indian prime minister narendra modi has used his monthly radio people thatssure they cash crisis caused by withdrawing high denomination notes will he's. -- ease. he remains confident the chaos will be over soon, but he's not bearing the brunt of the pain. it is the nation's poor. longe: atms are drying up, lines at banks as folks tried to 1000 notes, 500 and but prime minister modi of assuring the nation that there will be success from his demonic does a show and move -- from his de-monetization move. halfway through the transition. 86% of notes are out of circulation, unused cash flooding the banking system. we are seeing 75 billion dollars worth of holdings in deposits at banks, prompting the rbi to introduce temporary managers -- measures to manage this cash. about these to us temporary measures to are the details? raise thee rbi incremental cash reserve ratio. effective starting november 26 and means banks parking those reserves will see negative returns. today, banking stocks falling. this morning, 10 year bond yields climbing on concern that demand for debt will app. ebb. as exce

up next, indian prime minister narendra modi is in tokyo. rishaad: the focus will be on whether he can get a key nuclear deal done, discussing the chances of that happening. this is bloomberg. ♪ ministere indian prime narendra modi has going to japan for two major deals, a nuclear power agreement and high-speed rail. rishaad: we are in tokyo. these big projects good for japan ultimately, i guess. >> yes, absolutely. that is what prime minister abe is hoping. nuclearficance is the energy cooperation deal, which has been in negotiation for years. is controversial and japan as the only country that has suffered a nuclear attack. it has always been cautious signing a deal like this with the nuclear power that has not signed the nuclear proliferation treaty. there is some concern that the byproducts of nuclear energy that come from joint projects with japan could help india's own nuclear weapons program. a lot of been negotiation around whether japan can pull out of his cooperation if india goes ahead and does another nuclear test. on the back

i'm sure the voters can lay this at narendra modi's door. he is popular, at least until these moves against black money. the latest approval rating was over 80%, so a lot of of world leaders would be lusting after that type of approval rating. ike think you can lay some of the credit at his door -- i think you can lay some of the credit at his door. you look at the last government, they had oil prices are $100 a barrel. , aroundw for mr. modi $60. window onpened up a gdp that has helped the rupee and has started to accelerate spending on infrastructure projects. a lot of clients ask me what can go wrong with india. back to $60, go oil, that would be a. -- that would be it. what more can they do in terms of the structural reforms they should be pushing through? >> this is where you have to give the administration credit. say, this is potentially another game changer for the indian economy, turning india into a single market, driving huge efficiency gains, so structural reforms have been important. this surprise attack on the black econom, you

well, coming up, prime minister narendra modi promising inside.o the cash chaos details on the way. you're watching bloomberg. ♪ rishaad: you are watching "bloomberg markets: asia". china spending billions of dollars on its space program. it is not really a state led effort. entrepreneurs are getting in and investing. as tom mackenzie reports, this is a story for the future. china'se in a desert, private space ambitions are taking flight. technicians putting the final touches to a one ton capsule called traveler 2, connected to a giant helium balloon designed to climb to near space, 20 kilometers above sea level. the company behind the project has lofty ambitions. it wants to commercialize travel by 2020. first, they have to test flight controls, capsule-two-control communications and the life support systems. >> the traveler 2 will be transporting this little guy, a two-inch terrapin. >> it is held by some as china's elon musk. he wants to make space travel accessible to as many people as possible, and by designing a craft with reusable hearts, he helps to keep tickets below $100

. >> indian prime minister narendra modi said disaster risk management should be dealt with seriously. he called for regional solidarity. >> we stand shoulder to shoulder with all the nations of the region. regional and international cooperation has an important role in providing a boost to our efforts. >> the framework sets targets to be achieved by 2030. they include reducing the number of victims, lessening risk, and increasing the ability of societies and economies to recover quickly. those attending the conference will share ideas on how those goals can be achieved. >>> people visiting one of the towns worst hit by the 2011 earthquake and tsunami can now get a high-tech glimpse of the immediate aftermath. they can don virtual reality goggles for a panoramic look at the devastation. the curators of a memorial museum in ishinomaki city say they want to keep the memory of the disaster alive. they have installed virtual reality headsets that let visitors place themselves right in the scene. one image shows the ruins of an elementary school and another shows locals painting a sign urg

