you can see this chart of the dollar-rupee rate, the dollar then this the rupee, surprising move todayion, could the rbi decide to wait until april to cut the key rate? muchn't know how de-monetization will hurt the indian economy as it adjusts. be on hold today, commodity prices stoking inflation in india, and they are wondering about the promised fed rate hikes this year. that be another reason why the rbi waits to see how hawkish the fed turns out to be. cut,an convinced they will a recovery in purchasing managers index, also car sales. the worst of the cash ban is well behind the indian economy, and it may be time for the rupee to shine. the key rate is expected to stay june 2018te until after this series of seven cuts. rishaad: kathleen hays there. the indian economist at capital economics, he is predicting the rbi will stay put and she joins us now. thank you for joining us and let's start off with your rationale behind that. there are a number of factors to suggest a rate cut is not a done deal. if we think back to december, the rbi meeting, and the rbi kept rates on hold. that

tax cuts for people earning under 500,000 rupees. cuts for companies with a turn over under 500 million rupees. oft takes and 90 -- 96% companies in india. that should be a boost to that sector as well. these are some of the policies which seem to be aiding the room communities-- rural . in india, state elections coming up on saturday. very important. rishaad: hugely important. these are politically to the budget, as well as the people of india, supported the prime minister and the government. bumpad: spending getting a of. -- up. how will they pay for all of this? planning anthey are increase of 13%. part of this will be for the income tax. they are saying that they will increase spending by 6.6% starting april 1. there also budgeting and increase -- an increase in as asset sales. there was a big bump up yesterday, making the biggest post-budget rally in a decade. rishaad: 2009 was not a very good budget. not received well. >> part of that was because of a tax break and equity investments. we are also looking forward to 8. central b

may be the rupee's time to shine.om theeven r.b.i. since january 2015. if they don't move now, that is really going to surprise people. maybe we will see an abrupt turn in the rupee. yvonne: thank you. show no --mbers passenger numbers drop and southeast asians biggest carrier -- have a breakdown. talk all about about the results here that continue to get pandered. reporter: it remains turbulent for singapore air. overcapacity,th over aggressive pricing for rivals, in particular, the big three gulf carriers. they are squeezing singapore air by keeping ticket prices competitive while operating premium customers luxuries like i've it suites, caviar, designer pjs. and q3, profits dropped. they say 2017 will be no different. they will all continue to be under a lot of pressure. i want show you this chart. you can see how singapore air shares have underperformed the benchmark sti. take a look at another tort -- at another chart. it has been struggling to get past the $11 mark for the past six months. bnp paribas downgraded

. >> reporter: these are shredded notes of rupees 1,000 and rupees 500 which have been demonetized by the government. these are the companies that manufacture plywood and have been receiving these notes. the old notes are shredded into fine strips. the factory collects about ten tons of the waste every day. the old money is combined with wood chips to make panels that can be used for furniture and other products. more than two months have passed since the large denomination bills were abolished. while the old bills continue to be collected, the chaos continues. new bank notes aren't being printed fast enough. people have to wait in line for hours in banks to withdraw cash. often they wait in vain. >> translator: i've been waiting in line both yesterday and today. i wasn't able to withdraw any cash. >> reporter: the government is trying to turn this troublesome situation into an opportunity. authorities have adopted the catchphrase "digital india" to promote cashless transactions and limit the use of physical money. >> translator: paper money is a thing of the past. banks can now be ac

is a 1.8 trillion rupee expenditure that's being proposed.nna: why is this budget so important then? this is a good glimpse of the impact that expectation around the demonetization policy. >> it is. so far demonetization has hit india's economic growth and investors are looking at signs that could boost growth again. we're still watching to see with the budget brings, but so far they've talked about streamlining foreign direct investments and abolishing regulatory authority that controls investment and freeing it up so it's still a work in progress and were watching it as it goes on. we're reading those headlines as they cross. coming up, we'll be joined by the iris financial services miniter -- minister. this is bloomberg. ♪ anna: good morning, this is "bloomberg daybreak:europe." let's get the bloomberg business flash. juliette: general electric chairman and ceo jeff immelt warns the tide of global unbridled trade is over. newsoke exclusively to our editor in chief and weighed in on president trump's travel ban. >> we understand the context

he said there will be tax cuts for people earning under 5000 rupees.t is 96% of all the companies, a tax cut with 500 million rupees turnover. and beyond that, the housing phase will get a boost because it increases spending for housing especially for the poor communities. you have to remember, this is what got him into power. it is the rural communities that have been hard hit by the ban on high denomination notes that can into place last year. election coming up the first of which is on saturday. there is an eye on that as well as well as the possible election as per minister in the future. betty: what about that budget deficit, how is spending going to be funded then? inessentially by an increase taxes. the forecast that they will get cautionsrease in tax through nontax revenue. although nontax revenue will dip and that will increase spending by 6.6% according to the government's calculations. betty: you see at the bottom of your screen, this is confirmation the wall street journal had reported this earlier but the u.k. consumer-products company rec

