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tv   Trending Business  Bloomberg  August 3, 2015 10:00pm-11:01pm EDT

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energy producers to cut emissions and they say he declared war on coal a he said there is no plan b on climate change. follow me on twitter. we are having a look of what is been a volatile session. market,-pacific continuing, the route we have seen in recent weeks. littler: we are seeing a bit of that filtering across asia. we are off the lows of the day. down to japan, just about flat. working our way toward breaking even, if you will. the lunch break of their. over to japan, things are moving a little better. australia, the drop in commodity prices. i will bring it down in a moment.
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the exception of the commodity related sectors on the way up. southeast asia is looking like this. pay attention to what does happening in malaysia. gift, that is getting slapped. we are pushing toward 1998 levels. the last time you were at these levels. as promised, australia looking like this. in 30 data coming out minutes. retail sales a little bit better the expectation and revise up the may figure. it was revised higher retail sales, good. trade deficit about in line with estimates. the broader read is 15 straight months of a deficit, a trade hole in australia. every single sector is up with the exception of the miners.
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containment pressure. very quickly, let's wish a what is happening with the aussie dollar, a little bit up. -- let me show you what is happening with the aussie dollar, a little bit up. the rba comes out with their rate decision. we keep things unchanged. as with the r.b.i.. that is what we have. you can barely see the spike up. on the screen. 18% lower. other commodity related, you have the nyro and i can go on and on and on. that is the story. i will leave it there. rishaad: we have been talking about it. the resources and commodity stocks on the way down and continuing to slide down. big funds looking for exit
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sprint not to looking at prices not seen for years. here is yvonne man. is right.at the disappointing manufacturing data out of china put a damper on commodities. deepening concern that the demand for raw materials will weaken from the u.s. to china with china buying 40% of the world copper. the metal dropped to a six year low. we are entering another bear market from a peak. brent crude.out we are below 50 bucks a barrel now. since january. that is amid speculation iran supplies will exacerbate a surplus wants sanctions -- once sanctions are lifted. about 95l remain million barrels above the five-year seasonal average for u.s. refineries could take a
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breather some and did set a record amount of crude in july. throughy around august october, we will see things slow down for maintenance. a lot of people forecasting that things will continue to look on the downside. still no sign of relief from the oversupply problem which is putting more pressure on prices, not to mention a rate rise and the u.s. could be in the horizon. let's talk about gold. gold extended losses into a second today. palladium slid to a 13 year low. a more detailed look during the course of the program. we want your opinion. tweet does your thoughts. is slow down in china fueling that rba may cut interest rate. lookingnomists are not for a change. some say a cut could take place
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and the already historic lows we have right now and it could come later this year. a look at that and more detail. we have the rba rate decision later on today. 12:30 p.m. hong kong time and 2:30 p.m. in sydney. two other stories we are watching. we'll have zeb eckert in a moment or two. what this been going on. -- what has been going on. volatility. china open to negative and now on the way up. australia turning. which have been really sinking to the miners in a drag to the overall index for some of the other headlines. here is zeb eckert. zeb: we are tracking markets in china and the news chinese regulators had restricted shortselling of stocks. it is the latest move by the
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chinese government to stabilize the market volatility and the second largest equity markets. the recent drops we have seen, it limits borrowers. they must wait to pay back the loans according to statements we received from the shanghai stock exchange. those davis came out at the close of trade. the short-term selling, one of the key contributors to the volatility, the government working to decrease normal fluctuations in stock prices according to that statement. here is what else we are watching. the first person to stay -- stand trial for libor has been sentenced to 14 years. a former ubs trader tom hayes guilty of conspiracy. him, the judge said a message had to be sent. his sentence with double of another trader who was sentenced
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with freiburg president obama laid out his ideas to combat climate change and launching a battle reminiscent of the health care plan. -- plan is true criticism has drawn criticism before the plan was laid out in two states have planned lawsuits. rishaad: the chinese economy takes a hit. it tries to cut solution. that is on bloomberg.com. after this break, inflation issue in india while we have a look at the top priority. the central-bank make it course on the cost of borrowing. ♪
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burress shot a bank rate
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decisions in australia and india and bold expected to cost -- both expected to hold the cost. , a brief look of australia. nothing expected today. glenn stevens, the same problem all year. the slogan economy and a mining boom which is turned into a bit of a bust. guest: acted this stage, with where likely to see is the reserve bank of australia will be unchanged assessment. announcement today will be a nonevent. unchanged since the july statement. the reserve bank will probably reveal its hand with monetary policy on friday. if we see a downward revision to the bank's growth forecasts, it would suggest they do have a service position to ease and the second half of the year.
