Negatively. The dow opened lower, the nasdaq lower by 6. We had a multibillion dollar deal. Teva acquiring allergan. We should tell you that teva is officially withdrawing its off for mylan. You may have remembered they made that offer as a hostile offer. It was not morninging. Mylan which located outside of the u. S. Became a bizarre beneficiary of moving outside because of the way the governments rules work abroad were they relocated it made it much more difficult for teva to pursue a deal. How do you think the mylan shareholders feel about the big fight . How do they feel this morning . In the immediate case i think that they cant be thrilled. Longterm, mylans ceo has made the argument and i actually buy it that theres more value to them reinvesting by reinvesting and being independent. So well see what happens there. Can i ask a really important question . Yes. Friends of mine would like to know. Does this get us any closer to a botox thats what friends would like to know . I have women in their 40s. Ben is going to be here and he has offered i think he offer the chin thing. The chin. Or the eye . No goes right up to the chin. We should tell you that for your prostate or something. It involves needles in all of these places. Brent saunders will join us here on cnbc. 6 30. He will be. And what we understand from him, generics have a lower margin business than the brand business so, a, is this the time to be getting out . Is this the operating to be getting out, given theyve got a lot of stuff. How much do they owe right now after the recent acquisition of allergan. Theyll pay out for that. This will pay that down and get the debt ratio down where they can focus on higher margin products. Theres other things besides botox. You know whats become a really big needles are big, but theyre not scalpels. Anything that saves you like the fullon cutting. Under the knife . Yeah where youve got to spend three week misone of those you know, Humphrey Bogart bogart. What was the name of that when bogey you dont even know what he looked like at the beginning. All you see when they take it off, of course bogey. But you just see him totally different. Anyway as china you guys are young. Culturally, its hopeless. I know who they are. I know who they are. This is back to generational issues. No you dont watch old movies . You just watch the new stuff. Its a classic. But the thing in china reminds me of like theres a thread here. Yes. As i pull this and you pull it its thats what it reminds me of it scares me. Its so far away. Its their margin problems. Central bank of china, they lent them money to do this. And when it happens it has ripples. And then add the hammering of commodities on top of that. Those two things together. Like those two thing, im fearful, are telling us then you look at the major u. S. Averages that really havent done very much since november. What are these indices around the world doing and telling us . What was boone pickens, 70, right, by the end of the year . Most people said that. Where is it today . 47. Going to be 50 of 70 theoretically. Thats pretty amazing. Some other top stories today. This one just hearing how it works, youre saying that the air bag goes off. Thats bad. Ive never been a big fan of fiats in general. Theyre so cute. Its like fiats, who would theyre cute. Theyre cute. But theyre that chintzy, you slam the door and the air bag goes off . U. S. Auto safe regulators fining fee yas chrysler a report 105 million. The total including a 70 million cash payment and an agreement that the automaker will spend 20 million improving the recall process it currently has. Fiats deal includes an unprecedented buyback offers. It gives owners of gmc a chance to get vehicles repaired. Mcgraw hill reportedly a deal to sell saturday night live. Im wondering the same thing. I didnt know they didnt anything to do with snl. The snl financial. Its a Data Information company. Its owned they probably the numbers are going crazy. Its owned by private equity firm snl. You say snl, thats all you think about is snl. Only on squawk box, you have to think that and and, remember atm, do they still have that a synchronous transfer mode. Did they laugh . No they didnt laugh. Theyre convinced that ron burgundy you know. And verizon workers in nine states voting to go on strike if necessary. A contract with 40,000 Union Workers expires at midnight on august 1st. If necessary. In todays squawk planner, Norfolk Southern before the bell. Earnings june durable goods. But the biggest story, twoday fed meeting that begins tomorrow. In global news greeces government said the stock market will remain closed. The boerse has been shut since june 29th. And negotiations off to a rocky start. Lets continue the conversation on china. Lets go to asia. Hes got more on the huge selloff that took place in china overnight. Good morning. Hi andrew. This was a real shocker, a rude awakening just when you thought it was safe to get back into the market. We saw a burst to volt till on the downside. The chinese equities market was recovering. Down 16 of lows that we saw in july but we wiped out more than half of those gains in the biggest session. The biggest decline in almost eight years. What was behind it . I think it really underscores how leveraged this market and therefore how volatile this market still is. Lets not forget margin financing by official channels this is just official channels mind you is about a third from last months peak but it started to tick higher once again. Theres also a sense amongst investor today in Mainland China that the authorities in beijing may be backing up supporting the market. Thats another reason why equities markets threw a tizzy today. We