11/02/2014

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:00:00. > 3:59:59without a companion, will be formally welcomed to the White House

:00:00. > :00:00.on Tuesday. Those are the latest headlines from

:00:00. > :00:00.BBC News. Now for the latest financial news

:00:00. > :00:20.with Sally Bundock and World Business Report.

:00:21. > :00:25.Barclays is expected to defy calls for pay restraint and reveal its

:00:26. > :00:29.bankers are getting bigger bonuses. Asia's biggest air show kicks off in

:00:30. > :00:39.Singapore. With the local market set to triple over the next two decades,

:00:40. > :00:47.we look at what's on offer. Welcome to World Business Report.

:00:48. > :00:51.I'm Sally Bundock. We will bring you up-to-date with the market action in

:00:52. > :00:54.Asia. It's been a torrid few days for

:00:55. > :00:57.Barclays and today it may attract some more difficult headlines when

:00:58. > :01:01.it releases its full earnings report in a few hours. The UK bank took the

:01:02. > :01:04.unusual step of releasing its headline profit figures a day early,

:01:05. > :01:08.after the numbers appeared in the financial press. So the bank's

:01:09. > :01:14.pre-tax profits for 2013 rose to ?2.9 billion. In dollars, that's

:01:15. > :01:20.?4.76 billion. But what will attract most interest today is probably that

:01:21. > :01:23.old chestnut, bonuses. Barclays is expected to reveal it is paying more

:01:24. > :01:27.in bonuses to its investment bankers than the ?2.14 billion dollars it

:01:28. > :01:32.paid in 2012. So, has nothing changed in the city or is it back to

:01:33. > :01:42.bonuses as usual? With me now is Christopher Wheeler, Banking Analyst

:01:43. > :01:49.at Mediobanca. Give us your take on what we know so far about Barclays'

:01:50. > :01:57.performance last year. Yesterday they announced an adjusted figure of

:01:58. > :02:04.?5.2 billion which compared to ?7 billion last year. They told us that

:02:05. > :02:10.would be 1.2 billion. If you take that out of the interest, the

:02:11. > :02:18.results are probably down five or 6%. That means the investment bank

:02:19. > :02:23.will be down about 10%. At this time of year it is the bonus season and

:02:24. > :02:27.it is always in the press this difficulty between what bankers are

:02:28. > :02:32.earning in the city and what politicians and the general public

:02:33. > :02:39.thing. We'll Barclays pay it bankers more this year or last year? My

:02:40. > :02:46.calculations which I think in line with the market suggests they will

:02:47. > :02:49.be down 9%. Bonuses are based on revenues which suggest they will

:02:50. > :02:58.fall this year. The amount of that income paid out may go out slightly,

:02:59. > :03:03.I have heard talk of 41%. I know Ashley Jenkins is targeting 35%. The

:03:04. > :03:08.size of the port is unlikely to go up given it has been a tough year

:03:09. > :03:12.one fixed income markets and it has been affected by equities and other

:03:13. > :03:20.markets. What about the argument some banks are making in the UK and

:03:21. > :03:24.other cities in Europe that they are losing talent to bigger investment

:03:25. > :03:30.banks in Wall Street cause they are restrained in terms of bonuses? The

:03:31. > :03:34.European banks are also having to turn somersaults over the EU borders

:03:35. > :03:40.constraints and working out how to pay their people appropriately but

:03:41. > :03:45.undoubtedly the course of those that Ashley Jenkins is seen to be more

:03:46. > :03:49.careful with the bonus pay-outs and undoubtedly the US banks who do not

:03:50. > :03:55.have those constraints, there is not the noise on Wall Street there has

:03:56. > :04:01.been in the UK. He has turned down his own bonus. This has become a

:04:02. > :04:08.common situation with UK bank managers, JP Morgan managed to take

:04:09. > :04:14.a 20 million bonus. It shows the completely different attitude in the

:04:15. > :04:19.UK to the United States. As full as they get the full earnings report

:04:20. > :04:23.from Barclays, we will update you. The Singapore air show has opened

:04:24. > :04:26.today and as usual there is a lot of interest in the ongoing battle

