scarlett: looking to bloomberg markets. let's show you what is happening in the markets right now. hotter than expected wholesale inflation report is not getting in the way of the stock market. the s&p is up and big tech is driving the danes, led specifically by tesla and nvidia. when you look at yields, they are giving back some of the big games they saw yesterday. it was the biggest since

december. the 10 year yield down eight basis points. it is still above the 4.5% handle. before president trump is due to announce new tariffs, reportedly in the next hour, at 1:00 p.m. eastern time -- there is a report these new reciprocal tariffs will not go into effect until april 1, so perhaps that is helping the dollar a little bit. that's go back to the premarket and highlight a couple of individual names that are moving. isabel lee joins us to do that. isabel: we are looking at hertz. the stock is seeing immense pressure after the company reported a loss of $2.9 billion in 2024, worse than analyst expectations. hertz said it finished selling 30,000 electric vehicles as it moves on from an ill advised bet on plug-in cars that customers did not want and were expensive to maintain. scarlet: robinhood is going the opposite direction.

shares are edging higher. the revenue more than doubled. this is around the u.s. presidential elections. revenue grew, beating estimates. crypto revenue increased by more than seven under percent. last, we have cisco. shares are edging slightly higher. it had an upbeat sales forecast help by company spending more to take advantage of the ai/tech revolution. they adjusted their target. scarlet: thank you for those movers. let's get back to the macroeconomic picture. andrew hallman horse of citigroup was on bloomberg earlier today, and here is what he said about why the market is shrugging off the ppi number coming despite it coming in higher than estimates. andrew: you can look at different metrics on inflation. when you dig into the details,

the fact that shelter inflation is slowing down, that will give officials confidence that we are getting some slowing. part of the reason the market is reluctant to react is you have to look at these detailed categories and look at the pce meeting. scarlet: joining us now with her take on the inflation data and what it means for the fed and rates is kelsey barrow, a fixed income manager at j.p. morgan asset management. good to see you. let's talk about this week' is inflation data. cpi surprised to the upside. there were some sharp revisions as well from the previous one. with the exception of the core ppi month over month for january. get the bond market not too worried about it right now. andrew hallman horse talked a little bit about the components. walk us through the market's thinking. kelce: this is a bit of inside baseball. cpi came in hundred than

expected. bond yields did move higher in response. the 10 year yield got up to nine basis points higher on the day. ppi also came in hotter than expected. suddenly, we have essentially reversed the whole move we had higher in yields because of cpi with ppi, and it is because of not the headline numbers but the individual subcomponents that feed into the fed's preferred inflation gauge, which is pce. pce inflation has been running at a much cooler pace than the cpi inflation data. with the numbers we have in hand, both cpi and ppi, most economists are expecting pce on a month over month basis for january to come in at 0.2 to 0 .3. that would probably result in the three and six month fund rates staying at 2.5%, and the

year-over-year rate actually taking down to 2.6%. it is a much more stable, sanguine picture for inflation when you look at the pce data versus the cpi data. i think the market is taking a lot of comfort in that. scarlet: this suggests the situation is not getting worse. in terms of what that means for the fed and what it does next -- yesterday, we were looking at just over one rate cut. this that sound appropriate to you? kelsey: it is on hold. the data has been volatile. what does the fed do historically when the data is volatile? they pause to reassess the data. our view is they may be able to cut one more time in the first half of this year. i would not be surprised if they stay on hold for a certain period of time.

