strengthen the alliance between the united states and europe. the president also had a message for rivals china and russia before he meets with president putin next week in geneva. pres. biden: extending the alliance. to make it clear to putin and to china that europe and the united states is tight, and the g7 is going to move. >> mr. president, do you plan to come out with -- for the world? pres. biden: i have, and i plan to announce. mark: also on the agenda, increasing coronavirus shots. the president will attend nato and european union summits in brussels. the president and european union leaders will commit x week two ending outstanding -- next week to ending outstanding trade violations. for two will promise to remove tariffs related to steel and aluminum next year. they also will agree to resolve

a dispute between airbus and boeing that will last almost two decades. the united states is expecting a mutual return to its nuclear deal. foreign powers are meeting. they are trying to explain iran to destroy the cache in exchange for lifting of sanctions. global news 24 hours a day, on air at bloomberg @quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. matt: it is 1:00 p.m. in new york, 1:00 a.m. in hong kong. i am matt miller. welcome to "bloomberg markets."

here are the top stories we are following for you around the world today. yields take a dive. we will bring you the result in just a moment. plus, we are going to discuss the continued rise of meme stock with the former ceo of dominion. in this infrastructure talks break down in washington, we will get more perspective of what could be the biggest infrastructure package in decades with the former ceo of morgan stanley. we are finally seeing a little bit of traction to the upside with the s&p 500, rising 1% to 42%. the u.s. 10-year yield holding below 150, right now at 14924. we see a little but of a bounce in the bloomberg u.s. dollar index, just up a little bit to

11.18%, but interesting to see, and of course the inflation numbers allowed to point out for dollar investors. new york crude now down $.49 a barrel. let's get more reaction of what we saw in terms of the 10-year option right now. bloomberg's cross at reporter katie is with us. we see the yield down at 1.4924. it dropped and came back up briefly. what do the results look like? katie: matt, this is pretty surprising. most of the analysts i talked to expected to see a tale here, because of the pretty lousy setup going in. you saw a big rally in bonds. typically before a big sale like this one, you expect to see yields be pushed higher. we saw a big bond rally, but still a pretty solid result, all

things considered. that could be because of the factors you are seeing push down yield. you have saving inflation fears that have been helping prices in the secondary market. it looks like it is moving a bit in the primary market as well. matt: it is interesting that inflation fears are fading. bloomberg economics expect the numbers to come in. how key is the cpi data? katie: we will see, because there is a scene you have seen play out across asset classes, even inflation expectations. it really feels like this reflation trade that we have been calling for months has taken a pause. there are pretty hot numbers expected out of the u.s. cpi report both monthly and on an annual basis. we will see that revise reflation trade, but you have seen a lot of narratives. we have already seen the big

move. you expect growth to still be strong going forward but to moderate a little bit. so we will see if that is actually the case. tomorrow's numbers will be just another piece of that puzzle. matt: we are looking at a headline number of 4.7%, year-over-year, of course before 3.5%. katie, what do you see across the curve? katie: you see it more in the belly, toward of -- sort of toward the end of the curve. you have prices out, very optimistic prices about when the fed is going to move its interest rates. you see demands near the front end, even though it is not too much for the yields to move much more. you see the consensus sort of being around that jackson hole meeting in august when the fed might detail some plans on tapering, but in general, you start to see some of that fed hike pricing leave the bond market, and that has been good news to the front end.

matt: what are the expectations now in terms of fed rates? i saw a chart that our producer, dan curtis, put together the other day, not looking for a wave, an increase until 2023? katie: that looks about right. look at the data. the fed has made it very clear they are still looking for a string, a series of good economic reports. that jobs report that we got last month for the month prior, that really put a big dent in that. that really gives the fed cover to push it out even further. even though you have got pretty good numbers for may, the headline numbers came in a little bit below expectations, still tremendous job growth, a solid report into spring, but nothing that will change the fed's needle at all. it feels like the bond market is coming to grips with that, but the fed will be off to the sidelines for long time. matt: what if we get a miss tomorrow on inflation?

