Down triple digits, all part of this global gut check. Cristina alesci is joining me. We are closer to correction territory than we were when he spoke to you an hour ago. I heard big noises on the floor when we got that big drop. So clearly nervousness on this end but all around the world, as you mentioned, this is really a global story. The fact that emerging markets have take answer big hit. The uk is in official correction territory already. So weve seen this kind of play out and the three main drivers here are lots of question marks around the second biggest economy in the world and its ability to grow and thats china. We got really negative data out of them last night. And then you have pressure on oil prices because there isnt enough demand in the face of a Global Supply glut. So you have those two things going on. Plus, lots of question marks about what the fed will do if the face of this new market reality which is a lot more volatility than just a couple of months ago, poppy. The fed has a dual mandate. Inflation around 2 and unemployment. Its hard to believe that the fed is not going to consider a huge selloff day by day by day here, rather considering whether hike rates in september, wait until december, when do we do that . Thats right. The fed official came out earlier today in an attempt to calm everybody down and said, look, we dont Pay Attention to daytoday moves but the reality, as you said, they cant ignore this kind of motion. They cant ignore this kind of nervousness. Also keep in mind, underlying all of this, we havent had a correction since 2011, poppy. A lot of analysts and strategists with this rise that weve seen since 2011 have said, hey, its about time that we take a reality check here. What does this slow down mean for u. S. Companies . Weve seen that play out. Some of the bestperforming companies in the s p are being hit today. Were talking about apple and netflix, which has doubled this year in value. Theyve taken big hits. These are companies that were previous low immune to market moves. Right. Cristina alesci, well be back as we watch the market tank down 300 points. Richard quest will be live with me in a few minutes. Meantime, more breaking news. The u. S. Is bracing for a possible war between its ally south korea and north korea. North korea offering a deadline to the south after an exchange over the border. This is pictures of kim jongun telling his troops to prepare for battle and threatening an allout war unless south korea stops blasting propaganda over the border there. But south korea is not backing down and rolling out their barricades as we hear that the joint military exercises between the United States and south korea have just resumed after a short break. Joining me now, bill richardson, former u. S. Ambassador to the United Nations and former governor of new mexico. Thank you for being with me, sir. Your perspective is invaluable. The last one in 2013. Thank you for being here. Well, im concerned about this. This is different than other border squirmishers. There hasnt been another one in the last five years but this is the first border squirmish since kim jonguns leadership. Hes unpredictable, warlike, thin skinned and also unsure of his leadership capacity in north korea. What you dont want is for him to get overly aggressive to try to impress his own population and, at the same time, the south korean president has to be tough, too. So you dont want each one to try to out macho each other. The United States is right there. We have 28,000 troops. We have a treaty with south korea that says we have to come to their defense. We should stand with south korea but this is the need for some diplomacy and mediation because this is serious. Rocket attacks, artillery shells in the past have been small arms warfare. Im concerned about this. Let me ask you, sir, about the 4 00 a. M. Deadline. Thats the deadline for north korea to say that south korea has to stop blasting the propaganda across the border to pyongyang. How do you think kim jongun will respond . Hopefully another reason that kim jongun does this is to ramp things up and then when nothing happens he takes credit and says, well, you know, im a peaceful person. I want dialogue. Lets cool things down. So, you know, these leaders manufacture crisis with some kind of end game. But my worry is, what if he doesnt have an end game and the South Koreans respond and then this gets out of control. I mean, what you dont want is this tinder box to explode. And thats been your opinion, the inexperiences with crisises . Thats right. Hes unsure of his own leadership. Hes exterminated some of his own people. Hes moves his generals around. Hes unsure whether he has real support within the north korean leadership. So you dont want him to use a case like this to demonstrate to the world that he needs an assurance. Now, another reason could be that he wants to say to the United States, to china, to the world, hey, youve got to deal with us in north korea. Its not just iran and crises in the middle east. Were here, too, and want to hopefully make a deal and finds way to work with you. Thats the ultimate best scenario. But i wouldnt count on it. Wow. Ambassador, thank you. Stay with me for a moment because i want your perspective on this. We are getting breaking news in here. The white house has just confirmed the second in command of isis has been killed by a u. S. Drone strike. Were told that it happened near mosul in northern iraq. A source telling cnn this was likely a targeted attack to take him specifically out. He is the top deputy leader to abu bakr baghdadi. Tell us if you could, sir, the significance of him and what