them.go through staley, 2.8% against. if you include those who them are for% of staley.mber if you are jes staley and the board? >> in the sense that if it was below 50, he would be out of a job. there will be a slight sense of relief. i don't everyone -- anyone thought there was a legitimate butce of him going today, 14% of shareholders abstaining from your reelection as they await the regulation from the whistleblower scandal is certainly not a great result. last year, he got 99%. the body'sf recommended shareholders abstaining until we get the results of those regulatory investigations. that is the key, he still may lose his job. came from the agm earlier in london where the chairman, john mcfarland, is in charge of his future, and gave his public backing. he said something along the lines that if you jump a stop sign and don't cause an accident, you only get three points on your license, they don't take it away. that is how he says the board is looking at this. a misstep. fortunately, staley never identified the whistleblower, which would have been a bigger deal. cer

what is it that jeff staley needs to do at the bank?estructure the bank which he is almost finished doing and needs to find ways to generate a return on equity and a return on growth. that is what is important to a the employees and maybe the shareholders. vonnie: and maybe take 10 or 15 minutes to do a compliance online course as well. thanks to bloomberg's erik schatzker. mark: battle of the charts, it is friday, the perfect day to take a look at the purchasing power of the big mac versus nerd -- nonretail -- i will say that again -- it is fry-day. this is bloomberg. ♪ vonnie: it is time for our global battle of the charts where we take a look at the most telling shards of the day and what they may mean for investors. charts of the day and what they may mean for investors. u.s. makes athe trade deal for china which gives to. beef producers access chinese markets and that got me thinking about two things, burgers and purchasing power. says relative goods should cost the same. is that true? we decided to use burgers as our basket of goo

and an exclusive interview with barclays ceo just staley. what he -- just staley. staley.ck in on markets. it is red. earlier inas red as the day. down because of disappointing earnings from retailers, but we have bounced back to some extent. the fix is higher today. it is still suppressed by historical levels. there is concern about what that low volatility means. we are seeing high volatility when it comes to retailers. macy's down 16%, the worst single day for macy's going back to 2008. it is trading at its lowest since august of 2011. the company reported same-store sales were worse than estimates. we have been talking about the face of retail. ,ordstrom's reported numbers and kohl's were lower than estimates. anything having to do with retail is lower today. the dow has come back the most from its lows of the session. we have some out performers within the dow, including caterpillar. bank of america raising the stock to a buy. merck getting a boost after one of its drugs was added -- got approval to be added for diagnosedfor newly lung tumors. exxon mobil raising, alo

staley has been supportive. whether a decisive by theresa may and the conservatives in the election coming up less than one month from now would be better, if you .ill, for the u.k. economy the uncertainty of a weak mandate gave me a strong answer. let us listen to it. >> obviously, a strong economy is good for barclays. helpsrtainty investment, which is your for economic growth. we enjoy a very constructive dialogue with the british government. jes: and you know, as i said, i have been very encouraged by the openness, the candor, the exchange of ideas and information, but whoever is in the british government -- what is important is that barclays stands behind the u.k. so certainty, do not mistake that for jes staley, an american wanting him to mix affairs ofthe british politics. for him, certainty is a good thing for the british economy, for barclays. what remains uncertain, going to the beginning of our conversation, is the future of this investigation into the whistleblowing issue. it is the first test for a

it is no exaggeration to say thatjes staley is in exaggeration to say thatjes staley isina exaggerationional life. the most serious strike against him was that he tried to uncover the identity of a whistle—blower. he hired an old friend from jp morgan days. someone sent a letter to the board members questioning the personal conduct of the person who was hired and the relationship with jes the person who was hired and the relationship withjes staley. he said it was an honest mistake and he looked into it. hr said it wasn't a whistle—blowing incident. he thought he licence to track down the person who sent it. he was wrong and this has been referred to the financial conduct authority. those are sub divisions of the bank of england. some shareholders think he might be infora rough some shareholders think he might be in for a rough ride with them. there is no rules about how senior managers are supposed to behave and these question marks about his judgment and his temperament are going to be taken very seriously. now, as far as shareholders go, if it was just down to them, i think that he w