does that mean we are off to the races in terms of stock? katie: i would watch tech stocks, because they have been trading sideways since march, pretty much. are we asking as much as you might expect to today's big bond rally? the nasdaq 100 up about .3%, but if you saw inflation numbers miss tomorrow, i think that is trying to light a fire. matt: all right, katie, thank you so much for joining us. katie gry feld, bloomberg's cross asset reporter, talking about the markets. coming up, we will see the broadening of the group. joe moglia joins us, former ceo of td. ♪

matt: this is "bloomberg markets ." i am matt miller. trading in meme stock's took off again this week. joining us now is joe moglia, the former td ceo and ft new america chairman. joe, appreciate your time this morning. let me get your take on why this continues to come back. retail investors seem to want this stop on stocks that are highly shorted. joe: well, first of all, hi, matt. when you look at what is going on with regards to the retail world, i think there's a lot of people, a lot -- lack of sentimental's and some of those stocks, but besides fundamentals, there are technical reasons why stocks should really rally, and that is

based on the buying and the selling, the demand, and everything going on from that inspected, and when you have a tremendous amount of buyers coming in, especially something giving the short squeeze, you have the leverage, that is going to have an impact on the stock. that is what we are seeing. matt: why do you think -- first of all, what happened to the shorts in this kind of environment? it does not seem like they are afraid to go and sell the shares. joe: you know what, i think, again, i am not shorting any stocks, so i am not in that boat. having said that come as a well education person -- well educated person with regards to the markets and what is going on, usually major institutions are doing that, usually they are doing it for fundamental reasons. maybe they are not looking at it as far as the technicals and what happens on the retail side, if they get burned. i think we learned the most, matt, when i trade ends up going

wrong for us. so if i am an institutional investor, and i'm getting burned because of retail, i would do a much better job of watching that next time. at the end of the day, you have got a trade because you believe it. some of the analysts, for example, you know, the analysts are talking about it like the target is high, the target has changed. this is not anywhere near what it is worth, and you are better off shorting it. the problem with the short as it can go against you, and it keeps going against you and your leverage. you have got to start to buy the shares back, and you start to get really pressured, so you are lost on a short. whereas if you buy the stock, you can go zero. you cannot go any shorter than that. if you shorting thing at 10 and you think it is a great short at the time and it is trading at 120, you know, that is not a good trade. but my guess it is for fundamental reasons. matt: why do you think retail

investors are doing this, and where are they getting liquidity on it? i guess the seams arouse something -- around something makes sense and i reopened economy, but not at this price. wendy's -- the food is absolutely delicious. i love a frosty as much as the next guy. not at this price. why are they pumping so much liquidity into these stocks? joe: part of the issue is they have been so successful doing it. success tends to breed success, and it is a lagging indicator to tell you what is going on. if something is really popping, wisdom tells you at some point, you have got to trim. at some point, you take off the position altogether. at what point will you be satisfied with the victor? using $10 as an example, if it goes to $20, that is two to one. at what point do you start to trim? i think the retelling best or needs to pay attention to that. having said that, they have been paying attention to the trades.

and because we are getting on the same bandwagon going the same direction, that is a positive impact in terms of what they have done. but still, if you have a trade at 60, and they go to 65 and ones of dropping out dirty, that is going to be painful. i think the retail, we have got to do a better job, i think, of educating the retail investors, so they understand how to protect their position when things move against them. and at some point, things are going to move against them. matt: joe, have you ever seen anything like this before? reddit, the internet is a relatively recent phenomenal, but, for example, in the 1980's, did investors go crazy as wall street investors became, you know, so visible? joe: no. in the 1980's, they did not do that. it was the internet, matt, in the 1980's that enabled them to do that, trade online. so we had the dot com boom.

so many people who made decent livings made a lot of money, but remember, during the 1990's, we had an incredible bull market, but eventually, between march 2000, march 2 thousand three, most of those day traders went out of the business because the market was tanked. back then, you did not have wall street that's, you did not have people like that that were really, really educated that could convince a huge group of retail investors that are avid followers of them that they should be putting on a trend. that is the distance today -- difference today. that is the difference. matt: do you see this as changing the investment landscape, given your incredible experience with this type of investor? is it different now, or is this going to burn out? joe: what is going to happen,

when the market turns, it is going to be difficult for anybody to continue to make money this way, when the whole market is moving against them. now, you can argue as long as you had the reddit leadership, you know, convincing people they should jump in and buy a particular stock, you could still have demand from retail commend if they get a market environment, that means the stock could very well pop. having said that, remember, in the 1990's, the day traders were very successful. they went out of it when the dot-com bubble burst into thousand three. if the world blows up again and we go three to year, i have got to believe that that would be very, very painful for the typical day trader. matt: is this the kind of thing regulator should be looking into, joe, or is this, you know, just a lot of excess liquidity

