been reliably red for three decades. but balderson's team says he was able to hold his own and do well enough to eke out a win. and he's paid special thanks to president trump. >> i'd like to thank president trump. america is on the right path, and we're going to keep it going that way. >> reporter: again, this was a race that too close to comfort for many republicans, and it's a race that's soon to be repeated. both candidates will face each other again come november. >> jason carol reporting there. well, democrat danny o'connor was up beat when he spoke to his supporters late tuesday, and he took a swipe at president trump. >> we made our case for change. we're going to make that case tomorrow. we're not stopping now. tomorrow we rest, and then we keep fighting through to A recap of the day's news. gets checked. 8,500 votes roughly still to be counted and sorted out. the secretary of state says 5,048 outstanding absentee ballots, 3,500 provisional ballots. the question is does it change this? in most elections it does not. these tend to stand. but this one is pretty close. 1,766 votes. the republicans will be breathing a sigh of relief tonight but the lawyers, the election lawyers will be involved tomorrow. >> bill, always great to have you on the show. of course we're covering key races in five states but the major contest is the ohio special election in the congressional 12th district where republican troy balderson fought a very tight race in a seat that should have been safe for republicans. remaining 8,400 and some ballots. the absentee and provisional ballots would have to be pretty overwhelmingly for o'connor for him to make up that margin. so i wouldn't say it's impossible, but it's going to be difficult for o'connor to win. but in any case they're going to fight again because they're both on the ballot in november. the difference is this. in november if balderson is the incumbent, he'll have the advantage. incumbents do very well in special elections. >> reminder supporters this will be fought again in november, and this is what president trump tweeted. after my speech on saturday night there was a big turn for the better. now troy wins a great victory during a very tough time of the year for voting. he will win big in november. so, bill, was this a great victory as the president suggests, and can mr. trump take all the credit for balderson's numbers improving? >> not all the credit. maybe a little. but that's all balderson really needed. when he endorsed balderson, and we've seen this happen in several races across the country, there is a trump effect. he has a very loyal base. it's a majority of the republican party. when he endorses a candidate, wave seen it again and again and we saw it today in several states, it drives out the republican base, the conservative base that are loyal to trump they come out and they basically act upon his direction. in this case they voted as he suggested for mr. balderson. >> and would you say the ohio special election was a referendum on the trump presidency as some have suggested? >> not entirely, no. because the democrat didn't make trump an issue. he knew that it's a republican district and that trump is very popular in that district and voted for him by 11 points. so the democrat did not run on the issue of donald trump. he ran on the issue of medicare, on the issue of health care. he talked about inequality. he talked about a lot of things but not donald trump because he knew trump had a lot of appeal among voters in that district. >> bill, i want to look at some numbers. let's look at what outside groups spent. more than $5 million was spent on the republican candidate while around $1 million on the democratic candidate. what does that tell you? >> what happened in that district was that spending among republicans certainly was primarily by outside groups. the democrat and the republican, it democrat actually raised more money for his own campaign than the republican did. the democrat had a lot of volunteers, had a lot of people who were sending in small amounts of money, but there were huge interest groups, independent spending committees not controlled by the campaign that spent money on behalf of the republican candidate. we're going to see this again and again all over the country. it's really nationalizing american politics. every race, everywhere is going to be a national contest about donald trump. >> bill snyder, always great to get your analysis. there is another nail-biter right now in the republican primary in kansas, another trump backed candidate chris kobach is neck and neck with jeff colyer. you may remember donald trump picked kobach to investigate nationwide claims of voter fraud, but that commission found noeds of that. either kobach or colyer will face laura kelly in november. and in missouri republican state attorney general josh hawley will face two-term incumbent claire mccaskill in november, and mccaskill could face an uphill battle in missouri. and in michigan cnn projects gretchen whitmer will be the candidate for governor. whitmer will face the republican attorney general bill scutte in the november election. the race is too close to call, but if she prevails she will run unopposed to replace former representative john con yryers. an extra marital affair and admissions of tax evasion. faces a grueling cross-examination, that is