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This is Business Live from BBC News with Victoria Fritz and Sally
Barclays' profits plunge at the end of last year and it's forced
Live from London, that's our top story on Tuesday the 1st of March.
The new boss of Barclays says a more focused,
trustworthy and streamlined bank is the way forward.
You can hear from Jes Staley in a few moments, who tells us
why its business in Africa must be scaled down.
Volkswagen's boss tells us a deal with US authorities
over its emissions cheating scandal could take longer and cost
And we'll tell you all you need to know about financial markets
The European trading day has just kicked off.
Would you rent your precious pad to tourists make some extra cash?
This may not resemble your home, certainly not mine, but holidaying
in someone else's home is a growing trend.
We speak to the boss of a firm who's making money
And we want to know what you think on the programme.
Was this an accident waiting to happen?
It's been revealed Google's driverless car crashed into a bus
in California - nobody was hurt and the authorities are investigating.
As ever, the show is packed. So let's get started. We begin with
banking giant, Barclays. It just revealed that 2015 was a really
tough year. 80% full and its adjusted pre-tax profits during that
12 months, to ?5.4 billion. It was battered
by falling investment banking fees and
mis-selling scandals. In a moment, we'll hear
from our Economics Editor, who has been speaking
to the bank's relatively but first a look
at its troubled times. Since the financial hurricane
of 2008, Barclays has been hit Four different bosses in five years,
and clashes with regulators. The share price tells the story,
down 40% since last summer. A big part of this is the shrinking
investment bank business, which makes much less money
and recently announced 1,200 jobs Meanwhile, Barclays is paying
for past misdemeanours, like its rivals RBS,
Santander and Lloyds, with hefty provisions for
mis-selling products to consumers. Barclays will focus on its key
markets, the US and UK, which bring in two-thirds
of investment banking fees, and will sell its stake
in Barclays Africa Group. That will cut its costly exposure
to the volatile currency the rand, but the downside is losing
12 million customers across 12 Our Economics Editor Kamal Ahmed
is in the City of London. Barclays has been in
Africa over 100 years. The new boss Jes Staley has been
in the job for less than three months, so a big decision
to leave the continent. Yes, it is quite a U-turn, you are
absolutely right, for Barclays. If you remember, the previous Chief
Executive Antony Jenkins made Africa one of the key pillars of Barclays
boss macro strategy and said the continent, the emerging economies
across Africa were very important for the business. Bob Diamond,
Antony Jenkins' predecessor was also very keen on Africa but Jes Staley
has said for regulatory reasons, the bank will now look at selling down
its stake in Berkeley 's Africa. I've just interviewed him at the top
of the building there. He told me that it was a very difficult
decision. The reality is, the new regulatory
environment means we carry 100% of the liabilities of owning Berkeley
's Africa. We only own, however, 62% of Berkeley 's Africa. The rest is
owned in the public market in Johannesburg. We have 100% of the
liabilities and 62% of the earnings. It means it truncates the possible
U-turn -- returns for Barclays shareholders of investing in Africa.
It is a very difficult decision. You go to places like Uganda and Kenya
and the brand of Barclays is as strong there as it is in the UK. I'm
sure this is a very difficult decision, not just for Jes Staley,
the Chief Executive but for the board as well. As you say, 100 years
of history of Barclays in Africa. South Africa, great controversy
during the apartheid in Iraq, Barclays was facing a boycott them.
In his interview with me, Jes Staley spoke about trust and spoke about
the need to regain the notion of honest advice from banks and the
public would only trust the banks when they believed that is what it
was doing. He also spoke about the European Union. Of course, Britain
is facing a referendum on whether to leave or remain in the European
Union in June. He said that after a board meeting and discussions with
his chairman, John McFarlane, he thought it was better for his
customers in the UK and for his corporate business clients that
Britain remained inside the European Union. Finally, I asked him if he
would repeat the pledge John McFarlane, the chairman made, that
Barclays share price would double in the next three years. He would not
be that robust but he said that with the changes, the simplification,
investors could see that despite profits being down and despite the
dividend being cut, that this bank was a better business and he hoped
the markets would respond positively. Speaking of which, we
have just checked out the share price and at the moment, it is down
roughly 7-8%. I wonder what investors make of Jes Staley? What
is your sense of the man? This is the first interview we have done
with him. It is. His background comedy was very senior at JP Morgan
but missed out on the big job there when Jamie Dimon and made it clear
he was not going anywhere fast. He is the chief executive of JP Morgan.
