witch hunt we have a whole combination. we is the collusion? you know, they're still looking for collusion. where is the collusion find some collusion. >> donald trump comes out fighting amid a dramatic legal clash. his personal lawyer, michael cohen, pleads guilty to eight felony counts and implicates the president as part of his plea bargain. trump's former campaign manager, paul manafort, is also found guilty of eight unrelated

felonies including tax evasion and branch fraud during his trial in virginia. the s&p hits an all-time high putting the index on track to break the record for the longest ever bull market, but european equities start the day on a cautious note good morning, everybody. our top story for today is the news about michael cohen and the former personal lawyer of president trump has pleaded guilty to eight criminal charges, which include bank fraud, tax evasion, and campaign finance violations in a dramatic court hearing, michael cohen claimed the president instructed him to arrange hush money payments ahead of the 2016 election to two women who alleged to have had an affair with trump cohen told the judge the payments were made for the principle purpose of influencing

the election and meanwhile president trump's former campaign manager, paul manafort, was convicted of eight counts of financial wrongdoing, they include two counts of bank fraud, five counts of tax fraud and one failing to disclose foreign bank accounts. the jury did not reach a verdict on the remaining ten counts, but each bank fraud count could have a possible 30-year prison term tonight a guilty plea and a guilty verdict two men once central in the trump orbit both facing time in federal prison >> he worked to pay two off two women who he deemed will be detrimental to the 2016

campaig campaign >> paul manafort was found guilty of bank and tax fraud for his work before the campaign >> he is evaluating all of his options. >> reporter: the conviction is the first stemming from special counsel robert mueller's investigation. today on manafort, president trump sympathetic but keeping his distance >> doesn't involve me but i still feel it's a sad thing that happened. >> reporter: tonight slamming the russian investigation to a friendly crowd in west irginia >> where is the collusion? >> reporter: on stage no mention of his two former associates today cohen's attorney said if the payments are a crime for michael cohen, why are they not a crime for donald trump the president's attorney, rudy giuliani, said there is no allegation of any wrong doing by

president trump in the charges against cohen. blayne alexander, nbc news, washington. let's bring in the deputy head of the u.s. and america's program at chatham house good morning to you. i want to start off by asking the question on everyone's mind today. whether or not the president is implicated from this directly. the lawyer for mr. cohen said if those payments were a crime for michael cohen, why wouldn't they be a crime for donald trump? what is your take? >> well, the charging document for cohen doesn't specify trump as a co-conspirator, he's not named but clearly indicated, individual one to be president of the united states that doesn't leave a lot to the imagination. the issue is more what cohen said in court under oath that he was directed to make the payments by the president and for the purpose of preventing the release of information which could damage his electoral

prospects in the election that was a few days away at that point. that's easy to interpret as a commission of a crime or conspiracy to commit a violation of federal electoral law the tricky part is that the department of justice long held that the president, while in office, cannot be charged with federal crimes that's never been tested by the supreme court. it's unlikely that the department of justice would seek to challenge that longstanding precedent. so there's an impasse here you can have information in the public sphere which under other circumstances might lead to a criminal charge, but which the doj is unwilling to take to the level of that because the person being charged is currently the president. >> what do you think is the likely reaction from the president at this point in time? he notably yesterday did not comment at all about michael cohen. he did speak about the paul

manafort indictment. from here onwards some people have potentially speculated he could go and look to remoove mueller from the job and pardon those implicated >> it's hard to guess what trump's reaction will be exactly. it's worth noting his relationship with manafort and cohen over the last few movnths have diverged. manafort who has not given indication that he is giving cooperation to the special counsel's investigation is continued to gather praise from trump, he's a nice man, it's a shame what happened to him and then cohen who now says he will put his country first has drawn more criticism from trump. there's a divergence there, it's

hard to know which path he will choose if he chose to pardon people charged with crimes who were close in his orbit that would be instantly a significant political issue for congress because it's very easy to construe that as obstruction of justice. >> one element that struck out to me yesterday is that the element did not require cooperation what can we read from that? >> the balance of evidence against cohen was so great that the prosecutor didn't feel the need to enter into a formal agreement in advance they may be holding some other charges back they may be demonstrating to him how much they have on him and sort of using that leverage to obtain more cooperation or it could be they don't need his formal cooperation cohen as we discovered was notorious for taping his phone

