As the retailer is battling to keep market share. And the art of doing nothing is honed both sides of the atlantic. Fed chair janet yellen keeps investors guessing while mario draghi is to remain tight lipped on the euro. Well be joined exclusively as well by the ceo of another big player in the asian market, tid Tidjane Thiam joins us in three minutes. Youre watching Worldwide Exchange, bringing you Business News from around the globe. Hello an a warm welcome to todays Worldwide Exchange. As ever, theres plenty to get through. Well be concentrating on the countdown to the Rate Decisions from the ecb and the bank of england. First we kick off in the corporate sector and the uk bank barclays. Its unveiled a radical overhaul that will see the british lender cut 19,000 jobs over the next three years and separate noncore assets into a bad bank. Investors have reacted warmly to the plan. Shares as you can see at the moment up 4. 5 in the uk market. The ceo has been speaking to us in a first cnbc interview. Jeffrey is with us on set. Its interesting. I went to Anthony Jenkins first Big Press Conference when he took over in 2012. At the time youll remember there were calls for something to happen. Dimon ha been squeezed out of the investment. Jenkins comes in, he knows the retail but not necessarily the banking business. People waited to see what he would deliver. 18 months on what have we got . A mather announcement with significant job losses. So when i initiated the conversation, really that was my first question, what now is barclays going to be . Given the action that theyre taking this morning. You have big job losses. Youve got four business divisions refocused and of course this spin off into a noncore operation. Lets have a listen to what he had to say. This is about barclays future as a focused and balanced international bank, a bank that can be the goto bank for our customers and clients but also deliver substantial returns for our shareholders. Basically were dividing the bank into two, a core group of four strong businesses that are well positioned in their markets with good Growth Prospects and good returns. Were combining our personal and Corporate Banking interests in the uk into a new business. We have our barclays car payments business, our africa interests and an Investment Bank which will be much more focused on clientled origination. Then Everything Else which is nonstrategic will go into a noncall unit. That includes parts of the Investment Bank retail interests in western europe and certain other corporate interests in europe and the middle east. And just to focus on that noncore operation for a moment here, what percentage of those assets are nonperforming at this stage . Because i understand you dont want this to be called a bad bank as its been christened in the media, you would rather it Something Else. But to what extent are there nonperforming assets in the portfolio . The assets within the portfolio are generally performing well. This is not about a set of bad assets were trying to run off. This is about nonstrategic assets which we want to exit or run off over time. The vast majority of it is from the Investment Bank. Its about 115 billion in total of riskweighted assets. 85 of that is from the Investment Bank. We are targeting to run that down by 50 billion of riskweighted assets by 2015. Were confident we can achieve that. Yes, interesting someone that hes trying to put on that. I suppose the thing is, the Investment Bank got to be no more than 30 of the assets, a quarter of the profits will come from that in the future as opposed to 50 . Its a major reshaping. This is no longer the bank that bob diamond built. This is britains leading Investment Bank as well. Yes, yes. It does raise bigger philosophical questions about the brits ability to be leading in the banking segment. This is about money. New capital rules means its just much harder to tornado a profit which leads us to the ficc division. Yes. This division which is called ficc, effectively, the bond trading desk, currency and commodities, barclays is getting out of commodities. What was interesting i thought in the conversation with Anthony Jenkins, he basically doesnt see a pickup in the outlook for these business divisions. And so this is what i asked him. You know, its all well and good to make these structural changes now but what if things start to improve around the ficc business . Barclays will not be in a good position to take advantage of that. Lets have a listen to what he had to say. The combination of much greater Capital Allocation towards ficc activities and the state of the economy with the end of quantitative easing tapering and so on means the outlook for ficc is quite challenged going forward. We believe that will persist for a number of years which is the right time to reposition the Investment Bank. His answer is its structural. Definitely. But you have to bear in mind he comes from the retail business. There will be those critics sitting in the Investment Bank who say, well, we were never going to do well under Anthony Jenkins anyway because he understands far better the other side of the operations. But i think, you know the Investment Bankers will be sitting there going weve been through so many cycles, weve seen it so often as well. Downturn, fire a lot of people. Upturn comes, hire a lot of