Antony Jenkins, Barclays Plc, group chief executive said today: “Barclays is changing. We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured. Our goal is to make Barclays the ‘Go-To’ bank for all our stakeholders. The plan that we set out today is critical to delivering that goal."

Andre Spicer, professor of organizational behaviour, at the Cass Business School, comments on today's announcement: “The strategy set out by Barclays’ CEO today is not about profit. It’s about rebuilding the legitimacy of the bank. He is trying to win back the trust of investors, regulators and the broader public.

To do this he has made some significant changes including refocusing the business and punishing the investment bankers. By cutting back the investment banking division, it appears Barclays is willing to kill the golden goose which has produced a significant chunk of its profits in the past.

This move is a gamble. It will inevitably lead to lower rates of profit in the future. It is also built on a move into an already crowded sector of the market - -  wealth management. It comes with significant collateral damage - - 1,900 people will go in retail banking.

The strategy relies on a long and difficult process of culture change within the bank. While culture change may be sorely needed, actually delivering it will prove to be a very difficult task.”

Justin Doyle, Investec Bank Ireland, said today:

• "A bit of good news for Ireland as S&P raises Irelands debt rating from ‘negative’ to ‘stable’. That leaves Moody’s as the only major rating agency to leave Ireland on negative watch;

• Over to the other side of the pond and the U.S. seemingly laid out their stall last night ahead of the imminent G20 meeting of Finance Ministers and central bank Governors in Moscow. It now seems that Japan definitely won’t be getting a finger wagging from the US at least;

• The US Treasury undersecretary for international affairs, Lael Branaird said that the G7 is ‘very committed to market-determined, floating exchange rates except in rare circumstances’ and that the U.S. Treasury ‘supports Japan’s efforts to boost growth’;

• Cue more JPY weakness. USD/JPY hit a new high of close to $94.50 earlier this morning. The Japanese Nikkei index closed up 2.25% on the day, that’s over a whopping 30% since the General election was called in mid November, so far so good for Mr. Abe."

Conall Mac Coille, chief economist of Davy, comments - - "The S&P upgrade is clearly a positive development for Irish yields. The key question remains whether Moody's follows suit, upgrading Ireland from its current non-investment grade status. If so, a new flow of previously constrained investors could push Irish yields down further, following fresh lows yesterday.

S&P upgrade may put pressure on Moody’s: Stock indices were little changed yesterday. The Euro Stoxx 50 fell 0.3% and the S&P500 0.1%. The euro has remained in a tight range against the dollar, currently $1.339, up a fifth of one cent since the close on Friday.

Irish bond yields fell to fresh lows yesterday, with the asking price on the 8-year bond falling to 3.8%. The news that S&P has upgraded Ireland's rating from 'negative' to 'stable' will surely push yields lower at the open this morning. S&P indicated that the deal on the promissory notes enhances Ireland’s chances of exiting the programme of EU/IMF support. The S&P upgrade is clearly a positive development. However, the key issue remains the Moody’s junk rating on Irish sovereign debt.

Since Moody’s rated Ireland as non-investment grade, Irish bond yields have had an extraordinary rally, falling from above 15% to below 4%. Nonetheless, despite clear concerns on ratings agents' performance through the financial crisis, many investors are still constrained by the Moody's ratings. Should the S&P upgrade pressure Moody’s to follow suit, it will allow many new investors into the Irish market, pushing Irish yields down further.

With unceasing investor appetite for Irish paper, an upgrade could push yields substantially lower. The synthetic (weighted average) euro bond yield is now 2.84%, and French and German yields at 2.25% and 1.6% respectively. Ireland is not likely to close the entire spread against the bund. The dislocation of assets through the European sovereign debt crisis has pushed German yields down, below the euro area average, but Italy, Spain and peripheral European countries yields up. In a low interest rate environment, an upgrade could allow Ireland to substantially close the spread with the euro area average at 2.84%."

Banks: NAMA cuts rents for 212 businesses; Eamonn Hughes and Colm Foley comment  -- "The Minister for Justice was asked in parliamentary discussions yesterday whether he would revisit upward only rent reviews for commercial properties. He reiterated that legislative intervention was not feasible but that market realities where playing their part, highlighting that NAMA had effected rent reductions for 212 businesses, saving tenants an estimated €13.5m. Mr Shatter added that of the 276 eligible applications for rent reductions only 8 were refused with a further 56 applications currently under review.
The figures from NAMA reflect the market reality for commercial landlords and tenants. Official commercial property rents are down 47% from the peak and clearly NAMA appears to be taking a pragmatic view of current market conditions for its tenants. This rental collapse drove a 65% peak to trough decline in commercial property prices."

US Markets

On Monday in New York, the Dow fell 22 points or 0.16% to 13,971.

The S&P 500 and the Nasdaq Composite fell 0.06%.