand you have people trying to stand up to a large corporation saying, hey, if these guys are perpetrating a fraud they new zealand to be held accountable there are others saying this is just a hit job on ge by a guy compensated by a hedge fund and he's making money on this hand over fist himself. this is going to

that one, bige fraud than enron.llegations about the company, ge, having its worst day in more than a decade after a whistleblower, a high-profile one, called it bigger than enron fraud wise we will have the full fall-out we begin with the topsy-turvy thursday for your money, wild market swings on wall street she is down, she is up, she is down, she is up. many investors left with their heads spinning falling yields china headlines, consumer data, all driving big moves. how should investors navigate all of the volatility? guy, i will start with you it has been a week where we begin with 10% tariffs coming in, market goes down the president then says, well, i'm going to postpone for some, the market goes up yesterday the yield curve goes negative today back up. >> first of all -- >> how do you deal with in >> great to have you on board? >> nice to be back. >> the cheapest thing you can do, tyler, you weren't here a week or so ago but pedro was sitting on the hook. he said something that resonated with me. >> resonated

this is bigger than enron.s is bigger than worldcom i am reading along and thinking, stop telling me what it's like and let's get to the facts here. so i get to the facts. look, i'm not an accounting expert but it was a multipronged thing. it's not like -- first of all, it's not enron enron was a specific clever deceptive practice that was hidden from the auditors it won't over a many-year period i didn't see anything like this here we can talk about the individual aspects of it, but i read through it and i wasn't convinced. >> the practice itself of this is a company that, you know, has had some hair on it over the last few years, right? >> right. >> do you liken it to yelling fire in a crowded theater? how do you just deal with the ability of somebody like this to go public against a company that appears to be on one knee? it's trying to rebuild itself. it's trying to get out of some of the problem areas that it was in an easy target, too. >> well, i mean, the general issues here are not new at all we know fr

. >>> plus, a bigger fraud than enron?f whistleblower harry markopolos calling out ge in a new report he will join us later this hour. >>> walmart spiking on strong earnings we will dig through those numbers coming up next. >>> back to the markets this morning. we are up 100 points on the dow. reacting to comments out of china on trade today eunice has that for us live from beijing. >> we got two conflicting statements out of different parts of the chinese government today. one sounded belligerent and the other one conciliatory so the foreign ministry said we hope the u.s. side will meet china halfway. but just for some context, we hear this phrase quite often from chinese officials this is boilerplate standard fare when describing beijing's position so the other statement that we heard was through the finance ministry website, and this one warned that china would take countermeasures for the u.s. september tariffs. the authorities said the u.s. move seriously contravenes consensus at g20 meetings, that the u.s. deviates f

. >> bigger fraud than enron.t's what the man who blew the whistle on bernie madoff is saying about general electric, and ge's ceo hit back hard. those stories and more tonight t"on "nightly business repor thursday, august 15th. >>> good evening, everyone. welcome. ll has the evening off. stocks couldn't figure out if they wanted to go up ordown. the dow and the s&p 500 finished the day higher, af rel for investors who were searching for answers after yesterday's big sell-off. trade pushed stocks lower and then higher asd money rus into the bond market yields fell and stocks followed. at one point the yield on the ten-year treasury dipped below 1.5%. that's the first time that has happened since 2016. the yield on the 30-year hit a recobu low, again, that didn't last. yields rose in an unusually harp way and stocks swung wit them. here is where the major averages closed on the trading day.o theu joins industrial daerage rose about 100 points, the n fell 7 and the s&p 500 added 7. bob pisani takes a look at the str

, electric shock ge sink iing after a madoff whistleblower says the company is a bigger fraud than enron and world com combined we'll tell you why he says the company is heading for bankruptcy "power lunch" starts right now >>> let's check where we stand on this wild markets day stocks taking a dive in just the past few minutes, now down 130 points all the major indexes reversing at the ten-year yield hits its lows of the day. and that is a sign of worrisome growth ahead let's go to bob pisani hi, bob. >> hello, tyler. again, markets roughly tracking bond yields. take a look at a chart we've shown a lot recently the intraday of the ten-year versus the stock market here we saw a program come through as yields dip below 1.5% here we've been trading practically in lock step with those yields today. see the market here with the ten-year yield on the top there in the s&p on the bottom this is an intraday. and pretty much moving in lock step i want to note two weak sectors today. retailers are continuing to get slammed today. macy's gap, l brand, all down another 4% these all of them are down

