claims mitch mcconnell let one russian oligarch slide on sanctions for business in his state. welcome to "the lead," i'm jake tapper. and we start with breaking news in the money lead. fears of another esession causing panic on wall street. the dow taking a dramatic tumble. ending the day down more than 700 points at the closing bell. 800 on the chart right there. the huge slide was set off by one single warning experts say, a specific economic indicator that is historically predicted on presession and a measure that flashes a red warning light for the first time since 2005. i want to go to cristina alesci at the stock exchange. how bad was the damage today. >> it was a blood bath. we're down 800 points and even in the final minutes of the closing bell, jake, this is investors sending a very clear signal to president trump that they do not like his ill-planned and so far fruitless trade war

and they are fleeing these risky as -- assets and fleeing stocks and looking for cover in other parts of the market like the bond market and that is causing the phenomenon you just described which is the inverted field and which means it cost more for a borrower to borrow over a shorter amount of time and if you take a look at this chart, recessions have followed each time we've had an inverted yield curve. this is very troubling to the market. it is this rush to safety that has investors particularly concerned and, by the way, investors also digesting the fact that the deal-maker in chief may not be able to get to a deal with china. that is put up paralysis on business from the ceo of a multi-national corporation down to the iowa farmer. they cannot make decisions without knowing where this trade

war is going and they don't know where that is right now, jake. >> christina learna at the new york stock exchange. i want to bring in global economic analyst ranna fara and ron from moody's analytics. the yield curve is what everybody is talking about. every time you see the dip, you see the recession shortly after shaded in yellow. when it drops in 2005 we didn't see a recession for another two years. does that mean this recession, assuming this is actually predictive and correlated, that it might not be in the immediate future? >> that is true. the timing tends to vary but it is always a big predictor. i would look and say that we have a record amount of debt on the books reg now. more debt than before the great financial crisis. there are other indicators blinking red for me. manufacturing and industrial indexes are down in both the u.s. and europe. u.s. consumers who have been pretty robust are actually

starting to look weaker. cutting back credit card balance and scaling back on purchasing gasoline in the middle of the holiday vacation season. so there is all kinds of things leading up to this. and at the end of the day, two big things which is the fact that we're probably not going to get a significant u.s./china trade deal for reasons we can discuss and also the fact that the fed cutting rates simply didn't boy the markts we are used to. we're at the end of ten years of easy money. >> and mark there is the international factors, president trump's on and off trade wave with china and germany moving closer to recession and brexit in the u.k., mark, do you think we're already in a global recession? >> we're pretty close, jake. and i think europe arguably is in recession. it contracted in the second quarter and the italian economy close to recession. so europe is close. and clearly the asian economy is struggling significantly because of the trade war.

global -- asian central banks last week slashed interest rates to get ahead of the slowing economy and then a data dump from china last night and last month they were horrid. the numbers were awful. industrial production growth in china is the weakest in 17 years. retail sales growth is slowing. so if we're not in recession globally, we are close and it will weigh on us here. the u.s. economy is starting to struggle and if the president can't figure out a way to find some kind of arrangement with china pretty soon, we will be in recession. >> ranna, there is a piece in "the washington post" that said the white house doesn't seem to have a plan beyond pressuring the fed to lower rates. what should the president be doing right now other than bashing jerome powell on twitter? >> good question. plan a. just lowering rates is not working. there is no fed plan b. what we really need is a workable trade deal with china.

the chinese have made it very clear that they will come to the table but they're not going to take a deal that is not a deal between equals. unfortunately we have a president that seems constitutionally unable to consider something a win unless he crushes the other side. chinese are not going to accept that and they have drawn a line in the sand and when they do that, they don't back away. >> and mark, when stocks have fallen like today's fall in the past, experts say don't touch your investments, everything ultimately will work out. but if we are headed for a recession, are investors or people who manage the portfolios, retirement accounts for middle income folks, are they expected to sit back and watch? what should people do? >> don't pay attention. for most of us, the market will go up and go down. it will go all around. timing -- timing recessions are very difficult. timing movements in the stock market are even more tough. just don't look. forget about it. obviously if your a baby boomer

