Hurricane irma is a category 4 sthoorm cou storm. The path is still you unseuncer puerto rico and florida are areas of interest. Here are the big corporate stories. United technologies buying Rockwell Collins for 23 billion. Under the deal, rockwell Share Holders will receive 140 per share in cash and stock. Thats an 18 premium to the Closing Price on august 3rd. The Companies Say the Aerospace Systems segment would be combined to create collins Aerospace Systems which would save 5 billion by the fourth year of completion greg hayes will join our colleagues on squawk on the street later this morning that happens at 9 30 a. M. Eastern time. Lego announced plans to lay off 8 of its work force lego reporting a 5 drop in revenue for the first half of the year the company said most of the 1400 job cut also happen s wille end of 2017. And Rovio Entertainment is planning an ipo. The mobile games studio will list shares in helsinki in a move looking to boost growth the Company Finally returned to profit in 2016 following the angry birds s 3d movie. There will be a share issue of about 35 million. A check on the Global Markets, see if thats part of the problem today with the u. S. Markets which indicated lower. Japan, not good there. Down almost 0. 5 points or so the hang seng and shanghai eking out gains. European equities, germany doing best there spain down lets look at the dollar saw that earlier dollar has not continued to drop precipitously. We had 1. 20 last week when you were out, sorkin crude is not story maybe rbob is. Paid a lot for gas killed me it was like back over 3 was it . Above 3 for premium it was. Do you have a car this weekend did you have any elasticity . I drove i went to the station a few times. Selfservice zip car you have a car now. Im a proud leaser of a vehicle. Nonetheless, when you have three kids in the car. Yeah. Youre not even looking at the price. Youre just trying to keep your head above water self serve, too did you do the credit card in there. Im cheap, i try do the debit card, then theyll take more, depends what station youre at cash is cheaper many times. You pay cash, you can get 10 cents cheaper. Did you not know that . I did not know that. I thought that was the same thing with the debit card . Theres the debit price and the credit price. I think its cash youre sick i had gotten a cold im at tail end of a cold. I can hear it in your voice i will try to project its the end of a cold i want to tell you, i know you always think im crazy about the cold drugs out. I know. I took a zicam, i think it helped really . Did you do clear and zicam alike . Theres no cure for rhino virus yet. I think it helped i want to think that every week, we are talking about this im trying to figure this out well have Nicholas Burns on former ambassador. Its daunting. If you think about it, theres many countries that are fully nuclear capable, Hydrogen Bombs, tipped missiles, everything. If you were this guy, this crazy guy, you would be saying everybody else has t whats the problem with why you are saying i cant were saying every time you test something, you cannot do this, i know hes over there sitting there who are you to say that north korea thats what hes saying right it is the big guy yo politic ge story. North korea tested again on sunday today south koreas press is reporting that the north was observed moving a rocket that appeared to be an icbm and they may test another missile now that they did the nuclear test this could be fired towards the sher sherry chang is joining us from seoul, south korea. Thats what we are getting from the intelligence service. I think north korea thinks they want to keep testing to get to the level they want to be in order to win that recognition as a Nuclear State as these sanctions keep squeezing in. And we just had the u. N. Security Council Emergency meeting overnight talking about what we can put in this round of sanctions. Many are actually questioning the effectiveness of these sanctions to begin with these days and in the meantime, where i am here in south korea, a lot of phone calls that the korean president made, south korean made with World Leaders such as u. S. President trump overnight and is trying to brief up its own defense in the face of these missile tests as well as the latest nuclear test by north kor korea. So one agreement that came out of that phone call between the leaders of south korea and the u. S. Is that theyll do away with the restrictions on south koreas missile payload capabilities, and trying to draw this paint a picture of National Security, sending a message to north korea as well as the south Korean People joe . Thank you, chery. Well revisit this story all morning trying to get more insight. Appreciate your time thank you. For more response on the u. S. Response to north korea and other top political stories, we want to get to eamon javers in washington reporter its a difficult diplomatic position for the United States as you heard from south korea. The United States responding in a variety of ways. U. N. Ambassador nikki haley saying the North Koreans are begging for war. We also heard from the secretary of defense who issued a starn warni stern warning to the north koreas any threat to the United States and its territories including guam or our allies will be met with a massive military response, a response both effective and overwhelming. The president taking to twitter over the weekend firing off a couple tweets, one aimed at south korea and its leadership saying south korea is finding, as i have told hem, their talk of appeasement with