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certainly at this stage, the statement today will not be signaling an imminent move from the reserve bank. rishaad: what difference would it made if they cut rates? glenn maguire: this is the key question. one of the mechanisms the bank is looking for is for a weaker australian dollar to help that transition from the mining sector which largely was price insensitive currency insensitive given strong levels of demand to other sectors which are more sensitive to the level of the australian dollar. if they do see some weakness coming through, it will be providing additional monetary easing support to the non-mining sectors of the economy. that doesn't need to be balanced against concerns about what appears to be quite a hot housing market. and i think in the near term, those 2 offsetting concerns
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going to unchanged monetary policy stance in the immediate future. .ishaad: let's move it along not only central-bank. what about interest rate cuts in a country like india? cannot decide what inflation rate they want. well, one of the concerns not just in india but across asia and the bank of thailand to meeting this week. central banks generally are plundering the question, will further rate cuts acted these levels be efficient? in the case of the reserve bank of india, as they are moving towards a new monetary policy framework. clouded some of the impressions of the international investors of the efficiency in wishing the rbis working. it is taking a pragmatic and
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sensible approach and moving toward what is consider international standards for best practices. you are not seeing the transmission mechanism from the central-bank cutting rates to those rate cut being pushed through into the market by the commercial banks or nonofficial sectors actually working. the key thing to come out of india's meeting today is a slightly less hawkish stance on inflation. a better than expected monsoon may have dampened some of their concerns on inflation. i will talk about the monsoon and cannot dictate what will happen with prices and inflation to calm things down. glenn maguire: absolutely. it is important to remember india is one of the economies all along with thailand that to look as being an early warning metric of el niño and drought. that reflects that they have crops which generally have a
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short gestation period. thailand has three rice crops a year. +++ cropping and just station period. if you see it impacting agriculture, you can see it become apparent in economies like india and thailand first. after this stage, the monsoon has seen good rains and as a result some of the concerns are food inflation spikes. food is such a large component of the cpi basket in india. i expect that to dissipate a little bit. rishaad: interest rate decision in thailand as well. tell me about that for it is an economy suffering at the moment. a drought taking place. you mentioned el niño and
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something we have been talking about area is it really affecting asian now? risk, willre: at the allow to banks meeting this week. andt of monetary policy thailand as another that joins that club. look at thailand, an enormous amount the stimulus in the pipeline. the cash rate has been reduced significantly and the currency has weakened and the bank appears to want to use to augment monetary policies. a good deal of fiscal stimulus which is finally starting to find his way and the economy and to gain traction. given that environment, the bank of thailand will also basically be on hold. thailand is an economy where drought is starting to become apparent. though agriculture is around 10% is there,p, in effect
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concern would be if you start to see water rationing and manufacturing heavy sectors like around -- suggestl start to industrial production and the manufacturing sector in addition to the agricultural sector starting to weaken as well. events,at confluence of we think the bank of thailand will be easing again. another 25 basis points. probably in september given the bank of thailand is trying to get it -- and the bank to weaken and they are known to use the element of surprise. we were not rule out a rate cut this week to try to get a bad the policy augment announcements. the status quo unchanged in thailand will be part of the regional policy in action this week. rishaad: thank you, glenn maguire.
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reporter: gulf arab states have iran nuclear the deal after hearing from secretary of state john kerry. will expand corporations to destabilizing actions from iran and others. foreign minister's said it should lead to a ban on nuclear weapons and the middle east, a reference to israel. aviation officials have met their french counterparts to discuss the piece of airplane debris that may have come from the missing flight mh370 deeper the flapper on was started to paris. the park appears to from a 777 print animation 370 me the -- part appears to co from a 777.
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mh370 is the only such plane missing. two giant cranes collapsed. lifting a section of a bridge when they toppled over. one person taken to hospital but authorities do not know how many other people may have been inside of the damaged building. -- drawing aext line under it. the social media app keeps popping up. the details after this very short break. ♪
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rishaad: trending business with yvonne man and zeb eckert. onto social media. is the k's paris all sorts of applications and making headlines and will star with twitter. -- it is all types of applications. it is making headlines and we will start with twitter. seen sincevels not the ipo at 2013. all time lows. big questions around it. you go this is questions. how many people actually use it? the strategy going forward and what is the value? who is going to run it? the ceo?
