good morning. breaking overnight, uber set to merge china business with didi in a deal. we have the details straight ahead. we'll talk about gold man coming up. plus scores and more. jimmy walker holds on to win the pga championship taking home his first major title. monday, august 1st, 2016. worldwide exchange begins right now. good morning. welcome to worldwide exchange.

i'm sara eisen with mark san toll i filling in for wilfred frost. >> good monday morning. new month of trading. let's show you where global market are starting the month of august. july was one of the best months we've seen since back in march. a gain of more than 3% for the dow, s&p, double that for the nasdaq and we're starting on a high note. fractional gains. s&p futures up 3.5. nasdaq futures up 6. as for the ten-year treasury note yield, it was the first look at the second quarter. it came in way below economist estimation. that pushed the yields down. there's some selling pushing bond yields higher. we're still below that 150 mark. >> we'll talk about at that later. let's get a look at the european markets right now. we did have european data coming out. the manufacturing pmis in general coming in roughly as

expected. you see there germany up marge ally. that pmi was better than expected. and then a little below the flat line in italy and spain. those banking concerns hover over the market. let look at the european banks. they're in focus following the european bank stress test. you see uni-credit and intessa. they're taking it -- monte dei paschi. >> bouncing a little bit but minimal levels. more about this from rome in about 15 minutes. let look at asia. also mixed economic data. the manufacturing pmi. below the key level. the difference between expansion and contraction. a private survey of small to medium-sized companies showed growth. a mixed message when you see the index is not doing much and the hang seng in hong kong up.

>> notable that japan finished higher. the japanese yen surged. oil, coming off a sharply lower month in the month of july, down double digits in terms of percentage points and the declines continue this morning. wti crude at 4119 down a percent. brent down a percent as well. we got into the 40 range on friday. as for the currency market, the euro is weakening a bit. a weak day for the dollar on friday. euro dollar 111. it's all on the fed, it seems like for the currency markets right now. and the bank of england, which is due later this week and there are expectations that it will move in terms of stimulus, potential qe, lowering rates, you name it to fight the brexit impact. 131 is the pound. it's under pressure. dollar yen, strong dollar, weaker yen, that's a reversal of

last week. that means sentiment is better. >> it is better this morning. it's build to go that jobs report in the u.s. >> on friday. >> the quickly gold here. moves of course in opposite directions. for the dollar. it's a bit stronger this morning. gold back up. to 0.1%. now to the top corporate story. uber set to merge with rival chinese service didi in a deal that would value the company at $35 billion. eunice yun joins us with the details. hello eunice. >> hi, mike. in the past half hour, didi as well as some sources to the deal have confirmed that it is indeed true, didi is going to be acquiring all of uber's assets in china. that includes uber's brand, its operations, as well as its data services. also the sources who are close to the deal say that the investors of uber will be taking over a 20% stake in the combined

company and it is valued at $35 billion. didi also had said that the didi founder is going to have a role on uber's board and the ceo of uber is going to be joining didi's board. so this deal already confirmed by didi as well as some of the sources close to the deal. it really does underscore some of the trouble that both of these companies have been having with a price war. they've been raising a lot of money or spending a lot of money here. uber has said it had been spending $1 billion a year and we had heard last week about the pressure that many of its investors were putting on both companies in order to try to come up with some sort of deal because they've been disgruntled or concerned about the money that has been lost by both of the companies. now that it's confirmed some of the sources who are close to the deal say that both companies can now move forward to try to

really take advantage of the potential in this market. guys? >> wonder if it says anything eunice about the difficulties, the challenges for u.s. technology companies and other companies of doing business in china, you think back to yahoo for instance selling its china stake to alibaba. is this the roadmap? is this what they have to do, partner with a local company in order to gain favor with government and the regulations and whatever else is needed? >> yeah, you're not the only one who has been asking that. it's very difficult to pinpoint because obviously we're seeing both of these companies in a fierce battle. there are a lot of different reasons why uber would be facing a problem. but there have been a lot of concerns that just like so many other companies as you had listed who do come from outside the country that uber is just the latest to fall on its sword because it hasn't been able to really compete in this market. some of these people within the

