Rig count at 1 00 p. M. Eastern time. Our road map begins with a big set back for Prime Minister may. Yesterdays snap election ending in the Hung Parliament. What does it mean for the looming brexit talks . Plus, stock futures are pointing to new records as investors shake off that political turmoil in the uk and back here in washington, d. C. And complete vindication, thats the take away from the president on the testimony by comey but the reality may be a bit murkier. Well talk about that. But first, the uk is the lead. Mays conservative party lost the majority after the election. Resulting in a Hung Parliament meaning no party has the 326 seats that are necessary for an outright majority. May had called for the snap election in the hope of strengthening her hand in brexit talks after her meeting with the queen, the Prime Minister spoke about forming a Coalition Government. What the country needs more than ever is certainty. And having secured the largest number of votes and the greatest number of seats in the general election, it is clear that only the conservative and Unionist Party has the legitimacy and ability to provide that certainty by commanding a majority in the house of commons. She had repeatedly said if they lost six seats then corbyn would be Prime Minister and last night she lost 12. Yeah, theresa may or may not be the Prime Minister. If you want certainty you wont get it from her reign. What i think is amazing is that the reaction here, Interest Rates going higher. Not really necessarily one for one with her, but could be a continuation of the bank rally. I have to relate it to fact that i think that people just didnt seem to think outside of britain this is going matter. I find this to be astonishing. I watch wilfred frost every minute, who called this exactly right and he it was a huge amount of credit. I got up in the middle of the night to see what would happen. And nothing. I mean, how could that be this is a major major gaffe by a you know, even just a year ago this was huge. Its in britain, its not even hurting britain. By the way the pound we can say thats a big selloff. I dont regard it as a huge selloff given how seriously she botched this thing. Honestly. I took a poll on twitter this morning. I said biggest unforced error firing comey or calling for snap, snap won 6040. At least in my unscientific poll. You should have added the snap lockup that expires with the floating of the shares. Those who own snap. I am astonished this does not play more of a role and im wondering if something has happened here. A big change in our markets. You often talk about the volatility and how frankly there hasnt been much. I think that brexit and then the firing of comey, these have proven on the to be unbelievable buying opportunities. People are saying im not going to get trapped off of selling. It makes me wonder whether its people at all. Maybe its machine. They dont give a darn about your elections. Do you know theyre looking at whats coming in more powerful than they ever been. The machines have taken over oil to the point that when that thing comes out at 10 30, 10 30 and a nanosecond, because theyre close, Dupont Fabros one deal this morning. Somehow this one, the algorithms say dont Pay Attention to britain. The turmoil in geopolitics is its extraordinary. Yes, it is. What accounts for it . Because you i mean, clearly investors people are also saying im just not its not part of my landscape at this point. I dont even think its complacency. I think its a recognition that the s p do not sell on this anymore. Theres a core group of 35 who do absolutely nothing. No matter what. Because their brain son automatic. Theyre in s p funds. They do nothing. Its like they couldnt do they will not do anything because they have been taught not to do anything. Reminds me out of a note out of goldman they call it faang. Its lower than the average utility or staple stock. Is that not unbelievable . Of course a spelling error we know. They could have used netflix or nvidia. I cant call gary anymore. You cant. But i feel like it is rather extraordinary that theres you had that big day volatility that when you had the firing of comey. A lot of people came on air and said this is it, you have to go. And people have been fighting a rearguard ever since then to get back in the market. I think i mean i was on the panel earlier this week with someone who was talking about the basically the 35 of brain dead people that didnt use that didnt use that term, 35 of the people who would not sell in the event of a thermonuclear war. Okay. Youve got them and youve i dont know what the impassive funds. Something changed since this year began with the algoes that used to be related to oil. Thats no longer the case. The algoes related to the dollar thats no longer the case. It seems like other than in oil where the algoes are serious, that people are just saying lets evaluate this on the stock by stock basis. He does pham, you can do faang in there. I wish i were kidding. Nvidia will be up again today. I have a wrap on nvidia. I was thinking of changing my name to nvidia. Would you change it to the dollar sign . Why cant i be like the ceo, i emailed him i. Thought it was it was that quick. Maybe hes an algorithm masquerading as a man. He might be. Jim, as for politics, i think it was march where you called the High Water Mark in nationalism. Yeah. Thats old. Out of dutch election, then we had macron and now uk. Why a squirrel finds a nut. I felt that the dutch election thoughed that showed that the dutch election even with the overtone of terrorism, nationalism peaked. Why it peaked, people kind of said, you know what . Were this not the way that europe goes. Its