>> welcome to the bnn bloomberg and bloomberg audiences. i am mark crumpton. as -- a six memphis officer has been disciplined in his involvement at the beating of tyre nichols. he was suspended shortly after the january 7 arrest of the victim who died. video footage showed five memphis police officers using a stun gun, a baton and their fists as they pummeled nichols after pulling him over on suspicion of reckless driving. rent is raising for another way

of transport strikes as labor unions continued their protest against the government's proposed pension reform. airlines and trains have announced cancellations and delays beginning tuesday. or than a million took to the streets across france on january 19 two protest president macron's plan to raise the minimum retirement age to 64 from 62. the ceo of tiktok will testify before a house committee on the company's privacy policies and its relationship to the ccp. the hearing is set for march 23 and it will be their first appearance at capital hill. the fbi director says china's government to use tiktok to control millions of user data. the share of americans who say they live paycheck -- paycheck to paycheck climbed this year.

the survey from london club and payments, finds about 64% of u.s. consumers were letting paycheck to paycheck at the end of the last year and of those, about 8 million of those earned them -- more than $100,000 a year. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. >> welcome to bloomberg markets. kriti: you are seeing mixed action but the s&p 500 firmly in the red, down by 9/10 of 1% and this is normal ahead of a decision.

but at that pattern continues in the weekend week ahead and ahead of the fomc decision. we are looking at 354 at the 10-year yield and the -- it is leading the dollar as well. i think it is filtering back in to the commodities space as well as we data coming out of china. >> helpful context there and it is going to continue to be a busy week on the earnings front and there are names that we are watching closely and general electric's health care unit in its first quarter of results after the spinoff is getting well-received reaction on wall street and that stock is up. again almost 13% after -- we will speak with the ceo coming up later this half-hour and some stock specific stories. johnson & johnson, that court

ruling that the company cannot use the bankruptcy process to address many losses that they are dealing with now and we will track that story. we are watching this 40 story and the stock is down after the decision to cut prices on the electric version of its mustang. kriti: it is serving as a postal trier -- poster child of what we are seeing in the global economy. ford slashing prices to compete with tesla which had one trader explaining how that is dangerous. >> price worse --wars are not good for margins and that competition is not conferred share prices but what we have seen is the market, because financial conditions made easy -- remain easy, has gorgeous fundamentals. jon: let's get context and

bringing in ed ludlow. the idea of a price war suggest that this move by ford, is because we saw tesla lower do we know the key reasoning for this ford move? ? -- ed: i think there is a note saying that this is a cascading event. the expectation from the street is that you see general motors and the european players also do so. it is interesting, it is probably a mixture of more than one factor and cutting prices in response to tesla but if you look at specifics of where ford cut prices on the mustang marquis, it is a $4500 trim. the most significant cuts are at the higher end. they -- that starts to indicate that this might be more about

getting those vehicles in line with the ira requirements for $7,500 federal credit or discount. it seems to be multifaceted. kriti: part of the report was also that in order to make up for the price cuts, they will boost production by 67%, yet the stock is down on the news. does the market believe they can do that? ed: the stock is down in a softer market and the worry for ford is what you heard from your previous guests. the mustang marquis is a nonprofitable model for ford. when ford planned it, the former ceo told me on camera this will be profitable from new -- unit one. what has changed is the input cost. we are in an era of higher inflation so how can ford offset be out of line erosion when they

cut prices, they will wrap up volumes. the aim is around 130,000 units this year and greater volumes, better margins. jon: this is a story line, the ford move into electric vehicles that you have been covering extensively. to take a better -- bigger step back, what you think -- what do you think the wall street reception to the transition has been far -- so far? ed: better than in the air as i talked about, 2000 19, 2020. there is a debate on the tesla side on how we should value that company. you look at the multiples that ford and general motors have, they are priced by -- like classic automotive companies but there is optimism that as more models come online, the value

proposition goes further. they are still vulnerable to the things that legacy auto companies are, higher input -- input from commodities and out the complicating risk after -- factor is not just lower -- the availability of battery sales. we have been talking about ford unable to go to virginia to set up a plant because of opposition to the politics of catl's relationships with the chinese government. ford and gm are doing but they can and it depends on the patient's of the timeline investors have. kriti: ed ludlow, cohost of bloomberg technology and we thank you as always. you can catch him and caroline hyde. let's zoom out and look at the broader market picture and joining us then kristina hooper.

she is on set with me. what is interesting about the ford story is that this is not just a eeev story. competition is ramping up and talk about what that does mean for the stock -- stock market broadly. jon: --kristina: what we are seeing is cost going down, the end prices to customers going down and that is part of waiter competition for every dollar and expenses going up at the same time. in this earnings season, what we have heard is that costs have gone up for most companies and at the same time that they are cutting that -- those end prices. ultimately, this should be right -- positive and i like to take a step back and ask -- look through the lens of the fed. this gets us closer to the fed

hitting the pause button. jon: against that backdrop, what is your general sense of what the equity -- for the equity market could be headed? we had the s&p 500, a strong start. kristina: we are likely to see the first half of this year and especially in the next couple months is a lot of volatility and a truck of war between risk going and risk off. -- risk on an risk off. we will see downward earnings revisions. we should anticipate that will happen and that it is getting downward pressure on stock prices. we are likely to see rates come down and to see the 10-year yield come down. that actually should help drive multiples up so we have these countervailing forces that create something of a tug-of-war. you have uncertainty still on what the fed will do and that

sets up an environment in which where we will not see a lot of progress for risk assets in the first few months. just turbulence. as we get into later of the year as there is more visibility on this economic recovery, which i do think will enfold -- unfold by the end of this year, i expect to seats movers sailing for risk assets. kriti: you talk about the yield equity correlation and let's talk about oil versus equities. we are looking at 86 handle on brent crude. the risk of inflation rebounding in america, how much of a threat is that to the equity rally? kristina: it is an indirect threat because if we see inflation rebounding, we are likely to see the fed get more aggressive and extend the tightening cycle, which could be problematic and create significant headwinds in the short term for equities.

