>> welcome to "bloomberg markets." let's get you checked on where things stand in the market across asset classes. the s&p 500 clinging onto again, up .20%. just barely at this point. indexes coming off of their session highs. clear direction in the bond market. the upside with yields lower.

wholesale inflation this morning confirmed the disinflation theme we have seen this week. the dollar sinking, losing .60%. bloomberg dollar index now at a three year low. traders are increasingly convinced they have room to cut interest rates once the economy shows clear signs of deterioration. oil prices have turned higher, turning on yesterday's big surge, up .40% on geopolitical risks. moving over to some individual equity movers to find out what they are moving on. >> oracle soaring to its highest intraday level on record. they project the 70% gain in infrastructure sales this fiscal quarter. oracle has been gaining traction as traders are optimistic about the software industry navigating tariff concerns and the geopolitical environment. they have been capitalizing on the demand for data centers. over in crypto land, shares of coinbase trading lower after a

broad pullback in risk assets after president trump said he intends to send letters to trading partners in the coming weeks to set unilateral tariff rates. other names are falling today in sympathy. gamestop is tumbling for double-digit losses after they plan to offer 1.75 billion dollars worth of convertible bonds, making the company one of this year's biggest issuers of the equity linked securities. scarlet: thank you so much for those individual equity movers. outside of movers, we got fresh data on the broader u.s. economy this morning. the numbers are lining up in favor of a more dovish federal reserve. ppi, consumer inflation did earlier this week. to break it down here is jennifer lee, it is good to speak with you. i talk about the ppi coming in cooler than anticipated.

i also look at the revisions for april and they were higher. was it a bit of a wash in the end? >> a little bit, thank you for having me. i have noticed this with the ppi, there have always been significant revisions. i'm taking it with a grain of salt, i was bewildered and befuddled. what is going on with inflation, where is the inflation coming from with all of the tariffs? there is too much uncertainty, but it puts the fed in a much more dovish position. i don't know if they will be ready to cut. we will find out what they say next week. we are waiting for the hit from the tariffs to affect the inflation numbers -- inflation numbers. scarlet: we have been waiting for that for a while. are we thinking it will come in the second half of the year, in the first part of 2026, or is it too hard to project that far out? >> i'm going to say i door

number two and say it will come in the second half of the year. i'm curious to see how much of this is due to timing. so much frontloading ahead of all of the tariffs. businesses, retailers, manufacturers are grabbing the inventory they could and buying it at a lower cost before the prices went higher. there was not really huge push to push those set higher costs onto the u.s. consumer. there could be some political pressures, we were member the phrase eating the tariff. i wonder how much that plays in. the consumers are more cautious, putting more, talking away in savings and not buying as much as they could be. at the same time, the average tariff the u.s. was paying was at 2%. it went as high as 26%. down to about 15%.

still seven times what we started off at the start of the year. we have to think this has to be pushed out to the u.s. consumer. scarlet: the u.s. consumer's willingness to spend depends on whether they are employed are not and how the wages look. when you look at the latest jobs numbers. we are talking weekly jobless claims. that came in higher than anticipated. it is a four-week moving average and the continuing claims raise eyebrows. the thinking is the federal reserve has room to cut interest rates if the economy deteriorates. our rising continuing claims and averages of jobless claims, are there signs of deterioration? >> somewhat, but looking at the four-week moving average is more important than looking at the week to week moves because they are still volatile. we have to look at the different jobs data. the nonfarm payroll report, postal surveys consumer confidence measures. they have the surveys of whether or not jobs are plentiful or harder to come by.