there is also a school of thought that given that there is so much cash in the system after the rupeeney back into the banks, banks have ready started cutting rates. rates are already down. it's really not going to have any major impact. if they cut rates in the future. we will know the ants in 3.5 hours whether they will cut rates not. —— answer. speak to you soon. after relying on nuclear power for decades, taiwan will stop using it completely by 2025. so the government is ramping up the use of green — or renewable — energy, by installing wind turbines and converting damaged or unused farmland into solar farms. cindy sui reports from southern taiwan where farmers are cultivating solar energy instead of crops. these fields are helping taiwan to produce modern renewable energy. the soil is damaged and most crops no longer top — here. now farmers are helping produce something else instead. they earn money by a leasing their land to solar energy companies and taking care of the panels. translation: i never an imagined our ancestors land would be used in this way. this is one of hundreds

but one,t ' ' the| ec| rupee f? recover. —— i reg/lye rowth. 41—4 112.4; +- |'::l——x-— a...— -. with 41—4 1555545: 5- |'::l——5-— 55... -. with trump. = close the countries are close trading partners but ever since mr trump took office relations have turned more frosty. earlier i asked if the sentiment in japan had more frosty. earlier i asked if the sentiment injapan had changed regarding mrtrump. sentiment injapan had changed regarding mr trump.|j sentiment injapan had changed regarding mr trump. i think there is cautious optimism. when mr trump scrapped the tpp there was a shock wave that ran through the business community, but right now with shinzo abe's visit to america people are hoping that he and trump will cut a new deal which benefits both countries. is there also are concerned that the japanese government is cosying up to much to mrtrump? government is cosying up to much to mr trump? i think there is. mr abe is pressured by mr trump to for insta nce is pressured by mr trump to for instance appreciate the japanese yen or by american au

it was a surprise move to withdraw two high—value rupee notes from the system. reserve bank said that it is reasonably confident that by next month, the situation will be under control. there will be enough liquidity in the system. it is why it is confident banks will be in a position to provide the new currency notes without any problems. bbc news, mumbai. staying with india, their airlines are flying high, with their airlines are flying high, with the middle—class flying at even greater volumes. they are rushing to expand their fleet to take advantage of the growth. this one is one of them. they are paying for a new boeing aircraft. they had to close operations a few years ago due to financial difficulties we have the details. for airlines, financial difficulties we have the details. forairlines, india has a lwa ys details. forairlines, india has always been a land of opportunity. a growing population, rising disposable incomes, and an increasing thirst for travel, these are helping the aviation sector in the country finally take off. when indians have extra m

reporter: it has been three months since the prime minister shock move to scrap rupee notes. it removed 86% of the cash in circulation and triggered economic chaos. the effects were devastating. in many cases, leading to a shutdown in business. >> we have to remember in recent months, farmers have borne the brunt. and he struggled to find cash. many have faced financial ruin. spending will be a way to help lift people out of poverty. reporter: it includes plans for an employment scheme and for sanitation projects. half of the population does not have a bank account. reporter: deutsche bank has been wrapped by u.k. authorities. they are accused of facilitating $10 billion of money laundering out of russia. blaming systems and controls, saying that deutsche bank -- the fca imposed its largest ever fine for money laundering violations with over 190 million euros. some say the fine just isn't big enough. >> let's not kid ourselves. individuals haven't been held to account, and that is critical in these cases. reporter: they are getting a big slice of the action. reporter: equippe

take a look at the rupee in india, strengthening ahead of the r.b.i. rate decision.consensus is for a cut. that's not the issue right now. the issue is, is that the last cut in this cycle for the r.b.i.? that's what investors will be looking for in this session. manus: thank you very much, shery ahn. in the u.s., there's an hour-long hearing in the federal appeals court to examine arguments for and against president trump's travel ban. these details from new york. >> it was a contentious and fast-paced hour of oral arguments for department of justice and washington state loggers. they spoke for an hour, about 30 minutes for each side, to at theging the panel ninth circuit court of appeals in san francisco. the panel was made up of one judge appointed by republican presidents and to appointed by democratic once. it was ruled the judges interrupted him fairly often, it turns out you been swapped in a few hours before the hearing after the original lawyers for pulled out. a brief that was filed opposed his trunk immigrant ban. >> i'm not sure i'm convincing the court, s