with time to spend at the crab stable? -- craps table? joe: [laughs] there is a gambling element to it. by the way, matt, the first time gamestop started to go crazy, you know, it had this horrible short and really got burned, and then there were issues with citadel, and remember they went to congress -- you cannot have all of that without the regulators getting involved. i think if the regulators get involved -- they are already involved. if they find something wrong, i have no doubt there will be serious penalties associated with that. if they don't find anything wrong, then you have got to back off a little bit, and maybe there is a better way to protect these investors. a rule when you put on a short or whatever it might be. but if they find something, i am sure they will go after whoever is guilty very aggressively. if they don't find anything, they have got to recognize that this is what is going on in the market right now.

matt: joe, i always appreciate your commentary hope to get you back soon. former td ceo, joe moglia. i have got to bring headline with regards to all of the liquid the out there. 502 point $9 billion is how much banks and institutions are putting into the fed reverse research facility. this is a thing we have been talking about the past couple of weeks. this chart, i think, is striking, because it shows, you know, it goes back to 2016. we had a lot of the retail back then in spikes, then we see nothing with the exception of march 2020, at the beginning of the pandemic. all of a sudden, there is so much liquidity sloshing around that institutions are rushing to put it at the fed's reverse retail facility overnight, at 0% interest, but they need to put it somewhere. very interesting indeed. this is bloomberg. ♪ . this is bloomberg. ♪

matt: this is "bloomberg markets ." i am matt miller. recent concerns about cyberattacks drawing into focus how we get our data. blue cable, the first one manufactured entirely by china, will soon emerge off the coast of the south of france, and it is called the piece cable. it is an actual cord. it connects the internet from one place to another, and here is a look at the issues surrounding it. >> they are the internet's skeleton, about 400 of them already cover the planet, and at the end of this year, the latest undersea cable will emerge off the south of france, dubbed the piece cable -- peace cable. it will be able to transfer netflix from china to europe and africa in just seconds. >> i will mention it will use --

>> the cable itself will be built by hong kong and a french telecom giant. it will connect europe over egypt, 7500 miles across the red sea and the suez canal. another route will head to south africa via can you come over more than 9000 miles across the indian ocean a feat in engineering, but the biggest hurdle may be geopolitical. while way is a big -- huawei is a big holder. >> we have seen data be rerouted to china. we have also seen what happened with the african union, so it is clear that huawei has a pattern of behavior that shows data being moved to china. >> internet giants like google and facebook already said they

will not use the piece, officially, because they have enough transfer capacity, however, last year, google and facebook suspended part of another cable they were supposed to build between l.a. and hong kong between -- over data security concerns. while the u.s. has taken a harder stance against chinese telecom technology, french president emmanuel macron and german chancellor angela merkel says despite these curative risks, they will not isolate china. >> you don't take unnecessary risks, but there are many risks associated with taking an only nationalistic view to technology. it can intentionally break the architecture of the internet. >> and whether or not the u.s. is happy about it, the portion of chinese-built undersea infrastructure is projected to grow from 11% in 2019 to 20% in the next decade, a silent fight underwater for supremacy of the world wide web. matt: sticking with china, it is time now for our weekly segment on the new economy.

surging costs of imported commodities drove china's factory inflation to its highest level since 2008, raising the odds that exporters will begin passing on higher prices to the rest of the global economy, effectively to the united states of america. for more, we welcome andy brown. i saw the china ppi figures when they came out early this morning here. everybody was all of a sudden trying to graph them against u.s. inflation or global economics, surprises, to show that china inflation really drives the rest of the world. is that the case. andy: not too much so far, but i think it is coming. you know, the big picture here is this is yet another manifestation of a severely bifurcated global economy. on the one hand, you have got a supply shop among from emerging economies, big suppliers of raw

materials and other critical industrial inputs, emerging economies still being slammed by wave after wave of covid, and it is leaving moving demand from rich countries, led, of course, by the united states, and the result is, of course, inflationary pressures. china actually has been a shocking zorba for all of this over the past several months -- shock absorber for all of this over the past couple of months. china has a lever to pull, and it does. don't raise your prices. [laughs] matt: i saw they are also putting price caps on a number of basic goods. is it easier for the chinese economy to do that, because when you try to do it in a free economy, it wreaks havoc with the entire system? andy: upstream costs, the cost for upstream suppliers, are

