great results with the uk. in terms of markets for the future, well, we're going to be looking at digging in deeper to markets where we already have a substantial position. so the united states, the middle east, far eastern austral asia but there are also markets where we have been ab sent for quite a while and we would like to find the opportunity to reestablish ourselves. south america comes to mind. as an obvious one. >> and you guys are also -- have a rather large piece of security business also that gets added to that doesn't it? >> we do. last year we posted -- security exports of 2.6 billion pounds. we are extremely active in fiber technologies and fiber security opportunities. and we expect security in future years to occupy an increasing proportion of our defense and security exports. >> all right, but out there when you get out there it's a very crowded market. you have americans and extramaid januaries, brazilians, you name it out there in the market. why british? why should your customers go british

a bit more data out here in the uk in the form of uk june services pmi numbers coming in at 51.3. now the forecast was for 52.8. so it's worse than expected. it's also worse than last month as well when we had the may services pmi of 53.3. so a decline of 2 points to 51.3 this time around. joining us for some analysis is chris williams, chief econost at market which compiles the pmi data. so why worse than expected this time around? >> well, i think part of it might be because there was additional bank holidays around the queen's jubilee. that suppressed activity in a lot of areas. it did boost some in terms of hotels. a lot of companies were reporting that there is weak demand evident. the outlook for the next 12 months has worsened and coming down to the lows last year when there was a lot of gloom about the eurozone, what else. so things are turning negative still. we've come down very sharply from strong growth at the start of the year according to the pmis. all sectors when you lump them together, down to 51.1. it's getting close to stalling. perhaps consistent with gdp falli

uk customer provisions for uk customers $1.3 billion. provisions for law enforcement matches the u.s. around .7 billion. u.s. provisions for law enforcement and uk customer addressed provisions of 1.3. 2 billion in provisions already. >> huge number. that's a huge number. >> and global banking markets before tax of the u.s. investment bank 5 billion, up 5% compared to first half of 2000 which might be better than we might have thought. >> share reaction moving slightly higher not a huge reaction but up 0.82%. hsbc shares are moving higher before that report. those numbers out even despite showing pretty big provisions for u.s. and uk law enforcement action or prospects thereof. >> let's get some reaction. welcome to you both. paul, first of all, your reaction to the numbers, the first half, the uk pre-tax profit over 12 billion but then 2 billion in provisions. >> hsbc is wonderfully well provisioned particularly on the u.s. side of its business, that provision over the next few years on run the out of their hfc business around 2%. there

follows weak figure on the uk economy. we heard james knightly call them into question but nevertheless it appears britain is in recession. >>> welcome back to the program. well, we have another acronym to toss at you in case you weren't sick enough of them. try ggric on for size, the great global interest rate convergence. if you want to blame someone for that, mohamed el erian of pimco is your man. in a new op-ed on cnbc.com, he talks about the global rate convergence but says negative, near zero percent interest rate isn't enough to spur growth. something self-evident from the market action we've seen in the last couple of sessions. do you agree, another acronym, a sick of them like i am? e-mail us or tweet us @cnbcwex or get in touch with us individually. >>> just a note out of bank, sold a loan portfolio value near 100 million euro. trying to shed capital. it's going to to active capital. >>> s.a.we talked with mark hurd talked about the company's acquisition plans. >> we don't ever talk about acquisition, so we typic