saw low pmis last week. Society, we saw industrials in china contracting by 3th reversing the expansion we saw in april and may. The Big Questions for me in terms of the outlook, whether the capitulation continues and what beijings response is this time around. Sri, thank you. A lot of scuttlebutt about the mysterious shadow margin. Things that have been happening with china, people supposedly pulling back. Bank of america, finally some comments on that. Lets talk about it from china. And we have earnings. I dont know whether youd call them good or not. Especially from a revenue point of view. I think thats been a little scary. Lets see, who so far in the last week scared us amazon was great. Ibm scared us United Technology scared us. Some of the yanks in the stock market didnt have a good week. Apple. Apple, may be different to some extent. Although i finally read a piece do you want to take credit for it or not take credit for it . No it was one that basically said the consensus is that apple is forever going to be the greatest company in the world. When you really look closely its the one Product Company and if anything changes that it may be price i just read that. You see these guys come in and they get so defensive about it. But, i dont know. Over 150 S P Companies and six dow components are going to report this week. Social media, Energy HealthCare Consumer names dotting the calendar. Whats most important . Here to talk the markets, weve got the fed, china did we put greece to bed for sure . Peter bookhart and Brian LeavittSenior Investment vatic . If you can find something scarey im sure youre up to speed on it. With supposedly the margin in china, the numbers that are provided dont tell the whole story. And theres apparently trillions. And if people do get nervous when marginselling happens, its relentless. And theres no explanation for it. When a lot is happening, its going to keep happening. Is that happening . Even if we believe it, its 8 to 9 gdp. Even the number theyre giving us is three times bigger than it it here. So the number could be smaller than the actual number . Exactly. You have margin and only two times margin and there are ways being provided to get around it supposedly. Right. That we dont well i think the most interesting thing about today is that theres talk about the chinese pulling back from stockings. So this just gets us into the whole central bank thing. Theyre great at blowing bubbles up. The second you walk away, the air comes out of the bubble. Weve seen that here and everywhere. Chinese are experiencing it first hand. You can control things for a certified period of time and all of a sudden, markets are going to run out when you go away. Markets never seem to go away. There always seems enough power and money in the central planners. Is there a number so big that even chinese dont want to handle it . I think theyre seeing it first hand right now. But i think chinese authorities realize what they dont what theyve done over the past three months. They know the bubble theyve created and they know the carnage that they created when they pulled away. So i think they want to now test the market how much to walk away. Then it becomes a feedback group. So they walk away the market falls 8. 5 and then they need to go back in again. There were 1,000 stocks frozen. Look at that oh gosh. The one upside almost no american is involved in this right . Most of our viewers cant be involved in this because this is mostly mainlanders. There are etfs that you can trade. But im sure its mostly the retail in china. Was this one of the top three things youre paying attention to or not . Yeah of course this is one of the top three things were paying attention to. I think for the next years whats happening in china is a story for the Global Economy. When you talk about bubbles, you compare whats gone on in china. What went on in japan. What went on in nasdaq and oil prices. Whats gone on with Bio Technology this move pales in comparison. The big story with china, obviously, were going to need a longterm progression with a more consumerbased economy. The financial crisis gave them that opportunity. Instead, they started to create a lot of cred and money into the system. They ended up with a worst case sin another, slowing the economy and a big pickup in asset prices. Now, it doesnt have to be 1929 in china. 1929 was a major pose mistake in the United States. What you have to have to see them do can we project on to china the same way we do stock markets in the United States which they are a discounting mechanism. And to see them tumbling like they are in china, is it telling us something about whats going to happen for that economy which is therefore going to be very bad for the Global Economy and u. S. Market eventually . Well weve been through a period where chinese growth expectations have come down pretty substantial, right . So were moving through it. I think whats most important, as we have a fed meeting this week. Theyve been so whipsawed as to whether theyre going to be raising rates. What china is indicative of is slow Global Growth and weak demand in commodities. In the United States the big story continues to be easy monetary policies really valuations and a prolonged disinflationary environment. Following along with what happened with equities and oil the only thing new in china is whats happened in the stock market. Commodities have picked up. Its made no sense, europe is going to be recovering. It made no sense, the fed is going to start raising eventually. So we dont think were still you know the phantom wasnt huge but apparently it was, china now. A lot of the Industrial Metals topped out in 2011. What if that plunged, you