2. 145 overnightin asia, look at whats been happening. You can see the nikkei closed down by a quarter of a percentage point the hang seng off by 1. 2 . The shanghai was flat. Lets look at whats happening in the european markets in early trading. At this point there are red arrows across the board there as well biggest decliner is the cac, which is down by 1 . The ftse and dax are off by 0. 8 when it comes to currencies. You will see right now the dollar is up across the board. Euro at 1. 1163 crude oil prices which were down 3. 7 yesterday, the lowest settlement weve seen since november 14th, you can see this morning down once again. Another 11 cents to 44. 62. We want to bring you an update on the terrible shooting that took place yesterday. Republican congressman Steve Scalise is in Critical Condition this morning after he was shot by a gunman yesterday. Squawk was on while this happened the congressman was shot in the hip, underwent surgery at Medstar Washington Hospital Center a statement says scalise will require further operations a congressional staffer a tyson foods lobbyist and two Capitol Police officers were also wounded. James hodgkinson of illinois was shot and killed by Capitol Police he expressed outrage about conservative politics and was said to be distraught by President Trumps electoral victory. He volunteered on Bernie Sanders 2016 president ial campaign here is senator sanders on the senate floor yesterday i have just been informed that the alleged shooter at the republican baseball practice this morning is someone who apparently volunteered on my president ial campaign. I am sickened by this despicable act and let me be as clear as i can be violence of any kind is unacceptable in our society. I condemn this action in the strongest possible terms after the shooting, President Trump called for unity we can all agree that we are blessed to be americans. That our children deserve to grow up in a nation of safety and peace and that we are strongest when we are unified. And when we Work Together for the common good. The president visited congressman scalise in the hospital last night. Democrats and republicans decided to play the congressional baseball game tonight in a show of unity and strength we want to talk about our top political story this morning. The Washington Post reporting that President Trump being investigated by special Counsel Robert Mueller for possible obstruction of justice eamonafter javers has more on the story in the Washington Post getting the attention of all of official washington last night when they posted it online let me bring you some of the highlights of their reporting. Theyre suggesting that the investigation into obstruction of justice by President Trump began days after the former fbi director, james comey, was fired by the president of the United States theyre suggesting that the director of national intelligence, dan coates, th nsa director, mike rogers and Richard Ledgett have agreed to be interviewed by muellers investigators. They are looking into evidence of Possibility Financial crimes among trumps associates the white house referring all questions russia related to the president s personal attorney. We have a statement here from the spokesman for the personal attorney who said this the fbi leak of information regarding the president is outrageous, inexcusable and illegal. Its not clear why the president s attorney thinks that this leak necessarily came from the fbi in this case thats not clear from the Washington Post story where the information originally came from nonetheless the president s attorney blaming the fbi for a leak in the situation. It was clear as of last week that this was likely to be the direction that the investigation was going when james comey testified up on capitol hill he suggested that mueller would have to get into the question of president ial obstruction of justice. Heres what he said in the testimony last week. Do you believe this will arise to obstruction of justice . I dont know. Thats bob muellers job to sort that out so comey suggesting that mueller would be the guy to sort it out and he is, in fact, sorting it out. Well wait and see where this goes, whether or not the president will have to testify and whether the white house will have a statement on this throughout the day today thank you for that. Joining us now, well continue this conversation what was that go back. Go back there. There you go thats you. Eamon, you still there . Im still here. So, yeah, i its unsettling when you hear, my god, hes going to do it but you think about the sound bite you played f youre going to have mueller do something, what else will he look at if hes not looking at that i wasnt surprised by this. No. Still ugh. We go back to a land deal ending with a stained blue dress. So, its just it goes like this theoretically, this is the worry. These investigations can have a lot of tentacles this is like the main part of it because you knew this would happen now the financial dealings of all of his associates . Thats kind of new it is, though if youre looking into russian interference into the u. S. Election and possible collusion, you would be looking at the financial piece of that. Did money change hands would people in essence bribed by the International Financial deals to cooperate in the investigation or rewarded for what ever they did by the russians that is one avenue you would have to go down. The special counsel in this case is different than in the 90s, hes more constrained, not as independent. They tried to rein it in a little well see how much that succeeds well talk to a gentleman now, but i was reading certain people, how stunning this