Took him to countdown. I am manus cranny. I am anna edwards. Bloomberg reporters are standing by across the world ready to deliver the stories that will drive your day. In mumbai, the votes are counted in the worlds biggest election. Jonathan ferro is following Credit Suisses potential deal with u. S. Tax authorities. Hans nichols is in berlin with details on key votes for the swiss. Zeb eckerte on is in hong kong as japan debates beefing up its military. Later, they are crafted with the most precise workmanship. These are not the most expensive pair of glasses you will ever buy. How one startup is trying to up and the business of highend eyewear. It is vote counting day in india. The election was the Worlds Largest taking place over more than a month. Nine rounds of voting. 551 million votes were cast. Joining us for more on the latest is sent hundred. What parties are leading . Looks like heodi is ahead in the polls in the moment. It definitely seems like that. Like you were pointing out is does the biggest we have seen in india. Bjp has crossed the 290 mark. We have to see what the final looks like. Anyone going into the next government needs to hundred 72 for a majority. The alliance which is led by the ,ongress party that is willing touching the 80 seat mark as we speak. This is the biggest margin by which the bjp has been leading so far. Just looking at the market currencies,ocks and some quite big moves. Absolutely. The reason we have seen the markets rallying the way we have is probably the fact that modi, hasOpposition Party, he been the chief minister for about 30 years now. You are seeing a huge revival. Really sees him as someone who speaks the language of business. Extremist. As an one of the deadliest religious riots took place on his watch. Congress has been hit by several scandals, not being able to push through reforms effectively soon enough. Rallied. Ts have around therk is up 25,000 mark. We have seen the nifty open about 7600. The rupee also continues its rally. Corporate india seems to be watching out for what a new government and a stable government could bring. Thanks for that roundup. Credit suisse is close to reaching its 2. 5 billion deal in the United States over its tax probe. The deal could see switzerlands secondlargest bank the guilty as to whether it helped americans evade taxes. Jonathan ferro has the details. Billion tols 1. 7 the department of justice, 600 million to the new York Department of Financial Services according to people familiar with the matter. Credit suisse could be close to closing this chapter. For the price of 2. 5 billion. I sat down with rady dugan last month. He seemed pretty confident about the progress they were making. Set aside 425 million swiss francs in provisions. That was in addition to 300 million they set aside in 2011. I asked him whether he could rule out further provisions. He could not. If it is 2. 5 billion, that would be pretty big. A lot bigger than ubs. What were the numbers, 750 million . 780 million. This would be three times as much. What is the risk here . There is a guilty plea involved. A lot at stake. The parallels are going to be drawn. Ubs felt with as quickly. Settled in 2009, the investigators what they wanted. A lot of people tell you that Credit Suisse may be taking a lot more time over this and a lot of criticism has been attributed to brady dougan himself, the ceo. He testified in front of the u. S. Senate in february. He said this is a small group of swiss bankers that skirted the banks control. He emphasized this was a very small slice of global profitability at the bank. Less than 1 . , 2. 5hunk of change billion. For a man who has been with the bank since 1990, the ceo since 2007, he has made significant progress. He has worked very hard to deal with this issue but he didnt know this was happening. When this was happening . Jon ferro with the latest on Credit Suisse. The swiss are going to the polls on sunday to vote on two key issues. One concerning fighter jets, the other concerning pay. Hans nichols is in berlin with the details. Lets kick it off with these fighter jets. The swiss would buy from swedish companies. How are the polls looking . Should saab be worried about losing a big contract . Saab is worried. I was in sweden earlier this week talking to them. When you look at the latest polls, 51 of swiss voters could cancel this 3. 5 billion contract. It is a remarkable moment where you have the swiss voters saying this fighter jet is too expensive even though it is one of the cheapest on the market. This is very much about cost. When you look at the saab griffin, it has a lower cost per hour flying time than any of its competitors. That is one of the reasons this would be such a remarkable setback. The griffin is marketed as a lowcost versatile alternative to the roth a. L. Or the f 35. That is just one of two important votes. The other one, the highest National Minimum wage. That one may end up going down. It is so easy to get on the ballot, to get the referenda on the ballot in switzerland. You just need 100,000 votes. That is one of the reasons we have seen a slew of votes on a host of subjects. Ok, hans, thanks for that roundup. Upjapan is debating beefing its military and playing a more prominent role a broad. It is an issue that has divided the country. Lets go to zeb eckert in hong kong for more. Good morning to both of you. This is sounding the alarm bells in places like beijing as well as seoul. Tokyo says we are not looking for work. We are seeking a reinterpretation of our constitution. This according to Prime Minister shinzo abe who went on television appealing to japanese citizens to support these measures. He wants to aaa constitute to strip away constitutional restrictions on japans armed forces. To support the United States if it is attacked, to clear mines in shipping lanes and to deal with illegal activities forcefully near remote islands. That of course is