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

higher. up by a quarter percent. the cac down by half a percent the ftse down slightly. after the friday night release of the european bank stress tests, they were not nearly as stressful as some thought they should be. but you did see a lot of concerning things that came out of it. you can see uni-credit is down by 7.5%. we'll find out how much it could impact the u.s. markets in a few minutes. let's check out crude oil prices because each though crude was up on friday, if you looked at last week, it was still down by over $2.50. oil sitting right around 41.60. this morning, wti under additional pressure. that september contract right now is trading just above the $41 mark at $41.07. brent crude at $42.93. it may be august, but things aren't slowing down. earnings and important economic data, all this as the dow starts

the month on a six-month win streak. today, we get the july ism manufacturing index. tomorrow, june personal income and spending and your auto sales numbers. wednesday it is the july adp report and ism services on thursday. the bank of england has the policy meeting. we get june factories orders finally the week is topped off by the july jobs report, the all important monthly payroll number. as for earnings central, the s&p 500 report results this week, including pfizer, p and g, 21st century fox, tesla, viacom and others. a big transaction to talk about. uber set to merge the china unit with rival chinese service didi. the combined chinese piece of it. uber worth $60 billion.

eunice yoon has more in beijing. eunice? >> thanks so much, andrew. didi under this new agreement is going to be acquiring all of uber's assets in china. that includes operations, the brand as well as the data. investors in uber are going to get a 20% stake in the combined company, which is valued at $35 billion. in addition to that, didi is going to invest $1 billion in uber. now that both companies have confirmed this agreement, it really does lay to rest the huge competition, the fierce competition between both of these companies. both of the companies have been spending billions of dollars in subsidies to try to attract drivers as well as passengers. in fact, uber has already said that it spent $1 billion every year for the past two years in this country. the ceo just posted on facebook that the profitability element was the reason behind uber's

decision. now, at the same time, uber is pulling out of what could be a hugely lucrative market for it. it has a lot of potential. china just changed its regulations. so it made the ride sharing completely legal. but uber has been struggling to gain market share. the reason for that is that didi has been a formidable competitor. it has 80% of the market and also didi in the latest round of funding raised $7 billion. in addition to apple as being one of the backers, didi has the chinese sovereign well fund as a backer. didi just pointed out that now it is the only chinese company that has all three major tech titans behind it as investors. alibaba, ten set and baidu. a lot of competition taken away for both of these companies. guys? >> eunice quick question in terms of understanding antitrust laws in china or whether there are any. this would obviously combine

just about everybody in this business, obviously the two other big guys became didi. this already happened the first merger. now there won't be any competition. is there any worry against china, the policy makers on this or no? >> you know, i was going to look into this as well. but i'm sure that there are regulations and antitrust regulations on the books. i don't know whether or not this is going to apply for this particular case. as you had said, there have been lots of different investors and it's kind of unclear exactly whether or not the regulators are going to try to crackdown on this. i mean, there are some other smaller competitors out there. but it's really difficult to say. what the other thing with this case that that's really interesting, it's been raising concerns among those in the tech community that this could be the latest example of a foreign tech company that is going to suffer in in business environment.

because it had become more difficult for a lot of foreign tech companies to operate because of the regulations as well as the chinese policies that tend to favor national champions. >> great. thank you for that eunice. i should note because i talked to guys earlier. we were e-mailing about this, this morning. this could be considered a great thing for uber because, obviously, they're not losing money. in terms of the overall uber valuation, which is 60-plus billion. part of the contingent of they were going to have a huge piece of china. a little over 5% in equity. 17.7% of a preferred in this combined business. but the other piece of it, interestingly enough, two of the major investors are black rock and tiger global. there had been a lot of concern about both of them being involved in both of them. you have to assume today they are happy simply because they're not losing money. >> the cover i -- >> it's all paper. >> i would think the idea of

competition, lowering at that point, we're not going to be throwing good money after bad and continually losing money, you would think that would help the investors too. >> the cover story in the journal this morning is that when tech firms, to eunice's point do well in china, like whack a mole. they get -- not just tech, who is winning? what u.s. companies are really winning in china? >> in china? >> can you automatically off the top of your said say -- >> you get response to that? >> if you're selling a lot of stuff, who is making a lot of profit? every ceo we talk to, you talk to, it's tough. >> ibm and apple. >> are they winning in. >> not terribly losing. how about that. >> that's the new winning. in other news this morning, reports say that tesla and solar city could announce their merger today. the two firms would then have to convince shareholders to back the combination. the move is part of tesla ceo's

elon musk's so-called master plan. he wants to offer a single source of hardware to power electronic cars. musk is the biggest shareholder in both tesla and solar city. we have black rock and tiger global, we've got musk here. >> right. >> we had last week it was ellis son's oracle buying net suite. nice work if you can get it. "squawk box" to acquire power lunch. news at 11:00. >> who signs off on that? >> glaxo-smith-kline and alphabet life sciences creating a new company worth $700 million focusing on fighting diseases by tarkting electrical signals in the body. known as bioelectronics. here's another story wooif been covering. florida's health department is confirming that the first cases of zika that were likely caused by transmission of local

mosquitoes in the local continental united states. four people coming down with the virus probably contracted it in early july. the centers for disease control in florida officials say that the area of concern is limited to a square mile in the winwood neighborhood of miami. this is a downtown area where places are tightly packed. it's an arts district type place. where you see a lot of tourists who come in. they've been actively looking around trying to find mosquitoes that have the zika virus and they haven't found any yet. it's no proof that it was not transmitsed by these mosquitoes. they say that's the most likely scenario. there are now 1600 cases in the continental united states. all the rest of them, we believe, are from travel abroad. it's just these four cases that have really spiked concerns. despite the warnings that this was very likely to happen this year, congress left for vacation without appropriating a emergency funds to fight zika. that's a huge problem because

they're now running out of funds to do this. in fact, some readers are now calling on congress to break their vacation, come back in and immediately appropriate some of the funding for this. by the way, think you're safe if you're not in miami. there's a story in the new york post that came in about how mosquitoes are swarming the subways of new york city. the warm and wet summer creating a bumper crop. stagnant water a breeding ground for mosquitoes. strap hangers seeing more than in the past. they swarm their eyes and nose when standing on the platforms. that's going for us. >> a little bit of good news, it's a different type of mosquito. >> it's a different type of mosquito. >> not the 80s egyptee. there are others that carry the chikungunya and other viruses that goes all the west to california and north to maine. that's a huge concern. >> becky quick, hobby

entomologists. >> i have concerns about all of these issues. >> let me just -- >> zika expert. >> is there anybody knows how much rain we've had? it's got to be a record. nobody cares. it's rained every day. you've got bugs everywhere. >> and congress is on vacation without putting the funding through for this. fantastic. >> here we go. we enter august on a six-month winning streak for the dow. the longest streak in three years. futures indicating we should start higher. nothing off the charts. but in the green nonetheless. european markets mixed. germany up a little bit. france down a little bit. oil quickly becoming the big market story once again. it is down again this morning. nearly breaking below $41 per barrel. we're at 41.11 guys. it's gotten whacked in the last couple of weeks. the ten-year yield, we're at 1.47%. maybe time to get the re-fi ready again. stronger against the yen and

gold is mildly lower. let's get a breakdown of what to expect in the week ahead in the marketsment joining us is jim tierney abcio. allen, why do they do it that way? they put a little slice in the middle. good morning. >> good morning. >> ubs owe portfolio manager. >> i don't know if you saw. there was a report out last week. this was something that i wanted to specifically ask you about. our friend leon cooperman who has been the show for many years saying that when it comes to the s&p 500, right now he thinks by the end of the year, it's up -- ends up 8%. that means if where we are today, up about 6%, we've got 2% to go. do you agree with this or disagree with this? >> i think the people are talking about a goldilocks snare dwroe scenario for stocks. you have a federal reserve not

worrying about the event of the day and going back to the original plan. the interest rate environment can help the stock market. but you have black swans. the crude oil story, the mosquitoes, the combination -- >> if oil continues to go down, it will take the stock market down too? >> most people priced in a $40 or $50 range in crude oil. if you break down below that range, you have a new world. they've talked about the transient effect. when does it become permanent? >> where do you stand on all this? >> i think we've come really far really fast. what's most interesting about the market is there has to be a change in the leadership groups. what led us in the first half, utilities, telecom and cyclicals, give way to health care and technology. >> when you look at the earnings

last week, earnings were great. why do you think we're expecting a pullback? >> up 9% since brexit. up 20% since the february lows. that's a pretty good move. we're 17, 17 and a half times earnings. >> does that mean you're sitting waiting for this to go down? >> we've sold a few things selectively. a little more than normal. >> andrew, the concern that you have lower interest rates and that might be driving the earnings. i haven't seen any studies that really break down what percentage of earnings are related directly to the interest rate environment. the fed starts to raise interest rates if you have another rate rant like a taper tantrum. you have interest rates go up quickly. we have to be careful of that at the same time. >> isn't the reason the stock market has been going up because interest rates are so low and there's no other place to find yield. you could very likely see multiple expand if you're looking at comparative other place toss put your money that

you're just not going to get any return? >> i think that's the exact issue. at the end of the day, this is supposed to be a market of stocks where companies have good earnings based on what they're doing as companies. not exclusively because interest rates are low. >> i think one of the key issues is, people are forecasting $134 of s&p earnings for next year. if we do that, that represents 17.5% growth year over year. i don't think there's a chance in the world we get there. with 1% gdp which is what we did in the first half, numbers have to come down. >> oil back to the key point. >> doesn't help. >> $40 doesn't help if oil goes back to $45 or $50, it's a different story. we're down 20% from the highs of crude oil. >> it's tough to see how we get double digit earnings growth next year. >> the gdp number got a lot of attention for being, quote, bad. the consumer part was better than expected. consumer is 70 to 74% of total

spending. i mean, can the consumer rescue this stock market? >> i think the consumer has been rescuing the stock market. >> gasoline prices are going to fall yet again. >> that helps. filled up for $40 this weekend. that was great. >> it doesn't get you -- >> look at the layoffs. we've seen bigger layoff announcements. caterpillar talked about layoffs. if you soo he that build, that takes the underpinning of the entire market away in terms of the consumer gets weaker. >> i think a big question is, you see the federal reserve over and over again, saying that business investments have been soft. why is that? why aren't businesses spending in this environment where it's so low? i think people have concerns about a new brexit. brexit, i think, is a troubling thing in the sense that it was over so fast. this was saying that everyone was nervous about and then it happened and in two days, the whole story is over. what's the next thing? i think the resolve that the

federal reserve has coming out of brexit can be unease eye. >> there's a coalition building in the house of lords in the uk to try to block the brexit. basically, their congress for lack of a better term, their senate is trying to come together and find a legal strategy to block the brexit. let's say it succeeds and we get headlines, brexit off. what would that mean for our viewers and their money? >> i don't know enough about the political process to tell you what the ramifications of that. >> let's say there's no brexit. >> brexit is on right now and doesn't seem to be hurting the markets. >> so if there is no brexit, would that be a leg up sh. >> you have to divide it between short term effects and long-term effects. they're concerned about the impact on england will be. england is 4% of the global economy. what is the impact of that. i think brexit is one of a number of things that can change things going on in the market. >> jim and alan, thanks very much. coming up, it was a weekend

of donald trump. the gop candidate kicking off controversy with the nfl, billionaire mark cuban sounding off on it and cuban also making his pick for november and guess what? it's not trump. plus, jimmy walker was dynamite. the 37-year-old golfer capturing his first major. first, this day in history.

