Hello. Welcome to todays,. Im ross westgate. And im kelly evans. Asias main market shut for the Chinese New Year and large parts of the u. S. Struggling with extreme weather. Digging out from nemo, residents and u. S. Businesses hope to resume to normal business after Mother Nature dumped nearly three feet of snow in some areas. And ben afflecks iran hostage drama argo picks up the best film accolade. Daniel daylewis wins best actor. Were up for another week. We might do what they did and share the love around. I read the reports. Were going to talk about it later. There was no one dominant film. I thought it was interesting that argo won best picture . It was a great movie, but best movie . Really . Is that the lincoln only got sometimes theyre quite clued up. The nominations were very similar. Do you think lincoln would do better than it did. Daniel daylewis picked up an award. Help recap for those of us who didnt catch the whole thing or any of it, frankly, but yeah, britains big film night. Now its time for the u. S. In a couple of weeks. Besides that, plenty of other things were looking at today. Another day, another summit in brussels. Well take you to the latest gathering in cypress today. Egypts opposition parties are calling for massive rallies in cairo to mark a second anniversary. And a secelebration of carnivale. Is the party here to stay . Lots of pressure on brazil with the olympics coming up. And well head to knowcovered boston for a look at how airlines are coping after nemo. Barclays is looking at cleaning up the banks image. Anthony jenkins is due to give a speech on tuesday. Others on the closure and other cost cuts say not expecting sun valley to have a major overall. At the same time, the British Parliamentary Commission on banking stands are set to continue. Steven hester is reportedly on track to receive a 780,000 pound bonus despite other executives had their pay clawed back following the libor rigging scandal. James joins us now. Is there any wore to ring out of this lack of a libor issue . If you look at america, in america, they bailed out the banks when they needed to in the moment of crisis and then, at their leisure, are clawing the money back through the legal system. We dont have an efficient legal system for that, so we have to find new things to attack the banks pop. Thats interesting, its the legal system. This time around in america, we saw very few perk walks. Virtually no one seemed to be held culpable. Is anyone being held culpable or is it just an exercise . The officialdome doesnt understand what happened. Its hard to blame someone if you dont know who what happened. It seemed to them to come out of thor. But they spent a lot of money so they really want to get some of that money back for the taxpayer. It turns out they cant sell their shares back. Is the focus on this meeting on libor or is it on rbs generally speaking when its prospects go forward . Growth. What the shareholder cares about is did we pay too much . Can we get any of that money back . If so, at what stage and how quickly . If you get your money back, youre going to have to sell your shares. If that looks like its going to be troublesome, maybe we can get a Dividend Payment only for the taxpayer in the form of fines. And with a look at barclays, as well, what are they offering the new investor or the current investor . Well, theyre visibly pulling out of the tax advisory business, which doesnt mean the tax advisory business will go anywhere. Theyre very visibly pulling out of that. Barclays was the only major bank where had the same management in charge as we had during the crisis and currently now the new guys want to cut themselves off that from. Their Investment Bank unit is picking up advisory deals and you have to somehow steer this path from saying were divorcing ourselves in the future. But recognize that is 50 of the profit and as ubs exits and this but you know, opportunity for barclays is huge. And its the Investment Bank with, not the Wealth Management side people liked more. Barclays is in a tough spot. We have this bizarre circumstance where the authorities, because of the early start of the crisis blew up in america, particularly blew up in securities but they thought it was a securitybased crisis. Our big problem is we have to separate these Investment Banks from these nice normal retail banks. If youre trying to count out the authorities, you look at if youre trying to split and down sooiz Investment Banking, but the reality is Investment Banking is where you can make quite good money and more importantly where you didnt lose. You resize the Investment Banking to look at the retail unit. Put a hundred pence price on it or something, maybe it takes 15, 20 years to sell the whole thing off but at least theres a direct benefit. Anything to these kinds of plans . If you did that, a lot of people would immediately say, oh, ive got the money. I dont know what its worth, but ill just sell it. And of course on what terms do you sell it . I think these ideas, what theyre trying to do is get the perception in peoples minds that it wasnt a total writeoff. Because why he moment, it looks like it might have been a total write jan. James ferguson, stay with us. Now, the horse meat contamination scandal is growing. Yesterday, frozen Food Producer findus nordic said it was so sue french firm comigel. On saturday, both the uk and french governments vowed to punish those responsible. Stephane is in paris following the story for us. Stephane, at fist it seemed to be a story about britain and maybe some snickering across the atlantic or outside of the country. But now its come home to roost. Absolutely there are more than one country involved. Six french retailers have decided to suspend the selling of frozen meat, frozen food containing potentially horse meat instead of beef. Several products have been pulled on the concern that they were mislabeled. The french minister spoke about the large frozen foods market. This might have started last year and generated profits of only 00,000 euros. This is raising not only a problem about horse meat because in france there is no taboo about horse meat, its not fashionable any more to eat horse meat in the country, but it is raising