like me or close to retirement or in retirement, you should have a long conversation with a professional who thinks about managing money for a living. and they could give you some advice. but for most americans, just ignore it and don't pay attention. >> mark sandy and ranna faroe, thank you. let's chew over this with the experts. the president is watching what is happening on the market and tweeted six tweets on the subject, one said our problem is with the fed. he went in to call jerome powell, quote, clueless jay powell. first of all, we're a long way away from the buck stops here. but is there a plan there beyond tweets? >> it seems like the plan may be to just make sure that there is someone else to blame. if things go south. and right now it is looking like that is going to be jay powell, that he'll -- he may have to kind of bear the brunt of this from the president because of

things -- if things go bad president trump will say things were going well but the fed messed me up because he doesn't want to talk about what is going on with china and how even though he tweeted that trade wars were good and easy to win, that is just not happening right now. and you saw the administration blink this week when they said, oh, we're not going to put 10% tariff on all $300 billion of imports and extra additional imports from china. we're not going to do that because it might hurt consumers and it might affect us which is the opposite of what president has been saying. so he doesn't want to feel that kind of pain in the economy. but there are some things that right now if they can't get that trade deal, he wouldn't be able to put that off. >> and she's right. this is a complete contradiction to what president trump has been saying. that china is the one that pays for all of the tariffs when he acknowledged that he was going to ease up on some because it would hurt american consumers. >> yeah, listen, i'm an eternal optimist. and my wife said it is a genetic

defect. but if there is a real possibility that there is -- they're inching forward and that is part of the reason he also said he wasn't going to put -- i think it was 25% on the tariffs which would have been tough on the economy. there are things that the president can do and i won't panic. i agree, calling a recession is a fool's game as most economists will say. it is a indicator and then -- on the yield. and then the markets dropping, we've had this before and corrections in the market. it doesn't mean we're going to run quickly into a recession. my argument is if the president steps up now, does an infrastructure bill, unemployment is still extremely low. there is a lot of good things to build on. reengage with our european friends on the china issue. i think if you started announcing a few of those things, you could see that this thing could be averted from rolling into the ditch. >> jen psaki, former communications director for the obama white house i want to give you the pleasure of the game we occasionally play here. there is a tweet for it.

there is always a tweet for it. in 2012 president trump tweeted about your former boss. it is monday how many more excuses will obama make today about the economy. again, the president gets blamed no matter what. whether it is fair or not fair. and if this economy is starting to sputter at the very least that is going to be -- voters will hold president trump accountable. >> that is true. and that is a reality no matter who is president. whoever is sitting in the oval office will get the blame or the thanks for where the economy is. look, president trump has been getting credit for the economy of the last three years. that is a continuation of the obama recovery. i think most economists will tell you that. but it is hard to argue that point. i think what mike said is important and this is why it would be great if he had a fully functioning policy team which he doesn't. is that there should be a consideration at this point, what can he do? he could consider what kind of stimulation action and efforts to create jobs and prepare for a return in the economy and get through congress. they don't have a functioning

process and that is a real problem here as well because some of the indicators were beyond china. they were about the housing market, and you've seen them on the housing market and manufacturing. so there are other areas where they should be watching and it is clear they are not. >> listen to peter novarro earlier today. >> the biggest problem we're fighting right now at the white house is the federal reserve interest rate policy. we lost almost a point of growth in q2 simply because the fed had raised interest rates too far, too fast. >> so, again, the blame -- and i'm not saying that the fed plays no role in this, but they're going to need to have more answers and solutions as mike was just suggesting. >> sure, particularly because the president has tried to own the extraordinary soaring stock market. he is tried to make that -- suggest it was because of him. and it wasn't. but the reality is, though, i've been remarkably surprised, we'll

see how long this lasts at how resilient trump voters have been and patient with his policies in iowa and other farm states. so i was just back from a week in iowa reporting talks to republicans and farmers. yes, they're worried about china and tariffs. but they are still sticking with this president. so i think he does have many opportunities here to keep people on his side. but he's not really doing anything except passing blame on to others. it is hard to imagine, though, what congress could do in terms of of a -- a stimulus. they won't pass another tax cut bill. in this divided government, i think the president will have to search for something. but other indicators out there, suv sales are slowing. auto sales are slowing. so there has been this extraordinary eight-year period that is going to change. then that of course could affect his re-election but democrats have been silent on this topic overall in terms of trade and tariffs here. so we'll have to watch ow this plays out but the president hasn't owned this of as yet. passing the buck i'm not sure

