this is something the modi administration is welcomed. but i would argue bangladesh and afghanistan have independently come to the conclusion that pakistan has not been very helpful actor and sometimes it has, in fact, been a harmful actor. so if there is an intro conversation in pakistan the looks upon that, and sort of asks the question sort of takes it away from the india-pakistan relationship which tends to be neuralgia, perhaps that would lead to policies that would be helpful. in terms of the army chief, i don't really read too much into that. i think the indian army chiefs are, you know, completely under political control. that general has specialization pick this is more like they chose this guy, they like this general. it was a bit of a controversy he superseded to other generals and so had to say he's got great experience and this is what it is. i don't think, i don't read too much into the choice of a particular general engines of signaling policy. i look other things that are significantly technic signaling policy and terms of

so what is mr modi's clean ganga mission doing about it? i have come to the nerve centre of mr modi's effort to clean the ganges. as the prime minister bitten off more than he can chew? we have taken lessons from past mistakes. we are correcting it, so therefore there is tremendous focus and he is leading from the front. therefore, we are very confident we will achieve our target. but what we are not seeing as we travelled down the ganges is concrete evidence? fires will ensure there is a marked difference. but it isa there is a marked difference. but it is a long project. the thames, was the same, filthy 50 or 60 years ago. they also took 20 years to change the whole ecology of that. we will also achieve it. let's hope he is right, because the ganges sustains a unique ecosystem and one of the rarest animals in the world, the ganges river dolphin. what's more, they still survive in the main stretch of the river between the tanneries and the temples of varanasi. we have come down to the ganges and the hope was we might be able to spot the in

it's certainly true in terms of policies modi was elected in 2014 to be india's mr. development, the model of development, foreign investment, better economic management, all of those, there's a big question mark on a lot of that right now but that was what he sold himself as primarily, but it's also true that he satisfied an indian craving for a so-called strong leader and one element of being a strong leader is the idea that modi would not be pushed around, and i attended several of his campaign rallies in the run-up to the election and even though the focus was mostly on jobs and inflation, there was never a speech where he didn't mention the weakness of the manmohan singh government when it came to being slapped around by pakistan. there were both elements in it. certainly the economic aspect was dominant. eessentiallyially he's a strong leader, what he sort of styles himself as the indian version of putin or thaksin, erdogan, take your pick. that's why this becomes so important for him because anything that erodes this sense of him being a strong leader, which i

modi promised the inconvenience would be over by today. his self-imposed deadline to ease the chaos caused by the ban on cash ends tonight. i see reports that there are still ques outside of banks. has he managed to restore order or is he going to fail? >> like you said, he promised to end the situation today. let me just complete it. a few day a.f.c. the banned the cash, he said if after december 30 there are sharp come information my work or mistakes of bad intentions found in my work, i will be prepared r for any punishment. well, the situation is far from normal now. maybe in cities, line in frontor banks have come down a little bit but things haven't really improved for companies. the cash has been rationed since he made that speech. that is not going to change any time soon. we spoke to a few businessmen. we spoke to a jewelry maker and he said that he had to fire people and close factories because there is no work for them to do. in the short term, the situation is going to remain quite unstable. modi, for instance, has said the ban

modi is expected to talk about incoming plans. rishaad: thank you. record 392% gains. ♪ rishaad: let's have a look at the first word headlines. move saying it is time to on to bigger and better things after the u.s. punished rush for hacking the u.s. presidential election. the president-elect says he will meet with intelligence officials next week during russia rejects the accusation and says it has no choice but to respond in kind. north korean leader kim jong-un is said to have executed 140 official since he came to power in 2011. he says he ordered their deaths for disagreeing with him or failing to implement his policies. the total number of those executed is put at 340. oil is heading for its first annual gain in three years. crude also seeing its biggest for your rise since 2009. that's despite your stockpiles being at their highest levels. japanese prime minister shinzo abe public approval raising since is visit the pearl harbor. it a 4% of respondents agreed with the decision to visit pearl 94% of respondents agreed with the decision to vis

prime minister narendra modi said withdrawing the notes is a

the modi strategy of kind of building anti-pakistan sendment as a take tick, not a strategy. it's not possible. pakistan is way too connected and diplomatically to the u.s. and the region. it's not possible. so, i didn't hear that from anyone up here. i don't think any of us would advocate for that. there's great harm in that and great harm in eliminating all utah assist -- all u.s. assistance to pakistan if you want a stable relationship. want to be on the record saying that. russia's already engaged in the region. always have been. have a long history limit think that the china-pakistan engagement that we see in this closer embrace will bring the russians in more. they are -- have expressed some interest in the economic routes that china is pursuing in pakistan and building off on that to pursue their own economic interests. think a lot of that is more organic and independent of whatever the u.s. chooses to do. >> can i maybe pick up on the covert one? i think you have seen an interest in india now for several years to develop more covert and special operations capabilities

