Tensions around the world that sent shockwaves through out the markets. Investors are pricing in the rising geopolitical risk. Look at whats your is moving around the world. We need to start with europe. 600 falling for second day, but losses are moderating a little bit. Yesterday they were reacting to the sanctions by the u. S. And European Union and the hit on mh17. What you see in russia is a continued selloff, down 1. 08 i was speaking with hans humes, he said there was no real bid and russian strokes stocks yesterday. A little bit of moderation in selling this morning as people continue to try to get more headlines that figure out where Vladimir Putin and russia stands in this blame game taking place between ukraine and russia. In the emerging markets, down, moderate declines. Hans humes says the emerging markets are so large this really isnt putting that much of a black mark on stocks overall. , this wasf the u. S. The s p 500 yesterday. You can he we ended down 1. 2 , the biggest drop since april. It was a down day for u. S. Stocks, pretty steep drop. It doesnt sound like a lot, but the Stock Market Index has not really moved that much and about 60 trading days. Relatively speaking, it was quite large. Futures bouncing back a little bit this morning, up by two points when it comes to the s p. That has been fluctuating. It is not clear whether that will open higher. Earnings are resolving as well. I want to point out the vix. With the selloff yesterday, we saw a spike to 14. 54. That is the biggest oneday jump in a year and a quarter since april 2013. Certainly, a large group. When you look at how it is that historically overall, this is a telling chart from goldman sachs. It is fairly all quiet on the equity front when it comes to the vix overall. You has a big spikes in 2008 and right around when the u. S. Credit rating was downgraded. Yesterdays move does not even make a dent as we are in is very low volatility environment. Liquidity seems to be trumping everything else. The central bank will be standing by to put more money into these systems. Clearly, investors are just waiting for the latest developments to see where theyre going to move next. Thank you so much. As we have been reporting, malaysia air flight 17 was shot down yesterday on the border of russia and ukraine. International outcry has erupted. Ukraine and russia putting the blame at each other. Angela merkel for an impartial probe a few hours ago. For more on the crash, we go to kiev. Latest tellhe us the latest at the crash site. Theres conflicting reports about whether or not the black boxes have been found from the jet. That is right. Some of the rebels reported they had recovered those black ox is. Boxesack box or two black and it would be sent to moscow. Another group of rebels are saying in fact they have not recovered the black boxes. In addition, getting reports on the recovery of bodies from the scene. 181inian officials saying bodies have been recovered. 298 people died in the crash. Dont forget, the crash site is in rebelheld territory. Ukrainian Central Government officials, the Ukrainian Military, cannot go there. Those bodies will be transferred to the city under the control of the Central Government. Interpol has been invited to go to the city to justify those bodies. That is presumably where many of the relatives who are already arriving in kiev, many coming without their travel visas, are going to begin traveling to. You get a sense of how complicated it is to work at this crash site. Given the fact it is smack in the middle of a war zone. It is a very complicated situation, figuring out who exactly, what side, who launched the missile. Is the latest intelligence on that front as to who is to blame for this . We are getting some serious accusations coming from Ukraine State Security Service saying they believe there were three russian servicemen, three citizens of the Russian Federation not russian rebels, but people who came over from russia, part of the russian military, inside of this surfacetoair Missile System that the ukrainians allege the rebels used to attack that mh17 flight. Theyre demanding the kremlin name those three russian servicemen who, as they put it, pressed the button. In addition to that, ukrainian officials are saying they have arrested two russian citizens on the border inside ukraine. One of them carrying documents digesting he was a missile operator suggesting he was a missile operator. You can see the situation is escalating as both russia and ukraine point the finger at one another. Thank you so much we will hear more from you on this developing story, ryan chilcote. Another developing story, Benjamin Netanyahu has ordered a ground operation against the hamas controlled area of the gaza strip after airstrikes failed to stop the hamas Militants Attack over the last 10 days. Elliere on the invasion, goss can joining me from tel aviv. Tell me what is the latest there . This ground offensive began at 10 p. M. Last night and Prime Minister netanyahu talking about potentially broadening that operation saying the ultimate aim is to restore peace to israel. That includes attacking rocket launchers and militants themselves. In particular, destroying these tunnels which militants have been using to try to infiltrate into israel to carry out attacks. So far, according to the Israeli Military, that killed 17 militants and arrested 13. As this operation continues, there will be growing concern about the potential for civilian. Asualties already, there are Something Like 260 palestinian deaths, more than half of which were civilians, according to the united nations. Some countries have come out in support of israels right to describe defend itself. Turkey