staley has apologized for trying to unmask a whistleblower. told erik schatzker, becoming involved was a mistake. >> it's important that people feel comfortable to contact the bank or the regulators with full protection to talk about conduct issues at barclays. erik schatzker joins us now on set. good morning to you. this raises questions about the , witheblowing scandal limits around what he can say, but he came out white strongly to defend himself yesterday. >> as you would expect because he still the ceo in he has the support of the board. howissue going forward is long is this going to drag on? he was clear that he and barclays are at the beginning of the senior managers regime theess being run jointly by prudential regulation authority under the aegis of the bank of england. i did not get the sense that the interviews had taken place thus far, so it could be months. he was unwilling to attach himself to a date, but this issue will hang like a dark cloud over staley and barclays until it is resolved, and beyond that, and even bigger questi

staley spoke to erik schatzker. some things going on an front of the chief executive officer of a bank with the complexity of barclays. there are decisions made every single day. a colleagueprotect who was a vulnerable from a malicious attack. but i should not have gotten involved as i did. that was a mistake. fed president has called on his college to make three more hikes this year and shrink the balance sheet to avoid overheating the economy. he still expects the bumper growth.e opposition, the labour party's pre-election pledges have been leaked. they include plans to re nationalize railways and energy companies. a spokesperson says they do not comment on leaks, and the manifesto will be finalized at a meeting on thursday. the european commission has sent a letter to the u.s. government regarding a possible ban of electronic devices on flights . they may announce a laptop ban on european flights this week. german business weekly says the european commission expects an announcement in the coming days. banned cert

people have tried to draw comparisons between jeff staley and john stumpf.stumpf was ejected from wells fargo by failing to oversee not a criminal enterprise but something close to a fraudulent enterprise. he wasn't directly responsible for it but bad things were happening inside the bank. what jes staley was trying to do was defend somebody whose integrity he felt was being maliciously maligned. he still is an apologetic for wanting to do that. it's the manner in which he went about it that was wrong. very different between what's happening at barclays and what's happened at wells fargo. mark: erik schatzker, great to see you in london. more next on the acting fbi director andrew mccabe before a senate committee right there. the end ofking at the dni talking about worldwide -- the headhe head of the dni talking about worldwide risks. we've heard from the chair of the committee, richard burr, and the vice chair, democrat mark warner. this is bloomberg. ♪ vonnie: a senate intelligence committee hearing where mccabe is -- andrew mccabe is set to field question

all ballots were pro-staley. is that enough of a stamp of approval for staley or not?> i think that is enough for now. there has obviously been some serious discontent registered. i think he will have to continue to respond to allegations about whistleblowing and respond to shareholder concerns in the coming months, especially as the investigations are wrapped up pending the outcome. mark: are you guessing or projecting that staley will remain? andrew: for now, it seems he is safe. who can say what will happen in the future. we were not calling for him to be ousted from the board or from his role as ceo. in fact, he seems to have brought support from shareholders from a strategic threshold. the concerns about his -- the concerns are about his judgment and the was a blowing under investigation. did not call for shareholders to abstain. why not? andrew: we thought the strategic rationale for leading the leadership are barclays is sound. there has been an error of judgment, or there seems they may have been an error of judgment in the whistleblowing incident. but from our

manus: we have got to talk about barclays and jes staley, facing shareholders today.is at the annual general meeting. his first public meeting with investors since the whistleblowing scandal that put his tenure at risk. to have a chat about this is michael moore. he goes in front of the agm. -- much -- these are british are very american affair. mom and dad can turn out for them. how much handwringing is he going to get? has he had the institutional handwringing behind closed door? michael: there are two avenues for shareholders to express what they feel beyond the meeting. there is focus on his own themction, which you had saying shareholders should abstain from that vote until the regulatory investigation is done, which could put pressure on that vote and you have the vote on the pay structure for the executives, including staley. those are the votes we will be watching. most people don't expect them to lose on either of those votes, but the margin of victory there is something to watch for. then we will see on just his commentary, how he responds to some of the que

