manus: good morning from bloomberg's middle east headquarters in dubai. i am manus cranny. annmarie hordern alongside me. it is "daybreak europe." president biden arrives in the u.k.. the world's richest companies vowed to deliver one billion extra vaccine doses over the next year. all eyes turn to cornwall. the ecb is set to review the

pace of the bond buying program. asian stocks climb with treasuries ahead of the cpi prints this afternoon. the u.s. and china agreed to push ahead. the white house revokes the ban on tiktok and wechat. it is super thursday. ecb, cpi, and the g7. politics me inflation. let's check in on the markets. stocks prevaricate. the u.s. is getting a bit more exposure according to allianz. your stocks up by .8%. four record closes in a row. i love the line. bond traders might be crazy, brilliant, or both. i have met a few bond traders. who is afraid of the big bad wolf called inflation?

and the dollar index is flagged around the line and i love what he said. the dollar bears crave some constant reassurance. let's reset with the political agenda because it is all happening. president biden has arrived in the u.k.. the g7 leaders are meeting in cornwall. we have our european anchor. he is up early. it is guy johnson. great to have you with us. we have seen the draft communique for the g7. good morning. guy: good morning. very nice to be up this early in rainy cornwall. let's talk about what we have learned so far. we are beginning to access early indications we are getting from the communique. the focus is on providing one billion doses for the world's population to make sure they are vaccinated against coronavirus. 80% of the population. it looks like the u.s. will be

doing the heavy lifting on that. this serves a number of purposes. the first is the humanitarian one. it not only protects the world but the populations of the g7 against further variants and it pushes back against china. it is likely china would step in if the g7 did not. they do not want that to happen. as well, it provides a climate link as well. many of these countries are saying why should we sign up for your climate commitments if you are not providing us with the vaccines we so desperately need to help our populations? so it gives further impetus to that climate push which is also going to be part of that final communique and sets up boris johnson's meeting in glasgow later on this year. he needs to make this happen for the groundwork to be laid. annmarie: what else should we be looking out for? financial times says there could be tension between the united states and the united kingdom if biden starts pushing johnson

about what is going on with the northern ireland border. paul: there is an expectation -- guy: there is an expectation that joe biden, with his irish heritage, will want to step into this story. it's not a breakdown in relations but it could become so. there was talks yesterday in london between the e.u. and the u.k. on the irish border, concern growing that the situation could get out of hand in northern ireland, but joe biden is expected to step in at a relatively elevated devil and not push that hard at the granular level. he expects -- this is the narrative coming from washington -- that the e.u. and the u.k. will sort something out, find some modality to make this work. he needs to be seen to be involved in the process and there was an expectation that that will take place. and the other thing we are looking forward to a little bit later on is a meeting between

joe biden and boris johnson. the expectation going out of that meeting is that there will be some kind of group set up to restart the north atlantic aviation roots so critical to both countries in terms of business between london and new york, in particular, and it will be interesting to see how granular and detailed in conversation becomes. manus: great to have you with us this morning. joe biden ordered officials to issue a diplomatic rebuke to the u.k. for imperiling the good friday agreement. have a good day at the g7. guy johnson on the move, joining us nice and early. i said it was super thursday for a whole host of reasons. the g7, the chinese, the u.s. rapprochement. the bond market, i love it. this is what is on your bloomberg terminal. bond traders might be crazy, brilliant, or both. that is the question we need to

ask ourselves. i did around table. you know i love around table. i have seen it all before. tapir is in the price. good morning, miss order in. -- miss annmarie hordern. annmarie: why is the bond market acting like this given the fact that even just this week, there have been data points, not just in the united states, but around the world, showing growing concerns of inflation, but you have to think, where i sit here in london, what the boe is talking about. he said central bankers are on the cusp, warning that this could be a moment of making a very risky judgment and mistake. quite a warning coming from the chief economist of a major central bank. manus: he said we are at a dangerous moment. i put it to you that there are a number of other soundboards coming out. a person at the pboc saying inflation will be below 2% this year. ben bernanke -- he says 5.5 on