has been the most outspoken. The Prime Minister has come out and said israel is a state that knows best how to kill children, saying that israel is committing genocide and hamas is a party to the conflict, therefore, needs to be included in talks. Perhaps a sideswipe at egypt for not including them as in ceasefire discussions. Israel hasso add, told families of diplomats in turkey to evacuate missions at the simple and ankara. Windows were broken and the palestinian flag was planted. I believe this is the third invasion we have seen and a third operation the last six years between israel and hamas. What about the neighbors . Qatar,h more can egypt, and others, what can they do to broker some kind of a ceasefire that will last . Ordinarily, you would be looking for an independent broker, someone who can mediate and respected by both problem parties. That is a problem. It was egypt. They were on the same page and could do business. Really, turkey is not an objective observers. Qatar is not seen as an objective observers. Someone mentioned the norwegians. Elliott, thank you so much. Moving and shaking the sour, former secretary of state Hillary Clinton. She told charlie rose that hamas may feel like it has nothing to lose by firing missiles at israel. Clinton says there has been a lot of outreach to mass, trying to get the group to stand down. Charlie rose asked her what is different about this situation. The numbers of missiles has increased. I think that israels assessment is with the stockpiles of weapons that are now in gaza, that it would be difficult to get a reliable ceasefire. Egypt did announce a ceasefire. Israel immediately said yes and hamas said no. Youll hear much more from clinton to rub the rest of the program and you can watch all of charlie roses interview with Hillary Clinton tonight at 8 00 and 10 00 p. M. The Obama Administration is having to deal with the Israel Offensive as well as the downing of the malaysian flight. Peter cook is at the white house with more. First off, what is the u. S. s take on israels military moves here . The most direct to medication we are aware of at this point, secretary kerry speaking with Prime Minister netanyahu yesterday after the offensive was launched and saying in a statement or read out of that conversation, the u. S. Strongly supports israels right to defend itself by going on to say the u. S. Is encouraging this to be a limited, precise action targeting those titles for specifically titles, specifically hamas was using to get into israel, hoping there could be some sort of limitation here certainly in terms of civilian casualties. The u. S. Urging restraint. At the same time, making it clear israel has the right to defend itself. How long will this last . Major ground offensive in 2008 lasted more than three weeks and more than 1400 people died. On ukraine, does the was 70 veteran intelligence on who down the malaysian plane . At this point, u. S. Military and intelligence officials will only say they believe a russianmade missile was what to cap that plane, but they dont whereow who fired it and it originated from. Those are questions i am told ultimately can be answered through satellite imagery, perhaps breaking down some of the communications that took place at the time of the missile launch. But at a minimum, the u. S. Is turning him turning up more pressure on russia. Josh earnest overnight said in a statement in part, we do not yet have all the facts but we know this occurred in the context of a crisis in ukraine fueled by Russian Support for the separatist including two arms, material, and training. The pressure is ramping up. A lot of questions to be answered. One of them, what role do the russians play . How did this Missile System get into that location . And now the question for the u. S. , what happens next . Is this an escalation of sanctions or Something Else . Peter, thank you so much. Coming up, the International Response. What should be done about the shooting down of the commercial jet. We will talk with a House Armed ServicesSenior Member congressman mike turner. Lawmakers are for more action in response the malaysian jetliner crash. One congressman has taken a more aggressive approach saying swift and decisive response from the International Community is imperative. He joins me with more, mike turner of ohio, member of the Armed Services committee. Thank you so much for joining us. Tell us first if you have any more intelligence as to who brought down this plane. I do not. I know Additional Information will have to be reviewed. There are a number of concerns everyone has as to what did occur. We have to put it in context. And awas a fighter jet helicopter that were already taken down in this area. All of the blame points to Vladimir Putin. He is open a war zone in the middle of the russian area that borders on ukraine. With those responsibilities of having ukraine become a war zone. I think Vladimir Putin bears the responsibility. What do you think the u. S. Response should be . The president has already acknowledged by increasing sanctions that russia has already crossed the border into ukraine. Russians are on the ground and equipment moving back and forth in support for the russian separatists. The issue next, what does the u. S. Do next to help the government of ukraine . Ukraine is in a very disadvantaged position. They could utilize american support and assistance as they try to impact and lesson what really is an International Crisis of a war zone opening up in europe. That assistance in the form of arms . Should we be arming the Ukrainian Government . I think in addition to the issue of looking to arms for ukraine, even Technical Assistance as to where the rebels are, what