>> today myself and mr. president had a meeting and then we met also with our staff we had long conversations, honest discussions and very strong at certain points as well in terms of diagnosis of the situation in the area of energy security alike i am convinced that they are going to draw appropriate conclusions. as i said, both sides presented their positions in many absolutely many elements they are concurrent as far as the assessment of the situation currently is what kind of steps need to be taken in order to protect both the issue of security and the issue of interests these are business related issues i am convinced that ladies and

gentlemen you are going to see the results of both of our meetings today and of the declaration that we have signed together with mr.president. >> we want to go through a full process. you want to make sure everything is perfect everything is just right to that what would be the problem for the fbi reopening, would you support such thing >> it wouldn't bother me other

than the fbi sad they real -- said they really don't do that that's not what theydo >> i feel so badly he is going through this i feel so badly for him. this is not a man that deserves this it should have been brought up long ago when senator feinstein sat far long period of time she had this letter, why didn't she bring it up then? why didn't they bring it up i

think they lousy politicians with all of that i feel that the republicans and i can speak for myself, we should go tlhrough a process. there shouldn't be a doubt again, they knew what they were doing. they should have done this a long time ago not now. i don't want to play into flathr

hands. >> i just think it is at a level that we rarely see not only in government any where in life and honestly i felt terribly for him, for his wife who is an incredible lovely woman and for his beautiful young daughters. i feel terribly for them >> you announced new trade tariffs against china, trade tariffs are a very important part of your economic and trade policy in your first year in office the u.s. trade deficit increased by 12%. last month we saw the trade deficit increase to i believe it was $72 billion. so my question to you is your

trade tariffs policy working >> it just started we didn't do anything with respect to china because we want today have the benefit of kline th -- china having to do with north korea. it got to a point where the numbers were too big it should have been done for the last 20 years. if you look at the wto, world trade organization, that's when it really happened. it is taken out of this country, $500 billion a year or more. that would go a long way rebuild the whole country.

that's what china did. they rebuilt their country with tremendous amounts of money pouring out of the united states i have changed that around if you look at what's going on it is going up like a market ship their market is down 32% in three months we can't let them do anymore what they have done. i watch trade deficits because to me they are very important. some times you can have a deficit and that's not such a bad thing. when you many liabilities of other types you to do something about it we are the piggy bank to the worl we have been ripped off by china, by excuse me, mr. president, the european union of which you're a part of

we have been ripped off by everybody we have horrible immigration laws we have come to a conclusion with mexico. canada has taken advantage of our country for a long time. we love the people of canada

they are in a position that's not a good position for canada they cannot continue to charge us 300% tariff on dairy products that's what they are doing so this is a process it takes a little time they wouldn't talk to us or president obama. wouldn't even talk to him. i said that's okay you don't have to talk to e. he is a tough man. she he is a very good man. he is tough. he is nasty. he is a tough cookie. after three times he didn't want to negotiate

i said that's okay we don't have to negotiateful negotiatefully -- negotiate any longer honestly he was in my office so quickly from europe. i said where did you find this plane? we have a deal >> they said millions of bmws and mercedes into our country. it's very important to me. i have been saying for 30 years it started with japan. i talked about japan i talked about china i was right. it's what i do i like doing it. i like doing it for the people because our country has been

abused and taken advantage of. we are not letting that happen anymore. it includes what i said previously about the military. >> reporter: welcome back to the u.s. >> it is similar to you. mr. trump saying i'm saying poland first we understand each other very

well it is hard for me to be surprised for the fact that mr. president being very experienced men it knows how to calculate and i know nobody puts it in and he takes care of the united states it lies in the interest to have a trade ex-change and this is something that you have to take careof it is to lose as little as possible and we have an agreement and we can say we are cooperating with each other on equal levels and i believe this is the kind of cooperation with

the european union it will be hard to be surprised with that. i am listening to that and i would like poland to be such a country such an economic super power that it would be a very important to the united states i said jokingly i wish it was poland which disturbed and i do believe it needs to develop well on life principals >> the trade deal with south korean has been fully renegotiated and ready for signature. we may sign it shortly there after. thank you very much everybody. we pleeappreciate it. thank you. >> thank you >> president trump hosting the president of poland at the white

house today reasserting the alliance both military and economic between the two countries and giving headlines on trade i don't know which one it is he called it nasty but trying to illustrate that his trade tactics are working since we are just getting started the whole world is basically stealing from us china 500 billion helping to rebuilt this line that we are a piggy bank for the rest of the world. >> and we mentioned china trade and said we are just getting started when it comes to trade policy no signs of backing down and siting the wonderful deal he called it. also some political headlines as welcoming out of that as it related to the jet, the russian

jet that had been shot down. we will get some reaction there. he is ready to sum up some of the main headlines >> that's right. a couple of headlines there. what you saw is the president's approach in terms of the trade it is sort of a grievance. other presidents should have done years ago what he is doing. the president saying that other countries have taken advantage of the united states for decades and decades. he said he is going country by country around the world and renegotiating those deals and getting them on better terms for the united states. the president said he has a deal that has been fully renegotiated they are ready to sign next week we also saw the president ignoring some questions about the anonymous at the end

ignoring questions about judge kavanaugh. he said he feels very badly for judge kavanaugh that he is going through this >> an interesting story as well to round that off with the polish president not necessarily seeing eye to eye on everything but he is saying again president trump says america first i say poland first and just that sense that some countries are moving a little bit away from unanimously always backing the eu itself. >> they are an eu member.