supposedly is. Stunning they got it underlined the president with ledgett. The president questioned the voracity talking about while ledget it was still in office. He documented a phone call that mr. Rogers, the nsa director had with mr. Trump where the president questioned the voracity of the Intelligence Communitys judgment that russin tried to persuade mr. Rogers that there was no collusion. It all depends on if the president knew there was collusion. If he thinks or knows there wasnt any whatsoever, thats what hes hearing from the nsa, the people involved with it, to say why dont you say theres no collusion . Why dont you come out and say youre not seeing anything i dont know if thats not telling them to end the investigation or whether its just saying, look, theres no theres nothing going on here. Why dont you say it is that a smoking gun . I dont know depends on whether theres actual collusion in the first place. It does absolutely the question here, the legal jeopardy here for the president is that we have another case of an intelligence official in l ledgett who was writing down his interactions with the president. People are documenting these conversations because of some sense that this may come back up again. There may be other memos throughout the Intelligence Community that could be damaging to the president we have to wait and see what they find ultimately and whether or not theres a pattern of behavior here. Im told by people that one of the things investigator also want to do is look at what other affirmative steps the president did or did not take in terms of obstruction. Did he tell people not to talk to the special counsel, destroy documents, withhold information. All of that. Let me pose a hypothetical, and well ask john malcolm about this its been a cliche its the cover up, not the crime. Thats from watergate. There had been a crime, that was a breakin it was minor i dont know if it was minor it was a break in. But lets say theres no crime at all yet there is some type of obstruction. I dont know its weird its weird then you get to a situation you will have a judgment call by the special counsel. Ultimately by in this case the republicans who are in control on capitol hill of who thats high crimes and misdameaner miss d misdemeanors in their view what if they did that but theres no initial charime you covering up but there was obstruction. Its still illegal. Give me the man, find me the time ill find the crime plenty of people think the crime trump committed was being elected president. So there are people i interviewed jeb bush in miami earlier this week in miami. I asked him about this his take is that this was not obstruction of justice that what the president did does not amount to a crime, but he feels its inappropriate for the president to be having these conversations with all these officials. Lets go forward now. John malcolm of the Heritage Foundation is with us. Former Deputy Assistant attorney general. I see that thing in your ear so you heard sorry no, i mean i know you heard the conversation yes i was wondering whether there are salient points there that you agree with or disagree with or can add to. He made a lot of salient points obstruction of justice is a separate crime in the same way that if someone were conducting an investigation into anything, and somebody was embarrassed and wanted it to go away and you lied to an agent who was conducting the case, you could be charged with making a false statement to an agent. So i agree it is a separate crime. I was struck by your use of a quote by lavernte barea, if you give me the man, ill find you the crime. If you have a prosecutor with a broad mandate, and they keep turning over rocks, they can come up with something i worked in an independent counsels office for a while, so i know what that is like im not surprised theres an investigation going on this began very shortly after jim comey was fired. And bob mueller has been given a broad mandate to look into all things russian the bit about going to examine the financial dealings of trump associat associates thats puzzling to me. You poz ssited, maybe he was brd or maybe people were extorted. They were aware of financial impropriety, and the russians say do this with us or well out your financial deals i wish you wouldnt have outed me on where i got that quote. Now i could be under investigation. Im like thats a despicable lie. Its not true. Who did you say stalin the head of his secret police jour youre in trouble now. I am. Let me ask you this when i when i first saw it, i was like youll find democrats and republicans everywhere so mueller picks all these democrats to staff up on he is also very close to comey as far as friends. I said, well, hes an honorable man. Im sure bipartisan response, when he was selected was positive but then again i started thinking, if you really i dont know what his opinion of donald trump is. If he has the same opinion as some of these other people at this point, is it possible he could be looking for something rather than just trying to get to the bottom of the russian thing. Key be looki could he be looking for the crime to fit the man lets hope not. Hes got a great reputation. He has to be close because he dealt with comey every day when he was dock threat assessments and mueller was fbi director i heard a number of people whom he brought into the team have contributed heavily to democrats. Im not looking to impugn their integrity. But if they were investigating barack obama, and they filled an Investigative Team with people who contributed heavily to republicans, or if they were looking into donald trump and they staffed the team with people who contributed