also different what the purchasing managers are saying about hiring. there is so much uncertainty, a lot of businesses are unwilling to let go of a lot of people until there is more certainty. remember how hard it was to bring people back five years ago after the pandemic. some industries are looking at a labor force that does not have the qualifications they are wanting. they have got deportation efforts underway, some sectors will be short a lot of workers like agriculture, housing, we are still looking at and even labor market until there is uncertainty. scarlet: you have mentioned political pressure. it is worth pointing out the president said he does not plan to fire jay powell. but he would soon pick his nominee to lead the central bank. he's demanding the federal reserve cut interest rates. he's looking for the fed to

lower, help the federal government in some ways, because the treasury issuance at high rates continue to take their toll on the federal budget. in terms of what that means for the fomc meeting next week, the fed is not going to do anything in terms of rate cuts. what are you looking to hear from the press conference with jay powell that might touch on some of this pressure? >> he's going to be -- i'm going to assume he's going to stick to the line that they have been using for some time, that they are patient, well-positioned to wait. the economy is still moving along. i don't know if they can stay strong, but fairly balanced. i think he's going to do a little bit of this, a little bit of that. balance it out and try to be as neutral as possible. if there is any sign he's moving towards rate cuts, which i don't

think are warranted just yet. there could be speculation he's not going to buckle to pressure. he has to be careful how he proceeds with his responses. which i'm sure he will get during the press conference. scarlet: before i let you go, we have a big honda option coming up at the top of the next hour. there has been a lot of concern there is not as much appetite for long dated treasuries at a time when people no longer are looking at the u.s. treasury market as a risk-free investment. how big of a barometer is it for someone like you looking at the overall economy? >> it is obviously a good barometer to look at, it gives us a good idea of how foreign investors are looking at for u.s. treasury. whether or not they have as much confidence in these u.s. assets as they once did. looking at what happened in japan as well. so far, it has been pretty

mixed. the three-year was sort of meh. 30 year we will see what happens. it comes down ultimately to what happens with the one big beautiful bill and whether or not they will be able to -- if the auction is not received well, there will be more pressure on the senate to start slashing structures much as they can to bring the deficit down. scarlet: thank you so much. jennifer lee. the president is speaking right now. some headlines coming out. he is talking about china and how the china deal will open china up and how he and the president of china had a long talk about it and it will happen fairly soon. presumably about a formal trade deal. i'm not clear that is what he's referring to. he is touting his steel tariffs. he's speaking right now and wanted to hear his comments. you can go on the bloomberg terminal. shifting gears to something jennifer just mentioned, tied to

u.s. labor. president trump posting about migrant workers in the u.s., saying "are great farmers and people in the hotel and leisure business," what he personally is involved in, " have been stating our aggressive policy on immigration is taking good long time workers away from them with those jobs being almost impossible to replace." he goes on to say the u.s. should protect farmers but keep criminals out of the country and "changes are coming." let's bring in kailey leinz for more. changes are coming. that leaves open, that is a broad statement. >> we have to consider the economic and political backdrop when we consider the statement from president trump who seems to be acknowledging his immigration and deportation policies have caused labor shortages. we have seen evidence of that in the nonfarm payrolls data. a jobs report that we got last friday which showed for two months, we have seen the biggest

two month decline in the foreign-born share of the workforce since 2020 with more than course of two month having exited the workforce. that speaks to the dynamics specifically in areas like farming, which the president references the department of agriculture has estimated up to 850,000 crop workers in the u.s., about half are undocumented. that issue of people in the country who are undocumented speaks to the political backdrop that this president and administration wants to make good on his campaign promise to carry out mass deportations. that is something they are pursuing, higher arrest levels of undocumented individuals which is why we see the ice raids taking place, sparking protests in areas. a lot happened most recently things like meat plants. 70 people arrested in nebraska or even on farms themselves.

it is unlikely given the administration, they are very popular and strong political point for them that they will wholesale he'll walk back from the effort entirely. the changes the president to be talking about based on previous statements he's made in the white house that has followed up on him a it is not the first impression from has raised concerns when it comes to deportations. could be changes to these programs, which grant leisure for temporary seasonal crop workers, which does work in high character and entertainment. we could see some changes in those policy areas. the president did not necessarily get specific on that. scarlet: did not leave himself a lot of different options. fantastic stuff. kailey leinz will be back on bloomberg television in about 50 minutes time. coming up on "bloomberg markets." the tragic news of the boeing jet crash in india. the latest on that. this is bloomberg. ♪