the awarding to go dawn staley , dobbins tech grad led game cox to the first ever national champion shipbasketball. the award goes to the individual or team that has done most to reflect credit on the city of philadelphia this will be dawn staley's third time winning the want make's ward our own don bell will mc the event. >> that is awesome and so deserving. after she won she went back to dobbins, spoke to the students there, so well deserved. >> great ambassador for the city of philadelphia thanks, pat. >>> coming up next half an hour of "eyewitness news" we have an important car seat recall to tell but details in a live report from wall street , jan. >>> a congressional g.o.p. candidate from montana is facing charges after an election eve altercation, coming up what reporter says the candidate did to him as he recorded the entire thing. >>> then an update to the story we told but about last week police have a suspect in custody they say is responsible for hit and run school bus crash, katie? >>> rahel, as we are looking ahead to the holiday weekend it appears as though we will have we

staley says he is not a vindictive person.anks need to protect employees a speak up about misconduct. respect the regulatory construct in the united kingdom. the bank of england, the fca, executives should be held accountable. it is asenior managers, very important piece of regulation in the united kingdom. have got here, one of my goals was to be very transparent with regulators. in many ways, we are partners in trying to avoid the next financial crisis. it is a very constructive dialogue between barclays and the bank of england and the fca. it is very important to us. i appreciate the framework here. we will see how this plays out. if the unthinkable happens, and you are deemed unfit to run barclays, does the bank have a succession plan? >> i have the full support of the board and the shareholder vote today. let's let the investigation run its course and see what happens. >> what i still cannot understand, and a speak for others as well, what would motivate you to exercise bad judgment? there are so many things going on with

today will be the first time that mr staley has publicly faced shareholders since then — and there'scade. the firm said it sold more cars in the year to march 2017 than in the previous 12 months but that higher costs and currency fluctuations hit results. the profit of £12.4 billion was down 21% from the previous year. dividend cut and profits alert sees talk talk stock price tumble 17% earlier today. the broadband company reported a £133 million pre—tax profit for the year, up from £107 million for 2016, but said it expected earnings to fall again this financial year as it invests to attract new customers. barclays shareholders are to vote on whether to re—electjes staley to the bank's board, amid controversy over his role in a whistle—blowing affair. it will be the first time mr staley has faced investors since it emerged he attempted to find out the identity of a whistle—blower at the bank. he has apologised and referred himself to regulators over the issue. however, some investors say they will not support his re—election at the firm's annual general meeting. that general meeting

staley slips up. responded toboss emails for a break -- for a prankster pretending to be the chairman. i'm guy johnson alongside tom king. been quite a week. quite a week. had i'm not sure there is a correlation between your being here. tom: it has been an exhausting week. i cannot remember a week like that. we have got more reporting on that to all of "surveillance." there is still a lot of other news out there including the german election. to the big one. let's take a look at what is happening with the data. these are the numbers you need to know. the stoxx 600 barely budging. tom, do you know what? we have had the biggest info into european equities on record this week. an in some ways, it has been incredible week but the equity markets have not reflected it. the german 10-year is not moving very much. tom: maybe an oil lift. guy: up by .2%. tom: i decided to do a data check. there is not much going on. that in itself is news. let me get to my chart. a bloomberg chart on the atlanta gdp. for those

dawn staley. the dobbins tech grad led south carolina to the first ever national title this will be staley's third time winning it, and happy to say i will mc event and cbs-3 is a proud sponsor. >>> game four of the nba eastern conference finals last night cavilers, looked out of sorts against celtics and that lasted for two quarters. then irving went off, he finished with 42. lebron james shaking off four, first half fouls, he chipped in with 34. cleveland wins, and they will try to wrap up series tomorrow night in boston. >>> in the nhl, we're looking at another, game seven, senator beating the penguins, two-one last night in ottawa, eastern conference finals. the two hook up, again tomorrow, in pittsburgh, pence are looking for back to back trips to the stanley cup finals. >>> and despite all that, the fanatic, he is always having a good time. last night that is in the rockies announcement booth. he is showering them with popcorn, and, now, fanatic just do that, rockies on the field. >> yes. >>

