assembled a powerful case and the jury agreed with him. it would have to be seen as a victory for mueller. scarlet: i want to bring jeff back in here, the formal federal prosecutor patiently standing by in chicago. jeff, does paul manafort's team change its strategy in light of what happened today for he faces his second trial in washington dc? >> there's not much they can do. they could not put mr. manafort on the stand. that would be easy cross examination fodder. there are many character witnesses for mr. benefits -- there are not going to be any character witnesses for mr. manafort. i do not think the d.c. case will go forward. it is like beating a piñata. he is looking at his time in jail and even if he was convicted, it could be concurrent time ran at the same moment. they may either come to a deal or take the charges and bring

them into whatever he is looking at now with respect to a sentence. another trial that does not bring anything to the mueller investigation, you already have cooperation on mr. manafort if he is looking at 10 or 12 years, or he is not. he is either waiting and hoping and praying that the president will pardon him. i don't think there will be a d.c. trial. joe: kevin, talk to us about the politics about this. we have an election coming up in several weeks. is this a concern for the republicans or is this scene as trump's legal issue and it is to separate people they are going to try to distance and ultimately this is not the thing people will vote on? >> from the republican perspective, we've not seen much in the polls, but you have to look at the democrats. the enthusiasm, particularly as

we monitor the special elections, the resurgence of the political left base that has .een really outperforming even republican lawmakers are concerned about how the left has shown up at the polls, particularly in the special election. reports like this, one could make the case this could be added impetus to democrats to get to the polls ahead of those midterm elections. i think there are certain news days where you have to take a step back and really look at the moment you are in. when the president's longtime personal attorney and fixer is pleading guilty for taking instruction of a candidate to withff and make a payment regards to impacting an

election, and you have a partial verdict, but the guilty verdicts nonetheless for paul manafort, the president's one-time campaign chairman for a host of different financial dealings, it is a day and the newsday that will be studied no doubt and impact the political landscape for quite some time to come. >> dave, if you are there, i've a question for you. you were in the courtroom. as the verdict was coming in, could you describe what manafort's demeanor was? a lot of it could depend on if he is expecting a pardon. how did he look or his family look? david: manafort stood and looked at the jury, and he was flanked by his defense lawyers who also stood with him. his hands were crossed in front of him, and he showed no reaction at all. his wife, kathleen, sitting 10 feet behind him also showed no reaction at all.

if he is expecting a pardon, it is not clear from his reaction. he didn't have any outburst and was not upset, was not crying, his wife did not cry. he was a bit of us thinks -- of a sphinx. it is not entirely clear whether he would cooperate. i would agree with you earlier on the point that perhaps a second trial in washington will not be necessary for mueller team because the evidence is the same. it is just charged under the money-laundering laws and not the tax laws. scarlet: let's give our final question to jeffrey before we have to let him go. david talked about if he is waiting for some kind of pardon from president trump, what would be the reason why president trump is not part in paul manafort? what would be the risk to offering paul manafort a pardon? >> the risk to give him a

pardon? scarlet: yes, what would be the risk to give the pardon and what would he risk by doing that? >> two things. one, the political risk. how would that be viewed to give someone like mr. manafort a pardon. have nothing directly on point, we would have to go back to the last hours of the president clinton days where he pardoned marc rich. from -- was up sconces ubsconded from- justice. there's something similar. there could be a political price to pay for the president going forward in any reelection. now, looking at the legal problem, did he parted mr. manafort in order to keep him quiet? that goes to the president's intent. that is hard to discern his intent if he did pardon mr. manafort. regardless. policy that a

sitting president cannot be indicted. a pardon of mr. manafort will be one more arrow and quiver of any impeachment proceeding, certainly a part of the official report that ultimately finds its way to congress. ,> kevin, you're still there politically as well, if there is any kind of a pardon for manafort in the near term or cannot elections, this be good for the republican party in general. it might be good for the president, but this could become a major campaign issue over the next 60 days. >> democrats will pounce on this. you are seeing that the spots -- response trickling in where the in -- timingckling and. chairman of cpac, a prominent organization and he is tweeting out all of this legal activity strengthens