He is seen as a very solid operator, somewhere between the tee previous
Chief Executive 's. Bob Diamond was big, Flash, American, a man so
American he had a baseball bat in his office. Antony Jenkins was the
Englishman, the last Chief Executive of Barclays, more scholarly, known
as Saint Anthony. I think Jes Staley is somewhere in between. Investors
will be looking at him making the bank simpler and then they may look
at the share price but with the dividend being cut, that is why the
share price has taken such a big hit this morning. It is a long, hard
journey for Jes Staley. Thank you for joining us. Who would have
thought, the Goldilocks of Barclays, the man in the middle, Jes Staley?
Trading and mining giant Glencore says its adjusted net income fell
a whopping 69% to $1.34 billion last year.
That's down from $4.28 billion in 2014.
The slump is blamed on weaker commodity prices.
Glencore had to take exceptional charges of $5.8 billion,
mainly due to impairments, restructuring costs and net losses
One of Google's self driving cars crashed into a bus in California
last month. Thankfully, there were no injuries but it's not the first
time on a Google's famed self driving cars has been involved in a
crash. But it may be the first time it has actually caused one.
A judge in the United States has ruled that Apple cannot be forced
to give the FBI access to a locked iPhone, in a case that echoes
an ongoing legal battle in California.
The judge in Brooklyn denied a motion by the US
Justice Department to get Apple to unlock a phone in a drug case.
The FBI also wants Apple to unlock the iPhone of Syed Rizwan Farook,
who killed 14 people in San Bernardino,
We were going to look at the tablet but always with technology, this is
what happens, just a blank screen. I apologise. We were going to talk a
bit more about Barclays and big restructuring costs, there, lots of
provisions for PPI, for example. But let's just move on and talk about
China! So many stories coming out there today, not least the fact that
it's reported the government is planning to lay off up to 6 million
workers over the next two or three years. Yesterday, we were talking
about significant job losses in the coal and steel industry.
This is not great news. It seems to be the new normal when it comes to
China. Absolutely right, Victoria, it seems to be going from bad to
worse in the world's second largest economy. We all know China has been
going from strength to strength in the last few decades but now growth
is slowing down. Remember, China Clarke to the lowest growth seen in
a quarter of a century recently. Now it appears that has translated into
the worst possible scenario for the government there, job losses, as you
were saying, in state companies, nonetheless. Reports saying that the
cuts will come in the next two or three years and although that means
the losses will be staggered, it raises the question, where are all
these people going to find new jobs are to mark a big concern in terms
of economic and social stability in China. -- to find new jobs?
We had data at China which we will discuss in a moment but just to show
you how the day in Asia. It does not reflect the full day because it was
a seesaw session in Japan will stop in Europe, the big winner on the
London stock exchange today is the London stock exchange. Its shares
are up over 7%, one of the big winners, speculation that
Intercontinental exchange is looking to make an offer for the London
stock exchange, and let's not forget that the LSE is in talks to merge
with the Deutsche horse. Glencore shares down 2.4% and we will discuss
that shortly. But now, let's go to New York.
Has America's manufacturing sector turned a corner? That is the
question on the mind of investors this Tuesday. The sector has been
flashing warning signs for a while, coming under pressure from falling
oil prices and the strong dollar. When the Institute for Supply
management releases its national Manufacturing index this Tuesday,
investors will be looking for signs of any improvement. Most economists
are forecasting a reading of 48.5 in February. Anything below 50 is
considered a contraction. Meanwhile, car sales have been a bright US
economy. Sales for February are expected to hit around 17.6 million.
But there are fears that falling oil prices will drag down the local
economies of states that depend on the energy industry in turn -- and
in turn, the fear is that make impact demand for trucks and luxury
cars. On the earnings front, dollar tree reports its fourth-quarter
earnings, it is the country's biggest dollar store chain, still
appealing to thrifty shoppers. Joining us is Bronwyn Curtis
from Society of Business Economists. Good morning. Let's start with some
of the data we had overnight from Asia coming out over China
manufacturing, falling for the seventh straight session. It does
not look good yet we saw the markets rise. Yes, interestingly, because it
was a fall in manufacturing, seven months in a row. It is back to the
levels of January 2009 on the manufacturing index and the services
purchasing managers index also fell. But of course, China has started to
pump money back into the markets. They did that yesterday. It was
pretty big. I think the expectation is they will continue to do that. We
talked about people being laid off. Of course, that is in the
manufacturing sector, particularly in things like the commodities, the
steel sector and someone. But I think the service sector, they are
tried to push more into services. And January is a funny month in
China with the lunar New Year celebrations which is basically a
week when the economy is pretty much shot of people are not at work.