calls, interactions, keeping voluminous documentary evidence of all of his dealings above board. it could be having gone through cohen's files, which they seized in an fbi raid in april, the prosecutors decided we don't need him as a witness. >> finally i want to ask the other big question, which is how you see this playing into the midterms and into the hands of the democrats. >> i think it's fair to say that any day which sees close associates of the sitting president convicted and pleading guilty to numerous crimes along with a -- the second congressional endorser of trump to be indicted separately, that's representative duncan hunter, is not a great day for the incumbent party. that said the news cycle these days is so rapid that if these things don't develop further, it's possible they'll be consumed into a bigger narrative, which may or may not favor the democrats. but i don't think this is the

last we're hearing of either manafort or core wihen. i think we don't know what shoe will fall. and i don't see any of them being particularly advantageous to the republicans >> understood. thank you very much for joining us following the conviction of paul manafort and the guilty plea of michael cohen, the words guilty, criminal and felons were projected above the entrance of the trump hotel in washington. local activist robin bell is behind the move. for more on this story and why michael cohen avoided naming trump directly, head to cnbc.com let's check in on the reaction to this in u.s. equity markets. this morning all three makers are seen opening up a bit weaker they turn south after this news came out later in the evening

session after the close. dow was seen opening up about 70 points lower s&p about eight points lower that's after s&p made new record spra d intraday highs in yesterday's trading session. if you want to get involved, tweet us at @streetsignscnbc or tweet me directly, cnbcjou. coming up, the italian government wants more control after the genoa brgeid collapse. more analysis after we return. and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

welcome back to "street signs. let's check in on how markets are doing this morning starting with the european markets. we see a mixed picture there ftse 100 lagging, just briefly below the flat line. the rest of the indices are trading up in the green. moderately positive. xetra dax up about 0.4%, 50 points higher. cac 40 about 0.4% higher, this is after the more positive session and close we got out of u.s. equities in yesterday's trading session. let's talk about what happened in the u.s. equities trading

session. the s&p 500 did make a new all-time intraday high that is the first since january of this year the market did pare some of those gains towards the close. closing down 0.2% off the peak we did make new intraday highs and this caps the longest ever stock market run without a bear market that is defined as a 20% drop. two records, a new record high and the longest bull market run ever >> let's go deeper and talk about where some of the main drivers of that performance have been if we go back to the lows of the s&p that was march 2009, what we see is since then some of the key names. we have a couple of them up here they are up significantly. you're looking at the performance year to date of some key stocks netflix up 76% amazon up 71%.

if you go back to march 2009, here's some interesting stats. netflix is up 5,800% amazon is also up 3,000% since march 2009 it gives you an idea of some performance we've seen in the tech sector as far as the s&p is concerned. bob pisani has more on this market milestone >> break out the champagne many are saying this will be the longest running bull market of all time it began march 9, 2009 the s&p closed at 676. the bull market turns one day older than the bull market that started 1990 and ended in march 2000 there are two reasons not to get worked up over the headlines there's no universal agreement on what constitutes a bull or bear market and it's a stretch to say we're in the longest running bull market what is a bull market?

the standard definition is the 20% rule when the bull market rises 20% from the bear market low another way to define it is the bull market begins when it surpasses the old high in this sense it began in 2013 when it passed the pre-crisis high of 2007 for the average investor, most important takeaway is bull markets last longer than bear markets. three times longer the average bull mar cut, 981 calendar days, 286 for the bear markets. a recession is not on the horizon, the fed has been slow and deliberative raising rates, that's why there's still more bulls than bears out there i'm bob pisani, cnbc business news in new york sky shareholders face a deadline to accept a 26 billion

pound bid for sky by comcast the decision comes amid a battle for sky between comcast and 21st century fox which already owned a portion of the uk firm of course comcast is the parent company of cnbc. linde shares are trading lower after divestments needed to seal approval from its approval with praxair reached a size that would allow either side to abandon the deal, but the company remains in constructive talks to save the $83 billion agreement. vodafone has begun merger talks with tpg telecom the two firms confirmed they are in exploratory talks but offered no details about the deal. the tie-up could unite tpg's broadband services with vodafone's almost 6 million australian customers. the italian government could take control of autostrade

according to reuters the economy ministry has denied knowledge of such a plan the board of autostrade separately approved a 500 million relief fund in the wake of the genoa relief collapse carlo joins us from rome you have been following this story. there was the board meeting that occurred yesterday what more can you tell us, particularly in light of this reuters story suggesting that cdp may be looking to get a stake into atlantia as well. >> good morning. the building behind me is the same one that yesterday hosted autostrade's board meeting today's atlantia board of directors will be a different one. atlantia has many important international shareholders ranging from hsbc to blackrock to the singapore wealth fund and then the bennaton family the representative of these

