we'll see how ge does. >> ge hitting back last hour i spoke exclusively with ge board member and auditttee 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 is the former chairman of financial accounting standards board, so carrying some weight there. ge gettin

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 be one of those talkers because everybody has a stake in not just the financial side of things but just what this speaks to about the corporate governance side and everything else. >> ge remains one of the most searched tickers on cnbc's w

ge hasn't done that. to compare it to unum, their loss ratios for 2018 were 90% they took in a toller and paid out t90%. prudential 81% ge 527%. many times grater. it's unsustainable and growing. >> did you look at gen worth as well that was a company sfpun at of e in 2004 and some of that lt esurance business is stied to there. >> they took a $600 million reserve increase the difference between the garoppolo filing numbers and the statutory reserve requirements are now zero that company came clean a year ago. they took the best long-term care off of ge's books and the toxic stuff remained back at ge in 2004. >> one of the things that's surprising to the street right now is the claims you are making around money and the way the company is accounting for baker hughes. >> baker hughes is a veritable interest and accounting requirement. ge owns 54%. they control the voting. they don't control the cash flows and assets ge put it on their books on a consolidated basis they should not have they should have take

shares fell more than 11%, the worst day for ge since 2008.n brennan is covering the story for us tonight from the new york stock exchange. good evening, morgan. >> reporter: good evening, sue. init is a devel story. quote, a bigger fraud than enron and world com combinha. that's madoff's whistleblower and financial investigator harry markopolos said about general electric's accounting in a scathing 168 report that was out this morning. it asserts t at theounting fraud amounts to 40% of the conglomerate's markeue and that the company has masked the financial problems. the report focuses largely on ge's long-term care liability, saying it is a bigger liability than the company is letting on. >> we went through the statutory filings for long term care and pulled the regulatory filing for the year 2013 to 2018, and we saw all of the losses falling os to ge's b and we saw how much premium dollars they were taking in and what their loss ratios were. ge is losing $5.27 for each dollar ofum income they're taking in. the losses are sustainable and gro

this is ge. ge is in just about every portfolio. liz: not anymore. >> it's still big. stock. >> what's the market cap? the market cap is huge. i'm just saying this is still an important stock. liz: $75 billion. >> okay. we're not talking about a small company. it's in a lot of portfolios. it just is what it is. you know, the faster they get in there, i hear they are in there. now, what is my belief? listen, ge is essentially saying markopolos is manipulating the stock, okay? markopolos is essentially saying ge is committing accounting fraud still to this day. it's not accounting for its insurance reserves and other issues. who's right, i can't tell you. liz: can the s.e.c.? are they going to step in? prediction. >> i think they've stepped in. that's my prediction. they are in there. remember, they are in there anyway because they are looking accounting issues at ge. from what i understand, ge told the s.e.c. that it believes markopolos, because he's working for a short seller, is manipulating the stock. ge declined to comment on that but i understand they have relayed

ge is now responding. this is bloomberg. ♪ ♪ caroline: ge plunged the most in 11 years.wer is taking the company. issays the cash situation far worse than disclose. is far worse than disclose. issued the following statement. then, the short company he was working on one and two for the buck. here?s going on , the sheerhings new scale of it, $29 billion, has that caught our attention? >> he is working with an unidentified hedge fund, so he has motivation but a financial interest at stake. the issues he has raised are not new. there are three key points. ge isrst is he feels under reserving for long care insurance business. he says they are not properly accounting for their stake in baker hughes, and they are generally opaque with the finances and not giving enough detail, and there are gaps between how they get from one number to the next. all of these are known issues magnitude ofthe the insurance reserve requirement is bigger than the other estimates, but it is well-known they will probably need to put more money into the business. it is a virtual money pit in some ways

based hedge fund shorting ge right now. is is not giving us any of those details or what name so that certainly, that tie seen as a conflict of interest is raising eyebrows on. none the less, when you look at the long-term care business and ge's history of accounting and its financials, it is not necessarily surprising to the analyst -- or more issues being raised where the company's numbers are concerned. we'll see. we're going to keep digging? >> it was also known that general electric write ent righp to the edge in many ways they were aggressive in terms of their accounting, but the individuals who ran ge, whether it was mr. flannery and his team, mr. culp and his team and immelt and his team, they had to know that by signing financial statements, they were pledging under penalty of going to jail that those statements were accurate and correct >> yeah. yeah and i think when you look at what's going on with ge right now, i mean you have regulators who have been investigating the company from several different agent issici