jon: before we let you go, give us your expectations for the fed. kristina: i expectation is a 20 -- 25 basis point hike and i expect a large -- my hope is that the fed takes a page from the bank of canada's play but -- playbook. we will have an additional pause from the rate hike and that will be conditional on the economy going as planned and inflation remaining in trend of moderation so that is my hope and i think it can really happen. kriti: kristina hooper of invesco, we thank you as always. coming up on the show, -- our conversation with ceo anthony noto is coming up next. stick with us. this is bloomberg. ♪

kriti: this is bloomberg markets. sofi says it expects to be profitable by the end of the year and shares are surging 13% and comes at a time where many

thin talks are struggling to cut costs and function. we are joined by and delete -- by anthony noto. let's start off with a basic question. how high kennett in strictest -- can net interest income really go? anthony: i appreciate the times of our earnings results. the net interest margin -- we have about 6% market share in unsecured personal loans and there is meaningful upside as it relates to the market share and as it relates to the spread between the rate that we arch and our cost of funding, we have been able to pass along a large percentage of rate increases on the back of the fed funds rate increases for the year and our cost of funding has gone down. because we had the national bank

charter, we are able to fund our loans at about 190 basis points lower than what we would have otherwise to the -- thank mike -- bank lysis and our cost of funding is going down relative to the interest rates two-week -- that we charge. they cap times the volume we have is driving the revenue stream and it is an important string that is recurring. those are relationships with tech partners that license our payments platform and we have a number of revenue streams that are in our financial services sector such as credit cards, checking and savings and brokerage that contribute on an ongoing basis. jon: getting into the specifics of the net interest market revenue, you have reached a milestone in having that surpassed the non-interest revenue and in terms of reaching that, is that on par with where you expected to be at this

point? jon: anthony: --anthony: we are ahead of where we expected to be at this point. we had seven record quarters of revenue in a row. we ended up exceeding expectations and as we mentioned on the earnings call, we believe that the scale we are driving in revenue will continue in 2023 with about 25% to 30% year-over-year growth. two $2 billion a revenue -- billion dollars revenue. one of the important michael's -- milestones we achieved is that -- up significantly versus a year ago, and contributed towards a total, that $7 million was equal to our stock-based compensation, which is critical to hit. kriti: the optimism, the

positivity coming out of sofi at a time when a lot of fintechs are being washed out. do you think those competitive headwinds moving to the side is really boosting the momentum your own business? --for your own business? anthony: i think we took a different approach to the market five years ago in that we wanted to be, a once top shop for all the major -- all the major financial decisions in your life. we did not cherry pick the most popular products at the time for the ones you can make the most money on. we picked all the products that would allow us for you to get your money right, to help you borrow and save better and invest that her and because we were committed to those activities, over the last five years, we have build a durability in our business and

robustness to allow us to allocate capital and leaves us less vulnerable to different exogenous factors that we have seen impact other companies. that is not to say we are bulletproof, we are working more robust and more stable and that allows us to be more durable and the strategy has come together in the last two years. jon: can you give us a sense of your goals on the deposit base because i think you went from something like one billion to 7 billion over the course of the year. anthony: the deposit base is critical. before having national basic -- a national bank license, -- this year, we added another 6 million in one year. those deposits come at a lower cost. we are offering a great interest rate in our savings account, 3.7

5% and there is no rejections on how often you spend and it is completely interchangeable with dark checking account. if you want to move money back and forth to spend it and that interest rate paris would be checking account interest rate of 2.5 percent in all the activities want to do with that money is all available on your phone. you can spend with a debit card and do ach and bill pay and there is no freeze are overdraft protection. you are with us. that product has been differentiated because the bank license, those deposits in at a much lower cost. not only is it making a greater business, it is fueling our lending business as a new research to add how much we can lent to others. that is what you see improvement. jon: helpful contacts on the

story of sofi. anthony noto, the ceo joining us and as kriti was mentioning, the stock moving higher. adani under pressure as the rebuttal fails to ease wells looking outside investment quell concerns? -- ease woes but can outside investment quell concerns? this is bloomberg.

jon: this is bloomberg markets. time now for today's for what it's worth. our number is 400 million as and $400 million, how much a firm controlled by a member of abu dhabi's family is investing in adani after the staving -- the skating report on adani. abu dhabi has been seeking to

restore confidence in his empire. kriti: we know that the uae has largely invested in the adani empire so that $400 million follows a multibillion dollar investment when it comes to adani enterprises and it is something bear taking a hit in an shares -- and he and stocks are taking a hit and it is fascinating having and opinions. one person said, heather burke least -- research is right -- hindenburg research is right. kriti: --jon: we saw a huge rebuttal from adani and we will watch it but given the selloff, the corporate government's concerns are front and center. kriti: it has ripple of flex -- ripple effects across the globe. the s&p 500 lower by about 9/10 of 1% and the nasdaq outperforming --

underperforming. do we see a turnaround into the closing belts? they gear is higher and dollar higher. crude going in the opposite direction. for jon erlichman, i'm kriti gupta. scarlet fu joins us next. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

scarlet: we are kicking you off to the close, i am alongside kriti gupta, we have a market selloff with the reality of a slowdown/recession combined with a trio of hawkish central announcements. kriti: something that is pretty normal ahead of an form the decision, it is in character. scarlet: the s&p 500