And access for the greeks . And to the u. K. And what is on the board. Barclays is down 1. 6 . I will have something later from Anthony Jenkins. Probability that profitability is up and beat estimates. They made bigger provisions on Foreign Exchange. 750 Million Pounds of provisions in the fourth quarter. During the conversation jenkins could not or would not you said yes to may Reasonable Estimates and said they were legally binding to do that. They didnt go with other institutions with summative regulators and of when some of the regulators and some of the banks. Was it a missed opportunity . That is the question. In terms of the rest of the market currencies, you mention the aussie dollar a its absolutely on a rip. And rallied 1 at one juncture. House prices are up 14 year over year. Reasons why they have not lowered the rate for as they may need to cut rates at another date. One of our most accurate forecasters suggested in the Third Quarter you are going to see raise up 1. 5 for the aussie dollars. Thank you very much. We will talk about australia and little bit later. The ftse 100 is up. Another recordbreaking session. The dow jones and s p 500 close it all time highs and it took about 15 years for the nasdaq to close above 5000 points. It is customary to decide to discuss u. S. Stocks and bubble behavior. They call it the most a lovable market in history. Showing some big love to themselves. Last month, a record month for planned record buyback. 123 Companies Announced plans to read rebuys. On the s p 500, companies has spent more than 2 trillion on their own companies. Lets get an investor take on this. Nick, great to have you with us. Lets talk about the record highs. How much of these record highs in these markets in the United States underpinned by buybacks . Quite considerably. It is not a typically lovable market. It would not justify a u. S. Companies love themselves and as one take away. What does it say about the ability to grow. Why not them money on new factories, hiring people . Capital investment in that capacity around that glow. The last thing they want to do is invest in new equipment for you get the money back into the hands of the shareholders. Another story is low rates superlow rate. Not even in the textbooks. What has it meant for you over the past couple of months . Quotes it is difficult it is difficult for all investors especially our clients especially retirees. This could be a low rates are going to be here for some time we believe and it will create incredible challenges for retirees. Our job is to help guide him through it. There is no magic will it. What kind of a feisty give them . What kind of a vice would you give them . Retirees would love guarantees. [indiscernible] maybe an element in there as well. I want to get a quote from will gross. Talking about not even being offered to the modern day oliver twist investors. Something he talked about yesterday was whether these superlow rates turning negative going below the zero lower bound. Does it seem to become a stimulus . Do you see that kind of behavior . I think so. The first time it worked. It is time, less and less. In europe, the first time. They have been beneficiary across the atlantic and shouldnt be. Itll be interesting to see if it works. The jury is still out. Do we move into the credit spreads and to corporate . Do you foresee a period were corporate comes to market and get a negative yield . The secondary market . Exactly. Look, it is a modest growth period. The u. S. And we expect a u. K. To pick up later. Thats favorable to bonds. You have easy credit, the fed look like if they raise rates it will be done modestly and slowly. We would recommend. Would you give an Investment Grade . We like single in u. S. Highyield. The sweet spot. A big selloff in october so they looks like a good value. In europe because of the slow growth, much more folks on the bb. In the equity market, where does it leave you . And u. S. Is better because of the higher growth. May be running its course a bit. Maybe overweight europe and japan. Nick lyster you are going to stay with us. The reserve bank of australia does nothing. That is the headline. While much more of what it means for the market when on the move returns. The rba keeps rates on hold at two point 25 . We are back in two. Welcome back. 10 minutes into the trading session. The ftse up by 14 points. Time to get the top stock stores. Barclays topped estimates this morning. They will take a charge related to a currency probe. We will bring you some of our interview with the ceo. A little bit more nuance then it would suggest. And merck, we will speed to the Pharmaceutical Company a little later this hour. In 2015, it has been about Central Banks. More than 17 have cut their benchmark rate this year. The year of the evening. It is news when a central bank doesnt do anything especially when it was widely expected to. That is what happened in australia. They left their rate of 2. 25 . We need to make sense of it. Dan last month you said there was a reason for cutting, it was compelling. What happened this month . The rba thought very differently from the markets the last minute again. Remember, they have been signaling to the market about the economy with what they intend to do which is they do not do one and a tend to do several. It was a case of wait and see and indicating again at the currency was [indiscernible] one would say they are hovering around the high 70s is softer. 