how is modi's currency recall going to slow down the india growth story? mentioned, we still don't know the actual impact. we are only going by forecast. the official number of the gdp for the december quarter will be revealing. having said that, the government is expected this from day one. even since president modi announced this de-monetization, he asked citizens to bear with them for three days. the key question is how long this is going to take for the economy to come back to normalcy. experts point out it might take thesext six months for banknotes to be replaced. that is the timeline we are looking at. angie: how our financial markets digesting all of this right now? harsha: november has not been a great month for the equity markets. december has been a relatively weak opening as well. there are a variety of global factors. we will see what india does on aecember when it meets for basis cut. moved with already its bank deficit. most importantly, a big change announcement in the gsc, it looks like the political fallout may delay the in plantation of

india, primeing at minister narendra modi's cash ban may have all been done in vain. we will head over to mumbai for details on that. plus, more reaction to the latest home prices in china. shimao property is next. ♪ right, a quick check of the latest business flash headlines. arabia may still list aramco in new york despite the law that allows victims of 9/11 attacks to sue the kingdom. reality is considering venues for what could be one of the biggest share sales ever. the decision is still "a work in progress be ar." he also dismissed speculation that saudi arabia would reduce investments because of the law. te group is being invested gated over allegations it paid money to a friend of park geun-hye in return for business favors. prosecutors slapped travel bans on top business leaders. leading developer is blaming shareholder dissent for the decision to abandon plans to issue new shares to fund the purchase part of a transit firm. stake inted to buy a shenzhen metro group and was ready to pay $8.6 billion, how well over major shareholders could not agree on the d

modi promising the situation would -- prime minister modi promising the situation would calm down. yoslyn: the deadline, frida r this to happen. that of course is going to hit where cash istry definitely king. we will see difficulties for people getting a hold of cash. 1000 rupees is 15 dollars. that aims of taking this note out of circulation had been corruption itat back into thesh system which has helped give the economy a better push. in the long-term, digital ensure tax compliance. the finance minister spoke yesterday, saying currency availability -- has increased despite the monetization. think it could be several months before the situation stabilizes. 's support seems to be holding up. why is that? rosalind: it is still holding up. thinkn see what people when the elections happen. there are about five of them coming up in the coming weeks. the difficulty in terms of -- impactingd demand and the economy, they have had to revise the growth forecasts. own from the original %7.8. of buyers not been able to get a hold of cash. beentions like this have tough for people. it has hi

that is when prime minister modi stepped up with this. this is a cash heavy economy. 80 percent of india's consumption is done in cash. itsman sachs has slashed fourth-quarter gdp forecasts. it sees a fourth-quarter gdp of just 4%. compare that with our recent estimate, taken after the de- monetization was announced. this is hitting the farmers hard. saying, maybe it will not be so bad. let's take a look at another chart. what you are seeing is a 10% drop in economic activity overall. banking will be boosted. for private wealth, the wealthiest are those being forced to move their money into the light. people who are poor, the poorest people, are not affected by this. the conjecture will wealthy people will use some of these two pay them fees through their accounts. a lot of bookings. retail sales. annette impact of only 0.2%, according to our team. year ending in march, 2017, will now grow by 7.5%. they were looking for 7.7%. not a big move. maybe we won't see much more rate cutting from the r.b.i.. not surprising, if you are on the monet

now to seema mody. >>> we're tracking all parts of the market rally. and one part of the market rising steadily since the trump -- since donald trump won the presidency is the home builders. industry group is showing gains amid the overall market rally. xhb up more than 2%. shares of pultegroup, lenner, dr horton and toll brothers up 3% higher. >>> more new record highs to tell you about. right now, the dow is up about 261 points. and in the month since the election, the dow has gained more than a thousand points of loot. how can you keep making money in this rally? that's next on "power lunch." ♪ it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average? >>> welcome back to "power lunch." a newsletter concerning spacex. i

india's modi is put to the test after promising to restores economic order. this is bloomberg. ♪ anna: welcome back. this is bloomberg markets, european open. 7:43 here in london. 16 minutes until the start of the final trading day. here sophie with the business flash. >> thanks. a three-year campaign to eliminate waste and improve cost effectiveness. the plan is code named the water line project, which she likens to the way a ship will sink if the crew takes on too much leggage. this year's restructures in the u.s. and europe has trimmed $700 million of expenses. it has been a tough year for china's stock traders. apart from those who have conquered one in 2,500 adrs to get a part of an initial offering. they surged a median 392%. that is the bers since 1994. helped by regulatory guidance that surprises i.p.o. evaluation, new comers soared even as the come posit index fell 12%. u.s. oil is heading for its first annual gain in three years. ahead of global production cuts designed to reduce the glut and stabilize prices. crude is seeing its biggest full year