raising alarm bells in some capitals around the region, specifically beijing. Japan embroiled in territorial disputes. It has to do with the east china islands upe see the for dispute. These are very complex regional issues. Lingering tensions, remnants of the world war. Japan it appears wants to have a firmer military posture. The Foreign Ministry in beijing reacting, saying the International Community must maintain high alert on japans intentions. We have seen cautious reaction and theicials in seoul china daily newspaper out with an editorial saying abe moves forward. The public Constitutional Rights have been stripped. A counter offensive by regional powers. Certainly this ratcheting up tensions between japan and its partners in the region. Thank you very much, zeb eckert joining us from hong kong. Just ahead, indian stocks jumped the most since 2009. The rupee is having a pretty strong week, over 2 . Modi in the lead. Details next. Time for todays company news. Rupert murdochs 21st century fox plans to form a tv production venture. Murdoch would combine foxs shine group with apollos Core Media Group under the agreement. Core media owns american idol. Orange and bouygues said separately that they are exploring potential consolidation in the french phone market after reports that they have held talks about possible combination. Open to aaid it is tie up with another telecoms company. The san franciscobased startup uber is in talks to raise new financing in a round that may value it at more than 10 million 10 billion. That would almost triple the companys value from 3. 5 billion last year. Lcome back to countdown i am anna edwards. I am manus cranny. Today, we get results of the worlds biggest election as indians choose the next Prime Minister. Early counts show the Opposition Party candidate is in the lead. Here to discuss all of the issues is the founder of dos, tell. Das kapital. He wins theant that majority or is it a solid coalition . Probably a solid coalition is the most likely outcome. I think that is going to be good news. The market is pricing that in. The challenge is that once he is in the seat, it is going to be a very complicated country to run. What was the greatest competition challenge for the Congress Party . Congress faced a series of vetoes from Coalition Partners and the states. The bigger trajectory in india is more federalization, more power being devolved to the states. That makes the complexities of running the place even more evidenciary. Having a strong leader will help but it is not the solution to everything. Ofa great deal has been made his agenda, the data has got to be that it has got to be more restructuring. What is going to be the top priority . Waveere has to be a whole of Structural Reforms of their rias kinds. Sources,s at trusted they have come up with a Shopping List of 10 things that he could do, some of which are quite big and some of which are important symbols like the identification program, the id card, they should get behind that. It is not clear that they really are. They should do a lot of things to reduce the prospects for state capture, crony capitalism. It is not clear that that is what people are expecting. The companies he is perceived to be close to have outperformed the rallying stock market. There is going to be a lot of examination. Interesting that you talk about those types of issues around identity cards. Jumps would more quickly to things like infrastructure as areas that need to be improved. Infrastructure challenge is a very important one. The reason i emphasize these sorts of things is because the ,rganizing problem of red tape the central problem is that there are too many avenues for corruption. Everything that should be done should be to clean up the state, get it out of the way of Good Business rather than have it being captured by big business. That cleaning up of the state, will that encourage more Foreign Direct Investment . Corruption in governance is pretty important. It probably is the single most important thing, to improve the governance of india at every level. Level, theic sector federal level, the state level, the corporate level and the financial level. All of these things that need to be done need to point in that direction. About thewere talking central bank. The central bank has made a kind of quantum leap with its new governor, obviously a formidable figure. I think the signals that are sent on that front could make a very big difference. Bank governor this morning saying he is keen to work alongside modi but he has put his own stamp. He has raised rates. He is really going after inflation. Does that sacrifice growth too much . A lot of the growth was maybe too fast. Based on a lot of shortterm debt. External debt as well. Thing that has deteriorated in india is that the government has made the economy becoming more and more reliant on shortterm external debt, more exposed to external shocks. When the current Prime Minister the reforms that generated growth in the 1990s, that is the problem he was trying to solve. Here we are coming back to it. It has come back to bite him. Thank you very much. Thoughts on the indian elections and keep bringing you uptodate as well with the latest polls as we get them. Stay with us here on countdown. Welcome back to countdown i am manus cranny. I am anna edwards. We are back with the founder of das capital. Getting your thoughts on the indian election. Comparisons with china have been made in Academic Circles many times. Domestically, there is a constant comparison being made with china. Is this helpful . I think it is a very dangerous thing. I call it china and the. People talk about chindians. It is absurd. There is no such thing. Aredes the fact that they the largest populations in the world, they are completely different. One of the mistakes that has been made in the Economic Management of india is this idea of trying to catch up and grow faster and have