Of japan was fully consulted on this and as a result check out currencies. The yen jumping to a threeweek high on that news. Lets take a look at europe. This point the european markets are in the red. Germany down. The cac in france is down 1. 25 . The ftse in london off by half a percent. Take a look at crude oil this morning. This was a huge story yesterday. Wti dipped below 40 a barrel. Ended up closing at 40. 06. This morning up about 26 cents to 41. 31. This is a key number here. This has been the point where the s p has kind of linked back up with crude oil as crude oil comes down so have stocks at least at these levels. Well continue to keep a close eye on this today. All right. Now to the day ahead on the street. Sit another busy one. You will see the june personal income and spending numbers. Both are expected to rise. Roughly in line with mays number. Also out today julys auto sales. Dallas fed president rob kaplan speaking at a conference in beijing china in the next hour. In earnings news, pfizer, pa proctor and gamble. And Royal Caribbean reporting before the bell. After the close, aig, electronic arts. Fitbit and etsy. Jamie domon offering a rather upbeat view of the future. I wouldnt overreact to shortterm data. What we see is more household formation. Maikel franco peop more people buying homes. Hopefully keep the economy growing. I wish it was growing faster. Now dimon also said he would like to see for stability in the crude oil market, but cautioned what he called reacting to wabls in price. Were talking about a decline of over 20 . So you are looking at bear market just in the shortterm. Not sure i described that as a wobble, but thats what he said. Shortterm data. Tlilt news for everybody this morning. Warren buffett joining Hillary Clinton on the campaign trail in omaha yesterday and took issue with Donald Trumps refusal to release the tax returns on grounds he being audited. Now, ive got news for him. Im under audit too. And i would be delighted to meet him any play any time between now and election. Im bring my tax return. He can bring his tax return. Nobody is going to arrest us. It is not there is no rules against showing your tax returns. And just let people ask us questions about the items that are on there. We can all sit there and ask questions. Just to see whats in both of those. Clinton said after she is elected, she would come back to omaha and dance in the streets with buffet. Of course nebraska historically voted along republican lines. Its an interesting state because of the way the elect rats arat. Has one electoral vote. Getting a trolly for the day or Something Like this where hes going to take people to vote. Hes going to drive some people to vote, but renting the troil to do it. Just trying to get the vote ut. How does this cut. So we have three billionaires who support donald trump, rather Hillary Clinton, or against donald trump in the past couple of days, mark cuban, buffet, and michael bloomberg. Some people say thats great for Hillary Clinton. Other people say thats terrible for Hillary Clinton. This is a different election cycle. I think people are looking at voices from the past. Choices who have said things before. Im not sure. There are some people thats going help with. Theres others it wont. How hard do you think this is for him. Thats the most outspoken hes been in the world of politics. He come out in support of certain people over the years, but this to me much more or is vocally. I dont know. Okay. Meantime at a rally in pennsylvania. Donald trump had harsh words about Hillary Clinton. Trump said he made a deal with the devil. If you would have just not done anything, just go home, go to sleep, relax. He would have been a hero, but he made a deal with the devil. Shes the devil. He made a deal with the devil. Its true. Trump said he expects to win sanders votes because they have similar views on trade. Italian banks in crisis mode. Digesting the last friday stress test. Julia chatterley joins us from rome. Reporter thanks so much, becky. The banks is exactly what we talked about. He said he viewed the stress test results as a success and the progress is being made. On the Third Largest bank, monte dei paschi, he said the final solution, this private sector recapitalization scheme theyve come up with is the best option theyve got. First time theyre dealing with nonperforming loans. This is what makes this credible. He also more importantly says hell continue to fight against imposing any losses both on international investors, but also on retail investors. The bondholders in the banks here in it live. He said impoedsing the losses the socalled bailin would be a toxic procedure. Listen in. I dont agree with the new legislation in europe, but obviously i respect that. I dont agree because i believe the priority in this moment is give confidence to the citizens and if we continue with terror of bailin, is this a problem for the sentiment of confidence of european citizens so for me thrks , this is a mistake. Attacking the bank is not a financial issue. Its also a critical political issue ahead of a key referendum on political reform to be held here in october. Its basically becomes seen as a confidence vote on prime minster renzi. A confidence vote on italy in the eu and weve seen how shocks can happen in regards to the brexit vote we saw just a month ago so tackling the banks is part of the problem, but this also has become a fight for the political future of the italian government. Back to you. Julia, thank you very much. For our viewers that are not following italian banks and i certainly understand why you wouldnt, it is incredible the losses that weve seen. The best performing Italian Bank Stock is unicredit. Thats the best performing italian bank. You have as you mentioned bang of monte dei paschi, 80 loss in 12 months. Banco popular down 81 . Youve got unicredit down 70 . I know these are not household names, but these are the biggest banks in one of the biggest economies in the world and theyre down 60, 70, and 08 . Its simply incredible what has happened to the banks. We saw that happen here in the