it comes after a wealthy businessman spent five billion rupees, that's around $74 million on his daughter'ske a look at some front pages from around the world the south china morning post has more on the killing of a man thought to be the half—brother of north korean leader, kim jong—un. citing an anonymous source, the paper says that kim jong—nam felt he was living on "borrowed time." the financial times reports on a visit to 0man by the iranian president, hassan rouhani. it says it's the first visit to a gulf country since the president took office in 2013, and is a sign that tehran is seeking to ease tensions with saudi arabia by calling for a ceasefire in yemen. and in singapore's the straits times, the 75th anniversary of the island's occupation by japan, with the prime minister saying the lessons must not be forgotten. those are the lead stories in major publications around the world. now, babita, a former leader in the mobile phone market is sparking discussion on—line? yes, rico. do you remember the nokia 3310 phone? well, rumours are rife that nokia is planning to bring back the ic

the rupee -- i do not know if you have a chart. the rupee pared some gains as panel held rates steady. they are changing their policy stands to neutral from accommodative. this is a picture that may imply the rupee holding off for a couple of months, in terms of the gains we saw. we will get back to that shortly. first, this is the rest of your market. we are expecting a little bit of fluctuation in terms of some of the currency. european stocks gaining. asian stocks recovered a touch from early losses. this is the picture for the .ndian sensex it was lower as we were waiting for this r.b.i. decision. european stocks -- rio tinto jumping after posting its first annual profit in three years. we will get on to those earnings with our head of mining and commodities. the vix index a little bit higher, but nothing to write home about yet. the firststraight to word news. here is sebastian salek. lawyers for donald trump's administration have told a san francisco appeals court that the travel ban was within the powers granted by congress

estimates about 60 billion rupees, $890 million.ll us why would other carriers need these airwaves? >> a lot of carriers in india are looking to expand their mobile broadband offerings. to extend that service, you would need airwaves, and other carriers could acquire these airways cheap because boda phone and idea would need to get rid of these airwaves within one year of signing a deal. yousef: we will leave it there. let's cross over to one of our big stories, i'd year since the boj introduced negative interest rates, and well, earnings offer an interesting perspective on how they are coping. let's get more on this story. what exactly do these numbers tell? >> that's right. three japanese banks have done reasonably well. above theare well three-quarter mark. their targets are conservative, down on last year, but if we look at progress year to date against last year, they are all still ahead of the three-quarter mark as well. see a significant outperformance. mitsuo and sumitomo mitsui, so a growth in business. mitsubishi ufj, 93%

increasing social where fair funding, loans to farmers, and tax cuts for people earning less than 500,000 rupees of these policies will help to 70%ommunities, home of india's population, and those will be important in elections coming up saturday. there are also measures to spur job creation, and all of this coming together should stimulate domestic demand and consumption. all of this taken quite well by economists. spending will increase by 6%, and some of that will be funded by a 13% increase in tax collections. the budget deficit, which is the biggest in asia, two point 5% this current year, will be decreased to 3.2% of gdp. currentlower than the 3.5%. fiscal prudence has been the keyword. investors like what they heard, and we saw the sensex make its biggest rally in a decade. generally, this budget has been sectors.y quite a few the losers are the pharmaceuticals industry and cigarette makers. accompaniedes are by a central bank rate cut, which could be coming, and the state elections, that could generally be a big boost to prime minister narendra modi. you would imagine, a lot of reaction

we prefer the indian rupee, the indian bond market in general, largely because we see continued goodaking and the market got a little damaged by the reluctance of the central bank to increase it. but i think there is more to go. one thing that is fascinating is the changing narratives may comes to markets. e.m. was supposed to be the big, big loser out of a trump presidency because he was going to enact all of these protectionist policies and now it seems to be the winner. what has happened? gary: a couple things. we have seen a broadening of global markets. would see a stronger dollar. broad growth is good. has beenary policy strengthened by interest rates. and we get a lot of noise off the front end of mr. trump's policymaking but then it tapers off. people are getting used to that and do not see such a substantial risk from his geopolitics. yousef: let's talk about egypt. the pound has been on a tear, over 10% over five trading days. ?hat do you make of egypt we have the central bank keeping rates on hold. that?re your thoughts on gary: i see stabilization. that is good news for e

and wesex is up by .2% have seen a little bit of strength coming from the indian rupee.ve the fed chrystia freeland meeting and we have had a lot of reaction to those announcements from president trump earlier today, but generally, things are looking quite good. we do have a weaker dollar and that is having a little bit of an impact. but the yen has turned around. the nikkei is that bup by .6%. the vichy motors is -- mitsubishi motors is a standout this year, saying they will return to profit this year. nomura says mitsubishi is doing quite well. we are seeing some downside after the lunar new year, playing catch-up to the global selloff. over in australia, the asx 200 has closed higher by .6%. we will be live from london at the top of the hour. this is bloomberg. caroline: this is "bloomberg technology." is appleop story reporting its fiscal first-quarter results. shares are continuing to rise in after-hours trading. analysts. now with the company will have all-time revenue records with 78 million units sold, coming up almost 70% of the company's revenue. also encouragi

