Im sara eisen with mark san toll i filling in for wilfred frost. Good monday morning. New month of trading. Lets show you where Global Market are starting the month of august. July was one of the best months weve seen since back in march. A gain of more than 3 for the dow, s p, double that for the nasdaq and were starting on a high note. Fractional gains. S p futures up 3. 5. Nasdaq futures up 6. As for the tenyear treasury note yield, it was the first look at the second quarter. It came in way below economist estimation. That pushed the yields down. Theres some selling pushing bond yields higher. Were still below that 150 mark. Well talk about at that later. Lets get a look at the european markets right now. We did have European Data coming out. The manufacturing pmis in general coming in roughly as expected. You see there germany up marge ally. That pmi was better than expected. And then a little below the flat line in italy and spain. Those banking concerns hover over the market. Let look at the European Banks. Theyre in focus following the European Bank stress test. You see unicredit and intessa. Theyre taking it monte dei paschi. Bouncing a little bit but minimal levels. More about this from rome in about 15 minutes. Let look at asia. Also mixed Economic Data. The manufacturing pmi. Below the key level. The difference between expansion and contraction. A private survey of small to Mediumsized Companies showed growth. A mixed message when you see the index is not doing much and the hang seng in hong kong up. Notable that japan finished higher. The japanese yen surged. Oil, coming off a sharply lower month in the month of july, down double digits in terms of Percentage Points and the declines continue this morning. Wti crude at 4119 down a percent. Brent down a percent as well. We got into the 40 range on friday. As for the currency market, the euro is weakening a bit. A weak day for the dollar on friday. Euro dollar 111. Its all on the fed, it seems like for the currency markets right now. And the bank of england, which is due later this week and there are expectations that it will move in terms of stimulus, potential qe, lowering rates, you name it to fight the brexit impact. 131 is the pound. Its under pressure. Dollar yen, strong dollar, weaker yen, thats a reversal of last week. That means sentiment is better. It is better this morning. Its build to go that jobs report in the u. S. On friday. The quickly gold here. Moves of course in opposite directions. For the dollar. Its a bit stronger this morning. Gold back up. To 0. 1 . Now to the top corporate story. Uber set to merge with rival Chinese Service didi in a deal that would value the company at 35 billion. Eunice yun joins us with the details. Hello eunice. Hi, mike. In the past half hour, didi as well as some sources to the deal have confirmed that it is indeed true, didi is going to be acquiring all of ubers assets in china. That includes ubers brand, its operations, as well as its data services. Also the sources who are close to the deal say that the investors of uber will be taking over a 20 stake in the combined company and it is valued at 35 billion. Didi also had said that the didi founder is going to have a role on ubers board and the ceo of uber is going to be joining didis board. So this deal already confirmed by didi as well as some of the sources close to the deal. It really does underscore some of the trouble that both of these companies have been having with a price war. Theyve been raising a lot of money or spending a lot of money here. Uber has said it had been spending 1 billion a year and we had heard last week about the pressure that many of its investors were putting on both companies in order to try to come up with some sort of deal because theyve been disgruntled or concerned about the money that has been lost by both of the companies. Now that its confirmed some of the sources who are close to the deal say that both companies can now move forward to try to really take advantage of the potential in this market. Guys . Wonder if it says anything eunice about the difficulties, the challenges for u. S. Technology companies and other companies of doing business in china, you think back to yahoo for instance selling its china stake to alibaba. Is this the roadmap . Is this what they have to do, partner with a local company in order to gain favor with government and the regulations and whatever else is needed . Yeah, youre not the only one who has been asking that. Its very difficult to pinpoint because obviously were seeing both of these companies in a fierce battle. There are a lot of Different Reasons why uber would be facing a problem. But there have been a lot of concerns that just like so many other companies as you had listed who do come from outside the country that uber is just the latest to fall on its sword because it hasnt been able to really compete in this market. Some of these people within the Tech Industry who have been concerned about it have said if you look at the financial backing for example of didi, that uber originally made quite a bit of headway in this market, growing its market share and really trying to build a presence. Its service has been quite popular. But that didi has a lot of backers, including now b. I. D. U because of this, as well as alibaba and ten cent. Huk tech titans behind it. It has the severyn health fund. If you look at that in terms of the money going into the company and in terms of what people here have been saying, at least in the Business Community about the uneven playing field, there are many concerns that this is a trend that were going to see in the future