seema mody. we'll take a short break here. when we come back we'll talk to ambassador nicholas burns about tillerson going to state. trump's foreign policy outlook. meanwhile, we're watching the dow. there are many things you don't want in industrial strength- like coffee. but there's one thing you do. you guys okay?! it's called predix from ge. the cloud-based development platform that's industrial-strength strength! >>> straight ahead on the half time report, investor john fichthorn will join us. >>> and why one analyst thinks the rally has a lot more room to run. we'll see you at the top of the hour, in about 30. >> thank you very much. >>> donald trump's impacts on markets is not the only thing weighing on some minds. morgan brennan is back at hq watching that. >> on the heels of the two tweets targeting defense programs, we took a look at other platforms that could potentially be focused on the trump twit pulpit. lockheed martin, northrop and raytheon. seeing a number of vessels break down and unit cost morse than double

seema mody with us for who has the greatest exposure to china. >> tough talk has reached a new level, 35% tariff on goods made in china that seems to be the major concern for wall street. companies like walmart which had $50 billion over the last 12 months, added tariff will hurt walmart's bottom line and drive up u.s. prices of chinese made goods, even other companies like mcdonald's and apple. the sector with highest exposure is tech with half of u.s. imports from china being electronics will by value it's three-quarters of mobile phones, 93% of tablets and laptops shipped into the united states. marvel, texas instruments, maxim integrated, sandisk reported significant revenue from china. automakers, german names like bmw, volkswagen which points out their sales from china. any unfavorable trade agreements or tariff proposed could mean or make business with china potentially more challenging for those auto players, kelly. >> exactly. >> i think we're starting to realize, let's not forget the dealmaker that donald trump is. that has been the hall mark of the career. the way you begin

for cnbc business news, i'm seema mody. >>> is it a bird? is it a plane? is it an amazon warehouse? the e-commerce giant is turning to the skies for its latest project winning a patent to develop airships equipped with drones to deliver packages. the airborne fulfillment centers would fly at around 45,000 feet and could provide a base for delivery drones. the application was logged about two years ago but only just discovered bay tech research firm. >>> back on land, the trouble may be brewing. the founder of run dmc has filed a lawsuit against amazon for the alleged sales that infringe the dmc trademark. >>> snap is telling investors it should be considered in the same class as apple and facebook. that is according to the "wall street journal." the paper also reports that s p snapinc is trying to reassure investors it will be like tw twitter, and languish. it looks like snap is trying to dispel confusion among investors. do they want to get a message across that they're not a one-trick pony? >> the whole idea around twitter is tweeting. one product that they came to market with. sn

back over to you, melissa. >> thank you, seema mody. for lockheed, f-35 was a much bigger deal, 20% of revenues in 2015. >> right. >> so here we have the dip in the afterhours session. remember, the ceo's just met with trump at mar-a-lago in florida yesterday. we did not hear from the lockheed martin ceo. she simply left the meeting. >> we speculated why one ceo would have something to say and another would not. it's right that the stock is down. this could be second derivative trump tweeting. so you're actually at a place where he's saying, yeah, go out and bid it out. the f-35 could easily be swapped out apples to apples and this could still be a very aggressive play. they've been quiet at lockheed. >> lockheed doesn't want to be on the wrong side of the u.s. government. u.s. government business was 78% of their revenue in 201 6. >> we made the point that boeing was probably a better stock to own given a choice between the two because of the tremendous percentage of revenues the f-35 is for lockheed martin. we actually said you probab

i'm seema mody with this news alert. we're watching shares of eli lilly gain momentum here on announcement that the fda has approved jardiance. eli lilly a player on this. shares up 2.5% on this fda approval. back to you. >> companies are not going to leave the united states anymore without consequences. not going to happen. it is not going to happen. >> that was president-elect donald trump in indianapolis yesterday drawing a line in the sand on american companies taking jobs overseas. that no doubt sending shivers down the spines of american ceos. shivers also being felt in mexico with carrier deciding not to ship out as many jobs to its plant in monterey, mexico. michelle caruso-cabrera is outside a carrier plant in monterey and joins us live. >> local politicians thought what donald trump was doing was very anti-capitalistic, hypocritica hypocritical, a politician trying to direct where capital and investment should go, they think that's akin to banana republic. we're outside of one of four carrier plants where they

