Euro may not survive. Can draghi continue to do whatever it takes . The ecb meets today. He Deutsche Bank is set to continue job reductions even after cutting bonuses for senior staff. Francine switzerland, theresa may mates anchors. Her europeter speech. We will hear from her right here on bloomberg at 4 30 p. M. London time. A brexit exit is. It is preparing for the u. K. To leave the eu. We will be speaking to avoid like fine. The german reaction to the ecb finance minister, speaking to bloomberg following the Central Banks decision. Welcome back. This is davos. It is a day earlier. Aam delighted to kick off conversation on real estate. We just look to the u. K. Chancellor, Philip Hammond. We were trying to figure out what brexit for job losses. One person who is watching this changing of the guard. Cofounder of soho china. Thank you for joining us. You have great global perspective and you give us a unique insight into the chinese market. How do you see real estate going around the world, are we going to pick up in u. S. Real estate and the deafening in u. K. Real estate . Yes i spent a few days in london trying to understand the Brexit Impact on u. K. Real estate and trying to understand what is the reduction for Financial Service companies in london . And then i can translate that into square footage. Im hearing different numbers. Some people talk about 80,000, 85,000, some people say 10 , 5 . It is a little unclear what it is for sure that everyone is thinking the number will go down. O how and when down . Ng well property go you can count how many cranes in london in the city. You know how many square meters are coming on the market. You need to understand what the demand for that is, if it is an aggregate going down that is no good for leasing or for rent. Francine will donald trump be able to reflate and get back these animal spirits which may give a boost to real estate . Guest real estate in the u. S. Is the opposite. The mood in the u. S. Is so upbeat. The stock market come best goes up and people seem to be happy. People are talking about the reduction of corporate tax, how does that translate into earnings and it should translate positively. Therefore the stock market has gone up. It is a very different scenario, a different spirit in london and new york. Me about thek to chinese property markets. There are concerns doubling in that market also linked to outflows. Give us an update on what you are saying on the ground seeing on the ground. Guest china had another good year in real estate. Relativeways you see price goes up and the government would come up with a strict control on the price. So no surprise much words the end of last year, the government came out with very strict controls. This year we will continue to see this battling between the markets, the government is trying to control it by increasing the down payment of the property purchased. You continue to see this battle. In china. Francine will it be much more volatile than we will see fluctuations . Guest the volatility is not that strong. Now we know that. It is already control. The market will continue to push. Francine talk to me about fundraising. Facing aevelopers are dilemma on how to raise funds. How do you see it . Guest you probably saw that since january 1, china has a stronger control of capital outflow than in flow. Because to stabilize the renminbi exchange. That has put pressure on the companies that have crossed crossborder lending or borrowing. By a chinese company, if i the u. S. Dollar offshore i need to think about how do i get my renminbi back to repay the loan. You have a control on the flow of the capital, it makes the conversion much more difficult. And therefore some of the lenders begin to worry that what does that mean, with a bit late be delayed, would there be default . balance the corporate sheets are strong. If anything it is the technical control of the capital flow, not so much the reflection of the corporate balance sheet. Francine your president was here giving the opening remarks. The first time we saw the chinese president show up at davos. Are they being a little bit protective and more protective and china feeling the world stage . Yes i have seen the biggest chinese delegation ever and i think that people, the chinese are very happy that the president came and gave a very proive propyl fed localization speech and reaffirmed their commitment to globalization. No matter what and in spite andhe Election Results globalization will continue. Where so much connected today. Ist coming to davos reaffirming. Francine thank you for joining us. A quick reminder, we are speaking to a lot of ranking ceos and we will speak to would and the u. K. Prime minister, theresa may. Interesting lineup. Thanks for that. Lets take a look at where european futures are pointing. Ftse andins for the cap futures. It looks like markets are set ,or little change this morning at least right at the open as we await the ecb decision. The survey calls for no Actual Movement but bankers are watching, investors are waiting to see if we will get more of a mario draghiout of as the storage and seems to grow. Janet yellen seemed more confident about the u. S. Economy when she spoke in the u. S. Last night. Guy let you take me to my gmm. ,he dollar is beginning to firm Mohamed Elerian thinks she was quite dovish. The dollar gaining a little more traction, that could account for why the European Market is picking up a little bit. That probably is the takeaway. What youre seeing in the screen. The dollar index up by. 2 of 1 . Lets get the bloomberg first word news