Looking at the corporate news, shares all over the place, Barclays
hit hard but the London stock exchange, it would seem is great
interest at the moment. It has got another suitor! Deutsche Bourse came
out and they were interested in a tie-up or a takeover. It depends who
you talk to. And now we have someone else, the ICA, coming in and saying
they might be interested as well. Mergers and acquisitions have been a
big story in the last two or three years. I think that is going to
continue. People think they can take costs out and that will push profits
up. Every company looking for is an profitable opportunity right now.
That is buoying up the markets but I have to say, we have got some
economic data coming out in Europe and the US that I don't think is
going to be that good and payrolls at the end of the week in America is
the big number that people will be watching in the markets. Lots going
on. Thank you for joining us. We will return later for more stories.
home instead of a hotel - we ask to the boss of one home swap
Still to come: Home from home - as more of us opt for someone else's
home instead of a hotel - we ask to the boss of one home swap
It does seem high risk, but we've got the answers for you.
You're with Business Live from BBC News.
More on glen core. The slump is being blamed on weaker commodity
prices. We talk about did a lot on the programme. The shares in the
company are listed in London and Joe Lynam joins us from the business
roomment you have been taking a look at the numbers. What's the stand out
issue for you with glen core? The stand out issue for me, the fact
they posted the huge losses today. And one year ago, there were profits
of $4 billion, there is a $12 billion gap between the years.
That's reflected in the share price. Glen core the start of the year
around year and it has been downwards until September when
people feared for the future of the company, but the boss basically
said, "I'm going to focus on getting rid of the assets that I don't need.
The mines that I don't need." The share price was on the up. So people
like the disposal process. They are getting rid of one mine in new
Caledonia alone worth ?4 billion because it is over valued. The
commodities that they own in that mine aren't bringing in the revenue
that they are hoping for. So the direction in travel in terms of the
share price over the last three months has been positive, but it has
been an awful 2015 for glen core. This is a Swiss based commodities
trading business which bout the London listed -- bought the London
listed extrat ta. They bought at the height of the boom when China was
building without an endless supply of skyscrapers. Since then things
have gone into reverse and commodities have fallen and the turn
around affected mining companies, platinum, zinc, copper, you name the
commodity, it has been down and the question I suppose for glen core
shareholders, is it over? Is the worst over? Is it up from here? Can
the share price continue to inch upwards as it has done over the last
two-and-a-half months? All right, thank you very much. Joe Lynam
there. More on glen core on the Business Live page. As Joe mentioned
there, the share prices have been on quite a journey. I remember you
could buy a glen core share for ?5 and not many months ago, it was down
to 70 pence a share and now up over ?1.
The boss of bank clays who has been in the job since December, tells us
he will turn things around after a difficult few years. We will keep an
eye on how he does that. More on the website. Kamal has been blogging
about that story as well. Check it out.
You've heard the expression home from home - the company we're
about to talk to is making money from the trend of holidaying
While it can dramatically cut your holiday bill,
it comes with a host of other problems -
personal safety or guests that trash your home to name a few.
Airbnb has millions of global customers doing this but our next
guest uses a membership club as her business model.
Debbie Wosswow's company has been offering a home from home service.
Global choice, of course, will be very important. It has got more than
80,000 properties and in fact over 100,000 properties now in over well
about 160 countries. I believe Jude Law, Cameron Diaz
have got something to do with your business? They were my inspiration.