ge stands by its financials. we operate to the highest level of integrity in our financial reporting, and we have clearly laid out our financial obligations in great detail. okay so a couple days ago stephanie link was here on the show and said she had added to her ge position in the face of some of the weakness i wanted to get a comment from here and here's what stephanie link says. who knows if other investors feel the same way. i think that this is as gross exaggeration in terms of the stock move liquidity is fine with 46 billion in bank lines and 11 billion from the baker hughes ge sale and 21 billion from the biopharma share. that's a shareholder's perspective, that's one. an interesting one, someone who runs a pretty big portfolio at tiaa. >> what do you think >> we've been diagnosing this for two years. you've gotten tired of me, hey, i got more unusual in ge puts. >> single digits from the get-go. >> july 2017 is when a lot of this really started and when i say started 50,000 plus options being bought to

ge forcefully responded.eo 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 tremendous amount about herba

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

we will see how ge does. >> ge hitting back on "closing bell". spoke exclusively with board member and audit committee shar leslie seidman who said there's no basis. >> 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. i really think that we need to investigate the motives for this and -- because here we have mr. markopolos and whatever this unnamed hedge fund is probably benefitting significantly financially today, and yet the holders of ge stock have suffered a loss. >> ge getting support from noted investor stanley druckenmiller who has been short the company in the bas he told cnbc, quote, i believe culp, i bought stock today tyler, shares plunged today, finishing down 11%, worst day since the financial crisis however, given the disclosure we got a short while ago about culp adding to his ownership stake, it is up about 3% in the after hours trade. >> morgan, thank you very much morgan brennan worst d

ge's working capital is minus 3 billion.heir 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 probably benefiting significantly financially today, yet the holders of ge stock have suffered a loss. and i just think it's wrong and we need to look into this sort of unsubstantiated reporting without him ever contacting the company for comment or for an opportunity to respond to any of the allegations. it's just wrong and i think we need

cisco, ge, procter & gamble is moving higher today. for an see the vix going ride and we were at volatility levels not seen in many months. we will take a look at walmart. we are seeing almost 4.5% move higher. shery: it's really interesting to see walmart and the difference that was so important. it's been really interesting to see that discount retail has outperformed both luxury brand and department stores. overall we are seeing u.s. retail sales pretty strong. also the fifth consecutive month of increases. this despite the fact that we are getting lots of mixed signals when it comes to those trade tensions and the trade war escalating. really interesting that alibaba beat all of the highest estimates. they have a high presence in china. getting a peek of how chinese consumption is doing despite the fact that the trade war continues to go on. war is part of the reason we continue to see recession fears. consumers seeming to be solid. the jump in retail sales having people believe perhaps it's not as bad as we thought. lorraine is wi

highlight fe, in is difference between fraud and aggressive accounting -- ge.ing rules, did it aggressively versus any fraudulent activity. in the past year you've seen a lot of movement in ge's stock. i will end on this note. you can't forget the sec and doj are looking for the accounting practices for ge's power business. this is going on for a while. has nothing to do with the most recent report. charles: the stock was $66 back in 2000. it has been mostly down ever since. kristina. thank you very much. >> thanks. >> we're thinning our gains. hanging on pretty good. the final hour of trading has been crazy. one magazine is making waves with its cover and i agree. we'll be right back. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic

investigator accused ge of e engaging in accounting fraud worth $38 billion.iding for bankruptcy and is hiding $29 billion in long term care losses. ge called the claims meritless. he's known for warning investors of schemes. shares of ge slumped more than 11% on the news. >>> cbs is facing a possible boycott after a public fight with a birth control delivery startup pill club. the companies are feuding over how much cva pays pill club to send to its customers. they are, quote, at risk of their birth control being disrupted. some shoppers and pill club members are calling for a boycott. cvs says the accusations are extremely misleading. >>> toift aat&t and t-mobile ar teaming up to fight robocalls. >>> previously call verification was available for in-network call, but now it will apply to calls from t-mobile to at&t and vice versa. kmoer -- customers will see call verified on their screen. the fcc mandated all carriers provide verification across networks by the end of the year. >>> amazon is reportedly paying its warehouse workers to say good things on twitt