2 things facing, the domestic pressure, big concerns, how much would it feel asset prices . Australias Property Market which has really been redhot. Jonathan six hundred thousand dollars will buy you a twobedroom unit in sydney. That is out of reach of many many people who are in wages of around 70,000 annually. Thats what the central bank is looking at. The domestic numbers and we saw strong building and really a wait and see approach. Messaging and one would have to say and this is being very kind and has been rather confusing and have been giving the tale for some time. Dan petrie. I am not shedding a tear for you when it comes to housing prices. When i look at london and compare it to sydney they have the same problem in australia that we have here in the u. K. . Absolutely. Increasingly, you are seeing in london where your the situation where people almost parking their cash and property and the same is the case in sydney. 600,000 and that was a twobedroom unit. When youre looking at an actual house, people are paying 1. 5 million, 1. 8 million for an ordinary house. It is a case, where do you go . A lot of investors are looking for somewhere to park their money. So, the same problems which have been affecting europe, the mother country certainly bearing australia at the moment. The concern of entering is also a political for the powers who be. Australias problems always to do with the supply side, not enough coming on stream. Hauling out the same symptoms and the likes of singapore and here in hong kong. Again property well over 1 million, certainly something doesnt afford me to look at. Quickly to followup. I know you have work on the Housing Market. Is it really going to stop the rba from cutting rates or are they going to look at the Housing Market and see what new zealand did before anybody in introducing stopping it from overheating . That was a case in point which the governor was very concerned and whether they introduce tools. Looking at stevens, he is a markets guy and doesnt want to cut anymore. They may have to do something regarding sydney. And the rest of australia starting to see the home prices come off. So, at this stage probably say no based on the rba has been reluctant to go down there path. There is one big element here a lack of building slides supplies and infrastructure in that part of australia which is been a problem facing us. Sydney really has addressed the supply side issue. Was it does that, you would hope price once it does that, you would hope prices start to moderate. Dan petrie as bloomberg news, a big thanks for joining us. Nick lyster is still with us. He helps manage more than 320 billion. We can talk about centralbank easing in china lets start with centralbank easing. 17 Central Banks so far this year, at least 17 of the ones we track here and bloomberg, how much more are you expecting . Were you expecting this . Human australia . You mean australia . A no, not australia but 17. They are china, the slow down in china in australia being impacted. I look at some of the macau casino revenue and plunging. What you see in china . Consumer spending is way down. Massive investment boom, 20 30 in investment and that has come to a shuddering halt. Capacity and the chinese economy as there is in a lot of emerging markets. When you turn the tap off and capital spending, it will trickle down. Back of the envelope stuff. If you were to make an investment would you like the Development Still at the right point. Nick lyster ceo. Thank you for joining us this morning. Here is the chart we will focus on. Dollar ye versus toyota price. Take a close at how closely linked those two things have been over the past couple of years but why do i bring it up . We will head to the geneva auto show is free to toyota and speak to toyota. Welcome back. Stocks higher across much of europe. Lets bring you up to speed with some of the top stories. Gaming revenue in a macau plunged 49 in the month of february, the biggest fall the ninth straight month of the clients. This time last year, macau casinos raked in an alltime record. Back in europe, a warning that agrees may need a third bailout within a month. Marcus may not be prepared markets may not be prepared when the Current Program ends in june. The greek government will have to meet the requirements and then see what Market Conditions dictate. In the United States on wall street, the nasdaq closed above 5000 points for the first time in 15 years. Meanwhile, the s p 500 and Dow Jones Industrial average reached a record. We have got more. Lets talk about october now. The Geneva Motor Show is underway and carmakers to the are to impress with her latest offerings from hans nichols is there enjoying himself. Over to you. Thank you very much. I am joined with the executive Vice President from toyota. Thank you for joining us. We are coming out of a difficult year. What is the outlook, the overall outlook from toyota . A good year last year globally and sat good numbers. In europe, we sold 880,000 units. Through the recession and by the way all those years have been profitable so we are growing sales a growing market shares and becoming more profitable. It seems that we are talking a lot a luxury. How is lexus taking off in