Concerns over government shutdown, stocks decline, the rise of dirty soda and more in Morning Squawk

This is CNBC’s morning newsletter.

Here are five key points for investors to consider as trading begins:

The Federal Government is set to shut down on Wednesday unless Congress reaches an agreement on funding. President Trump is expected to confer with top Congressional leaders today after cancelling a prior meeting with Democrats last week. The president has indicated there could be significant consequences for federal workers if a deal isn’t struck.

Points to keep in mind:

• Democrats are aiming to add an extension for the Affordable Care Act subsidies in the funding bill, but Republicans argue discussions should wait until after the shutdown is averted.
• Historically, the market tends to overlook shutdowns, but the broader economic environment might make this situation feel different for some investors.
• In a related incident, Trump shared a cartoon on social media showing him firing Federal Reserve Chair Jerome Powell.
• Cleveland Federal Bank President Beth Hammack remarked that it’s a challenging time for monetary policy during an interview on CNBC’s Squawk Box Europe.

A group of friends recently discovered how certain men were using the site “Nudify” to create deepfake porn from social media photos. This segment of the artificial intelligence industry is small but growing.

The darker aspects of the AI boom often go unnoticed, yet lawmakers are taking notice. Women’s advocacy groups are crucial in addressing the challenges posed by AI-generated non-consensual porn, as outlined in a report by CNBC’s Jonathan Vanian.

Last week saw the stock market experience a downturn after reaching record highs. The S&P 500 recorded its first losing week in four years, while small caps faced a setback, ending their seven-week winning streak.

Despite the recent decline, stock market gains have elevated US public companies’ value relative to GDP to an unprecedented 217%, suggesting traders might be taking excessive risks, as Warren Buffett noted back in 2001.

Looking ahead, investors are bracing for employment data slated for release this week.

Honeywell is trialing new cockpit alert systems designed to enhance pilots’ reaction times and prevent close-call situations at airports, which have garnered media attention recently.

While serious aviation accidents are uncommon, recent events have spotlighted the need for heightened safety measures during crucial moments. Safety experts are looking to develop innovative cockpit alerts, similar to research being conducted by Honeywell.

A CNBC correspondent experienced a test flight involving Honeywell’s new alert system on a Boeing 757.

Thanks to social media and reality television, the “dirty soda” trend is expanding beyond its Utah origins.

This drink typically combines soda with flavored syrups and cream, gaining popularity 15 years after its inception at the Utah-based chain Swig. Companies like PepsiCo and TGI Friday are now getting in on the trend, as reported by CNBC’s Amelia Lucas.

Statistics reveal a notable increase: today, 2.7% of American restaurants serve these cream-based carbonated drinks, up from 1.5% a decade ago.

Things to watch this week:

• Monday: Carnival revenue (before the bell)
• Tuesday: Nike revenue (after the bell); S&P/Case-Shiller Home Price Index (July); Consumer Confidence (September); JOLTs (August)
• Wednesday: ADP Employment Survey (September)
• Thursday: Weekly unemployment claims
• Friday: September Job Report