Talking about this qe policy. The u. S. Hedge Fund Billionaire ray dalio weighed in on the eurozone. We seem to have lost that these of sound but we will be back with it later. My coanchor, Francine Lacqua will be joining us later in the program. She will be bringing us the highlights from that panel. Easy money, tough questions. We will find that these of sound along with the other comments we had. Christine lagarde giving some interesting thoughts on when the fed is going to be raising rates and we were hearing from Larry Summers making sure that Everybody Knows he thinks qe is a good idea and the risk is doing too little, not too much. How does this fit into the banking story . Axel weber believes that the Banking Industry is where the focus should be. Lets focus on the Banking Industry. Joining us now is Anthony Jenkins the ceo of barclays. Good morning. The focus is very much on the Central Banks today. Qe, the big story. Will the ecb deliver and in what form . Is qe the right solution . It is an important part of the solution. If you look at other economies that have pursued qe aggressively, it has helped them out of low levels of Economic Growth. It is an important element of the solution. The market is expecting a massive program of qe. I think it would be unwise to disappoint the market. It is in my view going to happen. It is not the only thing that needs to happen in order to improve competitiveness in europe. Zxel weber. Axel weber, earlier on saying the best way of tackling the problem would be to fix the banks. Is he correct in that train of thought . Are the banks in need of more capital . Is that where we should be focusing the story . The transition mechanism in europe relies on the banks. There is an element of that. I also think europe could learn from what is going on in japan right now. The three arrow strategy. The third arrow, which is about supplyside reforms, getting labor markets to work more effectively, promoting enterprise, that is an also very important element of getting the eurozone economies working. If you look at the u. K. And the u. S. , we are relatively more flexible labor markets. They are able to absorb the impact of the recessions more easily. One of the things that does seem to be generated is currency volatility. As you look at this from a barclays point of view, the swiss franc generated a huge amount of volatility. Is the volatility story one that we have to watch more carefully . Do you expect a lot more of fairly aggressive currency moves as we work out where all these Central Banks stand . Absolutely. The one thing thats certain is we live in an uncertain world. Look at the oil price. Look at stirlingdollar. You have to get underneath. What is the underlying factor driving this volatility . It is a combination of short and longterm factors. The increasing geopolitical instability, a big theme here at davos. Structurally low macroeconomic we are in a long period where gdp growth is going to be in the 2. 5 range. That creates pressures and local economies. The other thing, which you dont see at all, is how quickly technology is transforming economies. What it creates is lots of uncertainty. I think we can expect in commodities, in currencies, and other markets, to see volatility continuing. Thats going to make things interesting for Investment Banks. Lets talk about barclays. You have said the universal banking model is i cant remember the exact quote, you said dead. When you look at this kind of volatility and you feed it back into your Business Model, is an Investment Bank something you want to carry on with . There is two thoughts. Volatility affects everybody. Some more than others. Oil price affects almost everybody. The point for Business Leaders like me is to build resilience into your business, which is what weve been doing over the last two years. Much stronger Balance Sheet much more focused Business Model , all of those things. When i think about universal banking, if you go back a decade or so, and spoke to most people doing my job, they would talk about getting bigger. They would talk about doing everything for everybody everywhere. We are really good at Retail Banking in the u. K. Lets do it somewhere else in the world. The reality is, today, the constraints on their Balance Sheets because of the amount of capital they have to allocate and the investment they have to make in Technology Means that you have to focus. Thats what weve done in the Investment Bank. Weve focused on those lines of business where we have scale and where we can generate returns. I think thats true across all banks. Unless you are good at what you do what i can read through that answer is, the Investment Bank stays a part of barclays but it is a more focused and smaller part of the bank. In fact, i would say the following. Investment banking is an important part of barclays. Personal and Corporate Banking barclaycard, all the Investment Banks have to be good at what they do. They have to be able to deliver returns for shareholders. Thats what i require of all businesses. Im very confident. You are chairman. Do you get a sense that your new chairman shares do you think you will be more aggressive than you are planning for now . Ive known john for many years. I spent a lot of time with him talking through the strategy. I think he feels that we are pursuing the right strategy. The significant part of the transformation of barclays is already underway. I think hes joining at a really good time. I think his experience will be helpful to us in doing what i want to do, execute the strategy. We are in a year where we are going to have a u. K. Election. We