today will be the first time that mr staley has publicly faced shareholders since then — and there'ss the boss. japanese car giant toyota has seen profits fall for the first time in half a decade. the firm said it sold more cars in the year to march 2017 than in the previous 12 months but that higher costs and currency fluctuations hit results. the profit of £12.4 billion was down 21% from the previous year. shares in telecoms firm talktalk are down sharply after the firm cut shares in telecoms firm talk talk are down sharply after the firm cut dividends and warned about profits. at one point, shares were down 17%. it's warned that earnings may fall again this year because of the cost of attracting new customers with offers and discounts. alison brittain, chief executive of whitbread, has been named as veuve clicquot‘s business woman of 2017. she is a career banker whojoined whitbread in 2016 becoming one of only a handful of women who run fitzy 100 only a handful of women who run fitzy100 films the veuve clicquot business woman award was created in 1972 as a tribute to madame clicqu

it would be good for jes staley if robust discussion.f things like remuneration with bank bosses. what are your thoughts on all of this? well, there is no question this? well, there is no question this whistleblowing is incredible is serious. whistleblowing is an incredibly important part of our financial markets work so that conduct regulators in particular know what is going on inside banks. i think what we have seen here, jes staley has said it was an honest mistake and he didn't know the rules, so on and so forth, we have shown that no matter how thin you you are in a bank, how experienced you are in a bank, how experienced you are, it is important to remind yourself of your roles and responsibilities, and that needs to be led by the board as much as by ceos. and on the issue of pay, whenever i talk about results from companies and we talk about bonuses that the bosses are getting, often a lot more than other people in the company, higher multiples in terms of what they get compared to other stuff, do they deserve the millions they g

staley slips up. the barclays

david: what about the notion of that jes staley talked about?s there a chance or likelihood that they will have to move around think legally and have subsidiaries and do things that are formal? or is a practical matter that the operations will not be affected? karen: i just don't know. i think probably, london does remain a core center but david is probably better to ask than me. i am not in these deep discussions. coming from north america, london is a safe place to do business. i came from canada. so there is an issue that you lose an influx of people if they are not connected to europe so it to make sure it isn't too messy. as the refined details, i don't think even the ceos of many of the banks have a clue about what will happen. we don't how to reason they will react. hard, soft, in between? what does macron mean? what will happen in germany? uncertaintiesany that could impact the u.k. david: let third over to you, karen says you know better than she does. the uncertainty, ceos deal with uncertainties and they provide for a range of opportu

speaking today, mr staley apologised to shareholders.ee you. let's pick up on the thoughts from ba rclays pick up on the thoughts from barclays because we have seen a lot of the big banks, haven't we, put the contingency plans in place and say, "we nood to have a plan for brexit." barclays says "we're not planning to move anyone." it is in contrast to what ba rclays were saying lastjuly. contrast to what ba rclays were saying last july. they contrast to what ba rclays were saying lastjuly. they said, "we may well need to deal with the issue about running our businesses in your and maybe we will need to run some operations overseas." remember ba rclays, a lot operations overseas." remember barclays, a lot of barclays operations are international. so they saw this as being a real issue. now, 12 months later, it seems to be less of an issue. they seem to be co mforta ble less of an issue. they seem to be comfortable that there is a significant proportion of the business that can continue to run out of the uk. it's a good news story as well.

staley responded with praise for mcfarland. preliminary talks to merge with t-mobile.der, softbank, have been in contact with deutsche's, calm -- deutsche telekom. that is your bloomberg business flash. alix: thank you. joining us from princeton is alex sherman, who wrote that story. it has been three years sprint has had this love letter to t-mobile. what stage are these negotiations in? alex: we are still in the informal stage. what does informal mean -- we do not know. but we know that banks have not been hired across the board yet. when things become more formal, each side will pick banks. this will be a wall street bonanza if this happens. softbank will use a bank, sprint will use a bank or banks. bank or will use a banks. georgia telecom pull use a bank or banks. because softbank owns 80% of sprint. mosteutsche telekom owns of t-mobile. so all of wall street has been jockeying around this, thinking these sites could come together. we learned softbank and/or to telecom has had at least informal talks since the wireless spectrum quiet period ended. wireless compani