it is not just ge. the fall-out is being felt from washington to wichita. phi lebeau. >> reporter: since the grounding of the 737 max, boeing has cut monthly production from 52 42. the ripple effect is being felt at ge's plant in cincinnati, ohio, where it is still buildins engi for the max. but with delivery suspended, ge expects a $400 million hit in both the third and fourth te qu. >> the 400 million of cash pressure here in the back half, 400 per quarter is, you know, what is likely toapn if we do not see a return to service. >> rephiter: in w, kansas, where spirit aero systemusuilds the lawmaker for the max, they cut cost but have not laid off workers as they wait the see what happens next. with boei >> we have looked at lowing down production. we have looked at temporary pauses in production. so we have all of that prepared to be ae to -- to implement, w dependinghen the max gets back into service. >> reporter: boeing expects the max to take off again later this year, provided regulators off on a fix for the flight control system. at a hearing on capi

still, ge has defended its accounting, saying in a statement, "ge operates at the highest level of integrityts financial reporting. they went on to say that they remain focused on their strategic path. these allegations, kate the culp culp --eo larry these allegations complicate the picture for ceo larry culp. he was working to turn the ship around. ge stock has declined some 70% over the past three years. vonnie: yes, it is quite a story. thank you. once again, ge down 8%. guy: time now for futures in focus. joining us from the cme's brand battle -- is brian battle. i guess the question is a fairly straightforward one. how are you trading these markets? guest: right now the market is focused on headlines and news of volatility. investors are focused on earnings, fundamentals, and forward guidance. right now it is a trader's market, so we are watching the headlines and reacting, for sure. guy: what do they make of yesterday's action? brian: i think you are just following the waves. it goes up and down, and you go with it. if you talk to people across the country, the economy is doing ok. the

around >> now to discuss ge and deere's earnings miss. that company has been caught in the trade war, but the shares are rebounding if you don't mind, just begin with general electric. what are the main things you think investors need to be focused on there in terms of next questions and next steps? >> thanks, kelly general electric is outside of our coverage i focus primarily on heavy machinery stocks so agriculture, construction, mining and trucks. more so like caterpillar and john deere >> on deere, ask you b about their latest earnings report so basically, there was a lot of negative macro issues affecting the company. the poor crop season, the flooding, soybean sales coming way down from previous levels. why are the shares rebounding today? >> i think you're seeing a little optimism around corn and soybeans both are up along with the stock market and you know perhaps there were some positioning issues into the quarter with people more negatively inclined. maybe the results weren't as bad even though sales mismissed, earnings missed.

ge says the allegations are without merit. you have been a bull on ge.et me point out that the adviser, this analyst, he gave his report which was very negative on ge, he gave his report to a short seller before the report was made public. that implies to me this analyst, mr. markopolos, has a vested interest in this stock going down. come on. >> certainly we have to look at his motivations and how much he was paid and what he shares in terms of the short sellers' profits. but more importantly, the fact that ray culp, the new ceo of ge, has voted in terms of dissing this report in terms of opening up his wallet, he's invested $2 million of his own money in ge stock. it's a publicly traded entity, not like the madoff fund. this has been looked at for several years now by all analysts on the face of the planet and they have not found anything similar. i'm skeptical of this report. ashley: he called it a bigger fraud than enron. really strong statement. stuart: he used the word fraud. ashley: yes. stuart: which is litigious. yesterday ge fell 11%, the bigge

stanley said he purchased ge shares on thursday. idea that they are engaging in a intentional fraud is ridiculous. this is one of the most read stories on the bloomberg and it is interesting particularly given ge's history and the challenges up until now the company has been facing. matt: the history of ge is murky. notable murky financials. taking part in bringing out bernie made off. but so many big names are purchasing shares here are not just dropped in miller -- drew cadruckenmiller. let us check in on the markets from around the world. we are joined by our reporter in mumbai and in london by annmarie hordern. back arounds 11,000. is there more room to run? we missed out on trade yesterday. this is more of a cover-up. is trading inn the green. we have not been able to mirror that. back to these levels. manage to hold the -- theachieved on friday markets are still looking we. ak. a shallow market. it will be interesting to see what happens at the end of the trading session. nejra: thank you so much. you're looking for further re

ge getting whacked a whistleblower raising red flags abou

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ge really down. 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 genera