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♪ welcome back toe "squawk box." jimmy walker was dynamite at the pga championship this weeken. >> dino might. >> the first major title. a huge birdie putt on 17. it was enough to fend off jason day. day amped up the game by sinking an eagle at 18. the check should provide some "good times". >> this was amazing. did you watch the end of this last night? >> unlike the guy that i'm filling in for, i don't like golf. i don't like to play it or watch it. >> there was more spends in this. i am not a huge golf fan but it

was amazing. it was down to the last shot. he controlled his destiny as long as he made at that final paragraph 5. you talk about trying to hit some of these putts. he hit one into the rough right before. pulled it off and held his cool for all of it. >> i was watching the honda 200 on nbc sports network. >> good plug. >> that was on cnbc and the formula one race -- >> that was how i spent my day. let's talk politics. i can give you tv if you want. the commission on presidential debates rejecting donald trump's complaints that two of the three debates scheduled to take place during the nfl games this fall. the first conflicts with a monday night football game and the second one with a sunday night game. on interview, trump accused clinton of rigging the debate schedule. >> i got a letter from the nfl saying this is ridiculous. the nfl doesn't want to go against the debates because they'll be pretty massive from what i understand.

i don't think we should be against the nfl. i don't know how the dates were picked. i don't know why those particular dates. >> you don't like the dates -- >> hillary clinton wants to be against the nfl. like she did with bernie sanders where they were on saturday nights when nobody is home. >> the commissioner says it's impossible to avoid all sporting events when it picks dates. the nfl sent him a letter regarding the scheduling conflict after the league said it never sent the letter. the dates were picked by the commission a year ago. >> september 2015. >> before the nfl decided on its schedule. little complicated little detail. let's talk about more politics. mark cuban throwing his support behind hillary clinton. he endorsed her during a surprise appearance at a rally in pittsburgh on saturday. >> maybe not. >> if you were going to hear the

sound, you would hear about cuban was swinging out at trump. he took the opportunity to bash trump. opening his remarks by saying, hello trump in russian. he bragged that his tv show shark tank beats the apprentice. cuban a pittsburgh native decided to support clinton because he says trump scares him. but he did it with a lot of bluster as well. joining us more is john harwood in washington. john, there's never been a dull moment in this campaign. >> there hasn't been, becky. it was a weekend, even apart from the issues that you guys were just talking about, the debates and mark cuban, that donald trump was driving his party crazy. the reason was he sustained an argument with the family of that fallen muslim soldier who attacked the parents and attacked him at the democratic national convention. here's donald trump about that family on abc. >> 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. plenty of people have wlit en that. she was extremely quiet. it looked like she had nothing to say. a lot of people have said that. >> contrast that remark with how hillary clinton handled the question of the mother of the benghazi victim who attacked her at the republican convention. >> my heart goes out to both of them. losing a child under any circumstances, especially in this case, to state department employees, extraordinary men, both of them, to cia contractors gave their lives protecting our country, our values. i understand the grief and the incredible sense of loss that can motivate that. >> now, in that same interview on fox, hillary clinton raised questions as others have about donald trump's sympathies with

vladimir putin, the russian ruler and donald trump seemed to affirm that argument in that interview on abc when he echoed putin he is justification for the annexation of crimea. this will be a continued whether donald trump is more sympathetic to russia than in america's best interest to be. >> hillary clinton will be appearing with warren buffett touting another billionaire endorsement, guys. i want to bring in another guest. ben white is politico's chief economic correspondent and a cnbc contributor. ben, there were so many stories to follow. we're looking at less than a 100 days until the election and things are heating up rapidly. >> yeah. this was not a good weekend for donald trump. we should start off by saying the way he talked about the khan family is morally reprehensible. paul ryan, mitch mcconnell. they agree with that. they sacrificed their son in

iraq. the first instinct that he has is to question them on religious grounds. suggest that the wife was not allowed to speak. she came out and said she was too grief-stricken to speak. >> she wrote a "washington post" op-ed on that. >> had that and the nfl, saying the nfl wrote this letter, they didn't write the letter. said on abc that russia had not incurred into ukraine. of course they annexed crimea. there are a number of fronts where donald trump was disastrous this weekend. the question is, that impact him terribly in the polls. he's done a lot of questionable strange things before. they haven't really hurt him. will these? i don't know. i expect when we see the polls come out, hillary clinton will have a bounce from her convention. it's still going to be close. it's still going to come down to the swing states is that we're all talking about. this is far from over. from a politico perspective and for fellow republicans of donald trump, this was a terrible weekend for him. >> you know, if you talk about some of the politicians, paul

ryan, mitch mcconnell, they said that they completely disagree with those comments. i don't think either one of them actually mentioned donald trump or stepped back from him at all. >> no. they didn't mention his name at all. they honor the sacrifice of a gold star family. that there's only one way to talk about the people, heroes o who sacrificed greatly for this country. there was no dee nuns yags of donald trump. he'll have to go further from this for republicans do this. >> what would he say? >> who knows what he would have to say to get it from congressional leadership. they don't want to be disloyal. there's a large segment of the republican electorate who is very much behind donald trump. big risk for prominent republicans to publicly distance themselves and renounce their nominee. i would not expect to see that. what they'll attempt to do is simply not talk about and talk about their own agenda and

senate races, house races. paul ryan is very actively out there promoting his own growth, agenda on taxes and corporate tax reform, the other issues. >> i don't know, what do you hear inside the beltway in terms of how this goes over, how this happens? inside the beltway is different than in wide swaths of the country. >> i think as ben described, republican leaders are going to treat donald trump at arm's length, kind of like the mess you pick up in your house. they'll hold it away from themselves. there are things that he's saying that are harmful to them. on the other hand, they're scared of his voters. if you have a paul ryan or mitch mcconnell come out and say i reject donald trump, there's blowback for them within their party. they're going to try to navigate

it the best they can. it's not very easy. it's especially difficult for senators in the swing states at that will determine who controls the senate next year. kelly ayotte in new hampshire, pat toomey in pennsylvania. rob portman in ohio, ron johnson in whichst wisconsin. they have problems every time donald trump sustains one of these losing arguments. >> ben, as bad as the weekend was for trump, what if hillary couldn't get a -- doesn't get a wum bump in the polls. what would that tell you about trump and his campaign and the american voter? >> that would tell me, first of all, that democrats should panic. all this time we've said democrats shouldn't panic. >> come off the convention for hillary and all this stuff over the weekend, if she can't get a bump off that -- >> it would be problematic for democrats. it would suggest that trump's electorate is locked in. i think most it already locked in. he's not going to lose a lot of

support. he's going to rise above the sort of mid to low 40s. he gets above that number and is close to 50, the democrats should worry a great deal. then they need to start looking at the russ belt states like pennsylvania, michigan as we talked about on friday. some of the states where -- >> ohio. >> ohio is dead heat right now. if she's behind in wisconsin or some of the traditionally blue states where there are a lot of blue collar democrats to support trump -- >> let's be clear about one thing. hillary clinton is ahead. it's a narrow lead. but she's ahead. that's nationally and she's also ahead in most of the battleground states. ohio -- >> [ overlapping talking ]. >> he's basically at war with the popular governor, that tells you something. >> it tells you that there are a lot of republicans who support trump that don't agree with john kasich in ohio and his attacks

on him. ohio is always a tough state. obama care i had it twice but narrowly. it's not a surprise that -- >> clinton is ahead in north carolina, in colorado, in virginia, in florida. >> on the money game, clinton has twice what trump has. 40 million to 20 million. trump is having trouble with the billionaire class. >> charles koch saying that another thing that thapd that didn't happen. he was going to vote for -- >> couldn't support either one. >> he called it blood liable. >> trump rebuffed the meeting with the koch brothers. they declined to meet with him. trump has a different version of history in almost every insta e instance. >> john good to see you. ben thanks for coming in. kanye west has a message for tim cook. let the kids from the music. we'll show you the hip hop artist's latest twitter rant in a moment. it's a question we get from some of our largest banking clients.

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little entertainment news this morning. kanye west taking to twitter with a message for apple ceo tim cook. make a deal with jay z for music streaming service title. apple give jay his check for tidal. stop pretending you're steve, referring to steve jobs. west is a co-founder of tidal. it's messing up the music game. apple is interested in buying tied ament. >> give me the money now is what he's saying? >> give me the money now. >> just give me the money and

we'll stop feuding with you. >> this would not be a $3 billion dollar like beats. if you remember that. it was bought originally by jay z for $50 million. even if there was a big multiple on that, you're not -- >> some of that is just -- pay up. >> headlines rich guy urges big corporation to make him richer. nothing wrong with that. capitalism. >> we should have kanye on. when and if this transaction happens, we should have tim and kanye together. in the meantime, will anti-establishment and anger cause more defects from the european union. that's next. plus, after nine years, jason bourne is back. i went to see it over the weekend. the top of the box office. the big money, the latest in the franchise made this weekend. we're back in a moment. & in a world held back by compromise, businesses need the agility

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welcome back to "squawk box." jay bourne is back at the top of the box office. matt damon stars in the super spy franchise. man, the audiences can't get

enough of this. the film taking in $60 million this weekend. >> okay. let's talk anti-establishment and populism. it is all that anger apparently fueling the 2016 election. also, across the pond. the same sentiment pushing the vote to victory in the uk. will france and italy be next? that's one. big quest out there. joining us now with more is the professor of international politic at tufts university fletcher school. a nonresident senior fellow with brookings institution. thanks for being with us this morning. your sense that we're a frexit may be upon us? >> no. i'm not as concerned about that. brexit is disturbing. in some ways, the fact that brexit happened is causing people in this country and continental europe about going the same route. if you look at public opinion polls in europe, after brexit, you've seen support for the

european union go up in germany and italy and france. that might not necessarily be sustainable. because the european economy is still stagnant. it does suggest i wouldn't count the european union out any time soon. >> dan, here's what i'm trying to get my head around. there's two things going. maybe they're connected and maybe they're not. there's this idea of populism and anti-globalization. are they the same thing is the question? >> that's a great question. i would say no they're not. in the sense of if you look at public opinion polling, there isn't that much hostility to globalization, at least the economic parts of it. things like free trade or movement of capital and so on and so forth, indeed, nbc, "wall street journal's" latest polls show the majority still support trade in the united states. >> dan, but both parties, we're talking about hillary clinton and donald trump who couldn't be two different people have the same opinion of things like tpp. >> that's correct. because it turns out that

