barclays has been in africa for 100 years. barclays africa is a great business.got a terrific team. we have enthusiastic colleagues. so, it is a very difficult decision, but as you noticed, we own 52.2% of barclays africa. on the other hand, in terms of how the regulators think about -- we own 100% in terms of the liability. so, we look at the capital charges, funding charges, etc., it is very hard to own 52% of a business where you have 100% of the liability. the returnses generated locally in africa when they are translated to returns for barclays in the u.k. we will of a period of two to three years, slowly reduce our state to a non-consolidated, noncontrolling position and barclays africa. it is a great bank. there are a lot of investors that are clearly interested in africa. clearly interested in barclays africa. we think there will be significant interest in over the next couple years as we move to a noncontrolling position. anna: have you had any conversations with -- bob dimon? have you had any conversation so far on that front? >> we're just announcing t

we own 62.3% of barclays africa.r hand, in terms of how the regulators think about our ownership, we own 100% through liability. so we look at the capital charges that we have, funding torges, and it is very hard devote 62% of a business where you have 100% liability. that truncates significantly the returns that are generated locally in africa when they are translated to returns for barclays here in the u.k. we have announced that we will, time, slowly of reduce our state to a non-consolidated position in barclays africa. it is a great bank. a lot of investors are clearly interested in africa and barclays africa. we think there will be significant interest over the next couple of years as we moved to a noncontrolling position. anna: significant interest. have you had any conversations ,ith the likes of bob diamond any conversations on that front? >> we are just announcing this decision today, so there have been no conversations with anybody. this is just public now. we are going to give ourselves to her three years

clearly interested in barclays africa.ink there will be significant interest over the next couple of years as we moved -- as we move. by michaele joined metcalfe. why so this one? >> analysts have wondered why this folio and the synergies with the bank. does it make sense? people were wanting a lot more which explains why the stock is down. disappointment there. wondering is that connection with the group? let's wait and see. there are a lot of words out there from the ceo saying it is want to take time and it will be difficult. how long it will take to get the guy: barclays trades on .26. i struggle to explain the difference. barclays is way too complex. the investment bank is the big question mark. it also, if you look at other banks, jpmorgan warning about trading losses, even barclays is saying oil and gas more losses -- more losses down the back -- down the pike. hans: i'm going to pretend to be smarter than i am by quoting from one of her columns where you took a look at how different banks look at this negative inte

barclays has been in africa for over 100 years. barclays africa is a terrific as this.e across the continent. it is a very difficult decision. as you noted, we own 62 point 2% -- we own 62%ca of barclays africa. we look at the capital charges we have, funding charges, etc. it is very hard to own 62% of a business where you have 100% of the liabilities. >> glencore ceo striking an that prices saying have bottomed. why does he think the bottoming out is happening? >> through the whole of last year, we saw manufacturers, not just in china, but all over the .orld, destocking they could feel metal prices going down. no one wants to be holding expensive metal, turning it into small margins. when they see the cycle ends, and we think it is ending now, prices start to lift. we have already seen some evidence of restocking in china. they be not as fast as in past cycles. >> how much more do you see there is filling up to the upside? >> it is really easy to sell the stuff too early. glencore has done very well. it has managed this exceptionally, in my view. it is not that bad. is

. >> let me ask you about the proposed selldown of barclays africa group. how are you hoping this will take place? the market is concerned about your ability to find a single buyer for this asset. >> we own 62% of barclays. a very strong shareholder base in africa. there's a strong institutional base. we're going to give ourselves two to three years to sell to a deconsolidated, noncontrolling position in barclays africa. there's a lot going on in the continent. it's a terrific franchise. there will be a lot of shareholder interest in barclays, but we'll do it over a safe period of time. >> another big announcement on strategies. we know the chairman was talking about a mother-daughter relationship that regulators were simply not approving. you've described it more as a sibling relationship. is this sister-sister, how you would describe the ring fencing taking place today? >> we're simplifying the business model to a transatlantic bank. it will be run by two divisions. one will be barclays u.k. that will be comprised of barclays retail presence in the united