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speaking earlier, the uk chancellor, mr. osborne said that diamond's decision was the right down. >> other banks are under investigation. that's well-known. i think barclays was in a particular position because the management hasn't changed in barclays. the same people were in charge. this is the right decision for the bank and also important the right decision for the economy. now, let's get on and create that new cultural responsibility in banking. that is what we need to see because we need strong responsible banks lending to the british economy in order to create the jobs and growth that we want to see. >> yes, a lot of commentary on this issue this morning. of course, more from the fsa's adair turner who called the libor scandal just now a huge blow to the reputation of banks and says banks must be purged of their "culture of cynical entitlement." a pretty easy in in case, louisa, i think for politicians and regulators to use barclays, use libor scandal as a way to play on the public angst about things. >> yeah. in dani

uk inflation data out in just a second. we'll be back. >>> these are the headlines from around the globe. bank of england governor presents the financial stability to british lawmakers in half an hour. will he go off script and answer questions about libor fixes. >> ben bern will off more clues about the economy against the backdrop of slowing u.s. job growth and weak u.s. manufacturing. >> alcatel lucent will miss guidelines. >> google's loss is yahoo!'s gain. in a surprise move the company raises its toppest rival, tapping marissa mayer to be its new ceo. >>> june cpi weaker than expected down .4% on the month and the annual rate running at 2.4, expected to be unchanged at 2.8. tilts lowest sin it's the lowest since 2009. you're seeing reaction on sterling. weaker against the dollar. the rpi down 2%. that's weaker than the forecast 3%. rpi is what we try pay attention to. the rpix which was the old favored measure which i miss down running at an annual rate of 2.8%. that was forecast at 3.1%. so all the key measures of in

>> the polarization effect is evident in the uk. the london market is demonstrating very different dynamics from the rest of the uk. reflecting in part its position as a global financial center, also presently its attractions as a safe haven. and the fact that it's outside the euro is an additional attraction. london is special in our london context. london accounted for over 20% of all the commercial real estate investment purchases in the whole of the european markets. the other thing we're seeing in london that we don't see in other european markets is it's still a magnet for global. we have global investors from brazil to china focusing on london. >> what's your overview of real estate progress in the states as an investment class right now? >> well, i'm so glad you asked me that question. as i was listening to your guest, i wanted to ask him as well, in the united states what we're seeing right now is, we're seeing a small little bounce in residential real estate. and, again, we're seeing it on the low end, the investment side

here in the uk, 1.57% is the yield on the uk ten-year government debt. let's move to markets across asia. we do see a mixed day of traud. 0.5% higher for shanghai composite. declines the margin across india, declines to -- small declines for kospi and nikkei. let's get the latest from tracey chang. >>> asian markets showed mixed picture as chinese economy weighs on sentiment. they reverse earlier losses to end in positive territory. a warning from china southern airlines added to concerns about tailspining corporate earnings. shanghai composite as turnover remained thin ahead of the release this friday. nikkei slipped to a two-week low as strong yen hurt exporters. boj starting a meeting and they expect them to stand pat after that review last week. south korea's kospi stangd unremarkably lower last week. australian shares on flat. lastly, ibtd yeah sensex showing weakness, ofl 0.6% as well. >>> amazon may be getting into the smartphone market. they are working with asian suppliers to test a device which makes us ask, would you be interested? does the ma

it's actually work and we'll continue to learn from the experience that you have there in the uk. i yield back, mr. chairman. >> thank you. and the chair now recognizes mr. neil from massachusetts. >> thank you, mr. chairman and mr. secretary, to follow up with what mr. dogett had to say, one of the reasons that data suggests that the welfare reform act of '96 here worked was in some measure because we added a number of mitigating issue to the overall package including job training child care and not to miss the point, that people were able to keep their health insurance and that had a profound impact on the flexibility that mr. doggett noted. i'm not going to trespass into domestic politics in the uk, but i think just having observed 3,000 miles away, the prime minister during his election cycle, he actually suggested a much more radical transformation of the health care system in the uk that he was actually able to deliver on, and i understand that because that's just the reality of what happens. but i think as a follow-up to what mr. doggett pointed out, i think what the prime

talked about and some of the disputes that i've mentioned, we have had to go to countries like the uk and france and ask them, frankly, to carry our water for us. and it seems like almost an assault on our sovereignty that we have to go do that because we don't have a seat at the table. for me to try to convince the navy to dispatch a destroyer to fight over a garden-hose size cable going in to another country seems to be a bit of overkill. >> thank you very much. >> senator corker. >> thank you, mr. chairman. thanks for having this hearing and your diligence in having many of these and thank you as witnesses for being here. i know most of you well, and i appreciate you being here, and i will say that it's a little bit of an out of body experience to have especially you, mr. gerard, in here talking about something administration is doing to help the oil industry. i think it's not a pejorative statement to say that they've done everything they can to hurt the oil industry. the keystone pipeline that you talked about is a great example of this administration, basically trying to keep so