shareholders want to know what is the cleanup strategy the company devised after the jen ra bridge collapse. they will also talk about the latest from prime minister giuseppe conte he is planning on perhaps taking over the company the finance minister has ruled out this option, but we know they don't have that much power within the cabinet but this move using assets to take over autostrade would happen in financial terms. what is the equity value of autostrade the most important italian investment bank, which advised atlantia in its merger with the spanish operator attributes an

equity value of 40.8 billion the book value of autostrade in atlantia's balance sheet is 12.2 billion. so these sums will be lower compared with the penalty that the state would have to pay if it presses ahead with plans to strip the toll road operator of its concession whatever the outcome, atlantia's convinced it can prove its innocence and it will either retain concession or it will receive a lot of money this is the key message that the management, the ceo, and the president will convey to the other board members. the board meeting is about to start it will start in a half hour >> carlo, thank you for bringing us the latest there. i want to bring in vittorio carelli from san ten r

s santander to discuss further do you think the market is pricing in revoking the concession >> good morning. honestly the market is pricing in the stock price, the low visibility of the possible scenarios rather than actual evaluation of atlantia without or with concession the company has a value of 12billi1 12 euro per share. and after the tragedy it could have a value which would be far from the market value, after the

market assigns it. it is impossible to evaluate the possible value of the corporation even keeping the concession so per share probably factoring in a valuation which is half of its fair value and this half probably discounts liabilities which arise from the -- could arise from the investigation of around 3 billion. and an additional penalty of 10% of the equity value. obviously the market at the moment is still believing that the company will keep the concession this is very important because the awarding of the contract is quite strong and protects the concessioner in any case even if the government will go for revocation, there is a

cornerstone of the contract which is the revocation value, which at the moment we believe could be at around 12 billion euros net of the penalties and liabilities. >> the government will have to indemnify the company if it were to invoke that concession. the story over the last 24 hours, the one reported by reuters and the state-owned fund may be looking to take a stake in the company do you see that as a good halfway come promipromicompromie >> yes this is the way to get a winning solution for everyone. first of all, they would be willing to take 100% of concession, which is obviously not possible

the company needs the cash flows to confirm its rating which is important for the acquisition of the company. the most likely scenario could be the current visibility that they could take 20% stake, which could allow the government to say hey, we have -- we had concessions. we are probably oversight all the operation going forward, controlling in our view probably investments, maintenance and probably dividends on the other side atlantia will continue to consolidate the important assets and cash flows. in my view this could make more sense. >> the significant drop in share price seen in atlantia, there's

been a sentiment hit as well what does this mean for the broader sector and, you know, italian equities have been struggling in general even before this crisis occurred in the last week. what is your take on the knock-on effects on other blue chips in the italian index >> unfortunately what's happening now, is that it is evident that the government is adopti adopting as you can recall, they were based on a possible nationalization of the asset, which is not compatible. obviously the scenario creates a big panic for them

we need a clearer view of what could happen going forward we believe the government in any case is following the contract through possible revocation notification, so we believe the government is going to stick to the contract but obviously the market is not as confident at the market >> sir, thank you very much for your views tesla shares surged after morgan stanley became the second bank to restrict coverage of its stock and remove the price target the move could be an indication that the lender is advising elon musk in his bid to take the company private. last week goldman sachs removed the equity target on tesla.

and a cybersecurity firm accused facebook and twitter of spreading iran's propaganda by using fake news websites some russian profiles were also suspended for similar reasons. and uber has hired nelson chai as its chief public officer ahead of its expected public listing in 2019. his appointment and connections are seen as key to successful ipo for the ride hailing app the cfo position at uber has been vacant since 2015, but thes be been stepped up in the last year. ridesharing vehicles have seen a huge rise in the use of cobalt, but that may be put on hold stay with us

fake news and the russian witch hunt we have a whole combination.