United States back in 2009 with some of the financials too. Obviously the that i think so needed to happen to those banks, its been put off for far too long. Jay my diamond yesterday. He said yes the european banks probably need recapitalization. I know its not getting a lot of play here. These are not household names or banks most of our viewers are going to use. Theyve got a little its hard not to say. Theres a mini financial crisis happening in europe. Long overdue. Lets talk more about the markets right now. The dow logging a sixday losing streak to kick off the month. We are joined by jonathan. Chief u. S. Market strategist. Covering the economic angling for us is bruce kasmon. Gentlemen, welcome to both of you. Jonathan, why dont we start off talking about the markets. People are getting nervous heading into august. What do kroi think happens in this scenario because there are so many moving pieces right now. You know, first the earning season was good enough. We had negative growth, but the beats were reasonably abundant. The back half of the year expectations the earnings continue to improve and go back into positive territory, but i think the real big issue here is the return of capital that shareholders are getting from companies is so much higher than what theyre getting in the bond market that it really continues to force investors into stocks. Youre still talking about there is no alternative. I wish that it was more complicated and interesting than that, but i think thats probably the truth. Bruce, the big question really has been what do we do now that we look at gdp numbers that were so disappointing last week. Were still watching the jobs number ofs closely this week. Do you think the economy is going to be able to hold up the second half . I think the economy is going to grow. I think what youve seen its better than weve been the last few quarters. The corporate sector that has had to adjust to pretty significant hit to profitability related to the rise of dollar. The Energy Sectors. And also productivity performance. There was ra risk here that would magnify and we saw the job numbers starting to slow. Weve had some good news lately the dollar is no longer going up. Energy prices is no longer a significant drag. But the Energy Sector i would echls also has moved down a large amount as a share of the economy. Its ability to provide impact outside of financial linkages has gone done. I dont think well, its always depends on why Energy Prices mover. Were seeing globally is goods demands picked up. I dont think the fall in energy price is reflecting a new shock to global demand. The u. S. Corporation sector is the key issue right now, and i think obviously the payroll number is central to this. I think what we saw in the june report and what we expect to see in the july report with 175,000 jobs being created is telling us that things are great, but they are not magnifying to the downside of what we saw in first half growth. Youre talking about the u. S. Corporate sector because of corporate spending and ability to put money back into thele economy has been one of the big hits weve taken on gdp right. Thats exactly right. The problems really relate to the profit drag weve had over the past year. Dollar is part of it, energy is part of it. We dont want to forget the weak productivity performance. Weve been living in a world where the economy is growing just over 7 in the last year. We still had unfloimt go down. Thats good for labor income and showing in the consumption numbers. Thats been one of the central problems weve been facing. We got this really lousy gdp number the market rallied and people were asking is bad news good news, but the reality is the big downdraft in gdp was on weaker inventories. A weak inventory tends to bel self correcting. Youre right in the trend of 2 . I dont think the market looked at this as a sign of real weak nts. Remind you 2 is not a gang buster economy. What is really a quote, lousy gdp number. Consumer side which is 70 to 75 of the economy did pretty well. To you point, bruce, youve got lack of business investment. Much of that is coming from oil and gas. Remember the oil and gas is the only industry in america that created jobs dregtly Arodys Vizcaino the financiafter the f crisis. Much of that is gone. We see the price of oil tick back up we might see a resurgence, but if not, we could see a lousy gdp number. Probably going to be centered mostly on that one sector. We also had at the beginning of the year all this esession nare concern that caused business to pull back a little bit. This is just a follow through of the market downturn in february. I would think youre not going to see the back half have anything like this. We did segments especially a year or two ago where we talked about energy being so important. It might skew the data to give the me exception the economy was stinking it up, but in reality things were okay outside of that sector, but if y. Reality youre probably doing okay. You just need to help in that one subject. I speak from personal experience. Same with corporate profits. If you look at x energy, we havent had a single down profit quarter in the last year and yet everybody talks about this having beena disaster. To ignore the effects tofs dollar, the Energy Sector hasnt shown up new a broader adjustment to business spending. The inventory side is a good thing because its gotten down lean. Its been there. Its been a drag. It showed up in hiring. The important thing right now is were starting to see that set of drags fade and thats why friday is so important of course, but to lose sight of the fact we have had this big adjustment in the u. S. Economy has been in a soft patch is missing the point about whats driving the world here. Very quickly, on friday, whats a number you would say this is a reasonable number thrks is a fair number, what something that below it would be. We think the trend is now settled into something around 150,000. Something in that range around that. Obviously one payroll number as weve seen could be very volatile. Also keep in mind, we also think its about an 80, 85,000 number thats consistent with the stabilization. The Unemployment Rate. We have markets. Were looking for the number. Hit a cycle high of 2. 