>> it's a race between uk and u.s. the way things are. i don't think it will be germany. things will have to get a loss worse in the eurozone, which some people are saying they will do. august will be a real challenge. we have a cash flow event in greece. september we have the challenges from the courts in germany. so i suppose if things get worse in the eurozone then bund yields go 1% or below and maybe they will be the first. i think in a more benign backdrop that i'm seeing it's more likely to be tuck or u.s. that see 1% first. >> steven, the debt market, people talk about the guns of august. do we have to fear this august? >> every august that i can remember for the last four or five years has bean busy one. back in 2008 it all started and we've had just about every august focused on some kind of crisis from the financial sector or sovereigns. we've had money markets, we've had refinancing problems in some sovereigns sponsorship it seems to happen every year so why not this august. it seems that there's a great deal. the big difference is we're prepared for it and kno

and romney shambles into a viral twitter hashtag in the uk. romney is stirring up the twitter verse for another reason, because of tweets sent out by beth myers, the woman in charge of his running mate's church. meyer tweeted a list of names believed to be vp picks including condoleezza rice and ohio senator rob portman. up to this point, the romney camp has been quiet about possible running mates. the campaign has only admitted to vetting florida senator marco rubio. the man accused of killing 12 people in aurora last week was seeing a psychiatrist. defense attorneys are requesting that the contents of the package be handed over to them. what's still in question is the time frame surrounding the records. legal medical experts say it's still unclear of whether doctors would uphold an assertion of doctor-client privilege in this case. >>> president obama and his foreign policy have been compared. the ralph meade foundation, which owns the billboard, says it wants to draw attention to military men and women dying overseas. the military spokesman

china, eurozone, uk, pmi is not great but on the whole better than the expectations. how does the ism manufacturing play in today? >> it doesn't. it plays very important. we have to pay attention to it. we want to see some kind of a rounding bottom in some of these numbers especially with europe we'll see some improvement quickly because of the euro currency coming off against the dollar, look for the german numbers, look for the northern european numbers to come out a lot better. china is the big question mark. let's see if they can get back on track. remember 7.5% growth we might look at as wonderful. for them it's a slowdown. we want to see them get back on track. lot of that depends on how quickly orders from the eurozone start to flow back into the chinese books. >> jack borugianceo of bull and bear partners out of chicago. >> that's it for today's worldwide exchange. coming up next "squawk box." >> don't go anywhere and we'll be right back here tomorrow morning. >>> good morning. the buck stops with barclays chairman, or at least the pound does, marcus agius res

or uk including maryland own john hopkins university and it's no wonder nearly 9,000 uk students and more than 40,000 american students cross it is bond each year for their studies. they develop into international friendships, research collaborations and business partnerships, science inonovatos and business men and women, athletes and artists and mufshgians shape the world and work foeg for the mutual benefit for both our countries. today may be the

gilt slipping too after uk manufacturing data came in stronger than expected. seeing that spike coming through. at the moment the data hit about two minutes or so ago. the uk may industrial output figures up for the month of may. unexpectedly strong. seems to be something to do with the extra working day due to the postponed public holiday. we have a jubilee weekend. we postponed it to a week later than usual. also downward revision to previous industrial output in manufacturing numbers too. so the uk is in recession but in may manufacturing output rose by 1.2% after that .8% drop for the month of april. >>> we will now check in with silvia wadhwa, germany's senior judges will decide where they can govern esm. several officials are seeking a temporary inyungs to prevent the legislation from passing. silvia wadhwa joins us from germany. what can we expect? >> reporter: well, essentially there's no decision going to be made today. today there's a hearing. the president of the german constitutional court and chairman of the second senate of the constitutional cour