although that sounds bizarre, given everything going on in the economy, it is not at all historically unprecedented. back to where we were. the fed was on hold at the level for 14 months. and 2006 through 2007, the fed was also on hold for about 15 months. 1990 seven through 1998, also an 18 month extended period where the fed was on hold. it is not historically unprecedented for the fed to just stay on hold. does that mean for bond yields? it probably means the front end of the yield curve is fairly pinned. pricing of the terminal rate, so the lowest rate the fed funds rate gets to in this cycle, is probably going to stay fairly stable. all the volatility in yields is probably going to come from the term premium. today, what you are seeing is a flattening where the biggest moves are happening in the longer end of the curve. that is because most people

expect the fed to stay on hold, and all of the shifts and expectations are occurring around longer-term growth prospects, longer-term inflation prospects. scarlet: we know trump has made clear he wants lower rates. scott bessent, his treasury, is clarified that the administration is looking for lower 10 year yields. how do they manifest that? talking it down? kelsey: that is a good question. the signal bessette was sending is that this administration is still sensitive to financial markets and there are certain indicators that they use as guideposts in terms of assessing the success of their administration's policies. the equity market -- are equities going up? that is a sign that trump policies are going well. secondarily, it is the 10 year yield.

the moves up and down in any given day -- if we get to a point where 10 year yields are approaching 5%, i think that is a different story. it is an indication and a signal to the administration that something in the policy mix is not driving well. -- jibing well. scarlet: the stock market -- goldman sachs talked about a bear trade for u.s. stocks, saying it is running out of steam at this point. if there is a positioning switch to a more bearish stance, how do you see that affecting positioning in fixed income? kelsey: a couple of thoughts on that. one is we have not seen any fall in demand or appetite to take on risk in the credit markets. credit spreads remain tight. even yesterday, after the cpi

report, there was a very small widening in spreads in the knee-jerk reaction and immediately dip buyers came in to buy any backup in yields. we are seeing very strong demand in fixed income continuing. i will say that some of the price action we have seen more recently does encourage me from the perspective of owns working as the diversifier in the portfolio. you look at the deepseek monday, and those are days when you see the traditional bond correlation kick back into gear. on yields as the stock market went down -- bond prices went up as the stock market went down. that is what we like to see. i think it is a function of the level of yields currently. and for now the facts that we see -- inflation remains under control. as long as inflation remains

under control, the fed has the flexibility to cut rates if necessary if growth or the labor market were to falter. scarlet: responding to those macro conditions. always appreciate you talking markets with us. kelsey barrow is fixed income portfolio manager at j.p. morgan asset management. coming up, narendra modi arrived in washington last night and is set to meet with president trump today. india hope to dodge tariffs from the u.s. when it comes to what is at stake for doing countries. ♪ where ya headed? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management

scarlet: this is bloomberg markets. india's prime minister, narendra modi, is set to meet with arnold trump in washington today. i do think partnership with the

u.s. might not spare the country from a wave of trump tariffs. there are other topics on the agenda. you have investment in india and defense sales to india. for more on this, let's bring in lisa curtis at the center for new american security. two got along pretty well during trump's first term. you think that will matter in today's meeting? how much does it matter? >> i think it will matter a lot. the fact that prime minister modi is visiting president trump three weeks into his term shows the importance that president trump attaches to the relationship, and that he really sees india as an important counterweight to a rising china. there was good report in the first trump term. we got along very well. they participated in large events. you had 50,000 indian americans

packed in the astrodome in houston, texas. two months later, president trump addressed a crowd of 100,000 indians in a stadium in amount about -- in a stadium in gujarat. i think this will carry over into this meeting. scarlet: there is a lot of common ground to be mined. you focused on south asia as a member of the security council during the first trump administration. which priorities have shifted the most, becoming more or less urgent since the first administration? the items on the agenda -- it ranges from tariffs to nuclear energy to our defense sales. lisa: i think tariffs is a common thread here. president trump focused a lot on trying to reduce its notoriously high tariffs on u.s. imports.