say theyre going to grow 7 . You knows that a fake number. Thats probably half that. Is that plunge in the stock market telling us its 1 or 2 . I think the stock market is its own animal. Just as the rally was not reflective of anything the decline is not. Okay. We didnt talk much about the energy this week. Not only is the stock market, but every company is different. Look at amazon and google. Both of them went up like 100 points. On the other side youve got ibm and apple. Youre finally getting dispersion of returns after a bull market. Its not all this rise of tide. Commodity prices a slowdown in chinese demand but also the big strength in the u. S. Dollar so as we look to the fed this week how much rate hikes can the fed enact until we continue to get more pressure on the dollar. More weakness on commodities and headwinds for earnings. You know when Lauren Bacall passed away. You know she was a complete legend . Yes. The work that went into making a legend you know the background have you seen any Lauren Bacall movies at all . Yes. This is dark passage. The reason people are writing about, the reason its so amazing. First half of the movie is shot from point of view. You never see bogey. Then when he goes under the knife, they take all the bandages off, hes bogey. Thats what shadow is famous for that. Thank you for that. You dont need a knife with Brent Saunders coming in were going to talk to Brent Saunders. When we come back were going to talk about another guy, the donald. He keeps trumping polls. This day in history joe, this is good for you okay. Yeah. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Welcome back to squawk box now. How to the race for the white house. Donald trump running strongly in the early nominating states of iowa and New Hampshire for the gop. Thats according to two nbc news maris polls. Trump leading the field, despite a criticism of john mccains war record. Lets bring in ben white, a cnbc contributor. Good morning. Good morning to you. How long the question is how long does this hold up . Right. Is it possible it actually holds . I dont think its possible they actually hold. Theyre not increasing as poll numbers. People like the straight talk. But they liked before with mccain they liked before with michele bachmann. I think the problems with trump, when we Start Talking about his policy positions they dont line up. And he was asked yesterday about immigration. And no real answer. He sort of said were going to get the bad guys out. And were going to build a big wall. When you get to abortion and taxes. Hes been against huge tax increases on the wealthy. When people go to caucuses when they go to vote in New Hampshire, theyre going to look at those issues. But hes incredibly good tv. Hes really entertaining. Hes a great speaker and hes going have some momentum. Did you see that really you want me out . What about when he decides to pick a Vice President you dont think okay fine you want to go listen to Rick Santorum and what hes saying do you want that . Do you wand Lindsey Graham every comment out of his mouth . Thats what you want . Youre nothing without me. Everything i say in a voyeuristic way. I do think there will be a point where he peaks and cedes. But the idea the editorial page mentality would seep through to the front page. To the newspaper . That will never happen that im aware of in any real newspaper. Andrew . It never happens in the new york times. It wouldnt seep through in the interviews, right . No. Its pretty it wish it would seep through more than the wall street journal. I dont think it would go to the journal. Im not sold on trumps longevity in this race at all. At question at this point, how much of his own money does he want to spend . He could spend a whole bunch as his poll numbers go down. Are you saying he would be putting his own money he would do that. He has no Grassroots Organization in iowa. I dont know what his grassroots is in New Hampshire. Eventually if you want to win iowa you have to be setup, you have to win on caucus day. Strategic list, the other folks pitting with him, should they be taking him on . Hide and duck an coverd cover . Whats the move . Hes got to get himself in the news. That makes sense. Immediately hes the news. If youre walker rubio or bush, the three in the top tier, you wait for him to fade. Switching topics Hillary Clinton releasing on what im calling the larry fink Capital Gains fund. Youre going to introduce Capital Gains to try to get people to invest. Does that work . It may work. Its not exactly what hes suggesting, it goes down to zero if youre 6 or 8. It got swamped by eat mailthe email story. If you want to unite pro growth for democrats, you say lets raise taxes on Capital Gains. And its a telling thing, too. By her position is this the move that fires up the left . No its not. Its a yawner . Its a yawner. Theyre never going to satisfy the Bernie Sanders folks. With that increase. But you want to appeal to them by saying i am willing to raise taxes on the wealthy somewhat without losing the center and wall street democrats. So theyre trying to thread that needle but all anybody talked about was the email problem. Is it a problem . Its on obviously a problem, when youre sending state Department Emails from your private email. Is that a problem for her. Well it could become much of a problem if its proven she knew she had classified information she was sending from a private server. Then that becomes a bigger problem. If thats not proven 4 out of 40 the ones that havent been destroyed, but obviously, its 10 . Well i dont know. Is that right . It is thats good math. Thats impressive. Theres a lot of emails. Theres more to come on it obviously. Its go