Strong, he says september. Is he over 200, it has to be or. I thought he said 185. So as long as you hit that. I believe so. Which is the whole thing is bizarre because the jobs number is readvisable by 100,000 jobs every time anyway. Details, brian. If you get anywhere between a d plus and aminus, im going to. Thanks appreciate that fed. Lets check out overnight this asia. At least in japan looked like the market was up 1 . Markets were mixed in china. Hang sang was down less th than. 20 . In europe in the early trading right now, at least at this point, things are mixed. The cac is the biggest gainer of the major averages. The ftse and dax are slightly lower. In italy stocks are up. Abex up. 80 . Crude oil prices. Crude oil is a little lower. Right now down only by about 14 cents to 46. 21. Among top corporate stories. Deutsche bank had considered a merger with commerzbank in the past. A deal would combine germanys two top lenders. Played down that report saying he doesnt think a merger is an option, but in prepared remarks, calling for more bank mergers in europe. Saying banks are less risky than before the financial crisis, but also far less profitable. Category life is full of tradeoffs. Former viacom chief has sold the rest of the shares amounts to 31 billion. Former ceo and soon to be nonchairman sold 28 million worth of shares. Also received an exit package worth 72 medicillion after he l the battle of controlling the company to redstone. Earnings news. Hr misses. Results were impacted by foreign currency. This is the one stock i heard donald trump call out saying his tax plan, everybody is going to love except for hr block. You just wonder if there is a simpler tax code no matter how it comes through. I think they absolutely fear an years tax. They love a complicated tax code. My mom works for them. You have a vested interest as well. Shes my high level source. She actually said that i did talk to her about taxes. I always do. Folks, call your mom. Just tell her you love her. And she said, no, listen business has been up because more people with obamacare. A lot more credits and questions. More confusion. I dont think were going to go to a flat fill in a post card rate any time soon. I have a hard time imagining that too. By the way, if you need your taxes done, go see my mom. Wonderful person. Two fed president s walk into a symposium. One says lower rates are here to stay. One makes the case for hiking rates. Chicago fed president saying he is increasingly convinced the American Economy has slowed. He said a spike in long run rates is unlikely even if the fed finds the need to raise rates faster than expected, but at the same event in beijing overnight. Boston fed president rosengren making the case to raise rates. Said the reserve will likely meet target in employment goal soon and quicker Interest Rates over that time could shield the economy from risks. Points to rising real estate prices as one of those risks. Were going to be a running Football Team this year. Were going to be a passing Football Team this year. Thats if the Federal Reserve poached football. Treasury lew will speak this morning in washington. Regulation to trade, and monetary policy. A programming note, we are just two weeks away from the sixth annual cnbc delivering alpha conference. Primitive investor summit produced by cnbc and secretary lew will be speaking hat that conference. As well as former secretary timothy geithner. Tickets are available at delivering alpha. Com. Becky, secure your seat now. Yes. As we mentioned on todays economic agenda, start over. We will be gettingen early indication of fridays job data. Get the adp report. Its out at 8 15 eastern time. Forecast are looking for 180,000 private sector jobs to be added in the last month. Compares closely to last month. Saw 179,000. At 9 45 a. M. Well also be getting august chicago pmi. Followed by july pending home sales at ten. Plus at 7 00 we get Mortgage Applications. In the meantime, lets focus on the markets and the economy as we count down to the jobs report. Joining us now is jack caffery. Covering the economic angle for us is michael gapen. Chief economist at barclays. Good morning to both of you. Thank you. Why dont we star with you. Where do you think the fed stands. We mentioned 6080 chance they raise in september. We never left september. Our view was september or never. If labor markets were rolling over moving to december department make sense because i felt youd never get there. If the april may data was a fluke, they would be right back looking at september hike. If you get a good number, we can debate on what good means. If you get a good number, i think theyll go. Charlie evans out there morning how he thinks the economy is likely to slow down and a bad time to be raising rates. How much does Something Like that matter in this debate. Theres certainly a core within the committee and charlie is one of them that would prefer to say lets wait. Make sure inflation is 2 . Gin up a little demand before we go. Thats a minority view. I think yellens comments were pretty clear. Labor markets will move on forecast of inflation. I think charlie is in the minority at this point. If we do see a rate hike in september, does the market reabout poorly, does the market take it in stride. Were in the camp of a december rate hike. Arguably we would be negatively surprised by a september move. Arguably. Does it matter that much . I think when we talk about having so much focus on Forward Guidance for so long, the fact what the fed has been certainly consciously trying to inject more uncertainty in terms of we want to move, but we dont know when were going to move, but were going to be data dependent. I think theyve been trying to enjekt a little bit more i need the market to tighten a bit on my behalf and start doing some of the heavy lifting for us. We dont want to be too predictable, i guess. Are you talking about the long end of the curve. In other words, the