dailey, and asked him about the decision to cut back their effort of the exposure -- there africa exposure. >> barclays's been in africa for over 100 years. it's a great business, with a terrific management team and enthusiastic colleagues. we are across the continent, it's a very difficult discussion. -- decision. africa.2.3% of barclays on the other hand, in terms of how regulators think about ownership and barclays, we are more hundred percent in terms of liability. we look at the capital charges, funding charges, it's hard to own 60% of a business where you have 100% of the liability. the truncates significantly return that are generated locally in africa, when they are translated to returns for barclays here in the usa -- in the u.k.. we will slowly reduce our stakes , two-on-one consolidated, noncontrolling position and barclays africa. it's a great bank, there are a lot of investors that are clearly interested in africa, clear interested and barclays africa. think they will be significant interest over the next couple of years as we moved to a noncontrolling position. >> significant interest. have

and barclays africa says there is no lack of interest for those seeking a stake.t comes after the parent company last week announced plans to reduce its 63% holding to less than 20%. >> we keep emphasizing that there can be a lot in gold, and something regulators will look at is -- is there long-term stability? even if someone is a long-term investor, you have to think of regulators. caroline: we will be speaking live to the barclays chief executive at 12:15. that's your bloomberg business flash. guy: thank you. goldman sachs is warning bond traders not to that again central-bank policy divergence. goldman is still expecting three fed rate hikes this year. hans, take a look. a fascinating panel i was moderating yesterday and this came up. if you look at inflation swaps, the market is not pricing the ecb hitting its 2% target for 15 years. draghi will be long gone. goldman is saying we think the divergence will be around for quite some time. i think 50 years may be excessive. iss: they could be, but it hard to find a data point or any evidence where you bring it ba

as you noted, we have 62.3% of barclays africa. hand, how regulators think about ownership, we own 100% in terms of liability. you look at the capital charges that we have, funding charges, etc. it is hard to own 622% of a business where you have 100% of of aiability -- 62% business where you have 100% of the liability. g right?s i.t. why does he think it is bottoming and things will get better from here? >> we saw manufacturers all of the world thdestocking. they could feel metal prices going down. nobody wants to hold onto expensive metal. they destock as fast as they can. when the cycle ends, and we think it is ending, prices start to lift. we already have seen some restocking in china. maybe not as fast as in past cycles, but is still happening -- it is still happening. >> how much more do you think there is on the upside? >> it is really easy to sell the stuff too early. glencore has done really well, exceptionally managing this downpour. is not that bad, it is a slightly different sort of growth. this is more of a consumer or

barclays has been in africa over 50 years. barclays africa is a great business.have enthusiastic colleagues. we are across the continent, so it is a difficult decision. as you noted, we own 62.3% of barclays asset shares. on the other hand, in terms of how the regulators think about it, we own 100% in terms of the liability. look at the capital charges we have come of funding charges, etc. it is very hard to own a 62% of a business where you have 100% of the liability. guy: glencore ceo ivan glasenberg striking an upbeat note, saying prices have bought in. why does he think the bottoming out is now happening? why does he think it will get better from here? john: through the whole of last year, we saw manufacturers de-stocking. they could feel metal prices going down. no one wants to hold metal as they are then going into products, so they destock as fast as they can. when that cycle ends, and we think it is ending now, pricing de-stocking. starts to lift. we have seen evidence of restocking in china, maybe not as fast as has happened in past cycles, but it is sti

barclays africa says there is no lack of interest from others.he parent company reduced its 62.3% holding to less than 20%. >> we keep emphasizing that there will be a lot of trade involved, and what we think regulations would look at is the long-term stability. even when somebody who was a long-term investor, a stable we have to look at what management would look at. nejra: we will be speaking life to the barclays ceo at 12:15 u.k. time. that's your bloomberg business flash. francine: i'm really looking forward to hearing from him. there are a lot of questions -- he hasn't been on the job for very long and he is probably finding it tough. with worries over euro area deflation and unemployment stubbornly above 10%, economists are in doubt that the ecb will unleash more monetary stimulus. world's largest provider of temporary staff is with us. thank you for joining us. you perfectly encapsulate the troubles, and you have a feeling on the ground of what the economy is like. overall, the french economy is a little bit better. does it feel better, or