collusion.ussian to your point, paul manafort, michael cohen is directly tied to the candidate pleading guilty and found guilty today. caroline: kevin, you were talking about the trip you are getting from capitol hill. we hear from that had democrats from the house intelligent community that they are talking that maybe we are seeing cohen's guilty plea adding to trump's legal jeopardy. we will be hearing more comments from the democrats coming in their. >> i think any democrat -- in there. >> i think any democrat is running to get their statement in. i can almost hear the scribble and typing of the keys from capitol hill. joking aside, i don't mean to make light of this, but this right now from a political standpoint is definitely going to cast a shadow over the midterms, particularly as we

have been reporting on the enthusiasm of democrats. standpoint, ican want to get from the press pulled notes as a president is in route to the campaign rally, we have new reports that reporters traveling with the president shouted questions at him which is common to do so to get his response on michael cohen and paul manafort. he did not choose to take that opportunity to respond to this. no word yet on the white house -- from the white house or president trump ahead of the rally which is set to start in two hours. caroline: thank you, kevin. let's bring in another guest, the former u.s. attorney, harry litman joining us on the phone. abouttman, talk to us what sounds like a resounding success story for special counsel mueller today. are you interpreting it that way? >> i do. the cohen pleaer -- the manafort trial,

if you look at the manafort trial itself, the jury convicted on one of at least the most serious charges. the upshot will be a consensus for manafort will be very little changed from if they had convicted him on all of them. it was a very meticulous jury. fact that they deadlocked on the rest of the charges, i do not think that takes away from the overall indication. in some ways, it substantiates the area's nests -- the seriousness of the task. the bottom line for manafort -- scarlet: let me jump in here because we look at pictures of michael cohen leave in the manhattan courthouse. he had pleaded guilty to eight

charges and there is a media atmosphere on the courthouse and he just walked by after pleading guilty. some of the counts are pretty incredible when we read. at theated campaign law direction of an unnamed candidate, acted for the purpose of influencing an election. debts, bank loans, organizations according to the u.s. government. he paid $130,000 and was they to repaid by the candidate. michael cohen is getting into his vehicle and leaving the courthouse where he pleaded guilty to eight counts. harry, sorry to jump in there and interrupt you. you were saying? >> were talking about manafort, let's shift over to: -- to cohen . count seven and eight were specifically about the conduct involving stormy mcdaniels and karen mcdougal. --t is they are involved

they involve the president in a very detailed way. he is in essence a co-conspirator here. because itname him is a doj policy not to when you don't indict. as you probably know from previous reports, it is controversy or dubious that you can indict the president at all. it is in essence an admission from cohen that he and the president were co-conspirators in the violation of campaign finance laws, and also in the violation of a fraud and wire fraud laws. it is a stunning day. you would have to go back at similar nixon to find a charge being laid at the feet of the present of the united states. joe: greg, kevin mentioned the street from the conservative activist saying all this legal activity don't see any "russian

collusion" in any breaking news. we have no insight into what is really going on. >> correct. joe: sometimes news comes out, but there have been very few weeks on where it is going. >> that has been consistent for more than a year. t mueller has not telegraphed anything -- team mueller has not telegraphed anything. take the risk to on criticizing mueller saying there's no collusion is that you set the day up for where their they may or may not come following the campaign official and russia. caroline: we were just hearing them talking about there not seen such charges laid at the feet of the president all the way back to nixon. is that how this is being digested in the white house? aisle anddes of the

people are just as early as a few days ago when the president himself had made those comparisons inners reviewed -- in his refute to the new york times article. the democrat politician put out a statement to call on the state legislators to close a loophole they are saying would make it more difficult to the president try to pardon paul manafort or michael cohen. the issue of pardoning power is still very much emerging as a common thread responses we are seeing at the state level in new york, from democrats, as well as capitol hill democrats. there clearly be -- clearly assumes to be an effort at the state level from the democratic position to try to protect against what they feel is an abuse of power with pardoning michael cohen or malt manafort -- or pulmicort. the president is in route to begin giving comments where he