theyre doing, what the operations are, the u. S. Has high fidelity as to what is occurring in this area. This information should be shared with ukraine so they can defend themselves. Vladimir putin needs to be held accountable. This plane came down as a result of Vladimir Putin deciding whos going to open a war zone in europe. He needs to pay a price for that and certainly all of our allies need to come together jointly. We have seen sanctions against several russian companies. How much further do think the president needs to take those sanctions and how do we get the europeans who have been quite hesitant to move as aggressively as youre talking about, how do we get them to ally with us . That is an excellent point. Sanctions are dialed you turn up slowly. The president has taken it up to have notches. The europeans are clearly seeing the effects of the conflict as a result of what is happening in ukraine. The netherlands it will have a great voice in the you to be able to call e. U. To call to the attention of europe that they now have a war zone. Congressman, back to the missile,who fired this the fact of the matter is, i think many people woke up to the fact that rebels whoever they may be have the equipment, that they have this equipment now that can launch longrange missiles to take down a jet at more than 30,000 feet. Wasdy had any idea that possible up until yesterday. The question now is, what happens if that equipment, if that missile is in the hands of others . Terrorists . Is anyone else looking at that . Absolutely. Those are the issues that go to the responsibility of Vladimir Putin. As you have this issue of what happens when you open a war zone in europe him a these are the types of consequences. They bear the responsibility for that. When you put it in context the fact a transport plane, fighter jet, and two helicopters had a ready been taken down in this area that europe is waking up to now with this airline being taken down, action needs to be taken. Do you think it will be the kind of action that will put this conflict to end . So. Certainly hope i think Vladimir Putin has enjoyed the falls centered the west is had that russia is not an aggressive state. That they in fact could be an ally. As they turned a look at russia differently, i think both in commercial transactions in normal political relationships, all of these things need to be impacted and certainly, Vladimir Putin needs to realize he has taken a step outside the International Community. Thank you, congressman mike turner. Is this a turning point in the fighting in ukraine . Well hear much more from another clinton. Back on corporate news, fedex rocked by government indictment. The owner accused in the legal in drug conspiracy. Much more in the loop. You are watching in the loop. Good morning, i am betty liu. Top corporate headlines, General Electric reporting psychic order earnings that matched estimates. Reporting secondquarter earnings that matched estimates. The plan to take it finance unit of north America Public at the end of this month. Google posted secondquarter sales that beat wall street estimates. More. Icks rose 33 fedex rejecting government charges of illegal drug trafficking. Includeses is it pain pills another illegal drugs. Fedex has a camera responsible for the minds of packages and delivers every day. Equity futures are rebounding just slightly. Investors carefully watching what is going on both in ukraine and in the gaza strip as a of the discounts geopolitical risks. At the same time, watching earnings which is why youre seeing some stability here in equity futures. We are on the markets again in 30 minutes. I want to get more perspective on the situation in ukraine where the country and russia are blaming each other for the downing of the Malaysia Airlines jet that killed almost 300 people on board. The incident may prove to be a turning point in the fivemonth conflict between both countries. Hillary clinton gave her perspective on what could have happened to the plane with an interview on charlie rose. That may begin with the news of the day, the plane shot down over Eastern Ukraine. What questions would you be asking at this moment . Well, the questions i would be asking is, number one, who could have shot it down . Who had the equipment . It is obviously an antiaircraft missile. Who could have had the expertise to do that . Commercial airlines are big targets, but by the time they got over that part of ukraine, they shouldve been high, so it takes some planning. And the Ukrainian Government has been quick to blame it on which theyre never the russian insurgents. Their name for the russian insurgents. There seems to be growing awareness of probably had to be russian insurgents. How would determine that will require some for rent six, but then if there is evidence pointing in that direction, the equipment had to have come from russia. What more, the russians may or may not have done, we dont know. Today as i was walking in to talk with you the russian stock market has dropped. Theres a great deal of concern that not only was it a civilian plane shot down, but what this means about the continuing conflict in Eastern Ukraine and the role that russia is playing. What does the United States do if there is a clear indication and clear evidence it was russian separatists and perhaps using weapons from russia . I think the first question is, what does europe do . The u. S. Has been very clear in both its criticism of russia and putin, his support for ukrainian and the new government. Theres been a new round of sanctions that resident obama himself has announced. As you know, the europeans have tried to figure out the best way forward. I was recently in europe. A