let's kick off with the rupee. the finance minister has come out this morning and said the weakness of the rupee is down to what he calls speculative attacks. is he right? >> no, i don't think so. look, i heard that as well. look, i think the weak rupee is a necessary part of the policy mix in india. we've got, you know, triple deficits. we need easier monetary policy, tighter fiscal and a combination of that, we need a weaker rupee and we expect it to stay weak for some time to come. >> is it going to get back below those record lows? >> look, i think it's going to bounce around these levels i think betweenal and 61 over the next two to three months. but i don't think we're going to see a sharp selloff in the rupee as we have seen the last few months. we characterize the rupee really as being an early adjuster, the market has realized that this is a policy mix that india needs. the reserve bank has cut rates as they should earlier this year. so this is a natural conclusion of that rather than expecting we're going

the latter punished the indian rupee sending it to record lows earlier this week. eyes on key trade data out later today. joining us for more on india is the head of asia research and economics. p.k., good to see you. how much of a problem is the rupee for the country, down near fresh lows against the dollar. what can they do to combat it? >> the rupee stabilized, but the sharp depreciation of the past month and a half is already a significant problem because over the past two or three years, the government had actually encouraged corporates to go for external commercial borrowings and those who took that option are now in considerable trouble with the need to -- to service those debts at -- at a much higher effective interest rate than they had imagined at first. so that's one significant problem. of course, from the trade standpoint, it will probably help to improve the trade and current account deficits over the next six to nine months, but really the biggest problem in india is that the government is under a great deal of pressure to go for popularism over the

where is the rupee headed? steven o'hamlin joins us. >>> and a record heat wave is sweeping through the western united states with temperatures nearing a 100-year record in death valley, california. we'll have an update from the weather channel in the next hour. >>> plus, the rich keep getting richer. this according to the latest survey. find out which chiefs came out on top and which executives fell from grace. that full report at 11:45 ct. >>> right now let's kick off today's "global markets report." the update from singapore. hi. >> thank you, ross. that surprisingly strong japanese report and also weaker than expected china factory pmi data sent out mixed signals. but most asian markets managed to end in the green. the nikkei extended a three-day rally finishing higher by 1.3%. a few exporter stocks showed weakness as japan is the second largest export market. lost almost 2% today, but japanese banking shares led the rally. they gained around 3% today. the shanghai composite also reversed early losses to en

hundreds crowded near buckingham palace and he ruped ruped-erupted in cheer autos we have a king in waiting. >> we've been celebrating so we've been out in the pub having champagne. in san francisco, this tearoom also celebrated today. >> now we're going to have queen. >> i liz beth, prince charles, prince william then, their son, prince blank. it's amazing. >> it's exciting. third in line for the throne. you know? it's a big deal. 1k3 harry gets ousted. >> yes. pushed down a notch no. announcement yet on when the baby will be named. or what the name will be. >> yes. >> abc news will present a special edition of 2020 called royal baby heir to the throne at 10:00 here on abc 7 tomorrow night. >> we'll look for that. >> police in brazil discovered a small explosive dees vice at a shrine this week. the pope arrived to meet with young roman catholics gathering for world youth day. they say it had legal potential of causing fatality. the driver took a turn into a large crowd of eager followers a third branch of the naacp is calling on the government to prosecute george zimmerman for the traif yn

hundreds crowded near buckingham palace and he ruped ruped-erupted in cheer autos we have a king in waiting. >> we've been celebrating so we've been out in the pub having champagne. in san francisco, this tearoom also celebrated today. >> now we're going to have queen. >> i liz beth, prince charles, prince william then, their son, prince blank. it's amazing. >> it's exciting. third in line for the throne. you know? it's a big deal. 1k3 harry gets ousted. >> yes. pushed down a notch no. announcement yet on when the baby will be named. or what the name will be. >> yes. >> abc news will present a special edition of 2020 called royal baby heir to the throne at 10:00 here on abc 7 tomorrow night. >> we'll look for that. >> police in brazil discovered a small explosive dees vice at a shrine this week. the pope arrived to meet with young roman catholics gathering for world youth day. they say it had legal potential of causing fatality. the driver took a turn into a large crowd of eager followers a third branch of the naacp is calling on the government to prosecute george zimmerman for the traif yn