will work. >> and i know you said you give more attention to something congressman rogers said, the infrastructure bill that there was talk of at the beginning of the trump presidency, he and chuck schumer could cut a deal, these are deal-makers from new york, democrats want to vote and traditionally infrastructure bills, the transportation budget usually has bipartisan support. but there has been no energy expended toward that. >> well there is a lot of talk, right. it is a joke. a running joke. infrastructure week. but it just never comes together. and it seems like the president, especially with the russia investigation and all of these kind of fights they've had over immigration, there just hasn't been an appetite for them to get together and do what is necessary for infrastructure. there was that one meeting back in -- weeks ago now, maybe months ago and they just never came together and i think that that is one of the things that president trump has missed out on. because he has this opportunity where he can lead the republican

party to where he wants them to go. so if he really wanted an infrastructure bill and he wanted to throw his weight behind that, are they really going to buck him on that? are they really going to fight him on that? but he hasn't done that. >> no, he hasn't. everyone stick around. we have more to talk about. when baby steps qualify as a major development after back-to-back gun horrors, new details on how democrats and republicans are coming together to talk -- talk about gun control. then china seems to be showing the world they could take action at any moment against the people of hong kong. new satellite photos making angry protesters very nervous. stay with us. ♪ boom goes the dynamite, ♪ feels like i'm taking flight. ♪ [sfx: poof] [sfx: squeaking eraser sound effect.] ♪ i am who i wanna be ♪ ♪ who i wanna be ♪ who i wanna be. ♪ i'm a strong individual ♪ feeling that power ♪ i'm so original, ♪ ya sing it louder. ♪ i am, ooo ooo ooo ooo ♪ ehhh ehhh ehhh pre-order and get more.

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president trump has been telling his team he thinks he needs to take a concrete step on this issue. >> we must pass gun violence prevention legislation. every day we lose lives. >> reporter: house speaker nancy pelosi today continuing to put pressure on the president and senate republicans to take up gun control legislation, following last week's two deadly mass shootings. >> so we need to do that. and we need to do it soon. >> reporter: behind the scenes cnn is learning the administration is quietly talking with senate staffers about a bill that includes expanded background checks. a move the president seems to favor. >> i would like to see meaningful background checks. i thinking? will happen. >> reporter: the early talks which a source describes as informational, not substantive, involves staffers for republican senator pat toomey and democrats joe manchin and chris murphy. >> in the end republicans aren't

going to support background checks legislation unless the president supports it. i remain pessimistic that that is how this will play out. >> reporter: with the august recess dragging on, other democrats on capitol hill are also skeptical. one democratic aide saying, i don't feel like they're any more serious than the last ten conversations on guns. >> there is a strong pull -- >> reporter: the president's daughter ivanka trump has been actively involved. having several conversations with lawmakers about gun policy this week. and white house aides are expected to update president trump later this week on any progress from these gun talks. president trump has told his advisers in recent days that he does want to take a concrete step and do something meaningful, not just something that is symbolic, according to people familiar with the matter. so, jake, it remains to be seen if that will actually happen. >> pamela brown traveling with the president in new jersey. thanks so much. the democrat's best chances of winning control of the senate could come down to three

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in our 2020 lead, senator kamala harris of california today rolled out a new proposal for gun legislation which she said will keep guns out of the hands of potential domestic terrorism following the

shootings in el paso and dayton, m.j. lee reports from a heavy campaign push in iowa, senator elizabeth warren is making her case to voters one day ahead of a visit by president trump. >> dream big, fight hard. >> reporter: elizabeth warren hitting the campaign trail in new hampshire today. making her 13th trip to the granite state this year. >> what happens in 2020 won't just determine the direction of our country, for the next four years or the next eight years, this is going to be the direction of our country for generations to come. >> reporter: warren's visit comes aday ahead of the president trump rally in the state when he lost in 2016 by fewer than 3,000 votes. in a facebook q&a tuesday the senator was asked about the 1994 crim bill which joe biden helped write and critics say led to mass incarceration. she did not name him by name but made clear her disapproval. >> it was wrong and it just