next. plus will president trump and the north korean leader meet for a second summit? why the u.s. national security advisor now says it is a possibility. and with new u.s. sanctions in effect president trump issues a warning to anyone thinking of doing business with iran. we're back in just a moment. don't go anywhere. you've tried moisturizer after moisturizer but there's one... that blows them all out of the water. hydro boost water gel from neutrogena®. with hyaluronic acid it goes beneath the surface to plump skin cells from within and lock in hydration leaving skin so 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sense of adventure. i set off on a new life, a million miles away. i'm heidi choiniere, and this is my ancestry story. now with over 10 billion historical records, discover your story. get started for free at ancestry.com trump in a speech to supporters just a few hours ago. democrat danny o'connor says he will keep fight. another big story we're following, the correct of the prosecution's witness came under attack in court tuesday. rick gates was a deputy and now testifying against the former trump campaign chairman. >> reporter: back on the stand admitting during a harsh cross examination to having an extra marital affair a decade ago but denying accusations by paul manafort's lawyer he was embezzling money from manafort in order to fund his affair. and what the defense referred to as a secret life in london elsewhere. after two weeks after donald trump's election paul manafort recommended that his banker, stephen cox become secretary. he detailed how broke he was when he joined the trump campaign in march 2016 working at the time for no salary. he said his consulting firm had no clients there and was trying to secure a contract in ukraine. manafort was clearly frustrated, wtf manafort wrote to gates. how can i be blind-sided like this, manafort says. gates admitted that he also supplied false information to banks in order to help manafort secure bank loans. gates testified that manafort made more than $5 million between 2011 and 2012. doing consulting work for a ukrainian billionaire. gates went into detail about how shell companies were used to move money into hidden accounts in cypress. in one instance according to gates a payment supported lobbying in the united states. gates stated that manafort reported some of the payments to u.s. tax officials as loans, though they were in fact income. adding that manafort was quote trying to decrease his taxable income. prosecutors demonstrated that manafort directed these activities through e-mails. there were hundreds of these, gates said in court. adding quote, typical practice was mr. manafort would send me a list of wired requests. gates admitted he used information provided by manafort to create invoices for fake amounts of money for wire transfers. but the money never actually went to the vendors. instead it went to the banks. the purpose of this, according to gates, so that the wire transfers would not be recorded on u.s. business records. nonetheless on monday the prosecutors elicited testimony from mr. gates and one of mr. manafort's accountants that tied him closer to russia. the accountant testified in 2006 mr. manafort received a $10 million loan from oleg deripaska. she said she saw no evidence the loan was ever repaid. throughout paul manafort's attorneys focus has been on undermining the credibility of rick gates, saying why should the jury believe him now considering the fact he has lied before, admitted to lying before to federal prosecutors. rick gates' answer is that he's taking responsibility now for those mistakes. and there was a powerful moment in the trial today where he said that is a choice paul manafort has not taken as well. jim sciutto, cnn, at the courthouse in virginia. president trump is prepared to meet with kim jong-un again at any point. that is according to u.s. national security advisor john bolton. and he told fox news that the president is not alone. >> the secretary of state mike pompeo is prepared to go back to north korea to meet with kim jong-un. we've proposed that in our most recent letter from the president to kim jong-un. the president is prepared to meet at any point. but what we really need is not more rhetoric. what we need is purchase from north korea on denuclearization. >> let's bring in cnn's will ripply who joins us now live from hong kong. good to see you, will. why are we seeing this push for a second summit with kim jong-un given very little progress was achieved as a result of the first summit. what are the benefits and what are the drawbacks for doing this? >> well, the north koreans blame the united states for lack of progress since the first summit. they feel since his most recent trip to pyeongyang mike pompeo went in there what they view with a list of demands. and yet the north koreans say they haven't seen anything in return from the united states in terms of a willingness to lift sanctions gradually, and more importantly perhaps the security guarantee that a peace treaty ending the korean war would allow. they want guarantees that kim jong-un is going to stay in power and be safe as the north korean leader for many years to come if north korea were to take the step of denuclearizing, something they see happening over a very long period of time. they feel the negotiations with