forwardseen rupee falling. we have also seen the equity futures retreat in singapore, index futures, so obvious markets are concerned about the impact that raghuram rajan's exit will have. have politically criticized him, but you can't deny his major contributions to india here. in terms of his major contributions, if you go back to 2013, when raghuram rajan took charge of the central bank in september 2013, just days after the rupee had fallen to a record low. key thing for him was definitely to lift the currency and also to bring down the volatility given that volatility in the one-month implied volatility for the rupee was 22%, so the biggest contribution he has made is that he has lifted india's credibility for investors, helping cut down rupee strength by more than half, and by propelling foreign-exchange reserves in the abouty to a record high, 25% came during his term. apart from that, he got the government to agree on an inflation target for the first time in the central banks history, and apart from mo

dollar-rupee opened much weaker. as you can see, we have managed to claw back a lot of those earlier losses. 1%.re down about 6/10 of the dollar is gaining against the rupee, 6/10 of 1%. 67.46, basically flat. equity markets, looking like this across the region. between a difference the nifty and the 10 sex. taiex. rish: david inglis for us. manus? manus: thank you very much. shares in other dobby's top banks shored -- abu dhabi's top banks soared. it would create the largest lender by assets middle east. executive editor for bloomberg markets tracy alloway is in abu dhabi. a timely position for you to be on the ground. talk me through the market reaction to this deal. it really did rock our local markets higher. nbad and first gulf both reacted positively. tracy: that is exactly right, and you thought it was going to be a quite ramadan in gulf markets. that is not what we saw yesterday. we saw some fireworks in abu dhabi. we saw shares of nbad raising 15%. you can't get any better than that. 11%.w shares of sgb up t

we see rupee volatility.ally rattled the stability that currency has tookince 2013 when rajan office. at that time was when morgan stanley put it under its fragile five list with the lira. he was able to strengthen or stabilize the currency of it. take a look at the divergence when it comes to ruby swings. -- rupee swings. he was able to cut one-month volatility by more than half. that has propelled the nation's reserves to an all-time record high. in terms of inflation, he brought that down big time from a high of 11.5% three years ago to about 5.7%. we are still far from the target of 5%, but these moves have really helped build india's credibility with investors and helped the country overtake a slowing china as the world's major economy. who replaces rajan? arundhats put forward, i baracharia, who would be the first female governor. also, the advisor of the finance ministry. others include the deputy governor, one of the key anditects of the policies, the economic affairs secretary of the finance ministry

as the rupee is down bank of india governor will step down. what does it mean for the bank's credibility? welcome to "the pulse," live from london. first is first. let's check out global equities, rallying, the pal and strengthening by the most in three months. there are signs that britons are warming, and it seems like the polls are heading that way. u.s. treasuries and gold are down slightly. let's get to the first word news with nejra cehic. nejra: thanks. italy's anti-establishment movement is poised to win elections in rome, threatening to derail a's reform agenda. it would give the italian capital its first female mayor. consideringin is selling stakes of the state oil company to china and india as he struggled to hit spending targets ahead of the next election according to two people familiar with the matter. almost $20d raise billion. the deal would not only cover budget shortfalls but strengthen ties with asia at a time of strained relations of the u.s. and europe. japan posted a surprise trade deficit in may as exports fell or an eig

in there as well, the indian rupee.ver the weekend, we heard that rajan is going to be leaving at the end of his term at the end of september. the r.b.i. selling dollars. that is according to traders in india this morning. manus: let's talk about some of the other asset classes. 2-year note's, the yield is rising. perhaps the most highly correlated with the view of what happens next in the united states in terms of interest rate rises. yellen talking about a new normal. chicago talking about leaving rate hikes off the table until we had 2%. a mismatchrd says between what we are saying and doing. are still at the second-biggest long position ever on record. positions up 29%. crude at thex bottom of the screen, up 1.1%. my argument would be that you , the lowestlar close since june 9. that is all playing into the nymex crude trade. $48.51. let's get across to heidi. 's antiestablishment movement is poised to win elections, threatening to derail the prime minister's reform agenda. support for the eurosceptic party would gi