opponents of trade feel much more strongly about it than advocates of free trade. a majority of americans, since 2008 have been supportive of the idea of free trade. if you ask people about the strength of their opinions, it's the protectionists that have a much stronger view about this. as a result, there are more vocal lobby and in politics, the squeaky wheel tends to get the grease. the other thing that i would point out, though, populism as you talk about it, really at this point is a very nice word for opposing immigration. that's the one area where you have seen some degree of hostility. both in the united states and in the european union. i would argue that's the thing that triggers. kind of trump coalition. even there the polls show a majority of in the united states believe that immigration is a net positive for the united states. >> how do you think about populism, if you will, i put air quotes around that and the anti-establishment fever or fervor if you will? >> i would say two things. the first is no doubt there is a

resentment in a large part of the united states that haven't done terribly well economically over the last 15 years and believe that the country is changing away from the way that he sort of have this nostalgic view of the way the country used to be. that's certainly fueling this kind of resentment. but the second thing, i would stress this, it turns out economic populism is not as popular as people think. there's a strong and vocal minority opposed to these things but that's far from the majority view in the united states and far from the majority in the european union as well. dan, you make it sound like people think their circumstances are worse. if you look at the data, there are huge pockets where people are worse off, where their standard of living has gone down and wages gone down. >> i don't mean to suggest they're incorrect in thinking. sometimes the people argue that it was so much better before and we all have nostalgic

continuinged views of our youth. go back to the 1950 ez, sometimes forkt there was gender discrimination back then. economically, it might be true for a lot of people. i'm not sure it's socially true for all americans at all. >> fair enough. dan, thanks for your perspective this morning. appreciate it. >> thank you. coming up, how low can gasoline prices go? oil prices back in bear marketer torrey. down again this morning by the way. most of the nation starts to see prices at the pump fall below two bucks a gallon? $1.73 in teaneck, new jersey. fill 'em up. later on today, don't miss out on this, bill fred frost's interview with jpmorgan chairman jamie dimon. that's at 1:00 p.m. eastern. stay tuned, you're watching cnbc. first in business worldwide. 's d network that gives 35,000 fans a cutting edge game experience.

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welcome back. oil may just be your biggest money story right now. rather, oil's recent drop. crude oil tumbling to a three-month low. it means it's back in bear marketer torrey. gasoline prices also following suit. down about 7% over the past month. jackie deangelis joining us with more. jackie? >> good morning, guys. gas prices astonishing most people for this time of year.

it's only august 1st and the national average for a gallon of regular gas is $2.13. it was $2.66 last year. now, typically during the summer, we do see prices rise. not this year. the problem, not just an a refi, so basically what's happening is this. refiners processing a lot of gas this summer because it was relatively cheap and while demand was stronger than normal, it wasn't enough to churn through all the product. so what happens now, well, they are going to reduce the runs at the refineries. some have already started making their winter blended gas instead and that's going to be until the inventories decline. there's a bigger story here and it's crude oil. you may have noticed as you said that the prices are down about $10 since the high in june. cheap oil brought these rig counts up, a fear now that higher production will only hurt the situation, not help it and seasonally, of course, summer demand in the u.s. is going to drop off soon. when it does, there could be more pressure ahead. barclays was out with a note this morning saying, and i love

this phrase, the drain is clogged and it literally s.things to think about when it comes to oil prices, not just that the major oil producers are pumping away but will international demand in europe and china hold up and the non-fundamental factor, the dollar, fed expectations will influence fluctuations and that will move the crude market. bringing it back to gas prices if we move lower from here sub 40 crude you could see the average go down $2 by labor day, pretty much unheard of and you mentioned in new jersey it already is. >> it is. i think it's the only thing that new jersey is known as having the cheapest of. you know, you're down at the nymex every single day and we've talked a lot about this on "power lunch" and how surprised are people surprised by the drop in oil? >> reporter: they are surprised and not. they were expecting it to come as a seasonal drop but they were expecting it in late august and sort of september and the fact that it's happening right now is

surprising people. we did think we were going to see another lower. it appears that it's happening technically speaking because that's really what they follow. if they break this $40 level, all bets are off. it could be going lower. >> to put a point on it. the market freaks out because it's a reflection of the demand picture and that's a reflection of a slowing economy backed up by the gdp numbers we got last week. do you think this is demand, supply or both? >> i think it's a little bit of both at this point but the supply problem we've been talking about for the last two years really never worked itself out so demand was always the caveat. demand was boosted we would see more of a balance and it's just not happening. remember, the street right now is looking for this rebalance in the second half of the year. a lot of estimates are calling for oil over $50. the companies, brian, you know from the earnings last week, they are not as optimistic. they are cautious and when the companies speak you should listen to them. >> the problem, of course, now once again many companies are operating at below their -- they have negative cash flow. >> right.

>> and that's. >> when you're paying dividends because you're borrowing you can only sustain that for so many quarters. really sets up a bit of a shaky situation. joining us now also matt smith, director of commodity research at clippard data. we know what's happened. what do you see happening with the price of crude oil? >> sure, good morning. i see it going lower from here. as you've just been talking with jackie, we have this glut here in the u.s., not only for crude but for products as well. we're actually at record inventories for the two of those. seeing 1.39 billion barrels. that's 113 million barrels higher than it was this time last year. so we have this glut in the u.s. of products and of crude. but additionally as well. something that i talked to you guys on back on june 10, when i said prices were going to move from 50 down to 40 was the fact that china has been importing so much crude, so much more than its demand needs so they have been stockpiling and the concern there is they are finally

reaching their brims and they are likely to see their demarched pull back because of that and so we' likely to see prices come under pressure going forward. >> and he brings up a great point because it's not just storage in china we have to worry about it's the crude oil storage here. so many people have been saying with all of this crude and gasoline where are we going to put it and the industry has come up with innovative ways. they are storing on rail cars and storing on loading and we'll have a storage problem, too. >> not to get too wonk, but in order to do what jacuzzi saying, you have to be in contango, future prices are higher than current prices because even then your cost of storage should be mitigated by the amount of money you're going to pay or make when you sell that good later on. true with every commodity. if contango starts to roll over, what's going to happening to all of this oil and storage? people will dump it on the markets because they will see the future profits get wiped out. >> we're seeing floating

storage, really strong levels already. we see off singapore, track this stop, near records in terms of floating and singapore is a parking lot and a lot of crude cargos do not have buyers so we're seeing it build up there. where the teapot refiners are in china, we've seen the crude offshore drop off as their demand has dropped so we are seeing floating storage being strong and that is, again, indicative of all this crude awash in the world. specifically relating to the u.s. we're seeing gasoline cargos going into the new york harbor and being diverted away. seeing one being diverted through the panama canal and through the west coast and there's all kinds of dynamics here and not only is there floating storage for crude but also for gas line now it seems. >> yeah, and the point you made, brian, is really important. if people start to dump some of that oil on to the market it only adds more pressure.

>> a pleasure. >> matt, thank you. >> thanks. when we return, jobs in america. the countdown to the next employment report starts now, and consumer products giant newell bronze posting better than expected results. new ceo will join us first on cnbc coming up in the next half hour. hello prashant bhuyan. co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson.

new this morning, irish is set to merge its china business with its rival in a $35 billion deal. goldman sachs downgrading equities. in this hour the deal landscape, the global markets and what you should expect this week as we head towards jobs friday.

we'll break down what you need to know. >> donald trump calling a personal foul against the debate committee over scheduling two debates during nfl games. >> i don't think we should be against the nfl. i don't know how the dates were picked. >> the debate committee's reaction. plus, what you can expect on the campaign trail this week is straight ahead. >> plus, jimmy walker was dynamite over the weekend. >> there's your champion. >> he holds on to win the pga championship taking home his first major title. the second how of "squawk box" begins right now. ♪ good times, any time you need a payment ♪ >> live from the beating heart of business, new york city, this is "squawk box. >> welcome back to "squawk box," everybody. this is cnbc, first in business worldwide. i'm here with andrew ross sorkin and brian sullivan.

let's take a look at futures. you can see there's green arrows. the dow futures right now indicated up by about 25 points and s&p futures up by two and the nasdaq up by five. >> andrew. >> making headlines this morning. warren buffett is the latest business leader to be campaigning with the democratic presidential candidate hillary clinton. he'll be introducing clinton at a campaign event in omaha which will highlight a study showing the benefits of her economic proposals. parent alphabet forming a $715 million joint venture. new companies are going to be focused on fighting diseases through a field known as bioelectronics which targets electroimpulses to help treat illness. looking for upbeat investment advice this morning, this won't be it.

gunned lach self-says sell everything. he's also gone massive negative on treasuries. he does, however, like gold and gold miners. didn't say anything about bitcoin but maybe he likes that, too. brian. >> shares of solar city are halted right now. news pending earlier reports that tesla and solar city could announce they have agreed to a deal. the two firms would have to convince shareholders to back the combination. the move is part of elon musk's strategy of his master plan. musk wants to offer consumers a single source of horde wear to power electric cars and has the biggest shareholder in tesla and solar city. halt federal and when stuff happens and when it breaks we'll have it right here. meantime, another busy week for economic data and earnings. i know you're excited, steve. you get the july ism manufacturing index. tomorrow, june personal income and spending and july auto sales.

wednesday, the july adp report and ism and thursday the bank of england has its jolly old policy meeting and finally the week is topped off by the july jobs report on friday. now as for earnings, more than 100 more companies in the s&p 500 will release their numbers this week, including but not limited to pfizer, p & g, twrner, 21st century fox, the aforementioned tesla, viacom and kraft/heinz. >> goldman sachs has cut its three-month rating as its risk indicator has turned neutral suggesting markets are more vulnerable to growth and policy disappointments. goldman sachs says the recent rally in stock has been driven by light positioning into the brexit vote and a search for yield. >> also, some notable comments from new york fed president bill dudley earlier this morning in indonesia. he says the markets should not be ruling out the possibility that the federal reserve will actually hike interest rates

once again this year if the u.s. economy improves significantly. still, dudley warns that lackluster global growth is limiting the fed's policy options. he is urging caution on raising rates following the brexit vote and the big gains for the dollar. >> stocks looking to bounce back this week after that disappointing gdp number on friday. the focus this week will be on friday with the jobs numbers. steve liesman joining us with more on what we can expect as we just noted -- you were fist pumping. were you excited. >> been kind of slow. all about earnings and politics. who wants to cover politics. you were right to read dudley without appropriate skepticism. they might do it this year if the economy improves significantly. he's raised the bar there. question of the week, will 177,000 jobs and a 4.8% unemployment be enough to calm fears after the disappointing 1.2% gdp report. coming in at half what the

street was looking for. forget rail hikes and the worry now is about whether recession is ahead and some people sailed that. the big story capital spending. what's happening with business? it's now down three quarters in a row, negative that is, part of it is the decline in oil field summer and some are blaming broader uncertainties around brexit, the recent decline in earnings and the overall regulatory environment. great op-ed in the "wall street journal." new york fed president bill dudley saying in indonesia business investors will likely, quote, remain soft as profits have stagnated and election year uncertainty could act as an additional depressant. it whacked half a point off of growth so 1.2 would have been 1.7. longer term workers won't have the machinery and technology to increase improvement. business investment that is

shrinking on friday, we see how things meet. are businesses cutting back so much that they aren't hiring and that would co-mean consumers are going to have a hard time holding up this economy. >> okay. let's get a check on the markets right now after both the dow and s&p snapped a four-week win streak. joining us right now is stifel's fixed economic and our cnbc contributor. good morning. you heard goldman sachs. you heard me read that. does that make sense to you? >> it does. >> you've been negative on it for a while so maybe it's an unfair question. >> i see the widening disconnect between the underlying economy and the earnings fundamentals and that gap continues to widen to almost historic levels if you look at net worth relative to personal income so i think the markets are very dangerous here and i've said that before, of course. i think another analogy i've given speaking to what jeff

gundlach, a few years ago i used beer goggles saying qe reduced at asset prices and there's been a search for yield that has made investors forget about the risks of capital loss only for the reward of a yield that is pretty microscopic. >> i want to find out what you're doing in that. >> are we wearing beer goggles. >> alerts on solar city. solar city halted for news. there had been that merger offer from tesla that had come recently, and so we were expecting this, but there are some strange alerts that are coming out with this. they are saying on july 31st tesla and solarcity entered into an agreement and planned for a merger. there is a termination agreement. if the merger is terminated under certain circumstances, i don't know what those are, solarcity will be required to pay tesla a termination fee of