president trump and the north korean leader kim jong-un went very well, that the two leaders had a good rapport, and that his lower level administration officials, the rapport was not good. the visit was described as really a disaster by some people who viewed secretary pompeo as being snubbed when kim jong-un didn't meet with him. what a sort of mine is saying that the north koreans feel the best deal is direct with them with a face-to-face meeting with president trump and and his security advisers saying he's open to doing that so saying a second summit is possibility between the two leaders. >> we'll watch to see if that indeed does occur. will ripply joining us live from hong kong. many thanks. well, president trump is warning other countries to review iran or they won't be doing business with the united states. he tweeted were the boast biting sanctions ever and adding he wants world peace nothing less. meanwhile the iraqi prime minister says they'll not violate the sanction but added iraq does not support sanctions against any country. >> and we'll get back to our breaking news after a short break. donald trump's popularity put to the test in elections across the united states. plus california is just in the middle of its fire season, but the u.s. state already faces wildfires of historic proportions. and there seems to be no end in sight. we're back in a moment. i landed. i saw my leg did not look right. i was just finishing a ride. i felt this awful pain in my chest. i had a pe blood clot in my lung. i was scared. i had a dvt blood clot. having one really puts you in danger of having another. my doctor and i chose xarelto®. xarelto®. to help keep me protected. xarelto® is a latest-generation blood thinner that's... proven to treat and reduce the risk of dvt or pe blood clots from happening again. in clinical studies, almost 98% of patients on xarelto® did not experience another dvt or pe. xarelto® works differently. warfarin interferes with at least 6 of your body's natural blood-clotting factors. xarelto® is selective, targeting just one critical factor. don't stop taking xarelto® without talking to your doctor, as this may increase risk of blood clots. while 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11 points in the 2016 presidential election. more than 8,000 absentee and provisional ballots still have be counted. and although balderson is claiming victory o'connor is not conceding. >> i'd like to thank president trump. america is on the right path, and we're going to keep it going that way. over the next three months i'm going to do everything i can to keep america great again. >> as we see division and discord tearing apart our country we must remember that each and every one of us are god's children and that all of us need to be treated with dignity and respect. and i think we could use a lot more of that spirit in washington these days. >> scott lucas is a professor of international politics at the university of birmingham in england. he joins us now live. good to have you with us. >> thank you. >> so let's focus on this major contest, the ohio special election in the 12th congressional district whereas we saw republican troy balderson declared victory in a very close race with his rival danny o'connor in what was previously a safe republican seat. so what might this signal might occur in the november mid-term elections? >> it signals it's going to be one heck of a show. probably i think the most important mid-term election in u.s. history. if and when eventually balderson's victory is confirmed that this is vindication for them. whereas the democrats will say even if they can't overhaul that narrow lead, look, there was a 13% swing to us from the last congressional election and from trump's victory in 2016. now, that's part of politics. i think what's important here for me is that, one, it shows you that each and every district that is contested in november could potentially be in play. there will be some that will be safe, but we're going to see an unprecedented number of house and senate races that are going to be extremely tight. and beyond that i think the risk is we try to apply a single model fits all, and it won't. it might be different from somewhere what happens let's say in the deep south where i'm from. and i think you have to take cog nizan nizance of so many local issues that even that presence of donald trump we get fixated on i don't think he's necessarily going to be the guiding star of what happens. >> i do want to look at president trump's tweet. he put this out just a few hours ago. when i decided to go to ohio for troy balderson he was down in early voting, 64-36. that was not good. after my speech on saturday night there was a big turn for the better. now troy wins a great victory during a very tough time of the year for voting. he will win big in november. so scott, the president is painting this as a big victory, and he's trying to take credit for turning things around for balderson. is this a win for mr. trump? >> look, donald trump's the guy who always says if i crow it makes the sun shine. the fact of the matter is donald trump's tweet is incorrect. troy bauderson was not far behind in the campaign in ohio emphas. it was always a toss up race. it may have been his appearance in ohio that might have an effect. but i think trump saying this might have won everything, i