they try to bolster their monthly income by earning a few rupees here and there. now, in the dog days of summer, the river is dry. and mining requires a lot of water. >> usually the workers collect soil and whatever else they find from the pit back there. they mix it with water and stamp it with their feet. gravel and diamonds sink to the their hands.e they're heaviesti they pick up everything left over and dry it in the sun. >> yousuf tells us this man has been mining for diamonds for more than six years, despite his age. he says it's enough to get by on, and that in the past he's found some decent sized diamonds. >> if there's a diamond under the stones, the workers don't have to look long. you see them immediately because they gleam in the sunlight. >> but there's nothing's gleaming here today. these young people too are hunting for diamonds, breaking rocks even though it's more than 40 degrees celsius in the shade. the youngest of them is 13. his brothers say they're 16 and 21. the girl doesn't want to say how old she is. >> workers often have dust in their lu

compensation of 200,000 rupees has been announced for the families of the dead children. >> that's 2500 euros per child. the government is jamming to stem public anger, before the parents who have lost their children, such an offer is scant comfort. >> we will be back after a short break. >> with the latest on the prison revelations in the waves they are causing right here in germany. >> welcome back. the story of the nsa revelations here in germany is getting more and more tangled. after days of westerns -- questions over who in government knew what about the so-called prison program, now there's a whole new level of confusion. >> last night, germany's against tabloid reported that the german military new about prism back in 2011, apparently blowing apart the government's line that it was not informed. >> now the government says that was a different program which had nothing to do with the nsa. the confusion is only adding to the whirlwind around the government's point man for the story so far. >> for the second time in two days, the interior minister was grilled about his recent meeti

their user base and revenue -- both their user base and revenue, primarily focusing on distributions rupe gentles and viral channels on facebook. they did not focus on product quality, which is really interesting. the culture of that company in silicon valley is quite the opposite. the clichÉ in the valley is companies build it and hope that people will come. in zynga's case, it has been the opposite. they have not focused on building great products, they were just focused on scaling and distribution. it has not served them well. i am hoping that with the change in ceo, that is something they will go back to, focusing on building great, quality entertainment. >> "farmville" was considered great quality entertainment. if you look at zynga's model, it relied heavily on selling virtual goods to gamers on the facebook platform, from those virtual cows to the virtual seeds. it began to disintegrate in 2012 and the stock limited about 40%. what does zynga need to do to get back into the game, so to speak? is there another revenue stream they can tap into other than advertising and the pay to pl

the weak rupee has caused surges in fuel and other consumer items. >>> consumer prizes have rose for the second time in the month. the latest data from the u.s. labor department show the consumer price index was up a half a percent in june. this was the largest increase since february. gasoline prices were up more than 6%. clothing rose almost 1%, and the cost of medical services increased by nearly half a percent. but declines were shown in the prices of utility piped gas, used cars and trucks, and airline fares. over the last 12 months, end of june, consumer prices advanced 1.8%. and that's after rising 1.4% in the year through may. the overall increase in prices is still below the federal reserve's inflation target of around 2%. >>> and markets in the u.s. took a step back on tuesday. the dow jones industrial average ended down 2/10 at 15,451. that's after three straight days of record closing highs. to see how all that will affect stocks here, let's go to ramin mellegard at the tokyo stock exchange. how are things off at this morning? >> let's go straight to the opening levels fo

exports so in order to get around the current dollar in europe sanctions iran plans to accept its rupee payments for oil from india this is just one of those you know collateral things that's happening but what are the what are the effects of sanctions in the country a lot of people would say that the sanctions only affect the normal people the government is doing business as usual maybe not as you know it is officially as they would like it to be but does the fact that people don't know you know like we might not necessarily be friends that the iranian regime but it does have it does take a toll on the people and i mean even madeleine albright was famous kind of saying herself in the mid ninety's that five hundred thousand iraqi deaths you know which were children would be acceptable so the cost of sanctions i would say is quite palpable i mean what are your thoughts. again it's probably very unfortunate that madeleine albright said we don't know what's happening in iran right now but probably there is you know the implication of these things sions are very vivid and i know people who

>> the indian rupee plunges against the u.s.untry's central bank leaves interest rates unchanged.