$78.2 million. for the solar city shares every share of common stock will be converted into the right to receive 0.11 shares of tesla common stock. par value of .001 cents per share. >> well, that's -- there's the number, becky, so if -- if at . -- here's where our viewers are hopefully matter than i am. i did some quick math hon my iphone. .11 shares of tesla at 2 347b9 34.79 is 29.88. >> solarcity closed at 26.70. >> and it's already trading up. >> i want to be clear, folks. i'm just doing .11 on tesla's closing price on friday. may be wrong. >> stock transaction, not cash, burks again, that number would indicate it's below where it closed on friday and below where solarcity was trading in the

pre-market before it was halted, it looks like. >> if this is right, it's a take under. >> i should also mention that there is a go shot provision for this for 45 calendar days following the signing of the agreement. the company may solicit, discuss or get into any alternative proposals. not sure who the buyer will be on that. >> very hard to think that somebody else is going to emerge. >> andrew, this is your world, deals, right? if you're solarcity and you've already got this sort of, you know, combination because of must you've got to put the go shop provision in there, dow do you not? >> hey, we're looking for the buyers. >> it's an insurance policy to -- when the shareholders sue, which invariably they will. >> it's to suggest that they have tried their best and i emergency they will hire if it doesn't say already that they will hire a bank and they will give them an incentive knee to go out and try to find somebody and perhaps that will happen and unlikely given that elon musk is so tied to this business nobody

as a buyer wants to step into the -- into a deal like this because it becomes particularly complicated. >> i think we're -- we're getting, again, to the numbers here, and this is what everybody ultimately cares about. if you're a solar city share herald, how much money am i going to make? the initial reaction and math is correct, you're not going to make anything off this deal because at .11 tesla shares you're looking at high 25s and maybe low 26s depending on where they price tesla stocks. >> why is the stock trading at 28.68? >> depends on what the .11 -- >> is not trading right now. still halted for news. >> so the numbers we're looking at are not wright. >> the numbers we're not reflective active trading. we're supposed to be talking about this at 8:00 a.m., less than an hour from now and the numbers you're looking at right now, the stock is halted. >> okay, fair enough. >> yeah. it is a $2.6 billion merge and

solarcity's market cap is 2.65 billion and phil confirming it doesn't look like there will be any kind of a premium paid. >> that's what the stock was frayeding at before saying this is basically turning into a take under of all things. >> yeah. >> meantime, let's get back to our conversation about the markets. you had tipped us over on the beer goggles idea, back to lindy and beer goggles. are we wearing beer goingles? >> if you can accuse anyone wearing beer goggles it's the more hawkish members of the fomc keeping the idea of a near term rate increase on the table. the disappointing gdp report and talking about an average growth rate of 1% across the first six months of the year. the business investment continuing to exacerbate the steep downward trend. really looking to the consumer as the sole support, but, of course, without robust job creation and income growth we would expect the consumer to

pull back markedly in the second half of the year so really no, quote, rebound in sight and the downside risks have diminished. all of the data supports the idea that the downside risk has increased going forward. >> let me just push back a little bit because there is an optimistic scenario or not quite a dire scenario. i don't know how optimistic it is, especially when you have to hang your hat on 2% growth and that's this. the inventory downturn that we saw took off 1.2 percentage points of growth. that is, if we weren't de-stocking the shelves inextricably we would have had a 2.4% growth. government spending has to decline and not expected to continue which is to say it won't be that hard in the third quarter to get back to 2% growth. how do you respond to that? >> i would say, first of all, strip out all the negative components certainly you can make the growth report that was quite impressive and going forward the biggest thing we have to look at is the disconnect between the relative strength of the consumer and the

very strong weakness or very significant weakness on the business side. businesses are not investing or growing or developing. they are not creating the type of job and income growth needed to support that above 4% activity on the consumer side, so forget government. forget inventories for a second and just look at the two key components of the economy and without businesses growing i really don't see the ability for the economy to rebound above 2% in the second half of the year. >> and now we have questions about the consumer that i think the ceo of ford laid how the when they reported earnings talking about a second half downturn or a year over year decline in retail sales. we've seen some really sketchy comments from some restaurant companies talking about come skittishness on the part of the consumer so that's also -- >> debby downers. >> the trouble, andrew, when you read "the journal's" op-ed from the weekend neither candidate provides in their opinion a pro-growth strategy. trump has talked about reducing

regular lake, perhaps reduce taxes, but other side of the trump coin there is the concern about protectionism and tariffs and, of course, clinton with her companies have to pay their fair share so it's hard for business look to the horizon and say help is on the way. >> what are you going to do about it, if you were really managing money, what are you doing? >> i'm of the opportunity, to meet u.s. stock market is the most expensive in the world. the bert opportunities are in emerging markets flower bear markets over the past four or five years. a lot driven by commodities. i'm in a big fan of gold and silver? >> linds. >> still facing the lackluster activity, still the prettiest girl in the ugly girl contest. u.s. economy is still growing and relative to our counterparts in japan and europe, we're still

far outpacing what we're seeing in terms of activity abroad. >> prettiest girl in the ugliest girl contest. glad i didn't say that myself. appreciate that very much this morning. peter, thank you. >> when we come back. the ceo of newell rubbermaid, newell brands, talks about the strength of the consumer and its most recent quarter. and later a vulture is circling. wilbur ross is our guest and we'll talk trade and what he sees shaping up in this economy and election season. "squawk box" will be right back.

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it is time now for the 9:00 squawk" ceo call. consumer goods company newell brands which owns brands like el mers glue, mr. coffey and sharpie markers and a number of other things beating top and bottom line expectations in the last quarter. the first report since newell combined with fwelo brand powerhouse jardon corporation. this is very fortuitous timing and sometimes it just works out like that. did a segment on how the consumer may be rolling over. you sell everything to everybody. is the consumer rolling over? >> we've had a very good first quarter together, top line beats and strong bottom line beats.

>> this is not accounting tricks or buybacks? you actually made more money. >> part of it is the jardon business but the core sales growth was up 5% globally and in north america up 6.7% in the second quarter. >> why is all we hear for the last, i don't know, five years, is that the consumer will imminently roll over? >> i think the environment -- our market growth, for example, a good measure of consumer involvement in our categories is pretty much where it was about a year ago. i always encourage my team to -- to think about are ideas trumping the macro and in the consumers good space you have to be orient that had way and focused on brands and innovation and think you can beat the market growth. >> what's hot right now? what part of the consumer then is spending? >> look, we play with everyday products and basically in every household in the u.s. and in every room in the house, so we're -- we play in lots of different segments. we had strong growth in writing. strong growth in our baby gear business. strong growth in food

preservation and produce preservation and strong growth in yankee candle and the appliance business so in the heart of our business we saw a very, very good quarter. what drives that growth sin ovation and brands. you've got to come to market with differentiated product propositions. consumers see value in it and they are willing to pay for and we did that very well in the second quarter. our innovation funnel probability strongest it's been in the last five years. >> go ahead. >> what type of things do you do for yankee candle company? if growth was strong there, what's an innovation in a candle in. >> it's interesting. one of the things that that group is doing really really well is customizing candles. can you upload a pdf of a picture and put it right on the front of your candle. >> look at that. >> you've got your own personally branded yankee candles here. >> wow. >> customization is really interesting and new threat of growth for a business like yankee. all kinds of different dimensions that you can create

differentiation with. something as clever as customization through yank and an idea like extend fit car seats for babies, sitting rear facing longer is the safest position you can be and we just launched an idea based on a differentiated product design that allows you to have your child sit rear facing longer because it's more comfortable and extends the leg pog and your child is not bunched up. >> may be a little off kilter here. we talk about how houses steal business from things. if you buy a house and you're saving money, you know, you won't go out and buy a bunch of jeans. birth rates are up dramatically on the table. i have a year and a half son and surprise, becky having and you wonder if that is siphoning money away from other parts of the economy as well. if people are having kids, their purchases are very specific. >> our baby business grew over 11% in the second quarter. >> it it really.

>> i don't think it's driven by the macros. i think it's driven by the innovation and the strength of the graco brand. >> you have a new brand baby boom. >> certainly benefit from tailwinds. wouldn't say we've got them but ideas trumpet macro n.consumer goods if you're orient that had way can you grow. >> in terms of retail charges imassume walmart is your biggest seller. when look at walmart relative to amazon, walk us through how that looks right now. >> our philosophy is we want to win with winning cut mers and want to reach consumers where we shop. we had very strong e-commerce growth but not just in pure play e-commerce like amazon and like bricks and mortar.com and target.com and in our direct to consumer direct activities which quite frankly the jardon team was more involved in. >> what percentage is direct to consumer right now? >> direct to consumer, small bit, $150 billion business in

the u.s. and growing small double digits and the vast majority of our e-commerce business closing in on $1 billion globally, pure play, amazons. >> do you get numbers from walmart as to whether they sell in a bricks and mortar store? do you actually get that data? >> my sales team can see dotcom what's bricks and mortar. we track it separate from dotcom. important to understand where the consumer is and we have to make sure that our share of market in the developing channel is greater than our share of market in the general market because otherwise we mix our shares down as consumers increasingly shift to those channels so really, really important trefnltds i couldn't be happier with the performance of the company in the second quarter, particularly in the environment that we're in where we're going through a massive amount of change so the ability to deliver which simultaneously changing is -- is quite a good outcome and i couldn't be prouder of the team for doing that. >> mike.

thank you for coming in today. >> sure. glad to be here. >> when we come back, hillary clinton defending her record over the weekend as she wraps up campaigning in key battleground states. meantime, donald trump is pushing to reschedule two presidential debates. we'll get you up to speed on what you need to know for the political front this week. "squawk box" will be right back. ♪ [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.