that is economics of dollar-rupee.e we beginning to see an unraveling of emergency market stability as indicated by currency stability? mike: it is much harder when the u.s. is raising interest rates. that is classically the environment in which countries have the toughest time. they have been raising fx reserves, let the currency go down a little bit. at least they have got some flexibility. i would say, in general, you look at emerging markets and they have a decent bounce back again. tom: the idea of emerging markets is distinctive from developed markets. where does that stand? are they two separate worlds? into everybody converging having janet yellen be their central banker? mike: there is janet yellen being the central banker. then you have india as a classic example of the beneficiaries of weaker growth profiles. i think what you end up with is this underlying yellen factor. then you split the emerging markets into those on the good side of weaker commodity prices and those who are challenged. you see that day t

market,n roils the stepping down as the rupee plunges. has india given up on the fight against inflation? good morning. we are less than half an hour away from the european equity market open. looks like it is going to be a thumper if you are along these assets. you don't see this very often -- let's dwell on it for a moment. ftse upcks are up 3.1%, dax up byup by 2.9%, 2.8%. a shargh moved to the upside when it comes to european equities later on, and sterling is a big feature. for equities, absolutely on the front foot. caroline: phenomenal news that we saw, the great british pound point biggest move we have seen since december, 2008, currently searching up against every single major trading ld currencythe wor ranker. we are seeing the weakness in the indian rupee is the central bank governor steps down. he says he will step down in september when his term ends, managing to shape the indian rupee, as we hear that there is some state buying going on. the yen asg out of well, not going into the havens anymore, falling for the first time i

the rupeelook at in the last three years, he has strengthened it. in terms of stability, he has done so. in 2013, morgan stanley listed the currency as the fragile five along with indonesia and other currencies. the dollar-rupee has been slow and steady for the last couple of years. this propel the nations fx reserves to surge to an all-time high. have helped to build india's credibility among toestors as well, helping overtake china as one of the fastest-growing major economies. inflation has come down a bit as well. he said he was confident that his policies would carry through past his term. it would protect india from sudden capital flight. will lead toit outflows in the short-term until they announce his successor. long-term, people still see potential when it comes to high-growth, positive reform, and high caries. monday, they say, will be a tough day. angie: it has absolutely been under pressure politically. despite everything he has been doing well for india, except a little slow on tha

. >> it makes off with 10,000 rupees. monkeys, what are you going to do? >> okay, ready? whoa!othing should get in the way of the things you love. ♪ get america's fastest internet. only from xfinity. ♪ ♪ >> you can't edit around that? >> a jewelry store in the southern part of india is in a littlele bit of monkey trouble. don't take my word for it. look at this video. you see here this monkey pushed his way into the jewelry store. >> there you go. >> yeah. and you'll see he's hops behind the counter, makes off with 10,000 rupees before making a run for it. [laughter] monkeys, what are you going to do? >> i think we've all seen the hit bravo show million dollar listings. it's been on the air since 2012, and it showcases three relentless real estate agents as they earn a cushy living selling new york's high-end real estate. well, premiering in 2016, this show showcases one relentless real estate agent as he earns a crapty living -- crappy living selling new york's low-end real estate. ♪ living on the hills, don't have the money quite yet. . -- >> introducing the youtube sensation

the chart shows the dollar you losing ground against the rupee. the emerging of markets, expectations the fat -- they would delay tightening. alix: i was looking at copper in the commodity market. london, china and the u.s. all got hammered. no commodity was selling off this much. that was striking to me. diveet: let's take a deep into the bloomberg. alix: why was copper down so price ofs is the lme copper and it's forward curve. something really weird started happening to the curve here. so pricesckward, right now are more expensive than prices in the future. that is quite unusual considering the oversupply. what happened is you had a lot of metal being dumped on the lme. inventories rose 28%. inventory flowing out of china into london because prices were higher. that is why you saw higher prices in london. the question is why were they pulling out of china? some guy just wanted to come in smash the curve or is there something fundamental happening leading copper into london? scarlet: that is a question we won't know the answer to for a while. we