unfortunately, the two sides did not achieve a trade agreement during trump's first term. i think president is going to redouble his efforts and has really high expectations that the u.s. and india will achieve a fair trade deal. prime minister modi has tried to get out ahead of this. he has lowered import duties on things like high-end motorbikes, which would allow the u.s. to export more harley-davidson motorcycles. that is very important trump. that i don't think it is going to be enough. what we will see is more pressure on india to reduce these tariffs. this is something that will be actually central to president trump meeting today. scarlet: what does a win for president trump look like and what does a win for modi look like, given that some of the concessions came out before the meeting even took place? lisa: i think a win looks like a

decision to commit to a fast track trade negotiation. it is clear that both sides want a relationship to work. it is an important relationship for strategic reasons. i think a commitment to negotiate a trade deal is very important. the question is whether over the long-term they can achieve that negotiation. today, simply announcing the will and the interest to negotiate a trade deal could be seen as a success. scarlet: you mentioned india as this counterweight to china. the first trump administration, it was in a very different economic state than it is now. india has been very careful about avoiding thinking sides, right? it does not want to -- it is still buying russian energy, for instance. as india have a role to play in

president trump's effort to end president -- to end russia's war in the ukraine? lisa: when it comes to china, india and china have a border dispute, deadly in 2020. tensions are high in india does look to the u.s. for security with the china threat and china aggression. when it comes to russia, you are right. they have a traditionally strong relationship. india buys russian military equipment. they have increased their oil imports from russia over the last couple of years. i think what we will see modi do is say that he wants to import more u.s. energy, including oil. that will be helpful. in terms of helping to bring

peace to russia and ukraine, i'm not sure modi will play a role in that. he does not want to do anything that would jeopardize his strong ties to russia. i think he would prefer to stay neutral on that issue and probably stay out of any negotiation to end that war. scarlet: thank you winning that. narendra modi will also meet with elon musk during his trip to washington. you think that will pay dividends with what modi hopes to accomplish with president trump? lisa: i think it will. from minister modi has had many meetings with elon musk in the past. it makes sense that he is going to meet with him. i'm sure the discussions will be wide-ranging, talking about the future of technology. prime minister modi to talk about some of the things he has done in india on the technology front.

i hope there will be assistance in countering china. this is important for india in terms of the u.s. assistance that goes to india's neighbors. india is seeking to keep china out of the region. any assistance to the south asia region would open the door for china to increase its own influence there. scarlet: that is something to watch for. you are looking for some kind of statement that they are working toward a trade deal and may be talking about foreign assistance as well. if there is any room for surprise, where would it be? lisa: i think a surprise would be a breakdown in talks. if there is no common ground met on the trade issue -- i don't expect that to happen. that is the area where there is most attention, on the tariffs

and the trade. i think the trump administration is looking to men was that from blowing up the meeting. this is something they will have to pay close attention to, because there are differences over this issue. scarlet: really appreciate your joining us today. lisa is at the center for a new american security. coming up on bloomberg markets, we are going to take a look at central security. it does face scrutiny from lawmakers always. but what about elon musk? he has hinted. the benefits of a political third rail. our next guest is a bloomberg opinion columnist and labor economist. ♪

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focused on retirement. a political third rail. elon musk has decamped to the seat with a mandate to cut government spending. he posted on that he found a database feature that he says could enable massive social security fraud. how could the white house affect social security and what are potential fixes to the system? we are joined by a labor economist and columnist for bloomberg opinion. she wrote on the topic this week. musk has tweeted about social security fraud several times, at least six times and eight when he for our spam. president trump has made clear that social security will not be touched. that creates an awkward situation. >> it does create an awkward situation for someone who claims federal employees are inefficient and tweets 60 times in 24 hours. it is neither here or there. scarlet: does that take for

forming social security off the table? the program is something that you say in your column is in need of reforming. >> it is important to rumor that elon musk does not have support, factual evidence or otherwise, find the things he is saying about social security fraud. it is very well studied. most victims of social security fraud are elderly americans whose identity is stolen, often by some type of scammer, i a family member who is opportunistic. they have zero tolerance for fraud. i do not know what he is trying to claim. i do wonder what he is looking at, and if the data is violating privacy act. scarlet: social security, we tend to think, is going to run out of money at some point, and we are not going to get paid to the benefits when we retire. this is something that you bring up. it is going to run out of money

in 2035 based on the last reform made to the program in 1983. why is it only good until 2035? >> very careful terms here. social security is between two financial milestones where it no longer took in in texas what it pays out in revenue. it had a surplus for about a quarter-century. surplus is now gone and it has a trust fund that it built up to cover the years in which it no longer had a surplus. the trust fund runs out of money in 2035. however, those are milestones. social security was reformed in 1983 and those reforms created fiscal solvency for the program through 2035, a pretty remarkable success for not having been touched since i was born. but i should be clear social security cannot run out of money. it is based on the contributions of taxes of the american worker. it will always have money coming into the program. it is a question of whether the money is enough to cover promised benefits.

