hsbc are very proud to be part of it. we know the check and the money is really important to making some of these things happen. but something like the preservation of parks is too important to be just about the check. hsbc is a very committed to being a contributor in the communities with which we work and live. we're very proud that san francisco is one of the great cities which hsbc and our staff call home. today, as well as giving a check, we're also giving our time. many of my colleagues are in golden gate park, helping to maintain san francisco's largest area of oak woodland habitat. rather than delay your further, i am ready to get my hands dirty over there. congratulations on this magnificent play area. i know the boys and girls and pirates and kitty cats in the from here are keen to get on the them to play. [applause] ready? >> countdown. five, four, three, two, one -- yay! kids, come on in.

the headline hsbc purchasing manager's index for may fell to 49.4 from 50.3% in the previous month. signalling a slight deterioration in private sector business conditions. the figure was the first sub-50 reading since last december. output fell over the month due to weak demand and economic turmoil in europe. an hsbc economist said there's no need to panic as business is still humming, but china has to rev up soon if hong kong is to fend off incoming turbulence from the west for the rest of this year. the growth rate of casino revenues in macau plunged in may. total gambling revenue rose from over a year ago, but it's still down nearly 30 percentage points from early this year. analysts say the slowing chinese economy is driving customers to be more careful with their money. that wraps up our report from hong kong. back to you in tokyo. >> and that was jayme ng in hong kong. >>> two more business stories for you -- japanese beveragemaker suntory holdings is extending its grip on the world's biggest beer market with tsingtao brewery. the two firms will set up a joint company by the

well, hsbc service pmi came in different from official data. according to hsbc's private survey, china's nonmanufacture willing sector expanded at its fastest pace in month. but shanghai com poise tposite about 0.2% higher. property plays outperforming the broader market. tokyo also snapped four day losing streak. nikkei 225 tacked more than 1% as investors grabbed big picket bargains ahead of emergency talks between the g-7 and industrialized nations. elsewhere rose almost 1.5%, biggest gain for almost five months. they welcome the rba 25 basis point cut. tomorrow australia will release first quarter gdp expected to grow about 0.7% on a quarterly basis. kelly, back to you. >> we'll send over to louisa how to get a check of markets this morning. euro has turned negative. >> not seeing that in the equity markets in germany he moment. we're seeing meager gains added. yesterday on the close, we saw pretty even teacstevens split. what we're seeing this morning, cautious gains. xetra dax higher by a quarter of a percentage point. spanish market by 1

this morning three more banks, hsbc, lloyd's, and rbs are also implicated. >>> and, finally, what do you eat with a $168,000 bottle of wine? i'd like to find out. but a better question is how do you open snit not to worry. if you're lucky enough to land one of the ten bottles of cabernet, someone will come to your house to open it for you. >>> coming up, the rockies walk off in, extras, and a go-ahead homer in the ninth. >>> plus, a shocker overseas kicks one team out of the euro 2012 tournament. your early morning sports headlines are straight ahead. >>> and this amazing heat wave continues right through the weekend. kind of jealous of seattle. 70 and showers. your forecast is coming up. you're watching "early today." 2012 tournament. >>> good morning. if you're just waking up, this is "early today." and in sports last night for the first time ever, three college freshmen were the top picks in the nba draft. here's nbc's fred roggin with an early look at all your sports headlines. >>> good morning. unless you were living under a rock the past month you all right know that anthony av

we've in order had too much of a problem in terms of the hsbc pmi number. this time 54.8 you was the month of may. and like you mentioned, it has stood above that 50 mark for a little over three years now. the pmi survey has shown that the new export orders have continued to grow at a very strong pace in the month of may. however, that is not the key problem. the key problem is what's really happening with the gdp and the number that came out yesterday was a shocker at 5.3%. pretty much a pulled down by the manufacturing sector itself and the slippage over there. most of the street believe that given the kind of weakness that we've seen in growth, banks should cut rates in the june policy, however having inflation, one wonders whether that should happen. so far numbers indicate manufacturing is growing at a moderate base. >> people talk about a hard landing in china. 7% to 8% growth is not a hard anding. it's no landing at all. it's 7% to 8% growth. it's 12% less than a year ago, but, you know, that doesn't mean that the the bottom is falling out. >> let's