question even if they raise the very shortterm rate that they control, the long end moves almost independently because of the central banks. Other central banks, need for duration, need to try to immu immunize portfolios. Its been up grindingly higher. That has been indicating some pressure for some need for some normalization at some point sooner maybe not sooner rather than later, but need for normalization to come. Even if they raise rates, they have sounding this whole sort of call that youre not going to be seeing sharply higher rates for a long time. Its going to be lower Interest Rate environment for a long time to come. That makes sense for the higher shortterm. I mean, the tricky thing is you wind up with flatter. Right. And ultimately flatter doesnt necessarily help the Financial System and banks were certainly working yesterday. In a particularly weak day, but a flatter curve doesnt necessarily speak to a necessarily more profitable curve. We would like to see more loan demand to go within that. Everybody worries a flat curve is a precursor to an inverted curve which may signal a recession. Are you ward aboorried about th not yet. It would depend. One hike isnt going to get you there. Is the long end of the curve reflecting the demand you were saying for the hunt for yield. Is it actually reflecting growth concern. So the policy mistake outcome. The more you think its the later, then yes you would be concerned. Right now i would say no. I think we had our recession scare in q4, q1. I think were probably looking at 2018, 2019 for the next time that will come around. What you were just saying, jack, talking about the financials, does that mean you are not a buyer of the financials here or the conventional wisdom is wrong. Conventional wisdom is financials are a rate player or conventional really a loan demand play. I guess either one. I think ultimately. Two strikes against them at this point. We have higher cost to go with, you know, what more muted demand and a flatter curve. I think thats why youre seeing the financials very focused on how do they control their cost with what they can do. Certainly they have been very much at a favor and theyve been at a favor for a long period of time. So you do find people looking for what hasnt worked. What is cheap, where expectations are low and i have overweights to financials. Theyve been frustratingly overweight. Ive had them. You think loan demand is going to pick up faster than expected. I dont think faster than expected. I think its going to be steady. The challenge we have is growth is okay. The frakt growth is okay. We would rather it be good. The fact its okay the fed will keep talking about moving and at some point be moving to a more normal policy. If growth were great, it would be a different discussion. How quickly you take the punch bowl away to the extent we have had a long, but very muted recovery thus far, i think we have the groundwork for continued extended along, but still very muted recovery. Its hard to find where imbalances are being pushed into the economy that creates the next recession or downdraft in earnings. Jack, thank you. Michael thank you. Duty wionald trump will where the president of mexico today. Ahead of the major imdwrags speech tonight. Eamon jabbers joining us with more. I did not see this coming and neither did a lot of political pun dents. He is going to meet with mexican president today. This is a gamble for both politicians this meeting in mexico. Donald trump is hugely unpopular in the country of mexico with the rhetoric on the campaign trail about mexicans coming into the United States, being rapists and criminal. That all has not gone over well in mexico to say the least, but its also a real gamble here for the mexican president who is polling in one recent political poll at 23 approval. Donald trump is at 4 in that recent mexican poll so give you a sense that both politicians here will have something on the line today. A fairly dramatic event in mexico and then well see Donald Trumps immigration speech in arizona later today in the evening time. One of the questions here is which donald trump immigration plan are we going to see in this speech tonight . Aides have hinted about softening, changing the rhetoric. Trump has remained steadfast about building the wall on the mexican border. Where he lands on the core issue of his president ial campaign is still somewhat in doubt. Now, lets turn a little bit to some of these political results in the political primaries in florida and arizona last night. Starting with the state of florida here, look at john mccain, heres a guy who is 80 years old running in a primary against an opponent who has brought up the age issue. John mccain ultimately winning last night, 52 to 39 against kelly ward. Moving on to the other big florida results last night. You can talk about marco rubio at 72 . Beruff is a trump supporters. Republican leaders prevailed on rubio to run for senate. Gotten past the trump challenge. Now hes got the awkward position of running. Still not retracting his criticism of donald trump who will be at the top of the ticket going into the fall. And another interesting one in arizona im sorry. Back in florida again. Debbie Wasserman Shultz. This is a fascinating race on the democratic side. Debbie Wasserman Shultz caught up in dnc controversy. Bernie sanders supporters angry with her for supporting Hillary Clinton over Bernie Sanders and Bernie Sanders himself endorsed debbie Wasserman Shultz democratic opponent. Still debbie Wasserman Shultz ske squeaks by 57 to 43. President of mexico invited both candidates, right. Yes. He invited both. We havent heard from the Clinton Campaign yet whether shes going to accept that invitation or not. So much more attention on the Trump Campaign going down to mexico. What kind of reassumption will he get. What will he say to the mexican team. All of that is going to be fascinating political theater today. Whether or not Hillary Clinton