europe . We had trouble for a number years. With the is we have close off with great improvements in the product and the last few years have been great we were one of the fastestgrowing brands in europe up 23 . We have a new model that sold out and we expect another strong year this year again. Your bit Hydrogen Fuel cell zero emissions, tell us about it. Demand is something we are learning about. We cannot produce enough right now. We have japan that all sold itself in terms of allocation a u. S. Coming on. We will have a small number of units. This is a long journey we are on. We are serious about fuelcell technology. We think will democratize hybrid and we are leaders. In terms of make a sure anyone can access a hybrid vehicle and were going to do the same with fuelcell. We have different challenges because wet infrastructure issues free its a long journey not a oneshot car. Incredible technology. We are probably going to close up with a plan of around 1000 euros a month for this incredible technology, it is a game changer. So much talk about what is happening in russia. Do you said turnaround anytime soon . I cannot answer that the russian market has been good to us. We had a great year last year. Ourselves were up 6 . And we see russia as a long time we are not going to react in a negative way. Russia has been good to a as a business and we want to continue. Speaking of negativity, some of your u. S. Counterparts especially for to say you are getting unfair advantages. Are you getting 10 billion to reinvest and Hydrogen Fuelcell . I do not think it is a fair economy. Comment. Wendy when the yen was the other way, nobody was talking about this. We have other currencies counteracting with your row, ruble, u. S. Dollar. It is not were just taking a windfall. We do not pull back when the yen was in a different position that today and we are not taking that is a different strategy. We will go on with our own strategy. Thank you. A little bit of currency news because i know you like trading currencies more than cars. I think thats a car for you. Six is thousand euros a you have to pay taxes on it. 600000 euros and you have to pay taxes on a. Thank you for being your provocative elf. Hans nichols. 26 minutes past the hour. Stocks a little bit firmer across most of europe. The aussie dollar climate as the rba does nothing. A busy morning off earnings. We will speak to the merck cfo. Good morning and welcome back. Lets bring you a picture of the equities market 30 minutes into the session. The dax is up 0. 25 . German retail sales month on month at 2. 9 expected to come in at less than half of 1 . The dax is higher, the ftse 100 is higher. Lets get into some of the indices and bring some top stories with anna edwards. Lets talk about barclays. The details this morning coverage and it is down. Another mention and the ceo is getting his first bonus since he took the job in charge of what is the uks number two bank. He took over 2. 5 years ago. Just trying to take it more toward the retail side of things. That continues. He told my colleague earlier, does the editing jenkins off course every part of his business must deliver on equity targets. And that is Anthony Jenkins of course, every part of his business must deliver on equity targets. Quite crucial to the results of glencore and net profits beat. What set it apart from the few pure mining it has the business which itself commodities such as oil, cotton, copper. That heart reported a 50 increase. That part reported a 15 increase. The Bloomberg Index dropped to its lowest in more than 12 years in the month of january. A week environment. Glencore above the rest of them perhaps as a result of the slightly more diverse strategy they have going on. Paddy power is up by 9. 5 . The i wish Gaming Company with a cheeky sense of humor proposing a return of eight euros a share and investors seemed to like that one. They said it was nothing other than expected and that is what Companies Like to hear and that means they have been in line with expectations. Anna edwards, thank you. German pharmaceutical and Chemical Company merck reported estimates that beat expectations. The cfo joins us with more. Marcus kuhnert great to have you with us. Lets move away from their earnings. Lets talk product and acquisitions. The motor acquisition, 17 billion buyback and a bit question is, whether we can expect the major acquisitions to continue in 2015 . We are currently in the process of obtaining and we are progressing like planned. We believe until the middle of this year we wouldve achieved all of the Regulatory Filings and will be of the close in the middle of 2015. Marcus, beyond the regulatory requirements you promised to cut how realistic is that deal . Will you have to cut costs in terms of employment . It is too early and too premature to talk about how many layoffs we will be doing. We have said we see an a lot of opportunities to realize synergies in the range of 260 Million Euros which will present 12 of the sales and once a have full access to sigma after the closing, we will work diligently in order to come up with implementation plans of how to make 260 work. And then we will get more clarity on what it means for the structures of both companies. Marcus, lets talk about product. One of the reason for the acquisition is diversification away from pharmaceuticals. Some