back to you. >> seema mody, thank you, with the latest from hedge fund manager marc lasry. what do you guys thing? if hillary clinton had won, would we be talking about record highs on the dow, the s&p, the transport, the russell, day after day? >> most certainly not. i read a stat yesterday that a third of the dow jones industrial average's rally since november 8th has been jpmorgan and goldman sachs. it's a priority weighted index. the bank stocks would not be acting this way. they might have moved higher, we would have had a rate increase with the near probability as we have right now but they would not have been dragging up an index, in my opinion. technology stocks might have been doing better because they've actually held back since then. it's been a lot of rotation. for all intents and purposes, other than small caps, we're only up 5, 6%. >> there's no way you would have gotten this rally if you had a split house congress. the fact that you have people to make structural change in the first six to nine months. >> close to a republican sweep. >> it's an election relie

let's get to seema mody to tell us how they did. >> hey, jon. european stocks mostly higher today as investors continue to focus on the ecb's dovish report. the italian banking index witnessing its best week in four years and hedge fund investor mark lazry telling me exclusively that political uncertainty has made italy a good distressed stunt. >> when up sort of what ice going on in italy and people are nervous and worried, ultimately that does for what we're investing in, it forces prices down. >> meantime, the european stoxx 600 index posting its best weekly performance in ten months up more than 4%. good week for the united states and for europe. >> seema mody. got more on this breaking news out of 21st century fox. david faber rejoins us at post 9 this morning. david? >> thanks, carl. you guys of course covered the headlines there. in fact, somewhat unexpectedly perhaps for those who have been following it closely, 21st century fox making another attempt to acquire what it doesn't already own of bskyb, call it a little over 60% of the compa

i am seema mody. get your business from cnbc news. >>> holiday shoppers are planning to have hatch a moles in limited stock but expect them to sell fast. many stores sold out for weeks. they're interactive and begin the hatching process. >>> the largest mall has its first black santa. mall of america hired larry jefferson to wear the red suit and requests from kids on his lap. he says so long as there's love in your heart, anybody can be santa. perfect day to get to the mall, see santa, give him your wish list. >>> meteorologist krystal klei has details of the forecast. it will be cool. people can get warm in the mall. >> it is starting to feel like the holiday season, it is chilly out there. if you stick around for the extended forecast, it is very cold. let's take a look in wilmington looking outside. still dark out there. we are dealing with winds. breezy this morning, windier moving into the afternoon. you're going to notice it as you step out the door. here are current temperature readings in the

norenda modi as well. >>> tom kierein, we had an ugly, cold, soggy day yesterday. >> glad that is behind us. >> it was nasty. >> it was that cold chill that got us there yesterday. but now the rain has ended. we did get over an inch of rain. we did need the rain. we have been in a drought, but now it's gone. however, we are still rather damp this morning. 4 tower camera on this wednesday morning. you're going to notice the damp chill still in the air, but at least you can put away the umbrella. temperatures are hovering near 40 in nearby suburbs. right in town, the low 40s. mid-40s around the bay. and the mid-30s near the shenandoah valley and out into the mountains where they did get wet snow yesterday. while the rain is now exited the eastern shore, just a few lingering sprinkles along the atlantic. hour by hour into the afternoon, we'll stay hovering right around 8:00 to 9:00. then it will start to jump into the mid-40s as we get sunshine later in the morning. then into the afternoon, we will touch the low 50s. that's around 2:00 to 3:00 this afternoon. storm team 4's ten-day outlook

seema mody. markets are hitting some raps in the states, of course, as the march to 20,000 on the dow continues. let's bring in art cashin, ubs director of floor operations. given up a little more on the s&p as we've gone along this morning. >> it's not actually disturbing but it's annoying that this watched paot we're looking at here, the dow slipped below 1,900, that may begin to dishearten people a little bit. the interesting thing we've been saying is that while they haven't gone through 20,000, they haven't strayed too far from it. so that's been reasonably good. i'm beginning to see some signs of selling in asia, particularly in the emerging markets and that may be the other side of the coin on the trump rally that they're beginning to wonder if he's going to look for border adjustments and other things that may make trade a little bit more difficult, and they're going to have a tough time with their companies over there making things whole. now, it might just be short and temporary, the ab

for that and the rent of the news before the bell, we turn to seema modi live at cnbc world headquarters. >> wall street will try to head into the holiday weekend on a positive note. futures are higher. storks did sell off for a second straight day yesterday. the dow has not had a back-to-back loss since before the election. the dow jones industrial average still on pace for a seven democratic week winning streak. the dow falling 23 and the nasdaq slipping by 24. now, consumer reports says it can't recommend apple's latest macbook pro on concerns on the battery life. the first time the magazin has ever withheld a recommendation on the apple life. it says it tested three different models and the battery life varied widely. something customers have also complained about. switching to amazon, amazon says procrastinate all you want with your christmas shopping. it's extending the deadline to order items with the prime rush delivery service which is available in 30 u.s. cities. you have until 9:45 p.m. on christmas eve to ensure delivery by midnight on christmas day. great news for the last-m

