the reserve bank of india was forced to raise interest rates on wednesday, for the first time in moren 4 years. india imports most of its oil, which is made even more expensive by the falling rupee, pushing up inflation. last month turkey's central bank raised its main interest rate from 13.5% to 16.5% to try and stave off the fall in its currency. it meets again later and is expected to raise rates again. the weak currency is stoking inflation — it's running at over 12% — and becoming a big issue in elections due later this month. translation: i hope this election will improve my income because before i was spending a turkish lira a month. and now cannot do it for less tha n a month. and now cannot do it for less than 400 lira. the reserve bank of india isjust one of the central banks in asia grappling with a falling currency against the dollar. rico hizon and our asia business team in singapore are following the story. good to see you. it is a real problem and india isjust one of many emerging economies trying to get their heads around it? that's right. we are seeing rising prices i

central hass toward tighter policy been in full force in the past 24 hours, especially as the reserve bank of indiaensus and hiked its key rate for the first time in four years. our global economics and policy editor kathleen hays is here. those's give caps off to a out of 43 surveyed who said rate hike is coming. the consensus was no. they were right. the key force probably driving them now. from look at another chart our bloomberg library that shows you three important metrics. this is the key rate for the reserve bank of india, from 6% to 6.2 5%, the first hike since 2014. this yellow line is oil prices. they have gone higher. india is so dependent on oil. come cpihat it has hit 4.6%, the target 4%. that's why they felt they had to act. there is hope. their statement had a dovish tilt. , thesaid one keyword decision of the monetary policy committee is consistent with the neutral -- there it is -- neutral stance in monetary policy with the objective of achieving the medium target for the consumer price index inflation a 4% within a band of plus or -2%, while supporting growth. means wee saying th

that was the former reserve bank of indian president. brendan is still with us. indiaading with the fed to slow the pace of tapering. the fed said they are not likely seeisten unless they choices starting to hurt emerging markets. brendan: it's to some degree in when theyrst policy focus on america rather than the emerging markets. is thing i would carry on that the emerging markets have in many ways been the focal point or the epicenter of the credit inflation or credit bubble during this cycle. we know from the good work of the imf that the concentration of over leverage corporates is very much in the emerging market. any's were the risk lies if general pullback in credit happens. hold those thoughts because we just want to talk a little bit about what are those things that has come around to an anniversary and were talking uae, saudi arabia, the egypt, and bahrain cutting their ties of qatar. -- their ties with qatar. qatar seems resilient. it has an fine without state aid. we got half the predicted loss. we will continue to grow our network in order to get into pro

hear from theg to reserve bank of india 24 hours from now. em to start hiking rates as well. kathleen, stay w. we will ack johanna in hong kong. we were talking about this trimming of the balance sheets it was like watching paint dry. has a lot changed? >> there was a lot of global optimism. in an environment where the central bank would taper, people were not worried. risk assets all rallied last year. we are seeing more desensitization of growth -- growth.onization of you were always going to be seeing more criticism, especially from more vulnerable economies. there is a debate about whether the fed should care about global spillovers. it hitsshould care if domestic conditions in the united states. it is not clear these conditions have been hit. based on indications we are getting from jay powell, etc., it seems like they will keep going. i think the situation is relatively resilient. the shocks have not been asad as they were during the taper tantrum's. markets have been differentiating across asset classes. markets may be better able to ab

of people will concerned and has might be rolling. europe, the european central bank is ready to discuss taking the big step toward less monetary stimulus while the reserve bank of indiamping in with its first rate hike in four years. kathleen hays is here with what is driving the steps towards tightening. the ecb has not done anything yet, it is what something -- someone has said. kathleen: absolutely. they are on the verge of a pivotal discussion, the first one to seriously say, we know we are going to end the bond purchases, let's talk about when. forr pray it has been there six years and is a close ally of mario and has confirmed what is going on. let's listen. >> next year the governing council will have to make this assessment of whether progress so far has been sufficient to warrant a gradual unwinding of asset purchases. in making its assessment, it is important to consider the underlying growth of the economy and to what extent the growth isessment that we make passing through to wages and price formation. kathleen: european bonds, even though this news was out there, they were hit hard in trading today. investors are bracing for the ecb to end up with bond p

his sentence of brock turner, citing his age and clean criminal record, and the fact that turner and his victim were intoxicated. in a surprise move by the india central bank, the reserveia raised its benchmark interest rate for the first ti since 2014, the repurchase rate was increas 25 basis points markets haverging been rattled by the prospect of further tightening by the federal reserve. global news 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie: coming up, battle of the charts, emerging markets deal with the u.s. jobs market. this is bloomberg. ♪ vonnie: time for our global title of the charts. -- battle of the charts. matt in the u.s., our federal de reporter. >> i am looking at the labor data in the jobs report on friday. so much interesting stuff we are going through. ocused on this unemployment rate for prime working age americans. people between 25 and 54. that fell to the lowest level going back several decades. in may. that is impressive. the interesting story is the yellow line. it shows the percentage of the 25-54 population o