north korea will not work. They only understand one thing the president also saying there may be a trade option here the president tweeting out that the United States is considering stopping all trade with any country doing business with north korea. That presumably includes china, a huge trade partner of the United States that would be politically difficult for the president to do. Hes meeting with the National Security council this morning at 10 00. We expect maybe some more details on the u. S. Response later on today on do t on the domestic front. Some resolution here from the president on the socalled dreamers thats the deferred action for childhood arrivals, Obama Era Program that allowed undocumented immigrants brought in as children to stay in the United States. The president expected, we are told hes leaning towards making a decision to end that program but with a sixmonth deadline for actually ending it so well see what he comes up with today that provoked some response from some on capitol hill, including paul ryan who said this, i dont think President Trump should do that i think this is something that congress has to fix. Corporate leaders weighing in on this in favor of the dreamers and against the program. Tim cook saying 250 of my apple coworkers are dreamers i stand with them. They deserve our respect as equals and a solution rooted in american values. So we expect that well hear some more detail from the president or his team later today on exactly what hes decided here but a difficult political decision for the president to make today eamon javers in washington this morning, thank you very much talk to you soon we do have a couple of things that are just moving. Stocks to watch, tronc, the publish everyone of the tribute and Los Angeles Times is buying the really iconic the iconic New York Daily News absolutely. Definitely is couldnt sell it for a dollar last time. Couldnt sell it for the price of a single issue. No cash is changing hands. Tronc is assuming all the operating costs and debts and will acquire the Printing Press in new jersey. The daily news was once the largest circulating newspaper but has faded as readers shift online and i look at the jumble. Thats all i use it for. For tronc tronc, say it tronc. The stock is doing better tronc theres two pieces it gives them a National Platform for the two times. They owned the l. A. Times, Chicago Tribune, never had a piece of new york. Theres something there. They get a piece of real estate. This is like beachfront property overlook the southern tip of man hhattan the plant where they make this thing, 25 acres that zuckerberg owned. They get part of that. They wont need that land much longer because Printing Presses will become obsolete potentially and this is sad for some of these other markets, but they own the hartford current in connecticut, the allentown morning call theyll stop printing those locally, print them all in new jersey and ship them synergies some synergies here the liabilityliabilities, pensi liabilities about 30 million, 0 40 million. Theres been some reports around those anybodiey numbers even though we say this is a cashless transaction, theres some money i cant tell who writes their gossip theres page six and then they never got its like burger king fries compared to mcdonalds you should you know how i write a column, you should write a gossip column for the new daily news for the tronc. I dont know anything sure you do no, i dont i learn a lot from you during the commercial break you do. You know what im saying, you dont immediately open that to see who right how about the docovers do you think the last year and a half theres another story which is zuckermans political influence in this city and country, hes been able to use this publication for a long time to have he couldnt sell it for a dollar people loved his political you know, couldnt sell it for the price of what one my first journalism job was at the New York Daily News you should have picked it up. I dont want that thing lets get back to the markets. Steve shakutto and shri kumar. Where are we in terms of the markets. North korea is an unknown but one that the markets are willing to look through. We have a full plate of events starting this week with the ecb meeting. Theres a lot going on, melissa. The equities, i believe, are pricedperfection theres very little that can go wrong. North korea is one more uncertainty that the markets could have done without. On the bond market, the tenyear yield has been moving downward we have a slight drop today. I think were headed down there also the safe havens are doing well the other part of your question, Congress Comes back today after the summer break they have to raise the debt limit, provide Hurricane Relief for texas. Thats a lot to do in the midst of uncertain uncertainties. I cant see the markets holding up with these uncertainties. We have the fed meeting, expected normalization of the balance sheet. Every single central bank in the world seems to be meeting in september, including the ecb what are the land mines youre looking out for . I think the major one is what happens in terms of corporate issuance at the end of the summer period that went into a lull. We had a few blockbuster deals now we will see that calendar fill in. Especially where Interest Rates are, spreads are, the lack of volume theres a great increase of savings. Looking for a place to be invested if these deals can come, attractive spreads and attractive rates, you will see a bit more of the confidence develop in terms of the equity market and the