the deal is expected to be made official when narendra modi visited japan next week. japanese prime minister shinzo abe came to a basic agreement with his counterpart in india last december. the pact is expected to include a provision to prevent the technology from being used for military purposes. if india connects another nuclear test, cooperation would be halted. this would be the first civil nuclear cooperation pact with a country that has not signed the nuclear nonproliferation treaty. >>> researchers from japan, the u.s., and britain are teaming up to analyze secret cyber attacks. the move comes aside cases in the world. the team members are from 13 institutions including japan's university and university of tokyo. representatives gathered in tokyo on tuesday and agreed to search for stealth cyber attacks and share countermeasures. they plan to release the results of their work to the public. a series of high profile cyber attacks have been reported in the past two years. including the theft of personal information from a public pension service. many of these at

modi. the agreement will allow japan to export its technology to india. the concern remains over how japan can monitor the country's nuclear arsenal. the two leaders met in tokyo on friday. it took six years for the two sides to narrow their differences. the pact is crucial for india. the rapidly growing economy is suffering from a serious power shortage. modi wants japan's support in building and running nuclear plants. but japan had to clear one hurdle over india's nuclear arms program. new delhi has conducted nuclear tests and has yet to sign the nuclear nonproliferation treaty. in the atomic bomb cities of hiroshima and nagasaki, people worry the technology might be used for military purposes. the deal stipulates that the trade is only for peaceful purposes, and it includes a provision on halting the cooperation. another document confirms that japan can stop the trade if india runs counter to its own 2008 announcement of freezing nuclear tests. >> translator: the pact presents a legal f

indian prime minister narendra modi is heading to tokyo to meet with prime minister shinzo abe, but the nuclear deal has drawn criticism because india has developed nuclear weapons outside the nonproliferation treaty. nhk world reports. >> reporter: the agreement that allows japan to export facilities and technologies related to nuclear power. india's demand for energy is growing along with the economy. for japan, the deed would provide opportunities for nuclear plant manufacturers. most of the country's nuclear power plants have been offline since the meltdowns in fukushima in 2011. critics contend japan should not do a deed with a country that has not signed a nonproliferation treaty. japan, they say, should have stricter standards as the only country to have suffered nuclear bombings. india refuses to accept the treaty's limit of nuclear weapons to only five countries. the japanese government, it states -- immediately if india were to conduct a punuclear tes. skeptics are not impressed. they say the door remains open for india to conduct computer simulations using data from past test

since prime minister laurent lamothe he -- narendra modi announced his plan, people of spent days queuing for cash and not receiving it. >> everyone is looking for money everywhere. where do we get money from? how do we buy food? no one is taking the notes, all we have. where do we get change from? >> the prime minister should have set up proper system and learned that these things would happen. reporter: the opposition has called today a day of rage. more than 90% of transactions in the country are made in cash. protests have been held in the lhi, and the financial capital of mumbai. but many indians chose not to join them. plan toport modi's clean up the black economy. but if they don't get cash soon, one of the world's fastest-growing economies will grind to a halt. katty: the u.s. presidential election is over but the drama is not. green party candidate jill stein is seeking a recount of the vote in wisconsin, michigan, and pennsylvania, places that donald trump beat hillary clinton. it is a move that has not sat very well with the president-elect, who has tweeted his discontent. i'm

narendra modi says the move is to fight corruption and counterfeiting. he gave a speech on tuesday, saying the 500 rupee note was being replaced and the 1,000 rupee note abolished at midnight. 1,000 rupees are worth about $15. modi asked people to exchange their notes for banks at thursday for a new edition of the rupee note and a newly issued 2,000 rupee note. people are flocking to atms to try to break down their cash in smaller banknotes. >> it's definitely a panicky situation. putting us into really trouble for two days. i don't have money today. >> modi said corruption and blackmony are spreading. he asked the public to help clean up the country. that is the latest in business for this hour. i'll leave you with the latest on the ♪ ♪ >>> moving on to other stories we're following this hour, japan has completed procedures needed to ratify the paris agreement on climate change. and can now join international efforts to curb global warming from 2020. the deputy permanent representative of japan to the united nations submitted the required papers to

