0809 china%20factor
This picture taken on July 12, 2012 shows a Chinese worker monitoring a thread-making machine at a factory in Jinjiang, southeast China's Fujian province. - 

Jeremy Hobson: We'll start in China, where two reports this morning signal bad news ahead for the world's second largest economy. Factory output grew at the slowest pace in three years last month, and retail sales fell.

Adolfo Laurenti is deputy chief economist with Mesirow Financial. He's with us live from Chicago.

Follow Jeremy Hobson at @jeremyhobson