liz: people rush to support enron back in the day. i'm not saying ge is enron at all.t saying you've got to give these things some time and some investigation. jackie: i think people are going to look at the numbers very closely and really start digging. liz: yeah. and unconflicted investigation. good to see you, jackie. thank you very much. jackie deangelis. >>> closing bell, we are 31 minutes away. the dow jones industrials holding on to really solid gains, up 269 points. the nasdaq up 130. >>> a farm boy turned silicon valley superstar. this week, pat gelsinger sits down with me. he grew up on a pennsylvania farm milking cows every morning at 3:00 a.m., and guess what he became? he was just named by glassdoor as their 2019 best ceo in america. the vmware ceo, my newest guest on everyone talks to liz podcast. download it on apple and google podcasts and fox news podcasts.com. >>> up next, could we see an arranged marriage of two once-hot retailers? find out next in today's fox business brief when "the claman countdown" comes right back. do you have concerns about mil

it is accounting 101 world com and enron lasted about four months. see how ge does. >> ge hitting back last hour i spoke exclusively with ge board member and audit committee chair who says there is no basis for fraud allegations here >> fraud is such a strong and inflammatory word, meaning intent to willfully deceive. again, that is not the ge that i know we are in full compliance with accounting standards in the u.s. we prepare themwith a rigorous process. i as the chairman of the audit committee have full access to the people and the books and records at ge, and i stand behind the financial reporting of this company. you know, our role as directors is to oversee the process, and since i have joined the board and, again, speaking for my colleagues, we take this really seriously and there is no basis for an allegation of fraud here. i think the report is full of opinions, and this is one of those cases where i'm not sure that the author of the report really understands the accounting in this area. >> she joins the ge board about 18 months ago. also i

and enron like bernie made off both both loaded terms well known figures in financial history in the us but they lose the heart of their force in new york thank you. let's now look at some of the other global business stories making news european banking stocks fell on expectations that the european central bank will lower borrowing rates in the coming weeks germany's leading banks deutsche bank and comments bond slid to record lows germany's number one and 2 lenders have struggled to recover since the financial crisis. boeing is postponing the delivery date for the ultra long haul version of its 777 x. model the airliner series has reportedly phased engine problems during development boeing of course is still reeling from the grounding of its 737 max aircraft following 2 crashes. gibraltar on thursday allowed the tains iranian super tanker to leave the british overseas territory a move that could help defuse tensions between london and tehran those tensions are part of increasing friction between iran and the west over economic sanctions and those sanctions are taking a major toll o

"other people's money" i wrote in the wake of the enron scandal and the worldcom scandal which were would effectively end energy and telecommunications sectors after deregulation in the sectors but they happened really because those institutions, enron, worldcom were working with the major banks of the country and all sorts of tremendous structures, hiding money off their books and so forth. the scandal situation happen, the recession happened. everybody knew about it but the banks kind of got off relatively free from that. not other ceos went to jail then, which i wrote "other people's money," but their influence was very high in washington because what they would basically saying was look, this is on enron. this is on worldcom. they did things wrong. we might have did some paperwork and help them with a banking are there but the reality is those kinds of institutions, enron could not have become the major derivatives trader that it became instead of the energy company it's that it was. worldcom could not have become such a massive organization with so much stuff hidden offshore and from

harry marcopolis accusg ge of being more fraudulen than enron. calls those hcusations tho baseless. >> new this morning, the #boycott cvs and cvs denies re are trending. comes after a public feud over birth control. the disagreement much cvs club for prescription delivery service after allegedly deciding to cut its reiment rates. pill club says it will stop working with t pharmacy chain. cvs calls the misleading. >>> money stole spotsylvania school district has been recovered. it lost $600,000 in p ashing scam. trnabedouf hal yesterday. the rest is coming next week.me soe thought the money was going to a vendor to pay for the new football fieldd at courtlangh school. no arrests though have been announced just yet. >>> a warning label on cigarette packs could be more graphic. the fda proposal a rule that rewoulquire tobacco companies to include graphic images watch coul c of whatouldo you or those around you if you smoke. the fda hopes that the graphic images will raise t awareness abouhe negative effects of smoking. >> all right. how about this o