we where is the collusion? you know, they're still looking for collusion. where is the collusion find some collusion. >> donald trump comes out fighting amid a dramatic legal clash. his personal lawyer, michael cohen, pleads guilty to eight felony counts and implicates the president as part of his plea bargain. trump's former campaign manager, paul manafort, is also found guilty of eight unrelated felonies including tax evasion and bank fraud during his trial in virginia. the s&p hits an all-time high putting the index on track to break the record for the longest ever bull market, but european equities start the day on a cautious note all right. talking about markets. we were talking about the s&p making an all-time new intraday high behind me the picture is mixed we have ftse 100 lagging a bit below that 7600 mark again,

about five points weaker a tad weaker on the day. ftse mib now shifted to negative territory. again, a lot of questions about the future of atlantia there, the ongoing discussions between the government and that company. generally speaking european markets are starting off moderate a bit of a lackluster session. mixed so far let's switch and look at foreign exchange today the theme is one of dollar strength greenback strength is showing up we have euro trading weaker to the tune of 0.15%. cable is a bit weaker to the tune of about 0.25%. there again what's weighing on that is the ongoing discussions about brexit it looks like they'll have to postpone the timing of a potential deal, if it does

happen, to november. time is running out. let's talk about u.s. futures. the major news out yesterday is that of paul manafort and michael cohen. and we saw a bit of a dip in u.s. equities after the close. today the dow is about 80 points lower, off the all-time intraday high as far as the s&p is concerned. sill actually on track to be the longest bull run ever if we continue at these levels for the rest of the session. the top story today, the former personal lawyer of president trump has pleaded guilty to eight criminal charges which include bank fraud, tax evasion and campaign finance violations in a dramatic court hearing, michael cohen claimed the president instructed him to arrange hush money payments ahead of the 2016 election to two women who alleged to have had an affair with trump cohen told the judge the

payments were made for the principle purpose of influencing the election the prosecutor made a statement from the courthouse in new york welcoming the outcome. >> these are very serious charges and reflect a pattern of lies and dishonesty over an extended period of time. their significant in their own rights they are particularly significant when done by a lawyer, a lawyer who through training and tradition understands what it means to be a lawyer, to engage in honest and fair dealing and adherence to the law mr. cohen disregarded that training, disregarded that tradition and decided that he was above the law and for that he will pay a very, very serious price. >> and meanwhile president trump's former campaign manager, paul manafort, was convicted of eight counts of financial wrongdoing, they include two counts of bank fraud, five counts of tax fraud and one failing to disclose foreign bank accounts

the jury did not reach a verdict on the remaining ten counts, but each bank fraud count could have a possible 30-year prison term speaking to reporters ahead of a rally in west virginia, trump appeared sympathetic to his former colleague >> i feel badly for both i must tell you paul manafort is a good man he was with ronald reagan. he was with a lot of different people over the years. i feel sad about that. it doesn't involve me, but i still feel -- it's a sad thing that happened. this has nothing to do with russian collusion. this started as russian collusion. this has nothing to do this is a witch hunt and it's a disgrace this has nothing to do looking for russians involved in our campaign there befowere none. for more on what's being branded a catastrophic day for donald trump, head to our

website, cnbc.com. output from germany's coal plants dropped in the first half of the year as renewables surpassed coal to become the largest source of power generation still berlin is falling short in its ambitious renewable energy policy germany will not meet the pledge to reduce gas emissions by 55% compared to 1990 levels by 2030 according to a report and will only achieve a maximum cut of 45%. a major obstacle to the widespread adoption of green energy is storage with providers in the world struggling to develop technology that will let them reliably store and use excess hydro, wind energy in

volumes. annette, it seems they are grappling with more sustainable energy, carbon-free forms of energy what more can you tell us? >> yeah, that's a challenge here in germany, even though investi money in the energy transition to exit nuclear energy altogether, at the same time aiming to reach the climate targets. if you look at the energy mix in germany, there's a huge amount of coal involved that is the problem here we have a commission now who looks into exiting coal energy altogether, but it's an emotional topic. let's talk about renewables and the challenges here. the wind is blowing whenever it wants. the sun shines during the day and the key here is storage. the storage problem is not

solved yet we need that solved before we can use renewables as a commodity such as coal or nuclear energy i spoke to a board member of siemens about that issue listen to what he said about that >> storage will play a major role that's why i always say electricity is not a commodity because it cannot be stored yet in large fashion when we look at the technological progress on storage, on battery technologies, we've seen a lot of progress in the last couple of years we have utility solutions, and we can provide solutions on autos. >> another bottleneck when we talk about renewable energy is the problem of the grids the grids need to be installed before we increase capacity.