:04:27. > :04:30.between Airbus and Boeing for market dominance. The fleet of aircraft in

:04:31. > :04:34.Asia will triple in size over the next two decades, meaning there will

:04:35. > :04:47.be demand for close to 13,000 more planes, so it is a key market. Our

:04:48. > :04:54.reporter is at the show. Tell us more about how it is going. The

:04:55. > :05:02.Singapore air show has opened two huge optimism. We have had news that

:05:03. > :05:09.one company has signed a deal with Boeing worth $1 billion. Airbus is

:05:10. > :05:14.also expected to announce a deal within the next few hours. It has

:05:15. > :05:19.its latest plane on show for the first time here in Singapore. Boeing

:05:20. > :05:28.appears to be unfazed by the competition. To have the right

:05:29. > :05:33.products on the market at the right time, I think we have been able to

:05:34. > :05:41.do that. We launched an aircraft a couple of years ago, last year we

:05:42. > :05:55.launched to back new programmes as well as a 777 programme. If you look

:05:56. > :06:01.at our product line we are extraordinarily well positioned. You

:06:02. > :06:10.are still facing problems most recently with Air India. Do you know

:06:11. > :06:14.what caused us problems? Yes. I think when we talk about that

:06:15. > :06:18.situation it was well understood the issue and we worked on it and they

:06:19. > :06:21.are plane is back in service. In terms of the battery that is

:06:22. > :06:24.something we worked on last year and we came up with a solution that

:06:25. > :06:29.addresses all the possible causes for the issues we had and that

:06:30. > :06:44.situation is improving. We have delivered about 70 team liners. We

:06:45. > :06:49.are putting assets on the ground and investing in the product to get even

:06:50. > :06:57.better. Talking about competition in the market, you are facing

:06:58. > :07:06.competition from Airbus and China and Japan emerging as serious

:07:07. > :07:11.competitors. What is your strategy? We have new competition from the

:07:12. > :07:18.Chinese, Japanese, Brazilians, what we have to do in that situation is

:07:19. > :07:23.learn from them, they bring in new ideas and new technologies, they

:07:24. > :07:27.raise the bar for all of us, we have to invest in new technologies,

:07:28. > :07:31.ensure we have the right strategy and find ways to reduce the cost of

:07:32. > :07:35.building our flights. No matter who the competition is, we will be the

:07:36. > :07:44.winner if we do those things. How do you think China will shake-up -- and

:07:45. > :07:48.Japan will shake-up the industry? There is no question there is room

:07:49. > :07:55.for us and Airbus to grow and maybe one or two mac new competitors, the

:07:56. > :08:01.question is, who will they be and who will be successful? Our

:08:02. > :08:04.customers will decide. It is not just Boeing that is hugely

:08:05. > :08:10.optimistic about the prospects for growing in Asia. There is huge

:08:11. > :08:14.demand for new planes from lower cost carriers. Many chief executives

:08:15. > :08:24.are optimistic about how that will see their future. Two among the few

:08:25. > :08:27.that we have been talking to today who say that their prospects are

:08:28. > :08:37.bright display tops of a slowdown in China and the impact on the region.

:08:38. > :08:42.We will hear more as the show progresses.

:08:43. > :08:46.The Federal Reserve chair will give her first testimony before the house

:08:47. > :08:50.financial services committee today and will face questions on the state

:08:51. > :08:53.of the labour market and the future pace of drawing back on stimulus.

:08:54. > :08:58.While the tone is likely to be upbeat on the economy she is thought

:08:59. > :09:04.to emphasise rates are set to remain near zero foreign extended period.

:09:05. > :09:13.General Motors has announced plans to pay its boss $44 million this

:09:14. > :09:17.year, a 60 -- 14 $.4 million this year. It comes after criticism of

:09:18. > :09:41.underpaying hard for her gender. The markets will be affected by what

:09:42. > :10:11.Janet Yellen has to say today. We will review the papers in a few

:10:12. > :10:14.minutes. The Church of England's drilling

:10:15. > :10:16.assembly will attempt to speed up powers