not the italy is a concern we dont talk about italy enough. Because they could have an election, dont forget yeah. Concern there. People think there was fascism in hungary, i was there a few years ago, i wouldnt go back because of what im hearing. Budapest is in beautiful. But theyre in jeopardy with the eu. You cant have a one party situation, because of the democracies. So people i dont want to get in trouble with hungary, its a great country, but thats the only country that seems to have gone all in for nationalists. I wonder if that wasnt because that was the horrible scenes from the train stations in hungary and hungary has decided, look, were not going to be that were not going to be as cordial to immigrants. Great country, i had the time of my life. But thats the only country that really went nationalistic in my book. As for volatility, jim, even in the midst of comey yesterday fell below 10. Which is the 16th time this year its gone below 10 which is half of all the occurrences since 1990. Its amazing. I mean, i watch riveted like everyone else in this country and i said, okay, every time he used the word liar i figured maybe wed get a shot down in the futures. What were the futures watching . I dont know snap . Unbelievable. They were not related at all and then they started to go up. I heard this is because pence is coming in and theres a huge rally if he comes in and then the hearings end t futures come back down. Like were watching the hearings, but the market is watching facebook, amazon, netflix, nvidia, broadcom. The market is looking at a couple of stocks and clapping. I made the joke the other day, the buyers of lam search they think its an Animal Health care company. Dont say that. Thats reminiscent livestock thats reminiscent of the late 90s. Thats how i feel. Although theyll have a great earns per share. Name me three companies that does Great Research with animals. The lambs, the poor lambs. They get arthritis, cant get up, thats the end. Theres still lots of buzz surrounding comeys capitol hill testimony yesterday. Nbc news justice correspondent Pete Williams has more. Walk us through the landscape day after the fact. Well, the president showed restraint yesterday probably abiding by the advice of his lawyer not to be tweeting during james comeys testimony which riveted the country, but trump said it was total vindication. Now we understand that his lawyer intends to file two complaints. One with the Justice DepartmentInspector General and the other with the Senate Judiciary committee because they claim that he leaked confidential government documents, namely, his memo in which he described the meeting between himself and the president in which he claims the president asked him to drop the investigation into michael flynn. This was something that the lawyer yesterday sort of hinted at, saying that comey was a leaker. That it was improper. And also saying that the things that comey said at the hearing werent true. Theres been a bit of cherry picking here of course. His lawyer the president s lawyer basically said look at the things that comey said that we agree with. Namely that three times he told the president he wasnt under investigation. But ignore the things that comey said that we disagree with. The president never asked him to drop the Flynn Investigation he said and that the president never demanded loyalty. Never asked him for his loyalty. I dont know frankly what good it will do to ask the Justice DepartmentInspector General to look at this for the simple reason that james comey doesnt work for the Justice Department and didnt when he by his own admission yesterday sent a memo one of the memos he wrote after meeting with the president to a Colombia University law professor whos a former federal prosecutor whom comey used to know in new york and asked him to get it out. He ended up telling a reporter from the New York Times about it. Then everybody found out about mr. Comeys claim about this meeting with flynn. So that seems to be the latest development today. Pete, what is the legal the read on the legality of leaking a memo thats not classified, that you wrote, while you were a private citizen . Well, the only claim that could conceivably be made here is that its a it violates executive privilege. But the problem with it is the white house knew comey was going to testify and chose not to assert the executive privilege. Knowing that the barn door would be opened, no, you cant say that, that puts them on a weaker position. Youre right. I guess it qualifies as a leak. Im not quite sure what a leak is although i spend a lot of time trying to get them. But i guess it just means anything that somebody tells you when the government isnt ready to say it or if its classified or if its investigative or any of those traditional things. This memo doesnt fit in any of those categories. I guess you could claim that because he wrote it when he was in the government its still a government document and he shouldnt have had it at home. But how you ask the Inspector General to do anything about that, the Inspector General has no ability to force anyone to answer their questions if they dont work for the government. Inspectors general in all the departments investigate people who work for the government, not people who didnt work for it. Now their investigations call on them to do it. Comey could say im not going to answer. Remember hes already the subject of an ig investigation for the way he handled the clinton email issue. Yeah. We just want to point out the clinton email issue was another dazzler yesterday did you think that that could be you know, were talking about what happened in that election. Is that just one and done that