>> the guys has tension over the tariffs both of them have now put in place i think the question is will the leaders of the united states and china stay at the negotiating table, notable they will continue to have sort of positive sentiment saying that he has great respect for them, that they have a good relationship and also saying that china has taken advantage of the united states for too long and giving a little bit of a hint of his negotiating strategy >> we didn't do anything with respect to china because we wanted to have the ben flefit o china. i hope they are still helpful. that's question about that but it got to a point where the numbers were too big it should have been done for the last 20 years. >> businesses however disagree very strongly. they have been up in arms over these tariffs. they are calling them the wrong

way to adhoochieve real reforms. they are saying the apparel and foot ware industry saying tariffs are plain cruel. separate from the tariffs president trump brought up the issue of dairy subsidies as a point in thosenegotiations >> thanks for that excuse me. we have had a number of guests already on air today commenting. let's take a listen to what some have been saying >> china doesn't have enough imports from us to make a reciprocal tax china, we sell them less than

150 billion a year in that sense they out of bullets. >> we have over 5,800 manufactures employees in the united states. we need to add to the jobs >> were you scared >> trade is one of those things where it's not a zero thing. you can trade something and we can bothwin.

steve is taking a look at things from that angle. >> how long the trade war lasts depends what they think the tariffs are supposed to do. tariffs could grow wider if they come from another country. they say china can wait these tariffs out. they say contrary to some it is not a large enough part of the chinese economy for is it weak enough for china to be forced into fast concessions on trade and economic policy. one thing that could shorten the

life of these tariffs is unable to avoid hitting the consumer. items like furniture and lamps will go up in price. it could face a domestic backlash that could shorten the tenure one of the complaints is that the administration has not been concise about the tariffs. >> stayright there we'll broaden out the discussion good afternoon to you all. talk us through the rational and what has it played a part in wanting to expands your verbal footprint?

>> it wasn't protectionism it was a desire to expands our global footprint and the products that we produce in the united states are simply very different than the products that are accepted in europe our units are larger they are heavier and the units that are built in germany are smaller lighter weight are something we don't produce here. large companies have a strong management team and long history. that's what we got was to expand over to europe >> it started with tariff talk some went out earlier this year. we are in a very different

industry we can -- so it is effected a little bit we'll see what happens there i think everybody is looking to see if it's really negotiating or something that is concrete. so far it hasn't been horrible but it could get worse if they continue to go out >> and this disclaimer, i don't think it will go on 30 or 40 years. i am a free trade person i think most americans are it's not to say i'm against what the trade war we are having right now. there needs to be a rectification. i think once the hot war is over i don't think there will be a long cold war. i think everybody will realize

all parties are better off when we have free trade as a matter of fact it was president trump himself that said if you want to end this thing let's drop all of the tariffs. it would be a boom for everybody. >> a lot of people said they didn't do very much in terms of clangi changing the terms of trade. the problem is this idea of the president bs a free trader came much later in explanation. he talked for many years as a way to rebalance trade just for the record the idea of being ripped off by the half trillion deficit is not one shared by

almost any economist iknow >> he has two porsches he is quite a bit richer >> it is trade 101 for us. if i come back to you when you make an acquisition like you had today in germany, particularly one that is autos in the eye of the storm politically whatever you true motivation for doing that, do you fear backlash for doing so >> we really have not seen that.

you always have to be conscious of all of the political environment but for us going into this negotiating with the management and the family that's not something that we experienced so how exposed is the group? >> the semi conductor industry is for the united states a big one and asked if we get hit with tariffs and it becomes more expensive it will be a problem. the real issue is like the semi

conductor industry where they are actively stealing our secrets, have government money out buys semi conductor companies and out with a written plan to make all of their own semi conductors by 2025. the underhand attack that are being used are really more what this is about rather than who is trading what and who is getting an advantage or whatever >> all right we'll leave the conversation there. great to have you weigh in the shanghai composite is down in the last three months it is down a little bit more obviously his point is well taken. they suffered a bigger hit than we have. >> it is a sort of almost

accurate figure. absolutely right the other thing that amused me is how he said i was surprised they could get him here so quickly. >> i thought it was a super fast plane. that's what you need >> six to seven hours. now, switching gears let's talk shares of tesla tanking after reports that the company is facing a criminal probe over funding secured tweet. phil is in california with the latest, phil >> reporter: it's a little hard to determine how intense this investigation is sheer exactly what they are looking into and what tesla has been requested to provide and what it provided so far. the focus of this probe by the doj is musk's tweet sent out in

early august we have not received a subpoena or any other formal process. we respect is doj's desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received take a look. it came under pressure starting about two hours ago once the first reports came out that the doj might be launching or conducting a criminal probe the sec, remember, is running its own investigation into the take private tweet that musk sent out and all of the factors surrounding it as of right now tesla continues to grapple with this tweet that musk sent out in early august and there's no indication that

we'll see these investigations wrap up any time soon. we all know the doj goes at its own pace whether or not it will wrap up is entirely up to investigators. >> the stock down almost 4%. thanks very much we'll check back in with you later. we are asking what implications it could have forinvestors.