decides its in her interest to accept the invitation given what donald trump does today. Eamon jabbers, thank you. Well see you all day long. Coming up, a hurricane watch in effect for parts of florida gulf coast. Hawaii. An update on the storms track and impact on tourism. Next. Welcome back. 18 minutes after the hour. Google is taking on uber with a new Ride Sharing Service. Google service will help San Francisco commuters join car pools. Company began a Pilot Program around california headquarters that may allow service to thousands of workers in the area. You have to use the app waze which is owned by google. An awesome app, by the way. Ive got a crown on waze. If you get the points. By submitting things like potholes. I drive so much. My commute is so long. Ive got a little crown. You submit that stuff while youre driving. No, when he gets home. No, never. Theres not a cop hidden behind that billboard. So unlike i do have a radar detector as well. I feel invincible. Today im going to get pulled over. Connects drivers who are heading in the same direction. Charges riders at most. 54 a mile. Less than uber and lyft rides. Right now google isnt take a fee. Its not like i have a uber drive, i have a lyft driver. It sounds like michelle is heading to work. I hit a button. You want the get money, pick me up, throw me out a mile later. Its kind of like hitchhiking. It does smell a lot like hitchhiking. But traceable to its fine. You no what theyre calling it . Guber. Cant imagine why. Going to the general store. Floridas gulf coast now under a hurricane watch. Two major storms bearing down on hawaii this week as well. Weather channel jen carfagno joins us now. Good morning. Interesting things in the gulf of mexico. We havent had a hurk catch in florida in about three or four years. Its been a while. There are watches up. We have what is now a tropical depression and wondering how do we go from tropical depression to hurk. It can happen pretty quickly. Let me show you what i have. Increasing in terms of the amount of thunderstorm activity. It looks more impressive out there. It is just a depression. Wind are 35 miles per hour. It is expected to make a turn more to the north and east. Making a land fall. What is forecast to be a strong Tropical Storm. Let me talk about the warnings and watching. Weve got Tropical Storm warnings for this entire area, including panama city. Goes down to tarpon springs. The hurk watches for a portion of that because there is a chance that it increases to hurk status. Look at how far reaches these clouds are, very wide cloud shield with outer periphery rain in tampa. The bulk of the Activity Still over the gulf of mexico. Were going to start the day with rain and that will be a nice wakeup call for folks here in the tampa area. There could be impacts. Youre not in the cone tampa, but doesnt mean there wont be impacts. Even if youre outside the cone, there will be rain, there will be strong gusty winds, but some of the most severe kbangts we think closer to the center of the circulation as it makes the approach to florida with the risk of surge and also with that risk, very heavy rain. When you have land fall hurricane, you have the risk of tornado. These are the areas we are watching. This is an area really prone to storm surge so just one of the issues, one of the many issues we are looking at i. You mentioned the two hurks over there in hawaii as well. Calling them a pair hurricane v of hurricanes. We have two lined up. Madeline and lester. Wind of over 6080 miles an hour to the big island of hawaii. Were going to talk more about that right now because those two major storms threatening the Hawaiian Islands putting tourism at risk. Met me show you the weather picture with the two hurricanes. Madeline and lester. Not one, two hurricanes hurling towards the state of hawaii. Madeline apparently weakening. Thats the notice we got this morning. Category two storm. Moving southwest of honolulu. Not a direct hit. It would have been a first direct hit since 1949. You have the strong hurricane fouling th ing following that. Back to back hurricane. Hawaii though we know tourist destination. Tourist favorite. And tourism is the biggest employer in the state, accounting for 35 of jobs in hawaii. Also the biggest component and contributor to hawaiis economy. The state is coming off a record month of Tourist Spending in july of over 1. 5 billion. Theyve seen five straight years of Record Numbers in terms of tou tourist numbers and visitors to the state. Internationally japan sends in the Largest Group of tourists. Those tourists went down in the month of july, but for the half year in 2016, theyre up 1. 5 . Theyre spending a little bit less. After japan, its canada with the currency weakness. Fewer canadians have visited hawaii. Thats being made up right now by the huge increase and they said huge on the phone last night in korean numbers. Australia and Chinese Tourists coming in. Hawaii in the mids of tourism boom. Thank direct flights. Also the zika outbreak in the mainland and also made latin america and the caribbean less attractive. Theyre going to hawaii inside. Okay. Thats good data there. Thanks susan. When we come back, we have more of todays top stories. Including another setback for theranos. Later a celebrity broker showdown. Facing off on the latest edition of cnbc Million Dollar home series. Take a look at yesterdays s p winners and losers. When whirlpo buildsdsn appliance, they put everything they know to it. But once its sold, there usually it a way to keep improving that prodt. Toda whirlpool can analyze iot sensoror fr concted appliance the ibm cloud. So they n contuously learn how customers e using their products and how the machines respond. Rnessing data to make eat products better thats at the ibm cloud. Welcome back to squawk box, everybody. Happy wednesday. This is cnbc. First in business worldwide. Lets check out the u. S. Equity futures on the last trading day in the