the kindery similar to of mark to model accounting that enron employed, the legal portion of enron's accounting. basically, they are supposed to sit there every period and say this case we invested in 18 months ago, do we think it is worth more or less than what it was at that time? it is litigation. you cannot reliably model these outcomes, yet they told investors they can. we were just incredulous of that from first blush. vonnie: it seems to me that it would be pretty easy to figure out what cases are producing revenue, what cases have been won. it is litigation finance, and as you say, the accounting may be opaque, but you can at least figure out what is winning and losing in the courts. why wouldn't top share for its -- why wouldn't top shareholders , invesco, teachers insurance and annuity association of america, why wouldn't they do their due diligence? carson: it is interesting because i'm not sure that numbers one and two on the shareholder list are really there to do due diligence. , and mark is invesco burnett is the protege of the number two holder, neil woodford , who us

you will see potentially what happens in the third quarter. >> not just enron, but enron and world coname thing. we are talking long-term health sunce. >> when we come back, big protests in hong kong. we will go there live right after this break xxxxxxxx hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. ♪ >>> hong kong protesters are out in force right now brian sullivan is there surveying all of it. what are you seeing, brian >> reporter: yes, hey, becky i don't know if you can see it i know there's a lot of people on their phones right now so our fe

literally in just a few moments before we came to you some we understand that we have pictures of enron khan arriving tell us more about what we expect today or. yesterday you'd be able to see on your screen that crime is down run cons helicopter just nodded a few moments ago. a show of solidarity with the people to be on the other side user i was offered this community is expected to tell the politicians here that sounds good but you should be very august on is rejecting completely what india's done it called it an illegal annexation of a disputed territory that india has taken the unilateral steps to amend its constitution and bashir should be resolved by the united nations resolutions imran khan's and also expected to shore politicians that pakistan is going to continue its diplomatic efforts if i can find it insists that there is no military solution to this conflict and it is going to employ all its resources the poor mr within china and we've heard from him in the last 24 hours that the united nations security council will hold an emergency session on what he calls. human rights v

bought nearly $2 million worth of stock this comes after ge was accused of being a bigger fraud than enronin a report they said ge will be hiding the extent of its accounting issues, especially from the long-term care position culp said the accusations are false and driven by market manipulation, pure and simple. leslie sideman also pushed back on the report in an interview on "closing bell. >> i think the report is full of opinions, and this is one of those cases where i'm not sure that the author of the report really understands the accounting in this area. we have generally accepted accounting principles, then we have statutory accounting principles, then we have other people who just, you know, inject their own opinions. >> ge's accounting practices are under investigation by the department of justice and the s.e.c. related to its insurance business and problems in its power division the company has denied accounting fraud in response to lawsuits and says it is cooperating with investigators >> that's a story we'll keep following. >>> when we come back, the art of the deal. president t

trade whether it's trophies or products is sustainable and legal but when it comes to elephant ivory enron or horns global trade is outright illegal and it will stay that way some southern african nations had wanted to sell government aren't ivory stockpiles but others successfully argued that fuel demond and illegal poaching the un has warned over a 1000000 animal and plant species face extinction environmentalist believe much more needs to be dumb to stop the decline in biodiversity that they say is unprecedented. or talk to. his the wildlife practice policy manager for the world wide fund for nature and joins us from geneva thanks for being with us. first of all give us a sense of where things stand with respect to wildlife diversity how serious is the current decline. the climate is really critical at this stage there's a multitude of factors that are playing there's climate change there's loss and degradation of habitat there's alien invasive species and then what's being talked about here in geneva the moment is over exploitation that's driven by international trade and demand in oth

electric's stock has been plunging amid allegations of a massive accounting fraud bigger than the enronndal. a whistleblower claims ge is using accounting tricks to hide its losses, amounting to $38 billion. the company calls the claims false and misleading. >>> now to a growing concern for travelers who stay in short-term rental properties. hidden cameras. two friends on a trip to atlanta say they found a camera in one of the bedrooms of their airbnb rental right next to the bed. they say the device was facing outside but they're concerned it may have recorded everything they said. >> you hear about this happening but you never think that it's going to be you. at first it was obviously dark and it was like in that corner. my immediate reaction was oh, there's something down there, it kind of looks gross and then it was us whispering, oh, god, there's a camera. >> airbnb says it has a zero tolerance policy for cameras in the bedrooms. the company has removed the listing from its website and says the safety and privacy of their guests are key priorities. >>> so miniature horses can now f