will speak in charleston. he declined the opportunity to make a public comment to the reporters traveling with him as have aids traveling with the president to address what has been a remarkable day. scarlet: mums the word from president trump. we will wait to see what he says at the campaign rally. i want to bring in from the manafort house is andrew harris. judge, the manafort released a jury in the fraud case for the last time. your colleague, david, was describing how paul manafort's demeanor was when the verdict was read out loud. is his lawyer going to make a statement? is paul manafort going to make a statement? do we know whether we would hear or see from them? andrew: i don't think we will hear from mr. manafort until his sentencing. we don't know when that sentencing date is. may make ay

statement presently. i think that will come up right away. greg,t: i wonder here, whether the manafort verdict that we described as a success as the prosecution for the government, does that influence the michael cohen case in any way? i know they are separate and the charges are separate, but the headlines are out there and everyone knows the common thread here. >> i don't think it influences the michael cohen case. it talks about a huge public relations problem for the president. eco-incidents these two events occurred within one hour of each other. joe: [indiscernible] >> i think response from the president tonight -- scarlet: let's go to manhattan legal team cohen's

is getting ready to speak. >> no, this is the prosecutor getting the verdict. >> the attorney for the united states in this matter. with me is bill sweeney, assistant director in charge of the new york field office of the f the eye and james who is the supervisor agent in charge of the new york office of the irs. also with me are the prosecutors from the united states attorney's office who prosecuted the cohen matter. i will have a brief statement and will not be taking questions. today, as you heard, michael cohen pled guilty to eight felony charges. five of those dealt with tax evasion for the the years 2012 to 2016 in which he failed to report approximately $4.1 million in reported income. approximately $2.5 million of that money was from interest payments from a personal loan that he failed to report.

approximately 1.3 money dollars of the money was from the medallionof his taxi business. approximately $100,000 was from brokerage commissions and over $2000 was from consulting fees. million over a.3 five-year. -- a five-year period. ont translates into a loss the united states treasury of approximately $1.3 million. in addition, in count six, mr. cohen pled guilty to making false statements to a financial and touche and in connection to an application for a home equity line of credit. in that application, he failed to disclose more than $14 million in debt that he had and, as a result of that concealment, he obtained that $500,000 line of credit which you would not have been entitled to have you been candid and honest. in addition, mr. cohen played

guilty to two campaign-finance charges. one for causing an unlawful corporate contribution and a second one for personally making an excessive personal contribution, both for the purpose of influencing the 2016 election. in addition, what he did was worked to pay money to silence to women who had information that he believed would be detrimental to the 2016 campaign and for the candidate of the campaign. in addition, mr. cohen sought reimbursement for the money by submitting invoices to the candidate's company which were untrue and false. they indicated the reimbursement was for services rendered for the year 2017, when in fact, the invoices were a sham, provided

no legal services for the year s to obtains a mean reimbursement for the unlawful contribution. a couple of points i would like first, these are serious charges and reflect a pattern of lies and dishonesty over an extended period of time. and are significant particularly significant when done by a lawyer. a lawyer, who through trading and tradition understands what it means to be a lawyer, to engage in honest and fair dealing in appearance to the law. mr. cohen disregarded that training, tradition, and decided he was above the law and, for that, he will pay a very, very serious price. with respect to the campaign-finance violation, the campaign-finance laws are designed to prevent the use of even go money in elections and they maintain the integrity of the elections.

mr. cohen made guilty pleas for those campaign violations, and those are core violations. he reminded us that it is illegal for corporations to make contributions to candidates, and it is illegal to make contributions in excess of the amount congress set for individuals. that is a strong message today and we will not be -- we will not fear prosecuting additional corporation -- campaign-finance cases. lastly, and perhaps most importantly, this case is unique in many ways. witness the gathering of all of you here today. in other ways, it is unique as well. in the really important ways, this case is not unlike many cases that my office, the united states attorney's office brings, that the entire department of