needs to be changed and rolled back and repealed. >> reporter: warren and other 2020 democrats keeping focus on gun violence more than a week since the matt shootings in el paso and dayton that left por than 30 people dead. >> it just might want to know before someone can buy a lethal weapon, you just might want to know if they've been found by a court to be a danger to themselves or other. >> reporter: kamala harris unveiling a plan to con front domestic terror calling for a major online gun shop to perform background checks and a -- allowing law enforcement to take away gun. and calling out the racist and devicist rhetoric by airing this on fox news in bedminster, new jersey, where the president is spending time at his golf club. >> as we saw in el paso, american were killed because you are still racist. innocent people were shot down because they look different from

you. because they look like me. >> reporter: now, jake, warren just spoke with reporters here in new hampshire and she showed real exasperation at the fact that congress has not taken real action on gun violence, blaming the republicans in her own chamber for refusing to get behind background checks and said this is a clear example for her on why she would like to get rid of the senate filibuster. >> thank you so much. let's chew over this. and zeleny, democrats have a much better shot of getting gun legislation passed if they win back the senate so there is a move from democrats to try to convince a few of the candidates running for president to drop out and run for senate. hickenlooper in colorado, beto o'rourke in texas. and bullock in montana. is there any possibility that might happen. >> for one of the three, possibly. and that might be john hickenlooper, the former governor of colorado and mayor of denver and presidential candidate and struggling. we're told he has had conversations, in fact right

after the debate in detroit, that friday he had conversations with chuck schumer, the democratic leader, they've been talking to him a lot. he's had conversations with michael bennet about what is it like in the senate. so he, i'm told, is thinking about it. still not thrilled about being a senator. but the others have insisted they will not do this. steve bullock said he doesn't want to be a senator and beto o'rourke is having a speech tomorrow and going forward with his presidential campaign but it does raises the question, the chances are not as strong as presidential candidates, why not fight for the senate. a win in montana or texas is certainly not guaranteed for a democrat. but beto o'rourke we're told is not going to do it. >> and there is a houston chronicle editorial aimed at beto o'rourke, former congressman from the el paso area. it says beto, if your listening, come home. drop out of the race for president and come back to texas to run for senator and the chances of winning the race you are in now small and texas needs

you. >> i'm sure chuck schumer has it framed in his office. i thi i think beto o'rourke had a best week in the face of a tragedy and we saw the magic of beto o'rourke that we saw during the campaign. the deadline is not until september so he does have some time. although he'll have to raise a significant amount of money and get a campaign going, he could transfer about $5 million if he decides to drop out. that is certainly a good sign. so he said he's not doing it now. i will be interested to see how much pressure democrats put on him if he continues to not really have movement in the polls. >> and i want to play a little bit more of that ad that julian castro took out on fox to air specifically in new jersey where president trump is vacationing, talking to the president about domestic terror and prejudice. >> president trump, you refer to countries as [ bleep ] holes and you urged american congresswomen to go back to where they came from, you called grants rapists,

as we saw in el paso, americans were killed because you still fire racists. innocent people were shot down because they look different from you. because they look like me. >> we can't factually say that americans were killed because he stoked the fire of racist, you but that is an interpretation and opinion. aimed at voters and not aimed at president trump. >> i think look at the language president trump is using and saying this is having an impact in the country and president trump has obviously been upset about this and upset about being called a racist and he's trying to push back on that and push back on that characterization and so it may also be aimed at getting trump to respond and to respond to castro in particular about what he's saying. and but just raising these issues, because i was at that center back rally where they chanted send her back. this is something that the president before the shootings

was talking about, baltimore being rat infested and all of the things and no human being would want to live there. he's bringing this kind of specter of race into the conversation. and so this is what julian castro is highlighting. >> a lot of democrats today, including several of the ones we've spoken about already are attacking your former colleague republican congressman steve king for comments that steve king made in which he was trying to defend his position in not believing in exceptions on a ban on abortion for incest and rape. this is how he tried to explain himself. >> -- back through all of the family trees an pull those people out that were products of rape and incest, whether there will be any population in the world left if we did that, considering all of the warz and the rape that has taken place and whatever happens -- [ inaudible ] part of the product of that. >> mayor pete buttigieg