he grabs out $150 worth of rupees. it did not work. a monkey hightailed it out with the cash. wow. a prosecutor in ohio man announced today whether the parents of that boy who fell into the gorilla enclosure at the zoo will face any charges. the gorilla was shot and killed. the suit defended its decision to shoot the relet as necessary to protect the child. the boy's parents have been prost with criticism. we are on your sidwith some good news. americans are faster than ever. that is a slight increase from the year before. the number of people saying they are -- obesity has grown since the survey started in 1997. more people can have health insurance and fewer say they regularly smoke cigarettes. there is cause for some celebration. the miss usa crown is coming home to the district. >> district of columbia. was crowned the winner of the miss usa pageant. she beat out miss hawaii in miss georgia. she impressed or judges with a question about women in combat. she is a u.s. army officer tough and powerful and dedicated as the men. gender should not limit a person. she will use her cel

this is the rupee versus the dollar. this is converted, so it is really legit.t shows the decline in the ruby, then it shows a huge move downward and it stabilizes. hey, is this market and are venture and, what is happening there, etc.? joe: i know people are talking about -- rajan being very tough on on performing loans and regulators, so are people thinking the next central bank governor might not be so clear on cleaning it up? probably. he was very tough on inflation, but also financial reform. he was partly out stick, you could say. becausey that campaign he was so hard on the financial sector. and maybe you could interpret some pullingast back of his more stringent policies. right, there's a lot of questioning about whether the modi administration is as committed to reform as they are to rhetoric and the action may not be there if they are willing to get rid of someone like rajan, or at least push him out. the two were in close. the prime minister and rajan. there may be attempts by the prime minister and his allies, but will be a position be tough enough?

likewise, the rupee could weaken considerably in the region of 5% to 10%.s a discount factor that would apply -- that would be leaving.f he were i don't know why they would change in. if something is working well, why change it? we would be doing it for the wrong reason. guy: we are going to come back and talk about what is happening in emerging markets. he is going to talk about the fed implications. what will be the catalyst? is the rally still on? that story coming up next. a lovely day, london. stocks on the front foot. the london markets up by .7%. ♪ matt: i want to give you some breaking news on what is going on in turkey. the bomb blast, the car bomb apparently that exploded there is being talked about by the governor. he is talking about the blast and he is getting some numbers. i want to be clear that we have accounts,different each of which have come with different numbers as far as the injuries and possible dead here. the istanbul governor is saying 11 have died in this blast, including seven police officers. we have had a number of different peo

the group remembered brandon carranza and zoo like a rupees. authorities say the teen fell into the mccalney river in amador county saturday afternoon and were swept away or any more creek campground. one of the teens wanted to become a police officer and was well liked by everyone who knew him. >> brandon -- he did not -- he was humble. he would not hurt a fly. >> that's heartbreaking. it truly is. in the time that i've dealt with kids even though they are not my children -- they have truly touched my life. >> ruiz was a senior at the high school and the other had just graduated last year. the families have set up gofundme accounts to pay for the burials. >>> a new report recommends san francisco police officers should stop citing people who sleep on the streets. the city's budget analysts said writing citations and enforcing , quality-of-life loss, is costing the city more than $20 million a year. the san francisco examiner which has seen the analysis said the report recommends other city agencies should respond to those incidents. it goes on

the rupee fell to eight one-month low. maybe there was some intervention. how much of a loss is it that he is stepping down? it is a big loss because everyone respected him. he was doing a terrific job. he was probably the best central bank are in the world. it is unfortunate he will be leaving. a lot depends on who will replace him. believe me, there are many capable indians who can easily step into his shoes. the question is, which decision the leading party will make. that's something we will have to watch but it does create a great deal of uncertainty. vonnie: i know you are positive on southeast asian currencies but not invested in china yet. at what point will you invest in china? is it a big deal that it did not get included in the msci? a-a lack of inclusion of the shares is not a big problem for us. we are already invested in asia through specialized funds. most of the exposure we can get through the a-shares in hong kong. if and when the chinese loosen up on the foreign exchange regulations, then i believe asia will come into the four. ore. many a