the reserve bank of india was forced to raise interest rates on wednesday for the first time in more r years. india imports most of its oil, which is made even more expensive by the falling rupee, pushing up inflation. last month turkey's central bank raised its main interest rate from 13.5% to 16.5% to try and stave off the fall in its currency. it meets again later and is expected to raise rates again. the weak currency is stoking inflation. it's running at over 12% and becoming a big issue in elections due later this month. bacteria, sally. thank you. —— back to you, sally. with me is dean turner, economist at ubs wealth management. looking at some of the issues and figures it is quite clear the dollar is on the rise and has caused some chaos in turkey. what is your take on what has been going on? we have to understand the reasons for the rise in the dollar. is it fundamental or is it to do with investor sentiment? our sense is that the shark moved recently is to do with the risk of sentiment that has hit markets, as we are well aware the concerns around iran, as well as the trade

off,ifferent reason, first reserve bank of australia stayed on hold all year, possibly next year. reserve bank of indiaalso keeping policy on hold. inflation started to rise. a hawkish tone to come out of their post meeting statement. gdp came in shock driven forecast recently so people are thinking there is a small risk of a rate hike but the reserve bank of india is probably ready to sit back. also on friday, when china's numbers come out we will be looking at their trade and current account numbers. buffers quarter gdp was negative , could that possibly show the vision that it will get stronger? ramy: a lot of things to look forward to. kathleen hays, thank you. boeing's plans to dominate the midsize market. we will be speaking to vice president of commercial planes just ahead. this is bloomberg. ♪ >> it is a: 30 this morning. half an hour from the opening of trading. 8:30 this morning. half an hour from the opening of trading. ramy: you are watching "daybreak asia." paul: all trade agreements with the u.s. and the trump administration pushes ahead with tariffs. the warning came as commerce secretar

rishaad: looking at the central regard, but also the reserve bank of india later on as well. the g7. will there be any accommodation of the u.s., or will it be a split of the d6 plus one? let's have a look at the markets. here is sophie kamaruddin. reporter: asian stocks are looking mixed. at the start of the session in jakarta. elsewhere into tokyo, we are seeing fluctuation in a narrow range for japanese stocks. have south korea off-line for a holiday today. checking in on australian assets, asx 200 up 4/10 of a percent. highlight the canadian dollar moving in the asian thaton on an adp report, steve mnuchin is attempting to get trump to provide canada with an extension -- exemption of the steel and aluminum tariffs. haidi: thank you so much for that. let's get to the first word news with paul allen. paul: thank you. the white house has concerns over a location for next week's summit. it will be in singapore on an island, starting at 9:00 a.m. next tuesday. it has a long track record of hosting top-level international meetings. offer group security. singapore as well also ha

right now, the reserve bank of india. here is the key rate, repurchase rate.going to move it higher as they see inflation up to 3.6% as they see oil prices rising?/ that can be boosting inflation in the future. economists are saying the head of the reserve bank of india is holding this wildcard at the meeting. is he going to move towards that rate hike? he is ready to remove accommodations. the r.b.i. also moving in this direction. rising oil prices. said rate hikes are all things economists are saying could make them take that move. they will hold steady. that's a significant number saying they will raise the key rate. it the is growing pretty well. pmi numbers a little bit weaker. all this, there is external risk from the foreign exchange position. things like this. the policy statement will be closely watched. what they say they will do in the future. yvonne: we heard what the external shocks may have been talking about what the article, certainly quite fascinating. kathleen hays, our global economics and policy editor joining us from new york. australian p

we have the reserve bank of india, the fed, the boj, a lot of central-bank activity. i am happy.aidi: [laughter] economichays, global policy editor there for us. we will discuss the probability of the sydney banking sector getting an overhaul which was long overdue. ramy: perpetual, investment strategy had mac sherwood said that it'll tariffs will not upset markets not yet. this is bloomberg. ♪ ♪ we are counting down to the citi open. look at that beautiful morning with the futures up .6%, getting a tailwind from the u.s. friday close. the s&p 500 was up a tad more than 1%, especially with the great tale numbers are you i am you in new york. -- remy -- haidi: this is what sydney looks like. the u.s. economy shows strength. unemployment at a 49 year low, but tensions continue with wilbur ross in beijing over the weekend for the talks. take a look at the markets and investors. this is the head of investment strategy joining us now. were talking about the shift from buying everything in is all eurasian. is that the case? do you think investors can relax more? >> they still have a lo