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>> this is "bloomberg markets.". more than 200 people were found dead today in western india after a boeing 787 dreamliner crashed shortly after takeoff. the accident on the flight that was bound for london marks the worst ever for one of the most advanced planes. there are many city drivers. thanks for joining us. can you tell us more about what you know so far? >> the latest, more than 200 bodies have been recovered at this point. there were 242 passengers and crew in total on the plane.

most of those individuals were british nationals and indian nationals. we are currently kind of waiting. we don't know at this point if there is any indication of what the cause might have been for the crash. a lot of that is likely to sort of develop in the coming weeks and months. scarlet: what can you tell us about the aircraft involved in the crash? -- scarlet: our aviation regulation reporter, how involved is the faa and other regulatory authorities in the u.s. with this incident? >> under global standards, the country where the crash occurred, india, there are authorities will take the lead on the investigation. we have a u.s.-made aircraft involved in this. the ntsb will lead a team that includes the faa, they will go over, provide their expertise, oftentimes they will send for an

engine expert, anyone else they think might be helpful to aid. they are heading over there and they will be assisting. scarlet: unfortunately, boeing has had a lot of experience with aviation regulators of late. it's come under scrutiny from the faa and how does this add to that story? >> it is not a great moment for boeing, because there were coming out of the tragedy that was caused, the crisis of confidence that was because at the beginning of last year when one of their panels flew off of a 737 max plane after takeoff. they have been available for heightened scrutiny from the faa, they have released caps on production of the 737. they are starting to trend in the right direction, this incident does not help. i will say that we don't know the cause of this, and we cannot for certain say it was a manufacturing issue or some

other issue. we have to wait and see how that develops. boeing was starting to come out of that situation. scarlet: thank you so much for joining us. the plane was powered by two general electric engines posting on social media that it is assembling an emergency response team to go to india to help support the investigation. coming up on bloomberg markets a new proposal from the treasury department could hit some of america's top universities where it hurts the most. this is bloomberg. ♪

>> this is bloomberg markets. time for the muni moment. the treasury department may revoke taxes and status of universities and ambitious scholarships and other programs.

it would threaten the financial stability of hundreds of schools and mark yet another escalation of president trump's effort to reshape the higher education industry. coining us to break it down is todd gillespie. this is not a done deal. in the early consider in stages, but we are talking about the irs. how far in the process are the? >> it is unclear, we know they are considering this. the tax policy where the rules are normally drafted and considered is discussing the possibility of codifying what trump has threatened harvard and columbia with, the tax-exempt status that nonprofits across the u.s. have the privilege of having, they don't have to pay billions of dollars in taxes collectively. essentially revoking that status in order to ensure the schools don't discriminate on race in

any context, don't favor racial groups, whether with facilities that they use, programs they are a part of, scholarships, i think minority backgrounds might have access to them, forcing the schools to adopt race blind policies or risk financial stability. >> upon -- across every thing they do. i'm curious how you think it fits in that universities can't use race as a factor in their admissions. that was specific to admissions. >> exactly, the 2023 case against harvard, we know it basically said you can't factor in race, that did change the stats we saw at harvard. it has not necessarily filtered through in other areas. it seems the treasury department is using tax law and tax guidance to make sure the same principles are applied across campus life.