people. Theres money to be made. He has been in the headlines for all the wrong reasons recently. Theres an issue for bonuses for Investment Bankers. There were some saying, look, is there capture here . Have the investor bankers managed to get Anthony Jenkins to do their bidding . He used the term death spiral when talking about what would happen to the bank if they got h rid of the big hitters. I said was that comment illadvised . He said no, no, no. We still have to pay properly. Earnings fall, bonuses are going up. Yep. This point about are bonuses linked to clearly not lunked to the overall profits of the units, the individual units. Absolutely. The share price reaction this morning, is this knee jerk because of significant job losses, cut the cost base, improve the margin and so on and so forth . Or is this investors buying in to jenkins restructuring of the way the business as a whole operates . Your thoughts . Ill leave that one out there. If any shareholders or investors this morning would like to write in, wed love to hear from them. Jeff, good stuff. Thank you. Youre welcome any time. Thank you. You have to finish at 8 57 every day. Ill bear that in mind. Youre more than welcome to hang on. I wonder what it looks like from where you sit. It looks very good, indeed. Thank you. Lets stay with the banking sector, emerging marcus, standard chartered, a drop in First Quarter numbers, as they say the market continues to be difficult. Also coming up on todays show, hot or not . Samsung sacks their head of design after complaints about their new smartphone. With the ongoing patent war with apple, do problems run deeper . And not so super mario, the wiiu is a flop. How will they turn things around . And does tesla need a jump start . They are making some massive investments. Well take a closer look a little bit later. Meanwhile, here we are, just over an hour and ten minutes into the trading day in europe. Take a look at the Dow Jones Stock 600. We are weighted to the upside. Advancers currently outpace decliners by a ratio of 72. The ftse 100 was down. Helped along by barclays. Were currently up 30 points, 0. 5 higher. The bank of england coming out with its latest Rate Decision. Theres a big focus on housing, three former chancellors coming out and saying we are at risk of a housing bubble at the moment. Well be talking about that later as well in todays extended programming. Xetra dax is up 0. 5, the cac current up 0. 4 and the ftse mib up 0. 8 . Other stocks were keeping an eye on this morning, metro, the german retailer, up 2. 5 . Right now, coming out with numbers better than expected. One of the top three retailers around the globe. Bt as well, this stock currently up 2. 5 at the moment as well. Investors celebrating the firm managing to report its first growth in consumer revenues in a decade, boosted by Strong Demand for the firms broadband and sports tv services. But no letup for the grocers in the uk, marshmans down 1. 4 . Shares sliding. The supermarket continuing to struggle as it attempts to continue to compete with discounter like aldi. Munich re posting a 4. 6 slump in First Quarter net profit. The firm hurt by a drop in premium income amid a decline in insurance prices. Excuse me. Jorg schneider will be joining us later. I might have to get some water in a minute. Bond rates, post janet yellen, this time yesterday we were yielding around 2. 58 , just up from the threemonth low on friday. A little bit higher, 2. 62 . Janet yellen says the economy still needs plenty of support and we are still data dependent. Not too many surprises from her testimony. Yields back over the 3 mark. Well get into that later as well. On the currency markets, were still eyeing up these twoweek twomonth highs we hit on friday. 1. 3952, euro dollar. Mario draghi and the ecb, theyve got their Rate Decision out at 1 45. The press conference comes 15 minutes after that. What will he say about strength in the euro. Well get the latest from annette to. Sterling, 1. 6951. And the aussie today, 93. 80. Getting stronger. We have chinese trade data that was okay and jobs numbers as well supporting those. Theyre up, beating for three months in a row. On that data, lets get the latest for all the Market Reaction out of asia. Sri is with us today. Ive missed him for the last couple of days. Hey, sri. You cant get rid of me, ross, that easily. These markets get me choked up as well. I feel for you. Broadly, we are looking at quite a positive tone for the asian markets. Thats down to the dovish tone that janet yellen struck at the testimony and also somewhat conciliatory statement from Vladimir Putin over ukraine and over those referendums in the eastern part of the country. Elsewhere, you mentioned big emphasis on the Greater China markets and broadly, we did see some pretty constructive trade numbers. The market was expecting a contraction for exports and imports. We didnt get that. We got a marginal pickup. Surprise there. In the positive direction. A lot of question marks over why the trade data was so upbeat, was it over invoicing . Was it the mmb effect or could it be down to the changes from the policies perspective, the calibrated moves by the pboc and beijing, the mini stimulus, the targeted infrastructure rollout, that all necessitates a more Raw Materials and we did see quite a sizable pickup in copper and iron ore imports in the month of april. The market is liking these numbers, shanghai composite up, 2,015 is where we stand. The nikkei up, the hang seng up as well. There were pockets of weakness. Down by 1. 