>> they know had they not complied they could have gotten one the next day there's no reason to disbelieve their disclosure because of significant penalties. when they say it was focused on the tweet and funding secured i take it at face value. >> you own 41,000 shares were you concerned by this investigation? >> well, i mean if there was something to it we all know what happened as far as i'm concerned i don't know if it is a concern they

have to look at it it was an awkward situation. when you put it in context of how this news even broke as the stock was moving much higher today. you know, i find it is some what to say some sort of big criminal probe. although i'm not hop pi about it i think it's hoping for another life >> is there any precedent for this kind of investigation from the doj and the sec? >> sure. it's a standard investigation.

>> more that miplation >>. >> i would say it's a little less common because they let the sec have the first crack >> focus a little bit and we have kimbal musk and whether the company was going to hit targets and whether it was posztive support. >> it is also meant to be a board member do you think it's a warning sign to see it is not challenging him. >> no. i think i don't understand the strategy as much as far as bringing kimbal. he is clearly the closest person that you can possibly interview.

i think the board needs to step up i am fine with him in general. he started papal it is an $80 billion plus company. >> maybe you can give ross a warning or a final ward to him is he right to be so nonchalant about all of this?

>> it is for him to decide the fact doj is investigating you're never happy to hear the high of the day is about 250. a nice bounce back in the sectors that declined the most yesterday. it means tech is high, energy is high the nasdaq leads is up 0.9%. a top market analyst says forget about tariffs. a bigger threat on the horizon and investors are ignoring we'll have that coming up. >> one group of workers has seen a massive pay boost under president trump'ecoms ony. we'll tell you which are cashing in

at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

you'll only pay $4.95. directv gives you more for your thing. if you've been waiting for a sign to quit cable, then here's some signs. ♪ quit cable it came from the toaster. ♪ quit cable uh... ♪ quit cable now you can quit cable. switch to directv for $35 per month. rated #1 in customer satisfaction over cable. more for you quitting cable thing. that's our thing. call 1.800.directv.

we are going to get straight to our closing bell. rick is with us in chicago >> the president seemed to be

towards getting together and giving them a little bit of a reason to come and negotiate the fact of the matter when you take a look at the under pinning for the economy and earnings for the quarter that we'll be looking at, these look solid if there's any sense that earnings per share i think that's what will effect the market ultimately rather than the tariffs. this is ongoing. this is not going the end tomorrow it is not going to end even in september. you know, next year or january it is ongoing. i think the market has to fe kus on what itknows.

the only way i could is to shadow box it like the stock market, credit markets, like a lot of different global markets. i think that the notion of us continuing to do better and widen that spread is a high probability. i certainly do think it is exactly right. when we came in this market the asian markets are already doing better i really do think it's the notion that instead of 25% starting on monday it will be 10 with the rest at the end of the year it certainly does seem to be a crack in the door of negotiations >> it may be but it also could be a crack in the amazing

earnings growth that you have seen that we pin this rally to >> you also have the market right now it is not certainly not 18 or 19 times it is pulled back. so the market is being much more selective. you can see this even though today we have seen this making us think everyone thinks everything is going to be positive looking ahead if you look at the skew index which is an important index for the market you're seeing a lot of hedges on downside hedging they are hedging to the downside and at the same time going along the market which is a long thing to do. you have health care along with the semi conductors are up today. you also see a market that is not afraid to have some value

and defensive stocks in there. sit the market's way of hedging and not going long it's the indication of a smart healthy market >> thank you vur muery much for joining us we will leave the closing bell exchange we'll dive into the details when closing bell returns so, the whole world is talking about ai. big, bold promises like... it'll transform the human race! it's gonna solve unsolvable problems! it'll find life on mars! but here's the thing. you don't live on mars. you build wind turbines. supply car parts to thousands of cities. answer millions of customer calls a year. like this one: no, i didn't order this. it's terrifying. you run a real business

with real roll-up-your-sleeves business needs. and that's why you work with watson. hello. so it can analyze weather data to help retailers increase foot traffic. assist thousands of online banking customers each week. and reduce delays for 25 million passengers. mahalo. watson isn't just the promise of ai. it's the real deal deep learning business ai. that knows your industry, protects your insights, and works with tools you already use. that's why it's the best ai for the job. and works with tools you already use. whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus

containing this information. read it carefully. a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned.

