This mornings headliner citigroup. Well have analysts looking to earn 1. 17 on revenue of 19. 7 billion. For now im going to send it over to our good friend, michelle. Michelle . In global news china is the big story today. The economy there slowing further in the latest quarter. Second quarter gdp grew by 7. 5 down from 7. 7 in the previous quarter. But in line with the average and a list forecast. Meantime chinas implied oil demand rebounded in june to the highest level in four months. Among the reasons, refineries returned for maintenance. Analysts say they still expect growth in oil used to be roughly flat. Eu Officials Say talks on resolving a trade dispute over solar panels reached an impasse. An august 6th deadline is looming for an increase in tariffs. If the deal isnt reached, chinas Solar Energy Industry could have products face average eu tariff for near. An investigation into the cause of that friday fire on an ethiopian airliner. It was a 787. Unbelievable. Theres no evidence the battery caused the fire. Also the journal reports the early probe suggests the fire appears to have occurred in the overhead area in the back of the plane. And we need to figure this out. Then i thought they said it was where i dont know, for some reason i thought it might be a cigarette or something. I dont know. I know i interviewed jeff two weeks ago ought in aspen. What do you think about the 787 . He said they always have teething problems. But if its nowhere near the bat theory people in the air teething problems . You cant have teething problems in airplanes. Its just not acceptable. Unacceptable. I still think i worry about fire. I got a ticket to wherever youre making like six jumps to different you remember the air tran there was some it could have been cargo, there was some cargo that was combustible . What was it called . But you dont hear any other reports of 777s. Theres fires. The theres constant smoke in the cabins. Constant . Its not that unusual that there may be some friction. And we just dont report it . Well, it doesnt get the play, but until you know what if you find out that it was totally something that was in the plane that had nothing to do with the construction of the 787 . Here you are already worried about if it was nowhere near the battery and didnt give you any Additional Information there was another flight in the midair which they decide d o divert to go back. They didnt like the way things were going. Right. You know what im really glad with . Im glad the San Francisco plane was not a 787 for your sake. Youd have it canceled. Youd have the entire Program Canceled if the San Francisco flight had been ten less. You know my worry about that. Fuselage made out of composite. The new ones wont be cracks. It doesnt bend. Its a different situation. So if meaning . If he is on the one crash that owe can curse in ten years, 50,000 takeoffs and landings every day, then he might not survive that one. Meaning, we are very grateful so many people were able to get out of that alive uninjured. And there are some views in the analyst and Engineering Community that would have been tougher it. In a 787. But composite. Yeah, okay. Generally. Andrew, if i would assume, and its very rare, plane crashes correct. If you are in a plane crash of a big jetliner, youre probably going to die. I would not hope to survive most of those. So if one occurs every eight years or something, god forbid, and its been better it depends on how the plane crashes. There are two general ways a plane can crash. It can come in and land and be a very rough, awful landing. Thats not a crash. Or does it just fall out of the sky . Were not used to those, the twa one. Boeing says the composite is as strong as the aluminum. You want to walk away from a major airliner . Well, look, there have been a number of instances, whether its chesley sullenberger. That was a miracle. It was a miracle but does a composite plane break up . By the way, there are some views the composite is even stronger. With the Sully Sullenberger situation, how do you balance your environmentalism with your fear of flying . Should we just kill all the birds . Just kill them all. Right . That is what happened. Yeah, yeah. Lets get to things this is something you and i might know something about. More than airplanes. At t is buying leap wireless for 15 a share in cash or about 1. 2 billion, an 88 premium to the close. Its the latest example of some of the u. S. Carriers scrambling to acquire valuable wireless spectrums. This was a small deal, not a tmobile deal. Leap almost went into that tmobile deal at one point when they were trying to negotiate all of this. But this im starting to think of these real estate deals. Thats what this is. Youre buying certain real estate on the spectrum. Theres just not enough left. Its beach front property. This may be the worst neighborhood in town. You can call it whatever you want. You just want to own any of the property. The government has the beach front property and so do the tv stations, the networks. They have beach front property in the sky. Is this a feelgood thing . I dont know. Yes. A small deal acquiring taylor capital. Thats why he doesnt know about it. Its not even a billion dollar deal. Why are we talking about it . The stock and the offer represents a premium of 26 to taylor capital. Back when the deals were really going on i dont wake up for less than 10 billion. You said something about a transaction years and years ago. He did wake up last week and came in. I know, i watched. And someone tweet ed about a puppet. Two puppets. I dont know. Remember that first caricature they did of you . Yeah. This puppet was about on the same level. I looked like i dont know. I dont know who i looked like. Maybe fred willard. Hes about 90 now. I kind of look like him after hes had a few actually. The f itt