Canada tariffs, Bessent's buyback funding, Scott Kirby's plans for United and more in Morning Squawk

Happy Monday. As Coca-Cola works to automate dirty soda and refreshers, CNBC's Amelia Lucas takes readers inside the secretive labs where the soda maker is planning its next wave of innovation.

Stock futures are modestly lower this morning. The three major indexes are coming off a losing week.

Here are five key things investors need to know to start the trading day:

The U.S. on Saturday slapped 50% tariffs on many Canadian goods after the two countries failed to reach a trade deal last week. In response, Canadian Prime Minister Mark Carney said his country would impose reciprocal tariffs on the U.S. starting early next month.

Here's what to know:

• The new levies mark a stunning about-face from just a few days ago, when leaders from both countries signaled that they were closing in on a trade agreement.
• Carney said on Saturday that the U.S. "asked too much and offered too little." U.S. Trade Representative Jamieson Greer told CNBC's "Squawk Box" this morning that Canada "wanted more."
• U.S.-Canada trade tensions could provide another speedbump for Wall Street, which is coming off a tough week. The S&P 500 snapped its three-week winning streak, pressured by rising Treasury bond yields amid government spending concerns.
• Traders will also have their eye on Treasury Secretary Scott Bessent, who is set to unveil a new round of sanctions against Iran at a press conference this afternoon. Bessent billed the push as the "single greatest financial offensive ever."
• Follow live market updates here.

Treasury yields are lower this morning after CNBC's Steve Liesman reported that the department could tap its roughly $950 billion General Account to help fund its purchases of government bonds. Senior Treasury officials did not say how much of the TGA could be used but made clear it is an option.

Using the nearly $1 trillion fund could give more heft to the buyback operation Bessent unexpectedly expanded last week. Yields initially fell following his announcement but then rebounded, in part due to skepticism over how much firepower Bessent actually had.

Ten years in at United Airlines, CEO Scott Kirby has big plans for the second-most profitable U.S. carrier.

One of those plans, Kirby told CNBC's Leslie Josephs in an exclusive interview, is expanding United's presence at New York's John F. Kennedy International Airport. He also said he still isn't interested in buying a smaller carrier such as JetBlue, after his proposed mergers with Delta and American were both turned down.

But Kirby's next decision is about Boeing 737 Max 10 planes: After years of delays, the airline now has to figure out what to do with all the lie-flat seats it ordered.

The banking industry broadly sees Citigroup and Wells Fargo as well-positioned to take on a large acquisition. Competitors JPMorgan Chase and Bank of America, on the other hand, are blocked from making such a deal since they already account for more than 10% of national deposits.

There may be thousands of banks in the U.S., but these institutions are looking for a needle in the haystack. An acquisition target needs to be large enough to be impactful, but small enough to keep the acquirer below that 10% deposit limit.

CNBC's Hugh Son found five regional banks that fit that bill. Click here to see the full list and what each could offer.

The delay in the Paramount Skydance-Warner Bros. Discovery tie-up could have ramifications beyond the two companies. As CNBC's Lillian Rizzo writes, it could portend a slowdown in dealmaking across the media landscape.

Industry insiders are worried that intensified scrutiny from state regulators — like those of California, who are leading the antitrust lawsuit over the Paramount-WBD deal — could spook other companies considering mergers or acquisitions. If dealmaking takes a breather, the sector could instead set its sights on more partnerships and content agreements.

Representatives for Paramount and California were reportedly slated to meet today to discuss settling the antitrust suit. But those settlement talks are now off, according to the New York Times, which reported that California Attorney General Rob Bonta canceled the meeting and accused Paramount of acting in bad faith.

Here's what we're keeping an eye on this week:

• Tuesday: Dick's Sporting Goods earnings (before the bell); consumer confidence data for August
• Wednesday: Kohl's earnings (before the bell); Nvidia, Salesforce, Okta, CrowdStrike and HP earnings (after the bell); personal consumption expenditures price index for July; second-quarter GDP data
• Thursday: Best Buy earnings (before the bell); Workday, Affirm and Gap earnings (after the bell); Kansas City Federal Reserve's Economic Policy Symposium begins in Jackson Hole, Wyoming

— CNBC's Amelia Lucas, Ian Thomas, Jenni Reid, Kevin Breuninger, Anniek Bao, Sean Conlon, Fred Imbert, Steve Liesman, Hugh Leask, Leslie Josephs, Hugh Son and Lillian Rizzo contributed to this report.

Luke Fountain assisted in the production of this newsletter. Josephine Rozzelle edited this edition.