left-wing bias in higher education institutions across the u.s. beyond the department of education. this is looking at levers across the government, maybe in the irs . financial levers the trump administration can use to achieve those same social policies. scarlet: you mentioned the white house has targeted harvard and columbia, these elite schools. this move would affect universities far beyond those schools. you talk about how the tax-exempt status saves these schools a lot of money. how else do private universities benefit? >> you're talking about 1500 colleges and universities across the u.s., small nonprofit private colleges in the midwest, in the northeast, schools that don't necessarily have a huge cushion or a huge endowment like harvard potentially being forced to change the way they run on

campus to comply with this or maintain the financial stability. this goes beyond a lot of the tax deductions, these schools get tax-exempt status that their bonds pay out. they don't have to pay tax on the educational buildings that they own on campus. it is not just federal taxes, it also applies on a local level to local taxes. often state local taxes will recognize that status to save those colleges and institutions on a local level. the potential implications are wide-ranging, they depend on where the schools might be in the u.s., it depends on how much they rely on philanthropy, their endowments to support them financially. the potential knock on effects are really fast. scarlet: just to tie it back to

our muni moment segment, a lot of schools will be forced to dip into the public markets to raise money to continue finding -- funding themselves. does the move should the treasury follow through with it require any approval from congress? >> no one of the key things is it would be amending revenue procedures that exist. revenue procedures are essentially a form of guidance the treasury gives to the irs and how the irs should enforce existing laws. as a layout over existing legislation that does not need congressional approval can enforce these on their own. scarlet: todd gillespie, thank you so much. reporting how much the colleges might be deprived of their tax-exempt studies. the treasury department is looking into it through the irs. coming up the fintech company chime set to make its public debut. a busy week for listings. we will tell you more about the new shares soon to be making their debut. this is bloomberg. ♪

scarlet: welcome to bloomberg markets. i'm scarlet fu. we have the s&p 500 gaining ground, up .30%. you have tech and utilities leading the advance with the tech group up by more than 1%. a rally in treasuries. the yield on the tenure goes down by more than five basis points, 4.36%. we are awaiting a mammoth 30 year bond auction and we will bring you those details when they cross. the inflation data that came out today, confirming the this inflation theme set by yesterday's cpi report. as a result, traders are increasingly more convinced the federal reserve has room to cut rates that is sending the dollar lower. bloomberg dollar index had a

three year low. oil prices bounce around. they were surging yesterday on geopolitical concerns. they flipped into the green earlier, just below $68 a barrel. highlighting individual equity movers. bringing in emily graffeo. >> shares of oracle right now are at a record high. the stock of about 14% after an earnings beat. the software company projected a 70% gain in infrastructure sales this fiscal year. it will be driven by strength and the focus on ai and cloud computing. really good earnings and a number of wall street analysts upgrading their price targets. jeffries and barclays and evercore were some of those getting ever more bullish on oracle. another tech news micron shares. after the company announced it will spend $200 billion on a u.s. manufacturing and r&d project.

we could call the shares unchanged right now. really did not see a pop or anything like that after the news. it could be because the $200 billion figure is a $30 billion increase from what they projected previously. bloomberg intelligence says this investment they are making can take several decades. the news not really exciting shareholders. watching shares of adobe. this company is reporting earnings after the bell. the stock is up. it is down 6% year to date. the focus is going to be on their second-quarter revenue. analysts are expecting second quarter revenue to come in at $5.8 million. and also on adobes picture editing and whether the ai photo editing tools are seeing customer interest. >> we will be covering the adobe earnings after the market close. tune into the close for that. emily graffeo, thank you. let's talk about another soon to be mover.

that is china financial. surge for the first time today. educated to open at $50, almost double its ipo price of $27. bloomberg's startup reporter joins us from los angeles with more. tell us more about the fintech company that would raise $846 million. what does it do? >> it is a feeless bancwest serving -- where if you use other bank accounts, you don't get overdraft fees as many of the other types of his. it is targeting people who are underserved by the traditional banks. in some ways they are similar to new bank, the brazilian fintech that went public several years ago. scarlet: not a bank but offers banking type services. at its ipo price, china had a market value of $9.8 billion.