tech industry who have been concerned about it have said if you look at the financial backing for example of didi, that uber originally made quite a bit of headway in this market, growing its market share and really trying to build a presence. its service has been quite popular. but that didi has a lot of backers, including now b.i.d. u because of this, as well as alibaba and ten cent. huk tech titans behind it. it has the severyn health fund. if you look at that in terms of the money going into the company and in terms of what people here have been saying, at least in the business community about the uneven playing field, there are many concerns that this is a trend that we're going to see in the future for i.t. companies that are based outside of china. >> certainly hard to compete with that. eunice yoon live for us in beijing for us. thanks, eunice. >> mike, what's your take? >> one interesting angle am apple did invest in didi, that

was an eye-catching deal. there was that cute response from travis when he said his girlfriend owns apple shares and therefore, she's an investor in a rival to uber over there. maybe there's more harmony in the relationship because they're on the same page. >> i wonder if apple gets paid on this deal? >> they just have a proportional stake maybe in the new company. in other news on uber, the financial times reporting that the right hailing company is working on april major expansion of its internal mapping program. uber is investing half a billion dollars into a global mapping project. the company is looking to wean itself off of the dependence on google maps and potentially pave the way here for driverless cars. in other deal news this morning, tesla and solar city could announce they've agreed to a merger. the two firms would have to convince shareholders to back the combination. it's part of elon musk's strategy, pafrpt of the master plan he calls it. musk wants to offer a single source of hardware to power a

low carbon lifestyle. he's the biggest shareholder in both companies. a fairly busy week for economic data and earnings reports. today, we'll get july msn manufacturing index and tomorrow shinzo abe is set to announce his stimulus plan tomorrow. all those deals and the markets have been anticipating that. in the u.s., look for personal consumption, income and spending and july auto sales. wednesday, it's the july adp report and the ism services index. thursday, the bank of england has a policy meeting and june factory orders. finally the week is topped off, as mike mentioned, the big july jobs report on friday. coming oaf a strong number in june. as for earnings central, more than 100 companies in the s&p 500 reporting results this week. notable names, pfizer, time warner, procter & gamble. tess larks viacom and kraft

heinz. >> starting the month of august, coming off a positive month but a negative week for stocks overall seems to be dominated by better u.s. economic data which is why the gdp report was a blow. >> it kangd changed president story a bit. they've been surging basically. all the data better than expected. this was a complicated one. below the surface of the gdp number, it was good and bad. the report was not so good -- >> was it not so good enough to make a fed pause? we can never figure out and everybody is always guessing. >> or were they going to pause anyway. >> they want to keep the december idea out there so people don't abandon the idea of a hike. >> as we get into a new month, goldman sachs cut the rating to underweight. they say the risk appetite has turned to neutral suggesting that markets are more vulnerable to growth and policy

disappointment into august. the downgrade comes as gold man says the recent rally in stocks is driven by the brexit vote and aid search for yield. >> so what's the pro column on this? >> i think it's an okay najment of a few things. we had a huge bounceback from february and post brexit. it seems as if -- this is one of the easy money is the made calls i think. didn't seem easy. but i think in gold man's point much view, it's no longer the case that people are skeptical and underweight the market. also seasonally, august and september are tough months. it might seem like kind of a logical time to take some off the table. >> gold man has been neutral and slightly bearish on stocks over the year. if you were to listen to them, you would have missed this rally which has sent the s&p firmly into positive territory for the year. >> their u.s. target remains below where the s&p is trading right now. i believe it's the 2100. we'll see if they're right this time around.