>> i saw another 250,000 shares of ge today. what's going on is this >> caller: i want to give a shout ought to my brother. we all love and watch your show. >> thank you, the bros >> caller: yeah, man my question is for caterpillar >> yeah. >> caller: the stock is down from a 52-week high of 159 do you agrees that it is under valued >> yes, i do, but you know what, i got egg all over my naacp on that i got like, you know, holland days sauce on my face. i bought it for the charitable trust. i play with an open hand and brag about the winners if i could hit myself over the head with a hammer because of kalt pillar i would. the stock is cheap, but i think it's going lower i never sit down cat made me sit down >>> let's talk to dustin in virginia dusty. >> caller: hi, jim, booyah, thank you for taking my call >> no brob >> caller: bst technology, they beat projections last quarter but lowered future guidance. is this a buy or sell, hold? >> don't you buy that stock. don't you dare that was one of the worst quarters i've seen i don't

ge's ceo larry culp now responding.asparino has it. >> well, he's responding that the whistleblower is full of it, that he ignored facts, he did not check with the company before publishing this. often analysts don't check with the company. it's more of a reporter's job to do that. it's interesting, if you read between the lines, he also claims that markopolis is doing this to drive down the stock and is working for a hedge fund that's looking to short the stock. that is true, by the way. i'm not saying there's anything wrong with that. paps part that's part of the market. shorts perform a value able market service. they get negative information out there so the market can ingest both the positive stuff that the company generally puts out and the negative stuff, and the stock price reflects both and you know, stock prices are essentially an argument between the longs and the shorts. that's what we have going on in the dow jones industrial average right now, over the trump trade policy. we got it going on with ge. the in

after ge shares get slammed on accusations of accounting fraud, the ceo buys more.e'll fill you in. also continued unrest in hong kong, we'll take you there for a live report. bounceback friday, the dow with an implied open of 185 s&p would open higher by 21. nasdaq looks to be big winner out of gates, up by 72 we're back after this. "squawk on the street" live from post nine at the new york stock exchange see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade >>> hong kong protesters out in force right now. brian su

the move follows the report that larry culp bought nearly $2 million worth of stock this comes after geas accused of being a bigger fraud than enron. in 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

shares in ge plunge after allegations of a potential accounting scandal. the company denies the claims. following the latest escalation in us—china trade tensions, investors around the world are heading for safe—haven assets — amid worries about the global economy. the us—china trade war and uncertainty over brexit are just some of the factors weighing on markets. and that's led to volatile trading in many markets around the world. over the past nine months the price of gold has shot up dramatically — rising more than $300 per ounce. but it's notjust gold. over the same period german government debt — from europe's traditional power house economy — has been a magnet for investors — pushing returns on the bonds to record lows. concerns about global growth have really accelerated over the past 3—4 months. you can see this in demand for the japanese yen — also often seen as a safe—haven in times of trouble. pablo shah, senior economist at the centre for economics and business research joins me now. how real is the threat of a global recession? we put the risk

there may be a buying opportunity ahead for ge.e: they rose to the buying opportunity today. we thank you. we for more market analysis, are joined by the senior market editor for bloomberg news. what a week. >> what a week. i sort of question the respect today. i think the president calling to bank ceos is a big deal. it is the most read story on the bloomberg today. that tells you people are very interested in that. he is getting some outside counsel. the story i have some questions about. i'm not sure that it signals a big stimulus package. if you read the translation i read if there is a recession, there will be a drop in tax revenue. they will issue bonds to cover the shortfall. it does not sound to me like they are planning a big stimulus package. especially one to front run a recession. we will have to wait for a recession for this for one thing. it might bring the german yields up a bit. craziness inugust the markets today. caroline: what about jackson -- joe: what about jackson hole next week? michael: i'm not sure if we ar

his report also comes at a time where ge's profitability has taken a hit. 100 and has had to lay off thousands of employees. in other business news making headlines, shares of walmart jumping business news making headlines, shares of walmartjumping after reported second—quarter earnings which topped expectations and raise its outlook for the year. the well‘s biggest retailer says american consumers are in, quote, relatively good shape even as the recession concerns continue good shape even as the recession concerns continue to rise. alibaba has reported better than expected profitability. it said those results we re profitability. it said those results were boosted by growth in its cloud computing business. china will retaliate against further us tariffs, escalating the trade war which has seen companies pulling back investors four investment. the head of the aiib says the conflict has not stopped it from lending. our correspondence started by asking the bank's president how much of an impact the trade war is having on raising funds. this may go on for awhi