india is to create demand for the rupee. trying to create demand for the rupee, which hit a record low last week. that move sent stock and bond prices tumbling today. you can see the rupee at that point at around 59. now time for the global markets report. ross westgate is standing by in london. good morning. >> good morning to you. we're getting back toward the best levels of the day. equities under water for most of the session in europe. advancers outpaced by decliners 3-2. a bit of data out today, which played into that slightly better inflation data than we might expect out of the uk. mark carney, the governor, doesn't have to writer a letter to the chancellor. the annual rate came in at 2.9, a tick up in june from may. people think that will be the peak. boosted by a rise in petrol prices. ftse 100, we are outperforming, just up 3 points. helping is rio tinto, one of the world's second biggest copper miner, iron ore miner. had record iron ore output in first half of the second quarter, up 7%. rio tinto up 2.7%. contras

we don't know how bad to detracts from his reputation but he had an affinity of a graphical element rupeend the object that was of the culture a and he had no interest a and stated so and felt that would get in the way to obstruct his intention. >> one thing i am curious about we heard the point of view and the eight gold that of where james agee was coming from to present the families. did walker evans also, was he trying to reflect what he saw a or was he a provocateur who were? >> right thing he was trying to ennoble what he saw. it is a deliberate process a collapsed object that you set up and down and down to make certain aesthetic decision in of where to place it and compose the images the and it is inherently formal and particularly an architectural use the buildings or the churches dilapidated as they have been frequently had structural integrity or gravitas to the object as described in the subject a and treated people the same way. not exactly with the same kind of treatment if you go back to one of his heroes was the french parisian photographer in he talks about up on wall str

inflation a big concern as the indian rupee at a record low against the dollar. keep your eyes on that. with that information, let's find out how the asian markets have performed. sixuan li has the details out of singapore. >> thank you, ross. as you mentioned, negative news from egypt, greece and china and india dampened sentiment in asia. china services sector lack luster in june. the weakness came from new orders dipping to more than a four-year low. the hsbc survey shows business confidence also slumped to levels we haven't seen since late 2005. on the back of the data, the hang high composite lost .6% today, ending below the 2,000 mark. the hang seng hong kong tumbled 2.5% in today's session. financials and real eestate stocks were lower. we don't have estimates for first-year, but many worry the cash crunch could hurt some highly leveraged property developers. the risk of sentiment also hurt the australian market. money majs aors banking shares e lower by almost 2%. a decent debut for suntori beverage with shares rising 1.5% from issue price of 300,000 yen.

also on today's show, india's central bank unveiled new measures to prop up the rupee. we'll have the latest reaction from mumbai. greek labor unions are protesting plans for civil sector job cuts. we'll have analysis from a former imf board member from greece at 10:20. and cracks in peripheral are appearing in spain. prime minister rajoy trying to stave off a political crisis. we'll have the latest from madrid. bull markets and global investors await ben bernanke's day in congress tomorrow, we'll find out why one strategist is refusing to get caught up in the qe frenzy. he says tapering does not mean tightening. dan greenhouse will be with us in the next hour. and i mentioned yahoo! we'll be asking what's in store for the ambitious tech giant as marissa mayer is one year into her turn around plan, that's 11:30 cet. any thoughts, comments, suggestions, anything you like, e-mail us, worldwide@cnbc.com. >>> concerns over chinese demand and wet weather in australia couldn't stop rio tinto from churning out a record number of iron orr in the second quarter. they posted a 7%

qe hasn't ended quite yet and so far not much physical demand in places like india where the rupee isw it really isn't sparking people to get out there and buy gold at market. tyler, over to you. >> all right. we'll pick it up here. thank you very much. headlines for you now. we start with microsoft which is shutting down its msntv service at the end of september. the service once known as web tv was purchased by microsoft for $500 million back in 1997. citi downgrading medical device-maker boston scientific from neutral to buy. it's fairly valued after rising 62% this year and significantly outperforming its rivals. and eli lilly's ceo is back at work. he had been on medical leave since may. ty? >> all right, sue, thank you. if prosecutors want to charge steven cohn of s.a.c. capital, deadline day, the statute of limitations expiration is approaching, but there may be other ways for the government to make a move. we'll describe those ways next. plus, a developing story. a runaway train carrying crude oil derailing and exploding in the center of a small canadian town in quebec. at lea