in new york fed president bill dudley early this morning, in indonesia. dudley saying the markets shouldn't rule out the possibility that the fed will hike interest rates again this year if the u.s. economy improves significantly. still dudley warns that global lackluster growth is limiting the fed's policy options. he's urging caution on raising rates following the brexit vote and big gains for the dollar. this is a more internationally focused fed no matter how you look at it. is it so much so that they don't raise rates this year. >> that is the question. it was really, you could find anything in dudley's comments if you're a hawk or a dove to seize upon. maybe it's the way -- they want the not to get overconfident. which is frustrating of course. meanwhile, a few stocks to watch today. heineken shares under pressure as the results fell short of estimates. this is demand weakening key regions like africa, russia and the middle east. heineken ceo speaking with colleagues in europe about the sab deal and owe tension impact

on heineken -- >> the deal abisab is a very big deal. we compete on a market by market basis. if you look at the market by market, nothing really changed. >> meantime, glaxo-smith-kline and -- the two firms will create a new company worth over $700 million focusing on fighting diseases and targeting electrical signals in the body. part of the field known as bioelectric nicks. when we come back, european banks under pressure following the latest stress test results. we've got a roundup of the names most at risk and what you need to know about the story. interview with jamie dimon live at 1:00 p.m. eastern time. power lunch. stay tuned. you're watching cnbc. first in business worldwide. whether it's bringing cutting-edge wifi to 35,000 fans...

or keeping a hotel's guests connected. businesses count on communication, and communication counts on centurylink. todd spaletto, president of the north face, we are working on the prototype to match customers to gear. watson, let's give it a try. say it's mid-june and i'm backpacking in yosemite. of our 353 jackets, i can recommend nine. watson, what if it rains? there is just a 3% chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. a perfect choice watson. no wonder our customer loyalty numbers keep climbing. i believe we can do even better. i like the way you think. and grease in just a minute on dirt and grime i believe we can do even better. mr. clean will clean your whole house and every room that's in it floors, doors, walls, halls he's so tough, he cleans 'em all mr. clean!

welcome back to worldwide ex chachlgt let's get you up to speed. u.s. equity futures headed for a moderately positive open. most of the gains in the first half of the month. tight range ever since. >> 21 -- nasdaq was out performer last month looking at slightly more than .1 of 1% to

the outside. looking at oil. continuing the down trend. down about 1% both wti crude and brent. that's potentially a pressure point for equity. you have to wonder how long that price down from a month ago. italian banks under intense scrutiny following the latest european stress test results which hit late friday night in europe. julia chatterley joins us live from rome. julia, what happens next? >> good morning sara. as you were just pointing out, the italian banks were very much in focus. monte dei paschi, this was the bank really in focus. expected to do the worst and it did. in fact, in the ad verse snare yoer, all their capital gets wiped out. yet, this stock, if you look at the share performance, is at the top of the stock 6 hup.

at the 11th hour on friday, it was announced they would get a recapitalization back topped by the biggest banks in the world, including jpmorgan. the condition is that a whole host of nonperforming loans are taken off balance sheets and financed. the hope here is that you're going to build some kind of market going forward to alleviate the stress of nonperforming loans more broadly in the banking sector. one of the elements of this is that the atlante fund, a collection of cash created here in italy by the largest banks will be buying these bonds. i know it's complicated. stay with me. one of the big banks that provides money is uni-credit. it's also one of the top three banks in italy. uni-credit is down. why? because the unofficial pass fail mark was around 7% of taiwan capital and they barely scraped through. investors cautious about

uni-credit and uni-credit one of the banks that's involved in helping out monte dei paschi. it's very italian here. very complicated. but you've got one bank out-performing because they're getting help and one bank underperforming because, again, this concern still about capital and profitability. watch both of these stocks, guys. there's a long way to go to claw back the losses that we've seen year to date. in monte dei paschi, 70% losses. ouch. >> outside the ruins of rome. julia, one question -- >> it's beautiful. >> it is a beautiful shot. >> what is the government response? we know that there are different rules there. when in the hus when we hear about bank problems, we hear about tarp, a massive package to reinfuse the banks with capital. how limited are the governments in doing that right now? i know there are new rules. try to separate the sovereign

link from the banks. >> so this is a really critical question, sara. why drpt europe do its own tarp. unfortunately, we didn't. now the -- >> all right. well, too bad we didn't get the answer to that critical question. julia chatterley. i'm sure we'll see more of her from rome. she'll be speaking with the prime minister over there and she'll have that interview for us tomorrow. matteo renzia a cnbc exclusive. the prime minister of italy on the test results. a roundup of the political stories. including a fight over the debates and the nfl. >> who would have thought. yes. heading to break, here's the national forecast from the weather channel's kelly cass. >> hey, good morning. after a very stormy weekend in the northeast, we're not seeing much of a break as we take it back to work today. more rain and thunderstorms for new york city, philadelphia as