if congress does not act by the time the social security trust fund is depleted, there will be a benefit cut of around 20% on all current and future beneficiaries. the program itself never runs out of money. scarlet: that is an important station to make. it is easy to say it is just going to run out of money. surveys show people do not want to give up their benefits. they would rather pay higher taxes think about any of their benefits. >> it is hard to believe for a lot of people. if you stopped somebody on the street and said, would you pay higher taxes, they look at you like you are crazy. but if you tell someone your social security benefits are on the line, do you want to see them cut or taxes raised, it is taxes every time. this was a study with the chamber of commerce and aarp and they put it to americans plainly. when it comes to social security, we have to cut benefits or raise taxes. which one do you want to see? the overwhelming majority, we

want you to raise taxes. do not cut these benefits. the idea of social security being a third rail is very much a political moniker, but it is not something americans feel. scarlet: thank. that is why fight club will continue to live on. how are leaving investors navigating new threats to markets? ♪ carin's heading into retirement. [screams] with a lifetime of savings. but that's not the only thing she's taking into retirement. hi! ♪♪ hi. every advisor knows retirement isn't a lump sum, it's the sum of their clients' life's work. ♪♪ now what? you protect their life's work with protected growth and income strategies from prudential. who's your rock? ♪♪

>> welcome to i am scarlet fu. --bloomberg markets. i am scarlet fu. equities i ran bonds higher and that is driving yields lower so a bit of a reversal from yesterday when yields released by deputy can see the 10 year yield and i'm jumping down because that is where most of the action is, coming down to 4.53%. equities getting a little bit of a lift on the back of a ppi report where if you break it down into its components

suggests the core pce data point that the fed really focuses on will show inflation has not gotten worse. that is not a deterioration in the inflation picture necessarily from today's data and yesterday's cpi data even though the prints came in higher-than-expected. a weaker dollar, off by half of 1%. president trump's do to make announcements on tariffs and the next hour and there are some reports that these tariffs will not go into effect right away and maybe they won't happen until april 1 as well. let's highlight a couple of individual equity movers and i want to start off with intel. by volume, the chipmaker's most actively traded stock and right now, it is soaring, up 8%, on track for its -- one of its biggest one-week gains ever thanks in part to a potential project with tsmc. another heavily traded stock is trading desk, the shares dropping sharply by 32% in the session.

the pressure today comes after it forecasted first quarter revenue that came in later than what analysts had been anticipating. that means us to our series called the next big risk which focuses on how major investors are navigating current risks in the market from political tensions to persistent inflation to tariffs. this week, we focus on the booming private credit industry. sonali basak caught up with josh easterly. he is cofounding partner at 6th street. to learn about what concerns him right now. >> on private credit, to me, the thing that worries me the most is that an asset class has grown and there is a good reason why it has grown that we don't deliver on the promise because we have not developed talent and talent has not caught up with the asset class. >> at the end of last year, it was north of $1.7 trillion. it is an asset class many believe is the future finance --

the future of finance in many ways. joshua: the durability of returns and a narrow pound of returns. as the asset class has grown, it requires an additional talent to actually provide those returns to investors. if you take a step back, people like the asset class because it is a better model and has match funding. the returns are durable. the challenge is that it takes an investor mindset to actually be able to deliver those returns and people typically think about the business model having either one of two constraints which is one constraint is capital and the other constraint is opportunities. that is actually not the constraint. capital is not the constraint and opportunities is not the restraint. the real restraint is people to deliver the returns. sonali: because returns were

durable in the past, it doesn't mean they necessarily want to be durable in the future depending on who was running the money. joshua: in the old model, that was a model where it was a distribution model. you had the difference between where assets were originated and ultimately sold to asset managers and the private credit model, that model has collapsed where it is not only origination business, it is more importantly a storage business so you have to have a skill set that is different from the traditional banking model which was actually very narrow and now, the skills that need to be much broader and much more focused. sonali: what happens if you have banking talent moving over to private credit? what might they not understand? joshua: a banker thinks about an asset return and the expected return. what is the average outcome?