rising because of raw material, input increases, but those are not being passed on, and those big upstream industries are controlled, to a significant extent, by the states, they are state-owned enterprises, so, yes, the state does have a certain command-and-control facility over the economy, and those upstream supplies have not been passing on the cost increases to the downstream, and hence we have not seen price increases flow into advanced economies, including the united states, but that could be changing. one thing i could be looking at is shipping disruptions. that could be a problem. matt: it definitely has been a problem in other instances as well. andy, thank you so much for joining us, andy browne, bloomberg news economy editorial director. this is bloomberg. ♪ this is bloomberg. ♪

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>> president biden's hopes for a bipartisan deal on

infrastructure have taken a blown. his talks with republican senators ended without an agreement. that increases the likelihood that democrats will try to pass a giant spending package on their own. meanwhile, a group of house democrats and republicans have come up with its own legislation. the president is overseas. he is headed to the u.k. for the group of seven meeting where he will focus on increasing the availability of coronavirus shots for lower income countries. after the g7, mr. biden will attend nato and eu summits in brussels, then meet with vladimir putin. the u.k. says it is willing to work with the eu will if both sides agree on a pragmatic solution to the sensitive trade and political situation of ireland. talks in london on the u.k. relationship with ireland after brexit ended without a breakthrough. >> it is best to find a

negotiated agreement if we can. that is what we are intending to do. if we can't, then obviously we consider all options. mark: the eu's representative says the block could impose trade tariffs on the u.k. 50 agreement relating to northern ireland is not "correctly implemented." r.i.m. -- in the u.k., covid crackdown restrictions are set to be left, but the highly infectious delta variant is spreading quickly there. there government has to played military to hotspots in northern england to help combat it's spread the government is also pledging more testing and door-to-door visits. 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. matt: welcome to our audiences each day at this hour. here are the top stories. the bank of canada stands -- we break down with francis. plus, u.s. infrastructure talks break down. we get more perspective on what could be the biggest package in decades with the former ceo of morgan stanley infrastructure. and, we discuss ferrari's decision to bring in an iphone innovator as its new ceo in what is seen as a watershed moment

for the industry. amanda: we are watching these markets that remain range bound. it is in the same type sideways range we have seen for some time. you can see the nasdaq not showing particular leadership. many investors may be waiting for that cpi report tomorrow. although it is industry -- in it -- in just -- [indiscernible] >> perhaps the market is fully pricing and that the fed is in control of this thing and that it will be a transitory number and may be looking ahead to next week. one stock that jumped out is ups, down 5%. overall, we are not seeing big momentum like that. we are not seeing big moves on the canadian dollar. bank of canada holding steady. even though it has got -- in other banks in terms of beginning to taper, nothing like that this month.

where does that signify about where the bank goes next? frances donald is with us. the bank has been a little ahead of other banks, certainly ahead of the fed. were you surprised at all to see them hold steady based on what we have seen in the economy? >> i have heard analysts described this as a placeholder, no major changes in the sentiment towards bank of canada but that was significant because this is one of the most hawkish lee priced central banks in the developed world. two rate hikes for 2022 and the bank of canada chose not to diss a view this notion. the fact they are staying ongoing lockdowns, and a big miss on q1 gdp tells you the market's perception on a hawkish bank of canada makes sense relevant to a -- federal

reserve. matt: how important is the loonie to the bank of canada? central bankers here don't want to talk about it, the -- but they get nervous when the euro is up 125 against the dollar. jackie: every central bank will say we do not harvest or currency. the currency is important to anyone's forecast, including the weak u.s. dollar is one of the reasons why we are going to see higher inflation in the u.s.. canada's currency is always an accelerant to whatever the environment is. the bank of canada having such a divergent view from the federal reserve is one of the reasons why we see this strengthening canadian dollar, on the edge of being uncomfortable. what makes me worried is we are heading into global reopening where trade will be surging and a strong canadian will weigh against that. i think we are still in the -- of a weak u.s., so canada needs

to be careful. what are the ways it can get around this by disavowing the notion that it is an inflation only target. that is their mandate, but if the bank of canada and ecb have single inflation mandates, concerns focused on other things as well is going to help them avoid too much tightening in both currencies and rates. amanda: i want to ask for you view on inflation. we are seeing signs of price increasing everywhere. there is a great story on the terminal matthew boyle wrote about how companies avoiding saying the words price increase and using useful prisms -- using euphemisms. at what point do we say that is something the fed needs to take into account? fraces: i think of inflation in three phases. what bothers me is when we complete long-term dynamics -- conflate long-term dynamics for short-term ones. we are in a period of overheating.