justice brings, and law enforcement agencies do as well including the fbi and irs. this case has more in common with all those cases because they all share the same message. that message is that the rule of law applies, and that, for law-enforcement, all of whom who are gathered here -- all of whom are gathered here, we will pursue and vindicate those who choose to break the law and vindicate the majority of people who live law-abiding lives and follow honest and fair dealings and live lives of lawful behavior. ,he messages we are here prosecutors are here, the department of justice is here, law-enforcement agencies are here, and we are a nation of laws and the essence of this case is about justice and that is an equal playing field for all persons in the eyes of the

law. that is a lesson that mr. cohen learned today and it is a very harsh one for him. thank you very much. >> who is the candidate you're talking about? scarlet: you have been listening to the prosecutor. >> sorry. my fault. sweeney andank mr. james of the fbi and irs and the agents who work for them. we do many cases with them and their determination and fair dealing, and vigor with which they pursue their case is inspirational. to the prosecutors in my office, i cannot express the gratitude for the hard work that they did in this case. as well as negative states attorneys and atomic a as well as the deputy chief of the public corruption unit and russell capone, the chief of the unit.

for all of these people, i could go on and on about their many virtues and talents. the one important thing is that they all are satisfied with being known as public servants, prosecutors, and law-enforcement agents who are doing their job. thank you very much. scarlet: the deputy was attorney there wrapping up his attorney -- wrapping up hi statements of the prosecution of michael cohen on a charges. he said the charges are very serious and significant and he will pay a very serious price for what he did. isadded that the cohen unique in many ways, but it shows ultimately the rule of law applies. i want to bring in harry litman right now who is a former u.s. attorney joining us by phone to get your thoughts on what you just heard from prosecutors on the cohen guilty plea. >> it was a remarkable combination. they just stay within

the four corners and that is what he did for the most part with the tantalizing details on the part of the oval office. then, he ended with this kind of admiration of equal justice and the rule of law that was about cohen, but seemed to me it was a thinly veiled reference to the president and the many ways in which he has arguably tried to put himself above the law in a kind of strike back on the courts and criminal justice system. i thought that statement was very purposefully appended to the cohen materials and will be and should be taken as a kind of push back to the president himself. joe: greg, you are nodding. what is your read? >> total agreement. i'm not heard many of these presentations in other cases noting that robert went out of his way to say these campaign

violations were significant and to say we will not be afraid to pursue similar conduct. that, to me, midway through suggested he either had more or will go further. then again, the wrapup at the end says nation rule of law, etc.. one reason this is significant, is that there is a lot of criticism when president trump met with the u.s. attorney in manhattan for nominating him, jeff berman. there was a concern among democrats that the meeting with jeff might suggest a u.s. attorney in manhattan would not be as independent as previously. right hand mans and was put in this job. that was a clear message from rob and from the office of the u.s. attorney in manhattan that they will remain independent and are not taking guidance from anyone know matter who is appointed. caroline: kevin, a clear message.

is that how you are reading it? >> a very clear message. he has a great point. that the topo note democratic senator, chuck schumer, we are awaiting comment from him who is supposed to be addressing reporters any minute now on capitol hill. we are still again awaiting a word from president trump. the response is beginning to trick you late in from -- trickle in from publicans and democrats alike. the question becomes how will this administration handle this. how will the administration attempt to get back or even put out any type of comment? we are still awaiting and have not heard from the white house and a president who frequently likes to tweet and make his voice known as news is happening in real time. we are not heard from president trump nor from his top aides.

quite frankly, this is still being digested. a lot moving, and no response coming from the ministration. scarlet: we will always to see what the president says at 7 p.m. in his campaign rally. i wonder, a lot of this will be dependent on what the president's lawyers advise them to do or say. remind us again of who his lawyers are and what they are likely -- how have they been advising him to position himself. there has been so much turnover in his legal team and they have taken different tasks. do we listen to what rudy giuliani says or is there another lawyer who is kind of the leading voice for him? >> there is no question that rudy giuliani has emerged as the spokesperson of the president's legal team.

