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without a companion, will be formally welcomed to the White House | :00:00. | 3:59:59 | |
on Tuesday. Those are the latest headlines from | :00:00. | :00:00. | |
BBC News. Now for the latest financial news | :00:00. | :00:00. | |
with Sally Bundock and World Business Report. | :00:00. | :00:20. | |
Barclays is expected to defy calls for pay restraint and reveal its | :00:21. | :00:25. | |
bankers are getting bigger bonuses. Asia's biggest air show kicks off in | :00:26. | :00:29. | |
Singapore. With the local market set to triple over the next two decades, | :00:30. | :00:39. | |
we look at what's on offer. Welcome to World Business Report. | :00:40. | :00:47. | |
I'm Sally Bundock. We will bring you up-to-date with the market action in | :00:48. | :00:51. | |
Asia. It's been a torrid few days for | :00:52. | :00:54. | |
Barclays and today it may attract some more difficult headlines when | :00:55. | :00:57. | |
it releases its full earnings report in a few hours. The UK bank took the | :00:58. | :01:01. | |
unusual step of releasing its headline profit figures a day early, | :01:02. | :01:04. | |
after the numbers appeared in the financial press. So the bank's | :01:05. | :01:08. | |
pre-tax profits for 2013 rose to ?2.9 billion. In dollars, that's | :01:09. | :01:14. | |
?4.76 billion. But what will attract most interest today is probably that | :01:15. | :01:20. | |
old chestnut, bonuses. Barclays is expected to reveal it is paying more | :01:21. | :01:23. | |
in bonuses to its investment bankers than the ?2.14 billion dollars it | :01:24. | :01:27. | |
paid in 2012. So, has nothing changed in the city or is it back to | :01:28. | :01:32. | |
bonuses as usual? With me now is Christopher Wheeler, Banking Analyst | :01:33. | :01:42. | |
at Mediobanca. Give us your take on what we know so far about Barclays' | :01:43. | :01:49. | |
performance last year. Yesterday they announced an adjusted figure of | :01:50. | :01:57. | |
?5.2 billion which compared to ?7 billion last year. They told us that | :01:58. | :02:04. | |
would be 1.2 billion. If you take that out of the interest, the | :02:05. | :02:10. | |
results are probably down five or 6%. That means the investment bank | :02:11. | :02:18. | |
will be down about 10%. At this time of year it is the bonus season and | :02:19. | :02:23. | |
it is always in the press this difficulty between what bankers are | :02:24. | :02:27. | |
earning in the city and what politicians and the general public | :02:28. | :02:32. | |
thing. We'll Barclays pay it bankers more this year or last year? My | :02:33. | :02:39. | |
calculations which I think in line with the market suggests they will | :02:40. | :02:46. | |
be down 9%. Bonuses are based on revenues which suggest they will | :02:47. | :02:49. | |
fall this year. The amount of that income paid out may go out slightly, | :02:50. | :02:58. | |
I have heard talk of 41%. I know Ashley Jenkins is targeting 35%. The | :02:59. | :03:03. | |
size of the port is unlikely to go up given it has been a tough year | :03:04. | :03:08. | |
one fixed income markets and it has been affected by equities and other | :03:09. | :03:12. | |
markets. What about the argument some banks are making in the UK and | :03:13. | :03:20. | |
other cities in Europe that they are losing talent to bigger investment | :03:21. | :03:24. | |
banks in Wall Street cause they are restrained in terms of bonuses? The | :03:25. | :03:30. | |
European banks are also having to turn somersaults over the EU borders | :03:31. | :03:34. | |
constraints and working out how to pay their people appropriately but | :03:35. | :03:40. | |
undoubtedly the course of those that Ashley Jenkins is seen to be more | :03:41. | :03:45. | |
careful with the bonus pay-outs and undoubtedly the US banks who do not | :03:46. | :03:49. | |
have those constraints, there is not the noise on Wall Street there has | :03:50. | :03:55. | |
been in the UK. He has turned down his own bonus. This has become a | :03:56. | :04:01. | |
common situation with UK bank managers, JP Morgan managed to take | :04:02. | :04:08. | |
a 20 million bonus. It shows the completely different attitude in the | :04:09. | :04:14. | |
UK to the United States. As full as they get the full earnings report | :04:15. | :04:19. | |
from Barclays, we will update you. The Singapore air show has opened | :04:20. | :04:23. | |
today and as usual there is a lot of interest in the ongoing battle | :04:24. | :04:26. | |
between Airbus and Boeing for market dominance. The fleet of aircraft in | :04:27. | :04:30. | |