i don't think this is enron. this is definitely not enron. stuart: okay.t's still at $pai8.60 a share. a few years ago that would be unthinkable. >>> how about capital one? the "wall street journal" reports that some employees raised some red flags before the big hack. tell me more. jackie: the "journal" is saying they were worried about the strength of that cybersecurity unit, that there was a lot of turnover with the employees and maybe the company had not invested enough in software to defend against these hacks. page thompson, that former amazon employee, got in there. she got the data and there was a breach. we believe that it was not used for nefarious purposes at this point, but you know, it raises awareness on companies strengthening those units, making sure they're secure for customers. stuart: capital one up a little bit today but not recovering fully from where it was previously. show me the techs, the big techs. where are they now? all up this morning. all right, david. take a look at those on the screen. do you see any bargains there? anything

market value the report by analyst terry markopoulos titled general electric a bigger fraud bigger than enron made a big splash due to mr moore complex his past role in warning the securities and exchange commission out about disgraced financier burning made off massive frauds years before the scandal broke the c.c. ignored mr moore couple of says tape in that case but he went on to uncover at least one other major financial scandal and develop a niche career as a financial whistleblower despite mr markopoulos is record some critics question the reliability of the report due to the analysts financial stake in a hedge fund that is betting on a fall in g.e. stock price in a press release spokespersons for general electric said quote g.e. operates at the highest level of integrity and stands behind its financial reporting. as caesar ronnie an oil tanker will be released despite the calls from the united states to have the ship seized the supreme court in the british territory of gibraltar approve the release of the grace one so artes in the region so that they no longer wanted to hold the tanker

it has criminalized marijuana use in an enronment where blue states like ours are actually making itegal, and there is a responsibility on the part of not only those who are running for president, but an expectaf the base that's half people of color to redress those harms and to make things right through policy and practice. and k a racial-justice lens on criminal justice is forcing biden -- joe biden, who was a longtime advocate for criminalizing lots of behavior that's beecoterrible for the blacunity -- black and brown communities -- to really turn on a dime to try to adopt different policies. lagos: you know, we are seeing a huge debate about the future of the democratic party, if they're leaving behind more moderate voters. but isn't tht primaries are for? i mean, do you think that this is -- that they're in a bad place here, or is it still early y? beason: i think it's early, and better to have this conversation now than in 2020. i think that the party has to decide what it is. that's what i'm otaring when i talk tos. they want, i think someone mentioned, moral clarity. they wan

i apologize we're going to have to leave it there we have run out of time geo political experts of enron to thank you for your time and your comments. conservative activists in the united states are celebrating after a court agreed to reconsider a censorship case against facebook google twitter and apple that's bringing the lawsuit accuse the tech giants of bias and of suppressing content from the conservative and of the political spectrum controversial right wing activist laura limor is leading the case with a group called the freedom watch she's known as someone who's been banned from all kinds of online platforms from twitter and facebook to pay pal and over a lawsuit also allegedly for tech giants have violated the 1st amendment and us anti-monopoly laws there have been a growing number of leaks and testimonies from those who work for big tech alleging anti-conservative bias. even a blacklist where if someone. shows that there are conservative then they'll be blacklisted between different companies and different teams and that really needs to change i see google executives go to cong

to day with the people of kashmir interesting also martin there have been 2 tweets by enron all starmore d.c. speech and i was one of them he said where the wars. are not their separate. massacres in india and made war on terror the international community he said. that happened then it would have. reaction endomorphism were said during all radicalization and of why ill and in another tweet also he said. that people are not supported by the. party. to carry out their trucks their days i need. not forget their decision i mean if. you're all right and he was liberated the butcher of drop. didn't come out high and i thank you very much indeed live from the pakistani capital islamabad. now the emperor of japan has expressed his deep remorse for what happened during the 2nd world war not he made his 1st speech to commemorate japan's defeat since his in strain meant in may the 1st japanese emperor to be born after the war pledged to reflect on the past and hopes that the devastation will never be repeated in the emperor's words came as around 50 japanese politicians marked the anniversary