we look at the policy applications of this and the one day -- the one thing that grabs attention is giuliani's comment that facts are not facts. that was made on the sunday show. concertedbeen a clear effort on behalf of the administration to criticize the special counsel and the investigation as well as to criticize the media institutions as a whole. to second point with regard the biggest development, in recent days out of the legal team, has been the president has thatearlier, last night, the president said he would not be sitting for an interview for the special counsel, at least until now. in the same interview, he said if you wanted to, he could run, his words, the investigation. i think those of the two biggest developments this week as we

near the end of tuesday from the president's legal team. caroline: let's bring in harry litman again, former u.s. attorney. your summary of what we heard from the deputy u.s. attorney and where we go forward as far as the robert mueller investigation? >> going forward, on the one hand, the manna for trial itself isn't overlapping with the russia charges. it did obliquely, and the next trial will be even more strongly connected with them. it is the cohen plea that i think has the most immediate implications for the president. cohen is now going to have to really play it as an open book in front of the mueller team. that much was clear. his sentence will depend on it. he has several charges that he is been charged with that the president could criminal liability for. that is the true grave threat.

caroline: we thank you. scarlet: futures were down as a result. we want to give our big thanks to everyone. this is bloomberg. ♪ ♪ ♪ >> this is "bloomberg technology." i am emily chang in san francisco. we are halfway through the year and we have seen a number of tech companies hit the public market. sonos makingify, debuts. if the pace holds, the number of tech ipo's in the u.s. will have returned to levels not seen since 2013 and 2014. how will the rest of the year play out? joining us, our bloomberg ipo and tech reporter. spent the last several months trying to tackle this market. what has been so unique about

the last six months? jackie: technology has been exceedingly active, and i know we have been waiting for this to come back. the last couple quarters have been exciting. we are definitely seeing technology companies themselves, and tech businesses in general really eager to get out. i think a lot of this is driven by the fact we have been in such a strong economic market now for a number of years. everybody wants to access this window. emily: will it continue? q1 are going to be very busy markets for us. emily: i am curious. the bull market has been going on so long, conditions have not really changed outside vehicle in 2015 --the hiccup in 2015. why are companies deciding now is the time? i think back to last year when everyone was saying, it will be next year. what is different? jackie: valuations were high,

and now they are almost back up to that level again. folks are saying, what's the chance this will happen again? markets are great. i am hearing from a lot of companies watching their competitors, saying now is the time to move. emily: are we talking recession concerns, a broader valuation issue? jackie: i think there's a little of everything. people have said the economy has been so strong so long, can it hold on? we are talking about hitting the longest run in history. there's a feeling, will the market be this good a year from now? i am not sure, let's go now if we can. emily: but you say 2019 is the year of the unicorn. what do you mean by that? jackie: we have been talking, when are the unicorns coming? i think they are coming in 2019. i think we will see a lot of unicorns. we will see who is ready to go. we work with a lot of those companies, and they are really preparing themselves. emily: i want to talk about the dynamics in the private market and how that's affecting the pipeline here. alex, you brought up an interview we did with venture capitalists in february at the

goldman sachs tech conference, talking about how venture capitalists, because of the competitiveness, have hesitated to put pressure on companies to go public. take a listen. >> hyper competition has made it so that the majority of vs's biggest fears are missing out on the next investment. they are afraid to have a reputation as someone who asks too many questions, pushes too hard, and it has led to a situation where there's not a lot of stewardship, discipline, results, that kind of thing. emily: are we in that same stage now? alex: it seems a little like folks are coming to a reality check. i don't know if that's because the venture capitalists have made out so well on these ipo's, but you have people coming to it isalization, comfortable to stay private without folks on the board pushing you to go public. that dynamic is changing. the ceo of dropbox was at our

conference, and he told me he's really happy he went out, he's ok with the scrutiny. a very different message from the silicon valley group think was three or four years ago. emily: uber of course, changing of the guard. who knows if 2019 would be the year if travis kalanick was still in charge. what is the role you see venture capitalists playing in encouraging or discouraging, or the hands-off approach? jackie: investors play a significant role, and many are encouraging their companies to look at if they are ready to go public. especially those where they have been in the deals for seven, 10 years, many of these unicorn companies, it is starting to reach that range. so they are challenging management to be ready. we do a number of things, ipo readiness assessments where we go through the company and say, are you ready to operate like a public company? that functional readiness, combined with do you have a strong growth story,