. >> worth noting the investigation is on going not just at barclays to the point you're making, hsbc is still in the headlights and jpmorgan another firm we keep talking about it. >> libor has been affected. the point is you should feel confident because they were trying to do it. >> the other question i have is not only does the manipulation or the attempted manipulation happening within the firm meaning their own traders talking to their own but if you start thinking about jpmorgan, but it's what's out there, if hsbc and jpmorgan and barclays and others are doing it are they talking to each other. that's when everything breaks down and everything changes. >> i talked to a buddy of mine in the rate market yesterday and he doubted that jpm would have the ability to muscle libor around. libor extremely large in terms of its scope as we noted yesterday and i was a little bit sarcastic about it. so to your point was there a bigger action being done because nobody thinks jpm could do this on their own or barclays. >> having said that we had bart chelten on and he talked about this. i was

, morgan stanley, citigroup, goldman sachs, and a bunch of european institutions like barclays and hsbc. essentially is what moody's has said is that their profiles of risk and not reflect the volatility and uncertainty of the capital markets. these are the kind of risky trading activities that these institutions are involved in. the sorts of things that cost the global financial crisis. >> whatever it reflects is not great news for the global economy, is it? >> the practical impact of these downgrades is that this is a huge blow to their prestige, of course. it might cost them more to raise money. what the banks pay to raise money depends on the credit rating. if they are rated very highly, meaning they are unlikely to default on their debt, they can raise money very cheaply. if the risks of them defaulting are rated more highly, then it is more expensive. it makes it harder for them to be involved in business and this could affect some of the people that the -- some of the people that are involved in the trading. this does not mean that they will go bust, but the ratings do not fully

this morning, three more banks, hsbc, lloyds and rbs were also implicated.ly, what might you eat with a $168,000 bottle of wine? better question. how would you open it? not to worry. if you are lucky enough to have the money to land one of the ten limited edition bottles of cabernet up for option, an australian winemaker will come to your home and open the hand-blown glass capsule for you all your problems are solved. >>> coming up, the rockies walk off with extras, a go-ahead homer in the ninth. a shocker overseas kicks one team out of the euro 2012 tournament. your first look at sports is straight ahead. you are watching first look on msnbc. it's time to live wider awake. only the beautyrest recharge sleep system combines the comfort of aircool memory foam layered on top of beautyrest pocketed coils to promote proper sleeping posture all night long. the revolutionary recharge sleep system... from beautyrest. it's you, fully charged. >>> welcome back to "first look." here is nbc's fred roggin. >>> unless you were living under a rock, you already know that a

and lopered bank of america, hsbc holdings and two others by one notch. investors have been bracing for the changes since february when analysts placed the banks under review. olympus are looking around for $600 million in new funds. olympus post aid net loss in the business year ending in march. former managers covered up investment losses over a number of years adding up to $1 billion. executives plan to implement streamlining measures such as consolidating factories to improve profitability. they will also boost their endoscope and units, thebusines. they hope to boost sales to $14 billion in four years and knelt profits of $1 billion. if the talks with sony fall, olympus may enter negotiations with fuji film holdings, have also showed interest. two long-time rivals are forging an alliance. panasonic and sony are close to collaborating on the next generation televisions. the new television sets feature organic electric luminescence or oel displace. oel tvs are thinner and show a sharper picture than conventional units. the two rms hope the tie-up will

they lowered bank of america, hsbc holdings and two others by one notch. investors have been bracing for the changes since february when analysts placed the banks under review. >>> the international monetary fund has called on eurozone members to swiftly establish a banking union among them. imf managing director christine legard made the announcement. such a system is needed to supervise the region's banks and provide liquid id and deposit guarantees when necessary. >> the imf believes that a determined and forceful move towards a complete european monetary union should be reaffirmed in order to restore faith in the system. >> la garde also said a banking union would help head off contagion of the euro debt crise chis is threatening the very currency union. the european commission is expected to propose the centralization of banking control at an eu summit scheduled for next week. >>> the japanese government is getting ready to cope with possible power shortages this summer. it has coming up with basic plans for saving electricity in the country. prime mi