. >> seema mody in the newsroom, carter, it can create a buying opportunity with wine stock? >> there is a lot going on here. commodities, again, you have butter, eggs, cheese, you have, of course, steam and gold, but what i thought i would set up is the current spread from what you saul salt or food stocks and raw industrial commodities, the objects are clear the blue line is raw industrials, the lager, the green line, food stocks, in the middle orange is all commodities of which these two are a subset. this is the chart absolute. if i were to freeze all commodities and hold them as a constant across the screen. there's the orange line but a different way. all three absolute. i'm going to expose the spread between the lagers and the leaders. let's do it on a longer term. there they are, slurkts five years, raw discrims up here. food stuff is down here. here's the spread. let's do it even longer term. this is since all data begins. here's the spread. now this has only happened five times in history, where you have harder basis points and spread. so 15% in either direction, in

seema mody. >> leadership change, the company announcing that ceo to retire on january 22, 2017 and that kathryn mar necessarilio to become president and chief executive officer from the outside. carl icahn, the biggest shareholder in hertz global says she is the right person to lead hertz. we're looking at shares moving here after hours. keep in mind, this is a company that has been under tremendous pressure this year. shares down about 50% year-to-date. disappointing earnings, plus the rising competition from ride-sharing companies like uber, melissa. >> seema mody, thank you. host of other problems that seema had said, facing her prior to this change. >> well, listen. we're going to talk about tech and the meeting with the president in just a second here. here's a great exactly of carl icahn, a guy for all intents and purposes, looks a lot like our president-elect. they're just looking at stuff -- on the wrong side of history here. so ride-sharing is going to destroy a company like hertz, doing this. if you just look at the rise -- >> how did you just weave in -- >> it's not a politic

rate decision -- we get the first policy modi's crashsince cap -- cash crackdown last month. the central bank has cut its four-year

. >> for that and the rest of the news before the bell, we turn to seema modi live at cnbc world headquarters. good morning, seema. >> let's start with markets attempting to resume the upward climb following the fed's first sbefest rate hike in a year: it could raise rates three more times next year depending on the state of the economy. the dow with its worst one-day performance in more than a month. the dow dropping 118, nasdaq falling 27. major banks are already respondings to the fed rate hike. jpmorgan, chase are raising prime lending rates effective immediately. this is the rate at which banks lend to their most credit worthy customers, used as a been ch mark for credit cards and small business loans. it's new, big and bad. yahoo! disclosing a breach that took place in 2013 that may have resulted in the theft of data of more than a billion user accounts. this is separate from the breach yahoo! disclosed in september which affects 500 million accounts. yahoo! says it doesn't ap prior the two incidents are linked. hackers may have stolen passwords, security questions and answers. yahoo! i

when narendra modi won a landslide victory two years ago, one of the first commitments he made was to tackle pollution in the river. he has promised serious money, he said he will spend more than $3 billion over the next five years on his clean ganga mission. but delivering on his promise may be one of his greatest challenges, because if anything speaks of the failure of government in india, it is the abuse this great river is suffering. there is no better example than kanpur, the centre of india's giant leather industry. india is one of the biggest producers of leather in the world. much is exported to the us and europe. but the industry is very polluting, with toxic chemicals used to soften and preserve the hides, and many of them are toxic carcinogens. a local environmental campaigner takes the on a tour of what he claims is india's dirtiest town. indian politicians have been talking about cleaning up the ganges for three decades. he says pollution has only got worse. take a look at this, i have to say, it really smells here. these poor people have to live beside this stream. looki

prime minister narendra modi said withdrawing the notes is a way to fight rapid corruption and tax evasion. researchers estimate that india lost over $340 billion in outflows of illicit funds between 2002 and 2011. >>> a wildlife conservation activist has called for efforts to preserve the habitats of rare species in the russian far east. director of the amur branch of wwf russia gave a lecture in japan. he was honored by a japanese foundation for his decades-long struggle to protect wild animals in the amur river basin. he explained that the area is home to rare mammals such as the amur tiger and the amur leopard and is an important breeding ground for rare migratory birds. he said that some 4 million hectares in the region has been designated as a nature reserve but said the area is threatened by flooding associated with climate change. and he warned that the spread of farmland in neighboring china and north korea is threatening the reserve. >> migratory birds, most of them are very endangered. china, in japan. so we cannot save the species without joint cooperation. >> he said he wants

seema mody is here. good morning, seema. >> good morning, tracy, good to see you. several major banks are already responding to the federal reserve news to hike lending rates. the banks lend to their most trustworthy customers. >>> facebook may be looking to add some original don tents to your news feed. the social media giant said it's has video feeds of licensed content including sports. to take advantage of things while people are watching stuff on their phones. >>> and now the market continues the upward climb following the fed rate hike. investors are grappling with the fed could raise rates three more times next year. dow marched towards 20,000. the best performance in more than a month. the dow dropping 118. nasdaq falling 27. tracy, back to you. >> seema, thanks for that. tough going when you're stuck behind one of these. next hear why police in new jersey pulled over the driver and charged him. >>> also making the road safe and tell you what new jersey transit is doing in the wake of this deadly train crash. wewe... get... angry. out of control, mad to the