concerns about the traceability and about the food in france. There is a significant immigration within the country. And with the concerns about the efficiency of the control, this is absolutely a problem here in case meat is mislabeled in the final product that you can buy in any markets in the country. Stephane, to your point, what people are worried about isnt just the fact that its horse meat. Its more about these products with these antiinflammatory vet drugs, traces of which can lead to longterm health problems. People start to look at the food chain, if you trace back, it was a French Country and a romanian butcher. Do you expect any knee jerk regulation, any import export controls or anything like that . It shows that the government has limited power to control the chain because it shows there are plenty of companies between the producer and the final retailer. It shows how difficult is it to implement the traceability regulation in the country. So thats the problem. Second problem, its more like a kind of pride in france. If you remember some years ago, french people were pointing the fingers at british people because of the mad cow scandal and the british beef was banned in france for several years. And today, the british people are pointing their fingers at french because because they are unable to prove that their trace system is efficient. But yes, this is a problem. The government says it will increase the control ask call for the weekend all the industry to respect the roost because it was absolutely a necessaried regulation must be respected. Thats what the French Health minister said over the weekend. More finger pointing. Stephane, our man in pair why is, thanks very much. Ross actually, hold that thought. Before we get out to the markets, noble nordisk. Shares down in the range of 15 morning, now about 12 on one of the weakest performers on the stoxx 600, this after the u. S. Said it wanted to look into the potential heart risks from its latest insulin drug, trociba. Potentially announces delays of a couple of years time to get to the market in the u. S. For that drug. At this point, down 11. 6 . Extraordinary. Yeah. Big move down there. Thanks very much, kelly. We are on the down side here in european markets. We had gains on friday. Although we finished down on the week. Right now, you can see around 7 to 3, decliners over advancers. Volume is not exactly sparkling. The ftse right now is up 6 points. Xetra dax down 16. 41 for the ibex, the cac 4, down 0. 09 . Sovereign bond ratings, lets show you where we stand for yields. Lets do the yields and then go on to the asian markets. Spanish yields, 5. 41 . Tenyear italian, 4. 518 . Kind of where we were after the selloff we saw many weeks ago. The sap asx, down 0. 25 . The bombay sensex up 0. 07 . Pretty flat market. The dollar index is up at a onemonth high. Dollar yen, 92. 98, away from that 33month high of 94 that we hit in the middle of last week. Aussie dollar, 1. 0273. Sterling dollar, just around the 1. 57. We were around 1. 56, 1. 57 for most of the last week or so. Thats where we stand ahead of the u. S. Open a little later. Kelly, over to you. Ross, thanks very much for that. Two years after Hosni Mubarak steps down, we ask whats next for the country . Well explore that when we come back. Welcome back to the program. We were just showing you shares of novo nordisk. Down now 11. 8 . The Novo Nordisks chief science officer now saying he hopes for dialogue this week. Says he will not be able to provide requested fda data in 2013 and 2014. Now, natixis has cut novo to neutral. Sanofi shares were up after this open. Still down, ross, about 11. 8 . Support for spains ruling, central right party led by mario rajoy showed a 33 approval rating. He published his tax reports over the weekend in abdomen attempt to silence critics. One of the key items on the agenda today as the euro group meets in brussels, sylvia love is the nightly trips to brussels. I suppose how it averages out almost, sylvia. What do we know about what might happen with cypress . Are we still in the speculative stage . Were very much in the speculative stage. Either about someone taking losses, a sovereign debt restructuring, etcetera, its likely we play the same kind of game were playing with everybody else involved, pushing that so far down the road. At this stage, everything is still up in the open. Obviously, what they try to avoid is precisely what the ft reported as one of the proposals. They want to avoid losses for bondholders. They want to avoid a real debt restructu restructuring. Its a little bit of having your cake and eating it at this stage. The other topics on the agenda, still, banking unit, banking supervisor, we still havent got the law on the table that the summit decided we should have by the end of march. And, of course, on the sidelines, well probably be talking a lot it bit about where the heck somebody thinks the euro should be going or not and what somebody should be doing about it. But certainly cypress on top of the agenda with all the forces in play as weve seen in all the other countries. Sylvia, because of the implications for depositors and bondholders, it makes it clear that if they dont go this route, its going to leave cypress with a debt to gdp ratio with some major structural problems. It would almost imply a knee jerk reaction from a troika group, anyway. The question may come down to whether or not this will be a one off. Absolutely. It does smell of greece in a slightly smaller fish bowl. And with all the mistakes that were made with various greek bailout packages, it looks as though there might not be a very steep learning curve. Whats been discussed in that ft report and other reports floating around, rather do it now, rather have a real debt structuring now, get to a level that is high but just about manageable rather than connecting that proverbial enflora down the road until it cracks, until we were at 150 , 170 where we need one package after another. But weve been to many of these meetings and to the most logical and the most pragmatic things are not always the ones that being done. Thats pretty kindly. Silvia wadhwa, thanks very much. It was two years ago a mass protest caused Hosni Mubarak to