so with a 5% downturn in the rupee, it shows the position of investors. david: as if an indian central bank change in brexit was not enough, we will hear from fed chair janet yellen. our bloomberg columnist. what do you expect janet yellen to testify to tomorrow and wednesday? >> the tone of her testimony will probably be almost the fo l to that after meeting last week. followingill be will the election after the testimony. take: does she have to into account the brexit vote on thursday, in toning down whatever she says? na: she said that it will be one of the factors after the june meeting. definitely this is one of the factors, and we might hear a couple of questions on that as well. david: thank you very much. now let's get an update on what is making headlines outside of business world. investigators are hoping to move a step closer to solving the mystery of the egyptair plane that crashed into the mediterranean. test the keyd to memory units of the flight data and black box voice recorders. they were recovered from the ocean last week. in kabul, afgh

they were eye pose bet the sacramento anti-fast six, the mexican movement and a rupe that claimed sees. >> we are able to keep them from proffering a rally on the steps. the violence was kept to a minimum could have gotten worse. >> these radical left wingers were threatening to kill us, threatening to kill myself, to blow my house up to be able to attack our comrades. they said they were bringing weapons to the event. >> a few moment oozing chp told me this is under investigationful right now no arrests. >> we'll be back with a look at the birth of a silicon valley startup that happened launch an entire industry and happened on this day in history. real cheese people pack uber flavor into ultra thin. sargento ultra thin slices with just 45 calories a slice- that's 45 reasons to layer, stack sneak, peek, beg, like, love. sargento- we're real cheese people. >>> if you're a tourist in times square you have to deal with elmos, pushy performers and hustlers trying too get you to part with your cash. do not. you have to contend with fake monks. the buddhist council of new york calling out t

the rupee is climbing. rastello inndrine mumbai. >> we have some clues.n the interest rate side i think what was very important for investors was a good news coming from the u.s. from the fed. the governor left the door open to more cuts. he says this tradition -- position is still accommodated. he said they would look for room to ease further. when it comes to his mandate there have been some talk that maybe he did not want an extension of his mandate. he was starting with a lot of humor. he did address that specifically. he put the ball back in the court of the government. now the government has to make a decision. david: the prime minister is meeting with president obama today at the white house. he will also be speaking to congress. what do the indian people expect to come out of this visit? lot. has been traveling a he's really hoping to get some investments to support manufacturing. there's a big need for investments in india in road and factories. in exchange tree has a huge market to offer for the biggest american companies. more than 1.2 billion

the rupee goes lower, the dollar shoots higher. lot of questions on the credibility of the government in trying to maintain a wall. you always have to with the central bank and the government, and he brought a lot of credibility according to global investors and economists to the central bank. >> and you can tell because the proof is in the pudding. in india's economy, india's markets have been outperformers relative to many of the other developing tight markets around the world. so the question becomes whether or not there's going to be the shake-up in the economy and the markets because of this particular business, but it was seen as a good move in rajan. but he's always faced criticism. he's seen as a global indian because he spent most of his life outside of india and is vulnerable to criticism. >>> the imf, speaking of the global economy wrapping up an official visit to japan, overnight they say there is some progress but they argue that the policies require an upgrade saying japan's nominal growth, inflation and budget surplu

the suit and the car matched rupe peefrtly and so did the interior and his tie. we go down the street and we stopped at a light and we were on the inside lain. on the right closest to the curb a red mustang pulled up with two mexican-american construction workers with their hard hats on. the radio was playing at high levels. and you see the driver -- i was on the right. the driver is on the left of his car. he looks down and sees the rolls-royce tire. he looks at the hood ornament. i'm watching his eyes. he sees me. his eyes go past me and he spots ali with the top down. and he screams ali, i love you ali. and the guy next to him starts screaming. ali, we love you. and he looks over with perfect aplum, looks at these two guys and says i love you too my mexican-american friends. and we pulled away. it was hysterical. >> you hear that story? >> tell us don, what it was like when the adoration and the entire nation of sighier would follow him on that run. >> it was a beautiful thing. they would all be chanting running behind him. and the people he would just be goin