seema mody. >> president obama has issued an executive order to block a chinese investment fund from buying the u.s. business of axe tron, citing risks to national security. ax tron, which does have assets here in the united states has said in the past if the -- the deal would be called off if president obama opposed it. it is a deal that is worth less than $1 billion, but the timing is interesting, melissa, given the wave of outbound chinese m & a we have seen in 2016. and is it a sign that washington is going to play a more pivotal role in cross-border m & a. >> all right, seema, thank you. let's be clear about this. this is a deal that was blocked on national security concerns, ax tron has a subsidiary in california. generates 20% of sales out of california and has a military application for its devices in satellite communications and radar. so that's the reason why he is doing this. >> you're probably going to see a lot more chinese m & a coming into the u.s. in 2017. i think that will be a theme, because that's how chinese companies are going to get the money out of the country.

seema mody is in the newsroom breaking down some of the big moves. >> it's been a big year for commodities, but as you know, not everything has participated in the rally. here's what we mean. let's start with the good. take a look at copper and plate yum up a respective 33% in 2016. the two getting a boost from the trump rally and now sitting near 52-week highs and then there is gold and silver, which have been hit hard lately but both still up double digits this year. and crude oil is also surging up 40% in 2016. on the flip side, the soft ages, things closely tied to farming are getting dragged through the mud. corn futures down 3% this year and there is wheat, down 14%. and sitting close to a 52-week low. there has been one bright spot, soybeans up 19% year-to-date. but prices are down about 15% from their recent high. the strong u.s. dollar as well as oversupply concerns have been a headwind for many in this space. whether or not the soft ags can firm up remains to be seen. >>> so carter, you say this divergence could create a buying opportunity of one stock. >> there is a lot going on

people had 50 days after the surprise announcement by the prime minister narendra modi, but 501,000 rupee notes would no longer be legal tender. what impact has the move had? the notes being withdrawn represented 86% of the currency in circulation. there have been chaotic scenes since the announcement in november with people spending hours queueing outside banks and cash machines to exchange currency. it is estimated 40% of cash dispensers are now empty, meaning people are unable to withdraw new notes. to make matters worse, much of india's informal sector is dependent on cash, resulting in the closure of some businesses. the government says the measure is intended to tackle corruption, reduce undeclared cash holdings, and boost tax revenue. cristiano ronaldo's agent says the real madrid star has been offered more than $100 million per season to move to the chinese super league. and that he has turned it down. he has said the money is not everything and the football star is happy where he is. with the chinese super league increasingly able to pull notable football talent is it only a matt

me question with with modi establishing the idea of surgical strikes there is a possibility this could lead to using these as basically domestic pressure valves, kind of like people used clinton as the monica lieu win city -- lewinski strike. >> see your hand back there. >> good morning. i'm from pakistan. want to know that what role u.s. can play in terms of course resolution. when there's a clear stance -- neal we nothing allow third party intervention and what it restaining the u.s. to go further? domestic politics of india and pakistan or the international -- some kind of international issues which are active and we can seal the kashmir dispute is not as activetive as the other issues. what restraining the u.s. from going further. >> you want to thick the its one, you're you're absolutely right, this is a prepares dent and -- precedent politically successful. toy meant to what you moon by other leaders, future prime ministers or -- [inaudible] >> using this to manipulate domestic pressure. >> i don't know about that issue maybe someone else can answer the pakistan side of it. on th

in india, the prime minister modi has taken a lot of steps. he has taken biometric data for almost one million indians. they are way away from doing that. this was a very radical step to take. tom: one of the streths of your book is you point out your critics. page seven, your colleague at harvard at page 122, they push back against ken rogoff. describe their caution against the curse of cash and your formula. kenneth: limit some is has come around to be a big champion of getting rid of $150 bills. that is fantastic. says money is coined freedom. i think there is a big difference from getting rid of big notes and all cash. i am for less cash, not no cash. tom: is money representative of freedom in mr. modi's india? kenneth: i think he would like -- and officials are so corrupt. i had a colleague who told her father sold an apartment recently in rural india. he gets back to the that lists have to price he paid because the official was paid off. this is routine in india. tom: ken rogoff on india. i will put this out on social. francine: we will