well. some places over the weekend, especially west of baltimore, seeing well over half a foot of rainfall that led to all kinds of problems with flash flooding. we still have the chance of pop-up showers and thunderstorms across the south. it's very humid. can't rule it out. 100 degrees in dallas for today with the blazing sunshine out there. 93 degrees in dallas. we will have a chance for seeing severe weather today across the northern plains. the main threat is going to be damaging gusty winds and possibly big hail out of the storms as well. cooler temperatures in bismarck. 79. not bad in chicago. 83 degrees. that's a look at your national forecast. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.

the cash rewards credit card from bank of america. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.

good morning. welcome to worldwide exchange. time for political news. it's the first full week of the general election campaign and controversial trump headlines are dominating coverage this morning. the republican nominee engaging in an emotionally charged feud with khan, the parents of a decorated muslim american army captain killed by a suicide bomber in iraq. the khans spoke out against trump's call to ban muslims from the u.s. trump had all sorts of outrage and replied the fallen soedier's mother did not speak side her husband at the dnc speech because they're muslim. >> his wife, if you look at his wife, she was standing there, she had nothing to say. she probably maybe she wasn't allowed to have anything to say. you tell me.

but plenty of people have written that. she was extremely quiet. it looked like she had nothing to say. a lot of people have said that. >> here's what the fallen soldier's mother had to say in response. >> i'm very upset that i heard that i didn't say anything. because i was in a pain. if you are in pain, you don't. you fight or you don't say anything. i am not a fighter. i can't fight. so that best thing i did was quiet. >> and more on this in my must read of the morning where she continues to speak out. meantime, mark cuban throwing his support behind hillary clinton. the billionaire officially now endorsing her. a surprise appearance during a rally in pittsburgh on saturday. >> hillary clinton's america, the american dream is alive and well.

there's no place that knows that better than pittsburgh because we are an american dream city. >> cuban took the opportunity to bash donald trump again. opening his remarks by saying, hello trump in russian and bragged his tv show, shark tank, beats the apprentice. cuban is a pittsburgh native and decided to support clinton because trump, quote, scares him. >> if you follow him on twitter, you get this. not a surprise. speaking of endorsement from business leersd, hillary clinton will appear in omaha and will be introduced by warren buffett. >> 800,000 people -- >> all right. so clinton bringing the heavy hitters. now to sports. a new winner was crowned on sunday at the pga championship as jimmy walker takes home his first ever major in his 15-year career. the oklahoma native finishing at 14 under par. one shot better than jason day.

the best finish walker ever had was 8th place at the 2014 masters. walker is the first player to go wire to wire to win the pga since phil mickelson did it in 2005. apparently there was a lot of spends and a great final round. >> i have to take somebody else's word for it. >> jason day almost had it. walker prevailed. coming up in the top stories. new economic data showing data rose sharply following the brexit vote. and don't miss the interview at 1:00 eastern with jamie dimon. you're watching cnbc. first in business worldwide.

good morning. breaking overnight. uber set to merge china business with rival didi in a $35 billion deal. the details from beijing straight ahead. >> markets now. the dow in a six-month winning streak. its best run in more than three years. at the box office, jason bourne takes the big screen by storm. it's monday, august 1st, 2016. you're watching worldwide exchange on cnbc. good morning. welcome back to worldwide exchange on cnbc. i'm sara eisen along with mike san stole i sitting in for wilfred frost. great to be here. >> starting august in the green.

fractionally here. u.s. equities futures, s&p futures up 3.5 and nasdaq futureses up 8. this is the best -- the nasdaq outperforming the other two. the s&p and dow closer to record highs. the treasury starting out the month with selling. better sentiment across the world. we're hovering at 147 on the ten-year yield. that is lower than where we were to start out last week. potentially, mike on the back of that weaker gdp report for the u.s. that we got on friday. >> yeah. that yield has been unable to get any air under it at all in this rally. european equities meanwhile, they were mostly positive. not really. a bit mixed. germany about a half a percent higher. we had manufacturing data. specifically the uk manufacturing data coming in worse than expected. shrunk at the fastest pace after the brexit vote. perhaps not too unexpected.