india's prime minister, narendra modi, today defended his surprise announcement this week to replace some currency denominations as a necessary move to fight corruption and tax evasion, but the move has set off pandemonium at banks and a.t.m. machines across the country. millions of people have waited in lines to exchange their now worthless 500 and 1,000 rupee bills-- bills worth around $7.50 to $15 u.s.-- for new currency. some banks ran out of the new 2,000 rupee bills, and half of india's 200,000 a.t.m. machines have not yet been reconfigured to dispense them. the government said it will take two to three weeks to reconfigure the a.t.m.s. for the third weekend in a row, protesters in south korea have filled the streets of seoul to demand the resignation of president park geun-hye. tonight's candlelight protest was the largest yet with organizers claiming a million people; police estimated the crowd to be a quarter that size. president park has apologized for seeking the advice of a longtime friend who stands accused of fraud and abuse of power for allegedly using her connections

the prime minister, narendra modi, has helped transform the country into one of the fastest-growing major economies. many people label it as the next china. but in terms of taking the box, turning his attention to foreign policy -- we are joined now from mumbai. harsha, talk to me about foreign policy. we saw the british prime minister last week, theresa may, it was rather spiky. give us a context of how modi wants to reach out to the world. l claimway through, he'l success on his foreign-policy initiatives, and here's why. everything he has done, he used foreign policy as a tool to enhance opportunities. he was telling investors to come into india, with the possibility of a booming economy. he will tell investors that i am walking the talk. started in the neighborhood, followed it up, and then under his leadership, they got integration with washington improving dramatically. china, the most important upding partner, he struck negotiations with xi jingping. he's enjoyed a blockbuster order. except for pakistan, i think his foreign-policy clip has gone very well. he has visited nearly 40 c

modi immigration rules. may says she was willing to look at some aspects of a visa process if modi helps speed up the terms of indian nationals living illegally in britain. global news 24 hours a day. i'm haidi lun. this is bloomberg. angie: still to come this hour u.s.ing vulnerable to the election results. plus, what will a clinton or trump presidency mean for the fed? or analysis next. this is bloomberg. ♪ angie: investors are pricing in a hillary clinton presidency after one of the most divisive presidencies in recent memory. let's go to kathleen hays in new york. a hillary clinton they treat looks to be good for stocks, bad for bonds. why? kathleen: it has nothing to do with politics and every thing to do with uncertainty. the market is pretty much pricing and a clinton victory, a market analyst making that point. reporterloomberg news who posted a terrific guide to the elections, what to watch him a you can find that on lumber.com. clinton is a status quo candidate. she is not going to really rock th

they will use talks with prime minister narendra modi to explore what a future relationship might look like. sources told bloomberg that the wanted to boost the dividend. spokesman says the information does not provide a complete picture. two former aides to south korean arrested asve been protesters call for her to resign over and influence peddling scandal. 18 is accused of leaking documents to president parks friend at the center of the allegations. the other is accused of pressuring businesses to donate to the chairs foundation. president park has yet to be questioned by investigators. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thank you for that. when it comes to china's runaway property pricing, there appears to be traction from the major cities. rishaad: tom mackenzie has been looking into this. what is the story? tom: these curbs apparently are bearing some fruit. data shows sales plans falling in beijing by 40%, year on year. shanghai, down 18% year on year. transaction boeings were smalle

we will look at this story, narendra modi undersupply are -- under fire. on nodes could cut gdp by two percentage points. notes could cut gdp by two percentage is. an exchange fighting for its life in japan. with tokyo's increasing exchanges provincial are fighting for scraps. give us a background here. as you mentioned, it was 1949 in japan's postwar, mccarthy-led area when they reopened the talk you -- the tokyo stock exchange and regional exchanges. height of that boom, 1960, there were eight exchanges , and about 30% of the country's turnover took place on regional boorses. ance then, we have seen steady decline, and now 99 .97% of japan's trading takes place in tokyo, while only $100 million worth of shares trade elsewhere. theaad: right, what is state of these exchanges now? gethey are trying to companies to list there. there is a lot of dual listing with the regional exchanges out of tokyo. has companies that only list on their exchange. the problem is trading is very individualne investor said that when he tries to trade on the exchange, he has to

indian prime minister narendra modi has used his radio address to assure people the crash cash crisis will soon ease. it has been a chaotic time for india's people, but the prime minister is confident they can overcome this. >> he will stamp out tax evasion. he said the benefit for the country will come soon, reminding at the time he announced the decision on november 8 it will take 50 days to see it through. 500 have held december 30 two exchange them for fresh bills. modi also warning against using the port to recycle money. we are halfway through the transition. it is presenting a problem for a nation used to making cash outents, atm lending smaller bills. banks,amping up indian pulling the equivalent of $75 billion. this has prompted r.b.i. to have measures for central liquidity. shery: what are the temporary measures? >> the r.b.i. is instrumental cash reserve ratio. reservemental cash ratio. the concern is the rise i -- the rise in banking quiddity will have inflation. the 10 year yield fell 20 basis points in the week to december 25, on track for the biggest since april 29 this