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and jack dorsey. let's start with the share price. you are an optimistic person. yvonne: opportunities there. zeb: shares on sale. the lowest since the ipo. tornier issues from a this is perspective. jack dorsey wrote in as interim ceo and was cofounder and made a lot of changes already. and his side view as well. square, we understand by formberg reports, will file an ipo. how does he balance of the 2? yvonne: hard to be a ceo of two companies. zeb: and probably the securities and exchange commission. when being ceo of one unicorn is not enough. yvonne: let's talk about line, the chat app. neighbors, based in tokyo. refusing. in china, making the presence
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despite the band the government put on foreign apps last year. the merchandise, the pop-up stores very popular. some saying having so much fun. you can get a latte and get a told to back. going above -- tote bag. -- going above chat. some want it to china. the zeb: the pop of story. i will follow you. that is a social media check. rishaad: thanks, guys. doug williams, a former police officer in oklahoma city. he conducted thousands of lie detector test and eventually he mostne of the polygraph's vocal critics. he showed us how easy it is to beat the test. ♪
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>> in order to pass the polygraph, you have to understand how it is recorded. there are two different types of questions, relevant and control. relevant are those that pertain to the issue. is your first name gina? did you tell the complete truth on your application? controlled questions are interspersed. have you ever stolen anything or lied to someone you trust idiot? have you ever lied to get out of trouble? you have to showed no reaction whatsoever on the relevant questions. is your first name gina? first relevant. nice and calm. no fluctuations. a year to show a reaction on the controlled questions. y your first control
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questions. see how high it is? you could tell which question. here's relevant again. nice and calm. nice and calm. how do you do this? so utterly simple. on the relevant questions, you think about laying on the beaches and the waves. relaxingnice, calm, thoughts. anything in your background that would disqualify you from job?ng this on the control questions, think about falling out of a building as smashing your guts out? besides what you told me, have you stolen anything else? a stress reaction that causes a reaction on a control question. no reaction on the relevance reaction. pass.
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rishaad: let's check on the markets. i will not lie about that. hong kong and shanghai. japan heading toward lunchtime break. just off a fraction. shanghai between gains and hang seng is down 0.5% in this session. all of this background of gold falling and copper near a bear market. it is really playing out. up next -- helping to stop speculation. statement it to stabilize in the markets. on if they will work after this very short break. ♪
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rishaad: welcome back. extending losses for the second day to $50 a barrel. the commodities rout continues dragging down. copper is retreating for a fourth day. industrial metals in tandem working on those markets. chinese regulators are expecting
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to freeze out day traders and their latest attempt to stabilize the equity market. traders must now wait a day to pay back the loans, which should reduce fluctuations selling and buying back stock from the same day. forfirst person to stand convicted,een decided guilty. the messageid had to be sent to the banking world. another ubs trader has been convicted of fraud. tokyo -- david: let me talk to you about this commodities route. we are really digging deep on what's happening. because of the weather, it is continuing the out.
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china is slowing down. we are pushing toward very extreme measures right now. 84, a low weown, 10 had last week. we are pushing again toward those extreme levels. have a look at copper prices, the world's third's most use metal. we are 27% down. so we are nearing -- are we are near a bear market? looking back to this recent 9.2%, thet is about 1 move exacerbated by the manufacturing data out of china. that's what's happening. what else are we following? take a look at these commodity related currencies. there we go. brazilian real.
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it's at a 12 year low. the problem here is that the brazil central-bank -- inflation is on the way up. if you put those three lines together they are all affected. in terms of conundrums that policymakers find themselves in, it is rare when this happens, when you have ratings that are more or less the same. that is a longer story altogether. commodity prices are up. the other one hearing asia -- gain against the dollar. they goes all the way back to 1998, the depth of the asian financial crisis. the oil prices are also down as well.
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on friday, what we get from malaysia are the latest affect reserve levels. at 100basically billion right now. further, below 100 billion u.s. dollars, that is another sign that the malaysian central bank is intervening to help to smooth out the process. though,point, commodities, equities, and effects all down. back to you. rishaad: mining is very much at the top of the agenda at the diggers and dealers conference taking place in western australia. the city is known for a so huge it's simply known as the super pit.