I am an entrepreneur. I have run different businessesment this one
came about of the back of a particularly challenging and
expensive holiday in a hotel with very small children and for those of
you who have taken that kind of holiday, it is cramped, it's dark,
you're trying to watch TV with the sound off, you are eating a lot of
room service and on the flight on the way home, I watched the movie,
The Holiday. It is a cheesy rom-com and Kate Winslet swaps home from
Cameron Diaz. I thought does that exist? My home in London has been
sat empty while I have been on holiday and I have been in confined
quarters. What I wanted to do was stay in a home. What I wanted to do
was to swap my life with someone else's life and that was the idea
behind Love Home Swap and because I am the restless entrepreneur who
won't leave things alone, I got home and started to plot how I might
build a business that would transform holidays for families, for
empty nesters, for second homeowners, for people who want to
make more from the asset they have invested all their money in which is
their home. Plain how it works. I'm thinking of all the things that I
would have to think about if I was considering this idea. Not least
like you, I've got three little kids and before I go on holiday, it is
complete mayhem in the house and the house looks like a bomb has gone off
as I walk out the door. So I can't believe anybody would actually want
to come in and stay. So, I suppose two-ways to answer the question. The
first is, how do you sign up your home? The second is how do you get
your home ready? So in terms of sign up, think online dating for homes,
that's the business model. With three children, I suspect you're not
spending your time on Tinder, however, you understand the concept,
you put together your listing and photography is super important, but
equally as important is saying, this is my neighbourhood. So the big
driver behind Home swapping particularly for families is life
swapping, it is knowing that there is a shorthand to having a great
holiday because when you arrive, the kids playground, where to buy food,
where to go for cappuccino and what to do. Sow put that together and
that's free. And you put together your listing on the site. The point
of engagement comes when you want to send a message or receive a message.
So that's how you sign up. In terms of how do you get your home ready, I
did a half term home swap the week before last with my two little
children. We went London to the Cotswolds. It does mean that there
is that run around before you leave, tidying up and clearing out
bathrooms, that's my main bit of advice. You don't want to arrive at
someone's home and find a mouldy bar of soap in the shower room. Make
space for that person, but they recognise that they are staying in a
home and you don't have to turn your home into a hotel, but you do have
to have the conversation with home swappers about sheets and towels to
your point on what happens with the home swap, we have never had
anything go wrong. In a big sense because of the swap. Because the
arrangement. You are going to someone's home, someone is coming to
your home, but do make sure that you know how you're going to find the
house and how you're going to leave the home. Anything that you're
worried about, in my experience, I have an owner's closet. Don't leave
out the family silver and your engagement ring if you're going to
panic about that. Lock it away, but you don't need to put your home in
storage, just make your home ready for guests. We have run out of time
which is such a shame because there are so many other issues we wanted
to talk about. We're going to have to just... No problem. Sign up for
Love Homes. You can experience it. You're going to have to come back. I
look forward to it. Volkswagen's boss has warned that
a deal with US authorities over its emissions scandal
could take longer and cost Speaking at the Geneva Motor Show,
Matthias Mueller told the BBC's Theo Leggett that VW
was still in "constructive dialogue" with regulators and hoped the firm
would be "judged fairly". TRANSLATION: I will not take part in
the speculation that's been in the press. I think we are better off
waiting for the result of the investigations. We are all
impatient. I am as well, however, I think we should wait for a couple of
days more. Jones Day and Volkswagen said they will publish a report in
early April and then we will know the whole story. I think we should
be careful and not pre-empt the results of that. Are you confident
that a scandal like this could not happen again?
TRANSLATION: We have drawn our conclusions and learned from them.
We've reorganised our internal procedures and optimised them so
that to the best of our knowledge, such a thing should never happen
again. You can never be 100% sure, but we are confident.
That was the Chief Executive of Volkswagen speaking at the Geneva
Motor Show. Briton win is back. It is a story we talk a lot when we
regard China and Beijing, but a problem of fog in Abu Dhabi. This is
in the Gulf News newspaper is leading to what, Briton win? Well,
accidents. Which is no surprise. It is no surprise, but everyone rushing
to work at the same time are, you know, and it is foggy and they can't
see, they don't want to be late for work and so on, they are getting
more and more accidents. The story is about someone seeking flexible
work hours on foggy days. So instead of everyone starting at the same
time, I mean, it is a nice idea, but you know, it is still fog. It is
still hard to see so I think, but I think remember earlier in the
programme, you talked about the car, the driverless Google car that you
know, didn't have, you know hadn't had an accident. No accidents if
they all were driverless cars and everyone could get to work on time.
The fog would make no difference at all. Good thinking Briton win. Thank
you for coming in. That's all from us. Goodbye, see you soon.
Hello there. Well, it is milder out there today, but wetter for many of
us as well. The cold air will be back before too soon. Now the rain