an investor think about it as what is the distribution of outcomes? so we can actually think about the average being the same but what really matters to investor experience and to the performance of that asset classes what is the actual dissertation? sonali: when it comes to credit investors, the biggest -- not on this money. do you think that what will happen is if you have this inexperienced group of investors coming into these really fast growing industries, private credit and all of the types of private credit around it, that they may not know the risk they are underwriting? joshua: it's about loss avoidance. i think the easiest way to frame it is in private equity firms, you only have to be right about 70% of the time. if you made three times your money on 70% of your investments and lose all your capital on the other 30, it is to tempt probably top four fun. public equities, you have to be

right a little over 50% of the time. your winners pay for where your losers. because of the nature of credit, you have to be right about 99% of the time and that takes a really different mentality and takes a group and culture who always focus on tension around decision-making and tension around not losing money and so that is what keeps me up at night. sonali: are you afraid now that there are already people who have that standards get too loose in the industry? joshua: i am afraid that the asset class has grown where there is capital flowing to the lowest common denominator where the cultures and the talent is not prepared to deliver on the asset class returns. i want the asset class to do well because that will do well for everybody. and so i want to make sure that there's durability of returns

and we deliver on those promises for allocators and investors. sonali: do you think a lot of people coming to credit for the first time and maybe misunderstand a few things about the industry given that it is private and they don't see the marks every day? do you think that means that things don't move around much in price but they are inherently safer? joshua: don't get me down the rabbit hole. just because an asset class doesn't trade doesn't mean the value doesn't move. and so with private credit, the biggest challenge is your ability to create liquidity when you make a mistake is more narrow because you are the owner of that asset and likely maybe the sole owner of the asset or one of a few people, the owner of the asset so there's not a lot of people following that asset who can provide liquidity so you own all your mistakes. i think that is the biggest challenge with bankers who the

perception is if i make a mistake, i will be able to sell it and they will not be another buyer of it. in private credit land, that is not true ultimately when you generate that return. it's going to be whenever your return has less losses. sonali: -- >> for more on this, let's bring in sonali basak he did the conversation. that was fascinating, this idea that private credit is booming. i mean, it is what everyone talks about constantly yet they don't have enough of the right people to actually invest and do the numbers on private credit. sonali: this has a lot to do with loss avoidance heated he said never hire an optimistic bond fund manager and the reason is because you cannot lose that much money. the point josh easterly makes at 6th street is you have to be right 99% of the time in the world of private credit. in venture capital, you can be a high performer.

you are looking at upside but for private credit, it's about capping downside. he says a lot of the people are coming over from the investment banking industry into the private credit industry and the cultures are not the same. if you are an investment banker, you are looking to sell an asset , looking to get it off the books. scarlet: distribution. sonali: to private credit, you're making a bet and you better hope it's right. scarlet: private credit is a storage business so you need to understand the numbers and understand what you are buying. this is critical, too. there's so many different firms who are talking about private credit and that is all this push to get private credit to the hands of retail investors. joshua: -- sonali: 6th street is one of the largest firms. what the worry is under the surface is that returns can be compromised if you don't have the asset class and the people in eight underwriting to the right standards. and there have been, as we know,

a lot of what we call tourists in the world of private credit. people are not used to what a major drawdown would look like. the other thing i thought was very impressed -- very refreshing, he makes the point that just because it is private doesn't mean the valuations don't change. it's a bigger issue that clearly people are looking at. scarlet: you cannot find it as easily or quickly in the private market. of course, tomorrow for next big risk, we will talk with the governing partner at hps investment partners. that is sonali basak's series, next big risk. earnings out from john deere with the shares lower even after revenue beat estimates. we are going to look at the headwinds expect for the year ahead. this is bloomberg. ♪