leadership. can you execute on a strong growth story, operate a predicable business. if those things are in alignment, yes, you are ready to go. emily: we have to talk about the tesla part of this story, elon musk talking about how hard it is to be the ceo of a public company, wanting to take tesla private. most analysts on the show have given this zero chance. is that what you are hearing? alex: we don't have a plan yet from musk. to take private, you need a plan that goes to the board to be considered. right now it doesn't seem like there's an actual offer on the table. that could very well change, but it has been so interesting. he's touting these ideas that the private companies have struggled and habvve been touting.

investors have become more sensitive about profitability and musk has gotten an earful. emily: is this an anomaly, or do you see the situation and issue having a broader impact? we have seen a pullback for sure. jackie: companies in general looking to access public markets are at a certain point of maturity, at least where the business is today, that they ought to be able to run a protectable business, they have growth stories they can communicate to the market, they can execute on those. companies going through changes, sometimes they pull back on that, and that's not a bad thing. we have been happy. a lot of people say the unicorns, why is it taking them so long to get out? they are trying to figure out how to operate like a public company before they go public, taking risks before they are in public markets. emily: an interesting metric. of the technology ipo's this year, the average is $350 million. if you think back to 1999, an average ipo size of $105 million. the maturity level of the

companies is different than it was a couple decades ago, when we had the last tech ipo boom, versus where they stand when they go out now. alex: at the same time, slack raised $400 million at a $7.5 billion valuation. emily: stewart butterfield said he's in no rush to go public. he said that's the most likely outcome, but will we see more of that? alex: the private markets are really robust. jackie: we are really fortunate, how robust private and public markets are. we attract more companies around the world to list on u.s. exchanges than any others around the world. we have robust private equity, venture capital, large corporates who created venture arms. the list goes on and on. and individuals willing to make investments. we are very fortunate. i think we will continue to see funds going into private and public markets. emily: jackie kelley, thank you very much. the brazilian

trucking industry getting a shakeup from a company being compared to uber. our conversation with cargo x ceo federico vega is next. this is bloomberg. ♪

i feel very badly for paul manafort. he worked for bob dole, for ronald reagan, for many people, and this is the way it ends up. it was not the original mission, believe me. it was something very much different. so i have nothing to do with russian collusion. we continue the witchhunt. cohen?comment on michael >> i am mark crumpton at bloomberg world headquarters in new york, joined by my colleague greg ferro. we were just watching president trump, arriving in charleston, west virginia. he will have a campaign rally tonight. he was talking about some of the court decisions today. starting with his former campaign chairman, paul manafort. mr. manafort, found guilty on eight of the counts. he said, i feel very badly for paul manafort. he again termed this a witchhunt.

this was basically the first test of special counsel robert mueller's investigation, although technically it was not about russian collusion or alleged collusion but about bank fraud, tax fraud. >> he just hit that a moment ago in his comments, saying he felt bad for manafort, but that this had nothing at all to do with allegations of russian collusion, in the election. furthermore, he labeled the mueller investigation a witchhunt. >> that was not unexpected, was it? >> we were told by kevin in washington, he didn't take questions on the way out, so this was his chance after the plane landed to finally address some of the news, the manafort part. he didn't respond to any questions shouted out about michael cohen, his former personal lawyer. >> talk to me about white house strategy at this point. is the sense to rally around the president? is the sense to continue to hammer away at the special

counsel? >> what we see so far, and his, this is the position they have had for months, and it remains intact, is to label this a witchhunt, in part because there's no allegations of collusion. the manafort case was interesting, crimes discovered in the course of looking for russian influence, but i think the white house will stay on that message, that it has nothing to do with russia, until that statement is no longer appropriate. >> speaking of the white house, kevin is standing by. you heard the president's comments. anything unexpected? >> nothing unexpected, but we do now hear directly from president trump. of course, this comes less than 90 minutes from when he will be addressing his supporters in charleston, west virginia, in what was supposed to be a campaign-style rally. now it comes following a very notable type of day, forom the