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coming up, jimmy walker capturing his first major title holding off jason day by one stroke. highlights coming you have after the break and wilbur ross joins us to talk the markets, the economy and, of course, the political landscape. has a new op-ed out. take a look at u.s. equities futures this hour. dow looking to open 27 points higher. back in a moment. you're here to b

welcome back to "squawk box" this morning. among the stories front and center, a big deal to tell you about. tesla and solarcity have announced a deal to combine in an all stock transaction. both companies, of course, controlled by entrepreneur elon musk. we did know the transaction

would come. solarcity being valued at 25.26 a share. for the next 45 days they will be out there looking for another buyer. >> this stock is actively trading. before it was halted it was up by as much as 7%. it gave up that 7% gain and is now down by 4% as a result of the price. >> meantime, two economic reports on the agenda today to keep your eyes on, august getting under way. we'll get the institute for supply management. july manufacturing index as well as june construction spending. both come out at 10:00 eastern time and then the other big transaction in the morning, perhaps even bigger, uber merging its china operations and the uber founder will join dd's board. uber throwing in the towel in china where they have been losing a ton of money.

a big transaction and a lot of people will be talking about that. >> watching this weekend, jimmy walker was all over the pga championship and leading that for most of the four days of the tournament. walker winning his first major title at waterlogged baltusrol golf club in new jersey. a key bunker shot on 10 for a birdie and huge birdie putt on 17. enough to fend off jason day. walker is an avid astronomer and sends us pictures online and nasa has even purchased some of his pictures. he's sponsored on the pga tour by the telescope company celestra. >> let's talk politics. john harwood joining us now. job, start where you want because this was a -- i don't know how else to say it. it was a heck of a weekend. every day you picked up a paper and trump was on the front. >> reporter: well, brian we talked last hour about republican concerns about the fight that donald trump picked with the family of that fallen

muslim soldier that criticized him at the convention, but there are also rising concerns about his attitude towards vladimir putin and russia. those were fanned last week when donald trump publicly invited russia to hack hillary clinton's e-mails. here's how hillary clinton addressed theish iyesterday on fox. >> we know that donald trump has shown a very troubling willingness to back up putin, to support putin, whether it's saying that nato wouldn't come to the rescue of our allies if they were invaded, talking about removing sanctions from russian officials after they were imposed by the united states and europe together because of russia's aggressiveness in crimea and ukraine, his praise for putin which is i think quite remarkable. >> reporter: so what did donald trump do yesterday? he actually backed up vladimir putin again with respect to the annexation of crimea.

>> i have my own ideas. he's not going into ukraine, just so you understand. he's not going to go into ukraine. you can mark it down, put it down, take it anyway. >> he's already there. >> there in a certain way. have you obama there and frankly that whole part of the world is a mess under obama with all the strength that you're talking about and all of the power of nato and all of this in the meantime he's -- he takes crimea. he's sort of -- >> but you said you might recognize that. >> i'm going to take a look at it, but the people of crimea from what i have heard would rather be with russia than where they were. >> reporter: there you have donald trump seeming to justify russia's seizure of crimea. this is something that foreign policy experts in the united states are not pleased with. they were criticizing him yesterday for saying that. voters are going toe have to sort it out. we do have one snap poll post convention from cbs this morning which shows hillary clinton moving to a seven-point lead

over donald trump, 46-39. i caution everybody to discount polls taken immediately after major news events, but that's one indicator we have right now. >> john, thank you very much. john haarwood. in other political news donald trump is doubling down on trade arguing hillary clinton switched her stance on the transpacific partnership. at a press conference the gop nominee saying clinton was for the tpp. he called the trade agreement a horror show and also said, quote, it would be almost as bad as nafta which her husband had signed and which he says destroyed the country, destroyed manufacturing in the united states. joining us right now is well burr rocks the chairman and ceo of w.l. ross-and-company and recently opinioned an op-ed titled we need a touch negotiator like trump to fix u.s. trade policy and wilbur, thanks for being here today. >> well, thank you for having me on. >> let's talk about trade because it's something that most

business leaders say that they want to see free and open trade. now it comes down to whether you think these adwreemts that we've negotiated to this point are free trade or not, and that's where you take a big issue. you don't think we get a fair shake in many of the trade deals that we've signed. >> i think there's a big difference between the impact of trade agreements on corporate america and the impact of them on mr. and mrs. america. corporate america has adjusted to them by investing lots of capital offshore. it's fundamentally a lot of these trade agreements have added to the outflow of factor yield from the u.s. to other countries, so corporate america can take very good care of itself. the problem is it leaves behind the jobs. what we're doing is we're exporting jobs and importing products instead of exporting

products and keeping jobs. >> how do we fix that because, look, these trade agreements have been in place for a long time. we can say we want to renegotiate them but it's not so easily done. if it winds up that we shut ourselves off from maybe 959% of the consumers in the world, will we still fare okay? will we do okay under those scenarios? >> well, first of all, we're not cutting ourselves off from 95% of the consumers in the world. we are the largest single marketplace. a number of people, you have to multiply by their disposable income to get to market size. we are the biggest market. the problem with our trade agreements is several things. first of all, we usually make our concessions early in the process. the other entities make theirs later, but we don't have any mechanism. no automatic snapbacks in most

of these agreements and, therefore, the later concessions from other countries either don't come or come later or get watered down. second, there's never ever any automatic reopener if the trade agreement didn't work out the way that it was supposed to. so whereas with nafta the clintons said -- bill clinton said that it would create at least 200,000 jobs by 1995. nafta was signed in 1993. in reality we have lost several hundred thousand jobs and our trade deficit with mexico has soared. it's not mob to say that that agreement was a net job creator. it wasn't. when you have a net trade deficit in manufactured goods, you're taking jobs out of the country. >> again -- >> tpp -- >> sorry, go ahead. >> the tpp, according to cnn,

hillary clinton lobbied for it 45 separate occasions. now she's suddenly is saying now that bernie sanders and donald trump have oppose it had, now she's suddenly saying she opposes it, but you notice she hasn't said what did she miss the first 45 times she recommended it nor has she said what it is she would do to change it to make it better. >> and there is there was the uproar with terry mcauliffe saying she's in favor of it and if she gets elected she will be back in favor of it. >> enwhat do you think of the trade agreements? any way to reopen snem. >> yeah, what's needed in the agreements is automatic mechanisms for simultaneity and there should be forecasts of

what they should do and if other countries use non-tariff barriers because our trade agreements for the most part don't deal with the non-tariff barriers and usually burdensome customs and inspections, great delays in paperworks all kinds of ways, fiddling with the value-added tax which is one of the biggest abuses of all. the agreements just don't address many of the things that other countries use to hurt us. take v.a.t. all the big trading partners of the u.s. have a value-added tax. we only have a corporate income tax. value -- add tax under wto rules is rebatable and is rebated to the exporter when the goods leave the country, but the wto will not permit american companies to receive rebates of their corporate income taxes on

their exports. >> right. >> our congress three times tried to pass laws that would conform with w wto. every singl time wto said not good enough. american companies can't get taxed rebates on exports even thundershower our competitors do. >> it was written in large support of donald trump and his views on trade. i want to get your thoughts on some of the comments he made over the weekend and comments made about drew. as you know, there's been a bit of a controversy about what he said with the khan family and also with ukraine and separately with the nfl. harry reid said this over the weekend said donald trump is a sexist and racist man who insults gold star parents, stokes fever muslims and sows hatred of latinos and he should not be the country's leader and

republicans have a responsibility to do that. >> i watched the original statement that trump made and frankly while i think it was a bit ill considered i thought he was joking about it. i don't think that he really was trying to insult anyone, and i think the very strong commendation by vice presidential nominee pence tried to clarify that situation. i think that's not really what trump was saying. trump was focusing on a very different issue which is a very real issue and that is the problem of the muslims who are doing bad things. i don't think that he was really intending to attack that family. >> although he's just tweeting this morning more about it and says mr. khan who does not know me viciously attacked me from the stage of the dnc and is now

all over tv doing same. nice. would you rather he stop? >> it was a very vicious attack. there was no basis for mr. khan saying that donald trump has never read the constitution of the united states. he whipped out a little copy of the constitution and a very dramatic, very stagey activity that was very direct attack. it was probably a very effective attack but i don't think it changes the issue. there are muslim jihadists in the world. there are people trying do harm to the u.s. and i saw on one of the morning shows today a calculation that every 84 hours during the last month there's been some sort an attack by muslim terrorists somewhere in the world. this is a real problem and it doesn't go away just because of the sacrifice that the son of the khans made of his life.

those are two separate things. my heart goes out to any mother who has lost her son, any father who has lost his son but it isn't really the issue. the issue isn't all muslims. the issue is the muslims that are trying to make trouble. >> all right. wilbur, i want to thank for joining us today and would love to see new studio to talk more about the trade issues. i think it's something we'll hear more about over the next 100 days. >> i'm certainly going to try to make us hear more about it. >> thank you. >> all right. coming up, google parent company alphabet getting into the life sciences business with glaxosmithkline. don't worry. they are not being boumpt the plan is a $700 million bioelectric venture treatment. what does a bioelectric venture treatment mean? more on that after the break. meantime, check out the futures.

dow jones indicating a mildly higher opening. the dow coming into august with a six-month winning streak, the longest in years. "squawk box" will be back after this. okay, so what's our latest data say? our customer is a 21-year-old female. heavily into basketball. wait. data just changed... now she's into disc sports. ah, no she's not. since when? since now. she's into tai chi. she found disc sports too stressful. hold on. let me ask you this... what's she gonna like six months from now? who do we have on aerial karate? steve. steve. steve. and alexis. uh, no. just steve.

just steve. just steve. live business, powered by sap. when you run live, you run simple. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up.

coming up, when we return google parent alphabet getting

into the life sciences business and at the top of the hour former vermont governor and presidential candidate howard dean is also going to join former new york congressman rick lazio to talk about the race for the white house. check out oil at this hour. wti crude at 41.15. more on the global markets straight ahead when "squawk conditions in a moment." people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the world. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud is built for.