supply chain bottlenecks, shortage of labor, but i expect inflation to come around towards 2%. i do believe there is a third phase of inflation, the new inflation, that is the upper band of 2%-2.5%. that is where we see high levels of infrastructure spending and to the lack of policy. this is going to be a roller coaster and there is always going to be a period where the inflation-istas look at this component, be aware we are going to go through an up period, down period, and period of moderation. matt: in the u.s. we have seen a shift from monetary to fiscal. i guess in the entire western world to some extent we have seen that. it is a paradigm shift. how strong is that shift in

canada? fraces: this is happening globally. think about what we traditionally thought central banks did, now central banks from canada to the fed are focused on racial and income inequality, climate change, housing. on the flipside we have the government, whose main critique against it is that they will create too much inflation. the blurring own those policy lines is complicating the outlook and changing the way we have to think about things as basic as econ 101. central banks are asked dan ding -- central banks are expanding their focus. they will keep front end rates lower end government spending loads of money, which is happening globally, will continue. when you say what is the main dynamic year? it is a curve steepen her. -- curve steepen. amanda: this is a mushy

question, but the steepening curve can be good. it means the economy is going to rebound. you have fears about the u.s. economy? do you think we are in for a new cycle of growth? fraces: we are into a new cycle, but the problem is expectations are so elevated, we are headed into a period where i think we maybe got too ahead of ourselves. u.s. data can disappointed the downside. where will help -- where will allaire not be disappointments? i think canada and europe. now is the time to stop thinking about broad reopening, getting more clever on sector trades. matt: that is excellent insight. it is important for viewers to know you are not just a chief economist, you are there ahead of macro strategy. i hope we get you back on.

i didn't think this function was much he -- function was mushy, but i thought it was a strong question. next, we shifty -- should be from washington to europe. president biden heads over here for talks. we talked to morgan stanley infrastructures -- about what he believes what is needed to reach a deal in the beltway. this is bloomberg. ♪

matt: this is bloomberg markets. they attempts to reach a compromise on infrastructure

failed yesterday when president biden reportedly walked away in a conversation with lead republican negotiators. now to a group of democratic and republican u.s. house members trying to keep alive the hope of a bipartisan deal. they have agreed to more than 761 -- $761 billion in spending over eight years. the problem solvers calling for $1.2 trillion in spending over eight years. those talks are not going well. it looks like -- there's so many moving parts. let's get to an expert who knows about this. joining us is former world bank economist, morgan stanley infrastructures ceo and founder of independent multibillion dollar global infrastructure investment companies, sadek wahba. sort this out for me.

what is going on in washington? sadek: first, thank you for having me. the good news is the gap between biden's plan and the republicans has narrowed. you have the problem-solving caucus suggesting $1.2 trillion, biden has come down from two point treat -- down to $2.7 trillion, so the gap is shrinking. it will end up -- i would say that's the good news. the bad news is that they still have not agreed on how to fund it. the other bad news, i personally believe if you look at the graphs you have, the american society of civil engineers, that number is too low in terms of what we actually need to support infrastructure. amanda: the funding piece is important, and something you've

got expertise on. there are interesting ideas and to focus on one, you think domestic capital is a source of funding. walk-through the idea of an infrastructure ira. how do you use american savings to fund infrastructure? sadek: you can commit today, look on bloomberg nca quote for a stock of an airport company in europe, canada, australia. we have no equivalent in the u.s.. there are no publicly traded airport company. that is because 90 percent of the airports in the united states are held by state agencies. invest in the united states. we need to find a better way to fund infrastructure. our current system is antiquated. we need to include the private sector in many ways. it is sad to say that neither

republicans nor democrats have really talked about private sector investments in infrastructure. the ira is a simple way to fund our infrastructure. you have 30 million ira accounts, if everyone put $10,000, you would have $33 billion in infrastructure. matt: isn't that -- it sounds like a great idea to us on bloomberg, but as free markets and capitalism seem to fall out of vogue, it seems like a big ask. sadek: i'll tell you why it's not, you do not necessarily have to have the private sector involved in every aspect of our infrastructure. many of the sectors we call infrastructure could continue to receive government support and help and would not require the private sector. many others do.