first stop the uk in london. mr. romney witnessed the opening of the summer olympic games. romney oversaw the winter games in 2002 in salt lake city, utah as president and ceo of the salt lake organizing committee. so, he was asked on wednesday whether the olympics in london looked quote unquote ready to him. >> there are a few things that were discontinue certificating the stories about the private security firm not having enough people, the supposed strike of the immigration and customs officials that obviously is not something which is encouraging. >> he also met with top british officials including uk prime minister david cameron at 10 downing street, talking middle east peace, among other topics. but the subject of the olympics seemed to prickal the prime minister, who made this statement in a press conference prior to meeting with mr. romney. >> we are holding an olympic games in one of the busiest, most active bustling cities anywhere in the world. and of course it is easier if you hold the olympic games in the middle of nowhere. >> mr. romney at the th cameron londo

the uk has, what, 63 million people. for the first time in mitt romney's life, he's managed to do something bad in the etiquette book. he's ticked off 63 million white people. that's not good for them to do, especially when visiting them a and dealing with leadership. this is not a good way of dealing with his overseas trip. i'm terrified what he's going to do when he hits israel and more terrified of when he hits poland. >> be careful of the whaling wall. mitt romney said he met with mi6, the international arm of the british secret service. romney was supposed to keep quiet about this. ilyse, does that sound like a presidential move just outing yourself? >> you know, what i think we've learned about mitt romney today is at least he's an equal opportunity offender, right? he can clearly offend the guy in the nascar park wearing their, you know, walmart hoods, but he can also offend leaders of state and secret security. look, michael, i think this is a real problem for the guy. he's got three things going for him, right?

is it still a great national institution in the uk? >> yes. a big change is taking place and there are big reforms in place to make sure the people get what they need. overall, we spend less money on health care than you do over here. >> with the concept of reform, not just -- but not with repeal so that we have access to health insurance for our workers here and thank you for your testimony. >> i thank the gentleman. the chairman of the oversight subcommittee. >> thank you, chairman davis. welcome. it's great to see you here today and we appreciate the tremendous work you all are doing to reform the complex systems in the uk. to really align the incentives and to make sure that work actually pays and that those receiving benefits will understand that crossing that threshold to get to work is where they need to go and of course, how do you keep them in employment. i want to focus on a slightly different part of what you were doing with reforms and i think it is called the work program and the system of delivering employment services to these i

and the uk, you'd never guess that by reading romney's book, "no apology." "england is just a small island," he wrote. "its roads and houses are small, with few exceptions it doesn't make things that the rest of the world wants to buy. and if it hadn't been separated from the continent by water, it almost certainly would have been lost to hitler's ambitions." wow. joining me now is evan mcmorris-santoro. reporter for talking points memo. evan, his book is called "no apology," yet he spent much of today apologizing, then apologizing, then apologizing, so how bad is it? >> well, that depends on who you ask. i think that one thing is clear, though, mitt romney in england was able to find gaffes where no one thought gaffes were possible. this trip out to england, you know, it's supposed to be a chance for romney to show off his ability, his past of running the olympics, which was a great part of his resume if you ask him, and a great part of his biography if you ask him and his supporters, and also going to england, you know, it's a big american ally, a strong a

the uk government spending is 50% of gdp. >> is that true? >> in the uk? >> the in uk. >> about 49%. and in china it's much lower. so actually in some ways -- this is perception. of the government involvement in the economy in what they can do. >> a lot of government involvement particularly since the crisis began. developing economies that are free market. >> yeah. they can't intervene in the right way. just reminder about our trade links series, every week we look at how the financial crisis is affecting trade. that's every monday at 10:50 cet. >>> indian lawmakers have voted for the country's next president. the announcement is due on sunday but pundits have already picked their favorite. we have more live from new delhi. who will it be? >> reporter: it's going to be very significant for india and the government. clearly, despite all the months of scandal and bad news, the fact is that the prime minister will emerge stronger after this election because it's just going to be congress candidate who is expected to win with a large majority and that will al