to do that in concert with the government of south africa and with our other shareholders of barclays africa have given ourselves time, two to three years to get the sale done in a way that protects the franchise in africa and it is a separate bank and do it in concert with the south african government and the other governments we deal with across the continent of africa. erik: as anybody approached you with such a bid? jes: a lot of interest that is come our way. let's see how this evolves. erik: what a make a difference if the bid were bob diamond? jes: i do not think he has the financial capability. there has been a lot of interest. let's see how it evolved over time. -- eve all's overtime. es over time. erik: some cannot understand why cap decided to remain in the business -- have decided to remain in the business. it is important for people in here to understand this. they work in the investment bank, a lot people say it is not a fair fight, barclays is uniquely disadvantaged by u.k. regulators. how do you respond? jes: i do not agree. the u.k. bank is a great place to be. we have a ver

scarlet: barclays cut dividends for the next two years and reduced its stake in our cleat africa -- barclaysica. alix: joining us now is michael moore, head of the u.k. finance team in london. a lot of pain here. what was most striking to you? there's the cutting the dividends, getting out of africa investment. the call when he said he was not going to exit investment banking. >> i think the dividend was the big surprise to investors. investors thought they would try to boost the capital levels. called for them to shrink the investment bank to do that. they want to stick with that business in its current form and chose to cut the dividend in order to fund a quicker run down of the non-core business. that they have been trying to bring down for a while now. for some companies, didstors say, thank god you it, now i feel better about your company. what can he do to make investors feel that way? >> i think they want to see a little bit of growth. wantt growth, then you some payout. barclays has been building capital since the financial crisis and investors have been waiting for some sort of payo

as part of this reorganization, the bank will sell down its stake in barclays africa, 44,000 employeesat unit. once thought to be a cornerstone of growth for the company. that's a big ticket item for the bank. also this surprise cut to the dividend. they will be halving the dividend in 2016 and 2017. that was a surprise to many investors, but the ceo saying painful but necessary as the bank takes charges as a result of selling off non-core businesses. staley is former head of banking at jpmorgan chase, and he said barclays is a global investment bank but acknowledged the investment bank is the home to tens of billions of dollars in fines due to misconduct. we discussed many macro topics but staley pledged his commitment to restore the integrity to barclays, put an end to these fines and shore up confidence in the european banks. >> if this bank fails or causes a recession, you pay for that under new law for reckless misconduct. you could go to jail for that. is that something you think about? >> sure. sure. i think those who have the authority to manage these large banks need to take -

mark: exiting africa, a good or bad move? >> barclays are arguing they cannot get the full it's with this unit having been only a minority shareholder and it would only be valuable in minorities hands to her that is part of it. they wanted to keep it. make it work with the latest rules and regulations. is it because they slashed dividends? >> it is in response to an unexpected slashing of dividends in half. the prices have actually gone up. they liked what he has done today. there are two stories here. sees hard for investors to where the growth will come from. we have to see an approval in the general environment. vonnie: if he does indeed ditch the other units, quickly, will barclays be able to outperform credit suisse and deutsche bank? seeing the ones that get dirty work done quickest 10 to be favored by the market. way ofseeing a good running down the other u.k. based vendor, which had historical problems with the investment bank. be seen howo quickly the ceo can actually get their assets out the door. mark: when will we be done wit