the top peak and then it will come back but of course, what is the risk of the ecb? there's a number of different voices which are really driving the narrative to the transitory camp. annmarie: i had of that crucial u.s. cpi data this afternoon, bond bulls taking the u.s. 10 year yield below 1.5%. for many, it is shocking we got below 1.5% before we got ahead of 2%. joining us now to discuss this all is the ubs wealth manager, so let's start as where the 10 year yield is trading. it is basically showing, to me, and signaling to investors around the world, that the market is on board with this being transitory but we are seeing data points pointing to the opposite, so why is the market moving on board with this

fleeting inflation narrative? >> crazy or brilliant, i think the bond traders are certainly forward-looking. back in february, we had cpi that was less than 2% and we were all panicking about inflation. today, we are going to get it close to 5% yet as you have mentioned, the bond yields falling now below 1.5%. we think that inflation is going to prove transitory and that's what's getting reflected in the price. we think a lot of the trends which kept inflation low, whether that is technology or wealth inequality, keeping inflation relatively low as we go through the course of the year. we are talking about is, do not panic about inflation today. what you need to worry about is inflation over a longer term time horizon where the uncertainty is a bit more elevated and make sure you are getting invest in assets which can protect purchasing power

over time because that is the key to wealth growth and preservation is the long-term time horizon, not so much what happens this year. manus: great to have you with us this morning. where do i lean into? i love when people come on board and they talk to me about the medium term and then we get schizophrenic. what is the medium term? how do i protect myself and grow in a quasi-inflation environment? he says it is different to the 1970's and he's worried there is enough anchorage so how do i protect myself in and on anchoring inflation environment? kiran: make sure holdings of nominal assets, cash and bonds, are at low levels. interest rates are likely to stay negative in real terms over the course of the next five years to 10 years so that is where you are going to lose purchasing power. obviously, real assets are thing

, there has been a huge amount of focus in the market about two extremes. the highest valuation stocks you can get or the cheapest stock you can get in cyclicality. we are looking for some of those more middleground companies which can offer steady growth over time, growing dividends. those are the kind of things that you are going to have protect you over the medium term as you are looking for protection against inflation. annmarie: you have this call on japanese and chinese equities to outperform after underperforming in the second quarter but today, we got the factory gate data out of japan which was the highest we have seen since the collapse of lehman's and we know that japanese companies are very wary of wanting to push those costs on consumers because of just how much they have dealt with deflation. do you still have that call on japanese equities given what is happening with inflation on some

of these big companies? kiran: absolutely. i think it is all about that, being forward-looking as well. when you see what has happened in the first half of the year, we have seen that european stocks and u.s. stocks have been performing relatively well and stocks in asia and japan interim mid-january being flat. we think that that recovery is going to take place now in the second half as the vaccinations start to get rolled out in japan. we will see accelerating economic activity there and at the same time, china, we have got monetary policy getting a bit more loose now so we think that japan and china are primed to outperform in the second half of the year and for many private clients, what is interesting is that these are the second and third biggest markets in the world. many private investors have low exposure to these regions and tend to focus a bit more on the u.s. and europe so we think this is a good technical time to get in and also from a strategic

perspective, both of these markets are good additions to a portfolio. manus: stay with us. kiran ganesh, ubs wealth management. let's get up to speed. first word news. simone foxman has that with the team today. simone: thanks. wall street's top regulator is calling for a broad-based review of the rules that underpin u.s. equities trading. this is the latest evidence that the meme stock mayhem is likely to trigger an overhaul. gary gensler says he is -- has asked the agency to review stock trading including best execution requirements. myanmar's military has formally charged the civilian leader and other officials with corruption. the country's ministry of information says she was found guilty of "committing corruption using her rank. if convicted, she could face up

to 15 years in prison. they have been held by the military since the february 1 through. invited administration is expecting a new infrastructure proposal this week from a bipartisan group of lawmakers. those legislators are moving forward without any of the tax hikes the president has demanded to pay for his plan. mitt romney is taking a leading role in crafting the proposal, called tax hikes, a redline. 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. this is bloomberg. manage. manus: -- manus. manus: thank you. ecb officials seem unlikely to spring any surprises over the stimulus. we are in frankfurt with an outlook for the ecb. this is bloomberg. ♪