almost a lot of it, almost entirely sector is private sector managed. we need ways and mechanisms to ensure the private sector to invest in infrastructure. state pension funds can really look at public-private partnerships. these are partnerships between state pension funds that invest in their own states and their own projects with their own statement is a pallet he's and agencies. -- municipalities and agencies. that is await to make sure pensioners can invest in long-term study assets as well as benefiting from what we call public-public partnerships. canada has done it. amanda: canada come i want to bring that up. that gets to the idea of an of an infrastructure bank, canada has. it hasn't been a great success.

one of the problems we see is that some of these projects need tax dollars because there is no roi. it is not a great investment for a private investor and that's the role of government to make it more attractive, that doesn't seem to be working. sadek: you have in canada a lot of toll roads privatized. in europe most airports are privatized. the key is to distinguish between assets that have low or no roi, but for social or other reasons we want to go ahead and build them. in which case the government should focus on those. that is why we have a government. at the same time, where you have projects where the roi could be attractive, it does not have to have -- to be attractive enough for the risk-word perspective. those should have private investors. given our budget deficit it is

difficult to assume the government's minister pallet he's are going to finance 100% of the infrastructure. the combination i think is the answer. amanda: great to have you with us. sadek wahba, former world bank economist, head of morgan stanley. breaking here in the u.s., according to the washington post, 500 million doses of pfizer's vaccine for donation. it is a lot. we are not seeing a big move in pfizer stock. we do not know the price that will be paid, but a sizable donation towards a global effort to fight covid-19. stay with us. more ahead.

amanda: this is "bloomberg markets." harare will have a new man at the wheel. incoming ceo, formerly head of chipmaker. you might feel it interesting, may be an odd choice for an iconic car brand. maybe the chip shortage in the auto industry pointed him in this direction. matt: that was my first thought. my second thought was, enzo ferrari must be rolling over in his grave. what this tells me as they are leaning more towards the interior gadgets than they are the engine under the hood. which is committed to me, the heart of a harare. you want that fire breathing v 12 engine under the hood.

but, that's a thing of the past, it seems. i hardly believe after this current superfast a 12 they will offer a naturally aspirated v 12 anymore and it is all going hybrid, that eventually electric. amanda: you motorheads are going to have to by late-model cars. no new models for you. we are running out of time and it is interesting, look into our pantry. campbell's feeling the effects of fewer of us eating at home. >> campbell soup, certainly a beneficiary of buying during the coronavirus pandemic, now not so much. they were looking to be -- they were looking to be above three dollars a share, now they are looking at $2.90. they had binning to sip a --

they had been anticipating an increase, now they are down. they'd been expecting 2.5% decline at best. third-quarter numbers didn't measure up. earnings down 31%. revenue down 11%. gross profit margin off three percentage points from a year ago. put it altogether and it did not go over well. you see how the earnings have compared with estimates over time. didn't compare favorably. the company is talking about more pressure on margins this quarter. you have to wonder, how campbell moves forward. they are facing the kind of cost increases that a lot of other companies are. you see how the sales lined up, we weren't just buying high and soup in the u.s. matt: the shares lower for the year, how does that compare with the company's peers? >> when you look at the s&p 500

packaged food index, there a dozen companies. campbell is one out of two down for the year, the other is mccormick. you get a sample in that chart of how their shares in the index perform. kraft and heinz leading in that group with a 25% gain, tyson up 21%. matt: dave wilson with our stock of the hour. that does it for us. this is bloomberg. ♪

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mark: president biden headed to

you -- president biden headed to the u.k. the president sent china and russia a message that the relationship between u.s. and europe is "tight." also on the agenda, increasing the availability of coronavirus shots to lower income countries. after the g7, the president will attend nato summits in brussels. next week, meet with vladimir putin in geneva. the eu could impose trade tariffs on the u.k. of the brexit agreement relating to northern ireland is not correctly implement it. the u.k. says it is willing to work with the block if they agree on a pragmatic solution. >> today, i can say we are at a crossroads in our relationship with the u.k.. [indiscernible]-- the heart of partnership needs to be restored. that is the eu approach.