Asia will triple in size over the next two decades, meaning there will | :04:31. | :04:34. | |
be demand for close to 13,000 more planes, so it is a key market. Our | :04:35. | :04:47. | |
reporter is at the show. Tell us more about how it is going. The | :04:48. | :04:54. | |
Singapore air show has opened two huge optimism. We have had news that | :04:55. | :05:02. | |
one company has signed a deal with Boeing worth $1 billion. Airbus is | :05:03. | :05:09. | |
also expected to announce a deal within the next few hours. It has | :05:10. | :05:14. | |
its latest plane on show for the first time here in Singapore. Boeing | :05:15. | :05:19. | |
appears to be unfazed by the competition. To have the right | :05:20. | :05:28. | |
products on the market at the right time, I think we have been able to | :05:29. | :05:33. | |
do that. We launched an aircraft a couple of years ago, last year we | :05:34. | :05:41. | |
launched to back new programmes as well as a 777 programme. If you look | :05:42. | :05:55. | |
at our product line we are extraordinarily well positioned. You | :05:56. | :06:01. | |
are still facing problems most recently with Air India. Do you know | :06:02. | :06:10. | |
what caused us problems? Yes. I think when we talk about that | :06:11. | :06:14. | |
situation it was well understood the issue and we worked on it and they | :06:15. | :06:18. | |
are plane is back in service. In terms of the battery that is | :06:19. | :06:21. | |
something we worked on last year and we came up with a solution that | :06:22. | :06:24. | |
addresses all the possible causes for the issues we had and that | :06:25. | :06:29. | |
situation is improving. We have delivered about 70 team liners. We | :06:30. | :06:44. | |
are putting assets on the ground and investing in the product to get even | :06:45. | :06:49. | |
better. Talking about competition in the market, you are facing | :06:50. | :06:57. | |
competition from Airbus and China and Japan emerging as serious | :06:58. | :07:06. | |
competitors. What is your strategy? We have new competition from the | :07:07. | :07:11. | |
Chinese, Japanese, Brazilians, what we have to do in that situation is | :07:12. | :07:18. | |
learn from them, they bring in new ideas and new technologies, they | :07:19. | :07:23. | |
raise the bar for all of us, we have to invest in new technologies, | :07:24. | :07:27. | |
ensure we have the right strategy and find ways to reduce the cost of | :07:28. | :07:31. | |
building our flights. No matter who the competition is, we will be the | :07:32. | :07:35. | |
winner if we do those things. How do you think China will shake-up -- and | :07:36. | :07:44. | |
Japan will shake-up the industry? There is no question there is room | :07:45. | :07:48. | |
for us and Airbus to grow and maybe one or two mac new competitors, the | :07:49. | :07:55. | |
question is, who will they be and who will be successful? Our | :07:56. | :08:01. | |
customers will decide. It is not just Boeing that is hugely | :08:02. | :08:04. | |
optimistic about the prospects for growing in Asia. There is huge | :08:05. | :08:10. | |
demand for new planes from lower cost carriers. Many chief executives | :08:11. | :08:14. | |
are optimistic about how that will see their future. Two among the few | :08:15. | :08:24. | |
that we have been talking to today who say that their prospects are | :08:25. | :08:27. | |
bright display tops of a slowdown in China and the impact on the region. | :08:28. | :08:37. | |
We will hear more as the show progresses. | :08:38. | :08:42. | |
The Federal Reserve chair will give her first testimony before the house | :08:43. | :08:46. | |
financial services committee today and will face questions on the state | :08:47. | :08:50. | |
of the labour market and the future pace of drawing back on stimulus. | :08:51. | :08:53. | |
While the tone is likely to be upbeat on the economy she is thought | :08:54. | :08:58. | |
to emphasise rates are set to remain near zero foreign extended period. | :08:59. | :09:04. | |
General Motors has announced plans to pay its boss $44 million this | :09:05. | :09:13. | |
year, a 60 -- 14 $.4 million this year. It comes after criticism of | :09:14. | :09:17. | |
underpaying hard for her gender. The markets will be affected by what | :09:18. | :09:41. | |
Janet Yellen has to say today. We will review the papers in a few | :09:42. | :10:11. | |
minutes. The Church of England's drilling | :10:12. | :10:14. | |
assembly will attempt to speed up powers | :10:15. | :10:16. |