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>> mrs. bloomberg markets. i'm still a soup. it is time for our stock of the hour. reported earnings this morning, the shares are lower after the company anticipated yet another challenging year. leader sees sales in the key north american market down in 2025 walt harris tears threaten further pressure. michael oher third covers here and joins us now from chicago. the thing that is interesting is that deere maintained its outlook. there's so much uncertainty covering tariffs. >> some people still consider the outlook a little bit conservative with potential upside but shares did drop about 5% and created quite a gap that has now been filled but still just a little bit lower here so it's kind of like a mixed reaction from investors today. scarlet: when you look at the

quarter that ended, earnings-per-share did beat analyst estimates. can you give some color into how they did that? was it to accounting items like taxes or something more akin to cost cuts? michael: it is kind of the cost cuts. they have been reducing production to match the weekend demand -- weakened demand. a lot of people are still cautioning. there's a lot of use in chapters, combines, -- tractors and combines. michael: the question -- scarlet: the question now is where does the growth come from? michael: they are starting to get a little bit of improvement in brazil which was kind of the leading sort of weakness in the markets for the big players. you know, brazil weakened before

the u.s. so we went to see some farmers reentering the market place in the u.s. is considering sort of billions in aid that might trickle down to deere as well. scarlet: is there revenue that deere can tap? they have talked about things on the horizon. michael: you know, they are kind of keeping r&d flat this year and i think it is just going to be kind of a cost control effort for now. scarlet: that is something that does not necessarily excite investors once he gets past the first -- you get past the first wave of class cuts that move the needle. it's not that far from a record high, within 3% and if you look at how it is done over the past year or past five years, it has outperformed the s&p 500. what has been supporting the price on this time question on michael: just a long-term tailwind of a growing group population in demand for food. that will be supportive for

years to come and deere has been a leader enough time to me and some of the other precision planting capabilities that really do help farmers maximize yields even in down markets. getting that upgrade momentum even in a down market is a little bit of a sign of success there. scarlet: fantastic. michael joining us from chicago on deere. best shift from agriculture to the auto industry because kkr is considering investing in nissan after its talks to merge with honda fell through. this is according to people familiar with the matter. representatives for both kkr and nissan declined to comment. here with more on this story is numbered news deputy team leader and senior reported. nissan is not in great financial shape. honda is also struggling a bit there. that is why there was this talk about them joining forces but why specifically does nissan

need investment from a company like kkr? >> nissan is in a tough financial spot at the moment. they had to cut their focus for the year and talk about restructuring plans and they are still not done. the companies had a sort of history with problematic, outdated models. they had history with management ever since the ouster of carlos ghosn so for them, they are in a very tough spot at the moment and for them to survive as the industry electrifies and what technology gets in, nissan -- which is why we understand kkr is considering its early stages but it is considering an investment either in the form of debt or equity and we are not sure yet how -- invest in it. scarlet: is it just over for now or is it permanently over question market is the latest? michael: on the honda deal, things have come to a standstill and the two companies announced a mutual parting of ways and

help them avoid being in the yen breakup fee so they sort of amicably walk away from that. but at the same time, it did throw out the question that together, they could have been one of the biggest automakers in the world and now, they sort of hard to compete against each other and against a wider ecosystem especially with the chinese automakers gaining strength and everything else. scarlet: what does honda's performance look like? you mentioned nissan and the struggles it faces. are they in a much better position? michael: it's all relative and at the moment, i mean, the auto industry will have to invest heavily in terms of technology, in terms of adding all sorts of facilities and also getting consumers excited about their future. so investment requirements are going to go up so for companies like honda and others which are looking to sort of try and sort of scale up and scale up profitability, it is important to see if they can actually