they're ruping our campus. i don't think they're students here. >> denigrates people. marginalizes people. forces people on the fringes to abandons the hopes they have. >> that was a group that came in uniform covered in black, utilized paramilitary tactics. clearly designed and well thought out plan to disrupt the event. >> the crowd moved downtown where they targeted banks for vandalism. that lockdown around 11:00 last night. we reached out to the university to get their reaction to president trump's tweet of withholding federal funding. but the campus is yet to respond. bob redell, today in the bay. >>> thank you very much. the speeches triggered last night's protests milo yiannopolous started his live stream shortly after they canceled his event. cal was supposed to be the final stop on a college in which he is speaking out against an epidemic of political correctness on college campuses. here's a snip et of what he has to say. >> they don't like i have to say about black lives matter or the campus wage gap conspiracy -- sorry, the wage gap or any of the other thin

they would sooner bet on texas banning guns or hollywood banning rupees. mr. trump has got to love this period he is addressing congress. it is like the fox addressing the henhouse or the big bad wolf addressing the pigs. will we hear a more thoughtful donald tonight? should it matter? is it about his demeanor or audience? according to a new nbc poll, president trump is the least popular person in our nation's capital except for everyone else in the room. 43% of people have a positive view of trump but pelosi, 19, which is around the popularity of scurvy in the pirate age. the democratic party is at 30, and chuck schumer at 17 is about as popular as this song. ♪ >> ♪ donate your car today >> greg: you will never get that out of your head. despite a lockstep press and his pugnacious style, mr. trump has more goodwill going than most. my advice to him if he is listening, go for it. be daring. ignore the hyenas chasing the lion. for democrats, pick your battle battles. according to rasmussen, 29% of voters think it's wise for democrats to oppose trump on everythi

. >> that person gave her round 400 rupees. >> reporter: this is called the most deadly chemical weapon ever produced. it is a weapon of mass destruction. it causes convulsions and anand anand naseau and death. the chemical could kill many more. >> it would not be on the bounds of the possibility to weaponize the missiles we have been seeing. >> reporter: sou k experts warn that north korea could have as much as 5,000 tons of the deadly agent. complicated to produce and weaponize. it has been done before. iraq thought to have made 50 tons of it and saddam hussein may have used it to attack rebels. a gas from the poison used to murder a man in 1994. here, this man nearly died when the same cult attacked him in 1995. future victims may not be so lucky. this alleged assassination as well as north korea's test firing of the ballistic missiles may be hurting issues with the u.s. the state department denied a visa to a top north korea diplomat. >> matt bradley in london. thank you. >>> let's look at the morning top headlines. police in connecticut are trying to reunite a little girl with her

it announced third-quarter net income of 937.7 million rupees.tations were 22.6 billion, so that is some miss from charger motors, the indian automaker -- tarcher motors. francine: thank you. ofly on we spoke to the ceo credit suisse after they reported earnings. the loss was bigger than expected, mainly because they took huge hits for settling the rmbs. thatid he was relieved they settled with the department of justice of the united states and they can move on, although he did not tell me it was the end of these fines related to the crisis era. i tried to push him on the ipo of the swiss unit, something that when he became ceo he said, he laid out his plan and said, what i want to do is ipo the swiss unit because this will unlock value and give me more capital. in the last couple of weeks, the markets and investors have been testing him, saying is this the right strategy? if he is increasing revenue and margin, he may be able to keep it all together without ipo in the swiss unit. i asked him many times whether this was on the plan, whether he wa

thepeso, the rupee, and rupiah? >> we will get local left in industrial activity.e been lackluster, so that needs to change. some of the leading indicators have some value, some relevance, that kind of acceleration should help us to see some currency strength, and we already see the ones that are heavily exposed to global trade doing extremely well this year, so everything related to export will do quite well in 2017. rishaad: gold the big winner? >> with rates negative, absolutely. i think you should belong gold. right, great having you to the program. dominic schnider there could let's look at what we have, donald trump is ramping up his deregulation agenda. we hear from the man who is spearheading the push against the dodd-frank. that is on the way. ♪ ishaad: deregulation emerging as a key focus of the presidency of donald trump. this as the new administration sets its sights on overhauling dodd-frank. sachs gary cohn tells bloomberg that the administration can get a lot done with or without congressional support. >> we can do quite a bit of what we need to do.