at one point when it was privately held it held as much as $25 billion, that is a huge drop off. >> it is. you look, it is about to double in price when it opens. it is indicated to trade above 50. priced at 27. you would double that and get to $20 billion pretty quickly. maybe by the end of the day you had to $25 billion mark. in general, silicon valley knows that the 22 anyone numbers were a boom. it is similar to the.com boom of 20 years prior. no one expects to go public necessarily with that same number. scarlet: tell us about chime's investors. who they are backing up and if they are going to stay put. >> they will sell a little bit of their stake. most are remaining put. it is iconic, cafe innovation, a

long list of adventures, many silicon valley investors who have in betting on this since it was a young startup. scarlet: did the company have to go public now? >> i think there is always a question of timing for these multibillion-dollar venture backed companies and when they should go public. when they go public, they get liquidity for their shareholders and employees who are often paid as a big part of their compensation. there is always pressure to go company -- public with these companies. two they have to is the question because there is a lot of capital. scarlet: got it. chime cost listing is a mini rebound in ipo's since the record volatility that we saw in

april. how would you characterize the public market debuts we have seen during this period of relative karma? the post liberation day tariffs pause period. >> there have been about five or six venture backed ipo that have gone public in the last few weeks. they've gone well. they demand -- the demand has been much higher than expected. the circle last week more than tripled following its ipo. it shows the companies that were able to go public are doing well. but there aren't a lot of companies that were ready. a lot of silicon valley companies, even though they are at the scale to be a public company, we are very much spooked by the correction of 2022. a lot of them have to get their ducks in a row before they are ready to ipo. not a lot coming in the next few

months. might see in active fault. scarlet: katie ruth, our startup reporter, we are keeping an eye on chym and we will let you know when it begins trading. coming up, another ipo that drew the attention of investors. circle has been soaring since it began trading. we will talk about stablecoins next. this is bloomberg.

scarlet: this is "bloomberg markets." president trump is speaking after signing executive orders blocking california ev mandates. on israel, he says an israeli

strike on iran is not a minute, but could happen. he said he would love to avoid the conflict with iran. when it comes to foreign students, the president is saying he's in favor of letting foreign students stay in the u.s. and he will probably do something about talented immigrants. his comments on foreign students after the education department and secretary of state were making moves -- or difficult for students with student visas to continue studying in the u.s. we will keep an eye on these latest developments and bring you more headlines as they cross. outside of the president posco and's, we have been following stablecoin legislation making its way through congress. the treasury secretary testified before lawmakers about stablecoin potential. >> stablecoin legislation backed by u.s. treasuries will create a market that will expand u.s. dollar usage via the stablecoins

around the world. and i think 2 trillion is a very reasonable number. i can see it greatly exceeding that. scarlet: for more on where we stand with stablecoin legislation, let's bring in nathan dean, covering financials and policy as a senior analyst. where are we with this legislation? it was a big story about a week ago. the wheels of congress move slowly. we are pretty much done with it in terms of market? -- mark up? >> we are getting close to passage. senator john thune fired klobuchar, the start of the senate voting process. 68 came in fourth and improved the bill, so there was significant democratic support for the bill. we think there will be a final vote on monday. it will go to the house. altering this legislation if at all.

probably late june or more likely july. this does remove a lot of regulatory uncertainty, especially for companies like circle. now they can go forth and know the rules of the road when it comes to u.s. regulatory policy. scarlet: good news for circle. any other companies that would be primary beneficiaries of this? >> coinbase and robinhood from a certain standpoint in terms of the usage and stablecoins could increase usage or crypto. they are looking for another separate piece of crypto legislation, the clarity act. this is going to the house. we think it will go much of a slower process. even though democrats were on board with the idea that regulatory gaps existed for the stablecoin market, they are less certain of that for the rest of the broader crypto markets. i don't think the bill will pass, but we are telling clients wait for the first half of next year for the bills that we get the same regulatory clarity or similar regulatory clarity to coinbase and robinhood. scarlet: the first bill, the one