see what a raymond james financial advisor can do for you. a new report shows pay is on the rise for wall street bankers. it increased by 13% in 2017 to an average of $422,500 joining us now, tell us what else you found in terms of wall street pay and how much it has come back in the ten years just as we are marking this period since the financial crisis.

the income generated over 20% of the wages and salary in new york city there is an out sized impact of this compensation. that translates into tax revenue for new york city and new york state. >> what's your view in terms of whether they are justified or not? clearly returns for banks have been pretty good this year they also boosting the returns they give their shareholders whether that's through buy backs or dividends so it is justify today play as

well >> we see for the first half of 2018 profits are up over $13 billion. on track probably to beat last year's profit blt. it is hard to answer that question as to where that compensation level is justified or not we know when the street does well right now it contributes about 18% of the revenue that supports all of the other spending and programs that we have in new york we always say it's great work if you can get it it is important to point out in terms of the size of the industry, in terms of jobs it is smaller today than it was before the global financial crisis. it does look like we'll see a net gain in jobs i think it's important to point out although the folks that have the job are well compensated there are fewer of them than there were ten years ago >> as i was reading this report on wall street pay i was

reminded of this conversation last night between gary cohen and also used to be the president of goldman sachs i want to play it for you. listen. >> what laws were broken >> well, people lost their homes. people was she reckless and stupid i'm not defending either i'm saying they should have done more due diligence or was the appraiser because the last sale took place at 50% more than the p prior sale who broke the law? >> i thought it was pretty

extraordinary. they paid billions of dollars for misleading mortgage bond investors i think our report not just this year but recent years show it has been able to make money even with oversight and regulation

we don't want to go back to the high reward behaifr yor that brought us all down with global financialcrisis >> we are tracking the bonuses that are paid. we can't break out how much of that is a cash bonus or how much is before years before there's no doubt that the model is very different.

i think it's a smarter model i think it lends itself to more profit blt it makes more sense. i think it's a smarter way to go for the long term. >> thank you is much for joining us we have ten minutes left bouncing back from the declines. nasdaq was down double the gains yesterday. it is down still for the week. the other two higher for the week the nasdaq bouncing back >> the fallout continues for the car li 'lgilinas. wel ve you a look when closing bell returns from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional,

is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. find your certified financial planner™ professional show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand?

good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. >> the fallout from hurricane florence where at least 33 people have been killed in the storm. the threat of more flooding in the region remains cnbc is live in north carolina now with the latest. >> hi there. for the first time today about

the cape fear river the water is receding i'll show you how i know when you look at this dock you can see the batter line where it because few inches earlier and where it is now. this was a boat launch far business that rents out kayaks and ntertubes. the bridge is that it's passable and as we showed you that's not the case where they are

expecting this is a movement for diss disaster zones it is a small patch in south carolina it will be a case for days to come until the battwater keeps receding >> up next we'll be ckba with closing count dount. five minutes left of trade global markets, t of the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

comfort. what we deliver by delivering.

each day our planet awakens but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. your neighbors. you like them. they always remember everyone's names. your kids love swimming in their pool. you like them. if you forget your trunks, they'll loan you some. they have a section in their stock portfolio just for pool stuff. everyone likes them. you like them. but you'd like them better if you made more money than they do. don't get mad at your well-liked neighbors. get e*trade.

shanghai was up nearly 2%. if we look at the s & p 500 you can see that's bit of a bounce back tech is near the top as is energy it is the likes of real estate they are sort of slightly more

interest rates and boring sectors. i will show you the dollar indeks as well for the last week an interesting movement over there. it is stronger having been a lot weaker it is down about two-thirds of 1% >> smaller thanexpected we had a small breakout in the industry names it's not been a big break yut yet bet but we se

pacific always on a new high list >> there goes the dow. a 200 point gain for thedow. >> it is back to you >> welcome to the closing bell i'm here for kelly evans let's take a look at how we are finishing up the day dow is going out with 186 point gain off the highs of the session not bad. takes us back to the highest level since the end of january

s&p as we mentioned earlier not auz much as it lost yesterday but pretty brad basoad based gan there. this is t-- there is tesla. we'll discuss how much trouble the company could be in. >> the biggest loser was general

mills how do you make sense of shrugging off between the u.s. and china especially in technology >> one that it was so well previewed. ferch it were 25% on that amount of chinese imports in the context of a 30 trillion u.s. stock market it wasn't enough to swing it all the way the biggest risk is immerges markets were going to seize up it is more relief than it is excitement i think it's a net negative to

have costs rise for this reason. >> it has been so far. >> it hasn't to this point i think it helped definitely that shanghai balanced it helped they were in recovery mode i don't think anybody is sounding an all clear here for the markets. it is probably encouraging that we just sort of clinched up in advance of this. it is the latest trade move as the big investor >> well, as mike pointed out it was not as bad as the market has anticipated or seemed yesterday to anticipate. we had a tough day yesterday there has been talk about how the nasdaq has been flat for effectively two months now many of these stocks that have

driven the markets up it's ward have not contributed much in the last two months. it was nice today to see the nasdaq regain a little bit of momentum i think tlhere's a relief factor in the market. i think we could all feel as if the market perhaps has stabilized and the fear and panic may have subsided. >> mike, in terms of the nasdaq bounced back but not all of the gains what is going to be? >> i would think when we get there i really -- to me it has ntd seemed like a rotation away from the nasdaq growth names but one by one those stocks found reasons to correct and get

picked offfacebook so it seems like it is needed to sort of rest in this next phase. i do think that the nasdaq bouncing the apple exemption definitely helped on that front. >> i wanted to ask you about the signal from the bond market. it is pushed back above 3%.