we have the reserve bank of india complain about the dollar. arkets are getting crushed because of the value of the dollar and that is probably going to hold oil back is there is going to be less demand. vonnie: what do you make of the -- cheaper than the september contract? brian: that is a signal of stress and uncertainty. are not trying to measure supply and demand because you out ind of suss that libya will call down and venezuela would get a new government. you can measure interest rate risk, credit risk, but you cannot measure political risk. the white house says something different every day. it is not good policy or bad policy, it changes depending on who you ask. the bond market does not believe it. the bond market is voting there is not going to be inflation or growth and that is going to reflect on the broader markets. oil is definitely at the top of its range here because of all the things wrong with global demand. vonnie: our thanks to brian battle, trading director for performance trust with our futures in focus segment. it is time

and the former head of the reserve bank of india actually, at monetary conference, also in early may, on these same things. there needs to be some consensus about how to deal with this from the central banks. haidi: of course, talking about the rba not expected to move on rates, for this meeting or the next, to be frank. what signaling are we expecting? economists do not expect anything in 2018 or 2019. >> they have already held key rates steady for the 19th straight meeting. the longest time they've ever had policy on hold like this. let's take a look at what they are going to be looking at, as they get ready to put out their numbers, not just their decision, but the policy statement again. because this is a bloomberg chart from our bloomberg library. what they are waiting for, wage growth. people say they will be on hold until inflation picks up. you can see the wage price index, how it has been steady for a year, and even though there has been good news on jobs lately, that is something that they expect to be forecasting -- in fact, that maybe we will see this increase. holdis the

brazil, indonesia, words from the reserve bank of india, even an economy of that scale.from china on the risk of dollar repatriation in an environment where you have high levels of rates in the u.s. , and much more depressed levels of growth and the rest of it evolved world? world.he developed >> this is that the so falling -- peso falling, reaching a new low. do you think that this changes the fed's thinking at all? situation, orm. does the fed think that you took out the dollar debt, and you have to deal with it? ter.n: the lat i have not seen any evidence that the federal reserve is getting -- giving any consideration to the pleas. that is going to have to get material is worse and have -- materially worse and have a feedback loop into the eu before the even have it on their radar. what are far away from international -- we are far away from international conditions influencing eu growth. the u.s. labor market is quite tight by all measures. riskmes with inflationary to the upside, but we are still an environment globally where deflationary pressures are omnipotent. i

2017 which might give the central bank reason to consider a more aggressive rate hike and the reserve bank of indiao be goaded into action after the rupee fell between record low everywhere oil prices are. capturing market attention, weaker for the sixth session. even after the pboc softened it, macquarrie will pencil and six md a dollar on anticipated policy easing from china. manus: thank you. sophie kamaruddin in hong kong. breaking news from bp. to buy the uk's largest electric vehicle charging company. it is called charge master. they are the largest network of public charging points in the country. they have spoken about renewables, he spoke about the changing world environment and electric cars and basically saying the world is still going to need a heck of a lot of oil-based energy to have us get around and drive. they are buying charge master, the uk's largest electric vehicle charging company. thank you. let's talk about masters global. holding their first lateral summit. the meeting is seeking to reverse the dollar at spiral in relations that has been exacerbation -- exacerbated by findi

you have the reserve bank of india to announce their policy decision. and yet who said, fed, slow down. anna: they want the fed to slow down. we have more details on that. spain's new leader is expected to name his cabinet. a big focus on the gender split in his nominations. po let's make sure he doesn't make the faux pas that some of the airline bosses managed to make yesterday in regards to who can do the job. i know who does the job on the show. you are all right. that is at midday today. keep an eye on that. it can be a raucous affair. manus: it usually is. brexit will feature. let me to you more about what will happen in india. facesntral bank places -- a close call on whether to raise rates. the focus will be on the r.b.i. governor who heads the six-member monetary policy committee. joining us now is hot shot. is the hike in interest rates possible? there has been talk of no change, but isn't that we are looking at the possibility of a hike? guest: it is a close call. monetary policy has to balance inflation and prospects. expectity of economists

we are getting live pictures out of the reserve bank of india. india's central bank raised its interest rates for the first time since 2014 about 15 minutes ago. this is in order to curb rising price pressures. this is on the back of prospects for further tightening from the u.s. federal reserve and how that is rattling emergence -- emerging markets. we will have plenty more. this is bloomberg. ♪ surveillance." it is about wall street. andreas, i need desperately a mifid update. how big of a headache is it for allianz? andreas: i cannot go to sleep at night. that is how worried i am about mifid. it is analysts favorite topic. it is not keeping me awake at night but it is an issue. the reporting requirements across the board have gone up. that is all a good thing. what is not clear is what the impact is going to be on the thely on the street and other thing that concerns me that we still have not found in the marketplace a new pricing arrangement that everybody can live with and agree with. there is a huge gap between the gulf of expectations on t