responded on the campaign trail a few minutes ago. >> you would think it would be pretty easy to come out against rape an incest, then again you would think it would be pretty easy to come out against white nationalism. >> and kirsten gillibrand said steve king, you are a disgrace, resign. why does he say things like that? >> you're asking me. >> he was a colleague of yours. i don't understand. he's literally defending rape and incest, well it produced people. >> this is not the first time that congressman king has inserted his foot in his mouth. and it appears that maybe he got both of them in his mouth on this particular one. >> and a few other people's i think. >> and he doesn't speak for republicans. and i understand this is a heightened political season and everybody wants a pound of flesh from the other team. but, listen, he should be addressed for the comments he made. he should correct his comments but we shouldn't drag this across the country as one group of americans who believes --

certain things are bad and horrible and racist people and the other ones are not. actually i think this whole racism height of campaigning on both sides is dangerous for the country. this takes a long time to heal. and if every conversation is only about race and insinuating race and racism, from both sides by the way, i'm telling you, we're going to have a problem getting back to normalcy after the 2020 election. i hope both parties cease and desist and i do think the president needs to change his language and i hope he comes out very clearly and rejekts -- rejects white supremacy and helps the fbi get domestic terrorism tools they've been asking for. there are important things. and by the way, this is really interesting on the racism problem in america, they're not seeing a swelling of people who are identifying as what they would call white nationalists, they're having an increase in people radicalizing from the white supremacist movement into

violence. >> the same number, but they are taking action. >> they're getting radicalized. and if you talk to law enforcement, they do think there are ways to do it but it is not necessarily a law enforcement but you have to get into the stream earlier and we're not talking about that and the reason is 2020 election. >> and we'll talk more about it and we have on the show and continue to do so and bring you back to do so. while mitch mcconnell was trying to lift sanctions against russia a new report said his state was getting economic help from a russian company and now nancy pelosi is calling mcconnell the nickname he hates so much. stay with us.

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now we're back with the politics lead, speaker pelosi

taking the step of referring to the senate majority leader as, quote, moscow mitch, one senator just called shameless. charge seems to have struck a nerve with the thick-skinned senator but today he does face new questions about whether a back room deal let one russian company with ties to the kremlin off the hook of economic sanctions to a company that made a major investment in a new mill in mitch mcconnell's commonwealth of kentucky according to "the washington post." tom foreman filed this report. >> reporter: aluminum for airplanes and cars and consume goods and a lot of work in a tiny corner of kentucky hit hard by the opioid crisis. that was the promise as officials broke ground for a new aluminum mill. >> that will create up to 1,500 jobs right next to ashland, kentucky. >> reporter: at well over $1 billion, the project needed loads of money.

so the washington post said the russians came calling in the form of rue sal, a massive aluminum company ready to kick in $200 million. but there was a hitch. it was partially owned by oleg deripaska, tried to russian president vladimir putin. u.s. sanctions forbade doing -- business with the russians in response to meddling in the u.s. election and that is where the post said kentucky's senior senator republican mitch mcconnell enters the scene. >> i was accused of aiding and abetting the very man i've singled out as an adversary and opposed tor nearly 20 years, vladimir putin. >> reporter: the "post" article and others suggest precisely that, pointing out that former aides of mcconnell were lobbying on behalf of the aluminum plant even as the senate majority leader was fighting to lift the sanctions on russia. mcconnell said he had no idea the russians were involved in the kentucky deal. the white house wanted the

sanctions lifted. >> that was how i voted, the reason i voted the way i did. >> reporter: the president's response to questions about the timing and appearance of it all -- >> i think "the washington post" is a russian asset by comparison. mitch mcconnell loves our country. >> reporter: still mcconnell has picked up a nickname among democrats already frustrated by him killing so many of the proposals. >> moscow mitch says that he is the grim reaper. >> reporter: the "post" said mcconnell wants to improve election security, but his opposition to legislation along those lines means that nickname won't go away soon. >> cnn reached out to mitch mcconnell's office and he insisted this is a bunch of innuendo and there is no proof, he has done nothing to help the russians but it is so clear that moscow mitch thing gets so far under his -- his skin you could absolutely bet your house he's going to hear from the house so much more. >> unusual for the speaker of the house say that.