a little zika this morning florida's health department confirming the first cases of

zika likely caused from local mosquitos. four people caught the disease in early july. officials saying the area of concern is limited to a square mile in the winwood neighborhood of mime. 1,600 cases in the continental u.s. all a result of travel abroad and despite the warnings congress left for vacation without appropriating funds for zika. the republicans approved it in the house and democrats blocked it and a story in "the new york post" today talking about how mosquitos are swarming the subways in new york. the warm and wet summer creating a bumper crop and city officials saying they are seeing more mosquitos than in years past. different types of mosquitos and nonetheless worries continue about zika. >> we should also tell you glaxosmithkline and alphabet's life sciences unit are teaming up to create a new company focuses on fighting diseases by

targeting electrical signals in your body. meg tirrell joins us now with a special guest. meg, good morning. >> good morning, becky. joining us now is the chairman of vaccines at glaxosmithkline and now the chairman of newly created galvoni bioelectric next. thanks for joining us. >> thanks for having me. >> the first question we need to ask you is what are bioelectronics? >> bioelectronic medicines are very small devices, the size of a rice grain, and that contains a lot of electronics in them that are able to either simulate or block the electrical signals that our brains sense through our nerves to control the functioning of our organs, and by doing that treat a number of diseases we have shown in a number of animal mod that's we're able to associate chronic diseases like that. able to show abnormalities in the electrical signals in the nerves. >> not an entirely new idea. things like

pace parque which work with electrical signals. this is so much summarily and can you treat different diseases. >> it is indeed based on something that already exists and is common straight, stimulating or block nerve signals can impact a particular disease. what we're doing here is we're going very, very small at a nano scale and very close to the organs to make sure we only impact a given organ and through implanting the device very close to the organ on a nerve, you know, impact type 2 diabetes and asthma and inflammation. >> let's take type 2 diabetes and how this would work for a patient. >> the patient would go to the doctor and the vision is to have a device that's implanted in the nerve just leading to the pancreas, and that device ultimately will be able to read

the electrical signals that the brain is sending to our pancreas and that device may also be able to measure glue close levels in our blood and decide, for instance, to stimulate the blood to make more insulin. >> tell us about the partnership with google. what did they bring to the table and why were they the right partner in. >> really exciting partner. discussing it over the past several months. a very common vision of integrating electronics and big data analytics and technologies with medicines and biology and is the company in the alphabet group of companies dedicated to, that and they bring to us the engineering capabilities, the electronics, the low power technologies and the wireless technologies that are critical to the devices that power and extract information from them.

we will be bringing the vision for bioelectronic medicines and of course our 300 years of experience in medicines and human biology. >> how big of a market is this potentially? we think about traditional drugs stimulating the chemical systems of the body. could this be as big as our current medicines market now? >> wildest dreams, frankly i think this is a whole new industry as big as the pharmaceutical industry possibly. phamaceutics impacts biology and there's a whole new world that we're opening dealing with electrical signals to connect with our biology and change our functioning. we've shown in a number of animal models we can treat any chronic disease we've tested so potentially with a small number of different devices that we can implant on different nerves we may be able to treat a whole series of chronic disorders so it can be very, very

significant. >> what are the limitations we have right now in making this a reality? >> the limitations are around sizing. they are very, very small. they are around power. power requires energy and energy means heat and heat doesn't go well with biology so we need distant powering or wireless powering and another limitation or gatekeeper will be the surgical methodologies we'll use to implant the devices. we're integrating all the challenges into the way we're designing the first generation device. >> thanks for joining us today. >> my pleasure. thanks for having me. >> andrew, back over to you. >> thanks for bringing us that conversation. when we come back we've got a different conversation on the table. the deal now is official and we'll get you up to speed on the details right after the break and former governor howard dean and rick lazio join "squawk box" in just a moment.

elon musk's master plan, new this morning, tesla and solarcity combining in a $2.2

billion deal. >> decision 2016. donald trump under fire after controversial comments about a fallen soldier's parents. while hillary clinton secures a couple of key endorsements from business leaders. we have the latest in the race for the white house straight ahead. >> a new harry potter tale hitting shelves in the world once again under the wizard's spell. the final hour of "squawk box" magically begins right now. ♪ magic, magic, magic >> live from the most powerful city in the world, new york. this is "squawk box." >> welcome back to "squawk box," everybody. this is cnbc, first in business worldwide. i'm becky quick along with andrew ross sorkin and brian sullivan. joe is out today. we've been watching the futures this morning, and last month was the second best month of the year for the markets. you're seeing things start on a good note as well for the bulls. right now the dow futures up by about 38 points and s&p futures up by 3 and the nasdaq up by 9

and if you take a look at oil prices this is where a lot of people have been focusing. check this out. wti is down once again today. it's down another 30 cents to $41.30. it was a decline of over $2.50 for the week last week, and this is something that has a lot of people concerned as they start to wonder how much of this is a demand picture and what this means around the globe. brian. >> today's top corporate story tesla buying solarcity in an all stock deal worth about $2.6 billion. here's the problem though. solarcity shares are at 27.30, below the price it closed on on friday. a conference call of the two companies just getting started and we'll monitor for you and bring any highlights to you. >> and the other big transaction, uber merging its merge with rival didi in a $35 billion deal. joining us now is ed lee. has uber effectively thrown in

the towel? >> they are throwing in the towel. i think also they were under a lot of pressure from their investors to start out the china side of the business because they are losing money over there. losing $1 billion a year in sort of this protracted fight with the main rival didi which is a home grown rivaling service and they are both doing and paying out and making it cheaper for riders to ride those services to get market share. in the meantime they are losing money on every father. >> ed, does this make any sense? you have uber which up until this morning was ostensibly worth $60 billion. by the way, a lot of similar investors and same investors in both uber and didi, now worth $35 billion. does that math work anymore, or do you say -- >> we should be clear. >> that maybe the $60 billion is not there. the $60 billion now, referring more to uber's value outside of

china, right? so they are trying to -- their china operations were a subsidiary or a separate valuation or had a separate sort of business and separate sort of investor group in a lot of ways and, you know, that part of it was just not doing well at all. spending money, and with this dooep deal, uber gets a piece of this combined didi uber operation which has a slightly higher valuation and their overall valuation, the u.s. and the other operations are still worth $60 billion to $70 billion. >> the $60 billion to $70 billion valuation was always ex china? >> that did not include, that and this deal with didi now gives didi an investment in that uber proper -- the -- the uber outsider china operations and gives it a higher valuation or slightly higher valuation than what uber was at before so it's

a complex transaction. a lot of moving parts to it. the china piece was always weird, always unusual partly because they were operating under sort of the weird gray area that the chinese government created for ride handling services. only cleared that up like a week or so ago and made it illegal which paved the way for this transaction between didi and uber. both companies were lose money and when they combine or if they combine and this goes through it gives them both a chance or gives the combined company a chance to finally make a profit on each ride. >> and real quick, does this set up an ipo for uber? >> yes. also, again, the reason why uber investors were pushing for this deal or some kind of deal about china, it clears the books in a lot of ways or allows unier to spend more of their money in places where they are profitable in more developed areas. more developed areas around the world. >> ed, we appreciate it.

other news that's breaking that brian has got. thanks so much. >> another day and another deal for verizon. they continue to transform their company. verizon is buying little known fleetmatics for $60 a share or $2 hadn't 4 billion cash. in plain english, what they do is they help track basically kind of like an uber-esque thing, gps management, what they call mobile work force solutions and fancy slang for basically we're going to keep an eye on you. this is a fat premium. if you own fltx, the stock closed at $43 on friday and a $60 share deal so you're looking at about 40%, 39%, 40% premium for fleetmatics and verizon buy aol and most of yahoo and fleetmatics. so verizon moving into this sort of software workforce and ad-driven solutions type

business and also tracking your car. >> great. we'll continue to watch this as we hear a little bit more about it. let's tell you about some of the other headlines as well. new york fed president bill dudley saying the markets should not be ruling out the possibility of another interest rate hike this year. there's a caveat though if the united states economy improves significantly. he was speaking in indonesia earlier this morning and also warnings that lackluster global growth slimting the fed's policy options and is urging caution on raising rates following the brexit vote and the big gains for the dollar as well. goldman sachs is cutting its three-month rating on equity to underweight. its risk appetite indicator has turned neutral and that suggests markets are more jetblue to growth and policy disappointments. doubleline ceo jeff gundlach says sell everything and says investors appear hypnotized and has gone maximum negative on treasuries. gundlach likes gold and gold

miners. investors struggling to find value in the markets near record highs but so-called cheap stocks cost more than you bargain for. that's what we're looking at time. mike santoli joins us today. >> buying the cheaper stocks has been quite painful. coming into the year saying i'll buy the ten cheapest stocks based on the expected earnings for the year, you're down 9.5%. we'll take a look at the tale of that tape. up 6.3% for the broader s&p 500. some of the names, ford last year got hurt on a pretty disappointing result. it was one of the cheapest stocks in the s&p coming into this year so you see that auto stocks look dirt cheap at least on the surface ant big airlines as well. gilad sciences, good-year also auto related. all of this is going on at a time when people came into this year value as opposed to growth investing should probably start to outperform. it's really been complete lit wrong bet. why is that?

people want more stable companies that are perhaps more expensive on earnings but bay a good dividend. we know that and we have a mature part of the market psych. can you not rely on profits being there ahead and the question now hangs over it is this now the makings of finally that value resurgence when cheap gets cheaper. ultimately it turns but it's been very, very frustrating for value sensitive investors for a while now. >> mike, thank you for that. >> check out mike's full article on cnbc.com. meantime let's talk politics. the bat sonl. hillary clinton and tim kaine touring the rustbelt while donald trump defended his criticism of the khan speech and his wife's silence at the dnc. >> his wife, if you look at his wife. she was standing there. had nothing to say. maybe she wasn't allowed to have anything to say, you tell me, but plenty of people have written that. she was extremely quiet and it it looked like she had nothing to say.

a lot of people said that. >> earlier on the "today" show mrs. khan responding to trump's comments. >> i think it doesn't have anything to do with my religion. my religion doesn't prohibit me to do whatever i want to do for the goodness of mankind, for the goodness of myself, my family. i'm very thankful i've brun born in this reek because it does not give me any -- prohibit me from anything that i don't want to do. >> and trump in turn weighing in on twit they are morning saying mr. khan works does not know me, viciously attacked me from the stage of the dnc and is now all over tv doing the same. nice! well, joining us now with more on the long road to november, we can say nice as well. former vermont governor howard dean and former new york congressman rick lazio who went they'd head with hillary clinton back in 2000. good morning. >> what a bit of a crazy

weekend. >> again. >> again. you look at this, and does this suggest -- i mean, this debate, is this going to come and go like every other debate that seemed like it was so out of sorts and then disappeared anywhere? >> i can't imagine donald trump getting into the debate of parents of a veteran who lost his life defending the country. clearly he should have said, listen, i -- i feel for those grieving parents. they sacrificed. i applaud what their son did and move on. >> we had wilbur ross on this morning who is supporting donald trump and he was very supportive of donald trump even with these comments. >> this is a real problem. the problem here -- i mean, my own emotions with jump sort of aggravation and so forth and then sort of a little fear that he might win. now it's just contempt. if he wins, i think half the country have no respect for him

whatsoever. >> and if hillary clinton wins that half the country is going to have contempt. >> they won't have contempt for her. she's a competent, smart person. you may not like her but she's going to be a good president. this guy is a moron. this guy is a moral pig. >> governor, you know, i disagree with that. i think a lot of people do have contempt for clinton. you travel country and a lot of people just say i can't trust her. >> yeah. i disagree with that. >> you can't disagree. it's other people's opinions. >> i disagree personally. but you agree there's plenty of people that feel that way. >> i think that's probably true. i would argue that's unjustified, but i think she does have a record of getting things done and has a record of working with republicans. has a r0rd of standing up for the country. she's somewhat hawkish on defense which i like despite my opposition to the iraq war. i think you have someone who understands what it is to be

president. trump has no understanding what his responsibilities would be. >> do you think there's anything that she can do at this point that the country knows her, to the extent there is a trust deficit which clearly there is, for thundershower change that at this point? there's an argument made i think in the "new york times" right after her speech which said she didn't say try to say trust me, didn't say try to say like me. just tried to say i'm more competent. >> she's not going to change the perception and she may exacerbate it as more things come out over the course of the next 100 days which is haar far away we are of election day. scandal hands over her like a nantucket fog and wherever she goes, the people she associates with, sid blumenthal or whoever it is that she will bring back into the white house, you've got dnc chairman ethically challenged so much so that she was removed as chair but then she was put over to the clinton campaign. what does that say to you about where they are? i think the bigger issue quite frankly is that the american

public -- 70% of the people think we're on the wrong track so when you say happy days are here again which is what the dnc convention was, it was a well choreographed and well run convention, better than the republicans in many ways, but basically think tone dev. when 70% of the people believe that we are on the wrong track, when you have economic growth slowing, 1% growth the first half of the year, you've got homeownership at 51-year lows. for the first time since they started tracking data, you have more small businesses that are failing than are being formed. there is a problem. the quality of jobs, the quantity haymes proved, the quality of jobs have deteriorated. you look at all these measures from the seventh year of an expansion, 70%, a candidate saying we'll bring you poverty same is in trouble. >> why is that -- it's a good point, but here's the thing. the right just says, well, e-mail server, e-mail server. the left says russia, putin. that's all we're hearing now.