>> 150 rupees. >> reporter: that's about two dollars and fifty cents.buildings in delhi, from which government officials govern may seem a world away and aloof from the suffering and labor of miners in rajasthan. in fact, india actually passed laws decades ago to protect them. there's a wide gap between what's on paper and the ground reality. here the combination of official neglect, social indifference and poor education insure laws are rarely enforced. this mine owner insisted that he makes masks and helmets available. >> ( translated ): they just don't wear them. they don't like to wear them. >> reporter: why not require them, i asked? "they'll just leave and go to the next mine," he said for their part, workers said they sometimes used masks while drilling, but in the blazing hot weather, they are suffocating >> ( translated ): it's impossible to breathe in them. >> reporter: gravis, which is funded by charitable donations from abroad and some indian government grants, also helps affected miners navigate the >> there is a lot of paperwork, a lot of

that's 10,000 worth of rupes. that's about $150 american dollars.he monkey said i want the cash and off he went. >> off he went. >>> let's talk about this picture of a new mother. shocked look on her face after delivering her baby. there it is. look at that expression. why is she looking like that? she was told she was having a little girl. she picked attagirl's name, she bought lots of pink clothes. when her baby was delivered and she saw the baby the baby was clearly a boy and you can see the disbelief all over her face. what? the birth photographer shared that photo with the hashtag ultrasound was wrong. [ laughter ] >> two mothers that can relate to that, huh? >> classic. >>> one last check of how our day is shaping up. beautiful. any clearing out there? >> couple boats behind us. they think it's a beautiful day. >> it's going to be gray. another hour. already beginning to see some clouds deteriorate. we will be mostly sunny away from the coastline for today. giving you a live look towards san francisco with the coast in the backdrop where it is

and you are interested in india because of rajan's policies, because he tackled volatility in the rupeewas so pro-reform. what do you do today with those assets? sasha: look around the world right now, india is by far the growth beacon. you may not agree with the government from numbers. many of our clients do not. still, i'm quite partial to something rajan said recently that india is the one eyed man in the land of the blind. i think that's a good analogy. you are struggling to find other areas of the world to put your assets and if you won a major growth market. scarlet: all right, thank you very much for your perspective. sacha: thank you. alix: slowing down frequency trading with a newly approved exchange. this is "bloomberg markets." ♪ alix: you are watching "bloomberg markets." i'm alix steel. scarlet: and i'm scarlet fu. alix: a big win for flash boys, with approval to become the 13th stock exchange. scarlet: erik schatzker spoke exclusively with the leader of iex group. >> it has been entirely the industry's choice whether to connect or not. i think we have grown to the second-

. >> does it out perform it -- is that based on if i'm a dollar investor or a rupee investor becausee to worry about the currency. >> michelle, i invested the first time in india and bought shares in hdfc bank. we have an 18% annual rate of return there. that's after depreciation on the currency of 11.5 to 2%. that will occur again. that's my top pick over there. but i think you can buy the financial services sector generally and most of the consumer sectors have a lot of upside over there and i think a lot of people think india and say poverty and pollution and that's the trouble. you got to look by that and look for really good growing opportunities. >> modi brought a lot of hope to india and investors in india. is that market, how is it priced in terms of valuation? >> it is not cheap. clearly, it's almost priced to perfection for what china is not. china is ridiculously cheap. where would you rather be. demographics and currency sold off in line is actually cheap relative to itself. you understand we're in a world where inflation in india really hasn't structurally been this low

the president's fiscal year 2017 budget proposes quad ruping funding to er to more than $3.4 billion which allows us to increase our force posture in europe by augmenting two permanent little stationed brigade combat teams with an additional armored bct as well as a fourth bct prepositioned war fighting equipment. with our non-nato partners, our goal is to improve their capacity to dealith conventional and unconventional threats. we have provided over $600 million to enhance security since the start of the crisis. our support consisted of training programs to enhance ukraine kaes defense capabilities, equipment and advisors to advance the implementation of key defense reforms. so far, we have trained 6 companies from ukraine's national guard and five land forces battalionons or rather in the process and one special operations battalion. while the scale of our assistance to ukraine is unique, we are engageded in similar capacity building efforts with other non-nato partners such as georgia and mull dole va. as sect carter has scored, the department's policy zillions predicated on an a