the report declared ge the next enron.tless and the company says it, quote, operates at the highest level of integrity and stands behind its financial reports. >> they're having a meeting right now. >> yeah. actually said it is bigger than enron and worldcom combined. that is how big he said it was. >> call it meritless and baseless but somebody is meeting about what to do. >> the ge ceo went a and bought 250,000 shares of his company mething going on.ng so there is a little questionable how this investigator was paid on this project. he released the report to a hedge fund before it was public and then made money off the trading that hedge fund did. it doesn't smell right to me. >> they also think he is after the whistle blower money. >> there are a lot of questions still out there. >>> all right. an investigation is under way after a corrections officer drove his truck through a group of protesters outside of a detention center in rhode island. >> whoa! >> you can see people standing in front of the truck and then he plow

liz: china has bern called the people's republic of enron. here is the thing. what the media is not reporting is what you just said. our u.s. consumers are firing on all cylinders. target is seeing its best sales since 2005. the yuan is collapsing to 2007 levels. >> the reason why it's collapsing. any elementary financial textbook is going to tell you one country puts tariffs on another and there is a trade deficit between them. the currency will recalibrate. this is one of the few times in history the textbooks are actually right. the chinese currency plunged to that level you are talking about when trump announced the tariffs. that's the level they have been defending during the crisis of 2008 and 2009. they are through that defense barrier. they are over the river, and we don't know if we know how to swim and they don't know either. liz: here is the thing, china is a national and economic security threat. that's what the president is saying. it wants to dominate the global economy. the made in china 2025 initiative. president x, is president for life. -- pre

since april of 2008 when madoff whistleblower just yesterday called the company a bigger fraud than enron and deere is up near ly 7% despite an ugly quarter. here to discuss these topics are morgan brennan and anesh gupta >>ge's ceo buying more shares yesterday which combined with his big purchase u tuesday nearly doubling his stake in ge. that plus a number of analysts and investors including citron batting down conflicts of interest, conclusions, also the rhetoric used in the report used yesterday. all that's helping to support shares today william blair arguing it has adequate resources citi perhaps capturing it the best quote allegations have holes, but do highlight ongoing concerns we think the market left ge's march insurance teaching with a bert understa better understanding of the company's liability. but also weary of the potential for another shoe to drop here's how leslie sideman responded yesterday. >> when i saw the report this morning and had a chance to just flip through it, by initial reaction was that i thought it was full of misleading, inaccurate and inflammatory statem

inflammatory report from marry marco polos accusing the company of fraud and a scandal bigger than enronnd -- combined >> the numbers are missing they report top line revenues, bottom line prots and nothing in between like expenses, research and development, it's all missing. including cash flows. they don't provide working capital. it's the only company in that industry to provide working capital. ge's working capital is minus 3 billion. their current ratio is .67 they have a company that does that that's accounting 101. >> so ge board member leslie sideman joined me in an exclusive on closing bell yesterday to respond to this saying the claims were baseless and set a dangerous precedent. >> i think we have to get to the bottom of this i think this report today set a dangerous precedent where somebody can just say things and then potentially benefit monetarily, significantly from the decline in the stock of the company. that is wrong. and i really think that we need to investigate the motives for this and -- because here we have mr. marco polis and whatever this unnamed hedge fund is pr

green, rounding out our panel, is currently -- he is everything political but currently he is the enron president at the university of akron because he did not have enough to do. he has been a pew research fellow and a go to source for commentary on all things political local journalists and national journalists as well. lee's join me in welcoming our panel. -- please join me in welcoming our panel [applause] i would like to throw this out for general discussion and hear from all of you on this. we are in the midst of a democratic primary. somewhere between 20 and 30 candidates officially in the race. somewhere around 20 candidates who get to be in the debates we are watching. and given what we -- what the first two rounds have shown with 10 candidates each, what is the state of the debate? exciting thing is people do seem to care about debates. there seems to be some appetite for them. if we think about the first night of the first debate, 15 million tuned in with another 9 million online. second night, 18 million. it was a drop off in the second debate but we still saw millions of peo