taylor: another company we are looking at is ge.eller came out, the short seller who highlighted the madoff ponzi scheme, came out on ge, which saw the stock fall most since 2008 and wipe out all the gains for the year. interestingly enough, not only did the ceo of ge come out with a strong defense, william blair analysts came out with strong geense, and citigroup saying says the reports highlight the holes in some of these ongoing concerns. you read for the entire report. what is your key takeaway? brooke: the primary things that are highlighted are the insurance care business and baker hughes. ge has said they've had to take a right down on the baker hughes side. i don't think that should be a surprise to anyone. the long-term care insurance business is really a black hole. it is difficult to come up with a number for how much they will have to put into this business. it all depends on health-care costs, the prevalence of alzheimer's, on interest rates. it is impossible to say how much money they are going to have to put into this

before we get to the allegation, i want to get to the comment i got from ge this morning.erson 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 in accounting practices. there is a big but, though, and that is markopolis was looking into ge for an unidentified hedge fund so he's being pai

is there any way ge is a combined enron and world com in your view? it is way too hyperbolling, number one he used the word fraud he used the word bankruptcy. he compared it to an enron i think it is way over the top so you say to yourself, why is this respected research analyst who brought to the fore the madoff crimes doing this and, frankly, he discloses why he is doing it. >> sure. >> he gave this report to a short seller who he doesn't name who then profited. somebody -- the stock was down $9 billion yesterday if he covered the short, that's more money than bill ackman made when he did his little gambit with allergan and valiant. this is -- frankly, i'm -- i think this should be something that should be investigated by the sec. >> or litigated by ge. >> about why short sellers are allowed to do this, irregardless whether there's truth to what he is saying because, as nick said, it is being investigated by the sec and justice department. >> in your reporting, bill, and you don't need to tell us what you are going to say if the book, but how would

here he is predicting doom for ge >> ge is losing $5.27 for each dollar of premium income they are taking those losses are unsustainable and they're growing. for 2018 they grew at 60% rate it's going to make this company probably file for bankruptcy >> ge director appeared on "closing bell" yesterday to refute the allegations and question his motivation. >> he seems to be con flating all of those different bases of accounting now, we can question is it become of incompetence, he doesn't understand the accounting standards here or is there some other motivation it's not acceptable to say let's stake the statutory basis and book it for gap. that's not how it works. >> bryan, thanks for being here today. real simple question why is ge up 9% right now? >> well, it all depends on where you start from and let's just start with mr. markoplos' report. there's a very good analysis in here his work on the long-term care liability is very good work but there's a lot of hyperbole and innuendo around it why is it up 9%? it's just math first got slammed significantly with the release from his report no

thean driviord comp.inmeff really waedo thaco i asked r the backseat i've everybody in druvrn moped a a ge an gtled us or old h er thsestbel requirements in re m>> wt e operation. you can use a hair net asle ne l well. ayit's w few tand it connects to you you nehborigs can. i>> ow c dof awsh enterssage. u ha iseem how reading>> aasoc tah gitikfoadxiers ias planee a buffer between pike and cars. preventl ul lxt stoying inforne andonti the gunman. a cndgomin will cardia sway demoforce bernie sanders. we're getsing a look at thedo sit wn interview between the we're getsing a look at thedo sit wn interview between the catch final five tonight ve tonight alright, so thhow it's gonna go down. you are going to say...s is. u even get this.erybody. ben, you're gonna be wowing them with your dance moves. don't miss the xfinity best deal of the year. now that's simple, awes, syeaome. it's ait's the bestl on tdeal of the year.ience. you'll get huge savings with a free speed upgrade for a year and $100 backd ask about even more savings with xfinity mobile. click, call or visit a store today. .urlostngu

a lot of that depends on reforms in the coming days and the central bank could get more .orried >> ge is taking aim at the company. the cash situation is far worse now the chair and has responded in a statement -- "ge will always take any allegation of financial misconduct seriously but this is market manipulation. >> they are betting on ge shares to slide so he clearly has the motivation but he has a financial interest at stake. the issues he raised are not particularly new if you've been paying close attention, so there in theee key points first is that they are under reserving for long-term care and they are not properly accounting and are generally ok with the way they report their finances and are not giving enough detail, that there is some gap between how they get from one number to the next. >> the numbers are mind-boggling, $74,000 per minute, $4.5 million an hour, $107 million a day. that is how quickly the fortune of the walton family, the family that owns walmart, has been growing in the past year. what is fueling the rich getting richer this year? >> the most important th