5 , the bank occ set. The progovernment protesters mobilize their forces and the opposition feels somewhat emboldened by what happened yesterday as well. So thailand seems to be entering a new dangerous critical phase in the markets are affecting that right now. Back to you now. Thanks very much indeed for that, sri. Well catch you a little bit later. Pleaseded to know we cant get rid of you. I like that thought. Prudential has come out with its figures, the uk insurer with a growing asian business. The new arab business profit increased 20 in a Constant Exchange rate basis. They jump started 2014 with growth in new business profit. Uk new business profit 90 higher. Reflecting strong contributions from bulk annuities. Well be getting a view on that as well. They may be changing their annuity strategy. They say the m g enflows, 1. 4 billion. Up to 129 billion pounds. A fairly strong looking set of numbers this morning at the moment from prudential. Well get plenty more with the ceo. Hell be joining us in around 15 minutes time, exclusively here on cnbcs Worldwide Exchange. An awful lot to get through. Well get his views on the slight problem the fsa had when they announced an inquiry into old policies. More to come. It is also the ecb, a slight tickup in eurozone inflation from 0. 5 to 0. 7 . It might have eased slightly the pressure for mario draghi. The ongoing strength of the yur coe could force his hand. He warned a rise in the single currency could trigger policy action. The market was pricing out the risk in the periphery and reducing the euros premium. I think policy is a factor but more recently its been overwhelmed by movements in the perceived riskiness of the euro. Thats why the bearish overview, which is so widespread has not played out for a lot of investors. Ahead of this ecb meeting, annetta, good to see you. What are the balance of risks right now for the ecb . Do they want to do nothing . Yes, they probably actually are banking on the fragile economic recovery which we are seeing recent pmis are showing that the economy in the eurozone as an aggregate aexpanding. Were seeing a pickup in economic activity. Thats one of the big focus areas probably of mario draghi. What hes going to say about the Exchange Rate and what we might expect from the next meeting im going to discuss now, my guest is a Macro Economic professor from university. Thanks so much for joining us. We were discussing earlier on where the is the pain flethresh for the euro, for the ecb. Are there different thresholds. The euro is too weak for germany, it could be Even Stronger because we see a recovery going on there. Its too strong for countries like grease or other program countries. Its a huge difference. For instance, we calculate a pain threshold of 1. 55 for germany and below 1. 20 for greece. Its very difficult to handle this. So in other words, the southern countries probably will be lobbying for some measures to get the Exchange Rate down. What could the ecb do to lower the Exchange Rate . If i were mario draghi i would not decide in favor of weakening the euro right now because its dealing with political dependence of the ecb and you never know where the equilibrium Exchange Rate is. There is reasons for a strong euro right now. We have capital flowing in, making the euro more strong and also refund efforts might be impeded by a very low currency. So everything is not speaking in favor of doing it. Again, you might oppose against the french wish this time to weaken the euro. Thank you very much. Sorry for being so sort this time. Ross, this times at 2 30 c. E. T. Back to you. Dont forget that ecb decision aat 1 45 c. E. T. Followed by a Mario Draghis press conference. And jeanclaude trichet is coming up at 16 50 cet today. [ female announcer ] theres a gap out there. Thats keeping you apart from the healthcare you deserve. But if healthcare changes. If it becomes simpler. The gap begins to close. When frustration and paperwork decrease. 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And its not just the three former chancellors that have been highlighting this risk. There was a part in the oecd commentary earlier this week and even the new Deputy Governor of the bank of england was warning that the biggest risks to Financial Stability was this asset bubble and how its going to be kept in check. Were standing outside here waiting for the mpc decision on rates i dont think well get any. No one is expecting rates to change before april next year. Living in this new era of central banking where Interest Rates remain at historically low levels. And asset bubbles are kept in check by these macro potential tools. We had the mmr, the Mortgage Market review. That was brought in last week. Well get banks stress tested that will have more tools in june. The question is will these be enough . With me now to discuss this is sus susan emmit. Are these tools going to be enough and is the housing bubble something we should be worried about . Its early days on the mmo. Its only been brought in. Were in a bit of a wait and see territory at the moment. What we have been told by lenders is that theyve already put in some of the measur