so could admitting between gangs has enron happen?crone he could actually be a couple weeks away. >> at a given point in time, there will have to be a meeting between the american and the iranian president that i would hope that in oncoming leaks, such a meeting takes place. (woman) banjo! sorry, it won't happen again. come on, let's go home. after 10 years, we've covered a lot of miles. good thing i got a subaru. (avo) love is out there. find it in a subaru crosstrek. (avo) get 0% during the subaru a lot to love event. liberty mutual customizes your car insurance, so you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ you wouldn't accept from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. flonase. thanks to priceline working with top airlines to turn their unsold seats into am

he says a fraud bigger than worldcom enron combined. stocks shares are up 11% today, why? in response to the allegations, ceo larry culp bought $2 million of shares yesterday, he said this in a statement, quote, ge will always take any allegation of financial misconduct seriously. this is market manipulation pure and simple. mr. markopolos contains false statements of fact. andrew left of citron research he published a note saying it was the sad day for the activist short selling community when march markopolos issued his report. everybody will be looking into this. melissa: no doubt, jackie, thank you. connell: on booming economy president trump warning voters a 2020 win for the democrats would throw u.s. prosperity, quoting now, down the tubes. melissa: sounds like trump. sounds like what he would say. connell: that was definitely a quote. melissa: yeah. connell: could include your 401(k) he says. could recession fears weigh on the president's re-election? steve forbes coming in, forbes media chairman. melissa: dueling election pitches, elizabeth warren gaining steam amo

i do wonder, jennifer, after enron and ken lake died, they couldn't go after his estate anymore.s it go ahead. >> that's true. that's true. they can't go after his estate, except civilly, of course. >> okay. >> i do think a criminal conviction against someone else involved in the plot will help them in a civil case against 's. the criminal case with respect to epstein is done. they will have to file and it will not continue. >> chris, the department of the inspector general has to be all over this. you see senators like republican senator ben sasse saying heads must roll, this was a major dropping of the ball, if you will. working with the fbi, what is the inspector general going to do now? >> yeah. it's pretty outrageous. nobody sleep, i hate to say, over epstein, but it is potentially egregious conduct on the department, bureau of prisons. they are going to look at the autopsy, the guards, anyone who attended to him or anyone in the hierarchy of the chain of to do with decision making regarding how he was treated during his stay there. social media, video, evidence of texting,

yesterday when bernie made off whistle-blower accused the company of orchestrating a bigger fraud than enronge forcefully responded. ceo saying ge will always take any allegation of financial misconduct seriously but this is market manipulation pure and simple. so what's next for this battleground stock let me bring in herb greenberg and tom. and it's great to have you both here herb, let me just start with you. what was your initial reaction to this report, which has been as criticized as it has been read because of all of the factors including that is working with a shortseller, that he didn't contact the company during this. we've had a number of people coming out to ge's defense today. but you've seen a number of these issues with accounting frauds so what are your thoughts as you read through this? >> well, i was looking at it from a different perspective because i was interested in specifically what he was saying about subsidiaries of the company. but, you know, this has become kind of interesting because now you've got short versus short. you've got spy versus spy. it reminds me a tre

shares on pace for its worst day in five months a whistleblower calling the company a bigger fraud than enron. the investment committee weighs in plus, the desk is ready to answer your questions. go to cnbc.com/"halftime" or tweet us @halftime report. scott and the trait remembers back in two minutes. devices are like doorways that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. >>> welcome back, everyone i'm sue other rarea with your update far has released an iranian supertanker. they made a decision to delay after the just extended the extension but they said there was no u.s. application before the court. >>> a new zealand court held a hearing in the case of b

evidence going back 10 years the paper says the deal worth $800000000.00 involved a company connected to enron 2 leaders the paper goes on to say that the advance of aliens aircraft are gathering electronic intelligence and one of the targets is iran what do you want your coffee is the c.e.o. of the geopolitical risk consultancy gulf state analytics and he thinks israel has the ability to share a lot of intelligence with the gulf states. i think more and more arab governments have been coming around to accepting the fact that israel regardless of what one thinks of the country is a permanent reality in the middle east israel also it has a very powerful military it has you know great it has the ability to share a lot of intelligence with the arab gulf states like the united arab emirates. so it seems to be very pragmatic how certain members of the g.c. see believe it's in their interest to pursue a deeper relationship with israel even if it remains tacit and they go out of their way to make sure that these interactions are somewhat low profile but given the fact that officials in israel in thes