you make that statement and then it all goes away . Well, i thought the most interesting thing about it is, something we did not know, is that he considered calling for a special counsel because he thought the attorney general was so compromised by the meeting with the tarmac on the tarmac with president clinton. He says that she insisted she refer to the issue as a matter instead of an investigation. He thought that was a strange echo of the term that the Clinton Campaign was using so he says he thought for the sake of appearance he should call for a special counsel, but he didnt because he said i knew we were about to do end the investigation. I knew we wouldnt say there was a crime committed and to call for a special counsel it would make people think aha, theres something there and he thought that was unfair. Amazing. Pete, we appreciate your insights today. Good to see you. Boy, that was Pete Williams in washington. He raised a number of points. Again, i find listening to him, how can we how does it not impact the market . There are more investigations in the air with serious people. There is more lets just face it. Everything you just heard says to me that tax agenda i mean honestly, can you possibly even raise an economic agenda when youre going to have many investigations, so many people in Congress Really consumed an preoccupied . Jpm today reduces their estimate of the tax related stimulus in 2018 from 2018. From 200 billion. Thats what this story is about for us and yet people do not seem to mind. Its extraordinary times. When we come back, pandora getting some good news in the form of an investment. Well explore what that means. Take another look at the premarket this morning. More squawk on the street from post 9 in a minute. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. [ eerie musthe mummy. T ] has returned. You wish to see. What i have seen . You will. When. I. Kill you. [ explosions ] [ intense music ] the mummy. Rated pg13. [ eerie musthe mummy. T ] has returned. You wish to see. What i have seen . You will. When. I. Kill you. [ explosions ] [ intense music ] the mummy. Rated pg13. Welcome back. Shares of pandora moving around a lot this morning after news we first brought you but of course it boons confirmed by the company, sirius xm making a 480 Million Investment in pandora. The company is also selling the ticket fly division for about 200 million so 680 million coming in to pandora. It may need all of it of course to continue to fund the buildout of the Subscription Service. But the Bigger Picture here of course is the back and forth between pandora and sirius thats been going on and on for months. It was a few months ago that we first reported that pandora was finally open to entertaining takeover offers. It employed center view, the Investment Bank in to see if there were any offers out there. The most likely buyer all along had been sirius. But the stock price itself did not help. A year ago this time, they might have been able to sell it for 15 bucks a share to sirius, that was no longer the case. Despite the presence of significant shareholders and activist shareholders such as corvex. They were unable to come anywhere near a price like that for the company. Which again, has been struggling to a certain extent as it has moved into the subscription based service. So a month ago, they signed up a deal to bring in as much as 200 million potentially in capital in the form of converting from kkr. That would have had an 8 coupon and a Conversion Price of 13. 50. This morning 480 million from sirius, a lot more money, a 6 coupon, less there. But get this. The strike price, 10. 50. It comes down by 3 a share. Think of it percentage wise over one month. Really kind of shocking when you think about it. Other things to add here as well. Sirius had offered im told by people familiar with the situation to buy all of the pandora. For 8 a share. And was rejected of course as you might have expected. And hence, end understood with this ended up with this deal which includes three board seats, one of which is the chairmanship. The hope on the part of sirius, it is hoping to help to build toward a future thats not just about overinvesting they believe in the subscription business, but getting its ad business in the right place where i think the belief on the part of sirius is thats an underestimate there and theres poor Capital Allocation by this company. If you get sirius with three board seats out of i think what is it 3 of 9, including that chairmanship which is likely to be held by jim meyer or greg maffei, the current ceo of stand still . I dont know if there is a stand still. Doesnt matter. Why is this stock even up . I dont know. It should be down. Possibly. This ends any possibility of a takeover. This is it. Well, sirius listen, sirius will try to have its Board Members including the chairmanship help to guide the company and put it on a better path. Could be then lets assume that work and the stock price starts to move up, they can exercise, they will own as much as 20 of the company and then like sirius and liberty, like liberty likes do, then they have the option potentially of one point or down the road buying the company. But that not where they are right now. No. I was asked apple repeatedly to both buy sirius and pandora, game, set, match. This is a powerful combination. I think its a brilliant move by maffei. Yeah. They were waiting and waiting and waiting. So smart. Finally getting this thing and investing at the level they did. I dont know for nothing. Its not as though theyre taking risk. 480 million. This is being paid in kind so it accretes up. Theres some risk for them as well. But its a typical liberty d