standpoint of paul manafort, michael cohen. the response from capitol hill now has also been interesting, specifically from democrats, raising the issue of pardoning, trying to prevent the president from what they believe would be an abuse of pardoning power. republicans have not heard -- we have not heard much specific way from them. what the president said, "it is a very sad thing," he said it has nothing to do with russian collusion and that this is a which hunt. of course, he went on to continue to defend paul manafort, and really, you know, not really talking specifically about michael cohen. the president defending paul manafort, mum on michael cohen. a remarkable day, the president reiterating what he said a a few short days ago behind me when he came out and addressed on

friday, defending paul manafort, his previous campaign chairman. but there's two massive stories. number one, the paul manafort angle, but also the words in the plea deal with michael cohen, in particular, the candidate, everyone now, hard to consider who else it would be than candidate donald trump, who according to michael cohen, he pleaded guilty for taking instructions from a candidate, according to court documents, and at the instructions of a candidate, made that payment cohenf course now michael has pleaded guilty to. >> you know this far better than anyone. the president will be at a campaign-cell rally in west virginia -- campaign-style rally in west virginia. this seems like a good place for him to be tonight, with his fervent supporters. i presume he will have a lot of support in that audience. i assume this was not planned,

and that it just happened to be that he would be doing this rally tonight? >> absolutely. there really was no way of knowing, in particular that both the paul manafort jerry would theh -- jury would reach verdict, coinciding with michael cohen's decision to announce a plea deal, and the political juxtaposition of president trump speaking at a campaign sell rally in west virginia -- campaign style rally in west virginia, a state illustrative of the political coalition he hopes to build, the coalition with which he ascended to the white house. two points quickly. first and foremost, the president making a mention of michael: in his first -- michael cohen in his first public remarks, but also the comments wifetop conservative whose works in the white house, who

tweeted out, no kno evidence of collusion, which the president said himself. the president says the michael cohen verdict is not impact what he has said about no russia collusion. the president offered a defense of paul manafort, but has not made a comment on michael cohen. another point we should note is how state lawmakers are reacting, particularly in new york state, where the attorney general has been pushing to close what they argue is a loophole by which paul manafort could be pardoned. that's something we're hearing about in the house of representatives from joaquin castro of texas and senator mark warner of virginia, the top democrat on the intelligence committee. the issue of pardoning, the issue of whether or not michael cohen has evidence.

evidence that would suggest candidate donald trump directly instructed him to make that payment. that is where this is headed. >> kevin cirilli, joining us from the white house. we will get back to you in just a moment. joining us on the phone, former federal prosecutor ellie koenig. on today'sts courtroom drama -- both in alexandria, virginia and at federal court in manhattan? >> yes. -- at this point, given the gravity of what happened today in those two thertrooms, is this what

u.s. attorney was saying, mr. khuzami, a message now resonating at the white house, where he was basically saying, we are a nation of laws and that people will be held accountable? >> i think that is sort of the big takeaway, that we can have denials andhy accusations from rudy giuliani or whoever out there, saying things like "truth is in truth, " but ultimately there is a place where truth is still truth in this country, in our courtrooms, and with the participation of the department of justice. >> i have a question for you. greg ferrarrell here. the question between -- differe nce between michael cohen in new york, his potential value to the mueller investigation. he has pleaded guilty, he will

have to serve time, no deal with mueller's group. he has come in and admitted misconduct. if there would be any path that leads from sdny to this special counsel's office? >> there could be. that will depend on whether cohen decides to cooperate, whether the southern district wants to. today's plea agreement was not a cooperation agreement. we have one document meaning it is a straight up the agreement, you get a bit of a deal, you are not cooperating. there is a separate document, a cooperation agreement. this was the former, the straight plea, non-cooperation. that said, it doesn't mean cohen can't cooperate now. he can, and if he's interested in cooperating and the southern district wants to, they will go through a series of sessions where they'll debrief him, learn

everything he did from when he was a teenager on up to now, and if they reach a cooperation agreement mueller would have access to that. there is language in the cooperation agreement, that you also will be cooperating. emily: mr. -- >> mr. honig, we have to leave it there, but we thank you for your time. elie honig. i'm mark crumpton at bloomberg world headquarters in new york. thank you thank you for joining us for this special report. "bloomberg technology" continues after this. throughingapore's delivery company is rolling out its own advertising service. ads will be incorporated into its fleet of vehicles in over 200 cities in southeast asia, where drivers can earn as much as 10% additional income. they will offer three categories. mobile billboards, digital displays in cars, and in-app advertising.