clearly energy which is produced off-shore in the north sea needs to be channelled through the south, to the east, to the west. we are only talking about germany. so there is stillvin e investment needed to make it a viable energy transition to avoid pure play renewable energy supply in germany. back to you. >> thank you a shortage of cobalt is the biggest concern chen it comes to the development of batteries for electric vehicles, that's according to our next guest. just to pick up on what my colleague was saying, she said the two major challenges is the grids and also the storage of renewable energy i think batteries are a very good example of that essentially they're looking -- storage of energy in a renewable and environmentally friendly format, but that's putting a lot

of pressure on the cost of raw materials. how do you see this all playing out in the next 10, 20 years as far as the cost of the raw materials is concerned and cobalt >> that's true i think just going back a step, if you look at germany, one big issue is the amount of wind they produce in the north and in the south. as your reporter was saying there, the issue is storing this energy once it is produced so renewables are great at producing energy, but it's difficult to know how much it will produce at any one time the batteries could be a great way of storing energy. almost acting like a valve in the system when there's too much energy, the batteries can store it and release it back into the system. looking at the usage of lithium ion batteries, stationary storage is only a small part of the mix. about 98% of all lithium ion batteries used last year were in

electric vehicles. >> so the auto industry is making the shift away from diesel emissions, gas emissions, towards electric vehicles. there's only a limited supply of natural resources available. this is putting a lot of pressure on cobalt, on nickel, on lithium which are all raw materials used to produce the batteries. how do you see the technology evolving in the next 10, 15 years? is technology evolving in such a way that the raw materials can be used more efficiently so that the effective widespread uptake of electric vehicles and their batteries that come with it is something that is anticipated in the next 10, 20 years time will it be limited by the raw material constraints at this point? >> that depends on which raw material you're talking about. cobalt is a good one to focus on the price has gone up three or four fold the last couple of

years. that puts pressure on auto companies to reduce the cobalt they're using and the batteries they're using for electric vehicles when you see a mined good value going up, you tend to see a reaction on the supply side. for cobalt, the supply is constrained to the democratic republic of congo, the drc with lithium and nickel there's not such an issue in terms of supply >> what about alternative sources of battery, hydrogen fuel cell batteries, is that a technology you expect to take off as well? >> i think the main focus, you can see a lot of the automakers are going and doubling down on concentrating on lithium-ion batteries. while there are different energy types which can be used in batteries, it depends on the cost with the drive towards lithium-ion and reducing costs there, that's likely to be the principle battery used in entry vehicles going forward

>> are you expecting big efficiency gains to be made in that space in the next 5, 10 years? >> certainly one key problem now is the costs to produce the batteries as those get scaled up, attention will turn to the cost of the metals used in the batteries instead. we are likely to see 13 million passenger vehicles being sold by 2030 compared to maybe under 2 million last year. in terms of total global fleet of cars, that's about 15%. it will be a huge growth area. >> thank you for joining us. >> thank you coming up on the show, president trump's former colleagues michael colleague and paul manafort face the music on a dramatic day stateside more when we return. can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin

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welcome back president trump says he will slap a 25% tariff on cars coming from the european union. the statement comes after wul

bu wilbur ross told the "wall street journal" he had pushed back on a timeline and dallas fed president robert kaplan says he expects three or more interest rate hikes over the next 9 to 12 months notably he's not a voting member and won't be until 2020. today the fed will release minutes from its latest meeting with investors keen to find any clues about the possibility of two additional rate rises. stay tuned, cnbc will find out if the mountain air can clear the heads of the world's top central bankers. we are live from jackson hole where steve liesman will speak to fed policymakers.

i'm happy to bring in christopher smart, the head of macro economic and geopolitical research at bearings first, thank you for waking up early to speak with us on this show i know it's early for you over there. just taking a step back and talking about the u.s. economy, s&p has just made new intraday record highs the economy seems to be on good legs the fed is tightening. do you see this momentum continuing over the next 12 months or so >> i think it's hard to see right now what will disrupt the current trends if you look at what the imf world economic outlook of the last few months suggests, of the 193 economies they followed, only a handful are in recession. the u.s. continues to be strong on a lot of different fronts

earnings are strong. there are a lot of potential pitfalls out there but at least as we look out over the next 12, 18 months things are looking good >> it seems like the only person criticizing the fed here is the u.s. president how seriously should we take president trump's criticisms of the fed? are they likely to listen? >> well, he certainly is not the only one critical of the fed the fed has critics all over the world. it's unusual to have a president of the united states in the last couple decades so openly critical of the fed. previously presidents and treasury secretaries have tried to allow the fed to do what it does, whichout pithout putting on it. my view is the fed will look at it over the next weeks and months, and we may expect a

