Im not wearing socks. Im not wearing socks. Can i ask you a question . What do i got to do to get you out of that jacket . Nothing. It is hot in here. It is hot over here. You dont call him love gov, right . No. You do do you refer to him as governor when he left the office in that way . Or mr. Spitzer, ellioiot. Youve seen him at conferences and meetings and on cnbc. I like spitzer. He was kind of a i didnt agree with him politically a lot, but i thought he was a dashing figure with a huge future. His wife is wonderful. We will see. We will. A lot of tough questions to ask. There are. A lot of them have been asked 100 times already. I dont want to ask questions that have been asked 100 times already. Number one, he knows how to answer them. Number two very good at answering questions. Very, very good. Brilliant, obvious. I smart guy. He is. Lets headlines this morning. Just go back down. This is andrews last part of his read. To give it to me, to give it to me, to give me what i deserve. But first, lets get up to speed on the mornings top headlines. For that we need to talk to joe. Come to me. China. China is warning of a grim outlook for trade, the second largest economy reporting a drop in exports. And imports in june. And both have been expected to rise. The numbers are likely going to raise concerns about the extent of the slowdown in chinese economy. Also overall, global demand. Stocks, though, rallied on talk the central bank may have to ease policy to boost growth. It is important to note chinese trade data is volatile and the government has cracked down on the use of fake invoicing that in the past had exaggerated exports. Well have more from eunice eun in 20 minutes, around 20 past the hour. The other major Global Market story today, the federal the fed minutes from the june fmoc meeting will be released at 2 00 eastern time this afternoon. Traders are looking for details on some of the behind the scenes discussion. Were going to remember, of course, fed chairman ben bernanke announced last month that the fed could cut back Quantitative Easing Program before the end of the year. Also worth watching today, bernanke scheduled to speak at 4 10 eastern time from the National Bureau of Economic Research conference. Also on the topic of the central bank, San Francisco fed president John Williams is arguing the moderation is the key when using unconventional tools in a paper that hes going to be presenting later this week. He says uncertainty about how well the feds unconventional policy tools will work means using them more aggressively would not bring unemployment and inflation levels back to normal we got to pick the most well known John Williams composition. Play it in the background. And im wondering whether im a little slow first thing in the morning is there any connection between why you didnt wear socks and the governor . I thought that i might get a laugh out of it from you. But is he going to know youre not wearing socks . No. I wear is that the way you welcome our guests by since we made a sock joke yesterday, i thought i could get a laugh from you, which is asking for a lot, i know. I dont know. I thought about this. I actually wrote down some ways of trying to phrase how to get around to how im im trying to explain in my own thinking how i might have a problem with it and what he would tell people to try to allay their fears. There is not some fundamental character flaw that would i know urges, i have urges. I dont want to tell you about urges that i dont act on, right . And we all have those. But most of this, especially if youre in a position like that, youre able to hopefully control especially being on the air. Think if we just didnt control urges on the air, we wouldnt be on the air for long. In other economic releases of note today, i want to take my shirt off right now. This moment has been brought to you by joe kernen. I know you have i was once with a guy who took his shirt off. Hes still on tv. Well leave him out of it. Weekly Mortgage Applications at 7 00 eastern. At 10 00, in the commerce department, well report on wholesale trade inventories. That was a new york posting. When former yeah. You basically gave it away. Anyone who knows him knows he at 1 00 eastern, the markets are awaiting the auction. 21 billion in reopen tenyear notes. Look at my guns. Look at my guns. I think you should do that. My guns arent my guns are nothing to look at. As for stocks, the major indexes rose for fourth straight session yesterday. Biggest winners, riskier small cap stocks and sectors that do best when the economy is growing. Well look this morning. It was a good session yesterday. Diabe didnt close all the way on the highs. Have to chalk it up to a little bit of surprise, four straight really strong days even as the te tenyear has both gone up and tested the highs and come back a little. There is what is happening today. Not much. Down about 8 points so far. A lot can happen between now and exactly unchanged on the dow. Broader markets, this morning, Oil Continues to confound people that dont think it should be 100. 104. 81. The dollar is tapering. Becomes more likely at some point in the near future. Has done pretty well against the other currencies. Gold has made a stand, a valiant stand, but metals do that or commodities do that a lot before either rebounding or heading back down to new lows. We dont know at this point, but an ugly charter if youre holding the precious metal. That is an investment that smart people have gotten totally burned on. I dont know why you think you can be really smart and no idea what is going to happen to gold, right . So many different you can be really smart and not know what is going to happen with stocks or companies, there is a way these guys, like if you really like chinos or something, or einhorn usually, you look at all the inner workings, if you can believe the number, there is a way to figure out things. With gold, how to you ever it is all emotions. Lets go across the pond. Time for the Global Markets report. Ross westgate standing by in london this morning. Ross . Good to see you. Thanks for that. We are weighted to the downside h pretty good gains yesterday for the ftse up about 1 . You can see decliners outpacing advancers at the moment by about 8 points or 72. Showing you where we stand now, not big losses really. Ftse 100 down a third. The xetra dax down a quarter. S p downgrading italy to just two notches above junk. There is one standout today, burberry, the fashion chain up 3. 