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real problems in india with the rupee. so in general, diamond prices are sluggish. but i don't expect them to crash. >> could they be fenced in the usa? >> these big ones? they're too big to fence. where are you going to fence it, who will come up with -- you're talking about diamonds maybe with $5 million, $10 million, $15 million per stone. so i don't think you can just flip them over to some fence. you but economic growth will come back. i think the outlook for diamonds come september, october, they will probably do okay.back. i think the outlook for diamonds come september, october, they will probably do okay. particularly in america. >> and if the pink panthers come to new york, they will be caught. these are amateurs in cannes. they will be caught in new york. right? >> i don't know if we'll catch the guys, but they may catch the diamonds. >> we'll leave it there. many thanks to mark rappaport. >>> stocks moved a bit lower today, but the big test begins with all the economic reports starting tomorrow. there is a fed meeting. we'll get you prepared for the whol

a recent hike in india's gold import tax, at the same time the rupee is weakening against the dollar, and wedding season, which spurs a gold-buying frenzy, is still a few months away. oppenheimer says given that india is the top buyer of gold, its consumption of the shiny metal is vital to keeping global prices stable. however, if india buys less of the yellow metal, which morgan stanley's head of emerging markets says it perhaps will, it may actually be good for india's current account deficit, as the money taken out of gold will likely be reinvested back into india's economy. while analysts say they will continue to keep a close eye on india, they're also watching china, which over the past couple of years has been increasing its purchase of the shiny metal. maria? >> all right. seema, thank you very much. the duel over dell has now entered a new chapter. carl icahn has upped his financing for dell, which could throw cold water on michael dell's plans to take his company private. coming up, don't miss david, joining me, along with the billionaire investor carl icahn, to talk about h

meanwhile the rupee hit another record low against the u.s. dollar. now 61.02.tepped in to sell u.s. dollars through state run banks to try to extend the slide. hasn't had much on an impact, though. india needs, of course, capital inflows to fund the current account deficit. the prime minister mr. singh says he'll meet with industry leaders to address the problem. other emerging market currencies being hit fairly strongly by fed tapering fears as well. dollar up against the thai baht and philippines currency as well. let's go back to egypt. we've re-established contact. let's just reframe the question again. following those reports of deaths in those clashes, what is happening now? >> reporter: well, it's a very fluid situation. again, they're pointing fingers at each other. the pro-morsi demonstrators say they were fired upon during predawn prayers. the soldiers in the military are speaking of an armed terrorist attack, an attempted one that they were able to rebuff and probably causing a lot of the fatalities that we saw. again, a lot happening on the politica

in india, the prime minister is also due to consult industry over the sliding rupee and the bloated currentount deficit. >>> fatal train crash in spain that left at least 80 people dead has been blamed on excessive speed. the train's driver, who is in hospital recovering from injuries, is under formal investigation following the crash and could be questioned as early as today. officials say the train could have been traveling at nearly twice the legal speed when it went off track as the investigation continues. three days of mourning have been ordered in spain. the prime minister tourd the wreckage near his hometown. >>> a slew of earnings this week kept investors on their toes. we have been talking to ceos across europe to get the view. >> it was a strong result for us in the second quarter. even given particularly in context of the volatility in the market. >> we need to be sure that we get more people into the workforce that the wealth is more and better spread and the news may be better. >> our long-term will of good chemical growth in asia is well and will happen. however there is a li

it was the mexican peso, th thennian rupe. >> the bigger one gets so much of the attention.f margins is an interesting one. the read through, is it a citi-specific issue or something for the banks more broadly to deal with? >> he said that they saw a ton of yield compression in the quarter but that he thinks the worst is probably over. and i think a lot of the banks think the worst is over. jpmorgan had the worst in class for their margins, 2.2%, a record low, because of regulatory capital. the cfo said we had to meet some of the levels so we had to set aside cash to do it. what investors like about citi, they are already there, they don't have to phase it in until 2015. no matter how it comes out, they're already there. >> we'll continue to watch citi shares, higher this morning. see if they hang on to the gains. >> the s.e.c.'s case against fabrice tourre is kick off. mary thompson live outside the courthouse in lower manhattan. over to you. good morning. >> good morning. opening arguments on jury selection which has been delayed today because there are a number of trials

currency and safe haven investment among indians that have become disillusioned by the volatility in the rupeeof buyers in india boost demand. the managing director says this time around three factors could weigh on demand. first, the gold import tax to lower the current account deficit, the did epreciation ine yen and wedding season is over. regardless of challenges, the professor of economics at columbia university says india has seen gold prices rise and fall over the past 100 years and the appetite for gold remained constant. even if india loses some of its affinity for gold which morgan stanley's head of emerging markets says it will, it might actually bode well for india's growth. they say the money taken out of gold will likely be invested back into india's economy. that's what india, which is dealing with slowing growth needs right now. regardless of what happens this time around, commodity analysts say they will continue to keep a close eye on india's complex relationship with gold. >> it is ai great point. thanks very much. from the demand for gold to the demand for bonds, over to ri