01/03/2016 World Business Report

Now for the latest financial news with Sally.

It will take longer and cost a lot more.

That's the warning from the boss of Volkswagen

about its deal with US authorities over its emissions testing scandal.

Banking giant Barclays is set to reveal its full year results,

but is it going to pack up and leave Africa?

Also in the programme: Further signs of slowing growth in China

but this time the services sector is also week.

Our team in the region will have the details.

But first: It is confirming investors worst fears

and brings back memories of BP's long and costly battle with the US

Now it's the turn of Volkswagen's boss to warn that a deal with US

authorities over its emissions scandal could take

Talking to our correspondent at the Geneva Motor Show Matthias Mueller

explains the german car giant has commissioned a US law firm, Jones

Recent press reports in Germany have suggested the former chief executive

Martin Winterkorn was aware far sooner than first suggested.

This is what Mueller had to say to Theo Legget.

TRANSLATION: Highland not take part in the speculation in the press. --

I will not take part. We will be better off waiting for the

investigation. We are all impatient. I think we should wait for a couple

more days. Jones day and Volkswagen will publish a report in April. We

will then know the story. We should be careful and not pre-empt the

result. Are you confident the scandal could not happen again?

We've drawn our conclusions and learn from them. We reorganised our

internal procedures and optimised them so that to the best our

knowledge such a thing should never happen again. You can not be 100%

sure but we are confident. Looking at the financial side of things, VW

set aside 6.7 million euros to of the scandal, now that we've spoken

with the lawyers and authorities in America, do you still think 6.7

billion euros will be enough? First of all, 6.7 billion is the reality.

We have postponed the year and financial results and the AGM to

improve their quality to be even more confident and take even more

care and diligence in establishing the figures. Then we will see if we

have to make additional provisions over and above the 6.7 billion.

Those provisions could be very large, because you also have a case

by the Department of Justice. We say this is all speculation. The figures

referred to range from small amounts to very large. We will not engage in

speculation. We are engaged in constructive dialogue with the

American authorities. We expect them to be strong but fair and from there

we see what happens over the next couple of weeks. The CEO of VW

speaking to our correspondent. More of that interview on the website.

It's becoming a very familiar tale but this time there is a new twist.

Activity in China's manufacturing sector shrank in February,

but growth in the all important services sector also slowed.

The official purchasing managers' index came in at 49 in February -

that is down slightly from January and worse than expected - a number

The news comes just after China's central bank gave

the country's financial system a major boost amounting to over 100

billion US dollars - but many are asking is this enough?

Lets go to our Asia business hub and join Sharanjit Leyl.

Nice to see you. Tell us more. This is not good news but January is a

funny month with the lunar New Year celebrations. It is indeed. You ask

earlier if it was enough, the attempt by the central bank to

stimulate the economy - it seems to be enough for now. Today it is

providing a marginal boost to markets, at both Hong Kong and

China's markets were higher earlier, reacting to news late

yesterday that the Chinese central bank was adding more stimulus by

cutting the amount of cash these lenders must hold in reserve. It is

the first reduction since October. It comes after a string of volatile

days on the mainland stock market. It also drove the Chinese currency

just a little lower, raising eyebrows because it came shortly

after the Chinese pledge to keep the currency stable at the G20 meeting

on the weekend. We know the weak currency helps boost the country's

exports, though it is accompanied like calls off our play from trading

partners who say they are driving the currency lower to boost their

economy at the expense of their trading partners. Thank you so much.

British banking giant Barclays will reveal its results for 2015

The bank's been battered by falling investment banking fees

Let's take a look at its troubled times.

Since the financial hurricane of 2008, Barclays has been hit

by a succession of problems: Four different bosses in four years,

The share price tells the story: down 40% since last summer.

A big part of this is the shrinking investment bank

business, it makes much less money and recently announced one thousand

Meanwhile, Barclays is paying for past misdemeanours with hefty

provisions for mis-selling products to its customers.

So under the leadership of the recently appointed

Jes Staley Barclays may now focus on its key markets, the US and UK,

which bring in two-thirds of investment banking fees.

A sale of its stake in Barclays Africa Group is possible.

But with 12 million customers across 12 African countries,

it would lose a foothold in faster growing economies.

With me is Chris Wheeler, banks analyst at Atlantic Equities.

Nice to see you. You used to work for Barclays. You know it extremely

well. You know the African part of the business very well. Explain how

it works and what is up for sale and whether it is attractive. Barclays

has been in Africa 4/100 years. It got out of South Africa in the

apartheid period -- for 100 years. It is in Kenya, Botswana, Uganda,

owning 65% of the banks held by the empowerment group. Is it the right

move and will it sell, will there be buyers? Bob Diamond, when CEO of

Barclays, was bullish in Africa, because during the commodities boom

it was a popular place to be with a lot of activity. That has changed.

The South African economy is weak. He will have to look at improving

the falling share price. I don't think Africa will do that in the

immediate term. He has to get fast results. What will he say today?

Annual figures are out shortly. They are not expected to be fantastic.

The fourth quarter, end of last year, is expected to be brutal. The

retail banking, Barclaycard business, went very well. The

problem is investment banking, week in the fourth quarter, and we have

seen the results in European and US investment banks. That will pull

them down. There will be more legacy cost. A difficult quarter. He has to

work out how to sharpen the business. It will be about his first

presentation as a high-profile CEO. He has to talk about his latest

vision on how to get Barclays back to the profitability to turnaround

the share price. It has been punished, as mentioned. Dividends

are expected to stay in place. That's what they say. Just like edge

SPC. Questions about capital still -- HSBC. They will talk about how

they will implement the ring-fencing of the UK retail bank which has

capital implications. As soon as the numbers come out, I am sure they

will look at whether or not it was the right thing to do. Thank you for

your time. Let's look at the financial markets. Just so you have

a sense of how it's going. Despite news from China about its

manufacturing and services sector, Hong Kong is higher. As is Shanghai.

That is possibly because the massive boost to banks lenders across China

has been injected, announced on Monday. The next screen to see how

things ended in the US. Down two thirds of a percent right across the

board. That is all for me for now and I will see you surely as we

review the papers. I will see you then. -- shortly.

The Home Secretary, Theresa May, is publishing revised plans, setting

out powers for the police and the security agencies in the UK.