a chinese growth rate. It has led to all kinds of imbalances that show up in current account, credit growth, inflation, all these kinds of bottlenecks. I think they were doing the right thing by tightening to restore the credibility of the state and the reserve bank, stabilize the rupee, stabilize the price level. Otherwise, we know very well from the experience of many other countries and india itself, if you have too fast growth you have all kinds of problems later. One of the propositions that has come through this week is that they have squandered their opportunity in terms of bringing the rural population in and collecting taxes. Do you think that is too heavy an accusation . I think it is not strong enough. I am trying to be mildmannered but you are the guest. We have to look at this objectively. I wouldnt say they have completely squandered the opportunity. The question is whether the labor market and the process of Building Infrastructure can be improved enough and quickly the kind ofleash growth. One of the great things about india is that when you do succeed in making a change, there is a very quick response. Is market is very big and it rearing to go. Over the last several decades, incomes and Living Standards have improved dramatically. It is nothing compared to what could happen. It wouldnt be so much china and a, it would be catch up. You think one of the things we need to guard against is crony capitalism . Favoring certain businesses over others. There is way too much capture of the power of the state by people who are too close to the state at the federal level. That has been one of the problems we were talking about with the outgoing government. It is ae an issue difficult thing in a complex society like that. You put people close to you that you trust. You need to strike the right balance. Now the constituents are going to be all over the map. Thank you very much for coming and. We will continue to bring you the latest results in these elections. Leads 272 seats, signaling a majority. That coming from ndtv. Coming up, more on the indian election results. We have more on what on what a win for modi would mean for investors. The counting continues in india. Welcome back, im anna edwards. Were going to take a look at the bestperforming emerging market currency today, the indian rupee. The dollar getting weaker, the rupee getting stronger. 550 one million votes, a seemingly business friendly government coming into india. It is not just in the fx market, equity, asfx and well. This time last year, when ben bernanke was talking about tapering, this one got taken to the cleaners. These are the Bloomberg Top headlines. Ukraines president is saying the government is working to expand constitutional powers. U. S. And european Officials Say they will punish Russian Industries if this months residential election is undermined. Confidence among u. S. Businesses has reached a sixyear high. The fed chair janet yellen credits Small Businesses with fewer than 50 employees for the majority of job growth since 2010. Shes private payrolls have continued growing. At payrollsright have continued growing. Businesses deserve a considerable share of the credit for the investment and hiring that has brought that progress. The bjp and its allies are leaving in indias general election according to an ndtv tally. Modi could claim victory. The final vote count is expected later today. With that news, indias reached thedex has highest level in over five years. Bjp arty havethe have 257 seats. Investors wait to find out has enough seats to take power. Great to have you with us this morning. Victory ist this possibly all priced into the market. Sorry, i didnt catch you very well. No problem. Can you hear me . It is manus cranny in london. Is all the victory priced in to the move of the rupee and the equities market. Exactly. I have and index which is up 16 today. We have a target of 25,000. A victory of the bjp majority, which seems to be the case. We are advising investors who at indices in other countries, including china. Staying with india for the moment, do you feel the currency move, the space and time that they have been given in regards to tapering is a plus for them . Can the currency move higher on this . Well, the currency can continue to move indeed. Especially since we dont have the final results and we are not yet there can always be a surprise. Close. K we are very in our view, it will be other drivers which will take the lead. Towhat would cause you change your view . If we saw a substantial majority going to the bjp or the nda as a , would that level of control in terms of decisionmaking in india, with that change your mind at all . Is that something you think india needs Stronger Leadership . Is that something . Do you think india needs Stronger Leadership . It seems that we are going therds a full majority for bjp led coalition. There might still be a little theof upside, but most of move is now done. Comparisons between india and china are perhaps not always helpful. What do you prefer for your investments . China much better, cheaper valuation. The sentiment is probably also not as positive or as consensual as it is in india, to say the least. We really view china as a longterm investment, in the equity market especially. I would expect the chinese equity market to Start Performing in the second half of the year. Thank you very much for. Ining us, ahmed therirters may shoot down theses look at how fighters are actually made. They have the confidence that their planes wont come in second place. I will leave that to the air force. With this 3. 5 billion contract taking political flak switzerland, some are looking over the horizon. Keep it competitive in a dangerous world. Someone else will find a way to counter that, and then you have to be better than that. That is how it is going to be developed. Good or bad, costly, yes, that the way the world looks like. If you cant