reports apple has g on a hiring for the iwatch. I saw one. Probably does a lot of stuff. The timing of the hiring suggests the wearable device will not be ready for launch until the latter part of next year. You should wait on getting a watch. He is going to get a watch. You might as well i dont wear a watch since i got a phone. This could disappoint some investo investors. Well, there was an expectation tim cook said a number of new products through 2014. This could still come. He could make this right. Well see. This will be the next step up in apple hype, do you think . Is it big enough . Could it be big enough to be a game changer like a tablet or an iphone . Some people think it could be. It could be huge. An ugly looking thing. Its a first generation. That image thats online not real . No, its somebody who made up what they think an apple device should look like. By the way, i did play with ios 7 the new apple operating system. No, but ill take your word for it. Its the new operating system on your iphone. Pretty cool. Is it on my iphone . Not yet. It will be. Okay. Not yet. I use add phone last week that didnt even have a mute button in cuba. Im surprised they have phones. Yeah. A million people. A better life. A simpler life. Socialism thats one place you can point that it actually worked. That is the end result. Who needs air conditioning . Who needs to communicate with family . Your Carbon Footprint is much small smaller. Much less complicated. I dont like having a lot of choices about what to eat. Not a whole lot of obesitobe. They dont have diabetes issues like in other countries. See what comes from nasty capitalism . People dont know how to handle prosperity. Give them very little is better. Should we talk about capitalism and prosperity across the ocean. Is there capitalism and prosperity across the ocean . A version of it. A version. A version of capitalism. Are where the elites do forget where they got where they are and they have a permanent leisure class that doesnt think you need capitalism. Lets see what Ross Westgate has to say. We are going to go across the pond and say hi to our good friend ross this morning. Ross. Hey, roscoe. Morning, andrew. Good to see you. I think youll find here in the uk were the most open economy, one of the most open economies on the globe. Were happy for anybody to come and buy our companies at a fair price. Well talk about invensys in a few moments time. Right now we are on the session lows here in europe. You can see advancers only outpaced decliners on the Dow Jones Stoxx 600 a couple hours ago. That was nearly 81. So we have gone down to the bottom of the graph as we got closer to the u. S. Open. We woke up this morning sort of cheered by the chinese gdp data. A lot of fears it wouldnt come in that michelle talked about to that 7 mark. It has meant the ftse 100 is doing well. Back to the low point the ftse 100 like u. S. Markets having its best or the second best week of the year up 2. 7 right now up a third. We have been up threequarters this morning. 0. 4 for the cac 40. The ftse mib is fairly flat. Break down the sectors, the benefit of the chinese data. Resources one of the best performing sectors this morning. Right now technology and media. Resources have just dropped out. This was the best about an hour ago. Now the red sector in. Autos and Financial Services are down. So things have certainly turned around and i talked about m a. Invensys talk iing about a bid from schneider electric. Invensys up at 510. 50. Ge is now eyeing the rule over whether it wants to buy the uk engineer talking around the schneider bid is around 5 billion equivalent. Talking about a potential bid of 5. 3 billion from ge. So the speculation in the uk this British Engineering company could become a bid battle. There is a date of august the 8th for schneider to decide what theyre going to do with that bid. Keep your eyes on that. The u. S. Boys could get involved. Thats where we stand now. Back to you. Okay. I always ask you this. It has to be within a week or two, muirfield, right . This week. Phil won the Scottish Open up at castle stewart. Great links course. Hes looking good. Nice. Wow. And once again, no idea who to pick. It could be anybody, right . Depends on the weather. Depend on the wind. Remember that storm came in on a saturday. I think tiger shot 81 or whatever. It depends on your timing. Theres a bit of luck involved. Faldo is playing, too. He was in here. Hes a smart ass, faldo. He is. He really is. Big guy. It did you know that . Hes like 8 feet tall. Hes huge. Hes like paul bunyan. Really . Never knew that watching him play. I thought he was your size, ross. Hes not. Hes huge. Hes a monster. And he was kind of a bully with me. Really . He was mean. Well, it takes one to yeah, he was mean to me. Talked about my arms, you know, said the only thing under 21 because i wanted to join his tour where you have to be under 21. The only thing under 21 on you are your biceps. I dont get it. The measurements . Oh, okay. Im not very manly. I dont know, he was just mean. The way you boys insult each other. I could have come back with a really funny thing and he never would have come back again but i didnt say anything back about things that are 21 years old maybe in his life. Whoa. Google. I know. Congress returns to work today among the big stories this week, in the Senate Democrats are threatening to change the rules to speed up the nominating process. Thats when Nuclear Option, the filibuster type thing that henry reid swore he would protect. And in the House Republicans want to delay parts of obama care and hit the reset button on the debate on immigration reform. John harwood joining us from d. C. This morning. Whats front and center . Congress is probably reporter first of all, the british open, im picking tom watson. This is his year. He almost