the e-mail server on one side and putin on the other when to your point we've got all these economic issues nobody seems to address. it takes more regulations in new jersey to become a hair weaver than a truck driver. can't even start a business that basically has no startup costs and all we're talking about putin is the e-mail -- >> i agree it's a flaw -- i'm speaking for the republicans. >> six of the seven highest regulatory years have been under the obama administration. last year there was over 150 regs that just affected small business. this is where you're dampening growth. people cannot justify starting a new business or staying in business when you keep getting things thrown at you from the federal government. >> look, i think there's some truth to the notion that we're overregulated but i think the real problem is the problem that bernie sanders had his finger on which is the distribution of wealth has gotten really skewed. in a capitalist society, if it doesn't work for everybody it eventually won't work and that's been the downfall of a lot of

capitalist societies. if we want to make this work we have to change the tax code and instead of investing in collateralized mortgage obligations we're investing in roads and schools and bridges to create jobs and you've got to make it'sier for people to start a business that makes things instead of a -- >> hillary's response is raise capital gains for small businesses, and double the tlat most small businesses are paying. >> what she's talked about -- >> wait a minute. let me explain why this is a good idea. the problem -- it's not small businesses, it's big business. the problem with the capital gains -- >> rick, let me finish. >> the problem with the capital gains situation now is that you go in and you make your hit after a year and you take out at a low tax rate. i would make the capital tax rate zero if you invested for five years because you create something more than fiddling around with stocks and bonds. stocks and bonds are all fine and good but that does not benefit ordinary average people. >> just talking about make sure that people are long-term

investors. >> that create jobs instead of pushing paper around. you've got to extend the capital gains tax and makes it zero. why tax anybody if they are going to create jobs. >> why do you want the federal government to engineer holding people? >> that drives behavior. >> when many businesses all they need is a year of holding in order to be able to -- especially in a world that we're in right now where you're seeing assets, including intellectual assets, not need be held for this long. >> the kinds of businesses that get held for a year do not create jobs. the kind of businesses that get held for six years and built patiently do create jobs. >> as an investor you can make that decision. it's not for the federal government to decide. >> then why have a capital gains tax at all. why not charge income tax for everybody. >> we ought to have a favorable rate for capital investment. >> this is not capital investment. it's poker. >> if you look at what's dragging the economy right now the last couple of quarters,

it's been a lull in business investment, down dramatically both quarters. you think increasing taxes which is what hillary wants to do is going to encourage more businesses -- >> she's not increasing taxes. she want to drop taxes for people who invest to create jobs. >> she's not dropping taxes. you're doubling taxes for small business and capital gains rate to an ordinary income rate plus the obamacare and medicare. >> and dropping it. >> if you dance to her song. another big government -- >> a great debate. we have differences of opinion, respectful ones which is nice to see these days. you know, having a lot of conservative friends and liberal friends as well, the conservative friends i talk to say the same thing, not really on board with trump but i'm terrified with what hillary clinton will do with the supreme court. that's the other thing i hear all the time. what do you think will happen with the supreme court? >> i think she will put people on who aren't going to be interested on getting rid of the voting rights act which is probably something that should never have happened. i think she will put people on

who will get rid of citizens united which is ruining the political atmosphere in this country? >> a lot of republicans would agree with that as well. >> money and politics don't go together. >> it's not the money in politics, it's the message to the american people if you have a lot of money you're worth twice -- >> this whole country was founded on the notion that everybody was created equal and the supreme court said that's not true. insane to have people like that on the supreme court. i don't think hillary clinton will put a lot of people who are way on the left. >> you don't see the supreme court going super liberal. >> that's the one thing you do her. >> she is not super liberal. if you look at her foreign policy, she's i think more to the center than barack obama is. she made dealings with the republicans. we were talking earlier in the green room, she supported republican banking bill, not because she loved the bank bill but she made a deal to protect single mothers with small children in the banking bill and

vote for the republican banking bill for which bernie sanders argued with her and criticized her form. i think she's a pragmatist who knows how to deal with both sides of the aisle. >> final word. >> >> with hillary clinton you get more of the same. if you thought the last eight years for barack obama were good for the economy and national security, look forward to hillary clinton. most people reject that. feel it in their gut. businesses are not making investments and they don't like to hear taxes are going up, regulations increasing, we'll stack the supreme court with people who are making partisan decisions to -- to validate this regulatory tax model. they want people that are going to obey the law and obey the constitution. >> gentlemen, thank you guys. >> spicy. >> you didn't have to do any work. >> come on back. >> this is great. i'll just sit here and lean back. >> that actually means you gave -- that actually means we

did our job appropriately. stayed out of it. let you guys argue. >> thank you so much, gentlemen. when we come back face the science. ceo elizabeth holmes making her first public appearance since being banned from a medical lab. we'll head down to the conference where she's speaking. that's coming up right after the break. announcer: alvin and the chipmunks want to remind you--

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welcome back toe "squawk box." the cleanup sunday way in maryland. flash floods ripping through the story of elikot, kind of antique shops, two are dead and hundreds others had to be rescued. look at the video. heavy rains on saturday and six inches falling in two hours. a month's normal rainfall in 120 minutes. four homes were destroyed and 20 or 30 other structures were damage the. guys, you can see this is the most dramatic video which is a real hero. three glinksed arms and were trying to pull a woman out of the car and just as she basically almost gave up and said i can't do it the third guy closest to her let go, grabbed her and almost was swept away and a lot of scenes of

individual heroism in ellicott city, maryland, really a neat walking town and the river just flooded. >> people there for decades said they have never seeing anything like this, a very unusual situation. terrifying video. >> we should also be tell you elizabeth holmes make being her first public appearance since getting banned for operating a clinical lab. meg tirrell joins us from philadelphia and we'll be hearing from her later today. >> that's right, becky. a crucial moment for theranos. today marks the first time when ceo elizabeth holmes will present for 40 minutes about the technology and then take questions for 45 minutes from the thousands potentially of laboratory experts high in attendance at the american association for clinical

chemistry conference in philadelphia. many of these experts who have spent their lives in laboratory medicine are not happy that she's presenting here. let's take a look at how we get here for theranos. we know it was founded in 2003 by elizabeth hole whms she was 19 years old and had dropped out of stanford university and step years later they opened their first clinical labs and in 201 given a valuation of $1 billion based on privately ran money and then the stories started to unravel after 2015 after a "wall street journal" investigation raised serious questions about the technology underlying what theranos promised. essentially this promise of doing the routine blood tests of tubes of blood drawn from our vains. they promised to do that with a finger brick's worth of blood n.january 2016 federal regulators started to get involved and did an inpex of the theranos california laboratory and found severe deficiencies and in march they warned they may impose severe sanctions on theranos if they didn't fix

those. that same month a big study came out in the "journal of clinical investigation" from mt. sinai raising the accuracy of the theranos tests compared with competitors of quest diagnostics and lab corps. theranos withdrew or voided two years of test results and in 2016 walgreens terminated its relationship shutting down the 40 wellness centers theranos ran through walgreens and then finally the big issue july 2016, just last month, we saw that two-year ban be imposed on elizabeth holmes from operating labs in the industry. the company had 60 day s s to address that and today is a crucial time to prove to the conference full of experts that they have reay god something. >> thanks so much for that and looking forward what happens. when we come back, heading back to hogwarts and a new harry

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here's what's making headlines. verizon striking yet another deal. this time they are buying a company called fleetmatics a provider of fleet monitoring software systems. that price is $60 a share and cash and $2.4 million. a nice 40% premium for shareholders. this comes a week after verizon announced it was buying yahoo's core assets and a year after it bought aol. here's something you don't see often these days and an upbeat earnings report from an oil-related company. diamond offshore reporting profit of 16 cents a share. well above estimates of three cents. cutting costs has helped their profit there though that stock has been in pain the last few years. meantime the gambling slump in macau continues. july revenue was about $2.2 billion, down 4.5% from a year oak and muggles around the world making the latest installment of

harry porter disappear from stores. harir the -- "harry porter and the cursed child" released in stores this weekend. the book was greeted by long lines of fans and release parties and rowling confirming the end of the harry porter series telling reuters, quote, harry is done now. >> ah. no. >> harry potter and the vanishing profits. >> big disappointing gdp numbers out friday, well below expectations. this week we're counting down to jobs friday and joining us now to talk about the mac cotrends he sees in the global and u.s. company dr. jeffrey sachs of columbia university and a special adviser to u.n. secretary-general ban ki-moon. doctor, thanks for being with us

today. >> a pleasure. >> let's talk about what we saw with gdp because that can create huge ripple effects. growth was 1.2% versus the 2.5% or better than a lot of economists had been expecting. did it catch you by surprise? >> well, we're in a slow growth period so in general that slow growth continues, but this was even slower than the slow growth so we've been expecting around 2%, but weave now had two quarters of around 1% and that's very weak. business investment is especially weak, and we're in a stagnant economy with very low investment. a lot of downside risks, and i think a lot of people waiting also for november. >> what do you think is happening beneath the surface? why are businesses not investing at this point and why are they reluctant to do so? >> over the longer term national saving and investment have been on a long-term downtrend so nothing dramatic is happening

except the increasingly slower, slower, slower growth of the economy, so our potential growth rate has probably declined to around 1.5% to 2% because we have very low net savings in our economy. the government net saving is negative and has been chronically now for years. the private saving is also quite low, so that's with us as an underlying fact, but in the near term there are huge uncertainties. the whole world economy is a big question mark. what's happening in china, brexit, our crazy elections here so everybody is taking a pause. >> a political question for you. you've been supportive for the most parrot think of hillary clinton for -- for president, and yet higher we have a situation where the economy has not been growing, as you just said, as fast as nearly anyone would like. rick lazio was just on and said, look, hillary clinton is effectively saying she's going to do or continue the last eight