for i. T. Companies that are based outside of china. Certainly hard to compete with that. Eunice yoon live for us in beijing for us. Thanks, eunice. Mike, whats your take . One interesting angle am apple did invest in didi, that was an eyecatching deal. There was that cute response from travis when he said his girlfriend owns apple shares and therefore, shes an investor in a rival to uber over there. Maybe theres more harmony in the relationship because theyre on the same page. I wonder if apple gets paid on this deal . They just have a proportional stake maybe in the new company. In other news on uber, the Financial Times reporting that the right hailing company is working on april major expansion of its internal mapping program. Uber is investing half a billion dollars into a Global Mapping project. The company is looking to wean itself off of the dependence on google maps and potentially pave the way here for driverless cars. In other deal news this morning, tesla and solar city could announce theyve agreed to a merger. The two firms would have to convince shareholders to back the combination. Its part of elon musks strategy, pafrpt of the master plan he calls it. Musk wants to offer a Single Source of hardware to power a low carbon lifestyle. Hes the biggest shareholder in both companies. A fairly busy week for Economic Data and earnings reports. Today, well get july msn Manufacturing Index and tomorrow shinzo abe is set to announce his stimulus plan tomorrow. All those deals and the markets have been anticipating that. In the u. S. , look for personal consumption, income and spending and july auto sales. Wednesday, its the july adp report and the ism services index. Thursday, the bank of england has a policy meeting and june factory orders. Finally the week is topped off, as mike mentioned, the big july jobs report on friday. Coming oaf a strong number in june. As for earnings central, more than 100 companies in the s p 500 reporting results this week. Notable names, pfizer, time warner, procter gamble. Tess larks viacom and kraft heinz. Starting the month of august, coming off a positive month but a negative week for stocks overall seems to be dominated by better u. S. Economic data which is why the gdp report was a blow. It kangd changed president story a bit. Theyve been surging basically. All the data better than expected. This was a complicated one. Below the surface of the gdp number, it was good and bad. The report was not so good was it not so good enough to make a fed pause . We can never figure out and everybody is always guessing. Or were they going to pause anyway. They want to keep the december idea out there so people dont abandon the idea of a hike. As we get into a new month, Goldman Sachs cut the rating to underweight. They say the Risk Appetite has turned to neutral suggesting that markets are more vulnerable to growth and policy disappointment into august. The downgrade comes as gold man says the recent rally in stocks is driven by the brexit vote and aid search for yield. So whats the pro column on this . I think its an okay najment of a few things. We had a huge bounceback from february and post brexit. It seems as if this is one of the easy money is the made calls i think. Didnt seem easy. But i think in gold mans point much view, its no longer the case that people are skeptical and underweight the market. Also seasonally, august and september are tough months. It might seem like kind of a logical time to take some off the table. Gold man has been neutral and slightly bearish on stocks over the year. If you were to listen to them, you would have missed this rally which has sent the s p firmly into positive territory for the year. Their u. S. Target remains below where the s p is trading right now. I believe its the 2100. Well see if theyre right this time around. In new york fed president bill dudley early this morning, in indonesia. Dudley saying the markets shouldnt rule out the possibility that the fed will hike Interest Rates again this year if the u. S. Economy improves significantly. Still dudley warns that global lackluster growth is limiting the feds policy options. Hes urging caution on raising rates following the brexit vote and big gains for the dollar. This is a more internationally focused fed no matter how you look at it. Is it so much so that they dont raise rates this year. That is the question. It was really, you could find anything in dudleys comments if youre a hawk or a dove to seize upon. Maybe its the way they want the not to get overconfident. Which is frustrating of course. Meanwhile, a few stocks to watch today. Heineken shares under pressure as the results fell short of estimates. This is demand weakening key regions like africa, russia and the middle east. Heineken ceo speaking with colleagues in europe about the sab deal and owe tension impact on heineken the deal abisab is a very big deal. We compete on a market by market basis. If you look at the market by market, nothing really changed. Meantime, glaxosmithkline and the two firms will create a new Company Worth over 700 million focusing on fighting diseases and targeting electrical signals in the body. Part of the field known as bioelectric nicks. When we come back, European Banks under pressure following the latest stress test results. Weve got a roundup of the names most at risk and what you need to know about the story. Interview with jamie dimon live at 1 00 p. M. Eastern time. Power lunch. Stay tuned. Youre watching cnbc. First in business worldwide. Whether its bringing cuttingedge wifi to 35,000 fans. Or keeping a Hotels Guests connected. Businesses count on communication, and communication counts on centurylink. Todd spaletto, president of the north face, we are working on the prototype to match customers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. A Perfect Choice watson. No wonder our Customer Loyalty numbers keep climbing. I believe we can do even better. I like the way you think. And grease in just a minute on dirt and grime i believe we can do even better. Mr. Clean will clean your whole house and every room thats in it floors, doors, walls, halls hes so tough, he cleans em all mr. Clean welcome back to worldwide ex chachlgt lets get you up to speed. U. S. Equity futures headed for a moderately positive open. Most of the gains in the first half of the month. Tight range ever since. 