start developing models that meet consumer's needs, actually. scarlet: it's not just kkr. it is also circling around nissan and in fact, that might be what prompted japan's government to encourage the marriage of honda and nissan. where are we at? do we know what is going on? >> dare interested in buying rent owed -- renaud. honda has said they would be interested in buying their stake in nissan and they talked about how they would be a partner rather than take over nissan and they also have sort of ambitions in the electrification, electric vehicle space, and they talked about how they want to scale up and build out that business so for them, this is an interesting opportunity for them to actually get in with an automaker that has the brand heritage they have. scarlet: has the manufacturing

capability as well. sid philip on kkr, looking into perhaps investing in nissan. coming up on bloomberg markets, we discussed the reciprocal tariffs that are expected to be announced by president trump in the next hour and of course, j.p. morgan chase ceo jamie dimon is here today. take a listen to what diamond said about deep banking which is a hot topic. -- de-banking, which is a hot topic. michael: what is your message? michael: there are a lot of fees that could be fixed. the rules and requirements are so onerous and it does cause people to be de-banked, should not be.

scarlet: this is bloomberg markets. i'm scarlet fu. president donald trump promised to announce reciprocal tariffs on the old --

let me ask a very basic question. what are reciprocal tariffs and how are they different from the tariffs president trump has already threatened and in some cases imposed. enda: in the view of president trump, this is all about leveling the playing field. we turn to them. he wants to get the tariffs matching from the u.s. and other countries. now, the thing about this is we don't yet know exactly what the announcement will be. we don't know what sectors or products or countries, how will be treated. this is a fairly technical matter on this when the announcement comes with the headline point is that it is another step in the sort of aggressive trade policy president trump is pushing. the basic idea is that he says if tariffs are low on getting kids into the u.s., then tariffs should be -- into auto trading partners around the world so

there is a potential for some -- among trading partners. it is potentially not a big development in this evolving story. scarlet: we know narendra modi is in town and he is due to meet with the president later on today so we presume that india is going to be a big target here? enda: it is coincidental timing that the indian per ministry is here because india does have a sweep of tariffs and other nontariff -- doing business with that country. india has already responded to president trump's new trade policy and the tribes to get ahead of it by bringing tariffs on u.s. goods in some areas so it is certainly interesting timing that two leaders are here but it does speak to the point that president trump is serious about going ahead with this idea that he wants to level the playing field with the rest of the world which he says will bring business back to the u.s. and raise revenue. skeptics say tariffs will impact the confidence for consumers and businesses but right now, we are going to get another announcement for trade policy

with the rest of the world. scarlet: this announcement is coming from the oval office. another basic question for you, during the first trump administration, he announced a lot of bilateral trade deals with individual countries. does that matter in this instance of reciprocal tariffs? enda: it doesn't necessarily matter. the trade agreement with china was one of the bigger ones. that was all about china buying essentially more goods from the u.s. and that deal has already been assessed separately. there is a stream where the deal will be analyzed in the u.s. will come back and decide whether china has met its obligations. it is a separate thing more completely. the basic principle is that president trump wants to level tariffs up against on trading partners around the rest of the world and to your point, free trade agreements are going to bring tariffs down to zero and this goes against the spirit of that and raises the question about how well other counties retaliate? scarlet: really appreciate you giving us a sense of what we

might look for when president trump does leave for the oval office. that does of for bloomberg markets. you are looking at a dollar that is weaker ahead of president trump's announcement. yields are coming down while the equity market is up by .5%. balance of power is up next. this is bloomberg. ♪

>> this is "balance of power."

live from washington, d.c. joe: this is the big one so says president trump. welcome to the faster donald trump show in politics as donald trump promises reciprocal tariffs to be announced shortly just as the prime minister of india arrives for a state visit. i am joe mathieu alongside kailey leinz in washington on another busy day. the president has no fewer than four opportunities to interact with the media today. kailey: it is because we have so many stories we are following. reciprocal tariffs, the announcement could be coming moments from now. an hour later he will be swearing in rfk junior who was just confirmed as health and human services secretary. we also have to pay attention to capitol hill as the house budget committee is currently working through a