say you are struggling to develop new drugs as some have said that was a decade since a major drug was approved. What do you say about it . First of all, diversified portfolio is part of our company policy. That means with the acquisition or pending acquisition of sigma we make a further step toward diversifying and balanced portfolio. And we are entering the lifesize market and we are expanding on the life science market which is a market volume of 100 billion euros of profitability of the lease 25 of at least 25 . Quite stable. That means it is pretty attractive. On the other hand, it does not mean we would move away from p harma when it comes to the future intense. They just one of the three pillars of our Company Going forward and we continue to invest. I think with a very important milestone in november of 2014 with entering this Strategic Alliance with pfizer was our oncology pipeline. We are confident we will get products out of this pipeline in the next coming years. And so, its one of our strategic projects going forward. Marcus lets talk but the markets. The year 2016 could be the year of the cfo here in europe. The euro trading near a decade low. Yields near record lows. Lets talk about the currencies for now. Though weaker euro, talk to me about strategy. Obviously, on the first glance, the weak euro helps and when we translate currencies will simply more euro after that we simply have more euro left after that. On the other hand, in the longterm not only advantages would your operating or your currency has a weak value, you cannot be to have a weaker euro going forward. However in the shortterm, it provides some tell wind. On the other hand, when you are a globally operating company, a little bit more diverse in a way we have definitely benefited from the u. S. Dollar. At some of the important asian currencies like the taiwanese dollar and helping us, the depreciation is helping us as a major part of our business in asia. On the other hand we are most probably facing a depreciation of commerce the Anna Latin America and also in terms of cost structure, quite significantly in sweden and the most recent depreciation of the swiss franc is not helpful. It is a quite diverse picture. I acknowledged for 2015 is supposed to dominate preempt given the currency of today, we will have some tell wins in 2016. Tailwinds in 2016. [indiscernible] weeping the effect is not material. It will be there but not material and not enough to affect positive effects from the u. S. Dollar. Quickly and finally in terms of the debt market with for a cost solo near record lows, is is an opportunity for you to do something creative . What do you think . The main advantage of the moment is we are in the midst of the process of securing the financing of the acquisition. We will be financing with cash bank loans, and a bonds a low Interest Rate environment is pretty helpful as it secures or gives us the opportunity to secure the financing at pretty attractive cost levels. We would assume at the moment an area of 2 , which is pretty low. Lets say represents not such a strong burden for our financial items in our p l going forward. Markets, why not do even more in bonds . Bank credits provide us the flexibility we need for leveraging. When that bank credits, we have a flexible Balance Sheet and can use it for the next couple of years in order to reduce net financial debt and give a more flexible and at the end of the day, the mix is what counts and we can where found a good mix. Marcus kuhnert cfo of germanys merck. Thank you for joining us. We will keep on their earnings. We will talk about barclays beating estimates. It took a burger provision a bigger provision for a currency probe. We will bring you the interview after the short break. Good morning and welcome back. Barclays is trade a little lower after the british lender reported results and announce an additional 700 50 Million Pounds revision for an at half 750 Million Pounds for an fx probe. Manus cranny asked the ceo. I am pleased with the results we announced today and revealed the bank is it a strong position is is any time since the financial crisis. Let me deal with your question on the Foreign Exchange provision. As i said at the time we are in discussions with multiple regulators and we believe it is best to conclude a settlement with as many at as possible at once. We have made progress as the provision reflects. I am cautiously optimistic we should be to resolve this matter and in the coming months. Will it be at the top other provisions . 1. 25 billion and is the top of my Foreign Exchange estimates . We are required to provide for what we can reasonably estimate and that is what we can reasonably estimate. I cannot say that will be the end because the discussions are still ongoing with a number of authorities. Investment banks, lets turn to the top line here. It is performing well in the First Quarter. Mr. Jenkins, what exactly is performing well in the Investment Bank in the First Quarter . Compensation and cost are down. Which part of that is really beginning to be a head in q1 . One of the things i feel really good is the strength of our 4 core businesses. Performances in 20 but specifically on the Investment Bank, if you look at our position where with had advances in europe and look at our progress in the equities business, will done well there. If you look at macro and the way will focus on macro, we have done well. A number of underlying areas that performed well. We made a strategic shift to focus on client businesses and that is working for us. Manus cranny joins us now and a bloomberg report, richard. Richard, you look at the results that beat and all of the other news that looks good. Then you see this big, big provision of 750 million, is in negative this morning . And certainly is. This weight of litigation and estimates from morgan stanley, for example 45. 