. >> reporter: hsbc ends legal action. protesters have been camping out at headquarters since october. so about eight months they've been living in tents in the public passageway on the ground floor. hsbc said they asked the group to vacate voluntarily but since they never heard back they applied to the courts for an eviction order. this group of protesters are made up of mostly students and young people and at its peak totalled about 50. the encampment becomes the latest of the occupy contingent to face legal action. the occupation prevented the bank from conducting fire drills and fund-raisers and of course posed health and hygiene risks. the court will design own ershi of the area and if things go in hsbc's favor, a bailiff will be appointed to repossess the area. >> thanks. interesting that it is happening in hong kong. we haven't heard much about it in london, are ross, lately. what's on the agenda tomorrow, shareholders of troubled fukushima plant are gathering for the annual meeting. china holding its first organiza

almost 20 banks have been probed for possible involvement in reading interest rates, including lloyds, hsbc, and royal bank of scotland. their share prices fell sharply with our bs down 11%. why? >> not just here but in the u.s. adding all those potential costs, we could easily get to several billion dollars account for the u.k. banks. bamut a huge price being paid by barclays -- the massive legal cost it faces. these will not kill the banks, but banks look after our precious money, so they need to be trusted, which is why barclays needs to demonstrate that the flagrant flouting of the rules by bankers can never happen again. barclays has been disciplining the traders who tried to rig the market. not enough, says the leader of labor. >> i do want to seek criminal prosecution, and i do want to see those who have done the wrong thing, those who have committed what i think are atrocious acts, brought to justice. >> bad news for our banks. tomorrow, they will be chastised by the city regulator for imperiling small companies by selling them unsuitable products. >> as the banking sector is sent t

hsbc needs to be buying things and not just treasury securities. >> right. it's hard to just turn it around and start buying things simply because you want to help your neighbor. it may be the right thing to do but it's a very difficult thing to implement as a policy. so it will be interesting to see how this plays out. it may take a while. >> yeah, that's for sure. >> thanks for that. >>> more on the top stories today. the u.s. supreme court could rule on whether or not president obama's health care is constitutional. they are usually announced around 10:00 a.m. they think it could be today or thursday. the question is whether congress exceeded its authority requiring all americans to buy health insurance. it could strike down the entire me measure, keep all of it or part of it. the best performing sector up . 0.8%. jpmorgan meanwhile reportedly plans to improve risk management at its chief investment office which racked up more than $2 billion in trading losses. but "the wall street journal" says while the unit will avoid large bets on derivatives, it's st

also if you look at the hsbc, purchasing manager's index for june, it shows that there's going to beon in the manufacturing sector this month. and that's really crucial. this has gone on for more than half a year. >> hang on, gordon. let's bring in two of our sharp shooters, senior v.p. of investments at ubs and lee munson, chief investment officer at portfolio. i don't hear wall street talking about china business people defaulting on commodity contracts. i don't hear wall street guys talking about 3% electricity output sor stockpiles of coal that are growing daily because they can't sell the stuff then a china's economy is not growing. is this wall street trying to sugar coat it once again? >> absolutely. you know, the last time i was on your show a few weeks back, i mentioned that china was having a hard landing and everyone jumped down my throat and said 7%, 7.5% growth and go china. china has always been lying about the numbers and thank god you brought in a guest that has some reasons, looking at the utilities. when you have ships sitting there with coal sitting on them, you ha

. >> hsbc and standard charter very investable, strong balance sheets. well positioned globally.ted done side. lloyds, barclays, rbs, heavily exposed to the and you are row zone. >> it's time to still day on the sidelines. i don't think it's necessarily good news. it's a reflex of the bad news. >> roters reported there would be a conference call where they would officially ask for aid, but fitch says we still want results of the audits before we give any aid. it may be the start of the process rather than the end of one. and this morning they have just downgraded some spanish utilities as a result. chicago fed president charles evans says the u.s. economy is growing, but could benefit from more stimulus. he says he would like the fed to provide improved guidance outlining conditions that would prompt the central bank in the future to lower rates. >> i think we could with staefr whatever blows might be coming our way or not and that's why i think more accommodation would be good. sgle says the fed is prepared to act to reduce the impact of the debt crisis. he's not a voter on the