think it shows you first of all the republicans barely hung on despite being the contest they had to win, and comes back to the point i just made, donald trump may claim credit he's reshaping american politics and has made the rules different, but he's not the only factor in play here. and indeed it is more possible the more donald trump says that the more it may galvanize people to come out and vote for the opponents in november. donald trump, let's face it, he intervened for a republican named roy moore in november and the republicans got tossed on their backside. we'll have to see whether he's a positive or negative for the gop in november. >> there's still nearly 8,500 absentee ballots and provisional ballots to be counted. do you think it could change things as they stand? >> i think this is right cnn is not calling this, but it is a task for o'connor. he's got to have about a 25% margin amongst those absentee and provisional ballots to be able to overhaul the lead. that's a pretty hard task. but it's not impossible. so, you know, given that ohio is up to ten days to count the outstanding ballots and given there is a recount provision if the margin is within 0.5% you and i could be talking about this for a couple weeks to come. >> right. and i do want to get your take on the kansas governor election. that's a very tight race as well, trump endorsing chris kobach over the incumbent governor. and that makes some republicans very nervous. what does that signal to you? >> well, it should make republicans nervous. that's first of all, and that's because of two things. one is it shows there's a contest whether this is the republican party or whether this is donald trump's party. we've seen this in previous campaigns. we saw it down in alabama last year. we've seen it in other contests in which trump has defied the establishment of the gop. but the second and important reason why it should make republicans nervous, some of those trump candidates have got baggage. chris cobotch was the head of that ill-fated election commission that tried to prove voter fraud because donald trump said there were thousands of illegal voters that came out to vote for hillary clinton. that commission fell flat on its face. if donald trump is saying i make the sunshine he might bring in a bit of darkness for the republicans in a few months time. >> scott lucas, appreciate it. let's turn to missouri now in a shocking upset in tuesday's democratic primary there voters chose this man, leslie bell, ousting incumbents and lewis county prosecutor robert mucullic who is tie to the highly controversial ferguson police shooting. you may recall michael brown an african-american teen was fatally shot by a white police officer four years ago in ferguson. the shooting sparked riots and a national debate about race relations. mcculloch was widely criticized for failing to charge the officer who killed brown. tuesday's primary ozviewed by many as a vote on his handling of the case. bell is effectively assured to become the st. louis prosecutor as he does not face a republican challenger in november. well, coming up as california faces wildfires like it has never seen before some scientists are now warning we face a climate change emergency. we'll take a look at that when we come back. can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor should check you for infections and 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send us your thoughts at facebook.com/cnni. our international viewers can join the conversation and have their say live on cnn talk. a panel will be discussing your questions that's at noon in london and 7:00 p.m. in hong kong only here on cnn. still to come on "cnn newsroom," elon musk shocks wall street by announcing he wants to make tesla a private company. we'll ask our market analyst to weigh in. that's next. t people. but on the inside, i feel chronic, widespread pain. fibromyalgia may be invisible to others, but my pain is real. fibromyalgia is thought to be caused by overactive nerves. lyrica is believed to calm these nerves. i'm glad my doctor prescribed lyrica. for some, lyrica delivers effective relief from moderate to even severe fibromyalgia pain, and improves function. lyrica may cause serious allergic reactions, suicidal thoughts or actions. tell your doctor right away if you have these, new or worse depression, unusual changes in mood or behavior, swelling, trouble breathing, rash, hives, blisters, muscle pain with fever, tired feeling, or blurry vision. common side effects: dizziness, sleepiness, weight gain, swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who've had a drug or alcohol problem may be more likely to misuse lyrica. with less pain i can do more with my family. talk to your doctor today. see if lyrica can help. it's a high-tech revolution in sleep. the new sleep number 360 smart bed. it intelligently senses your movement and automatically adjusts on each side to keep you both comfortable. and snoring? how smart is that? smarter sleep. to help you lose your dad bod, train for that marathon, and wake up with the patience of a saint. the new sleep number 360 smart bed, from $999. smarter sleep will change your life. welcome back, everyone. well, it is too close to call in the race for ohio's 12th congressional district. president trump campaigned for republican troy balderson who