annmarie: good morning. this is "daybreak europe." i am annmarie hordern with manus cranny alongside me. ecb policymakers have all the evidence they need to keep ultra-loose monetary stimulus in place thanks to the fed after ramping up their bond buying program in the second quarter to keep borrowing costs in check. time for officials to settle on a new pays for the months ahead. the central bank is to update its economic projections and ahead of all of this, maria tadeo. can christine lagarde walk this line between an improved outlook while avoiding taper talk? maria: yes, and look, this is

what makes this press conference so important. we are not really expecting any changes to the actual policy but the language coming from the ecb today will really matter. she's going to want to avoid anything that looks like premature taper but at the same time, we are probably going to get a revision to those projections both for gdp but also inflation. when we have the previous projections, this was march. the picture for the european economy looked very different. we were in the midst of a pandemic. the european economy was closing up, and now we are seeing faster growth, faster vaccinations, and an improved outlook for the economy and the second half of the year and we are seeing that reflected in the inflation debate where there is a real debate as to whether this is just a one-off for something fundamental is changing in the economy. it is a tricky balance for christine lagarde and a lot of the focus will be on that one sentence with a significantly higher pace of purchases. whether or not that stays or

goes, that will be a keyword to watch out for. manus: that could be. we have seen a couple of different reports. that could hit visit us to a hawkish hold if there's any shift in that nuance. they are getting an away day. i wish somebody would give me an away day for strategic review. we need that. it is a three day retreat to reinvigorate the debate. what is going to be top of the agenda? three of us could go on holiday. what is going to be top of that agenda? maria: you know, this was a big thing for the european central bank. for the pandemic struck, this was -- the battle for the soul of the european central bank. it was suspended as a result of coronavirus but it now seems to be back on track and we are expecting a three-day retreat from the governing council. the focus very much on this is around inflation. what should the target be and how do you measure it?

a real conversation about whether or not the dynamics in terms of how to benchmark the inflation rate have changed and the result of the pandemic, where there has been a shift perhaps in some of the consumption and the way the economy works. the other issue is climate change and how to factor this into a potential new mandate. christine lagarde said that climate and climate risk is something that should be taken seriously. manus: there's lots of an additional they two stools. maria tadeo tracking the ecb. kiran ganesh kiran ganesh -- kiran ganesh, there is a gush of $1 billion came into the etf the other day. you have an acronym. qgarp, quality growth at a

reasonable price. is europe a land with that? kiran: this might be the sweet spot for investing at the moment as we go into the second half of the year. what we have seen in the first half is a lot of focus on growth versus value and people have pitched some of the high-growth names in the u.s. and asia, very high valuations and high level of long-term growth, up against the value stocks for energy and financials and industrials, which tend to be in europe and that has been the battle we have seen in the market over the course of the first half of the year. as we go into the second half, both sides of that trade might are to get a little bit shaky if the market starts to worry about inflation. high-growth stocks don't like it when yields rise. value stocks might not like it if investors are looking for long-term growth, so we think that the sweet spot in the middle where you are looking for countries which are offering growth, maybe not high-growth, but growth nonetheless,

attractive dividends, high-quality companies that can raise their prices over the course of the cycle, and we think that this could be the sweet spot as we go into the second half of the year, which we think will be characterized by low levels of interest rates, growth coming off its peaks but some lingering concerns perhaps about long-term rates of inflation so we think that quality growth at a reasonable price will be the place to be. annmarie: very quickly, we in europe is this? i know you pointed to the fact that there's a strong first-quarter earnings. kiran: we think the theme across a variety of countries in europe -- it includes a lot of quality names and whether that is in the luxury goods space or the consumer staples or consumer discretionary, and some of the industrials as well. we are looking for the high-quality names regardless of the sector they fit in and our key criteria is their ability to deliver growth over the course

of the cycle but also be valued at a reasonable level so that is our key criteria and we think that's the kind of stock that will get increasing interest to private clients in the second half of the year. annmarie: we look forward to seeing what comes in the second half of the year. kiran ganesh, thank you so much for joining us. just ahead on the program, tiktok turnaround. president biden revokes trump's ban on the chinese owned app. this is bloomberg. ♪

annmarie: good thursday morning. 6:24 in the city of london.