that tells us about, frankly, improving u. S. Intelligence in this war on isis. Well, this is significant. This is one of the major strategies. Number two, i dont know if hes the architect of the beheadings but he certainly has been very involved in some of their militaristic efforts. Now, this is a victory for american intelligence. Ne dont get enough credit but, yes, it was a drone strike but you have to know where this person was. This means that our human intelligence capability. We need to know where they are to go after them. So this is positive. This is significant. Right. Also, though, weve learned theres been so much talk about chemical weapons and isis. A senior u. S. Official just confirming to us at cnn the traces of mustard agent have been found on isis mortars. I want to show you pictures of these apparent burns to the occurred de kurdish fighters. Regardless, when you look, there they are. When you look at isis armed with chemical weapons or mustard agent, it appears that they may have mixed themselves. How does this change the u. S. Strategy here . Well, these individuals knows their terror knows no bounds. Its not just the beheadings, mustard gas, massive human rights violations. But at the same time, they are recruiting people. So they are dangerous. They are getting stronger. So what does it mean for the u. S. . It means we have to broaden our coalition of countries engaging in the military effort. Were improving our intelligence. Thats important, too. And we need to get our allies in the region. This is why saudi arabia, some of the other countries, the gulf states need to participate more in the fight against isis than they have. Ambassador bill richardson, thank you so much. Important perspective on both of those breaking stories for us. Thank you. Also breaking right now, the first hurricane of the 2015 season strengthening. Meteorologist Jennifer Gray is here in the cnn weather center. Yesterday it was a cat 2 and now its a cat 3 . Yes. It is intensifying. Its a very small storm but its packing a powerful punch. 115mileperhour winds with gusts up to 125. Its still about 900 miles east of the of the leeward islands. Still too early to tell if its going to impact the u. S. But its worth watching. It looks like it may have already reached its peak with intensity. Its showing signs of weakening. However, were going to watch it for the next 6 to 12 hours to see if it does to weaken. The National Hurricane center thinking its going to weaken by tomorrow morning back down to a category 2 and then by the time it makes its way to the leeward islands, its going to impact puerto rico as well. However, its going to be coming in contact with some very dry air. You can see that brown right in front of the storm and thats goings to make it very difficult for the storm to maintain its intensity, poppy. Its going to be weakening. One should definitely watch but too early to tell if its going to have an impact on the u. S. Jennifer gray, thank you very much. Ahead, more breaking news. Were getting word of an attack involving a gun and a bladed weapon on board a train bound for paris. Also, his death sparked violent protests and new today, the teen killed by the police we now know was shot in the back. The police are bracing for potential violence. Some say its a racial slur. Some others, like jeb bush and donald trump, say they wont stop using the term anchor babies. A new fight between candidates about something that they agree on. Toenail fungus . Seriously . Smash it with Jublia Jublia is a prescription medicine proven to treat toenail fungus. Use jublia as instructed by your doctor. Look at the footwork most common side effects include ingrown toenail, application site redness, itching, swelling, burning or stinging, blisters, and pain. Smash it make the call and ask your doctor if jublia is right for you. New larger size now available. They trained and suppliedn is. Insurgents who killed my. Brothers and sisters in iraq. 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For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. All right. We are keeping a very close eye on wall street right now. You can see the selloff accelerating into the close here. The dow is down 460 points. This marks the single biggest selloff for the average so far this year, four Straight Days of losses. Well have a live report ahead. Were monitoring a huge selloff on wall street. Also, more breaking news coming in to cnn. Reports of shots fired between amsterdam and paris. The gunman was taken down by passengers on board that plane. Lets go to the Senior International correspondent on the phone with me, jim bitterman. Are you with us . Yes. I can just barely hear you. What can you tell us about what happened on this train . Were still waiting to find out ourselves because the fact is this apparently took place a couple of hours ago. The interior minister of france is on the way to the scene which is halfway between amsterdam and paris and were expecting to get more information when he gets on the scene. In any case, what we do know is there were three people injured. Two of them apparently by gunshots from an automatic weapon, according to a spokesman for the National Railroad here. And the gunman was apprehended. He was armed with the automatic weapon and a knife. There was a third person injured. Were not quite sure of his injuries, probably not too serious. But one person is in critical condition. Another, not so serious condition. A third with light injuries. So three people injured on this train. Not clear what the motivation for this was. The paris prosecutors office, which normally handles terrorism cases has