won it a couple years ago. I know he did, but that was it, dont you think, john . Its too hard. The nerves go. Well, you know that. Dont you get the shakes now . Reporter it was such a tragedy. He was right there. I remember the shot the he hit on 18 that got a bad kick to the back of the fringe, remember that . Reporter yep. And then the next shot about a five on a scale of one to ten and then that putt was not even close. Reporter he couldnt have struck that ball any better. The one that he hit in. I know, i know. And for all of us that are over 35, that was painful, right, over 35 years of age, because we, you know, we were pulling for him, right . Reporter exactly. I think 46 is the oldest to win a major . Reporter nicklaus. Hale was 46 in one of his u. S. Opens. What is the most trayvon people in congress, are he they is that going to occupy any of their time this week . Thats such a huge story everywhere else, john. Reporter there will be a lot of talk about it and the administration has got this Justice Department look into whether there were federal civil rights violations. I dont think anybody expects a federal civil rights case out of it, but theyre going to go through the process of reviewing as they had done before the state charges were brought. The president put out a statement yesterday, and i think everybody has been gratified there hasnt been the sort of violence some people predicted in the wake of the verdict. I think this is going to be a washington talking story which, of course, most washington stories are. What is i cant believe bernanke is talking again. I think this week he goes back to, yeah, were tapering soon. Every week he just to get us to keep us on our toes. Reporter if ben bernanke says anything about trayvon, you can knock me over with a feather. That will probably not happen. Theres such a vacuum for other stuff actually getting done there. Washington is just like almost like a soap opera now. Theres nothing really happening legislation wise. What about harry reid . Reporter thats a real soap opera. They have all the senators meeting tonight bipartisan session to try to avert the terrible damage that would be done to the senate that the republ republicans are warning against just like democrats warned against the terrible damage to the senate in the mid2000s when bush was president and democrats were frustrating his nominees and republicans considered the Nuclear Option. Now democrats are doing the same thing. This ises a reflection of the way our two parties contest each other so fiercely at every turn and, you know, the filibuster has become a routine weapon. I still suspect that they will avert the Nuclear Option because there is lingering attachment to the old traditions of the senate which dont carry as much weight as they once did. Remember, youve got two nominees to the National Labor relations board. Youve got richard cordray, all of those are the legality of those are disputed. Republicans are saying well give you the two cabinet members who are legally appointed who weve been holding up but were not going to give you the ones we believe were illegal because of a Circuit Court ruling. I dont know how theyre going to work that out. Im still betting that theyll work it out. Senators will talk tonight. Then tomorrow theyre going to be cloture votes which normally require 60 votes. Thats the filibuster issue. And well see how republicans deal with it and whether or not they can come out with a deal. All right. Thats about it, i guess. Hold on. I have one question for him. Go ahead. Theres a big coming out, john. Supposed to be the hottest book in all of d. C. This week. This town. Reporter ive been reading it. Whats in it . Theres no index. People are up in arms. You have to actually read it. You cant do the washington read apparently with this book. Also the wall street read. Reporter the Washington Post created a bootleg index of the thing. No, look, this is an interesting situation. My colleague at the New York Times has written he a piece that the subtitle was initially suckup city and he was talking about the permanent class in washington that is out to succeed financially, that its revolving door. That is a truth about washington and theres a lot of people who he skewers in that book that deserve to be skewered. Thats a different washington than the one that cant get anything done because the two parties hate each other. There are parallel realities about people who live here and sort of the permanent lobbying class, but you also have these parties which are not the accommodating one another, which are not back scratching. They are, in fact, stopping everything the other side wants to do. I should mention we have mark on the show on wednesday and the book already number ten on amazon and its not even out. Its preordered. Its the hottest thing. I thought it was just hot in washington but clearly hot across the country. Thanks, john. Coming up chinas economy slowing further. The full story from beijing and what it means for the Global Markets next. First, though, the end of an era. Part of Communications History shut down for good. Indias last telegram went out late yesterday. I think i might have seen some of those in cuba. Marks the end of a service that provided indians with a fast and reliable mode of indication. The state owned Telecom Company behind the service forced to wind down the telegraph service. India has 182 telegraph offices. Smart phones and other technology has hurt the Telecom Industry over the last decade. A real statement of the obvious. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Welcome back to squawk box. Making headlines this morning, wells fargo check out cnbc. Com today. Driven by reader feedback weve come up with a new clean look. We hope it makes cnbc. 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