let's look at asia. overnight, mixed markets there. economic data out of china. the official pmi at 49.9. just barely below -- >> a private survey of small to medium-sized, you see the mixed response, hng sang in hong kong, the shanghai deposit down. >> the broader markets, the selling and oil continues. sentiment is negative. in the last half hour or so, the selling picked up steam. wti down to 41.05. brent down 1.5%. just below $43 a barrel after a double digit decline in the mornt of july. the dollar is slightly smaller. the supply concerns are weighing on oil as well. the euro, weaker. dollar, stronger. 111.67. fractional gains for the u.s. dollar. stronger against the japanese

yen as well. reversing a major move on friday. point out the pound, mike on the back of the uk manufacturing data. yes, we expected it. boy, is brexit starting to hurt. this is the warnings were all about. the uncertainty weighing on the industries in the uk. quickly, i'll show you gold with the stronger u.s. dollar. gold up a bit in the early morning session. $1.60. uber merging the china unit with rival didi. eunice yoon joins us with the details live from beijing. what do we know about how the deal came together and what it looks like. >> reporter: well, sara, both companies have now confirmed that this merger is going to happen. didi issued another statement saying that it will be acquiring all of uber's assets within the country. that includes its brand, its operations as well as its data service. the investors of uber are going to get a 20% stake in the

combined company and the company is going to be valued at $35 billion. now, the other point is that didi is going to make an investment in uber to the tune of $1 billion. both company executives now have come out and hailing this as a win-win. the president of didi had said with the addition of the strong talents and experience of the uber china team, they will be better able to serve the chinese people. it will expand the international capacity because didi has been looking to grow overseas investments. on the flip side, the ceo of uber posted on facebook just minutes ago, putting in an explanation of exactly uber's overall strategy in china but really getting to the point that profitability at the end of the day was the reason why uber decided to make this decision

saying as an entrepreneur, i've learned that being successful is about listening to your head as much as following your heart and sustainably serving china's cities and the riders and drivers who live in them. it's only possible with profitability. uber has been very vocal about how it's been losing money in china despite all of the potential it's put in. $1 billion a year. it doesn't have much to show for it in terms of profit. we've already been hearing over the course of the past week, a lot of rumors about how investors have been growing more and more frustrated with the fact that uber as well as didi have not been making money in this market. so that's really the impetus for this merger at the end of day, the companies want to be able to make money with so much potential in this market. >> eunice, thank you. very valuable on didi again for us live in beijing. i wonder if she mentioned

reports as much as $2 billion. i wonder if this paves the way an ipl. >> takes complication out of the uber story a little bit. it seemed like it would be a money pit for a long time for uber. by the way in the u.s. here, it's also very ex pen tiff for uber to keep the growth up. just attracting drivers and the rest of it -- >> and fighting off the competition. reports say that tesla and solar city could announce today that they have agreed to a merger. the two firms would then have to convince shareholders to back the combination. the move is part of elon musk's big strategy, his master plan. he wants to offer consumers a single source of hardware to power low carbon lifestyle. musk is the biggest share older in tesla and solar city. solar city up more than 7%. meanwhile, elon musk outlined a broad range of

products for tesla last week. he's confirming the high passenger density urban transport vehicle referenced in the master plan, that it won't be an electric city bus but a smaller minibus built on the model x chassis. it will be inspired by and modeled on the iconic vw bus. the micro bus as they used to call it. >> nostalgic for many. it's a fairly busy week for economic data and earnings reports. here's what you want to watch. today the july ism manufacturing index. tuesday, june personal consumption income and spending numbers. july, auto sales also out throughout the day. wednesday the july sachlt dp report on private sector job growth and ism services index. thursday, june factory orders and the week is topped off by the big july jobs report on friday. as far as earnings, more than 100 companies in the s&p will report this week. names like pfizer, procter & gamble, time warner, 21st century fox, tesla, viacom and