this is "daybreak europe." the united states and chinese commerce ministers have agreed to push forward trade and investment. joining us is bloomberg's executive editor for greater china. thank you so much for joining us. a lot of this is talk setting up what seems to potentially be a meeting for may be more details. what can we expect? john: well, we do not have a lot of insight into exactly what was discussed on this phone call today with the u.s. commerce secretary and the minister of commerce from china. what we have is the chinese side saying they had a frank exchange. we don't actually have a statement from the commerce department in the u.s. that. this is potentially setting up maybe for a meeting later with the g20 in italy and it is worth noting that this is the third meeting in three weeks between senior economic and trade officials between the two sides. we had janet yellen talking with

-- the u.s. trade rep the week before that. manus: you live through the previous four years of trade angst. here we are. this seems to be a bit of a shift between the australians trying to get the wto to settle in on the wind tariffs here. a constructive framework of language from the u.s. and china. is it a shift? what do we expect next? john: it is a shift in methodology of how the biden administration is pursuing this relationship. under the trump administration, there was a lot more angst and acrimony. in terms of trade and economics, this seems to be setting up some sort of regular, consistent dialogue between the two sides. that would be bullish for the relationship. in terms of australia, china has various tensions with various countries that it is working through. obviously, the situation with

australia stands out for the intensity of that relationship. i think as long as china is pressured in terms of the virus, in terms of xinjiang and hong kong, you will see those tensions continue to simmer. annmarie: the wall street journal was talking about the fact that u.s. and taiwan trade officials will have a talk this week. could that derail what is going on between washington and beijing? john: that will definitely make things more difficult. i think it will be a calculation for beijing of how -- what is more important at this point, the relationship economically with the u.s. or sort of going hard on its position in terms of sovereignty over taiwan? i think what you will probably hear is vitriol or rhetorically, a strong response from beijing, although i do not think that they will take any action that would derail the ongoing talks with the u.s. manus: thank you very much. john liu, our executive editor.

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annmarie: good morning from london. i am annmarie hordern alongside manus cranny from dubai. this is "daybreak europe," and here is what you need to know today. president biden arrives for the g7 leaders summit as the world's richest countries vowed to deliver one billion extra vaccine doses over the next year. all eyes turn to cornwall. the ecb is set to review the pace of its pandemic bond buying

program. asian stocks climb ahead of a crucial cpi printed this afternoon. the u.s. and china agree to push ahead with trade. the white house revokes the ban on tiktok and wechat. manus, very good morning to you. 90 minutes away from the start of european equity trading. another fresh record high and it is super thursday as you claimed at the top of the show so we have the european central bank meeting and just before that, we are going to get the print on the u.s. cpi, a key data point to show inflation has accelerated given what we saw last month and we have all this politics at play. manus: that is going to be about vaccines and multilateralism. a coalescing of the g7 europe's strong fighting talk in terms of the u.s. washed and with putin. more of that to come. super thursday. bond traders pay of sub 1.5%, they show no fear.

they are not afraid of the big bad inflation wealth. european stocks have been marching higher. cons below 1.5%. 1.4772. i caught up with steven major yesterday on a roundtable. and principal global investors. he is sticking resolutely to i have seen it all before. this is not what anchors the bond markets and he believes that this is having a serious issue. he thinks rates will go lower. we can ask our next guest of what he makes of the ecb policy because that is why he is joining us, stephen gallo with the evidence mounting up. alter loose monetary policy stays in place and backs the fed. they ramped up their bond buying program on the ecb and the second quarter, keeping borrowing costs in check and time for officials to settle in on a new pace in the months