6 , 18 increase in sales, blew past expectations, particularly doing very well and then spring and summer collection in china. Also maintained their full year. Thats the standout today. Because of that italy downgrade, we also have banks weaker. One thing to look at here is basic resources in the sectors down about a percent. This is on weaker chinese trade data. Much weaker than expected. Exports down 3 . Expect to be up 4 . Imports down. 7. Theyre expected to be up 8 . The weaker external environment. Plus attempts by china to crack down on false invoicing as well, which had inflated previous trade numbers. Resources taking a hit on the back of the chinese trade data. Look at italian banks, hit by the s p downgrade for italy. Down around 2 . We saw short dated debt tbills at auction for italy. Yield at fourmonth high about an hour or so ago. Italian yields are higher as a result of 4. 46 . Number of comments coming out from italy as well today. The one good news for the country, had an increase in vat receipts for a long while. So that maybe suggests there is some benefit coming through from the forms they had. Thats where we stand in europe right now. Ross, thank you for that. In other news this morning, natural gas well is leaking in the gulf off of the louisiana coast. The coast guard says the crew was working temporarily to plug the well on monday night and lost control of it. Everyone on the platform was evacuated safely. The well did not blow out and there was no explosion or fire. Thats the good news. The coast guard reports an Aerial Survey revealed a rainbow sheen four miles wide and three quarters of a mile long on the gulf surface. No indication the leak will take on nearly the scale of the 2010 flow out of that bp well we talked about so many times. Also, now lets get to the investigation into the Asiana Airlines crash in San Francisco. The ntsb now saying the pilots aboard the 777 relied on automatic equipment to maintain air speed and they didnt realize the plane was flying too slowly until it was just 200 feet above the ground. Investigators have completed their initial interviews with the flight crew, including the training captain instructing the pilot at the controls. Unfortunately the first time the captain first trip as the instructor. First trip together. The ntsb says the evacuation procedures are also under scrutiny. But you think the planes are controlled by computers but you need to know how to control the computer and the instructor had never been instructing, first time. And the guy and the Computer System at sfo out. It seems to me, if im the faa, one of the rules i want to put in place is not have them all at the same time. If you shut down a Computer System at a major airport dont have new guys doing it they put out a bulletin. Thats the first time i thought, listening to that, we havent even considered the possibility that there could be something wrong with the plane. Some kind of mechanical, maybe. Who knows. Here we are, the guys are new, dont know that theyre doing, but then you hear the equipment that was supposed to say youre going too slow, what if doesnt fail very often, fails with everyone else, just happened to just this time. I dont know. When it happens, one out of 50 then years and years of when if didnt happen. There has to be a lot of things that went into youre a very good flyer. Im an anxious one. Im a very good im much more nervous right now. That the lights will fall down. You know how many lights are up there . You know what they weigh . If one hits you on your head, it will go right into your we are much sputnik hitting us through the roof is more likely than a plane crash. I hope youre right. I hope youre right. Statistics for this. Like the lottery. In washington news, House Republicans are going to hold a special meeting to figure out what to do about immigration. We all believe that if were going to go forward on immigration reform, the first big sfep tep is you have to hav serious border security. Boehner says his party will start from scratch, not with the bill that passed the senate. Also today, former president george w. Bush will speak at a naturalization ceremony at his new library. Bush said the system is broken and needs to be fixed in just a few minutes. The white house issued a report on the economic benefits of fixing what it calls our broken immigration system. The report says that the Senate Passed reform bill would increase real gdp relative to current law projections na are at 3. 3 and 2023 and 5. 