speaking today, mr staley apologised to shareholders and also revealed the bank has no plans to shiftbout profits. at one point, shares were down 17%. it's warned that earnings may fall again this year because of the cost of attracting new customers with offers and discounts. japanese car giant toyota has seen profits fall for the first time in half a decade. the firm said it sold more cars in the year to march than in the last year, but higher costs and currency movements affected profits. they fell 21% to £12.a billion. talktalk shares have fallen almost 10% after the broadband provider cut its dividend and warned profits will fall. talktalk reported a £133 million pre—tax profit for this year, up from £107 million for 2016, but said it expected earnings to fall again this financial year as it invests to attract new customers. the firm suffered a major hacking attack in 2015 which saw its profits halve that year. michael hewson is from cmc markets. it is nice to see you. your take on this. what do you make of the figures because there is clearly a lot at stake for talktalk. they are

is going to dawn staley, she led south carolina to the first ever women's national championship.his will be her third time winning the award, i'm m c of the event and cbs3 is a proud sponsor. >> thanks, don. >>> special honor for a lo >>> new tonight, recognizing students and teachers for outstanding achievement in science, technology engineering and mathematics >> the awards were handed out at the cbs broadcast center, decided on by the philadelphia chapter of the pennsylvania society of professional engineers, the engineers club of philadelphia and the einstein healthcare network. first place honors in several categories went to lionville middle school, germ academy, hallahan high school and the masterman school. chrit can happen to anyone.s a help is within reach. all you need to do is ask. vanessa: i was a full-blown heroin addict, selling my soul to get high. but i got help, and you can too. james: i just know i didn't want to feel that pain anymore. i got help. you can too. aj: most people think addicts are beyond help. when i see an addict, i see hope. chris christie: don'

it's been a long week for barclays‘ ceo jes staley and it ends with him fooled into replying to an emaile thought was sent by the bank's chairman but was actually from a prankster. we'll tell you what he wrote later, but first we want to know have you ever sent an email to the wrong person? just use #bbcbizlive. hello and welcome to business live. we start in europe's economic powerhouse, because in the last half hour germany has released gdp figures for the first three months of the year, and they show an economy that's accelerating. it grew 0.6% on the previous quarter. that translates to an annual rate of 1.7%. it's being fuelled by global demand for the country's exports, like cars and machinery. but it's not all cause for celebration. let me show you why. last year germany clocked up its biggest ever trade surplus, that's how much more it exports than it imports. at $275 billion, germany has one of the biggest trade surpluses in the world. it's a source of tension with its neighbours and allies. look at how much more germany sells to these top economies than it buys from them. the u

is going to dawn staley, she led south carolina to the first ever women's national championship. this will be her third time winning the award, i'm m c of the event and cbs3 is a proud sponsor. >> thanks, don. >>> special honor for a >>> new tonight, recognizing students and teachers for outstanding achievement in science, technology engineering and mathematics >> the awards were handed out at the cbs broadcast center, decided on by the philadelphia chapter of the pennsylvania society of professional engineers, the engineers club of philadelphia and the einstein healthcare network. first place honors in several categories went to lionville middle school, germ academy, hallahan high school and the masterman school. . >>> update to the breaking news, the stand-off at the cbs on baltimore pike in media, the suspect has been taken into custody. for lauren, don, everyone, i'm ukee washington >> i'm jessica dean. the late show with steven colbert is up next. japan >> announcer: you're watching a paid presentation for veggie bullet, brought to you by veggie bullet, llc. from the makers

. >> we're seeing jes staley coming under pressure because of this whistle-blower incident. i wonder, do you think there's too much scrutiny when it comes to bankers, or are they moving into behavior characterized by pre-crisis behavior? >> i think in any case the situation is completely different. now we can look at the bute chore, the ba future, the banking landscape in a different way. >> thank you so much for your time. >>> in other news, axa says it will float a minority stake in its life insurance unit in the united states. the french insurer said it would bring financial flexibility to its strategy. axa posted a slight miss on first quarter revenues. let's dig deep neither story with gemma acton. investors seemed to like this. >> they do the stock was up initially more, over 2%, up to 2.5% initially. it's come off since then, but it's a weak day for markets. look what's happening here. a lot of confusion last week when a lot of the allianz board was replaced and the ceo was replaced. very clear why axa had done that. now looking at the fact that it's going to be a u.s