of breaking a high which has been traded a few years ago. i think there, central-bank sensitivity is well emphasized. you have process of gold central-bank policy. mr. patel from the reserve bank of indian right saying there is a lot of liquidity withdrawal coming from the united states. and the central banks quantitative tightening approach, which currently, takes 160 billion out of the market. and at the end of the year, will approach 600 billion. the nextan impact, but question is what is the mandate of the central bank? global or local? under have only seen it exceptional circumstances that they were looking more at this approach. francine: this is your chart. last time he briefed me for why the germans were a rubbish team, you're probably right. this is the currency chart. do you like that chart? as we talked about before, when you have a team in the first game, you could see that. in many cases, there was slowness in the game. getting yellow cards, basically you are hitting somebody else. a sign that you are slow. and an old team is slower than a young team. i think that germany has to rebuild. on this: but quickly, chart, looking at the argentine peso, the brazilian rail, the ja

the reserve bank of india beating the y before, surprisingly strong gdp, surging oil prices, probablyy to contrive together to increase the chances of the cost of borrowing going up. and now china's main trade numbers are in protecting another strong month of export fueled growth by american demand. our chief asia correspondent is with us. talking about? let's get your views on the possibility that is looking me possibility -- looking evermore possible with global trade wars. enda: especially in asia we have a lot of export dependent economies. greg m earlier, not just about tariffs in china, it is chain, with the supply the companies that make components that go into made in chinese goods. patriot war would dampened sentiment, but it would spell through to dampening trade orders which would hurt companies and economies on the ground. a key risk going forward. this.d: tell us about what is the biggest risk out there? enda: it is that china and the u.s. don't reach or cannot rule on an agreement, something more protracted than at the same time as with tensions in the broader emerging m

indonesia's central-bank chief calling on the india reserve for more mindful repercussions of policy ghtening. amin, what did he have to say in his first interview with international media? shabby, he says tapering is an issue for central banks and especially emerging markets. to perhapsg the fed ease the pace at which stimulus is withdrawn. we saw indonesia at the heart of the emerging markets rout. it prompted him to raise hikes for the second time in several weeks. whether it worked or not, this is what he had to say. >> [indiscernible] this is the first thing we did. [indiscernible] after we are preempting this bout of uncertainty, our rupiah is stable. >> we have heard from goldman sachs saying you need a rate hike in the third quarter, if not in june itself. oure will continue on economic and financial and domestically [indiscernible] yes, there is a possibility of a rate hike, of course. it will be measured and depend on new information coming in the upcoming board meeting. >> you talked about being ahead of the curve. what assumptions are you making and howe fed next week clos

of how spread it has gotten. plan is for fed this to really accelerate. reserve the head of the bank of indiaeet tightening that [indiscernible] that could do too much in bringing down the balance sheet. endolas: as we get to the of this year, not only the fed comes into play, but other central banks around the world. if you look at the combination of the fed, the bank of japan, bank, inean central aggregate, their balance sheet start to shrink by the end of the year. that's the first time in a dead that is thee -- first time in a decade that we have quantitative easing. three or four fixed income people in the last two or three days i on these -- days on say that this long line is a consensus that the fed is saying to more rate hikes this year. volatility,ket trade looking kind of shaky, will the fed be well advised with two more hikes? nicholas: absolutely. when you focus on domestic u.s. data, it looks robust. when you look at headline inflation in the u.s., well north of 2.5%. the fed has ample reasons to hike another two times this year and they should be doing at least two or three next

of july the e.u. will slap punitive duties on u.s. imports worth two point eight billion euros. and for the first time in four years india's reserve bank hikes its interest rate is the weak rupee threatening in the u.s. spectacular growth. this is. business under our office in berlin the european union is taking a hard line in response to new u.s. tariffs the bloc will impose import duties on a raft of u.s. products beginning in july it announced today the new penalties come in response to increased u.s. to tease on imported steel and alimony and that took effect this months about three point four billion dollars worth of u.s. goods out suspected to be hit by the new measures ranging from cultural products to steel and bourbon whiskey that list could also be spanned it with time according to the new officials meanwhile fresh official figures show that the overall u.s. trade deficit has hit a seven month low it stands at forty six billion dollars that said the politically sensitive bilateral trade deficit with the e.u. and with china have widened. now following this story for us from france there is a financial correspondent only bhansa