4 billion pounds more for barclays. For 5. 4 billion pounds more for barclays. The ceos said they would come hopefully and in the next couple of months but he doesnt have clarity. It is in the regulators court pretty he has to play by their game. Investors will like to see coming back ideally. It is like sitting in front of dugan at credit suisse. Heavy set aside enough money have you set aside enough money . They cant give you another month they can give you the answer, can they . I have had this book is the regulators go hot and cold literally. They move from being the in gauging and possibly through to subtly, they turn on a dime. Even more provisions. What you have written, to put everything in context, youre saying barclays at one point to 5 billion pounds. 1. 2 5 billion pounds. And to put a point on this, rbs made a provision of 750 Million Pounds and paid 634 Million Pounds. Barclays 1. 25. Hsbc, over 600 million. Again, it is an open ended trade for barclays. It is open ended a four jenkins on till he closes that. Until he closes that. One of the better performing stocks. This time last year, Anthony Jenkins, he was under pressure, the stock was down at one point i almost 20 . We started talking about legacies. Is he started to put a stamp on this bank . It is beginning to come the room. Jenkins has a big agenda on corporate change. He said it could take as long as 10 years. Investors have want to see the change. We have a new chairman of coming in and perhaps he will add more pressure on the ceo to change in the bank quicker. We do not know. However, jenkins is somebody under pressure to perform. The performance of this year has been better. They are up almost 9 year to date and that is better than last year. He must be doing something right. He certainly has some way to go. At the start of the interview, the politics a phrase you use. A political set a result in some way . Trying to make it a little bit more interesting. Getting me to backtrack. I cannot believe. The points being this, theres a new leader at barclays and compensation, it is down at im sorry, in terms of the bank. Yes, he is taking a bonus. He is not take a while for the past two years. Compensation is down veritable compensation is down. Overall bonus is down. This is the 10 year of jenkins. This in many ways will be his step on barclays. This is the tenure of jenkins. This in many ways will be his stamp on barclays. A big step and he didnt look at all happy when i asked why you are not ubs, get on with it. It will be a story. A big thank you to manus cranny and richard partington. That may not be enough for investors. We would to you why after the break. Welcome back. We are going to talk about glencore, shares beat. We are joined i jesse in guy johnson. Jesse, what did the market want a big buyback or a dividend . Tell me. Interesting numbers and an interesting reaction. The commodities space return more cash to shareholders. Glencore and a 1 billion shareholders a buyback. I spoke to the cfo and he said we are going to review and what is setting it apart but to really the dividend was in line and expect expectations. The numbers were beat, pretty positive performed well. And see an opportunity in m a and we all know this one big opportunity. Is that going to be the story . Everybody will like to see less in that space. Jesse was talking about in at the time. Take capacity, what would it mean . Talking about taking a backseat to m a and does it mean that deal is off the table . No, i do not think it is off the table but it would be harder to do. In terms of what it would impact fundamentals and looking at what glencore would be doing. Last week, that no taking 60 is a announced taken 60 off. When i spoke to him, he said we do not believe in cannibalizing our own markets. How we would operate in one of the leading production companies. We go to the pulse in three or four minutes a glencore will be in and pact with earnings. We have great guests coming out. We will be talking to our rich orange and pontiac. The big question at the moment what is more important to you, your mobile or your car . I am guessing they would like to say car but if they thought about their life, they may say mobile. Jesse . A mobile. Looking forward. Guy johnson, thank you. Jesse riseborough. A big mover is in the fx market. The aussie dollar is higher as the rba does nothing. If you want to continue the conversation, i him on twitter. Good luck with the rest of your day. Barclays beats the british bank posting a 12 jump in profits as it takes a big hit for a global currency probe. We have been speaking with the c. E. O. Anthony jenkins. Back to barcelona. Well speak to the orange c. E. O. And behind the wheels, behind james bond. Were live from geneva with the head of aston martin and plenty of other top car executives