mr. modi's pick. him is -- sinceh patel quit, patel quit, he was pushing back against the government. he had to be independent. the only way he could maintain that was by leaving. so what position will mr. das be in now and what will it mean for central-bank independence? a lot of people apparently hold that very dear in india. paul: patel quitting for personal reasons, which is a rather opaque comment. while we bring in the senior economist and strategist at credit. kathleen running us through a background on the new r.b.i. governor, shaktikanta das. does the governor now have its man at the r.b.i.? darius: it remains to be seen how compliant mr. das will be with the wishes of the government. but certainly his background a long muchwill go farther with what mr. modi wants the central bank to do than mr. patel has in the past. -- fory be good for our near two long-term growth. if he pushes for lower interest rates, which is not clear but he might come it would be support been a swell, something import

disasters such as tsunamis volcanic activity seismic activity you have the prime minister of india mr modi reaching out to the president of indonesian asians on twitter saying saddened by the loss of lives and destruction in indonesia caused by the tsunami after the eruption of a volcano condolences to the bereaved families and wishing the injured in early recovery india is ready to assist our maritime neighbor and friend in relief work and other regional country that often also has to deal with such kinds of disasters in the position this part of the world from australia the prime minister of australia saying a very difficult day for our friends in indonesia our thoughts go out to all of those who have lost loved ones the injured and all of their families as always we being australia stand ready to assist. as needed and then zooming out closer to our part of the world jeremy corbyn there was no official reaction as far as the usual twitter channels were concern from the u.k. government but the leader of the labor party jeremy corbyn said my thoughts are with the victims their loved ones a

more uncertainty at a time when the markets and mr. modi could use more.o the rupee is one of the worst performers in the region this year. this is not good for them in the short-term. markets are closed. the forward contracts on dollar rupee showed quite a move. let's jump back into those charts. sophie just have this one up. you can see after the markets closed, here is the big move when the announcement came out. it took a lot more rupees to buy some dollars. today, stocks, bonds, and currencies expected to fall again. more uncertainty on top of the election uncertainty. there are three states in particular with a result of the elections in question, and it looks like mr. modi's party could come out on the short end. haidi: kathleen hays for us. still ahead, we will go through the challenges faced in india amid the fallout from urjit patel's departure. shery: the chances of a santa claus rally. this is bloomberg. ♪ oomberg. ♪ haidi: "daybreak asia this is "daybreak asia." i am haidi stroud-watts -- this is "daybreak asia." i am haidi stroud-watts in syd

hippie which is ruling in most of the states in india as well as in the central government under mr modi what have they given us in terms of you know economic benefits and development of infrastructure but on the other hand there is the already india which is you know based on caste. and regional considerations and those are often actually hurt that we give you more because you find that you know that they want to be of india the bigger piece slogan is always been to unite the country under you know a nationalistic banner and a muslim or these leadership sometimes that needs to grasp the ground realities which is far harsher and less idealistic but nonetheless i think between now and the general elections the prime minister has a star card out he will need to go beyond the novell affair is amanda populism and talk a bigger picture of all how india is rising and how the people need to see him for five more years at least to be able to carry through on the promises he began with some of these states which they are losing today i must mention i have known for fifteen years at the provinces

everyone was waiting for brouhaha over the battle with the government but mr. modi didn't transpire. the big news is what is next for the r.b.i. it could be a cut. paul: the bank of canada surprising with a dovish statement. what is their assessment? kathleen: oil theory that is the biggest export in canada. it is the ability of the crisis for the country. they are back there optimistic view of the economy. they held rates steady at one point, 7.5%. the drop in oil, risk to their economy overall. it is something they are watching closely. they also cited a faster than expected deceleration in inflation. you can see how the inflation rate is falling no doubt in part because oil has fallen. the governor of the bank of england concerned here. now that concern is growing last. -- less. hebrews to the key rate five times since 2017. they want to get closer to 3%, close to normal. this is the next rate hike and the number for the bank of canada, those are also dropping in markets as well. brexit top ofu k, mind not only for the u.k. but bankers. is tryingtheresa may to ge