closer to getting through the senate and moving onto the house deals with stablecoin, the second one is broader with digital currencies overall, is that right? >> that is absolutely right. the biggest thing the companies want is regulatory clarity. they don't want to return to where the sec can come forth and say here is enforcement action because you are not following regulations. it is unlikely the trump administration, but they need congress to come forth and pass this so if a future administer she decides to change their mind, they can go forth and put out capital knowing that they will not have this enforcement action. when it comes to stablecoins, $10 billion and up, those types of stablecoin issuers would have to register with the federal government or federal reserve, the office of currency. under $10 billion, you have to issue with a steep regulator and be 100% backed up by high-quality liquid assets and can't pay yields. there are some discussions about altering that in the house. i don't think it will go there. i think we want to see this over

the finish line. scarlet: nathan dean, thank you so much. over here on the latest stablecoin legislation. nathan been with bloomberg intelligence. we want to stay with the digital coin realm and bring in our stock of the hour. the stock of the hour is strategy, formerly known as micro strategy. shares of around 30% this year. those moves have drawn criticism from infamous short seller jim chain owes. he has a trade where he would buy bitcoin and short mst our stock. this is a contention that played out on bloomberg television this week. let's show you the strategy executive responding to the trade. >> i don't think he understands what our business model is, we are the largest issuer of bitcoin backed credit instruments in the world. last week, we raised $1 billion by selling our preferred stock noncumulative call stride. that means we basically barred

money we would never have to pay back to pay a dividend on, but we could suspend the dividend if we needed to. so jim has been thinking we somehow needed to sell the equity. at the end of the day, if he's lucky enough to short the stock below one times now, we will issued the preferred, buyback stock and make money for our shareholders. if the stock trades at a weak premium, we will sell the preferreds. if the stock rallies up, he's going to get liquidated and wiped out. scarlet: michael seiler, the executive chairman of strategy. i later interviewed jim where he fired back. >> i love when management say he doesn't understand our business. michael saylor is a wonderful salesman. that is what he is. he is a salesman. what he's selling investors is the concept you give me your money and i'm going to get

bitcoin and hopefully the value of my stock trades at a premium to the value of the bitcoin. as long as i can keep doing that, i generate value. this is -- i call it financial gibberish. scarlet: to help us break down the war of words, let's bring in michael regan who covers digital assets. we had a front row seat to this dispute. this idea of what strategy is doing, selling shares, whether it is preferred or common to buy bitcoin to build up its bitcoin holdings is something not limited to strategy. more and more companies are doing this. >> more companies are doing it, we have to see how successful they are. the strategy was sort of the leader in this concept. what michael saylor calls smart leverage. his preferred stock with a high dividend. him entering the mix is really fascinating because -- for a couple of things. he made his name --

scarlet: looking for financial fraud, maybe not even a fraud. accounting mishaps. >> that type of trade is a short-sellers dream. the bloated in facebook. that is not what the trade is about. he's not necessarily betting that strategy shares will fall. that they will not perform as well as bitcoin. he's facing it all on the fact that strategy hold a certain amount of bitcoin but it's market value is almost double that amount. the 60 something billion worth of bitcoin. he just doesn't see a logic or rationality to explain that. he things it should go back to trade for what the bitcoin is worth. i think it is a rational, logical strategy. markets can sit stay, longer than you can sit stay solvent. in the money a little bit on

this trade. the question is how long does he think that premium is going to shrink? scarlet: as long as a premium narrows from where he bought it, but the other point here, this is not a straightforward shorting trade. there is a meme stock element and bitcoin that is driven by so many factors starting with momentum. there is a lot of unpredictably. >> you bring up the meme stocks. a few years ago when the retail yellow trading crowd really sort of targeted stocks that payments short-sellers were going after. i don't know if you have any indication of that. that is a risk to his strategy as well. we are not quite in the same environment, in that sort of delirious trading moving the market. certainly is a risk. michael saylor has this sort of cold following.

