:00:00. > :00:16.Sally has all the business and -- answers.
:00:17. > :00:19.Modi and Obama are together again, this time in Washington with trade
:00:20. > :00:25.So what will India's Prime Minister take home this time?
:00:26. > :00:28.And the bets are off for a summer rate hike in the US,
:00:29. > :00:31.but just how cautious is Janet Yellen, the most powerful
:00:32. > :00:48.Also in the programme: What is the fate of India's
:00:49. > :00:51.Will Raghuram Rajan keep the top job?
:00:52. > :00:54.Our team in Mumbai is across that for us.
:00:55. > :00:57.The leaders of the world's two biggest democracies will meet today
:00:58. > :01:00.in Washington for a working lunch at the White House.
:01:01. > :01:02.Business opportunities will be top of the agenda
:01:03. > :01:04.when India's Narendra Modi and President Obama meet.
:01:05. > :01:06.According to one estimate, some 30 US companies have invested
:01:07. > :01:09.more than 15 billion dollars in India over the past 18 months.
:01:10. > :01:12.And in the next year, 50 more are expected to invest
:01:13. > :01:32.With me is Gervais Williams, managing director of Miton Group.
:01:33. > :01:37.Good morning. Now, give us your take on how important this relationship
:01:38. > :01:42.is and who is getting the most out of it? It is an important
:01:43. > :01:47.relationship. India has lots of development opportunity. There is a
:01:48. > :01:51.large population which is ready to do more work and the business sector
:01:52. > :01:56.is not drawing good figures and growth at the moment, encouraging
:01:57. > :01:59.inward investment, and if Modi can get more investment from the US, the
:02:00. > :02:02.biggest investor of capital in the world, that will boost the
:02:03. > :02:07.opportunity to grow the economy and deliver on the promises. What are
:02:08. > :02:12.the hindrances? It is not easy for countries working -- companies
:02:13. > :02:16.working and investing in India. It is still much less educated than the
:02:17. > :02:20.average education in China even, for example, so there is a long way to
:02:21. > :02:24.go, and a huge bureaucracy holds back business. They want to invest
:02:25. > :02:29.but find bureaucracy holds it back. That puts them off after a while. It
:02:30. > :02:32.is a big area to deal with. Some sectors have found it hard, like
:02:33. > :02:37.retail, they have found it hard to set up shop in India, but I think
:02:38. > :02:41.things are improving, are they not, in terms of the barriers that were
:02:42. > :02:46.there some years ago. They are improving and the opportunities,
:02:47. > :02:49.infrastructure is also going at the moment, for example the Indian rail
:02:50. > :02:55.system, which was around 3000 kilometres, has only really added
:02:56. > :03:02.around 4000 kilometres since that time, so we need more investment in
:03:03. > :03:06.infrastructure. Now, for Narendra Modi this is one of several trips to
:03:07. > :03:11.the US. Remember his first after becoming PM, it was like a rockstar
:03:12. > :03:18.welcome in Madison Square, how is he going down having been in the job.
:03:19. > :03:21.I'm? -- being in the top job for some time? The world has been
:03:22. > :03:26.slowing. Not many economies are doing as well as India. It is
:03:27. > :03:29.actually a leading light in opportunities going forward and that
:03:30. > :03:34.is why the US are keen to engage on there. In terms of investment,
:03:35. > :03:39.something you advise your clients on, many like the IMF and others at
:03:40. > :03:43.the start of this year said India is one of the economies that will boom.
:03:44. > :03:49.It is growing faster than China. Your thoughts on how exciting it is
:03:50. > :03:53.as an opportunity? The opportunity ratio is improving. Some of the
:03:54. > :03:56.ratios are coming through. At a time when economic slowdown has been seen
:03:57. > :04:02.with poor US data coming through. We have seen slow growth, a recession,
:04:03. > :04:06.really, in Japan at the moment, and so from that point of view in a
:04:07. > :04:10.world context it is one of the brightest areas of growth going
:04:11. > :04:14.forward. OK. Thank you very much indeed. He will return in five
:04:15. > :04:15.minutes when we review the papers. Let's stay with India for a little
:04:16. > :04:17.longer. The country's central
:04:18. > :04:18.bank will meet today And it's a key time
:04:19. > :04:22.for the Governor Raghuram Rajan as his current tenure comes
:04:23. > :04:25.to an end in September. That's up to the Indian government
:04:26. > :04:30.and it's not made a decision yet. Rajan has also remained silent
:04:31. > :04:33.on this issue and this is making This report from Sameer Hashmi
:04:34. > :04:44.contains flash photography. Every two months when India's
:04:45. > :04:47.central bank meets in this building to decide on interest rates,
:04:48. > :04:49.the markets are usually Similarly, this meeting has
:04:50. > :04:56.been watched closely The big question on everybody's mind
:04:57. > :05:07.is will the governor Raghuram Rajan continue
:05:08. > :05:09.on the reserve bank of India post September when his term comes
:05:10. > :05:11.to an end? There are have been a series
:05:12. > :05:14.of events over the last couple of months which have
:05:15. > :05:16.put a big question mark It started with a senior member
:05:17. > :05:21.of Prime Minister Narendra Modi's party criticising Mr Rajan
:05:22. > :05:28.for keeping interest rates high. Most saw it as a political attack
:05:29. > :05:32.given Mr Rajan has had what many say an uneasy relationship
:05:33. > :05:35.with the current regime. He has criticised certain economic
:05:36. > :05:41.policies of the government, like the flagship manufacturing
:05:42. > :05:43.programme, and has also often played down the euphoria around
:05:44. > :05:45.India's economic growth. And what has added fuel
:05:46. > :05:48.to the ongoing debate is the silence of the Prime Minister Narendra Modi
:05:49. > :06:05.and whether he will give Mr Rajan When we hear from the central bank
:06:06. > :06:09.in India as to its decision on the cost of borrowing, we will update
:06:10. > :06:09.you, but now let's focus on the United States.