opened up an investigation but the spokesman for the interior minister here says that in fact it is premature to suggest that this is terrorism related. Jim bitterman, thank you, live for us on the phone in paris. As we get more information, well bring it to you. Also, police now cutting Vacation Days in st. Louis, adding hours to prepare for how the community may react to news of another deadly shooting. Mansur ballbey was shot in the back. Officers opened fire after he ran from a house that they were searching. Ballbeys death leading to nine arrests so far. Now the attorney for his family giving a much different version of events to our ryan young. Witnesses are saying just the opposite, he did not have a gun at all. They have seen two Police Officers in plain clothes. The only problem is they didnt know they were officers. The officers never identified themselves as officers. They only see two plainclothed men approaching with guns. So mansur and the other young man took off running and ultimately after running about 20, 30 feet, mansur was not from the back. Reporter the autopsy shows what in terms of where he was shot . That the bullet would have entered at the right side of his back, traveling in a left motion which would have been going in this direction and ultimately the bullet would have hit his artery and it would have killed him almost instantly. With me now, editorinchief, carl Carlos Watson and host of cnn tonight, don lemon. Don, what have we learned about how many times police fired . This is according to a source, four shots were fired, poppy, that one of the officers fired three times. One of the officers fired one time. And that the fatal shot was actually the shot to the back. So a lot of the debate now is over whether or not he had a gun, what he was doing with the gun if he had one when he was shot in the back. Still very murky in terms of knowing what is what. Its still very murky. As youve said, witnesses are saying there was no gun. Police are saying there was a gun. Some witnesses are saying that he threw the gun. He threw the gun and they are doing dna tests on the gun to see if it matches the dna ballbeys dna. Its important to point out that what they are doing there in light of what has been happening with the protests. Obviously, st. Louis and ferguson, its very volatile considering a year ago with Michael Brown. Police are canceling their rec days, their days off, that they are working 12hour shifts. They waited overnight for the family to make the announcement before they made the announcement but they are afraid there may be unrest and even a bigger unrest that you saw during the Michael Brown incident. Carlos, as they sort out as investigators do what happened here, was this shooting justified or not, regardless of if a loss of life was tragic, the community, how they react about a year after the killing of Michael Brown in the ferguson protests and they broke out, what do you think we will see in the community and what should the Police Response be given what we saw in terms of the reaction to the Michael Brown shooting . Well, poppy, at least three things for us to think about. One, you heard don say that the that the Police Commanders there are doing a look into it but really we need an independent investigation as well. And youve seen that called for in a number of cities and i think its almost certain to be needed here, even beyond the circuit attorney, even beyond the u. S. Attorney who is going to do a review. We need an independent review and i think thats going to be critical to win the communitys trust. I think a second thing is, as you saw president obama earlier this year following ferguson but before baltimore put together a task force to look at how to deescalate some of these situations and i think the reality is the president is going to be asked to do yet more with nearly a dozen of these cases. Were clearly at a crisis and i think youll see president obama be asked to step in. And third, whether any of the president ial candidates will say that this issue is so significant it clearly is not a one off that really i need to put forward a proposal here in the same way that youve seen them weigh in on immigration, on the economy, on other matters as well. Im surprised, though, that it hasnt come up in a significant way in the campaign and also during the debate. So i think carlos is right. I think we saw Hillary Clinton addressing it in her meeting with black lives matter. Don, to you, when you look at Police Reaction to the protests after the Michael Brown killing in ferguson and the huge debate over wearing riot gear and the military vehicles pulled out, what can be different and what should be different if we see big protests . I think the Police Response can be different and people there can know that the burning and looting doesnt really solve anything. Yes, its important for people to protest. People are angry. And but i think its also important to remember that black lives matter, as you just mentioned, they have made significant headway when it comes to talking to president ial contenders. But the subject of police shootings, i dont think thats come up in a significant way on the campaign trail beyond black lives matter. But they should realize that there are significant gains being made when it comes to the peaceful protests, demonstrations. I think that will should be different now and police should not look so militarized. So much of this comes down to the legality of it, right, the Supreme Court decision over the perceived threat, what was the perceived threat and the witness word versus the officers word. Carlos, our team was talking about this earl