ahead. the central bank's do to look at updated economic projections. as i said. stephen gallo is a man in the know on ecb policy. european head of fx. good day to you, sir. we want to know which camp you fall into. some people are saying that you could have a hawkish hold or a dovish hold. what do you think? good day. >> in the run-up to the ecb rate decision, most of the key speakers from the ecb have priced -- virtually zero discussion of the full exit strategy or the use of the taper word but i think it's important to put all of these essential banks that are encircling the fed into context. financial conditions are loose and while global equity markets are at or near record highs,

whilst commodity prices are firm , they have an opportunity to start to gradually wind down their stimulus before it gets too late further down the road and financial conditions have tightened considerably and they have missed the opportunity and in the backdrop, the fed's remaining very patient. so i do not think that they are going to harp on the exit strategy. i don't think that they are going to signal an early end to q. week, but what they might do is they might signal that the pace of asset purchases could slow in q3 relative to where they were in q2. and it cuts both ways. on the one hand, it could be sold as a technical adjustment because asset purchases typically slowed during the more illiquid summer months and then on the other hand, you could kind of spin it policy oriented to the extent that they will be joining a list of other central banks that have done small

tweaks with their monetary policy stands area we have seen this from numerous central banks. something like that, something in the middle. annmarie: something in the middle. and the q&a is where we see what stands christine lagarde is leaning towards. does she need to lean into the fact that what the bank of england, bank of canada, bank of new zealand is paying in terms of, you know, the light at the end of the tunnel is there in terms of starting to ratchet back some of this extraordinary policy? >> look, i think the press conference -- we are in the middle of this strategy review right now, the ecb strategy review. we will not get more clarity on that until later this year. i think if i were a european bond trader, one of the things i would be most interested in hearing today is whether or not there is a growing consensus within the governing council to tolerate above target cpi

inflation for longer. right now, you were seeing some considerable flattening. it's largely being led by the move in u.s. treasuries but if they start to give indications that they want to move in that direction, they are happy with inflation to be about 2% and, you know, moving more towards the symmetrical inflation target, that could put a break on some of that flattening i just mentioned. it could embed it relatively steeper bias into some of these yield curves. but i think many central banks are aware of the fact that even though we have this period right now of excess demand, we are still struggling with supply shortages. there are shift going on in the labor market, causing there to be a lack of availability of workers. once these things passed, the

overwhelming dominant force in the global economy is deflation. and we must not, of course, and i'm sure policymakers who do not ignore it -- we must not ignores the -- ignore the signals coming from china. china has been going in the other way. they have been taking steps to deflate, to dis-inflate, to slow the credit cycle, to limit the demand domestically for raw materials. in fact, you can see it in the import volume data for the month of may. may chinese trade data. import volumes of key raw materials -- the growth rates are headed lower so this is a clear sign that china has been pushing back against this reflationary period we have been in and if anything, acting as a counterbalance to it, so that is important. manus: that bifurcation is becoming more evident as to

where china is versus the u.s.. you talked about perhaps the tolerance. i am paraphrasing a lot here. by the ecb. what would that do to the trajectory of the euro? would that reassure the dollar -- what would that do to the euro? john: with fx, you have to look at, ok, what is the knee-jerk and what is the medium-term response? the knee-jerk to something like that from the ecb, if they give indications that they are moving closer to a set inflation averaging stance, i think it would be higher because european rates, that is, yields, would probably respond positively to that. and some fx traders, you know, look at interest rate differentials, whatever it may be, they look at them constantly, and that would initially push euro rates in a relatively favorable direction,

but beyond that, i mean, if they are headed more towards defense style inflation averaging, i think ultimately, what you have seen with the dollar over the last six months to nine months, you will see the euro face a limited appreciation because effectively, what the ecb is saying is that we are going to get even more aggressive in making sure that inflation-adjusted rates in euro land do not go up, and by the way, we are accelerating the pace at which we are debasing the euro, so short term, i think a little bit of noise. possibly upside, but the medium-term implications of the euro would probably be more neutral to negative. annmarie: do you have the year-end outlook on euro-dollar? you start getting a little bit into the 20's and that is where you start to see the threshold really hit for the ecb governing council members.