kraft heinz. what's the read on earnings so far? >> i think better than low expectations. this is the tail end of it. i think what's interesting, though, and you'll be watching this. a lot of the food and consumer staple stocks that are bought for dividends, we'll see if fundamentals matter much. >> so far they haven't shown much profit or he have new growth. pepsi is -- >> mcdonald's and coke sold off. >> investors are buying tech stock. >> buy the banks if you want a utility. utilities are so expensive. banks are paying dividends. >> old tech is an under rated source of dividends. now to entertainment news. movie fans had no trouble remembering matt damon in the role of an action star this weekend. landon dowdy joins us with more on that. >> good morning to you. the rebirth of bourne. matt damon stars at bourne in the latest installment in of the

super spy franchise. $60 million this weekend debut. he returned to the bourne series produced by comcast universal pictures. beating estimates by $10 million even as it got less than stellar approval ratings on sites like rotten tomatoes.com and cinema score. jason bourne marks the second highest rating from ultimatum in 2007. the film knocking paramount's star trek beyond from the top spot. it grossed 24 million in the second weekend down from about 60% from the last week. stx entertainment bad moms brought in about $23 million. universal is reveling from the continued success from the animated feature the secret life of pets. it has now earned nearly $300 million in the u.s. and canada adding $18 million this weekend. guys, bourne is back. >> i know a lot of people who went out to see it this weekend.

landon, thank you. now to our top trending store ifts morning. muggles around the world making the latest installments of harry potter disappear from stores. harry potter and the cursed child hitting bookshelves sunday at midnight with the play version opening in london this weekend. j.k. rowling's latest book, which is actually a script was greeted by long lines of fans and midnight release parties. she's still got it. fans are still out. >> she says it's done, right? >> she says it's done. >> for nowment. >> i wonder what the reception will be. the fact that it's a script and not the same kind of book format. >> exactly. >> meantime, instagram is slowly rolling out a new tool to combat bullying. users able to filter comments and ban words from showing in instagram comments. the new policy will be available for the most popular accounts followed by all accounts within a few months. >> i love this. why isn't twitter doing this. >> good point. this will put a spotlight on

twitter. halting efforts to stop abuse. >> celebrities and others dropped off twitter because you can't control the hate. jackpot officials saying one powerball ticket was sold in new hampshire matching winning numbers for the $487 million prize for the eighth largest jackpot drawn on saturday night. one lucky winner. it wasn't even split. >> with interest rates low, you take the one-time payout? i always forget the financial advice. >> i don't know. >> i think that's the case. >> i thought you were never supposed to take it? >> it makes it less of a problem if rates are low. i don't know why. time for the twitter and facebook question. goldman sachs turning cautious on global stocks for the next three months. we asked you if it's time to sell in august? let us know what you think. we'll bring you the results later in the show. >> san toll i special twitter question. today's must reads and this

afternoon, a cnbc exclusive, don't miss wilfred's interview with jpmorgan's jamie dimon. >> this morning, a mixed picture with some of the italian banks under pressure. stay tuned. you're watching cnbc. first in business worldwide.

[baby talk] [child giggles] children: "i," "j," "k"... [telephone rings] man: hello? man: you may kiss the bride. [applause] announcer: a full life measured in seats starts with the right ones early on. car crashes are a leading killer of children 1 to 13. learn how to prevent deaths and injuries by using the right car seat for your child's age and size.

must reads. the story standing out to us. the "washington post" today has an op-ed from khan, the mother from the fallen iraq soldier whose husband spoke at the democratic national convention last week. trump responded on abc saying that why didn't the mother speak, sort of implying she wasn't speaking because she was muslim. here she is speaking out. not only with her husband via skype. she's writing a note, he criticized my silence. he knows nothing. for all these years, i haven't been able to clean the closet where his things are, referring to her son. i had asked my daughter-in-law to did it. walking on to the stage with a big picture of my son behind me, i could hardly control myself. what mother could? trump has children whom he loves. does he really need to wonder why i did not speak? really coming back scathing against donald trump. the khans are speaking up. i wonder how much this is going to impact voters because it