so there is that risk. it will be fascinating to see how it plays out. scarlet: we will be watching in keeping an eye on that premium strategy. formerly microstrategy trades out relative to bitcoin holdings. thank you so much. coming up on "bloomberg markets.". the u.s. treasury be auctioning off $22 billion worth of 30 year bonds. one of the most highly anticipated events on wall street this week. we will tell you why and what could come out of it next. this is bloomberg. ♪

scarlet: this is "bloomberg markets.". chime has begun trading. it opened at $43 a share, 59 percent premium from its ipo price of $27. you can see the trade here of chym. currently at 43 point 65. the non-bank lender fintech

company opening for trading at $43 a share. let's talk about bonds. in about eight minutes time, we have a bond option, $23 sale of bonds, a portfolio manager joins us. a chief bloomberg and asset management core plus bond etf. it feels at the bond option with a lot of reverence. it holds the answers to existential questions about the treasury market. how much of a litmus test this today's 30 year bond sales? >> it is important. a lot of duration coming to the market, a price clearing event. what we look at is whether it comes through the wi. at 1:00 we look at bloomberg and see what the level of the 10 year is and whether the new bonds come in. and we look at the end user demand. primary data has to do the option, what does the amount of end-user down at the auction. i will say there have been some weak auctions in japan, the 20

year was one. but we actually have decent demand at auctions, which tells you the market is realizing that value has been created. are we watching if that is enough? that is what today will tell us. are you being compensated enough for 30 years? it is a litmus test as you point out. we have them pretty much every week. another set of options to stress about. bonds as we are thinking about the true risk-free nature of bonds, they become a good window into that. scarlet: you mentioned the japanese bond auction. they move on their own reasons. >> separate economies, macro economic backdrop. it is important because global investors think about duration in a global fashion. i can buy gears, bonds, treasuries. if you have a lack of demand for

duration and it is showing up in japan, it can absolutely show up in the u.s. global bond curves steepening. are they steep enough? what happens to the front end? the level of rates are attractive. these rates have been rising. as we think about rebalancing portfolios, even slowing growth environment without the inflation, we have seen inflation the last few data prints. maybe these are attractive. scarlet: are they attractive enough for foreign buyers who have been speaking with the treasury secretary about how to move forward with our trade relationship? >> i think that is a trillion dollar question if you think about how much foreigners u.s. treasuries. the trade balance is one. if you have a trade deficit with the u.s., china has to buy treasuries and other assets, u.s. financial asset, at what price is the question? there is the trade side, the currency side.

we are seeing the dollar weakening. i think the escape valve might come from the dollar side. if the dollar keeps weakening at some level, that is compensating a foreign investor for buying treasuries. there is a lot of fear about the south america trade. we have not seen it. i think the risk is getting priced in. we have not seen foreigners sell treasuries or step away from options. scarlet: always a pressure -- pleasure, thank you for joining us. just another quick mention that we are keeping an eye on china shares currently up at $41. that is after it ipo at $27 a share. they opened at 43. i'm scarlet fu, that does it for bloomberg markets. we have the 30 year bond auction, $22 billion worth in about 3.5 minutes time. balance of power is up next. this is bloomberg. ♪

>> this is "balance of power." live from washington, d.c. joe: the latest test of president trump's economic policies. welcome to the thursday edition of "balance of power." the u.s. treasury holds a multibillion-dollar auction of

30 year bonds. it is happening moments after chime debuted on wall street. alongside kailey leinz, i'm joe mathieu in washington. thank you for being with us on the early edition of "balance of power." investors balancing worries about debt and tariffs among other things coming out of washington. kailey: the question will be demand for maturities, whether there are fiscal concerns about the trajectory of the deficit of the united states with the one, big beautiful bill being pushed by congress and the senate. it will happen at the white house later today with senate leaders like the finance committee, john thune and president trump to continue to advance that agenda. as consider the deficit, president trump speaking at the white house earlier today suggested he is not going to fire chairman powell but encouraged him to cut interest rates in part to make sure the debt burden of the u.s. and the interest payments joe:. joe:floating the idea of auto tariffs as he tries to repeal signing resolutions to repeal statewide ev