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but now it is facing an uncertain future. >> in a country famous for mining, one line rules them all. -- one mine rules them all. it lists up to its name. australia's largest open goldmine of just 3.5 kilometers long and 650 meters deep. yet share produces up to 850,000 ounces of gold. isn from above, the pit almost the same size as the city. that observation is a little scary. the pit has come to define the city, and only 100 people work directly in the mine, 1/5 in the industry. in operations are due to end 2019. so then what? obviously, it is a living problem the government is aware
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of. the solution question mark for ? more miningh. -- mining. >> there are lots of other minds out there that are not as big, but there's a lot more gold to be found out there. paul: they are already planning closure but are not stopping ringing it out. --we have already got one we will continue to explore aggressively. paul: rumors are spreading that gold has been struck directly under the city. the joint owner of the conference was quick to tell everyone to call down. _-- to calm down. >> our focus is on the central corridor. central mining is to the city.
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the area is littered with ghost towns. the 1920's, it had 15,000 people and its own stock exchange. now only the pub remains, popular with state troopers, a reminder of what can happen when the rivers of gold run dry. paul allen, bloomberg. we will be live at the diggers and dealers conference in the next hour. a managing director will be joining us to talk about it. the slowdown in china is fueling the idea that china may be cutting interest rates. most economists expect no change, but expectations are rising that a cut may already happen later this year. china is the largest
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trading partner, so most of its exports are slowing and that's a great concern to the country's central bank. no likelihood of a rate cut today. ins already out a record 2%, the governor is also dealing with the potentially overheated property market in sydney. 25 of the 28 economists surveyed expect the cash rate to stay on hold, but by year's end, only around 63% expect them to remain on hold. the rest expect another quarter of a percent cut. a 90% chance of a basic point reduction within the next year. the governor is fueling speculation by saying that the option of easing remains on the table. are spurred bys
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the slide in australia's currency, which is a positive sign for the export economy. forpessimistic outlook industrial output in china in 2016 is shifting expectations for how fast the economy will grow, and how much it owns has fallen from about half from its peak. rish, no change at today's meeting, but watch the language as the accompanying speech concludes as to potential cuts. rishaad: thank you. we are getting a rate decision and are expecting another from the r.b.i. in 20 minutes we will be live in mumbai to figure out what the arts are that the governor will hold the cost of borrowing there today. online travel are receiving a buyout.
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this is the latest in a record number of chinese companies that will be taken private this year. there has been a 27% premium on monday. depositican ar has fallen. twitter could be right for a takeover. lowest since their the 2013 lifting, pushing it below $20 billion in market value. some say that could make it attractive to potential acquirers, and that could mean google as well. twitter is looking for a new chief executive. person for manipulating libal has been unanimously found guilty. tom hayes was found guilty of conspiracy to rake the benchmark rate. they said a message had to be sent to the banking world.
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it is doubled his sentence handed to another ubs trader convicted of brought in 2012. deutsche bank may be facing another investigation. this time, it concerns russia. reportercial crimes census this from new york. >> u.s. authorities are investigating deutsche bank for $6 billion worth of trades which were done on behalf of a russian client. donethese trades may have is allowed clients to move money out of russia, white passing u.s. sanctions laws. is investigation comes on top of at least two other criminal investigations the bank is facing. the bengals a had a change of leadership with the new ceo installed in recent weeks, so there's a lot of legal turmoil and a lot of mounting legal issues that the bank is facing. back to you.
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rishaad: keri geiger with the latest. john kerry is heading out to asia. he is coming to take part in the latest talks. tensions in the south china sea, talking with beijing. -- whating in nissat does he hope to accomplish this week? nissat: two things. it's clear that the talks of the transpacific partnership agreement on trouble, and it's going to be important for him to hat the u.s.ies t has a plan and an intention to try and bring these talks to a successful completion, despite the fact that one of the major stumbling blocks is u.s. demands for protections for its pharmaceutical industries. he will be talking about trade
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and investment in singapore today, and when he goes to kuala lumpur tomorrow, the south china sea tensions are going to be top of the agenda. they aren't on the official agenda, but clearly the u.s. wants to throw support behind it referred stance of the region, which is to get everyone behind a transparent, rules-based maritime order in which all parties refrain from actions that change the status quo, which would apply to china's actions to reclaim land over the recent controls. rishaad: what is the united states hope to see regarding the south china sea, with all these competing claims that there are? nisid: i think what they would love to see is a bit of a stronger position, for more unified position. you can't expect them to openly challenge china, and that might not be helpful in any case.