barclays says there's no short of buyers for its stake in the africa unit. credit ratings were downgraded once it became known once it became known barclays was looking to sell. we had a higher rating than all the other bankers but we do not rate money overseas. in the local market, that was discounted. mark: tomorrow, we will hear from the barclays chief executive. that the latest business flash. vonnie: prosecutors in the u.s. are looking into a art scandal involving europe involving billions of dollars in dealers -- billions of dollars between a dealer and art collector. let's bring in our financial crimes reporter for bloomberg news. this is a major scandal in u.s. prosecutors are looking into it. tell us who this is. a well-known art dealer and has become significantly more well-known over the last year. they have been allegations levied against him in monaco as well as france by some of his clients, particularly one of his clients who is a russian billionaire, that he was possibly misrepresenting the price of paintings bought and sold as an intermediary

no lack of interest in barclays seeking a stake in south africa's third-largest lender. announced plans last week to reduce its 62.3% holdings to less than 20%. >> i think week keep emphasizing there will be things regulars look at, the long-term stability in the bank. you want someone who is a long-term investment, who is stable. and i think those are the things that regulators, and ourselves and management, look at. nejra: we will be speaking live to barclays ceo here on bloomberg. and that is your bloomberg business/. thanks very much. let us turn our attention to china, consumer prices rose last month since the first time in 2014. the biggest rise in inflation pushas the lunar new year food prices higher, as non-food prices remain tepid. n joins us. good to see you. is this increase in cbi sustainable? with a lot of data in february, there is a one-off factor. enda: good morning. indeed, all about the chinese new year. as the consumers rush to get the pork and vegetables in time for the celebration. there is also quite a cold snap in january during that time. all tol

one of the major ones is how confident is barclays in the earnings outside of africa, outside of the small investment banks? it appears that not many people are. francine: can you draw parallels to credit suisse? this is a bank under extreme pressure, that needs to shrink, but it is also doing it at a time when the world economy is not behind them. stephen: well, today the ceo warned that the first quarter investment banking would not be as good as last year. this seems to follow a trend of disappointing strategy updates from european bank ceos. we saw it happen at credit withe, at deutsche bank, double-digit share drops after the ceos unveiled their new plans. it shows the enormous difficulty of trying to downsize and functioning and profitable investment bank with the macro environment is just terrible. tom: stephen, i want to get to chairman greenspan and his thoughts on negative rates, but first, who does barclays compete with? we talked about lloyds the other day. i get what they do; i don't get where barclays fits in with the new banking world. where is that? stephen: barclays

. >>> former barclays bob bob diamond is seeking to buy the bank's africa unit. diamond could face competition from france and china. of course, we learned there's not an immediate buyer on the cards, but they're looking to sell that business. >>> federal prosecutors have moved to dismiss the indictment of chesapeake energy founder aubrey mcclendon as expected following his death earlier this week. mcclendon died in a fiery one-car crash the day after being indicted. the case against the former chesapeake ceo is expected to end. a law enforcement source telling cnbc the justice department's broader investigation into possible collusion in the oil and gas industry will be ongoing. >>> some stocks for you to watch today. it's official. samsonite has agreed to purchase tumi holdings for $1.8 billion. they say it will help them expand into the high-end luggage market. >> look at that spike yesterday. >> exactly. >>> also in deal news, amc entertainment has agreed to buy carmike cinemas. it would make amc, which is chinese owned, the largest theater operator in the u.

barclays, once stopped to to watch cap indicated in london. the stock is plunging 10%. it cut its dividend and announced plans to sell its africa business.xt to patients with all the changes and restructuring the business. stocks down 10%. u.s. indicating broader averages as well. dow industrials open 130 points. nasdaq and s&p positive to the tune of 1%. teachers higher after the new york fed president said he sees downside risk to the u.s. economy potentially present in the federal reserve from raising interest rates further. aaa reporting gasoline prices up for a seventh day in a row. first time since november. so fun watching all the action right now. good morning to you. >> good morning, maria. rising gasoline prices, looks like spring is coming early. we've seen the last couple weeks and we are cutting back on production right now. but margins are poor and we will go into early maintenance. a head start on the summertime blends of gasoline coming up very quickly. that means we've probably seen the bottom and gasoline prices. the other thing that drives at gasoline prices as higher oil prices up over half a dollar today mainly becau