between the governments, mr. modi, and the central bank, this is coming to a crunch. the markets potentially looking for further losses to come through. at the moment, we are seeing a significant move. that is what the analysts are talking about, this conflict with the politics. it could be difficult for the indian rupee. an interesting market not just here in europe, but around the world. back to you. vonnie: for more, we are joined by tobias lusk rich -- by tobias, from citigroup. he has a year-end target of 2800 for the s&p. another volatile week. what is driving this volatility? tobias: trade issues probably most in terms of people's minds. but this was not wildly unexpected. if you look at the shape of the yield curve, it has been a lead indicator for volatility. this could carry into next year. at hundred seems aggressive this minute, but we were at 2790 last week. we can move pretty sharply in either direction in a very short time. canie: tobias, i guess i assume you are in the camp that the fed raising interest rates once more this month -- what happens after

bigger piece slogan is always going to unite the country under you know a nationalistic banner under mr modi is leadership sometimes that needs to grasp the ground realities which is far harsher and less idealistic but nonetheless i think between now and the general elections the prime minister has a star card out he will need to go beyond the you know welfare is among the populism and talk to a bigger picture of all how india is rising and how the people need to see him for five more years at least to be able to carry through on the promises he began with some of these states which they are losing today must mention i have known for fifteen years at the provinces so you know innovate change is inevitable in democracy and maybe it's good and it's i think necessary wake up call before the big elections coming up for the national parliament in a few months or workers in gaol and have begun a three day strike to protest layoffs at the french oil producer total the union that stage the walkout says only some of those five got their jobs back to spite demands that they all return to work in july

monetary fund to had to fill large shoes -- who had to fill large shoes, this is , lot of politics with mr. modiad been a struggle. we will look to our india team in a bit. i am looking at sterling breaking up. why don't you reset what is going on in the u k and we see this with deteriorating u.s. futures. there is the plunge in futures. levels a drop below 127 for pound-sterling. francine: we have two main stories, brexit, our sources telling brexit -- telling bloomberg theresa may may postpone the deal. the other piece of news is the rbi and the fact that the governor is stepping down. if you go to the brexit headlines, we are trying to figure out what that means, whether her political calculation is she gets a e.u.,,sion from the whether she will go to that summit to renegotiate. let me look at a market perspective which is euro-pound. this chart is amazing because you can see it range bound. cable butatility on euro-pound has not broken out. what will it take? neil: this is a good question. it comes back to what we were saying. the dollar is a safe haven. thee are downsides in eurozone. it i

right i mean resignation comes after a standoff with prime minister narendra modi's government over the bank's independence mr patel cites a personal reasons for his decisions to step down but media reports have suggested that he was increasingly annoyed by repeated government efforts to influence central bank policy the modi government seeks to reduce curbs on lending and wants access to the r.b.i. reserves mr patel has been in the top job at the in the us with banks since september twenty sixth more details on that evolving story in our business update with a beneficial in the next hour the arrest of wise chief financial officer marks a further escalation of trade tensions between the us and china and has hit asian stocks today huawei c.f.o. men one jew was taken into custody last week at the behest of u.s. authorities and is fighting to be released on bail for health reasons the government in beijing some of the u.s. ambassador to demand another day another sign that bunga rust could spill over into the u.s. china trade dispute this time claims of poor treatment in the media. now there already some media r

governor of the reserve bank of india birgitte patel was reportedly prompted by mr patel's concerns about prime minister narendra modi's infringing on the independence of the r.b.i. with demands for relaxed monetary policies and lighter and forstmann for india's troubled state banking sector you know what that's like in the us mr patel's resignation follows the exit of a number of senior economic adviser to president to prime minister modi the indian rupee fell sharply on the news taking the largest percentage of change among asian currencies against the us dollar this year. and turning to africa regional cloud computing giant liquid telecom will receive an investment amounting to one hundred eighty million dollars from the united kingdom's commonwealth development corporation or c.d.c. c.d.c. formerly the colonial development corporation is a public limited company or p.l.c. and an organ of the u.k. developments for international development government for international development liquid c.e.o. touted the new investment as a means to expand the company's fiber optic network in africa which a united nations body found