see significant fragmentation in politics in the u. K. We dont know what the outcome of that poll is going to be. People increasingly talking about minority government. The experience is not a great one. It creates huge uncertainty. Is that increasingly going to be your base . If you look at your business, it is not great generally for any kind of business. You are absolutely right. Businesses and markets hate uncertainty. I would refer back to the point i made before. This is about resilience. Having the resilience to whether whatever we have to encounter. If you look at what is really driving the fragmentation in the political sphere, not just in the u. K. , but around the world, a lot of it is to do with how citizens are feeling. They feel more comfortable. They are less optimistic about the future. That is causing skepticism about the benefits and a currency benefits and efficacy of business. Many businesses at davos are already doing that. We need more of that. Ask im getting an even split with the ceos im talking to. Im heartened to hear you talk about the fact that the business voice needs to be heard. I see this as about business doing what it is good at, satisfying customers, employing people, generating returns for shareholders. If we can help with things like entrepreneurship, youth unemployment, helping older people get jobs, thats going to help the issue. That is going to help the societies where we do business. Thank you very much indy antony jenkins, ceo of barclays. Earlier, i promised you we would get some news from the conference, from the panel that Francine Lacqua has delivered. We are counting down to the ecb president s announcement from mario draghi. We are expecting a 1. 1 trillion euro debt buying plan. The hedge Fund Billionaire ray dalio weighed in on what europe needs. Forceful qe and forceful Structural Reforms would be what is required. Stay with us on this big day in davos. We will bring you plenty of interviews as we build up to this big event. Talking about some other topics that matter to people who know live from davos in 2015. Francine will be back later in the program. She will bring up the highlights from her panel. Shes been talking to Christine Lagarde, former treasury secretary Larry Summers, gary cohn from Goldman Sachs. We will also be speaking to a chinese ceo on the Property Market. As oil prices come down, what does that mean for the european auto sector . In a few minutes time, we are going to be talking about what is next for air asia. The ceo of that business will be with us very shortly. Stay tuned for that after the break. Welcome back. You are watching the pulse. We are live on bloomberg television, on the radio, streaming on bloomberg. Com. Welcome back. You are watching the pulse. Lets talk to our next guest. It has been a tough month for Tony Fernandes ceo of air asia. Welcome to the program. The first thing to say is, obviously, a very difficult time for the business. You seem to be working your way through it. Is there anything you can update us on . Any kind of news you can bring us . Not at the moment. Weve been led to believe that some of our guests have been pulled out of the hull which is important for me. The main drive is to get them back to their families. That was good news, that the divers were able to extract some of them. We are now hopeful that we can pull the whole hull out. I think there is word that sonar has picked up [indiscernible] the main thrust is to get our guests back to their families. When do you think youll have an understanding of what happened . The cockpit voice recorder is in good condition. We are provisionally asked to be on standby to analyze the data and hear it for the first time. I would imagine over the next three to four weeks. A number of questions seem to have arisen over whether the aircraft should have been writing should have been flying. Ive seen that you said you thought that it was very clear that you did have the authority. Some of this comes through many different types. Obviously, we had approval to fly to singapore. We had approval from the airports, we had rights. It was just an administrative issue. In terms of the procedure, in fact, 60 other flights were involved in that. But there will be no issue with there was some concern that from a financial point of view, that that insurance has been paid out already. Our Insurance Brokers have done a fantastic job. It has already been paid. Insurance has been provided for our guests and their families. Walk me through how this does affect the business. This doesnt stop the business. You carry on flying. How do you change your processes . Do you change your processes . Does this have a meaningful impact on peoples willingness to fly with you . Ive gone on record and said the amazing amount of support weve had. The best way of quantifying that is from your pocket. Sales are up from this time last year which is a remarkable show of support. We havent been advertising out of respect for the families. Come monday, we will probably be making some announced once some announcements. Want to give us an idea what those are . Not yet. But we are moving back. Even though weve been quiet for the last month, sales have been strong. We dont know what went wrong. It would be wrong for me to speculate. For me, safety is not something that you can say you are safe w. You become complacent. From the day it happened, ive been with airbus, with our pilots and everything we do is buy the book. We go through every authorized process. Everything is by airbus methodology. All the equipment we have on the plane is as good as you can get. As i said im sure