what is perhaps more meaningful is that if we can stay at 3% it is really about how we can get through the next couple of months i am not at all concerned about it i'm more concerned about if the dollar will start to effect earnings we have had four quarters up until now with real lay tail wind again, you have labor costs

movinghigher >> the dollar has been rolling over it shows that pessimism has hit the highest level since 2011 a net 24% of those surveyed said they expect global growth to slow down over the next four months >> it is a little bit defensive. this is a global fund manager. global markets have connected pretty severely.

so to me it means that it is cautious enough and cash lovers are high enough that it is subdued. it means that people are not overexcited. people are able to absorb bad news better because they are not out over their skis very far it kind of reflects thousand market has already behaved more than it is where it is going >> if you look at some of these numbers does this mean we'll change direction >> in and of itself, no it doesn't. i would really like to see if the composition of what it has changed. you know, the pessimism indeks, that moves around confidence we

talked about last month at an all time high. i don't really take a lot of guidance or redo it our firm based on what these numbers show, however, i do think that if we start to hear from companies as they report that managements are more concerned about trade or about growth over the next year. you know, that's a worry we have heard a lot about good numbers on consumer spending we know we had a great second quarter. we see how that translates into this quarter and at this multiple the market is not kraly expensive we are selling it 16 times next year's earnings. that's wan reasonable range. >> shares have been on a tear recently

it is after receiving approval tilray is up in the last four months alone >> i think the ceo is joining jim tonight. >> if that's a sign of things to come why not but clearly, mike, these stocks need any tiny bit of good news and they take off. >> what it tells me more than anything is there's not enough stock to go around to play this trend when the perceptions of the size of the opportunity keep growing. that's not to say this is the way to play it it will be vindicated by how this business does down the road just supply, demand and balance.

the stocks that are out there, it is creating a crazy momentum. >> how much of your allocation is in pot stocks now >> well, i'll tell you something interesting. we own con stilllation brands. that's a mood enhancement stock or something they changed the terminology. i think it's incredible and great for people who own the stock but i think it's also pretty high. >> 800% since it debuted in the

public market in july. is it bubble or are the growth prospects thatstrong when papal became because they say you this little sideline that's what's happening getting credit for being part of this big trend. most of the business is not that >> i would just mention that you're going to want to see this interview tonight. mad money sitting down with the ceo of tilray which is now the most valuable of all of the

companies. >> thank you >> always a pleasure to have you with us. moving on we have new developments on alleged kickbacks. we have the details. >> hey, it is a lawsuit focused on the world's biggest drug which brought in more than $18 billion in 2017 revenue. they have sued alleging it gave illegal kickbacks to doctors to prescribe the drug it alleged they gave classic kick backs but also provided more sophisticated sending nurses into patients homes abbvie said it had no merit. shares did close down close to 3% >> thank you for that. up next tesla shares under pressure after reports under criminal investigation for public statements.

we'll discuss how much trouble tesla could be in straight ahead. find out whether there will be a political price at the polls for president trump in november because of escalating trade war with kline thachina. i think that she's a very nice girl... ...you never got the brakes looked at?

oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital. geand i am a certifiedre arborist for pg&e.ugheses i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure.

at pg&e wherever we work, we work hard to protect the environment. getting the job done safely, so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. so the environment is there for my kids and future generations. together, we're building a better california.

they dropped by 7.7 billion to 1.17 trillion that's how much china owns of our pressutreasuries sit all the back and forth you can read into it politically they are trying to send a message we are the biggest owner of your treasuries or the fact they have to raise dollars to support. either way i think it's some of

the pain they are suffering versus what's happening here in the u.s. >> it is one thing to see if there would be anymore tensions that arise on different fronts it is more than 1.1 trillion in treasury holdings. it is hard to know if it is part of net selling >> and they remain a big holder. >> and japan was a big buyer >> theirs plunging the news coming just as the electric car maker faces new competition on two fronts we have the details on tesla's tough day, phil. >> it was a tough day. take a look at shares. we'll show you a 3 month chart here we have to go back to the early august time frame that really all of this began.

the doj probing musk's tweets that were sent out he said he was considering taking the company private funding secured. tesla issued a statement saying it has receive add voluntary request and has been cooperative and responding to it we have not receive add subpoena, a request for testimony or any other formal process. we believe that the matter should be quickly resolved as they review the information they have received. this coming one day after we saw more signs of greater competition for tesla. audi unveiling the first electric vehicle it will start under $75,000. delivery starting in the spring you added other luks ris and what you have is a booming market we will see explode over the next seven years

look at that more than 8 million electric luxury suvs or vehicles expected to come to market by then. findly lucid motors which is a chinese electric vehicle company announced it received an investmentfund i would not be surprised if you saw them make other investments. >> we'll keep an eye out and interested in seeing that electric vehicle as well interesting colors i'm showing in the colors. thank you very much.