markets in general. Still a lot of liquidity and savings, and money that needs to be put to work thats the driving motivation Going Forward into the month of september. Central banks will be trying to bank away from accommodation theyve been trying to do that for over a year. Well over a year i think, you know, the fed will take the step at the september meeting to announce the beginning of the normalization so its as simple as a good corporate issuance calendar . How theyre received. Okay. Whether these deals come aggressively priced, the spreads continue to narrow, whether we see the amount of bids we see coming in for these offerings, well see how much savings there is out there how much money has to be put to work thats driving this market its not just share buybacks, not just m a activity, its money that needs to be put to work thats why the corporate issuance calendar is so important. Youve been calling for a tenyear yield thats even lower from here. Where do you see it at this point going into the final quarter. I still see that happening it was 2. 65 in the middle of december with the trump euphoria, were down to 2. 14 t i think as the spread between the two and tenyear narrows further, my expectation is the tenyear will go below 10 you have seen all those people the last three years calling for to go to 3 , we will not see that any time in the future. We will leave it there. Thank you very much. Thank you coming up, houston residents cleaning up from Hurricane Harvey and tall lig the damage well get updates after the break. And amtrak completing critical repairs at penn station. Well talk to the companys new coceo, Richard Anderson not richard dean anderson, could mcfigiver not help amtrak . With a stick of gum. Exactly also the former ceo of delta air lines. Well be right back. Kevin, meet your father. Kevin Kevin Kevin KevinKevin Kevin KevinKevin Kevin Kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond JamesFinancial Advisor can do for you. We, the people, are tired of being surprised with extra monthly fees. We want hd. And every box and dvr. All included. Because we dont like surprises. Yeah. Like changing up the celebrity at the end to someone more handsome. And talented. Really. And british. Switch from cable to directv. Get 4 rooms with hd, dvr, and every box included for 25 a month. Call 1800directv. Welcome back to squawk box. Residents of houston are working to clean up from Hurricane HarveyMorgan Brennan is there right now reporting on the automotive losses from the storm. We start with scott cohn monitoring the toxic tem cchemil aspect of it. Over the weekend, arkema chemical torched the remaining chemicals at its plant, with the risk of explosions gone, early yesterday morning they lifted the Evacuation Order thats just the start. Behind me is one of 41 Super Fund Sites throughout the storm zone this one just on the edge of houston. Well show you more of it after daybreak its 58 acres, theres neighborhoods within a few hundred yards. So what happens when you dump 27 trillion gallons of water on some of the most toxic waste sites in america thats what the epa and state officials are trying to figure out. They are saying 28 sites appear to be fine, the other 13, thats an open question but officials insist theyre on the case weve been working on all of the important issues since before landfall up to today. We have over 200 people working in this in the south texas area from corpus to port arthur on the response. Reporter how effective that will be remains to be seen as they try to get to these sites in some cases where theres still floodwaters, putting divers in the water to make sure that the seals that they put over these Hazardous Waste sites did hold they tell us there will be another update on all of those sites later today. Thank you right now we want to get over to Morgan Brennan good morning. As the cleanup efforts get underway in houston, its still too early to know the damage to homes and businesses, but the auto picture is taking shape the early estimates were 500,000 to 1 million vehicles damaged from this storm. We saw 200,000 vehicles damaged in katrina, 250,000 from super storm sandy. Were talking some very big numbers here its not just personal vehicles. We are seeing an impact on Car Dealerships. Dealerships like this one. This is clear lake infinity. It saw nearly 4 feet of water flood its lot seeping into brandnew cars us as a deerlship, shdealer about 4 million in unused inventory. Since we opened doors opened back up, cars have been rolling in every moment of the day as you heard there, the car dealership is taking in damaged cars from leasees. This is an infinity q 50 this is whats happening to all the cars all the interior and carpeting it being pulled out. You can still see some water in here before the mold sets in theyre watching to see how far up the water came in the cars if it hits the seat track, where you move the seat back and forth, thats where the electronics and circuitry is it has to get that high and youre looking at most likely a total loss so the insurers have said about three quarters of the cars they assessed are total losses. Thats expected to climb into the billions of dollars. Those are losses that will fall on to the Insurance Companies, like state farm, farmers, Berkshire Hathaway and all state which are the biggest insurers here in texas market you might be wondering in houston, a big driving city, how people will be getting around . Were seeing spikes in demand from rental car companies. Some folks saying theyre on waiting lists. And Car Dealerships