:06:10. > :06:12.Federal Reserve chair Janet Yellen says a UK vote to leave the EU
:06:13. > :06:21.could have "significant economic repercussions".
:06:22. > :06:24.The central bank is meeting next week to decide if interest rates
:06:25. > :06:27.She also reacted to the poor US jobs data from last week,
:06:28. > :06:30.describing it as disappointing, but that it was outweighed
:06:31. > :06:44.She talked about how a UK vote to leave the EU could have significant
:06:45. > :06:47.repercussions - that is on her mind as she gathers to decide on rates in
:06:48. > :06:54.June. The central bank meeting is next week. She also reacted of
:06:55. > :06:57.course to the poor US jobs data on Friday, describing it as
:06:58. > :07:02.disappointing. And that was outweighed by mostly positive
:07:03. > :07:06.trends, she said. Let's go to Sharanjit Leyl for the Asian
:07:07. > :07:10.reaction there. What are markets doing off the back of what she had
:07:11. > :07:12.to say? Well I am just looking at them now and they are all
:07:13. > :07:17.essentially higher with the exception of Shanghai. And of course
:07:18. > :07:21.all of that due to those comments from the Fed reserve boss Janet
:07:22. > :07:24.Yellen, essentially, as you said, she said the economy was still in
:07:25. > :07:28.fairly good shape and any increase in borrowing costs would be fairly
:07:29. > :07:33.slow and also reasonably low. So the fact that she didn't give any
:07:34. > :07:35.indication of when they would lift interest rates was seen to be
:07:36. > :07:41.somewhat good news by many investors here. There was a sigh of relief
:07:42. > :07:46.that her comments actually help to steady nerves over in New York and
:07:47. > :07:51.here and it was a huge relief after last week's dismal report on jobs
:07:52. > :07:54.from the US as well. We're seeing the Nikkei in fact gaining somewhat
:07:55. > :08:00.today despite the strength of the yen as well, so, really, you know,
:08:01. > :08:05.her comments in rejecting a real sense of buoyancy, a little optimism
:08:06. > :08:07.here. All right, we like optimism. Thank you so much. Nice to see you,
:08:08. > :08:09.Sharanjit. In other news: Saudi Arabia's
:08:10. > :08:13.cabinet has approved plans to diversify the country's
:08:14. > :08:18.economy away from oil with the aim of creating
:08:19. > :08:20.450,000 jobs by 2020. The National Transformation
:08:21. > :08:23.Programme also aims to cut public spending by 40% over
:08:24. > :08:26.the next five years. It's part of a number of initiatives
:08:27. > :08:28.announced in April. French president Francois Hollande
:08:29. > :08:30.says he wants Europe's largest hotel group to keep a diverse
:08:31. > :08:32.group of shareholders. The comments have been seen
:08:33. > :08:35.as a warning against China's state-owned Jin Jiang
:08:36. > :08:37.from attempting a possible takeover Jin Jiang has been increasing
:08:38. > :08:41.its stake in Accor, Greece must pay the International
:08:42. > :08:54.Monetary Fund about $340 million While a relatively small amount,
:08:55. > :09:01.it's the first in a number of repayments to international
:09:02. > :09:06.creditors totalling about $12 billion, which fall
:09:07. > :09:14.due in June and July. You might the grease brokered extra
:09:15. > :09:15.help in the nick of time in order see through those payments due in
:09:16. > :09:22.June and July. So, these are the markets and as
:09:23. > :09:26.Sharanjit said, positive reaction to the fact that interest rates might
:09:27. > :09:31.not be going up in the US soon, as in June and July. You can see the
:09:32. > :09:36.yen has weakened a little as well versus the dollar compared with this
:09:37. > :09:41.time yesterday, which really helps the Japanese markets. And look at
:09:42. > :09:44.the price of oil, above $50 a barrel, Brent crude above that
:09:45. > :09:51.significant psychological level. How long will it hold there? Keeping an
:09:52. > :09:55.eye on the pound. The debate on the UK position in Europe continues. And
:09:56. > :09:56.that is how it ended on Wall Street. I will see you