heavily to republicans, people on the other side of the political aisle may complain about this. Whatever happens at the end of this investigation, it must be fair and appear to be fair to the american public. So he needs to be careful about who he picks on his team and needs to be careful that he keeps an arms length distance from jim comey he did a good job digs himself yesterday by announcing he was aleaker does it appear to be fair to you looking at who is surrounding mueller . They have michael dreeden, andrew weissman. So youre not concerned well see how he conducts himself. I have a lot of faith in bob muell mueller. Just because an investigation has begun, were a long way from charges being leveled or sustained. John is with the Heritage Foundation the donations thing to me is less interesting, only because i look and say donald trump, jared kushner, cgary cohn all made donations to democrats its all complicated so anyone can make a mistake is what youre saying. John, thank you. We have to go. Theres more to talk about but we have three hours. Just wont be with you great to be with you. Comingup, when we return, my reaction to what joe just said and reaction to the fed rate hike and hawkish outlook. Well talk Market Strategy after the break. A look at u. S. Equity futures at this hour. The dow looks to open down off about 80 points. And later, we will talk to the ceo of a Company Making security robots being used in malls and on qualcomm and ubers corn pratt campuses. We have one there. Well talk about it and show you more are we going to launch that thing . Good morning. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. E trades powerful trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade welcome back the bank of englands latest Rate Decision is due back at 7 00 a. M. Eastern time in the United States weekly jobless claims may import prices and the june philly fed survey at 8 30 eastern time at 9 15, well get may industrial production. At 10 00, the numbers keep coming, the monthly survey by the National Association of Home Builders back to the markets. Under a bit of pressure. Joining us now is kathy jones, chief fixed income strategist for Charles Schwab and company and lou breen drw Trading Group specialist lou, after the fed announced it was raising rates yesterday. The markets wobbled a bit but closed higher. This morning things are under pressure what do you think happened i think the pressure this morning is as much as there is, were not down a half percent or so 70 points on the dow, 14 on the s p. So its not nothing, but nothing significant yet. I think that had more to do with trump and mueller than the fed the one interesting thing with the fed is that they were a little less concerned with the recent decline on the core inflation measures than i would have thought they said they will keep an eye on it. Janet yellen was very willing to look past it in her press conference the tenyear note is not thats a mixed message that were getting. The fed showing themselves more hawkish, but the tenyear having none of it because inflation and Inflation Expectations is the key to the tenyear note right now were reversing that whole trump inflation trade that existed since the election and the fed just put fuel on that fire. Lets talk more about that. Its stunning to see the fed raise rates and watch the tenyear note move to 2. 10 . Thats the lowest level since november its not unusual for the yield curve to flatten when the fed raises rates theyve been pretty aggressive now. That was a fairly hawkish rate hike in terms of the rhetoric surrounding it as theyre raising rates when inflation is well below the target and has been below for five years, the market will interpret it as no room for inflation to move up here. So the market is not buying the fed story that unemployment will drive rages up and going to drive inflation up is it reason to worry i think if they continue to move fairly aggressively, it would be reason to worry in addition to the rate hikes now, and the flattening of the yield curve to the flattest its been almost the flattest its been in the cycle, well have the Balance Sheet to deal with thats a form of tightening as well as they take some of that extra stimulus out of the market its a lot to deal with. Not that its a huge surprise watching these things, hearing these things, but why is the market just now realizing that thats the case . Ive been surprised by how calm things have been heading into this the bond market has been on this for quite some time bond has. If you look at the Inflation Expectations embedded in the t. I. P. S. Market, the flattening of the yield curve, those have been rolling over for several months really since probably february or march i think the bond market has been on top of this for quite some time lou, can the bond market and the stock market both be right what do you think . To a large degree they have the tenyear note even though theyre signaling Different Things the tenyear note at 2. 14 weve been falling for generations on the yield there the stock market has gone up by four times yeah they both can be right its almost telling the same story, the low inflation and the fed hikes are not going to affect the long end of the market, which the fed has much less control over now than it used to. The stock market has gone up without Strong Economy and for several years. This last sevenyear period during which the stocks have gone up by 4 times, the gdp has been one of the most the smallest gains over that period of time in the last 60 years that has not bothered the stock market can something bother the stock market i would think so it just makes sens