update. Heres Juliette Saly. Juliette the chair of the u. S. Federal reserve said the u. S. Economy is close to the objectives of full employment and stable prices. Speaking of a night in san francisco, janet yellen said she is confident it will continue to improve and it makes sense to reduce the level of Monetary Policy support. I and most of my colleagues as a last month feel the members of the fed board in washington and the president of the 12 regional Federal Reserve banks were expecting to increase our federal funds rate target a few until by the end of 2019 it is close to our estimate of its longer run neutral rate of 3 . Juliette Deutsche Bank said that job cuts will continue even after it cut bonuses to senior staff according to a person with knowledge of the discussion. The person that another person said managers have been asked to identify the bottom tweet percent of performers in preparation for possible cuts. Declined to comment on specific job reductions. Goldman sachs may cut its london to 3000 workers while transferring some to other locations as it prepares for a germanccording to newspaper citing unidentified people in the financial industry. The report comes a day after hsbcs ceo told bloomberg that Trading Operations generating 20 of revenue for its Investment Bank in london may move to paris. A spokeswoman for Goldman Sachs said it has not made any. Ecisions two weeks into the First Agreement to cut production in a decade, top Officials Say sentiment is so far, so good. To secretary general spoke bloomberg at the World Economic forum in davos. We have seen demand rising steadily. Efforts are being made by all the 24 participating countries in this new broad platform for producing countries that can thats making tremendous efforts to meet their commitment. Europe needs to address agreements during the rise of nationalist leaders or they region strong economic ties will break. Jamie dimon was speaking to bloomberg at the World Economic forum in doubt most davos. The eurozone may not survive. That is a very complex thing. It is a longterm pessimistic view. Unless they change. Unless they change. Juliette global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy and matt. Guy thank you. Were back at the World Economic forum at davos. The we have jeff staley, ceo of barclays. Good to see you in davos. Primerld heard from minister theresa may. She will be here today. One of the things that you are telling clients is that you are committed to helping the Prime Minister with the brexit, what exactly does that mean . The people of the United Kingdom voted and i think the Prime Minister articulated very well in her speech what they are looking for. The laws are written to be executed within their british judicial system. The democracy of britain to be preserved by the parliament and with we have to respect that. Barclays is a british bank. We have been in the country for 300 years. We are committed to doing our part to help the u. K. Come out of the brexit decision as strong as it can be. K how can you help . Guest barclays is a Major Institution and a major bank. Plus close to [inaudible] ghost through the Payment Systems of barclays. They are committed to writing credit to british consumers, protecting the Cyber Security of data across the Financial System but also dealing with governments around the world, particularly the European Union to keep london connected to europe. We are the largest underwriter of european sovereign debt. When the governments of france and germany and italy raise debt, the bank they turn to is our cleat. We want to continue to do that, to help the european banks manage their own debt, sovereign debt. We want to stay connected and in turn help the city of london and great britain. Francine you must be worried that inflation if inflation is too high, if businesses have extra tariffs, that hurts your quality of what you are lending to. Ofst the longterm impact is not my own view is it going to create an economic shock. Whether we lose 10 or 15 basis points per annum for some time is something that will have a price. But we hope like the Prime Minister does that the entire world right now is taking a new look, the you u. S. And u. K. To europe about trade agreements. The pacific trade agreement did not go through. We help like a lot of people that the world continues to be integrated as an economic matter. Once the political rhetoric settles down the u. K. Can negotiate trade arena arrangements that are beneficial for europe and the u. K. Francine i had a lengthy interview with Philip Hammond and he was at pains to pains to reassure me they are a priority. Do you think they will be in any negotiations . Ministere prime mention the financial industry. I had a great opportunity to meet with the Prime Minister. They are committed to the city of london but more than that, it is difficult to move a Financial Center like london to another location. Corporations across europe, they have cash operations in france and germany and the u. K. They decide where they want to apply their cash and if they want to manage their Interest Rate risk, where do they want to do it . I do not think that governments are going to preclude a Government Company from managing its liquidity in the most beneficial place. Right now that is most likely london. I do not see why that will change. Erik your schedule to meet with the Prime Minister, what is going to come out of that meeting . What is unclear from the speech that you need to take up . Guest this is going to take a fulllong time to get clarity that the banks and corporations