we have more on what this all means for tesla. i'll start with you. what's your take on the latest in terms of the legal challenges is this significant or is it relatively small scale at this stage? >> i think it is expected what we have seen to date certainly the concern is really about criminal activity and whether there was market manipulation to see the doj is in the a surprise at all they are requesting documents i think we don't think it will get resolved any time soon we end up focusing on fundamentals and we think those look good with production numbers scaling up and potential to reach ton model 3 for the

third quarter. >> until we learn more about the investigations is that going to put a cap on the evaluation? no sort of limitations it's an overhang on the stock. if they are going well we think the long term story starts to feel in tact even if he isn't there. we certainly can start looking at other examples like apple and founding ceos have left after the fact. what has been the advantage and has the size begun to shrink

>> who are you asking, me? >> yes >> okay. no i mean i have been very consistent for the last two or three years i have been telling the tesla fanatics he has to get his act together quick this is not a big surprise we haveflown known it was comin last two and a half years. mercedes is going to have one. general motors has announced 20 different electric vehicle models and the thing about all of these is they can all be sold at a loss for environmental compliance reasons and the losses on the electric vehicles can be recooped ton internal con bu internal combustion ones tesla has no internal engines on

which to equip the losses. so to me it is just another -- it's -- what's happening is what i have predicted for last three year is finally coming to pass everybody in the global automobile industry is going to be offering high quality, high-technology, high range electric vehicles and the tesla has no advantage, no technological advantage, no software advantage, no advantages whatsoever. plus what wasn't mentioned is whether they increased model 3 production or not. they still hemorrhaging cash at a rate and that's not going stop as long as they are under federal government investigation guess what the sec will not let them make a capital race so unless they have got some source of money somewhere it is going to be a big problem.

i think the jaws are tightening. i think in another year or two we'll see a movie called who killed tesla starring leonardo dicaprio >> a lot of these about tesla's ability to produce the model 3 gets back to the strength of the brand and the depth of the actual desire to own thesecars it gets them to a break even point which points bonds in a better position as they scale up i think the operating margins

have the potential to be very compelling and they in a position to execute thoon as we go into the back half. if they are able to put that up it puts the stock in a better position we don't flknow about any limitations. they stated they had not received it. there was no limitation at that point. that is purely speculation about the limitations there. you know, we do think the competition may the infrastructure as well as customer investigation it will enhance the number of service technicians that are able to service these vehicles and generally go through the section on this market ramp into an area where consumers really flow about these vehicles and able to clohoose the brand of te vehicle that they want >> final report to you after what i think i heard was the most flattering thing you have ever heard is that he should be

played by leonardo dicaprio. >> he doesn't know thousand run a car company. if he has 50% gross margins then it must be 55% of revenue because he is continuing to show losses they will never make money on the model 3 because the cost is way too high he has got 9,000 people in that assembly plant producing less than 150,000 cars a year the whole thing doesn't compute. it is an automobile company that is headed for graveyard and i predicted this for some time i continue to predict it by the way, i was -- when i was ceo the sec had a case against the former ceo whom the board had booted out for some illegal practices. i happened to raise capital because the debt to equity ratio

was a disaster we were all set to go and the sec said hold on as long as you're under federal investigation you cannot raise capital. i speak from experience. >> interesting thank you for weighing in. the debate wages on. >> amazon is planning to introduce its alexa technology we have all of the details hey. >> hey there amazon is market penetration and mind share to get into as many homes aspossible it includes a sub woofer and

in-car gad jet some of those will have alexa built in and others will require an echo device amazon appears to be losing market share it shows globally shipments outpaced those of amazon echo devices, 5.4 million compared to 4.1 million. it signals the move into home appliances going head to head even though both of these companies already have their own alexa linked devices by bringing in more users am son could be making a play for more addollars.

back to you. >> is there a that she knows users that previously felt i don't want a listening device in my home are softening their views or is it simply that amazon and alexa are offering more services? >> it's a great question i know i have talked to a lot of people about that sense of that tension between privacy and convenience. it seems like a lot of people are just giving up the fact that in order to get more convenience in my life that you do have to give up some share of privacy. it seems they are making it more and more difficult for us to live without these types of devices in our homes >> convenience, privacy. i don't know i think it lab tough tradeoff

aldi has been testing this service in four cities it is part of an aggressive growth plan. others have been strub struggling as well they have allowed it to avoid a price war. everybody is getting into grocery delivery kroger is also working with insta cart >> the concept where the consumers win from all of this competition as opposed to any of the companies it has been very hard to make any money at that >> yeah. >> and aldi -- >> i have had some not great instacart experiences myself >> they are trying >> yes time now for a cnbc news update >> hi everybody. here is what's happening at this hour