7. Without a pick up in productivity growth. The underlying economy is going to be down. Trend like basis of corporates recovering the lost profitability theyve had. Bruce, i just do investors get the fact that 85 thousand is the new normal in terms of keeping the Unemployment Rate here. My gut is that theyll look at 100,000 print ads being a deceleration and what im hearing from you and other economists is thats where the tren trend needs toe be to keep the economy on track. We have to realize, 85,000 trend on payrolls is probably consiste consistent. We have a set of other issues about momentum and behavior. We heard from dudly and others in the fed is if the u. S. Economy sharply improves, they are not going to raise rates any time soon. They have set the bar higher themselves by saying they are looking for strong improvement. I think thats right. I think theyre going to be very patient here. If were sitting here on the second half of the year, core inflation, pc inflation is moving towards two and growth is sitting at two, you can decide on timing, but the fed is going to have to start reconsidering whether normalization is right. They have one forecasted tightening in there projections for the year. That seems about right although it will be at the back end of the year. Thank you for coming guys. All right coming up on squawk box, the cdc making history. , first travel warning within the continental United States. Its all because of the zika outbreak in miami. At the top of the hour, cdc will join us live from atlanta with everything you need to know about zika right now. Squawk box will be right back. Im just a guy who wan. Welcome back to squawk box. Nick denton personally filing for bankruptcy yesterday. This comes after several appeals to prevent hulk hogan from collecting. Gawkers media groups and brands will thrive under new ownership when the sale closes in the next few weeks. On this birthday for me, im consoled by the fact my colleagues will be freed from the tech billionaires vendetta. Neck denton is going to join us today. Well talk to him all about it. In the meantime officials in florida confirms 10 new cases of zika. Bringing the total to 14. Florida governor rick scott calling on the cdc to activate a an Emergency Response team to assist in the investigation. Eamon javrs is here. He joins us with the latest. Good morning. White house officials saying the teams are in fact on the way from the federal government to is the state of florida and theyre also saying they are warning pregnant women not to travel unnecessarily to a north miami neighborhood. Heres what we know as of right now. As you say, 14 cases have been determined to have developed locally. That means people who caught the vice in miami in that neighborhood not while traveling overseas. Active transmissions are occurring in wynwood neighborhood. Cdc is sending the Emergency Response teams in addition to teams that have been on the ground for months now in the state of florida. Apparently this is the first time the cdc has issued a travel warning for a place inside the continental United States. There is some good news here about zika and one of the good pieces of news is that the mosquito that carries zika, the versus, only travels about 150 yards during the course of the life cycle so that means this can remain relatively lowballized. Thats why that one neighborhood right now is pretty much the focus for officials, but the bad news is it can be very damaging for pregnant women or women who become pregnant in their in facted with zika. Could have very bad outcomes for the infants of those women. Officials very concerned here, but not necessarily expecting this is going to lead to a massive escalation. They do worry this is just the beginning. Eamon, i think thats the key point. This potentially being just the beginning. This is something the cdc has warned about. They thought there would be active transmission cases in the United States. This is proof of it. Look, wherever you have people coming back from south america or other potentially infected places you could see other mosquito transmissions cases pick up. We havent heard much about it yet. The particular challenge is this type of mosquito who carry this is type of virus. Eradicate the tiny little drops of water. Under a storm drain or in a gutter, all of those places can be hiding places for these mosquitos and officials are worried the spraying that theyve been doing so far is not effective. It might be the case that these mosquitos are developed a resistance to some sprays theyre using. Theyre trying to rotate the types of sprays they use. Limit the spread of this virus. Thank you very much. By the way, we should tell you thomas freeden will be joining us at the top of the hour. What a story. I know were all interested. I know you are an expert in this story and worried. Were all worried. Coming up founder Elizabeth Holmes making her first public appearance since being banned from an operatediing clinical l a look at s p winners and losers. Welcome back to squawk box right here on cnbc first in business worldwide. Take a look at u. S. Equity futures ahead of the markets this morning. Were looking at some red at the moment. Dow looks like it will open down. Nasdaq off about 12 points in the s p 500 looking to open down as well off about 5 points. Recapping this mornings top story. This may be weighing on the shinzo abe cabinet approving a 274 billion stimulus passage overnight. You think thats good. In some ways it is. The yen jumping to threeweek high on that news. Theres a good side to that. And a bad side. I heard this morning coming in listening to worldwide exchan exchange, this is japans 26th stimulus passage since 1990. Worked well. Too early for that kind of sarcasm. 26. Will i was actually surprised by the move in the yen, too. The yen is stronger only because the Stimulus Program was not quite as big. As people had thought it would be. 26 Stimulus Programs in 26 ye