prime minister narendra modi marked the occasion with a traditional flag raising followed by a speech from the 17th century red fort in delhi. he highlighted achievements of his government, including bringing electricity to some villages and limiting inflammation -- inflation. modi accused islamabad of double standards, a reference to the support at kazmir. sarah: welcome back. a quick reminder of our top story. donald trump says that he will introduce an extreme velting -- vetting of immigrants to the u.s. from countries linked to terrorism as part of a political speech from the republican presidential candidate aiming to highlight political differences with hillary clinton. a bittersweet reunion for a mother in south africa. celeste nurse has seen a court in capetown sentence the woman who snatched her newborn baby and raise her as her own to 10 years in prison but there is an uncertain future. reporter: 19 years after her you newborn daughter was kidnapped, celest arrived to hear the verdict on the woman who took her. the father says they are focused on the future. >> not thinking

the tax is a central part of prime minister narendra modi's efforts to overhaul the indian economy.et's join our correspondent in new delhi. how important is this reform for the country? off, this bill has been in limbo for a decade now. it was first introduced to the indian parliament in 2006. as you mentioned, once it is implemented, it will be the biggest tax reform in independent india. it would impose a national sales tax that would create one of the biggest single markets in the world. it would replace 17 existing state and federal taxes, making the movement of goods cheaper and more seamless across the market with 1.3 billion consumers, about four times the size of the population of the united states of america, for example. in addition, the indian government believes that the tax the ease of doing business for companies by reducing costs and streamline the current tax structure, which is riddled with bureaucracy. most crucially for the prime minister, it is key to being seen as an economic reformer. it will add arnd two percentage points to the national gdp, quite possibly m

narendra modi's government has chosen continually -- continuity over change by promoting patel.mes with a lot of credibility. the market knows him very well. he is seen a bit is an inflation hawk. part of the inflation targeting regime put in place. today's equity market opening has not been extremely strong, but given the fact that most investors expect, bond investors expect yields to be push lower patel's stated objective is to keep inflation under control. therefore, he will be keen on keeping interest rates at the status quo, or perhaps marginally higher, pushing yields lower. anna: i was having a conversation with geoffrey yu of ubs in the studio, talking about the importance of central bank independence. iill the new governor at the r u play ball with what the government wants and cut rates? harsha: cutting rates is difficult, anna. two important factors have come into play in the last six months in india. consumer prices have risen, and oil prices are moving up. governor the previous had extremely low oil prices, giving him room to cut interest rates, so patel will look

but like other leaders of economically strapped nations who promise change, narendr narendra modi ofia, action will likely fallen. if we don't see as most forecast for brazil, these gains should be short lived. in fact, morgan stanley says on average stock markets that are driven by politics typically outperform for two years after a new leader's elected. then those markets start to fade. again, examples are indonesia, russia as well when putin was elected and modi of india. that could happen to brazil if we don't see reforms implemented by temer. >> it's very tough considering the constitution that has so many restraints within it to do it. as a u.s. investor it's not just the stock market but the currency, there's been so much volatility some of this will be related to the federal reserve and what they do with interest rates. >> great point. a country also dealing with a high level of dollar denominated debt therefore it's an emerging market vulnerable to another rate hike by the federal reserve. >> i guess the markets will now look to who may be the next president of brazil. i don