today after accounting experts said the american firm has concealed major financial losses and g.e. shares tumbled more than 11 percent the company's c.e.o. denied the accusations and noted that the report was bankrolled by a hedge fund which stood to gain from losses in g.e. shares of the author of that report harry markopoulos is known on wall street for under covering the multibillion dollar ponzi scheme run by disgraced financier bernie made off a name that you may be familiar with so markets taking this accusation very seriously despite the fact of the person behind it could profit from g.'s losses what's going on. whoa as you mention an accounting expert who rates concerns about bernie made a ponzi scheme back in the day it's now comparing g.e. accounting practices had to and wouldn't want to send their losses to 38000000000 dollars less. and all don't forget that and loss one if not the biggest corporate fraud in history and according to to his analysis g.e. is heading to insolvency and has been changing its financial statement reporting for months every years every few years to mak

eople so >> we've seen this pattern with g.e., so the headline looks great and people initially get excited, and the sharesually pop on the day of earnings. but then as people parse the numbers and with g.e. in particular, there is a lot to parse. it's a complicated company. so manye always different things. people start to get a little bit more pessimistic. think that pattern is repeating itself. you talked about the free cash flow. a lot of really make sense to some people. when you talk about what's well,g that, they said, there's slightly better performance in power. they're lowering their estimate for restructuring for the year, which is confusing, and then sure where ally the rest of the optimism comes from. on the flip side, you have g.e. saying the boeing grounded 1.4issue could shave billion off of their cash flow for the year. it just doesn't all quite add up. that's why you're getting a number of questions about it. larry'sis hitting reputation at the moment? because that's quite damning that people are feeling that guidance that it has been putting out is falsely based in some way. but in many

g.e. rebounding. deere shares jump on the earnings miss.esting the reaction in the share price given the outlook does not look pretty. it is not as ugly as everyone feared. >> i think that is a big part of it. the outlook was cut but it is not as bad as people were worried about. even as farmers struggle with rising debt, export markets getting stifled because of trade tensions, the trump administration is giving them support payments. deere says that is one reason they may get a boost in the fourth quarter. that is something people have to look ahead to. what does deere say about the outlook over all in terms of what it can do independent of how the u.s. proceeds with the trade war? >> there is a lot of uncertainty. for a hard to predict how these trade tensions filter through -- very hard to predict how these trade tensions filter through. deere is taking a closer look at costs as a way to try to soften some of the bloat of the uncertainty -- blow of the uncertainty. caroline: let's look at g.e. the bounce back has been phenomenal. we wer

u13 >>> shares of g.e.ost exactly where they opened yesterday after suffering its worst kay in more than a decade this whistleblower accuses the company of committing a bigger fraud than enron he joined us yesterday. >> numbers are missing they purport top line revenues, bottom line profits and nothing in between like expenses, research and development, selling, general, and administrative, research and development. it's all missing, including cash flows. they don't provide working capital. it's the only company in that industry that doesn't provide working capital. in fact, g.e.'s working capital is minus 23 billion. the current ratio 0.67 if you research it in their annual report, it doesn't appear name a company that doesn't do that that's accounting 101. >> the guard responded calling the accusations inaccurate. >> when i saw the report this morning and had a chance to flip through it, my initial reaction was that i thought it was full of misleading, inaccurate, and inflammatory statements. that report

g.e. tumbles. renewed cash concerns loom over the turnaround plan. sharesng for the seventh time in eight sessions since earnings. all that and more coming up. scarlet: first, let's get a check of the markets. trade tensions have returned to the forefront again with the president suggesting the next round of trade talks in september may not happen. we have come off the lows. pretty thin trading. anything could happen in the next two hours. caroline: we know that story. bloomberg also reporting the white house delayed licensing. that has impacted the chip technology sector. sector thee tech worst kleiner in the s&p 500. up for an 11th straight day. at a record low. caroline: we are still looking for a haven. scarlet: let's take a closer look at some of the action beneath the numbers with our reporters. are you watching? >> trade tensions have been escalating. this is a fund that tracks emerging markets. investors have pulled about $3 billion so far this month. money is instead going into funds such as an etf that tracks the price of gold. we saw investors ad