21 nasdaq was out performer last month looking at slightly more than. 1 of 1 to the outside. Looking at oil. Continuing the down trend. Down about 1 both wti crude and brent. Thats potentially a Pressure Point for equity. You have to wonder how long that price down from a month ago. Italian banks under intense scrutiny following the latest european stress test results which hit late friday night in europe. Julia chatterley joins us live from rome. Julia, what happens next . Good morning sara. As you were just pointing out, the italian banks were very much in focus. Monte dei paschi, this was the bank really in focus. Expected to do the worst and it did. In fact, in the ad verse snare yoer, all their capital gets wiped out. Yet, this stock, if you look at the share performance, is at the top of the stock 6 hup. At the 11th hour on friday, it was announced they would get a recapitalization back topped by the biggest banks in the world, including jpmorgan. The condition is that a whole host of nonperforming loans are taken off Balance Sheets and financed. The hope here is that youre going to build some kind of Market Going Forward to alleviate the stress of nonperforming loans more broadly in the banking sector. One of the elements of this is that the atlante fund, a collection of cash created here in italy by the largest banks will be buying these bonds. I know its complicated. Stay with me. One of the big banks that provides money is unicredit. Its also one of the top three banks in italy. Unicredit is down. Why . Because the unofficial pass fail mark was around 7 of taiwan capital and they barely scraped through. Investors cautious about unicredit and unicredit one of the banks thats involved in helping out monte dei paschi. Its very italian here. Very complicated. But youve got one bank outperforming because theyre getting help and one bank underperforming because, again, this concern still about capital and profitability. Watch both of these stocks, guys. Theres a long way to go to claw back the losses that weve seen year to date. In monte dei paschi, 70 losses. Ouch. Outside the ruins of rome. Julia, one question its beautiful. It is a beautiful shot. What is the government response . We know that there are different rules there. When in the hus when we hear about bank problems, we hear about tarp, a massive package to reinfuse the banks with capital. How limited are the governments in doing that right now . I know there are new rules. Try to separate the sovereign link from the banks. So this is a really critical question, sara. Why drpt europe do its own tarp. Unfortunately, we didnt. Now the all right. Well, too bad we didnt get the answer to that critical question. Julia chatterley. Im sure well see more of her from rome. Shell be speaking with the Prime Minister over there and shell have that interview for us tomorrow. Matteo renzia a cnbc exclusive. The Prime Minister of italy on the test results. A roundup of the political stories. Including a fight over the debates and the nfl. Who would have thought. Yes. Heading to break, heres the National Forecast from the weather channels kelly cass. Hey, good morning. After a very stormy weekend in the northeast, were not seeing much of a break as we take it back to work today. More rain and thunderstorms for new york city, philadelphia as well. Some places over the weekend, especially west of baltimore, seeing well over half a foot of rainfall that led to all kinds of problems with flash flooding. We still have the chance of popup showers and thunderstorms across the south. Its very humid. Cant rule it out. 100 degrees in dallas for today with the blazing sunshine out there. 93 degrees in dallas. We will have a chance for seeing Severe Weather today across the northern plains. The main threat is going to be damaging gusty winds and possibly big hail out of the storms as well. Cooler temperatures in bismarck. 79. Not bad in chicago. 83 degrees. Thats a look at your National Forecast. Go get it. Coach gilman used his cash rewards credit card from bank of america to earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. The cash rewards credit card from bank of america. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. [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. Good morning. Welcome to Worldwide Exchange. Time for political news. Its the first full week of the general Election Campaign and controversial trump headlines are dominating coverage this morning. The republican nominee engaging in an emotionally charged feud with khan, the parents of a decorated Muslim American army captain killed by a suicide bomber in iraq. The khans spoke out against trumps call to ban muslims from the u. S. Trump had all sorts of outrage and replied the fallen soediers mother did not speak side her husband at the dnc speech because theyre muslim. His wife, if you look at his wife, she was standing there, she h