currently has the lead over democrat danny o'connor but thousands of ballots still have to be counted. this district has been republican for more than three decades and donald trump won it by 11 points in 2016. let's turn to tesla now and elon musk who's stunned investors by announcing he wants to take the company private. in a tweet he said he'd already lined up funding at $420 a share. he calls the move the best math forward for the electric car company and said it would relieve tesla of the pressure from wall street and short sellers. following musk's announcement tesla finished the day 11% higher. let's bring in david madden, a market analyst in london. we'll have a look at his perspective on this. thanks for joining us. the announcement by elon musk that he wants to take the company private saw the value of tesla raise, but also raised questions about whether musk broke any laws with his tweet. did he? was this a smart move? >> it all depends on the intent behind the tweet. if mr. musk was genuine and honestly is considering taking the company private or is actually in the process of that behind closed doors taking the company private, no laws -- i imagine no laws would have been broken. it's only if mr. musk deliberately stated he was considering taking the company public as a way of driving the share price higher and also squeezing out the short sellers. currently tesla is a very heavily shorted stock, about 27% of the free flow of tesla shares, the shares available on the market, are in the hands of short sellers. traders who are betting against tesla and they want to see the share price go down. so any rally in the share price of tesla would then put pressure on those traders who have taken a bet against tesla share price of short sellers. so if mr. trump was intentionally saying he's considering taking the company private just as a way of getting back at the short sellers, that would be a different story. that would be something the sec, the securities and rate exchange commission would take seriously indeed. but it all comes down to mr. musk's actual intent. >> interesting. why do you think musk is doing this right now? what message do you think he's trying to send? >> i think mr. musk has been -- has had a difficult few months. in the most recent earnings call he actually apologized to investors and analysts in the way he treated them on the previous earnings call. things aren't exactly going according to plan, and this could be a temper tantrum by elon musk as a way of saying that i don't have to be bothered answering questions by market analysts or journalists or being under the scrutiny of wall street. this could be may of saying, you know what, forget about it. i'm going to secure the funding myself, i don't have to divulge any details or information. it seems to me mr. musk wouldn't be threatening it take the private company -- not long ago he just about achieved his production, and even though the company has lost money in the first two quarters of this year mr. musk has said they will turn a profit in the second two quarters of this year. it could be the pressure is getting to elon musk. it's also worth pointing out this sort of erratic behavior could be argued you might except that from exceptional innovators or inventors. but if you're the ceo of a multi-million dollar company -- >> shareholders have to approve this, how likely is it that that would occur? >> given that we're about with the share price closed somewhere in the region about $40 below the price mr. musk was quoting it's about 10% premium above the price there's a likelihood that shareholders would approve it given that as i mentioned there's a very large short interest of investors out there who are actively betting against elon musk. on the flip side of things only yesterday we heard from a saudi arabian sovereign wealth fund. there's clearly an appetite for this. soverei saufb sho they might view it as maybe we should consider the offer should the offer of $420 be put on the table. >> and thank you for your company this hour. i'm rosemary church. remember to connect with me anytime on twitter. "early start" is next for our viewers in the united states and more on the special election in ohio you can join hannah van jones who is up next in london. 6 it was here. my doctor and i chose xarelto® to help keep me protected from a stroke. once-daily xarelto®, a latest-generation blood thinner significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. warfarin interferes with at least 6 of your body's natural blood-clotting factors. xarelto® is selective, targeting just one critical factor. for afib patients well managed on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. don't stop taking xarelto® without talking to your doctor, as this may increase your risk of stroke. while taking, you may bruise more easily, or take longer for bleeding to stop. xarelto® can cause serious, and in rare cases, fatal bleeding. it may increase your risk of bleeding if you take certain medicines. get help right away for unexpected bleeding or unusual bruising. do not take xarelto® if you have an artificial heart valve or abnormal bleeding. before starting, tell your doctor about all planned medical or dental procedures and any kidney or liver problems. learn all you can to help protect yourself from a stroke. talk to your doctor about xarelto®.