rick perry attending the 3 c's summit it aims to improve ties between eastern europe, the u.s. and the eu he says europe should lessen the dependence on russian gas. >> since russia eegs invasion of crimea europe's dependent on russian gas has only been increasing, rising from 30% share to more than 40. >> back here at home sea world and former chief executive have agree today pay more than $5 million to settle sec fraud charges. this is for misleading investors about the negative effect that black fish might have on its business prince william unveiling a statue credited with using his cover as a passport officer to clang the lives of thousands of

jews the statue was unvailed in front of a small audience and members of the majors family you're up to date. that's the news update i'll send it back downtown to you. >> okay. thanks very much tesla isn't the only company. spacex announced who will become the first private passenger to fly around the moon. they didn't listen to me they do have a name. we'll reveal who it is >> we don't know how much he paid but we flow she a billionaire and he is taking six to eight peechl with him the trade war cost farmers billionsover dollars we'll get thghhis outs on the latest round of tariffs.

you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm.

i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. ulberolewe'll discuss if there cod tub at the polls. closing bell back there a couple of minutes this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments

in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. the best performing sector diskegs and energy tech within the s&p. right now president trump of course announced more tariffs earlier today. he is speaking this afternoon the topic says the sus willing

to impose more tariffs on china in the future. >> right now we just imposed $200 billion on 25%. we just just went on and kicks in on january 21st it starts off at 10% sha shortly there after it go to 25. if there's a retaliation against our farmers and industrial workers and ranchers, if any of that goes on we are going to kick in another $257 billion and that will be also at 25% we don't want to do it but we probably will have no choice >> laying out there the threat of more tariffs. here to talk about the impact both on the ground for farmers and manufacturers as well as in washington head of public policy, iowa secretary for agricultural so secretary you heard the president saying if china retaliates against our ranchers

and farmers there will be more tariffs. do you support and do your members of your farming community support the president's actions or is it hurting the wallets? >> well, as we head into the 2018 harvest season this escalation of the trade conflict couldn't come at a worse time. it is impacting or markets that's impacting our farmersment th -- farmers. there is no doubt that the retaliatory tariffs are impacting our marketplace and impacting producer negatively. >> are they going to vote republicans in the midterm and support president trump? >> i mean that's lot that go sboos that i think issue that is impact the economics of iowa and impact farmers pocketbooks will impact the politics it's not as simple as this one issue. farmers are encouraged fby tax

reform they encouraged by regulatory relief there is more to it than the trade picture. it is an important issue that will impact the pocketbooks. >> when we consider it to the latest sort of escalation it was a positive response. what do you put it down to was it less than people were expecting? >> i think people were likely expecting the 25% rate the fact that they got the 10% rate we were talking about earlier it was not only are these -- is the president going to go through with the tariffs but he eluded to future tariffs. so that would be, you know, it would hit the consumer and would hit growth and would likely be negative for markets >> and i guess one of the things that investors have struggled with is there countdoesn't seem

process they are trying to bench mark what's the next point? we are talking about meetings later this month >> yaechlt i think look, there were some meetings that were tentively scheduled for the end of the month it is unclear whether the chinese are willing to go through with those at this point. there is a potential off ramp and the g-20 sum plit mit at thd of november. i think they will look at that to say it could be a potential off ramp the reason is that because what the administration is asking are significant concessions to the industrial growth model. if it war question they would be ready deal we are asking them to make pretty big concessions i don't think they are there at least at this point >> how big of a market is china for your community >> the top issue that we talk

about is soybean production. roughly one-third go to dhien th -- china. it is a significant impact >> you encouraged though to see some of the progress that has been made with the likes of mexico if something similar happened do you think your constituents would be encouraged and would that be kind of negative rhetoric and escalating trade tariffs? >> absolutely. there are folks that appreciate the fact that we seem to be making progress here we really do need in iowa canada and mexico are number one and number two securing nafata 2.0 would be a step in the right direction. if we can carry it into china and also beyond that and reengaging with expanding markets that were involved in the tpp agreement, japan,

vietnam, south korea, those would all be positive things too. they are looking to really play offense on trade as well >> is there anyway to put an estimate on how much this is going to hurt u.s. or china? >> look, i think for the u.s. we have been working on this internally i think for the u.s. for 2019 that's when you really see the impact especially if you saw the tariffs on all of the chinese imports. you're talking about potentially 50 basis points of ahead wind to growth in 2019 so not insignificant >> half a percent. >> yes >> thanks for yojoining us there spacex booked the first private passenger far trip around the mn.oo he is bringing people with him are you interested

i'll have details straight ahead.