cisco's in hot water over hiring practices. the company allegedly discriminated against u.s. workers by favoring immigrant visa holders for job openings and paying those workers last, according to --less, according to a new report from bloomberg law. i want to bring in the reporter who broke the story. what was cisco doing? chirs: two allegations of discrimination. labor department investigators say the company favored foreign visa holders over american workers for jobs at the company headquarters in california. number two, they say the foreign workers they hired they then paid less than american cisco employees. emily: so cisco says they are paid the same, they are emitted to fostering diversity of workforce, and ensuring everyone is paid fairly for the job they do. what's the evidence that cisco did otherwise?

: this was part of a random audit done by the labor department office of federal contract compliance, a government watchdog over contracts, enforcing an executive order banning pay determination in the workforce. they perform these audits, look at payment and hiring records and based on those records reach conclusions. in this case, investigators found there was enough information from that data to issue two notices of violation, currently being discussed in some sort of settlement. emily: so this is one of several ongoing investigations into possible discriminations by federal contractors against, not in favor of, visa holders. what else do we know? chris: this is the first one week know about in which the dol found a contractor discriminated on the basis of visa status, but we know the dol is looking into

similar allegations at a number of other contractors. we don't know who those companies are, but we have seen in the last couple years the dol has taken specific interesting tech companies, especially silicon valley companies getting in on the federal contracting game, so safe to say they are looking at those companies. they are currently embroiled in pay discrimination cases based on race and gender at oracle and google, and they are continuing to look at tech companies, and they are also going to start an already are looking at this visa question as well. emily: is there any influence from the trump administration here? >> hard to say. it certainly fits into the overall goal here of the administration to crack down on immigration, to bring back american jobs, but it is ironic, in that it comes at the same time, a month or so after the trump organization asked for 61 h2b visas for low skilled

workers, requesting those for the mar-a-lago property. some folks are saying, they are having a hard time squaring those two things. on the other hand, it follows the rhetoric we have heard from the trump administration, all the way back to the campaign trail. emily: chris opfer with bloomberg law. thank you so much for bringing us that report. chinese smartphone maker xiaomi reports results wednesday in hong kong for the first time since going public. they raised $5 billion with the promise of being a high-growth company, but some are starting to lose faith. stephen engle has this preview. stephen: a month after the high profile $5.5 billion debut in hong kong, xiaomi is trying to convince investors it is more than a handset maker, but a high-growth internet company in the rarefied air of amazon, alibaba, tencent, even the 70%

of revenue comes from selling smartphones. investors need more convincing, as the stock has traded flat to lower from what many say was an overpriced ipo. the quarterly results will give billionaire -- the billionaire chairman and other chance to sell his narrative of building out an ecosystem of services like video, music, financial offerings at home in china, also ramping up offerings overseas. but with global smartphone demand on the wane against the backdrop of an escalating trade dispute with the likes of the united dates, xiaomi at least in the short-term faces no shortage of challenges. emily: we will of course be tracking xiaomi's first earnings report as a public company. that does it for this edition of "bloomberg technology." more coverage of xiaomi results and alibaba later this week. this is. bloomberg ♪

-- this is bloomberg. ♪

♪ longtimeent trump's lawyer faces five years in jail. michael cohen admitted to paying hush money to women. >> not only that, the president's former campaign chair paul manafort is convicted on eight counts, including tax and bank fraud. cabinet ministers offer to quit, urging his party to remain united. >> on a brighter note, the s&p 500 hits a new high as