stephen: you know, we are not ruling out higher levels. we have a year-end target in euro-dollar of not too far off 120, so not very exciting, but we are willing to -- we believe there will probably be another leg of dollar lower. between now and year-end, which will push euro-dollar moderately higher. as we have been pointing out with euro-dollar for some time, we think the large bulk of that will be driven by the weaker dollar story as opposed to euro appreciation. the key factor going forward now for the u.s. dollar is going to be this issue of the fed tapering so right now, they are talking about tapering. it's not really going to put a floor underneath the dollar until the fed gives a specific date about when they are going to begin the taper. so in the meantime, as long as

risk appetite holds firm, and by the way, that is another thing that the ecb does. by committing to supporting peripheral sovereign debt markets, the ecb does contribute to the risk-on trade, but as long as risk appetite is firm and as long as the fed do not give a firm date for when they are likely to begin slowing their bond purchases, the dollar will struggle for the short term. annmarie: stephen, thank you so much for your time this morning, european head of fx strategy. first word news with simone foxman. simone: the keystone pipeline, a symbol to oil friends and foes, is now dead. it became a litmus test for climate activism and ended up blocked by president joe biden. in a statement, the calgary-based company said it

terminated the project after consulting with the canadian government in alberta. president biden will meet boris johnson ahead of the g7 thursday, where they will commit to resuming travel between the u.k. and the u.s. as quickly as possible. the two leaders will open a joint task force to explore options. how soon travel can resume remains an open question as there are new signs that a fresh covid wave is starting to hit the u.k.. 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. this is bloomberg. manus. manus: thank you very much. now to an important interview. the imf is moving ahead with a massive plan to issue $650 billion in new reserve assets to help the global recovery. we spoke to our guest about how poorer nations will benefit. >> we are very much on track.

the g7 finance ministers confirmed that from the perspective, this is going forward. not only that, they are looking into direct term from wealthier nations to those that so much need help. we expect by mid august to have the government voting on 650 billion dollars. for those who may not have heard much, this is a reserve asset we create on the strength of our membership and it is the largest in the history of the imf issuance by far and rightly so, because we are dealing with the worst recession we have experienced in this time since the great depression. >> some have criticized that they would be used to pay off

the debt owned by developing nations to china. this rivalry on the world stage seems to be becoming worse now. how is that affecting the job that you are doing? >> let me first stress that we provide very detailed guidance to countries on how best to use them. and it is not easy -- it is not in the interest of any nation that has a large level of debt to use them to pay rather than restructure this debt. we had the common framework. we want the common framework to be the door to resolve that issue. and we are also increasing the transparency of how they are being deployed by countries as a way to encourage the prudent deployment of this very valuable reserve asset. one positive piece of news is that china actually would like

to make sure that they work as intended and they are indicating interest to contribute some of their new issuance. the management of the math -- the imf to support these countries. the exact opposite of trying to use them for the payment service of debt to china. annmarie: the imf managing director there. speaking to bloomberg's shery ahn. just ahead on the program, the outlook for electric vehicles. adoption is rising rapidly but is a stronger action needed for carbon neutrality? that story, coming up next. this is bloomberg. ♪

annmarie: good morning. this is "daybreak europe." i am annmarie hordern in london with manus cranny in dubai. shifting gears, there are 12 million passenger ev's on the road and electrification is spreading to other segments of road transport. the sector is not on track for carbon neutrality by 2050 and the window is closing quickly. the net has published their outlook for the future of transportation and joining us now to discuss this is the head of advanced transport at bloomberg. what are your main takeaways from this report? >> and the really big main takeaway is that things are going really fast and they need to go even faster. when you look at these long-term carbon neutrality targets and