june output ppi in the uk down minus 4%, up 3.2% on the year. that monthly rate the lowest since november 2008. fairly good news for the bank of england, as they said inflation was coming down, so they'll be happy to see that. output, annual ppi, the lowest since october 2009. january output ppi's forecast minus 0.3% and the end rate 2.4%. input producer prices running at minus 2.3% on the yen, the lowest since september 2009. it was forecast, though, to be a little less, even weaker than that minus 2.6%. uk june crude oil input price down 9% on the month, minus 10.4% on the year. so, the fall in oil prices, kelly, having a major impact on the drop in inflation rates. so that's, you know, it's an ill win. the weak global economies have reduced the oil prices -- >> it takes a position. a recession or significantly weaker growth to get energy costs back in line these days. unfortunately, central banks can't drill their own oil or manufacture it. >> no. and sterling/dollar on the back of that hitting the session high 1.3537. and euro/sterling, we'r

uk debt. i do want to bring your attention to the german market as well where we, of course, are seeing the safe haven play. and in the two-year, negative yield. check this out. 0.040%. so that's the short-term german debt. and it has switched around. and this is a record level we're looking at right now. the three-year barely positive on the yield. the five-year, looking at extremely low yields as well. 0.297%. and the ten-year, 1.226%. so really giving you a flavor of how the perception of debt in spain and italy, for instance, compares to that in the safe haven german trade. so on to the euro which is languishing below 122 on these mounting concerns about the eurozone crisis. we are seeing money flowing out of the euro and into other safe haven currencies. for instance, 79.27 is where we stand on dollar/yen. dollar/swiss franc, 0.98. on to the commodity markets, then. we've had all sorts of factors playing into the oil markets this week. we had the threat of norwegian oil stoppages because

that's in the uk. that's not greece. >> anthony gibbs from advantage capital markets, thank you for your thoughts this morning. >>> australia's bench mash has been attracting attention. bbsw reference rate, less potential for manipulation because rates are based on where the paper is trading in the market instead of the estimates submitted by bank. paper trades instead of one group may be difficult to replicate elsewhere. >>> you sit there as an investor. what does this neen for where we make profits and what we do with our money? >> i'm actually not sure it makes a whole deal of difference. it shows that banks are being extremely regulated and that's, you know, a trend not going to go away for a long time. from our perspective, we're still under weight financials pretty much across the globe, particularly in the western markets. but in terms of the actual outcome of these things it's probably not going to make a huge difference, to be honest. >> stick around. a little more on this as well. >>> south k

i think increased speculation about the uk base rate. very positive yields in australia, poland, for example. so this will be an enduring theme over the summer, how the world deals with negative interest rates. >> paul, just curious whether we're seeing a longer-term shift happening here. there are reports that reserve managers are looking to commodity currencies and getting away from the euro altogether. in your experience, is that maybe one reason why we've seen these pairs with the strength with the australia and the new zealand dollar even against the euro? >> we've seen sort of flows away. we have a reserve management study that we published at the end of the year. a majority of reserve managers in that survey were looking at nontraditional currencies. and those seem to be some of the smaller european currencies. but importantly, as you mentioned, the aussie. other central banks have been quite vocal about their desire to move away from the traditional reserve currencies to smaller nontraditional. and i think that that must be ongoi