years of barack obama. do you look at the last eight years of barack obama's presidency and say this is a good economy? >> well, i was a bernie sanders supporter originally just to be clear and now i'm supporting hillary clinton, and i regard the last eight years as mediocre at best. i don't think that there has been a growth strategy. there was a recovery from the crisis, but there hasn't been a real growth strategy. i don't know whether hillary clinton has one, but i'm quite sure donald trump does not have one. >> you were supporting bernie sanders before, but what he was planning on spending, i mean, those are numbers that most economists when they look at thought, wow, this is something that could bankrupt our society. how do you kind of get your head around the idea of thinking that he had responsible plans heading into this? >> well, lo and behold, unlike almost everyone in this country, i'm for significantly higher tax collections as a share of gnp because i think government has

responsibilities and i think we ought to pay for those possibilities through taxation, so our total tax take in the united states is 30% of gnc if you add up federal, state and local and in countries like i admire in the scandinavian countries it's 45%. i'm not saying that's what we're going have in the united states but the idea that we're where we are or that we need new further tax cuts i think is completely backward. when i come back to this country from traveling abroad, which i do all the time, our first joke with my wife is we get off at ken dimp the elevator is not working, the escalator is not working and the infrastructure is completely broken down but that's true of everywhere in this country. we haven't invested for a generation. >> infrastructure spending is one thing and that's something that both sides of the aisle tend to agree on. >> and we need to raise taxes to pay for it. >> particularly at a time when you have low interest rates but raising taxes to those levels, in europe we've seen very slow

in decade, too. higher taxes, a lot of people are worried that will make it tougher. >> in northern europe there's high prosperity and it's shared across the board. >> small country, homogenous. >> germany is 85 million people and it's a very prosperous economy. >> germany has prospered very well because of the euro because it's taken the southern countries and gotten a discount on its -- >> we have an idea that's been in play now for 35 years, that the way to happiness is tax cuts and we've reached -- >> who do you raise taxes on? >> v.a.t. for the long term. >> you do think a v.a.t. should be added. >> absolutely. >> most middle class people will tell you they are overtaxed and hear that all the time. state taxes have gone up. sales taxes have gone up. property taxes and on that basis they are right but the dirty little secret that no candidate

will tell you is that mid -- the middle class is paying the lowest federal income tax burden in its history, according to the center for budget priorities, a left leaning organization. the federal income tax burden after deductions is a 50-year low. there's not enough people -- the poor don't have any money, the rich, there's not enough of them so if we follow your strategy what politician has the nerves to say i'm sorry, middle class, your taxes are going to go up but you'll get better roads. >> none so far. not since 1948 because that's what walter mondale said. he was decisively defeated by reagan and since then weave been on the same path and we have broken infrastructure. we have broken everything, and in these countries that i like which nobody likes to be closely at? they pay a higher v. a t. because then they get bernie sanders free tuition with quality higher education.

>> you think a v.a.t. would ever happen. >> it's a regressive tax. >> but the other thing, too, beck, i'm not supporting a v.air. t., it does capture. >> mildly regressive tax but you use it for progressive spending. you use it to ensure that everybody gets decent education, gets quality infrastructure. >> would you support this, because the v.a.t. does collection, 15% of the underground economy? would you support v.a.t. if there was guaranteed no income tax rates? >> zero income tax. >> no more income tax rates, the fear is you give me a v.a.t. and you'll raise my income tax. >> basically something like that. >> dr. sachz, thanks for coming in. >> let's continue. complicated issues. >> this is great. >> thank you. when we return merger monday. tesla officially buying solarcity for $2.6 billion. headlines from the conference call going on.

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you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door, for less than $9 a meal. get $30 off your first delivery blueapron.com/cook. welcome back to "squawk box." tesla buying solarcity for $2.6 billion. phil lebeau joins us with more highlights from the conference call. phil? >> reporter: andrew, that conference call is still going on right now. elon musk along with executives from solarcity answering

questions from analysts, analysts who have covered both tesla as well as solarcity. here's the deal that's been announced. this still needs to be approved by a majority of the disinterested shareholders from both tesla as well as solarcity, a $2.6 billion all stock deal where essentially solarcity shareholders will get .011 shares and valued out at about 25.37 per solarcity share. on the conference call they have been talking about $150 million in synergies that they have identified, basically everything from the manufacturing process, to the generation and the giga factory all the way through the manufacturing of storage panels, storage devices. they believed it will be one-stop shopping so you buy your tesla automobile and you get your solar unit installed in your house and you get your storage pack, your power wall installed at your house. they believe that is an appealing combination. they expect this deal to close

later this year. again, it depends on majority of the disinterested shareholders of both tesla and solarcity approving the deal. keep in mind that means elon musk who is the largest share holder in both companies, he's not going to be investigate on the deal and he says he'll abide by with whatever people want him to dorm. believes this is the right combination and right time for tesla to make the deal. guys, back to you. >> when we return, jason bourne is born. the matt damon-led sequel taking in $60 million at the box of course, second highest opening of the bourne series ever. more from hollywood when we come right back.

universal's jason bourne dominating the box office this weekend. i was there, but not all sequels are faring so well and julia boorstin joins us with that story. >> reporter: the bourne franchise it its best international franchise ever grossing $110 million worldwide. though its u.s. debut of $60 million was 10 million less than the 2007 bourne film and that doesn't even include inplaying. studios are saying that they can't count on sequels for ever larger returns. this summer the u.s. box office with sequels is 26% lower than last year's at this point. analyst barker crockett writing

second quarter 2016 will be remembered as a time when sequels, else especially those not featuring superheros, came up short referring in part to "ninja turtles just out of the shadow" half of the 2014 reboo. viacom warning the company's results would be impacted by "teenage mutant ninja turtles" underperformance. other disappointments including "neighbors 2" and "disney's alice through the looking glass" and even paramount's "star trek beyond" opening weekend brought in less than the first two films and fox's "collision course" had the worst open in the series. it is a tale of extremes. "finding doer" and "captain america's civil war" are the two biggest films, both from disney and the latest "purge" film is outperforming the prior two movies. with so much contempt available on demand studios can't count on familiar characters to get people to make the trip to the

movies. word of mouth and savvy marketing are increasingly important. becky? >> i was going ask you this. if you look at this, a lot has to be there are so many other competing places for people's attention these days and may not be a problem with the sequels and may be a problem trying to convince people to spend their time and money in the move theaters versus all these other places. >> well, i think the benefit of sequels is that familiar brands break through the clirt and something that has an advantage when it comes to market. oh, i remember jason bourne, but the fact is that now it's not just i remember jason bourne. did i like jason bourne? was i happy with the first movie? did i want to go back? were the reviews good? hearing good things from my friends who saw it the first night so movies like jason bourne have done well and so many films that were really surprise disappointments because the first ones did great like "neighbors 2." i saw "neighbors 2" and really liked it and didn't do as well as the first up. people can stay home and stream on netflix.

it isn't necessarily a sure thing that people will be going out to the movies every weekend. >> julia, thank you very much. good to see you. >> good to see you, too. >> when we come back, jim cramer will join us live from the new york stock exchange. we'll get his take on today's top stories. by the way, check out the futures this morning. so far so good for the bulls. dow futures up by 30% and "squawk box" will be right back. the heirloom tomato.

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delivered to your door, for less than $9 a meal. get $30 off your first delivery blueapron.com/cook. to the new york stock exchange. jim cramer joining us. what is the focus for your day on this fine monday? >> i think that we've got a couple, we have a takeover, this verizon. we have this biogen deal. these are basically saying once again, they're companies looking. this verizon's become one of the most in. >> chris:tive companies around. also trying to put the uber decision in a context so that apple seemed pretty smart making its investment, so it's still takeovers and a kind of sense that people just feel that this market is do nothing, but individual companies are taking advantage of it. >> everybody focuseded on yahoo! in the verizon deal. the thing i was wondering, verizon's a dow component. here they are making 10 billion

in deals in the last a 15 or so months. what are they trying to become? fleet? >> i think they're try iing to extend the reach into a lot of different businesses. they have a business which does well when there's a lot of data consumed on the internet. they have a, this is a softwares service business that controls fleets. verizon's got a huge fleet, but there are a lot of different companies that have fleets. it allows them to control it better. i don't know, verizon's becoming kind of a catch all to a lot of different toenlgs, it's like let's see what sticks. identify got to tell you, after att bought directv, look at that stock. maybe verizon feels it's got to do something and remember, the prices may be going up. we're starting to see that, because they're just used to be the end of the price war. >> i saw you tweet about bob dudley, the market's over -- >> dudley's not trying to say anything,er time someone says

something, they are try in many case, to say nothing. bob rubin once told me, listen, you can come, hear me, aisle let you interview me, but im not making news so, if i think you're telling me and showing people that i am, you're done. you're cut off. and i always thought that's kind of like what a lot of people at the fed do. listen, we're not making news. >> the ceoobp, not bill, the fed guy we're talking about, so basically, it's this. go give a long interesting speech, but say nothing. >> just say listen, we're in sync with what the fed chairman says. no discord here. i think dudley's a team player and i think we want to find something that what a fed is up to, but dudley doesn't necessarily have to do that and he didn't. those who think he did, i think they violate the bob rubin rule. we're not making news here, just telling you stuff. i think that's what people are

misinterpreting. >> well said, you did say much. see you in a few minutes. >> coming up, this morning's biggest stock movers and later today, our exclusive interview with jamie dimon, that's right at the top of "power lunch." wilfred is out west, he's going to sit down with mr. dimon, 1:00 p.m. you're watch cnbc.

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you've got to keep your eye, i know it's odd, but u on the italian banks. this follows friday night's release. unicredit, down 7.5%. down 4%. some are down 50 to 75% this year. >> and monty was one of the one that struggled the most under the scenario for the stress test. obviously trading at 32. >> keep in mind though that the stress test did not include a brexit scenario. kind of why do them. either way, italian banks have been weak, continue to get weaker. the other one that's up in monte. a programming note tomorrow on

cnbc, do not miss another big exclusive interview. this with the prime minister of italy. his take on his nation's banking system in the wake of these european bank stress tests. >> a couple other stocks to watch today. if you haven't heard, tesla is buying solarcity in a deal worth about $2.6 billion. the shares at $25.37 apiece has stocks trading down because it has closed above that price, so again, the deal came in a little below what investors had been potentially anticipating. also, verizon is buying fleet. the price is $60 a share in cash or about $2.4 billion. this comes just a week after verizon announced it was buying yahoo!'s core assets as well. >> instagram rolling out a new tool to combat bullying. users will be able to filter comments and ban certain words from showing up in their

comments. the new policy will first be available for the popular accounts followed by all accounts in a few months. that does it for us today. brian, thank you for being with us. >> i'll be with you tomorrow, too. >> we'll see you tomorrow and later today on "power lunch." right now, time for "squawk on the street." ♪ >> good monday morning. welcome to "squawk on the street." at the new york stock exchange, welcome to august. where history says stocks struggle more than any other month on the dow. busy week. tesla and uber in the news. earnings, ism, jobs number on friday. watch european markets, bank of england decision on thursday. >> anthony: oil remains weak within a dollar of three handle now. goldman sachs downgrading global stocks. how worried should you be? tesla making its merger with