step down. The leader of tunisia flet the country later. Mohammed morsi was elected president in june 2012 amid legal challenges and hopes the arab spring would smoothly give stability across the region have been dashed. Just last night, the tunisian president s party quit. What might the next two years hold regarding democracy across the region . Joining us now, david hartwell. Thanks very much for your time. If we could just start with egypt two years on, do you still think things as generally head in the right direction or looking at reports this morning that people are trying to protect their wealth by buying gold, by looking at other measures, maybe the country has to impose capital controls. Is this all potentially unraveling . I think its early to say its unraveling, but it certainly feels as though were approaching another crisis point because the government is clearly struggling to get ahold of both establish some form of legitimacy after the protests ask after the legal challenges that you mentioned lat year. And that is clearly having a major impact on the economy. The guarantees from the allegedly from gulf states have been slow to come through ask that is all. This political situation is so fluid and so dynamic and so difficult to read because we dont know how popular each side is. And the problem is, of course, with while morsi is doing this, hes looking increasingly inee feshtal, a little opportunistic, a little bit naive. In a way, its indicative in the way some of the rulers and the way it has not found things easy, if you like, over the past two years. And the kind of thing that iran has been able to create for a couple of decades now. Other countries across the region are struggling to strike this balance. Turkey was always the reference point. Turkey was always cited during the last two years as the ideal country like egypt to aspire to egypt. There is a very within very powerful like in turkey two or three decades ago. But that hasnt happened. One wonders how long the military will the military doesnt want to step in. That is the overwhelming thing that you get simply because morsi is a legitimate elected leader. Something mubarak could perhaps never claim. So there is a huge reluctant on the part of the military to step in. But the longer the crisis continues and the longer its staggering towards some form of normality, which no one knows what that form of normality will be, the longer the crisis will continues. David hartwell, thank you so much tore that. James, you know, its one of those political outliers still what happens in the middle east and were wondering what happens with oil prices. Brent has been creeping up again. What are the effects of dpeeo politics as it affects the oil region . Its always an issue. People are looking at the oil price situation, particularly americans, with a reasonably relaxed eye because the situation within america is quite benign. But as soon as you start looking outside of america, we have real medium and longterm problems in oil, particularly with the recovery of the cheap high, gate oil. People talk all the time about the peak oil situation, but its a peak in easily discovered on jdz shore high quality oil. Now its increasingly expensive to get oil. You have a trend of increasing cost of extraction with the geopolitical factor and thats keeping prices high. 2 is the spread, ross. People saying it could go wider yesterday. Still to come on the show, stick around, carnavale time in brazil. Instead of checking out partygoers outfits, a lot of eyes are focusing on brazils infrastructure. Can it last . When we come back. Our first full Team Gathering i wanted to call on a few people. Ashley, ashley marshall. Here. Since were often all on the move, ashley suggested we use fedex office to hold packages for us. Great job. [ applause ] thank you. And on a protocol note, id like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh im sorry guys. Ah sometimes the caps lock gets stuck on my keyboard. Hey do you wanna get a drink later . [ male announcer ] hold packages at any fedex office location. Parts of the u. S. Are struggling with extreme weather. Novo nordisk shares sliding on the back of a regulatory setback for a key insulin medication. And a charge at barclays . Expecting to cut costs and shut down units, but not announcing a Major Overhaul ahead of a highly anticipated reaction tomorrow. Argo picks up the best film accolades and daniel daylewis takes home the best actor for lincoln. We will be talking about the baftas and what it might mean in this hour. Volume right now is fairly right. Sanofi is up as shares of novo nordisk is down 11 . Mean while, bond yields, all higher this morning. Spain and italy, 5. 42 , 4. 59 respectively. Still not a ton of action there. Despite that one monday where we saw them jump. And maybe we have seen the lows in those yields recently. Well talk about that. Dollar yen, 93. 13. The threemonth high we hit last week was 9 the 4. James ferguson is still with us. Lets pick up on that point. Do you think weve seen recent lows for yields of spain and italy . Well, spain and italy, if you think weve seen the recent lows, then lows and yields. Yeah. If you think weve seen the lows recently, then youre taking a bet, really, on just how desperate they get within europe and just how hard they will basically fudge markets. Thats really what the interventions are. Theyre interventions to high from the price structure what the actual market really believes. And we know its worried about italy and spain and its worried that these countries havent got a solution. Normally the solution was to discount your currency and then see if you could extract some exporting within your country and have a better way of establishing the terms of having your global account. The only other thing you can do is get a traffic from germany who says well only transfer your money if you act like a german. What is it going to be change leadership in etly, change of leadership in spain . Do the politics matter at all . Might it be a different market event . For many, if you come from a legal political back, if youre more from an economic sense like i am, really what were saying here is they didnt think about it when they s