(nicki palmer) being a verizon engineer is about doing things right. and there's no shortcut to the right way. so when we roll out the nation's first 5g network, it'll be because we were the first to install millions of miles of fiber optics. and we'll be the first to upgrade the towers and put up the small cells that will power the smart cities of the future. when i started at verizon, i knew i was joining a team that was pushing the industry forward.

now, with the launch of the only 5g ultra wideband network, we're doing it again. this time, changing the way we learn, work and live. and i'll always be proud that we're not just building america's first 5g network. we're doing it right. ♪ sonchts musk is unvailed the identity of the first plans to fly around the moon. the plan uses the bfr and adpaening bfs capsule.

if all goes accord to go planned 2023 he made his billions which owns the largest online fashion retailer is also an art collect ofrmt he does not want to make the four to four day journey alone adding he will bring six to people people along with him on this mission. >> i thought long and hard about how it would be to become the first private person to go to the moon at the same time i thought about how i can give and how this can contribute this is my lifelong dream

if you're wontdering whether musk is going whether musk is joining him on the trip, the question was raised last night at the event and he said maybe we'll both be on it. maezawa did invite him. >> do you know with the zozo suit it's what the zozo town makes, skin tight suits they look like space astronaut suits or something would you take a trip to the moon with spacex we took to the streets to find out. >> i think it's an awesome concept. i don't think i would do it. because i'm not that adventurous. but i think it would be great for someone with an adventurous spirit. >> a sightseeing trip around the moon would be boring seems to be if there is

technology allowing me to fly around the moon then let me fly around mars or interstellar travel. >> i'd like to see the hyperloop built first before signing up to ride on the spaceship to the moon. >> money is a factor for me. there is no amount of mona -- i would miss my grandchildren if i didn't make it back. >> what does it cost to send someone into space so, you know i'd pay a dollar. >> i don't know, if the general public is there yet. >> that was -- he was demanding that last guy. but. >> i remember talking to neil degrasse tyson he said space tourism is the next frontier and driefgt so much investment into space. >> and a little bit of misapprehension how far the moon is relative to mars. we showed the drawing. it exists sow someone o somewhere. >> about 240,000 miles all with in you get 125 miles from the lunar

service. they are legit laying it out and they are developing a new rocket to do it. as we have seen in the past space is hard and can they hit the target dates probably not but we'll be o see. >> morgan he hasn't picked his artist friends. >> no. >> we should take a paint brush and get into that and maybe you'll be a good enough artist. >> we could do -- i'll do paint by numbers maybe bedazzling as a artist. >> small chance. >> eye i'll go to a southeast asian beach or something rather than the moon. >> anyway, morgan thank you very much for that now $1 billion, that's the estimate for the price of tariffs on the housing sector in the wake of the current trade war. we'll go behind the numbers. what it means for the housing plans, next.

will it feel like the wheend of a journey?p working, or the beginning of something even better? when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today.

the latest read on home building sentiment is in while the numbers are positive, there are concerns lurking below the service. in washington. >> home building sentiment held steady at 67 on the nahb index anything above 50 is positive. the street was expecting a 1 point drop it was up from a year ago but down from may. the survey was conducted as the threat of new tariffs was rising and that threat is now a reality and has builders facing higher costs. of the 5700 tariffs listed in the tariffs from the trade administration they found 650 products connected to home construction or tools used to build amounts or homes representing $10 billion in goods. which at a 10% tariff puts a

$1.0 billion tariff op house, including appliances and home furnishing processed not great news for the housing market, wilfred. >> certainly not diana thank you very much for bringing that to us now, the first national bank of amazon, that may not be the name of the tech giant's potential bank but its impre members are ready to open accounts details next ♪ ♪ i'm going to be your substitute teacher. don't assume the substitute teacher has nothing to offer... same goes for a neighborhood. don't forget that friendships last longer than any broadway run. mr. president. (laughing) don't settle for your first draft. or your 10th draft. ♪ ♪ you get to create the room where it happens. ♪ ♪ just don't think you have to do it alone. ♪ ♪ the powerful backing of american express. don't live life without it.

the lexus ls 500 & ls 500 h. ♪ take advantage of great offers on the 2018 ls 500. experience amazing at your lexus dealer.

so would you be willing to bank with amazon well 65% of amazon prime customers saided they would sign up for a free online amazon bank account. according to a recent study. 43% of non-amazon prime skpers said they would be willing back in march amazon was in talks to create a checking-like product for its customers. i think it speaks to the fact that consumers really love and trust amazon, right? >> yeah, a lot of the economic life is there already. i think the question of the survey was if it was a 2% cash back type account. sounds like a good deal. >> clearly they have credit cards. amaze. be branded credit cards. i think a checking account a big step further and clearly want to

trust the money is safe. amazon, the valuation, the cash flow is that's a big question. it would need a partnership with a bank. >> jp and others already working together. >> they have a credit card as well that does it for cloebls toll. >> "fast money" starts now thanks, "fast money" starts right now. live from the nasdaq market site overt looking new york sometimes square traders too many tim seymour guy adami. more trouble for tesla, the department of justice probing elon musk's tweets about taking the company private. we'll tell what you it means for the stock, which was down today. plus, the reviews are in for the latest crop of iphones you won't believe what people are saying either. we'll have the phones live on the set and do a "fast money" test as well but first we start with the escalating trade war as the u.s. and china continue to go head to