as i told you just moments ago the uk border patrol has decided to strike. they will officially go on strike one day before the olympic games begin. on the 26th. as you ow, there's been all sorts of security issues and controversy surrounding the olympics in thrown. leapt head there now and talk to our reporter jim bolden. how might this affect things? >> reporter: well what's interesting the unions have been, a number of unions have been using the olympic games as leverage to try to get new deals from the government and this is an austerity time and so the government has been cutting back on some of the staff and so the unions have been building up and building up on this one. on thursday as you say the uk border agency amongst other parts of the public will strike for the day. union has had this before. they will move other staff to cover it. the union says they will then do work to rule from the day of the opening ceremonies right through august 20th. basically they are using the olympics to say that their staff will not work overtime. they will only work

it is the uk afterall and could be a rainy opening ceremony, but wales is not far away from london and equally sunny there with blue clouds and perfect conditions there. and some of the experts have been warning against health and breathing problems for some, and hopefully not affecting the soccer players. >> well, let's hope it means for a great, fast, successful olympics if the weather would cooperate and even if it is hot, a lot of the athletes have trained for that. meantime, talk about one athlete before things could even get under way, an olympian representing greece is in so much trouble, she is not h on the team, is she? >> no, normally, you hear about the failed doping tests that rule out the athletes before the main events get under way, but this is a slightly different story. we are talking about vula known to her friends and she is a 23-year-old triple jumper who tweeted that so many africans in greece at least west nile mosquitos will eat homemade food. i don't get the tweet, myself, but it is deemed racist and she has apologized profusely, and the greek team sponsor said

they will be in various uk airports. they will not do any security screening, we understand, but they'll act as liaisons between tsa, the tsa in the u.s., here in the u.s., especially for american flights in and out of the uk, and tsa agents and security personnel in the united kingdom. this is just extra staff, an extra layer to help out. you know, on monday, 25% more passengers than usual flew through heathrow which is already one of the world's busiest airports. >> have to tell you about this story. three buses carrying olympic athletes trying to get to the olympic village, right? so they get lost, right? the bus driver gets lost. he got tweets from athletes. this from karen, a heurdler, athletes are sleepy, hungry and need to pee. can we get to the olympic village, please? lost on the road for four hours. not a good first impression, london. they go on to speculate that, what, you can finish the -- you could actually run or walk that distance faster than it took them on that bus? >> they didn't set any olympic record

at 8:20 uk time. you have seen fast flowing traffic for the toll booth here. police identified a vehicle, a coach operated by a company called megabus, which was on the hard shoulder. the report was that a passenger on board was being an incident. the actual bus was pulled over with its hazard lights on. police and emergency services arrived at the scene. now, emergency service vehicles and contamination units. we understand that between 40 and 50 passengers have been questioned by officers, some of them armed this morning, to see what has happened. we are waiting for an update from british police. this is a contain the incident at the moment, albeit surrounded with emergency services. we do believe this incident is over. we will get clarification on that soon. >> there's bound to be speculation that this might be something to do with terrorism. everybody is on their guard. the olympics are coming along. >> yes. some people have said, will we see more of these emergency reaction procedures ahead of the olympic games? we have no confirmation from the police tha

it's not just the uk. i have lived in a number of different countries and it is frightening to everybody how stunning of a con con -- contradiction of the military security and the ease to access firearms. however this man got firearms it's not difficult to do in this country. in other countries people do get access to firearms, we had the horrible shootings in norway last year but the bar is set much higher because firearms are not readily available to regular citizens. and that's not a popular thing to say in the united states because of the second amendment. freedom is [ inaudible ] up in the freedom to buy firearms and own them. but it is a major security problem. >> well, the freedom to drive is car is there too, but that doesn't mean you should let blind people do it. >> absolutely. andrew gumbel thank you so much for joining us this morning. you really brought a lot of incite. >> you are very welcome. thank you. >> all right. this is the "stephanie miller show." i'm chris lavoie. that is jim ward. a