they can tell their users if you're going to a site that's not hsbc, that's not a legitimate site.there. you see verizon could have their store locations at la.verizon. >> why? is it for marketing person or are we really running out of website names? >> the idea really is there can be some more innovation throughout. there are critics that say this will be confusing. we have 1900 applications that were released today. brands think that consumers won't be confused and it will add a lot for them. >> what about this because this is what people are thinking. we look at these different names. you have dot porn, dot exposed, dot sex. that's opening the internet to more explicit content. >> right. i did speak with one applicant, who is the owner of dot triple x that is a domain that exists. we asked him why he applied to dot porn. he said he wants to keep it specific to top level domains. you don't mistype something and stumble accidentally. if you're going to a site that's dot porn, you're probably sure of where you're going. >> people are creative and all for the wrong reasons sometimes

barclays, rbs, hsbc and lloyds all found inappropriately sold interest blocks on loan.n a statement barclays said they cooperated fully throughout it's thematic review. lloyds said they assisted fully and agreed to work with an independent third-party. it's added it didn't sell interest rates products widely and didn't expect significant costs. rbs is also reportedly facing a separate fine of 150 million pounds for engaging in similar actions. this is according to the "times" newspaper. tai, when you add in the libor sort of scandal that erupted yesterday that's now dragging in rbs as well as barclays and another misselling scheme as well as well as other things that happened out of london, this is the place where jpmorgan was, rbs trading scandal, how damaging is to it london's image for banking, for global banking as a place where businesses may want to come and be placed? >> well, i think that there's two ways to look at it. of course the news on its surface seems a very negative image of the city as well as the banking industry. if i take a more slightly monthstive

and hsbc, barclays, moody's says these banks have significant exposure to volatility in the credit markets. banking analysts mike mayo says this move by moody's will not change your day-to-day banking, but it will affect business for the banks themselves to get loans and to lend and who will be willing to do business with them. he says this is likely to be the worst lending decade for banks since the great depression, that's something that you feel. the stocks for these banks are actually up a little bit this morning, because in short, the downgrades could have been worse and many say these ratings changes were already priced in. stocks have had a very rough spring. it was a rough day on wall street, the dow plunged 250 points almost 2%, and here's why. we have more concern about a slowdown in china, germany and the u.s., weak manufacturing data, the data if all of these countries a little bit weak yesterday, plus goldman sachs put out a report saying investors should sell s&p 500 stocks. meaning sell them and let the prices drop and buy them later at a cheaper price. the s&p 500 dropped 3

both hsbc and the official index weakened. of course when you can't find a lot of places around the world that are growing, no wonder we're seeing some of the acts here behind me. i've given you the bigboard because it really warrants it this morning if you want to know what's happening in the tone we're handing off to you. we'll start with some of the flight to safety bids. so the ten year german bund 1.6% and that's actually off the lowest levels that we reach today. the ten year gilt in the uk, three year lows for manufacturing data. 300 year lows for yields here. 1.513%. ten year in the u.s., 1.54% at this point. who is weaker? of course we're talking about spain at a level of 6.6%. italy back over 6%. two year shats negative this morning. a quick final look at currencies. euro-dollar continuing to sink. becky, i heard you you you asking about those levels. we're still at about a two year low here. we'll have to keep going down towards that 1 about.20 mark before we start making lows that are mores historic than that. but

however, hsbc in a note today said don't let a relief rally today fool you.ontinue, of course, as we all know there remain critical elements that need to be dealt with on an economic basis around the globe most notably in the eu where reports today say they may be working on a master plan. we've heard that before. this week some of the things traders will be watching, bernanke's speak on thursday before the joint economic committee. te sigss on rates from the ecb and bank of england. keep in mind uk markets are closed today, of course, for the diamond jubilee holiday. these are three important things they're watching. also a spanish bond auction later on thursday. quick check of the s&p 500. of course, on friday in the selloff it broke below that critical 200 day moving average. the support traders are watching for now, 1275. trading above that right now at 1282 and change. also watching banks right now, deutsche bank popping in the premarket. this in tandem with some of the other european banks like the dutch bank ing also moving higher. the u.s. bank index,