. >> i'm louisa bojesen. >> the boss of barclays tells cnbc why the bank refused to settle with the department of justice over mortgage backed securities but admits banks have to pay for their wrong doing. >> we believe banks need to atone for mistakes and transgressions made coming into the final crisis. barclays is prepared to pay that price. we wanted to be treated fairly. >> the ceo of deutsche bank, john cryan, refuses to rule out the need more more capital but says he is comfortable after a hefty legal bill to the doj. >> i've been in there role before. it remains to be seen what those uncertainties are for us. >> wilbur ross stokes the trade war fire, branding china the most protectionist major economy in the world. we talk about the president-elect's plan to dismantle nato with the secretary gem. >>> and ready to take off. shares in zodiac aerospace takes off after safran agrees to buy them for $9 billion. >>> a warm welcome to "street signs." we are talking banks this morning. let me start with the top story, that's barclays in focus. barclays is one european bank yet to re

have preference for fixed income capital market exposure by the likes of barclays. >> did you get any more indication on the litigation questions? i know there was an additional provision for litigation, but ubs is trying to put this specific question mark behind them. how are they doing in those attempts? >> litigation has always been an issue for ubs. they settled some of the high profile cases like the libor case. we have got credit suisse, deutsche bank now settling with the department of justice in the u.s. ubs still needs to do that. however the total tally for ubs is expected to be a lot lower. this quarter, for example, they only set aside 170 million swiss francs. the total tally for litigation provisions in the u.s. is 3.1 billion swiss francs, compared to ubs. we are still waiting for that issue, we are still waiting for french authorities on tax matters. i asked sergio ermotti about that this morning. he didn't have much more clarity on that. ceos of banks are quiet on that type of thing because they can't talk about litigation issues. hopefully this will be settled fo

a merger with deutsche boerse. >>> an upgrade for intercontinental group after barclays gives the hotel chain an overweight rating, sending the shares to a record high. >>> good morning. welcome to "street signs." if you're trading here in the uk, happy new year to you. the ftse 100 is out of the gate today hittinging fresh record highs. joining the broader eurozone, which did see some of its highest levels of more than a year yesterday for the first day of trade of the new year. today we're looking at more strengths with the stoxx 600 going into bull market territory. let's give you a shot of the individual bourses. the ftse 100, higher by 0.8%. just below the record we saw earlier in the session. xetra dax higher, but basically flat for the main market which did enjoy sharp gains yesterday in the neighborhood of 1%. clinging in positive territory. the french main market higher by a half percent. the ftse mib higher by 0.13%. yes, the gains are holding but just barely positive at this stage. let's look at some individual sectors on the move. oil prices got a bit of a bounce in th

the new year after barclays raises its price target on ubs, credit suisse and deutsche bank. >>> another bad day for apple suppliers. stmicro nears the bottom of the stoxx 600 as morgan stanley cuts the chipmaker to underweight. >>> good morning. let's kick you off with some eurozone services pmi numbers. the final december composite pmi was 54.4. pmi pointing to fourth quarter gdp growth of 0.4% and prices charged rose at the fastest rate since july 2011. finally inflationary pressures coming through. let's look at some of the services pmi. eurozone december pmi at 53.7. the forecast was for a print of 53.1. easily beating expectations. to tell you across the regions we saw in germany a services pmi at a five-month high. italian services pmi was below expectations and showing slowing in december. we did see an uptick in spain and in france an 18-month high. mixed picture here. this following a strong manufacturing pmi earlier in the week. prices ticking up. that's something we have been seeing in the uk. let's give you a view of the european bourses an hour into the session

goldman and a boost from barclays also sending dsm to the top of the european equity market. >>> sanofi shares slide as a u.s. court blocks the sale of its cholesterol drug with the french firm saying it will appeal the decision. >>> san francisco fed president john williams tells cnbc exclusively that fiscal stimulus will only have a modest effect on growth, but says the fomc's aim to tighten policy is appropriate. >> the tendency of the views of my colleagues of one to three rate hikes are a reasonable view given that employment is 1.6%, the economy is growing to 2% and inflation is growing back to 2%. that's a reasonable assumption. >>> good morning. tgif. we have a lot going on today. we have a preview to the jobs report. a big reversal in the yuan against the dollar, but it's all covered for you. let's kick things off with a look at european equity markets. we are modestly trading to the down side to the tune of 0.2% on the stoxx 600. it is jobs day in the u.s. the first jobs report of the year and we're expecting a print of about $178,000 jobs. let's look at the indices one by one

barclays and evercore isi was all about clarity. they want to move beyond this big unknown. and they wanted to clear it before the administration turns over january 20th that would have been another question of uncertainty. and, yes, 4.3 billion is huge compared to other criminal fines we've seen from the likes of toyota and general motors, but considering where we were back in september 2015, there were rumors in the early days of the diesel scandal this fine could be north of 40 billion, then 18 billion. just at the last motor show in paris there was speculation that officials were looking at how high it could go without pushing volkswagen into bankruptcy. so i think now that we have this figure of $4.3 billion, that's a figure that the company can deal with. also from the justice department's view showing they are still strict. >> despite all of that, vw for 2016 showing record sales. it seems to have not impacted their business too much overall. thank you very much for that. >>> let's talk politics. in france, the immigration pol policy will be laid out today. there is likely to

a center of finance for europe. it will not threaten the activities of barclays in europe. remember, we're a british bank, committed to the united kingdom. we'll be fine. >> we're joined by james root, partner at bain & company. >> good morning. >> brexit is a shock to british businesses, is there a silver lining in the sense they'll have to adjust quickly and very soon? we've seen that with some swiss companies after the swiss franc shock, they have become some of the most competitive companies in europe. >> the answer is i don't know yet. there's too much uncertainty. whatever will happen, there are, i suspect, years ahead in negotiations. if i'm a ceo, kind of clients we work with, i got to lead today, lead in two years time, ten years time. i'm thinking in the long-term. >> we're talking just then about the transition period, and ceos coming forward saying we need this transition period. sometimes you don't get the luxury of choosing how and when you transition as a company. >> no. but they are -- the great leaders are braced for impact at all times. they're thinking about all t