couple more hikes this year. maybe one or two early next year, then we'll see by next summer where we are in the economy. there's some early signs that wage pressures are picking up in the united states. but the rest of the world is still trying to catch up we'll see next year where we are. i think the big risk now, is that we're in a world of the fed tightening, the bank of japan loosening, and ecb somewhere in between. that's what i think creates probably the most difficult set of cross-currents for investors. >> over the last month or so markets have been characterized by extreme volatility in emerging markets do you expect that to feature at all in jackson hole discussions? >> i'm sure it will. i'm sure it will i think that's the latest

headlines out of turkey. things are quieter in turkey with the holiday that will come back to be more prominent next week. i think there are issues, concerns and discussion about what's going on in china chinese authorities are trying to slow down the activities in their shadow banking market without hurting growth that's a difficult balance to strike in the best of times. and the trade headlines, the trade war with the united states and potential headwinds from tariffs make that a more difficult balance to strike. i think that's a very rising mood music in the background for fed and monetary policymakers to talk through this weekend. >> all right chris, stay with us. i will come back to you and discuss the other main issue on the agenda today that's for years he was one of president trump's closest confidants, now michael cohen

has pled guilty to federal charges on the same day that paul manafort was found guilty on separate charges. the president has distanced himself from both men. susan mcginnis has more. >> good morning. some of the most important words that cohen spoke at his plea hearing yesterday where he pleaded guilty to the eight charges were about campaign finance violations, this has to do with the hush money payments to the two women for paying them off to keep silent regarding affairs they allegedly had with president trump. cohen admitted that president trump directed him to take these actions and he said his principle purpose in taking these actions, committing these crimes was to impact the election now the president's attorney, rudy giuliani, says none of these allegations of wrong doing have anything to do with the president. people worry that the president could face accusations of wrong

doing, some are talking about impeachment, that there are concerns about impeachment, especially if the democrats win back the house in the november elections. >> susan, thank you for that i'll bring back in christopher smart from bearings, he has been waiting on the line. can i ask you your take on yesterday's developments and whether or not you're expecting there to be some form of market impact from the unfolding events in the last 24 hours >> well, it's hard to know particularly in the context of what has been a noisy administration this is clearly more noise on a political and legal front it's not good news for the u.s. political situation. but i think it's hard to link any of this directly to market trends i think there's more sensitivity in the markets to clearly the

fed, to economic growth prospects, to earnings that are still coming through, and probably again to my mind the biggest risks are the cross currents from monetary policy as well as perhaps the rising uncertainty around trade negotiations and tariffs >> do you think the administration could actually use a so-called divergent tactic and focus away from domestic polit politics, become on trade wars, sanctions, be it on russia or turkey to divert attention away from what's happening at home? >> i think most seasoned political leaders know about diversionary tactics we have a president who is particularly skilled at that most would agree with that but there are a lot of things going on in the world. it's hard for markets to price in all of the different noise that is coming through

again, for the most part, the focus now is probably less on the president's political problems unless those heat up through the fall than they are on monetary policy, growth, china and turkey >> going into the midterms, if there is a change in composition of the house, how do you think that will impact financial markets from here? >> i think markets are focused on the last tax cuts how those are playing through to earnings in the united states. they had a big boost the last quarter or two it's unlikely we'll get legislation, new tax reforms over the next two years before the next presidential election which means the focus for markets mainly in washington will be on the budget conversations, what gets done,

how much we can go back to a regular process if democrats take control of the house. it's probably another couple of years of ups and downs, and late night weekends, deadlines to potential shutdowns. >> chris, thank you very much for joining us on the show that was christopher smart from bearings before we head out, one last quick glance at u.s. futures dow is seen opening up about 66 points lower s&p 8 points lower off that record all-time intraday high that we reached yesterday. that is it for today's show. i'm joumanna bercetche, "worldwide exchange" is coming up next. xfinity mobile is a new wireless network

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. it is 5:00 a.m. in washington here are the five big things you need to know a mega milestone for your money. wall street's bull run becomes officially thelongest on record could it all come to an end after michael cohen takes a plea deal and implicates the president in a pre-presidency payoff we're live in d.c. with the latest. the president doubling down on auto tariffs against the european union facebook purging hundreds of fake accounts linked to iran and russia. and if you want some ideas on this weapon d