really does have an emotional connection and response to it. >> it's very powerful. many republicans have obviously come out and criticized trump because of this. obviously, it was a no-win on trump's part and his campaign's part to keep this alive. it would have been a moment at the convex and something he could have been asked about it. they've compared it to if hillary clinton criticized the mother of the diplomat who died in benghazi as opposed to just sort of letting pass. >> absolutely. certainly the media isn't letting up on this. the question is, whether we're going to see it in the polls. clinton was getting the post dnc bump. once that wears off, we'll see where the polls move. >> certainly, trump has people who will not be moved from support clearly. >> my pick for the most -- today's "wall street journal," an editorial entitled uncle sam needs a re-fi. saying the government should do everything it can to insulate taxpayers from the rate rise.

treasury -- found some interest in a potential 50-year debt offering. officials worry if they roll out longer bond and rates rise, investors may sour on such instruments. the journal is saying rates are so low across the arrow owe issue long-term debt and essentially giving the market what it wants and also essentially locking in the interest costs in the federal budget. the issue is that the treasury pays lower rates than those 10 or 30 or 50-year rates because it issues shorter term debt. the interest costs would go up a bit but you'd get the tradeoff of lower costs over time. the treasury has examined this many different ways. they say we've always managed this and lengthened out the maturity of the treasury debt. we don't think it's time to issue long treasury debt. they don't want to do that and have them trade down. >> if people are pessimistic

about the u.s. long-term future. >> it's more if inflation goes up and they basically get into the treadmill. i do think that it makes some sense on the personal household budget level. but the government -- the treasury thinks it has a better way. >> we're approaching the top of the hour. the team is getting ready for "squawk box" in new york city. becky quick joins us with a look at what's coming up. welcome, becky. good to see you. >> good to see you and mike. >> we're talking about a lot of same things you've been talking about with the markets and the politics you were touching on. in fact, coming up in a few minutes, we'll talk with ben white who will tell us about how he sees everything that's played out since the democratic national convention and trump's comments about khan, what he thinks is happening there. we have former governor and former presidential candidate howard dean who will be joining us along with former congressman rick laz yoe. we'll dig into the politics and what it means. we'll try to see what's happening with trade. wilbur ross will be joining us. he's been a backer of donald trump in large part because of

his take on trade. wilbur ross is a businessman. he's collected a lot of assets in areas hit particularly hard by some of the trade agreements, areas like textiles and steel. he has huge concerns about the trade deals because he doesn't think that america has gotten a fair shake. he'll tell us about what he thinks needs to be done when it comes to renegotiating the trade deals. we'll have a ceo focus, the ceo of brands will be joining us to talk about what they're seeing in the industry. we'll be talking about the markets and trying to figure out what happened. obviously, the dow is down five days in a row last week. but july was still the second best month for the markets that we've seen this year. s&p closing right within striking distance of a new high. we'll talk all of these things coming up in a few minutes. >> all right, becky, thank very much. see you in a couple hours as well. >> thanks, mike. coming up, pim coe's joins us to talk markets and the potential for more helicopter money overseas.

and don't miss wilfred's exclusive interview with jamie dimon live at 1:00 eastern today. stay tuned. you're watching cnbc. first in business worldwide. d'se campuses. or bringing wifi to 65,000 fans. businesses count on communication, and communication counts on centurylink.

man, it's like pure power at your finger tips. like the power to earn allstate reward points, every time i drive. ...want my number? and cash back for driving safe. and the power to automatically find your car... i see you car! and i got the power to know who's coming and when if i break down. ...you must be gerry. hey... in means getting more from your car insurance with the all-powerful drivewise app. it's good to be in, good hands.