you want to talk about perfect timing for the uk. british prime minister david cameron today talking about the economic boost. the olympics and the paralympics will give the uk more than $20 billion over the next four years. >> we shouldn't see them. this is really vital. we shouldn't see them as some sort of expensive luxury in tough times because in my view it's because times are tough that we have got to get everything we can out of these games to support jobs and to support growth in the economy. >> that accent makes it sound regal and official. public funding for games more than double the amount anticipated when london was awarded these games in 2005. >>> rescuers off australia's gold coast freed a humpback whale tangled in shark nets. the rescue crews from the department of boating and fisheries in sea world spent two hours to cut the animal free. the whales swimming nearby made it difficult. eventually, they did succeed. the whale then swam away with the rest of the herd. >> mission accomplished! spraying the water. we will b

two out of three in the uk do not manage that. >> she has her held back on track now that she is more active. a century lifestyle over many years led her to develop type two diabetes. >> the thing is that i have some fantastic medical advice from my doctor and minors, who basically said you have to put together a program to work with this disease, which will be with you for the rest of your life. >> with the olympics just days away and athletes are arriving all the time, most of the world will soon be spending hours in front of the tv watching elite sports. the researchers say we cannot all be champions, but we can extend our lives if we choose to be more active. >> still to come on gmt -- we will take you back to where the modern olympic games began 160 years ago as part of our olympic coast guard series. >> police in the uk have charged the air to the multibillion-dollar empire with preventing the lawful and decent burial of his wife's body. she was found dead in their west london home by police last week. the couple had a long history of drug abuse. >> they were one of britain's ri

to feel royal you need pearl necklaces by select traders uk. >> these are great. the retail is $220. this is the largest online pearl company in the uk. we are offering three different ones. each is approximately 26 inches. this company's most popular style. the deal is $55. that's 75% off. >> that's great. >> they're classic pearls. >> quality as well. you will look very much like the queen if you wear it. over here, let's look at the great handbags by the cambridge satchel company. it's the glitter satchel, available in three colors. i guess we have two here. >> there are three. i don't know if you can tell. there's a shimmer. the retail is $198. they are so popular. they are available in antique gold, black sparkle and graphite gray. the retail is $198. these are rarely discounted. the deal is $85, 56% off. >> over here modeling out. looks cute. >> perfect size. >> very nice. we like it. a lot of people will get excited about this. you can have your tea. the royal dalton nine-piece set in three different patterns. >> the retail is $143. this company was founded

uk officials expect thunderstorms, even perhaps some hail. will the year's olympians with members of the royal family as cheer leelders. the queen said she thinks the games are wonderful. yesterday, the queen toured olympic park and meeting with athletes. in all, the royals visiting more than 30 sporting events. joining me now, royal correspondent, robert jobson. good morning to you, robert. >> good morning, alex. >> what's been the role of the royals? they have been working but have they been having some fun there? any crazy, spontaneous moments you can share? >> reporter: apart of the queen jumping out of the helicopter? >> that was huge! >> reporter: there's a few spontaneous moments,

in terms of uk business, it's without question. our fashion business is holding up exceptionally well. i think as pete said our men's business is in double digit comp sales against last year so we're very pleased with that and we have got a position in the market that we have established ourselves as a fashion leader. we do have new merchandise virtually every week of the year and i think people today want to buy now, wear now who are interested in that merchandise. we have got that as our audience. >> pete, not just topshop and topman, i believe you have entered in to other strategic partnerships recently. for example, hope look, peak. what other partnerships might you be working on? can you tell us? >> well, it's never been part of the plan to set out to try to land some of these partnerships specifically. it's all happened must have r much more organically in response to our customers so for us, you know, it was a very logical step and a very complimentary step for us to work with topshop, topman because philip's right. they del