ge strenuously denies the claims. samira hussain has more from new york. electric is hiding $40 billion of losses in its insurance business. general electric has countered those claims, calling them "meritless, misguided and self—serving speculation." nevertheless, ge shares fell by 15% at one point on thursday and it is a clear sign that investors are worried. they are worried, quite possibly because of the source of the information. he has a track record of highlighting financial misdeeds, and most recently was the whistle—blower who uncovered bernie madoff‘s $65 billion ponzi scheme, the largest case of financial fraud in american history. the report also comes at a time where ge's profitability has taken a massive hit. last year, it was dropped from the dow 100 and has had to lay off thousands of employees. just to clarify, the london market is still shut. technical difficulties, apparently, according to the lsa. some slightly mixed m essa 9 es to the lsa. some slightly mixed messages coming out over trading and what is going on. joining us is mouhamme

enyoough for all your devices th'satnt if i have faster internet, it would m bethe han'dd eyghavt now, gee samsung chromebook 3 on usca or a $200 credit towards select samsung tech gaen you sign up for fiosbit coe for $79.99 per month wi th a two-year price guarantee and a two year anteeme. but hurry, offer ends august 28th. rock, paper, scissors says shoot! no! en is nual park asst that tnumbers, whatever they are, reflect the students's be when they graduate and have a , that it reflects knowledge, mastery of programs. >>or dc's and school's chcellor making sure students 68% and that's four and a half % less than a year ago. >>> here's a at some topk l stories. new information the search for two missing firefighters off the coast of florida, one of the walker.is fairfax county ceer they wen b mesofagnhusband. take a look at this r take a look at this released by mogomery county police, a liquor store hold-up on georgiah near 16ttreet in svengilr into the odployee, a third m dcahevesero ic.fflsoayinazia o he's cooling o much needed > tre rr. spooriny won tm a seven figure donation. >> th

really staggering when you think what ge used to be? reporter: that rebound was interesting given the shares of ge haven't seen that kind of drop in 11 years. this is on the back of claims there was massive accounting fraud at ge. that it soon will file for chapter 11 bankruptcy. anonymous hedge fund commissioned harry mark markopolos. march kopelousos markopolos say they participated in $30 billion of fraud that dates back to the 1990s that goes back to jack welch. 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:

shares of ge are flat after hours, but worth noting lows back on thursday. >> thank you, seema. what do you make of this >> i think the news coming from an insurance regulator is reassuring i don't -- look, the big issue here is what happens in the second half to their power business does that lead to minus 1 billion or minus 5 billion that's the story here, getting their aviation business up is something i would still be concerned about. while i can't know what the accounting irregularities may have been over the last ten years, i can tell you about the core business investors are focused on i think the turn around that larry culp and coare undergoing, especially in getting profitable going forward i think is happening. i do think there's been a surprise, and i think that's a pretty big delta on where we could be i think it's closer to 1 negative. >> where did you stand on where this turn around is? >> early you're probably -- you know, nine months into a turn around, it's probably going to take two years, two and a half years. tim would probably agree that the question is do y

. >> ge has made me suspicious of industrials, saying that they're tech companies now, right?ause three years ago, they were all, you know, commercials! hey, we're a tech company. look at all the software people were hiring. how is this different? >> it is different and we're definitely going to get into that a little bit more later in the show. for as many industrial companies out there in the sector that are looking at the industrial internet of things and this idea of connectivity and digitization of heavy industry, there have been many business models. ge was looking to be the platform of all things for everyone that is not the direction that honeywell is taking and we're going to dig into that >>> anyway, still to come, more from that exclusive sit-down with honeywell's ceo what he told me about the coming digitalization of heavy industry and next, later, looking beyond the tweets and the trade war, how investors should be lamitioning themselves ad votility "squawk alley" returns in less than five minutes. o research. yep, td ameritrade's got that. free access to every pl

company stocks dropped one worst drop ge has seen in he years.arcopolis accusg ge of being more fraudulen than enron. company 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 abo