>> very unusual. but you could tell how much it wrankles him. satellite images above a stadium show players an fans but not these. we're live in china with a look of what is in side that is worrying angry protesters. stay with us. as so frustrating. my skin... it was embarrassing. my joints... they hurt. the pain and swelling. the tenderness. the psoriasis. i had to find something that worked on all of this. i found cosentyx. now, watch me. real people with active psoriatic arthritis are getting real relief with cosentyx. it's a different kind of targeted biologic. cosentyx treats more than just the joint pain of psoriatic arthritis. it even helps stop further joint damage. don't use if you're allergic to cosentyx. before starting, get checked for tuberculosis. an increased risk of infections and lowered ability to fight them may occur. tell your doctor about an infection or symptoms. if your inflammatory bowel disease symptoms develop or worsen, or if you've had a vaccine or plan to.

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in our world lead now, chinese para military units lining up with riot shields and batons at the ready miles from the hong kong border sending a message china is ready to respond to protests in hong kong spark the by the proposed extradition law. matt rivers is live near the

china/hong kong border. what is the official explanation for being there. >> reporter: we asked an officer trying to prevent us from filming the images and he didn't answer but i think the answer is quite clear. in public statement from the chinese state media they drilled home the message that the forces are legally allowed to cross the bridge behind me and enter hong kong if beijing decided to do so and seeing the troops so close to the border, that is a tangible result of the public policy. to be clear, we've seen no actual signs there is a deployment imminent, a u.s. defense official tells cnn there is no deployment imminent. but that could change and the fact that these forces are here shows you how seriously beijing is taking the protests which we saw more protests today. we saw more teargas on the streets of hong kong and that comes two days after hong kong international airport two day in a row was basically shut down by these protests. so there is a lot of bad reasons

for beijing to go into hong kong. it could be disastrous on a number of different fronts but the fact is these forces are here and giving beijing the opportunity to send in troops if they choose to do so. >> matt rivers near the border. retired general joseph o tell roins me now, the former commander of central command and oversaw all operations in the middle east until he stepped down in march. >> it is good to be here, jake. >> so a lot of people think that china is the biggest threat to the united states right now. i know that is not your area of expertise, the pacific. what do you worry about as somebody who was head of sent com, what is your biggest fear. >> we have to take seriously the threat that iran poses not just to the united states but to other regional partners in the middle east. so that is one of the areas that i spent quite a bit of time focused on as the cent com

commander and think about now. >> do you think it is a mistake and this is policy and you carry out orders and don't set them, do you think it was a mistake to withdraw from the iran deal or do you see a wisdom in that. >> i think i'm on record here of associating myself with the secretary of defense at the time that we should have stayed in the agreement. but that is the decision of the president so we carry out the policy. >> i want to ask you about isis, because he said the president did not consult you before announcing that the u.s. would withdraw troops from syria in december. a pentagon report just released says that isis is now resurging in syria, not in terms of the caliphate or the land but in terms of man power and ability. do you think it was a mistake? were your -- did the president trump make a mistake announcing the withdraw of troops? >> i won't make a determination on whether he made a mistake or not. with the organizations, we do have to keep pressure on them.

we have learned this for the last 17 or 18 years as we confront these terrorist organizations. it is not enough just to focus on military operations and let them go. we have to keep constant pressure on them and it would -- it was my belief that we needed to continue to keep pressure on an organization like isis to ensure it can't resurge and come back. >> what do you say to americans who say that is just the kind of thing i would expect to hear from a general and they believe in these forever wars, that is the term that critics use, forever wars where we're constantly fighting for generations in iraq, syria in afghanistan, they never want to end. >> we didn't choose to do this. isis presented the threat to us. in syria and iraq we had to respond. so our mission is to -- our mission at the time was to defeat the caliphate and that is where we were focused on and defeating the caliphate isn't just military operations, it is about keeping continued pressure on them so they can't resurge. >> i want to ask you, you were previously the head of special