4 in 2033. If you say to a liberal, all you got to do is say that george w. Bush library and they start laughing. Why . They do. You do. Watch this. George w. Bush library what is it about your i can see it. It is underneath only because why . Your funny delivery. Why do you all snicker when you say george w. Bush library in. Because there is a view, which i dont need to espouse on this program. Another headline, out of d. C. , Congressional Republicans are pressing president obama to delay requirements under his Health Care Law that forces americans to obtain insurance. The individual mandate is what and it figures it is like when market participants, if someone shows a little weakness somewhere, they force it, right . They push it. They push it. And paulson used to say, i need a big bazooka. Showing the slightest bit of weakness, theyll push me. This is what is happening already. The administration gave employers a oneyear reprieve from having to provide it to staff, but and then a front page story in the wall street journal talks about the rules that havent been written, the government is not ready to launch any of the exchanges either that people are going to use to shop for private insurance on october 1st. The decision to delay the employer mandate, it says, was partially due that it would be necessary that necessary rules had not been set out for businesses to follow and it also prevented anyone from getting Computers Ready for the mandate. Hard for me to read it because they had to fact that in there. The fact that i dont use it means nothing. Want to talk about bacon this morning . I know that they made a big deal talking about the security risk, which im fully behind. The senate is going to hold a hearing today on chinas plan to buy smithfield foods. Senators will question smithfield ceo about food safety and foreign ownership. He has vigorously defended the deal. The ultimate approval is in the hands of the committee on Foreign Investment in the United States, better known as sifus. Chinese trade data disappointing traders overnight. Could bad news be good news for the markets . The good news bad news play. And u. S. And china as frenemies. Little penicillin will clear that up. Before we head to break, look at yesterdays winners and losers. Well be right back. All right. Welcome back. U. S. Equity futures down 14 points or so at this hour, making headlines regulators labeled aig and ge capital as potential threats to the financial system. The Financial StabilityOversite Council announcing the two companies will be designated systemically important. It brings stricter government ov oversight. They must submit to inspections by examiners. In the topic of too big to fail, our main focus, the keynote speaker, treasury secretary jack lew and it is too bad we couldnt get the author of too big to fail to lead one of those panels. I am leading one of those panels. You are . Good. Because too big to fail will be a it will be it is good youre going to be there. We licensed the name to them. Lets get to the National Weather forecast with alex alex, good morning to you. Good morning to you. The big story is were tracking chantal in the caribbean. Not looking very healthy open the satellite view. At this point, still from the National Hurricane center, a Tropical Storm, sustained winds have come down since the last advisory to 45 miles per hour. Still moving very quickly to the west northwest at 20 miles per hour. Puerto rico feeling the impacts with rain, gusty winds here and there. We anticipate to see that continue to work its way across the island ofe haiti feeling the impacts. Places like cube wa and by the of the week, we could be talking impacts for parts of the southeast, coming in the form of heavy rain and some of these spots. Something to keep a track on, very closely here, Tropical Storm chantal and what it will be doing over the coming days. In the meantime, here in the u. S. , generally going to be talking about Stormy Weather from the northeast to the ohio valley. Some storms could pack a punch, damaging winds as well as hail. Watch out for a few isolated tornadoes. Back to you. Alex, real quick. We were talking about it, who names these things . Where did chantal come from . I believe it is the National Hurricane center. They keep rotating the names every i believe every five years. To get to chantal, it seems like it would be like every 500 no, you would have to do every they ran out of cs . Is next year chanel . I dont know. And the hurricanes take on sort of the if theyre bad, they take now we think of sandy in a way we never thought of that name before. We had a weather girl named katrina voss, poor thing. She had to quit the job. Had to quit the business. Had to change her name. Had to change her name. Hi, im katrina, here to talk about the weather. Have this had an alex yet . They have. They have . You know who they had that was really bad, andrew in miami. Terrible, terrible. Could not be in the business. Alex, thank you for that. Well swing over to beijing now. China warning of a grim outlook for trade. The country reporting a trop in e exports and imports in june. Both expected to rise. Fifth meeting will be held in washington today. Joining us now on all of this is eunice eun from beijing. Good morning, guys. Basically for the strategic and economic dialogue, a lot of people have High Expectations after president obama and president jinping of china met in california recently. A lot of people are hoping that were going to see a new type of relationship between beijing and washington going forward. Grand a handful. When the u. S. Ambassador in beijing takes time off his diplomatic duties to market imported american cherries to hungry chinese at a sams club, it is clear, china is important to america. More interaction between all of our peoples, at every stage, from academia, to students, to scientists and policymakers, Business People, is critical. Two largest economies depend on each other and are trying to reboot ties. Nearly a fifth of chinas exports go to the u. S. , while american exports to china jumped sixfold. Yet the two do as much bickering as trading, arguing over market access, Foreign Policy and industrial espionage. When it comes to the theft of commercial intellectual property, that is a huge problem. And it is one where china is clearly culpable. Many people here in china believe that the United States may like to may try to block the development of china. Thats why we see this kind of mistrust, deep seeded mistrust. Even though china is growing in strength, it relies on the u. S. For growth, jobs and investment. In chinese auto parts maker says threequarters of exports to america. Almost all of these car parts were made for A