welcome back. joining us with a week ahead look is tony kre senn zi market strategy at pimco. >> we have a lot to look forward to in terms of big movers this week. economic data starting with manufacturing today and ending with jobs on friday. england meeting on thursday. what do you think investors should focus on? >> the stimulus from japan, the package to be announced by the government is to be one of the highlights. there was disappointment last week in some markets. as you know, markets have been trading pretty well recently. with theback of japan's actions it didn't do as much as many thought. to the extent that the bank of

japan disappointed, many feel what comes alongside of that, the fiscal stimulus might be smaller. japan is engaged in what's called mffp. monetary finance fiscal policy. the extent that there's a large fiscal package. there would be a large degree of stimulus from the bank of japan. that's an important thing in terms of how markets receive the global story. but suffice it to say, because the bank of japan disappointed and if there's any disappointment or no smoking gun or i should say no big bank from the government of japan, then markets will perceive the global economy to still be in the state of being close to stall speed, which the u.s. gdp data friday seemed to show very slow rate of growth in the u.s. economy. >> yeah. ghachb downshift in growth we saw on friday, where does that leave us with regard to the fed as the other central banks are still very much in stimulus mode. we have new york fed president

bill dudley overnight essentially talking on both sides of the rate hike debate right now. >> well, it is important to listen to bill dudley. he's one of the three musketeers. he and stan fisher,s vice chair and the chair, janet yellen are the core members of fomc, the federal open market econocommit the body that makes decisions on interest rates. the global economy does seem to be, again, the word stall speed. what i mean by that is the economy is still growing just above their potential. the u.s. of course, we see growth in the ones right now. growth potential somewhere in the high ones. if growth is below potential in any nation, typically means slower job growth. in the u.s., we'll see statistics and it's going to be important to the overall outlook. for the fed it's likely to accumulate data before it makes a decision to tilt toward and interest rate hike and markets get the idea it's doing so.

>> based on your view of the economy and investor expectations and everything else, do you think they'll be able to hike in 2016? >> it does still semo owe there does seem to be a reasonable chance that the fed raises interest rates this year because the economy through it all, in looking at friday's data and final demand, which is to say to look at all of the activity minus inventories seems to be growing fast enough to allow job growth to be strong enough to drive the jobless rate down. so long as that's the case, those who believe that growth will lead to inflation someday, the fed will most likely want to implement as bill dudley seemed to indicate, another move to get closer to a balance or at least in terms of trying to get the rate closer to something, some semblance of normal. take a very long time, several years at least. >> tony, if the fed wants to get one in this year, one rate hike, will that be jarring to the fixed income markets right now.

the fed made a big effort to lift the market's view of what it might do in terms of increasing interest rates. didn't do it yet. but that would be tumultuous to the market. >> it would only be harmful if it happened by surprise. since data accumulates slowly, it wouldn't be a jolt. more importantly, markets are expecting policy rates globally to stay low for the rest of the decade. markets envision the bank of japan keeping the rate near zero. the same for the ecb. with those low global rates, money is expected to continue to move and flow toward the united states. corporate bonds, et cetera, keep rates low. >> tony, thank you. we've got to leave it there. tony from pimco helping us get ready for the day. >> you're watching what today? >> i'm watching oil. that's been a pressure point for high yield on stocks but not critically just yet. >> not in july. we'll see if maybe in august. i'm watching tech, which is the

best performer last week and last month. that does it for us. "squawk box" is up next. his casd from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.

good morning everybody. uber striking a deal in china. the details of a $35 billion story live from beijing and uber is saying goodbye to china in many ways. kicking off controversy. donald trump's big problem going head to head with the nfl. jimmy walker is your pga champion. 37-year-old winning a first major title. it's monday, august 1st, 2016. "squawk box" begins right now. live from new york, where business never sleeps, this is "squawk box." good morning everyone the welcome to "squawk box."

i'm becky quick. joe is off today. we do have a new month for the markets after a strong month of july. if you look back for the month, the dow added nearly 3%. the s&p 500 was up by nearly 4%. the nasdaq surged by over 6%. let's take a look at where we're starting today. last week was a rough one for the dow. it was down five sessions in a row. you can see this morning, the futures are indicated higher. futures up by 30 points above their value. s&p futures up by close to 2. the nasdaq up by 5.5. take a look at what happened in asia. july factory activity out of china that was softer than had been anticipated. so you can see that the hang seng was up by 1%. the shanghai composite down by .9 of a percent. in japan, the nikkei up by .4. if you check out the early markets, germany is slightly