you start looking at individual segments of road transport and the amount of time it takes to change over the fleet of the vehicles in that segment, you need to act now in order to stay on track for those 2050 targets. while things are going up really quickly, they need to go even faster, especially on heavy vehicles. heavy vehicles, the transmission has barely started and needs to accelerate to stay on track for those long-term targets. manus: we can have all these ambitions but it is about the infrastructure for charging and rolling that out, making that efficient. where are we on the outlook for that? good morning. colin: good morning. overall, the big thing is that the early adopters of electric vehicles mostly charge at home but as you get into the larger market, you need to build a lot of infrastructure. we did a tally of how much infrastructure we think is needed and it's about 500 $90 billion in investment overall including phone chargers from now all the way out to 20 ready

to stay on track for those targets. that sounds like a lot and it is a lot of money but it's worth recognizing that other parts of the energy transition, investment in renewables, just last year alone, that was $300 billion in overall, the market opportunity for electric vehicles is $46 trillion so it does not feel like charging infrastructure will be a showstopper, but there is new investment needed and there's a lot of groups that probably need to play a more active role in getting this off the ground. annmarie: put this into context for global economics. what is the outlook for oil long-term if there is this rapid rise in electric vehicles? colin: electric vehicle sales -- last year, they were 4%. right now, there 6%. 10% in china. it takes a long time for that to flow through to the fleet so there's going to be oil demand growth for the next five or six

years but in our outlook, it peaks in 2027 and from there, we do two different sorrows. in the net euro scenario, oil demand is reduced to zero. one of the interesting findings was even in our economic transition scenario, more market and economic lead, oil demand drops off pretty dramatically over the next 30 years so both the sorrows we did are actually quite negative for long-term oil demand outlook. manus: it's going to be one of those debates. great many people and mines will contribute to that. colin mckerracher, head of advanced transport at bloomberg nes. coming up, president biden has arrived in the u.k. the summit is wheels up today. they vowed to deliver one billion extra vaccine doses over the year. all eyes to cornwall. this is bloomberg. ♪

manus: it is "daybreak europe." president biden is wheels down in the u.k. for the g7 leaders summit. so what is on the agenda? rosalind mathieson is with us. this is a big old agenda, isn't it? this is about a message and a coalescing of global mines in the g7 again some of their foes or perceived. good morning. >> good morning to you. there is a lot on the agenda. president biden has flown in with the expectation that he's going to make a big announcement that the u.s. is going to

provide 500 million extra cobit shots around the world and from the draft communique which we have seen at bloomberg, still under discussion, there is a heavy focus on talking about a more collective response here to the pandemic. in particular, to ensure vaccines are more widely distributed for developing nations, in response to criticism that some of the wealthier countries are not doing enough to share vaccines. from the draft communique, they will pledge to deliver at least one billion extra doses over the next year and they are going to pledge to bring the pandemic fully to an end by the end of 2022. and that's also on the back of support from the international travel, which is a nod to vaccine passports and trying to get that global economy fully off the ground again. as you mentioned, there is a lot for discussion. here in cornwall, the highlight we have focus on efforts around

climate change, discussions around russia, parts, and with a couple of nods to china already showing up. annmarie: what about the transatlantic flying? i am in day three of quarantine. i was hoping to make it to cornwall but it is just not happening. this is a crucial hub between both countries. do you think we will get anything in terms of travel? rosalind: boris johnson is meeting with joe biden in cornwall. expect them to pledge to find ways to reopen travel to avoid the quarantine you are now having to do but it comes as cases in the u.k. are on the rise. there were more than 7000 yesterday, the highest the end of february so realistically, it's difficult to have specific time frames set when they meet for how they can do that. even if they set up a task force to do that.

annmarie: apologies. we have to leave it there. we look forward to your coverage this week. rosalind mathieson in cornwall. coming up the rest of the day, it's all about the european central bank g7. this is bloomberg. ♪

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annmarie:annmarie: good morning. welcome to "bloomberg markets: european open." i am anna edwards london pit mark cudmore joins me in singapore to take us through all of the market actions this hour. the cash trading is less than one hour away. president biden arrives in the u.k. for the g7 leaders summit as the world's richest countries vowed to deliver one billion extra vaccine doses over the next year. we are in corn