i think what is going on in india, modi, the prime minister of india, said we have several hundred million people who do not have electricity. i have to provide it. how am i going to do it? i like renewables. i'm going for solar. that is a big part of the program. and you know what, the access to electricity was not contingent on the u.s., on domestic agenda for movement. the political commitment in these countries is quite robust. >> you gave me a next segway for the next segment when you talked about states here in california. there is a ambitious climate goals. how much can the trump administration or anybody who is actually in the white house really effect that? how much could they throw a wrench in the works in terms of california's goals and commitments? >> well, listen, i think there is a lot of capacity in the federal government to facilitate or slow things down. so for example we passed and congress approved the extension of the protection and the environment tax credit renewables, part of how california moves forward in meeting their own goals is that there is an economic benefit

in india, nobody has been such a large figure in indian politics quite like modi. what can you expect for 2017? 86%is move to eliminate of india's hard currency, that is a large role of the dice. the ramifications will be playing out into next year. how does the rural population cope with that? on hisll weigh popularity. he has the biggest state election. this is seen as a bellwether to the 2019 election. nextgot a lot going on year and he's got to get these things right if they want another five-year term. on the leaders we saw in asia and their biggest challenges. in the meantime, sony's robot dogs were never the main success they have helped for -- hoped for, but a determined few are determined to keep them alive. this is one of the 150,000 or so sony sold. they had just made it to middle age in dog years before the division was killed off. later, theydecade still provide comfort to devoted followers. i think my love is much greater then when i first met him. he runs to me when he finds me and starts dancing. sony engineerrmer provides a lifeline. >> we were fir

more importantly everyone is watching out for what prime minister modi will say tomorrow. we expect some big announcements from him tomorrow. people are waiting for new year's eve. there arejokes people are waiting for new year's eve. there are jokes going around saying people might get in the queues tonight because they don't know what will happen tomorrow. just the implementation of it, the 2000 rupee note, it was not the right size to fit in the atm machines. so there were practical problems like that that made things had. even those services, such as doctors or chemists, who were supposed to accept old currency won't really doing it, which caused a lot of problems to people. could it have been done in a way that was phased in? a lot of people think probably not, because then people could have looked at alternative ways of getting rid of black money. but in the end, did this work, did this abrupt measure at work in a country is fast and massive as india? and these notes accounted for 86% of india's currency. a lot of people are very unhappy about it. thank you very much

india, narendra modi swimming along nicely and tell the monetization program he put into place. how do you see that working out? it was unexpected, i and uncertainty. it is likely to have a short term impact on growth. we have shaved a half point off of india's gdp growth, but still at 6.9 percent, still the fastest country in terms of growth in the region. over the longer term, this will pass and the point of this was to bring in revenue for the government by bringing in the informal economy into the official tax net. we are skeptical it will work the way it was designed, but let's give them the benefit of the doubt, and it has not changed our medium out term for india. rishaad: thank you. have a fantastic new year. coming up, investors welcoming reports that kate spade may be going on sale. details are on the way. ♪ u.s. markets ended lower, that the luxury bags sector was a bright spot in the wednesday session. 23% rise on reports of a sale. though u.s. markets closed in the red on wednesday, the luxury back sector was a lone bright spot. kate's fade rally 23 percent on rep

. >>> let's send it over to seema mody. >> cintas missing street expectations. the provider of uniforms for employees as well as first aid and cleaning products did register a slight beat on revenues in the 2017 guidance in line with estimates that shares which jim cramer has deemed ultimate trump stock as he expects it to fly higher when president-elect trump is in the white house has gained about 10% since the election. the company's earnings call set to start at 5:00 p.m. eastern. >>> startups reached multibillion-dollar valuations and many becoming wary. many startups are raising cash by piling on debt instead of equity. could issues in the private market spill over into the public arena? joining us now is founding and editor and chief at the information. welcome. >> hi, kelly. thanks for having me. >> the debt levels of some of these private companies do seem quite high. >> i think it is high if you compare way back to the last boom but higher than recent years. we have seen rising debt loads on companies and we are also starting to see reported information

the commission still needs to approve any changes before that fence can be modied today on capitol hill. anthony brown pulled a usain bolt pose before he picks his number out of the box. it did not bring him much luck in the lottery. he drew 34. there are more than 50 new members of the house. the lower numbers offer a better estate. >>> hillary clinton's former running mate tim kaine talked with news 4 today about the presidential recount requested by jill stein. >> as soon as she filed the recount, the clinton wisely decided if there's going to be a recount, we have to be at the table to make sure it's done well. people are entitled to know their vote was counted connectly and the results are accurate. it's been established that the russian government tried to ha so we're not expecting the overall outcome to change. but anything that will give people some confidence in the result, we want to be at the table to make sure that's done. >> the state of wigan their recount today. hillary clinton lost those three critical states by a combined margin of a little more than 100,000 votes. her

haidi: how is narendra modi managing the messaging, if you will? >> not very well i'm afraid. modiiday, prime minister addressed the parliamentary party, defending the idea of de-monetization and said this is stopped on the to a larger goal of combating corruption, indicating the government may have a few more moves up its sleeve that may be announced later. clearly you are seeing the government ship the goal posts. first, this was about fake currency and black money. now the government is talking about how this is a move towards a cashless economy that will empower the poor. in the recent parliament, you did see the opposition and the government trading charges against each other. done ins no business this session of parliament and nobody was willing to blink on the de-monetization. the action shifts to the next session of parliament in january with the budget session where the budget will be presented on february 1. also, watch out what this would st, the goods and services tax which may inevitably be delayed. haidi: thank you so much for that. that doesn't for this edition