when you hear enron is he being hyperbolic or are you concerned this could be increased tension in kashmirplaces in the world. we see always the middle east, hong kong and now we have kashmir. when one side shuts down communication, even though president trump has been talking to both leaders this week, encouraging them to talk to one another, we would hope pakistan would reconsider that. how would you expect the indians to respond to that kind of comment from imran khan given that they need to appear strong before the electorate when it comes to kashmir? the answer that, you have to go back and try to understand why this happened. i would propose that it happened for three reasons. one is that he is looking very carefully at the region and his threat of terrorism against india, which has been a long—standing threat from pakistan, and he sees the us potentially pulling out as a stabilising force out of afghanistan. that concerns him because we have been somebody that has been occasionally putting pressure on pakistan to quit the strategic games and playing by the exporting terrorism to afg

in 2001 we had the mild recession and it was 2002 where you had the bond bubble explode with enron andld com i think the same thing is starting to happen here. you have so many corporate companies that are really overleveraged. they're been issuing debt to buy back stock and it is finally coming -- you know, they have to pay the piper now that growth is slowing and profits are falling. >> so when you are talking about a bubble in the bond market, you are talking specifically about sports or are you including the ten-year on this >> definitely governments. you know, you think -- look around the world you know, german bunds are down at negative .6 japanese bonds are negative. swiss bond market's negative, out to 30 years. who could possibly believe that? it is just because the marginal buyer, the buyer of last resort, the ecb, is doing noneconomic things so u.s. rates are now following that and there's a lot of talk about this yield curve inversion. one of the things i think is very interesting is if short rates were where they should have been, right, if the fed had raised them to equal

made off with whistleblower calling ge a bigger fraud than enron and saying in fact that ge is on the verge of insolvency. some of the up stock and some of that down stock and is white when it up - if you look at the three with a mixed picture. connell: thank you, deirdre. melissa: let's bring in today's market panel. lenore, low and behold, walmart is able to navigate around china. who knew? we said from the beginning that there isn't just one country selling things but this was supposed to be the quintessential example of where we were going to get slammed based on this trade war was cheap t-shirts being sold at walmart but they can do it, i guess. >> yeah, very impressive with how they are managing to do that and also what i was impressed to see how you been able to shift more online because that's an area they were struggling in. as you mentioned, retail sales came in quite strong and if you look at over the past three months online sales versus in-store sales for retail in general have been growing at 4.5 times the pace for the online first brick and mortar. what we saw with walm

>>> welcome back quote, a bigger fraud than enron and worldcom combined. that's what madoff whistleblower harry markopolos said about general electric's accounting in a scathing new 175-page report out this morning shares are dropping on this news, down about 13% markopolos joined us earlier last hour. take a listen. >> ge is losing $5.27 for each dollar of premium income they are taking in. those losses are unsustainable and they're growing at an ex exponential rate for 2016, they grew at a 16% rate they're growing exponentially and will make this company probably file for bankruptcy >> ge responding saying they haven't been contacted by mr. markopolos another report was created to help with ge shares. you can see the stock down about 11% right now. certainly lower. carl, we know that markopolos is, you know, in fact working for an undisclosed hedge fund. we pressed him to find out who that was and what that financial situation looked like. a hedge fund that is looking to short the stock, but also coming out and saying that, you know, he's working on beha

because shadow bankings, the things we did with world com and enron, that's more attractive now nthan it was six months ago and they're going to intensify in the next year or so based on what those yield curves are doing. >> you think they're multiple years, two, three four years out from a credit crisis, not 18 months? >> if you look at the most liquid heavily traded futures contracts in the world, they're telling you that there's a series of rate cuts coming for the next two years and that curve is steeper now, which is telling you that those investors who are closest to the economy think the glob eco is going to slow that, inflation is going to go down and if the fed finally responds to that, that's going to lead to a very positive environment, the same thing that happened at the start of this year when your show debuted, the fed turned around, caught up with the market and we were off to the races. >> and that was just as you had described. so, sandy, meanwhile you are looking at a couple of names in particular, kind of like craig where you say i can still find value in this marke