narendra modi's government has allegedly been threatening the central bank's independence. mr central bank's independence. mr sha ktika nta das has central bank's independence. mr shaktikanta das has been appointed as the 25th governor of the reserve bank of india, just a day after patel step down as the head of the central bank. mr das is a bureaucrat who served in various departments in the government. in 2016 he was economic affairs secretary at the time when the government decided to ban 86% of the currency in the country. he was one of the key persons who led that project and was seen as a very powerful aide of narendra modi. this has come at a time when the government and the central bank have been in a feud over policy decisions taken by the government and critics and observers believe that rbi patel resigned because the rbi was under pressure to change those decisions. and the events have raised concerns with regards to the rbi's autonomy. and that's why mr das's biggest challenge is to reassure investors that he will operate as an independent head of the reserve bank

mr patel‘s resignation triggered a selloff in the rupee on concerns that moves by narendra modi's governmentator's independence. china's music streaming company tencent music has reportedly raised over $1 billion in its us initial public offering. that's according to reuters. if confirmed, the music arm of gaming and social network giant has been valued at over $21 billion, defying a bout of market volatility with flotations. now, we did tell you this was going to ta ke now, we did tell you this was going to take place. executives of big tech companies have spent parts of 2018 testifying in front of us lawmakers in washington dc. google was the latest, talking to lawmakers about their policies regarding alleged political bias, tracking and expanding in to china. the bbc‘s north american technology reporter dave lee breaks it down. if you "idiot" under images, a picture of donald trump comes up. sunday petard's goal when coming to this, try to claim that google was not too powered all on the internet. do you believe it is biased, yes or no? no, not in our approach. ted lu had this suggestion

bigger piece slogan is always been to unite the country under you know a nationalistic banner under mr modi's leadership sometimes that needs to grasp the ground realities which is far harsher and less idealistic but nonetheless i think of between now and the general elections the prime minister has a star card out he will need to go beyond the novell affair is a man the populism and talk to a bigger picture of all how india is rising and how the people need to see him for five more years at least to be able to carry through on the promises he began with some of these states which they are losing today i must mention i have been for fifteen years at the provinces so you know innovate change is inevitable in democracy and maybe it's good and it's i think a necessary wake up call before the big elections coming up for the national parliament in a few months. time he will weather with mr mckelway winter getting a grip all over the place now yeah it swept into japan and china that last week and it's already gone into india but in between the two there's a consequence of that because as it gets co

to the top job after the abrupt departure of purcell on monday mr patel version resignation came after serious disagreements with the modi government over monetary policy it seems to reflect a trend that has economists worried as an increasing number of governments the world over interfere with their central banks which are supposed to be independent . the u.s. federal reserve the bank of england the european central bank the world over central banks are some of the most powerful institutions there are allowing them to adjust interest rates inflation print money and sure up the economy they usually designed to be independent from political interference but is that changing. applause handshakes and backslaps aside president john paston proved to be the biggest fan of fed chair jerome powell openly criticizing the us federal reserve's decision to raise rates on several occasions i think it is thanks i really think that the fed is out of control i think what they're doing is wrong and they're making a mistake but donald trump isn't the only one questioning monetary decisions talk ish presidents wretched type at it one is at

this we've been telling them says mr kabila is the ready to come right to lectures because this election is it for him if you don't open for him to go. modi think is the real reason. they said technical problems logistical problems with the sound skeptical about what he thinks the real reason in living by another week moving for another week mr nunn you want to steal is the playing the game is protecting your powers protecting this is not the thing being the first time that the postponing elections if none is failing to connect it to you is a pressure what about the coming weeks or got you to do anything it's a lack of political will to get my selection destruction some people that they are we looking everything to the only choice like a political will to commit lections that is the main cause of the congo may not have a good democracy and trust with elections. and the government the ruling party can still rule the rallies in the final campaign rallies in the capital including yours which is meant to take place yesterday so i think that people planning violence among different political factions and people in the ruling party have called