applauding the prime minister narendra mody. he has five ongoing deals in india right now, trump does. >> thank you. >>> the s&p 500 may be sliding today. over the past month. guess what, small cap stocks are doing even worse. how come? let's find out with trading nation team. over the past, i don't noknow k month or so, we have seen the dow down a scant 1.3%, a four times worse performance. to what do you attribute the weakness of the mighty mights? >> i think there is just some nervousness heading into the election. remember, if we back up, really since most of in year, small caps have been doing quite well, and within a pretty placid market over the past -- over the past few months. about in late august we saw over 400 stocks in the s&p 500 were above their 200 day moving average. that has gradually slid down. we have seen the leadership become narrower and narrower each week since then. now it is less than 300 stocks. and that's what i think we're seeing a shift in risk assessment, and i think traders are particularly concer

theresa may is in india where she clashed with narendra modi over immigration. the u.k. to take in more students who want to study there but theresa may supports the students returning home after their courses. it has caused the number of students studying there to fall by 50%. janet reno has died. she served under resident clinton. she was criticized in her first year for ordering a deadly raid on the davidian compound in texas. she also got involved in some of the administration's other controversies involving whitewater. janet reno was 78 years old. tom: let's get a data check. the day before the election and extraordinary process we have been through the last few months. higher yields this morning. and even crude oil finally got the bid after finding it difficult. the next screen here quickly. the dollar is stronger. the mexican peso moves for secretary clinton. francine: similar to what i have. the mexican peso is rallying. you can see the stocks go up to 2%. again, that is on the news of the fbi. tom: marty schenker joins us. editor and icutive want to go where i w

india undernt of narendra modi's leadership withdrawing currency in 500 and thatrupee denominations, has caused headlines and disruption in the life of the common man. the bond yields of tumble this month. the fall in the rupee at this point in time, while it is an important milestone, it is seen as yet another level of the currency. the democratization story is the real important part of this story is theation real important part of this. it is why non-indians have been taking money out because of concerns around how sharp the short-term impact does the de -monetization impact cap. emerging market, are they in a better place. are they strong enough to withstand outflows? currency gets cheap, it becomes interesting to buy those markets. that is what will happen in india. ok.funding positions are this notable increase, sales of bitcoin are up, macau gambling revenues are up. there is clearly, the pace of the devaluation is beginning to develop domestic -- that is what happens. it is less whether you or i take out money, it is of the domestic employers lose confidence in the currency.

the signing is expected during modi's visit to japan starting november 10th. the agreement will clear the way to export nuclear power technology to india. the pact is expected to include a provision to prevent the technology being used for military purposes. if india conducts another nuclear test, cooperation would be halted. >>> japan and the european union have jointly submitted a draft resolution to a united nations committee. they're calling attention to the need for better human rights in north korea. the draft was submitted to the third committee of the u.n. general assembly on monday. the document characterizes north korea's human rights violations as long-running, well-organized, and extensive. it usuals the u.n. security council to continue to face the issue and calls on it to become more actively involved. >> the government of the democratic people's republic of korea continues to systematically and gravely violate human rights, depriving its population of political, economic, social, and cultural rights. >> a japanese delegate mentioned the abductio

will: this is from prime new tor narendra modi, a fight back against a shattered economy, but it came at the height of the wedding season, hence the outrage. circulationash in has been affected, and the cash economy has been brought to a virtual standstill. back toet's come france. we are going to weigh in on one of our top stories today, the nomination of francois fillon, the conservative presidential nominee. you took a closer look at his economic agenda. will: we heard often during the campaign, him being compared to margaret thatcher. he is an admirer of hers. he promised to cut 100 billion euros in public spending over five years, what are his plans realistic? aleshin sergeant has more. >> he is an old face in french politics. spent nearly a third of its gdp on social services, more than any other european government. welfare spending that will see a asmatic drop in 2017 francois fillon takes the country's helm to he plans to slash 105 billion euros over five years. accounts to our avoid bankruptcy. restoring the authority of the state. >> those in the private sector could work u