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if the u.s. can get support for this freeze on any activity that changes the status quo, if they can get progress on these long talks towards a code of conduct, perhaps even if they can't get all 10 countries to get behind that, there are certain countries that may want to move ahead and try and resolve a code of conduct, that might provide a proof of example that would bring other countries along eventually. in the final communique, anything that reinforces the idea that all parties need to refrain from actions that are controversial i think would be helpful. rishaad:. thanks. up next, barack obama talking tough on climate change, saying there is no plan b, but his plan a has already attracted criticism. ♪
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>> time now for the stories making headlines around the is poiseduerto rico for financial collapse, paying $58, 00 of the million due. as theices have tumbled economy stagnated and residents flee for the u.s. mainland. puerto rico owes about $5 billion over the next 12 months. myanmarorkers and young are struggling to rescue people. 47 are dead and many are needed in need of help. it has ruined vast areas of farmland. have agreed tors stop trading until mid-september to avoid price increases for
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consumers. president obama has laid out his ideas combat climate change, calling on states to cut emissions from power plants and potentially launching a battle reminiscent of the health care plan. the new rules have drawn criticism even before they are announced. speaking at the white house, the president said climate change pose the greatest threat to the human race. >> we are the first generation to feel the impact of climate change and the last generation that can do something about it. we only get one home. we only get one planet. there is no plan b. keeping the theme of the environment, coal is under increasing pressure from the green lobby but emerging nations remain enthusiastic. sea prices at a
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six-year low, sloping demand, and concerns about pollution are all in. michelle, how can these miners survive? michelle: the coal price is coming down a lot, and in china they have the concern. now we see two things coming up. coal miners are turning to other businesses and they have been trying to increase more coal s.port >> they have been investing more lar, cleaner energies, soa trying to slowly get away. rishaad: a gas. joseph: and nuclear -- they regard that as clean. those numbers have been going
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through the roof. rishaad: the question is how do they get blue skies back. 80%.al power is at jospeh: the book is fired generation. the interesting thing is that this is slowly declining, where nuclear and others are increasing sharply. you get backdio to blue skies? how do you get the efforts to do this? they will be urged, -- is seen asseen the largest polluter in the world. china is going to build more plans, and now that we see that, operators can do
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that because of the high operating costs. so perhaps more government subsidies. a the other hand, we see that central source of pollution is coming from the convection -- rishaad: it is very low-quality coal. jospeh: absolutely. but you mentioned two keywords. we have the economic choice, cheap generation, and the environmental choice. if you go for the environmental choice it costs money -- he was going to pay for it? -- who is going to pay for it? the big guys are suffering because their cost is going up, both in terms of investment, to lower the co2 content, the sulfur content, the nitrous oxide content.
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that costs money. so is china going to see higher power prices? that's the question. rishaad: thank you. we will take a break. does india's central bank have enough confidence in the economy to cut rates for the fourth time this year? mumbai, next. ♪
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rishaad: the morning in mumbai -- 50 minutes away. a rate decision taking place in the country. the central bank has already cut rates three times this year, will it do in a fourth? most economists say not at the moment. let's get over to jc london mumbai. ay seiling in mumbai.
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latestthe start with the recall between the government and the artrdi and changes in the monetary policy. he met with the finance minister over the weekend, a customary call. a price dropafter of the indian financial code that would reduce the central banks. while the fm has assured that no changes will be made without consulting stakeholders, the governor has chosen not to comment, and therefore we will be waiting to see if anything comes up. let's talk about what he's expecting -- no change expected, about three hours from now. the expectation is that he will leave the rate, the rate at
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which the central bank lends --ey to the central that they do show not predict the cut. what are some of the key factors in terms of having played out? there's the monsoon, a monsoon prediction in september is not looking good. we are also counting down to the first that rate hike in september, and watching out in terms of what's happening to the geopolitical situation, have --ly those that we will be watching to see how that pays out. rishaad: thank you. sunanda from will buy. -- from mumbai. the tuesday edition of "asia edge" is coming up.
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theill head over live to diggers and dealers event taking place. ♪
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>> with all due respect to people who think countdown clocks are gimmicks, we've got your gimmicks right here. ♪ mark: a staged event, and hillary's mom in center stage. first, the spotlight. shining on vice president joe biden who was the subject of column over the weekend. white house spokesman josh earnest got peppered at his daily briefing today about a potential biden presidential run. but ernest squirmed away like a delaware salmon. i actually have no idea what seafood they eat in delaware. an advisor to beau biden son is

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