and the gilt uk ten year debt is 1.55. let's move on the asian market. looking across the region for a quick snapshot and we have gains of the chinese markets of just about half a percent 2.2% low for the south korean market where we had a rate cut. so obviously having an impact. let's get out to tracey chang who is in singapore and can update us. >> good morning. asian markets just can't catch a break. widely down again today. china's shares turned higher. but hong kong shares tumbled due to weakness in china. and japan's nikkei posted a drop after seeing only minor tweaks to the boj's easing strategy. the kospi closed 2.2% down despite a rate cut. foreigners extended their selling spree for a fourth straight day. australia, the market didn't survive the selloff, sliding about .7% after an uptick in employme employment. sensex is weaker down by 1.3%. becky, back to you. >> tracey, thanks very much. >> let's check in on what's going on over here. social media stocks now firmly out of favor. what do you think? if you want to join the conversation here on

compare that to here in the uk where the ten year gilt is 1.56%. that's the picture across the bond market, giving you a quick snapshot too of what's happening to the european debt market. also what's happening in asia where so far today we've seen declines across the region as well. loads of red on the equity map for the asian markets. we had data in china. the composite down by 2.4%. 1.2% for the south korean markets. nikkei down by 1.4%. significant loss coming through here. let's go to tracey chang. >> hi, again. certainly not a very pretty picture. asian markets already rattled by friday's weak u.s. jobs report ended in red compound that asian's top companies can escape the impact of a global slow down. china's stock index hit lower. there's fears that china's domestic demand could be softening. investors are staying on the sidelines ahead of more key data out of china. the hang sang is off by more than 1%. tokyo stocks closed down 1.4% as well falling below the psychologically important 9,000 level, weak japanese machinery order triggered fea

agency they established in 1987, uk sports that divert lottery money into elite sports. it's orwellian in its outlook, ruthlessly targets these sports. >> if you don't perform you lose your funding. >> absolutely. >> crucial about identifying success or failure. >> yeah. they even targeted these athletes they refer to as system blockers, athletes who are past their prime on the down side of their career who are capable of competing at world level but not likely to medal. they targeted their funding at young, upcoming athletes. >> post-london, does the system stay in place? will they keep trying to up the medals going into rio and beyond? >> that's the big question. the big fall off you see in olympic teams is four years after they host games. china, for instance, not expected to do as well as it did in beijing where it obviously won the gold medal count, more gold medals than the u.s. unlikely to do sign london. >> if you shave the mustache, you're there. >> i'm halfway. >> now, just shave the rest off and you got it. >> yeah. >> thanks very much for coming by. >>> the d

. >>> former american sprinter tommy smith is in london for the uk premiere of a uk documentary "salute." he gave a black power salute after he broke a record in the men's 200-meter sprint back in 1968. he is still considered one of the most powerful images in modern history and he was the inspiration for the documentary. >>> well it's been seven years since actor robert blake was acquitted of his wife's 2001 murderer. he is still furious about being arrested as you can see from his interview with cnn's piers morgan. take a look. >> do you know why i was arrested? >> tell me. >> before you start asking questions you should do some [ bleep ]ing research. >> the children of blaine's wife have failed a civil suit against him and he was ordered to pay them $30 million in damages and a wrongful death lawsuit. >>> legendary rock band the rolling stones have still got it. they can rock the house. that band celebrating their half century anniversary today. they're going to be doing a live show with hit muse spin world tours. -- music and world tours. celebrating together at somerset house with

and uk are two nations divided by a common language. but you in certain parts of london that division runs a little bit deeper. you may hear people speaking english, but you won't have a clue what they're actually saying. confused? that's the whole point. just like in america, accents vary all across britain. there is the queen's english. >> freedom and responsibility. >> reporter: new castle. and from liverpool. >> finds the back of the net. >> reporter: if you're heading to the london olympics, you'll find yourself in cockney country. what is cockney? austin powers explains it. cockney is the accent of the east end. audrey hepburn's character tried to lose hers in my fair lady. >> they run in spain stays manly in the plain. >> reporter: and dick van dyke tried one in mary poppins. but in real life, it is the pearly kings and queens of the east end that help keep this accent alive. ♪ >> reporter: they are proper cockney. hard to understand? that's just the beginning. >> around the jolly, into the battle cruiser through the pig's ear.