there are things we can get better at. Until we know the full results but we havent stopped. This is now a crusade to make sure we keep improving and provide the best service. Does it change the way you position your markets . No change at all. We are malaysia, thailand indonesia, and philippines. We are now in india and we are about to start japan. [indiscernible] we have in the past cut back capacity a little bit. All the airlines have been a bit more sensible. For me, the next step is to try to get consolidation, to try to push beyond 49 ownership. As the region becomes an Economic Union and davos has been pushing those messages across banks can own 100 of telecommunications companies. Airlines are the next stage. We continue to push on infrastructure and on Getting Better infrastructure in terms of airports going forward. And obviously, oil has been a big plus. We didnt hedge very much. That is feeding through already . I was talking to tim clark and he said he wouldnt try and destabilize the market, but nevertheless he was unhedged. We are not fully unhedged but we are going to be affected at todays prices half of where it was before. And you use that tactically on the pricing side . Obviously, we are a highvalue airline. We are about stimulating demand. Obviously, when fuel remain where they are, i anticipate them going down. Ancillary income has been a big plus for us. When oil prices were high, i saw that as a great defense mechanism. We are limited in terms of we heard more. So we are a bigger beneficiary than emirates when oil goes down. We built a very good ancillary income, which is now approaching 50 ringgit per passenger. You have some 320s anmd d 330s. Does the lower fuel price change your plans for capacity . We put capacity in the show who is boss. We are now beginning to say, we can go back to a normal rate of growth going forward. So you are not going to defer anymore. You are comfortable with where the plan is now. I think it is galways it is always going to be cautious. Oil gives an opportunity, but id rather take up a normal, steady path. We will leave it there. Condolences obviously for your passengers. I think everybody is very eager and anticipating to find out what exactly happened. Thank you very much. Tony fernandez, ceo of airasira. A. We are going to take a break. Welcome back. You are watching the pulse. We are live from the World Economic forum in davos. The big story today is what is going to happen in frankfurt later at the ecb. The ghost of mario draghi, very much stalking the halls of the World Economic forum. The global elite waiting for the delivery of the ecb decision. Earlier, we spoke to the chairman of ubs and the former bundesbank boss. He is axel weber. He told us what kind of program he things will address europes problems. Acuity program a qe program in my view doesnt address the problem. It addresses the issue of Market Access and sovereigns. Sovereigns dont fund small and medium enterprises. Im up here in the cold because Francine Lacqua has been downstairs with a fantastic panel. Really great thought leadership coming out of that panel. She has people like Larry Summers, ray dalio, Goldman Sachs gary cohn. She is going to bring us the highlights of that. Theyve been talking about the ecb. Some really great conversations taking place. We will bring that to you in a few minutes. Well also bring you the ecb News Conference. That is live and in full at 1 30 u. K. Time. If you want to follow the debate, please join in. Well see you very shortly. Welcome back to the pulse and welcome back to davos. Im guy johnson. And im Francine Lacqua. We are live from switzerland and it is day to. It is all about qe. There is one topic that Everyone Wants to talk about and one man Everyone Wants to talk about, and that is mario draghi. Ive been moderating a panel. They were pretty explosive. And about 10 release ana botin really sticking up for europe and saying qe is needed. I think ecb qe is a good thing. It will compensate what the fed is not doing. It was clear, we had five panelists. Christine lagarde, ana botin, and then three americans. Gary cohn of Goldman Sachs, ray dalio, and Larry Summers. There was a clear divide. It was actually quite good. Who won . Former u. S. Treasury secretary Larry Summers was much less talkative about qe. He was much less positive about the european project as a whole. Qe has already had a significant impact, but thats why im worried. We already had a set of positive developments and the economic forecasts are pretty dismal from here. The kinds of policies we are seeing are already built into those forecasts. I dont think we should make the mistake of supposing that the situation in europe is in hand. My favorite part of the panel was when Christine Lagarde slapped him down, not really for his economic thinking, but for the fact that he was going on too long. We also heard from gary cohn of Goldman Sachs, president and coo. He was talking about the importance of the low euro as a way for exporters to have their impact on gdp. We are in a Global Economy and i dont disagree with this that the prevailing view is one of the easier ways to stimulate Economic Growth is to have a low currency to export against and hopefully create tourism and imports. It makes sense. It was a pretty fun panel. We talked a little about regulators. One of their favorite subjects. Ask they said, we need help from Central Banks, but maybe more help or more understanding from the regulators. Axel weber was making it clear that the banking channel maybe a little hand from the regulators might make it work better. That is probably the key to wha