staley's position is one for the regulator. >> thanks. following the money. stay on the banks. regional banks are up three straight weeks for the first time since december. kevin, you made it well-known you hated the regional banks on this show. you regret it? >> not at all. you're still down 1.8% for the year. regional bank have a new problem b to start dealing with. it's only a couple of weeks old. many own the debt on energy companies, which we weren't worried about six months ago, but now, with oil under $50, it brings into question the debt. it's all balloon paymenting in 2018. so i think this will become a new head wind for regionals. 18% of swrrj and k is garbage. energy garbage. it will turn to paper. you don't get your cash back and i think it's going to be tested in '18. i hate the regionals more than i hate them. now that i've got to worry about energy debt. >> it's josh. do you think that you're the only one that knows what percentage of the junk bonds out there in america are energy and has done that kind of discounting work or would you agree that the market is is

also been responded to buy imposter.er -- by an a shareholder was criticized who had sought to oust staleyo responded with praise, comparing his skills on the guitar to that of eric clapton. anna: fascinating story. let's get back to the reporting season. ebit forecast was adjusted. the german manufacturer posted net sales ahead of expectations. we are joined by the ceo, guido kerkhoff. welcome to bloomberg. tell me about the visibility you have for the business. where is the confidence coming from to raise your full-year ebit forecast today? >> if you take a look at the numbers and outlook we have seen, based on the intake we saw , especially confirming the industrial side and across all regions where we had a strong order intake everywhere. a record high. that is giving us a clear outlook. and we see in steel materials is confirming on that side as well, driven by the price hikes we saw and that negatively affect our cash flow. on the other hand, on profitability, it is a good outlook for the year. it could be better than what we previously thought. anna: if investors are worried about a

staley has not been having the smooth road in his job at berkeley.oming out that he was recently of victim of a hoax. thought wasail he his boss and wrote back a it was notil, and from his boss but a gmail account. he mixed humor with grit. he mixed humor with grit. how unfortunate. jason: and everybody reads this and especially on wall street, d thinks ooh. scarlet: cringes. julia: and with a grunt told customer as -- and dealing with a disgruntled customer as well. is this a step too far? i'm the last person to laugh, i feel kind of like a killjoy on this one. i'm actually starting to feel sympathy for him. jason: it is hard not to feel some sympathy in this situation given everything that has been going on and also because we are all -- i think that is one of the reasons readers and viewers have responded so much, you look at this and inyeesh. scarlet: the worst thing you can do is not respond to an email quickly enough, the best thing to do is pick up the phone and though.eone so and looking at the culture of the firms we are talking about and we

of all time and musicians that have passed before their time obviously kirk company bane and lane staleyn so many amazing musicians but such an mazing voice. he was 52 years old. so young but nobody sounded anything like him whatsoever. what were your experiences with him. >> i saw him a couple of times with sound garden and audio slave at patriot center. eight years ago at least. but i mean he had a distinctive voice that it was very polarizing you either loved it and appreciated it or just like okay, you know, it's a little strong. but, you know, i mentioned before came out couple of years ago acoustic album did a full acoustic tour him and the guitar and it was amazing to hear somebody up there belting out the grunge scene for years also had had side where he could just literally command a stage just himself. >> temple of the dogs that was eddie vetter and chris cornell, right? >> basically pearl jam. >> basically pearl jam with chris cornell. they had great song hunger strike amazing as well. it's very sad news. he also did a cover of billy jean, michael jackson. >> oh yeah. >> very

>> we will staley from that.ormer continues its slide from first to worst. we will discuss the outlook for energy. from new york city, counting you down to the open. you are watching bloomberg. ♪ ♪ david: this is bloomberg. i am david westin. oil has extended this biggest lost in three weeks as opec got a deal but markets were hoping for more. here is what ministers had to say about the deal. >> we considered options for a higher cut. thatndications are solid the nine-month extension is optimal. opec says it is necessary we extend the level of production based on the november decision for nine months. it seems that can control the and reach us to the target price we have in our minds. >> all studies in predictions indicate the market will be stabilized after nine months. >> i support the nine-month because i think it gives a seeer gestation period to how the reserves are holding up. >> russia and russian companies have voluntary taken the position to adjust production levels. they take these obligations very seri