operations command which included overseeing navy s.e.a.l.s and there have been high-profile scandals, and an investigation found them allegedly abusing cocaine and a team sent home over allegations of sexual assault and the general in charge has ordered a review. what is going on? does it have to do with the pressure of the united states being at war for so long and special operators, navy s.e.a.l.s and green berets having to do so much of the heavy lifting? >> i think the actions taken by the commander are absolutely appropriate looking into this and trying to determine. they may determine that the increased op tempo over a number of years has potentially contributed to this. but really this is about the character, about the -- the organizations coming in and really focusing in on the job that they have. and staying focused on that and not trying to get off on the other areas. >> okay. general vottel, thank you so much for your service.

we appreciate it. good to see you. one of jeffrey epstein's victims is not stopping her from trying to get justice. what she did that could expose epstein evil web. stay with us. iceline working with top airlines to turn their unsold seats into amazing deals, family reunion attendance is up. we're all related! yeah, i see it. and because priceline offers great deals by comparing thousands of prices in real time, sports fans are seeing more away games. various: yeah-h-h! is that safe? oh, y... ahh! not at all. no, ma'am. nope. and more people than ever are enjoying romantic getaways. (romantic music) that's gross priceline. every trip is a big deal. and i don't add trup the years.s. but what i do count on... is boost® delicious boost® high protein nutritional drink has 20 grams of protein, along with 26 essential vitamins and minerals. boost® high protein. be up for life.

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jennifer araoz claims he stole her self worth. and the guards that were supposed to be watching epstein in jail had not checked on him for three hours before he killed himself. evan perez, this lawsuit describes a web of people who were allegedly involved in recruiting young girls and facilitating exploitation and rape. >> that is right, jake. jennifer araoz in her lawsuit said that epstein raped her in 2014, 2015. this is back several years ago. and that he had the help of not only ghislaine maxwell who worked for epstein and was allegedly his madam but other people not identified in the lawsuit as -- they just named as recruiter, secretary and maid. and essentially identified as jane does. now according to the lawsuit, these are people key to having epstein recruit women or young

girls rather, including jennifer araoz when it was well-known he was trying to do these things. so the lawsuit here is against epstein estate as well as against the other people who allegedly were his helpers in carrying out this sex trafficking ring. >> and aside from the lawsuit, the justice department is also -- they say they're going to go after epstein's allege co-conspirators, where do those cases stand? >> that is the big focus now of the justice department. it is no doubt, jake, that the fact that epstein is dead is a big blow to this investigation. but you saw the fbi at epstein's estate on his island in the virgin islands and you can tell from talking to people at the justice department is that they are in tent on trying to figure out any way they can to bring charges against anybody who was helping epstein. look, the prosecutors and everyone believes here that epstein was a rich guy who

couldn't have carried out this level of crimes without the help of a lot of people who knew what he was doing. >> and, evan, on the reporting by the "new york times" the guards were supposed to check on epstein every 30 minutes. so what happened? how was he able to commit suicide apparently? >> right. exactly. because the unit that -- where epstein was housed is especially designed for you not to be able to do this and so one of the things that the fbi is still trying to figure out, jake, is whether the people were sleeping, whether they were doing something else. there is very little video evidence of exactly what was going on there and so that is one of the big concerns. the justice department is not even able to get basic details of what happened on saturday, four days later. so there is still a lot of big questions for the fbi to figure out here. >> the attorney general bill barr saying he was angry about this but of course he is the one ultimately who supervised the bureau of prisons. >> exactly. >> thank you so much.

follow me on facebook, instagram and twitter at jake tapper and tweet the show at the lead. our coverage on cnn continues now. thanks for watching. we'll see you tomorrow. happening now, recession fears. the stock market nosedives after new signs point to a looming recession brought on by president trump's trade war. is the president about to lose his best argument for re-election? blaming his team. as the markets plunge, the president takes to twitter keeping blame on the man he appointed to head the federal reserve jerome powell. is the president undermining confidence in his economic team. lack of action. we're learning about behind the scenes talks among white house and senate staffers about expanding background checks for gun buyers. but after the mass shootings in el paso and dayton, we're also hearing urgent demands for quick reaction. this hour i'll speak with two democratic presidential candidates including