and investors and people want to have. Erik are you going to get reassurances from her . A twoyearle believe cliff is not helpful for anyone. You cannot function with contracts that go beyond two years if there is that cliff. Talking about transitions and phase ins will be important. I think we cannot lose sight of finance isat important for everyone. Issue betweencal the eu and the u. K. , i do not believe ultimately that either fleet disrupt the free flow of finances in a way that jeopardizes their economies. Francine i see a problem of timeline. You start negotiating guest she was talking about transitions and phase ins. This will take a long time. The transition could take a long time. If you are a ceo you can need to make a decision now. You cannot tell people you are in a new bank in langford. Guest banks are beginning to take steps to have the option to move certain activities are certain booking locations if they need to to meet the new trade agreements tween the eu and the u. K. Subsidiaryull bank in ireland. Right now we have a branch in frankfurt, it has salespeople, traders, it is staffed today, it was staff before brexit. The ranch in frankfurt is a branch of our bank in london. There is a possibility that we might have to move, that branches connection to london to that branch being our subsidiary in island ireland. Same people, same traders, you have to book in ireland as opposed to london. That is not a wholesale move of our capability. Erik if you could qualify it, how much of a disruption might it be to your business . Meeting, if she is not as responsive to the concerns you are raising, howd disruptive could this be to your business . Guest if rational minds prevail, and they will, we will get an agreement between the European Union and the u. K. That will be no more disruptive than what barclays had to do in the United States, creating a Bank Holding Company to exercise our Business Activities in the United States that we did last july. There is uncertainty which no one likes. But i do believe the system will come out more rational in that there will be some movements, we will have use our offices to book certain traits but it will not fundamentally challenge the importance of london as a Financial System center for europe. Francine are you expecting more job cuts or more cost cuts in the Investment Bank this year . Guest we embarked on a new strategy where we were going to restructure the bank, we have a core bank which is profitable and a noncore bank. We have now signed a definitive Sale Agreement on every entity within that noncore business that we want to close. We have made great progress in reducing the risk rated assets of the noncore bank. We will close noncore in 2017. Where talking months and quarters, not years. Once that noncore is done, we are done with massive layoffs. Where the bank we want to be, we look forward to the future, we think our core bank did a good job in 2016, we feel we are wellpositioned. Francine you could start hiring that this year in that unit to increase volumes . Guest we will manage our bank to generate the turn returns for our shareholders and what our customers want. We like where we are today. Be to runce to the bank status quo for a while. Counterpartss. Have put up some pretty extraordinary numbers particularly when it comes to trading. What are conditions like for barclays, are you enjoying the same uplift that we have seen with jpmorgan, oldman, citigroup, they have had numbers 30 and upwards. Thes we cannot comment on quarter. We gained market share in the u. S. , our volumes were up significantly. For the first three quarters of howr i like our in our Investment Bank performed. Our revenues were up, our revenues to risk ratios were in good shape so i feel good how the bank is positioned. As the Financial Times said that her look even smart. Lets hope we stay lucky for a bit longer. Francine make me smarter about how you see the World Economy and markets, are we going to see a lot more volatility, is it going to be binary markets as we figure out the reflation and america and what happens with brexit . Guest the general reasoning is most likely the new administration is going to adopt a fiscal stimulus package. I think there is a sense was the Unemployment Rate below 5 will asrt to get wage pressure yellen said yesterday, the fed probably will have to move more quickly in terms of raising rates. We will see that, i think that europe. Ll over into there is a sense that right now, the economies are beginning to slowly grind to a higher growth rate which will be better hopefully for all of us. Including barclays, we want to be open for business and providing credit and hopefully twice 17 is a reasonably good market. 2017 is a reasonably good market. As iss important for us the rising rate environment in the u. K. Just a few months ago we were talking about banks having to live with zero Interest Rates. I had not heard zero Interest Rates mentioned once and davos. There has been a very significant shift in the outlook toward Interest Rates. If you look at 10 year gilts are or 10 year treasuries, getting the rates up is great for think profitability. Francine thank you for joining us. You, i will handed back to in frankfurt. Several interviews and theresa may. Matt thank you. Will toss to Juliette Saly for business flash. Juliette according according south korea has turned down a arrest s arrest to request to arrest jay y. Lee. The allegations against the heir to the countrys most powerful country linked to a corruption scandal. Providedenied Financial Aid in return for an