got to this story madoff whistleblower releasing report calling general electric a bigger fraud than enronnow keep your eyes on our screen at the same time. dom chu joins us i know he has been pouring through the details. >> reporter: i mean it's 175 pages of details harry markop markopolos we have been getting it wrong the last few years here. anyway, 175 pages. the crux of this report deals with allegations that harry markop wil markopolos he is alleging a fraud 38 billion over gem electric. a lot of that is tied mostly to its long-term care in its insurance businesses talking about this idea that they may need to boost reserves there in order to account for that business and some of the potential liables down the line that it may have he alleges that this is the biggest insurance fraud that he's seen bicker than enron and worldcom combined. he also says that of the 29 billion in new reserves that general electric needs, per his report, his allegations, that 18.5 billion requires cash immediately. he also goes on to list a number of other reasons why there are accounting issues at genera

strum) (light music) - [philippe] animals have adapted to survive in some of our planet's harshest enronments

ge has a massive accounting fraud totalling $30 billion and that it's potentially even bigger than enronyou are seeing on the screen right there. before we get to the allegation, i want to get to the comment i got from ge this morning. their spokesperson said the claims made are meritless. the company has never met, spoken to or had contact with mr. markupolis and we are extremely disappointed that an individual with no direct knowledge of ge would choose to make such serious and unsubstantiated claims. some of the claims in the document are, these are the allegations from the whistleblower, that ge has been hiding roughly $29 billion in long-term care losses, that pertains to their long term care insurance unit, think nursing homes and all that, then they need an additional $18.5 billion in reserves. they have issues with the baker hughes accounting. they also went on to say in this document that ge changes its accounting reporting every two to four years, making it much harder to prevent comparison, and they argue that the company could potentially go bankrupt from all of these changes

remember enron? host: yes, sir. caller: what happened to them? that is david in maine, our last caller in this segment of "washington journal." about one hour left today and we will spend it talking about the battle for control of the house in 2020. we will be joined next by david wasserman from "cook political report." we will be right back. ♪ >> watch book tv for live coverage of the national book festival saturday, august 31, starting at 10:00 a.m. eastern. our coverage includes ruth bader ginsburg on "my own words," david troyer on "the heart of wounded knee," cheryl robinson on "childhood of the dream," the author of "the british are coming" in the founding director for the m.i.t. center for collective intelligence discussing his book, "super minds." august 31 at 10:00 a.m. eastern on sisi and -- on book tv on c-span2. ♪ >> the house will be in order. has been years, c-span providing america unfiltered coverage of congress, the white court andreme public-policy events from washington, d.c. and around the country so you can make up your own m

let look at shares, yesterday after the whistleblower called the company a, quote, bigger fraud than enron ge fraudulent financial statement and also said that needs to increase reserves are more than $18 billion, current ge ceo lawrence denied allegations, the charge, of course, market manipulation, ge shares are rising ahead of open, you can see 1 and 3 quarter percent jump right now. talk about too good to be true and amazon promotion for series coming back, offered drivers 1959 pricing at select stations in los angeles yesterday, well, this includes gasoline for 30 cents a gallon, right, well, the severe discount caused traffic jams, remember drivers in california are used to paying $4 or more a gallon, police had to step in, temporarily suspend the promotion, not a good idea to put 30 cents a gallon in los angeles. dagen: what year was that -- >> 1959. it was like other stores around la, so selling 2-dollar manicures. dagen: i'm doing the inflation calculator, i'm going the figure out what that is, 2.65 a gallon. cheryl: still a smoking deal. [laughter] >> yeah. and manicure. dagen: i

britain's pro european liberal democrats have won the parliamentary seat in the wash community a break on enron a sure and a by election the victory is a blow to prime minister boris johnson and reduces his working majority in parliament to just one ahead of an expected showdown with lawmakers over a possible no deal brax it. tonight to attitudes about the past and present in stark contrast the u.s. ambassador here in berlin today slammed germany for not joining an american led naval mission in the waters off the coast of iran disapproval from washington with a subtext slash sermon to berlin don't forget what we've done for you you owe us at the same time germany's foreign minister was in poland to commemorate the 75th anniversary of the warsaw uprising against the nazis berlin to the polish people we haven't forgotten what we did to you we owe you i'm bord golf in berlin this is the day.