. >>> let's go to seema mody. >> i want to draw your attention to telecom. at&t and verizon gaining substantially here. those large cap names at&t, frontier, advisory posting significant percentage gains. verizon with 1.3%. the s&p sector on track for best days since november 22 up almost 8% over the past one month. a lot of attention being thrown into t mobile which did spike just after softbank announced deploying more money into the united states. there is a speculation out there that if we do see less regulation around the telecom industry that will lead to higher chance of him renewing talks with t mobile. >> $50 billion will do that for you. >> joining me on the floor of the new york stock exchange. what you are looking at is a future that includes higher interest rates and lower taxes and a group that caught your attention as a result is -- >> home builders. we have seen outlaw home builders. if you look at what corporate tax cuts are going to do they are going to benefit companies disproportionately. you want to get the full benefit. when you look at

i'm seema mody. take a look at shares of avx. it says it's been notified by japanese electronic play eer kyocera. we're looking at shares of avx down by 5% right now. >> thank you very much, seema mody. time for street talk. daily dive into the key wall street calls of the day. holiday week, harder and harder to find them. four of them. >> these are all the wall street calls. not the ones we like. these are all of them. >> the ones we could find. finish line, credit suisse more cautious, lowering the price target to 19 from 23. it was unable to lapse significant execution efforts last year. that means the analyst does not have conviction that exhaustion will improve in the near term, so estimates go down. >> you wonder if this is sort of a harbinger of what is to come in retail this holiday season. amazon, and -- i wonder if -- the people we have spoken to, they said they're a little worried about the season. second stock is bank of new york melon bk. ray mmond james upgrading it. the target boost to 57 from 50. they have punderp

let's hand it over to seema mody. >> trying to find names not participating. take a look at shares of urban outfitters down about 3%. the apparel retailer gave guidance saying fourth quarter comparable sales in the low single digits signaling better performance than the rise predicted by analysts. despite the losses shares of urban outfitters up about 40% year to date. >> seema, thank you very much. joining me on the floor of the new york stock exchange with 25 minutes left in the trading day. what is your guess? do we do it today? after the fed meeting? >> hopefully the fed -- >> depends what the fed says. i think a lot is built into the market. i don't think we do it today. we are going to get there. the trend is definitely higher. we are approaching strongest time of the year. we have a running joke that we only invite you on on rally days since you are skeptical. you with this rally here. you understand why the market is going up at this juncture. but for how long do you think? >> we are going to get into the first hundred games until he gets a chance to p

let's go to seema mody. seema? >> leading the pack, rising to an 11-month high. bargain hunters are now stepping in, following the italian referendum. the italian banks are on track for their best one-day gain since mid july and are back above the prereferendum levels, up nearly 13%. skip over to monte paschi. state bailout for this troubled lender and government decree finalizing the deal could be rushed. the bank must raise 5 billion euros by the end of december to avert the risk of being wound down. ecb meeting. intelligence this morning says if the monthly purchases of bonds worth $80 billion euros are to be extended the ecb will need to change the program's existing procedures given the scarcity of availability to buy. that's something to keep in mind. euro trading at 107 against the u.s. dollar. carl? >> seema, thank you so much. new reports amazon go may only be the beginning when it comes to jeff bezos' plans. studying at least three formats of physical food stores including curb-side pickup and multiformat stores they're calling it. 2,000 locations acros

let's get over to seema mody. >> european stocks pulling back from highs we saw yesterday with financials among today's biggest losers. let's talk about the italian lender now falling to an all-time low earlier this session as you can see in this chart right here. here's an update. struggling italian lender estimating it will run out of liquidity in four months and not 11 months as bank previously thought. meantime, italy's parliament approved a government request for a 20 billion euro rescue loan to prop up the troubling banking sector. we have seen shares down 12% in today's trade. spanish banks in the red. eu's top court ruling against them in a dispute over variable rate mortgages. the court deciding that spanish borrowers are entitled to be fully reimbursed for excess interest payments for such mortgages. you can see names trading in negative territory. as we round out the year, wall street and many strategists are putting out their forecasts for 2017. and the currency forecast for 2017, the euro not only trading in parity with the dollar next year but going to 99 cents in the second