>> some of you men will be luck wi enough to ge enough to ge ene keep it real this guy is showing usmber in that moment his wife comes up from behind him. she's so impressed by his skills -- >> [ laughter ] >> get that out here! you need to see that. >> oh. >> i was like how is he doing that? >> they look out for each other. when somebody is trying to fool you, take 'e family and boyfriend in jamaica. she is standing right next to her man. she's about to take that cover off to reveal her sexy, oh so handsome bathing suit. >> yes. >> i was going to say you mean cute? no answer. >> no, i did mean handsome. on the bathing suite is a picture of her boyfriend. this is the best part. she's just playing it off like this is just my bathing suit. her man does notice there's a face on the suit but doesn't quite get it. >> she's like -- >> when he realizes it's his, he cracks up. look. it's not just in the front. it's also on the booty. >> i love this. i love this. this is cute. she's like, mm-hmm. >>> it's a pops twist to hmm. [cell phone beeps] hey! [police whistle blows] [horns honking] woma

leg which by the way he he's been to, he loves renaissance fairs, which ty're . >> i'm not going to ge a hard time his ideas not too bad. >>f the number friends i have that are right leaning libertarian they s a lot they agree with andrew yang about. >> also unlike, candidates this guy's authretic. the rest canned hacks. this guy is an authentic cuman beings. anned hacks. >> choned hacks. >> i tht you were saying canned ham which i believe you can get that f at the iowa state fair. >> i like -- he's a real person. >> are you part of the yang gang willing to annou the final fivenc you t oim aren a member e yang gang. >>n can't swear o television but we'll just go with hell no. no way i want himn there. he has the idea of sending all of the dephetments around country, great idea. i want to make s we're doing es. this. we talkela about gnd, i'm excited about this. >> yeah. i want to be governor of agree sgland you want to be governor of greenland. not do that, you haveo answer a couple questatns around the st you want toeign over. > facts don't matter in americ >> tim young playing the li

it will be 94 on sunday, but both days hot and humid and both days a chance that we could once again ge isolated pop-up shower or a thunderstorm. but once again notng organized. i'll hav the full detai and a look at the heat that's even going to get worse coming up on the seven-day forecast in a whil sarah. >>> jeffrey epstein's death has ficially been ruled a suicide.t the autopsy from the medical examiner in new york says theill air financier hanged himselfn his jail cell. he was found in that cell in a federal prison in manhattan on august 10th. he was facing sex trafficking charges. >>> stafford county parents in shock this evening after receiving a letter that said a man boarded a school bus transporting students to a local high school where he was able to get apinside. this hpened yesterday.he re's fox5's anne cutler. >> police are calling this 26 year old man m aental health subject. they say he was very young looking. he's not facing in i charges but this major security breach on e first week back to school i sending shock waves through the entire community. that man was bare fo

caroline: ge plunged the most in 11 years. expert who blew the whistle on brady made off is taking aim at the company. he says the cap situation is far worse than described, and now chair and ceo larry culp has responding in a statement. "ge will always take any allegation of financial misconduct seriously. but this is market manipulation, pure and simple." : they are working with a hedge fund betting on ge shares to slide so he clearly has the motivation but he has a financial interest at stake. the issues he raised are not particularly new if you've been paying close attention to the company. there are three key points. the first is that they are under reserving for long-term care, and they are not properly accounting for their stake in baker hughes and are just generally ok with the way they report their finances and are not giving enough detail, that there is some gap between how they get from one number to the next. matt: the numbers are mind-boggling. $74,000 per minute, $4.5 million an hour, $107 million a day. that is

ge boss larry called the claims market manipulation, pure and simple.to sophie kamaruddin for a check on the markets as we head to the open in tokyo, sydney, and seoul. sophie: futures are pointing lower across the board with the cost be set to play -- coffee set -- kospi set to play catch-up. nikkei futures in osaka hinting at further declines after the index fell below 20,500 point and jgb markets in focus. the 10 year yield sliding t -25 basis points for the first time since 2016. this as we have the boj's bond buying on cap today. belownchmark rate fell the target arranged on august 6. trading ever lower. morgan stanley securities says the boj is highly likely to take action and cut buying today to stem this decline that we are seeing in jgb yields. send a strong signal and would be the biggest reduction in the five to 10 zone since september of 2016. mapped.ct will not be it does make it difficult to go against the bull-flattening trend we are seeing. australia's biggest gold producer posted a 22% jump in annual profit on higher gold and copper out