>> a very good morning and welcome today break australia. we are counting down to asia's major market opens. >> good evening from new york. the top stories this hour. u.s. equities climbing to a record and yields extended declines to the lowest since march. investors betting the fed will keep policies moving even after consumer prices move.

haidi: a ridesharing giant going public and what could be one of the largest tech ipos this year. shery: and international banking regulators classify bitcoin is the riskiest of assets, making it extremely costly for banks that hold a digital token on the balance sheets. this is a picture across wall street. we see u.s. futures unit after the open. another record high, finally, another record topping the may 7 peak. in passing the magic number, we also have the u.s. 10 year yield falling to the lowest in about a month already. we are taking a look at the euro as well because the u.s. dollar fluctuated. the reason we are watching the euro is the ecb reviewed that pledge to continue factor bond buying. of course, everything today had to do with those inflation numbers.

rising at the fastest pace in about 13 years or so. at first, we saw the risk of selling off in the markets. but then we saw markets rebounding again because we dug into the numbers into the headline inflation numbers. and we saw perhaps the places where we saw the most price increases other reopening trades and the more transitory price pressures like car rental, used airline fare -- car rental, used cars, airline fare. this is buying into the transitions. it's bring in the cio of raymond james. larry, give us your take of the numbers and what it means for the market. larry: i agree that these numbers are more transitory. we have been saying all along that it's not a question of whether or not inflation would go higher, it is a question of when they would peak. we do see inflation peak during the third quarter and then start to subside by the end of this year.

we have been using the analogy that if you think back to when we used to go to the movies. think of a blockbuster movie like star wars. on opening night, we were all they are standing in line, having to pay a premium to go see the movie. and what happens a week or two later? no big lines and you don't have to pay the premiums. three months later, you can see the movie any place you want to. a year later, you can stream it for $3.99 on your favorite service. we think a lot of this is transitory. there are plenty of examples through the market. shery: i prefer star trek, but i will give you that. talk about what it means for the markets. if this is actually a transitory price pressure, you shouldn't worry too much? the fed will not move? larry: it does a couple things. you are seeing it in the fixed income market that the fixed income market is not worried about it. you continue to see interest

rates falling, particularly the 10-year below 1.5%. the breakeven will collapse about 20 basis points from the recent peak. i think it is a good thing from the equity market. normally -- not only are you seeing interest rates going lower but with equities more attractive. companies are doing things marginally and increasing prices. that is a good thing for the earnings environment in the u.s. >> what is the biggest risk if not for inflation? larry: when it comes to inflation, the biggest risk is if we start to see wage pressures go up sustainably. if you see wage is going up consistently above 4%, that is what i think you will start to get worried. historically, when people make more money, they are willing to pay more money for goods and services. that could lead to a problem. but if i wanted to go outside of the inflationary talk, the

biggest risk for the market is what is going down in washington when it comes to tax rates. i think the market is pricing in the corporate tax rates going to around 25%, the capital gains rate at 28%. if it comes in higher, that could be negative area but if it comes in lower, i think that is another upside catalyst for the equity market. that is something we are keeping an eye on very closely. >> you look at the restructuring agreement with these bipartisan groups of senators, what opportunities do you see in those sectors? or has it largely been priced in? larry: if you get what is being talked about right now, though it is a low probability, and infrastructure plan with no tax increases, that would be a positive for the market. if tax rates did go up or down to 25%, that could subtract 3%

or 4% off of earnings. if we don't get those tax increases, that is positive for the markets. as far as specific winners, i would stick with what is working now in the reopening trade. people are telling you infrastructure will do well. this is a short-term bond, but longer-term, that will be distributed evenly for seven, 8, 9 years. >> what happens in tech where the giants face regulatory hurdles down the line? larry: i like big tech in particular. the earnings environment is phenomenal. if you look at what the prices have been, they have been down or flat? -- or flat. big tech has gotten more attractive, from my perspective. as far as regulation, there is

something where they come out and talk about it. over time, that seems to dissipate. and at the very end, it ends with a whimper. you have to remember, the speaker of the house putting much lives in california where a lot of those big tech companies reside. >> that's take a look at how asian markets are shaping up for the end of the trading week. there are shares and treasuries for arise. it starts to be what these futures are indicating. it is pretty muted as well. the costly futures will look at

a little bit of a jump of about .3%. futures trading in hong kong a little bit higher overnight. we see just a range of the cpi ratings. we watching particular trading. we will be seeing alexis george become the first female ceo once she starts on august 2. there will be an interim and acting ceo. >> the white house is cutting the pledge to the covax program and half. -- in half. instead, we are told donations from other countries will go

towards the cost of buying 500 million pfizer doses. president biden says those will start shipping to nations in dire need in august. president biden: the key to opening economies is to vaccinate your people. our vaccination program has helped the american economy begin to recover from the worst economic crisis in a century. >> prime minister boris johnson is mulling a decision on whether to lift the remaining pandemic restrictions. the delta variant first identified in india makes an extension likely. johnson faces intense pressure from his own party to reopen the economy with 78% of u.k. adults having to receive at least one vaccine shot. the u.s. and eu say they are deeply concerned over iran's source of nuclear material.

the findings by the iaea are casting a shadow over the round of talks to resume in vienna aimed at reviving the 2015 nuclear accord. the envoy says the findings are not consistent, credible, or convincing. 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'm su keenan. this is bloomberg. >> in cornwall, tackling the virus and decarbonization were among the meetings at the g7 summit. this included president biden meeting with prime minister boris johnson for the first time. the group is expected to send a message of unity, and eliminating gas and diesel cars.

just give us the highlights. >> as you adequately laid out, the coronavirus in response to the coronavirus has president biden meets with leaders on his first foreign trip. dealing with china and russia, whether china on trade and russia in terms of cybersecurity and interference in democratic elections. >> so in terms of the issue of the multilateralism we have seen in the past agreements, are we expecting that to play out through the course of the g7 discussions? mario: so far, at least if today's meeting between president biden and boris johnson relates to the rest of the week we meet with other

world leaders. it seemed like there was a warm tone. that the leaders appear, so far, to be on the same pageiorities. whether that is trade, whether it is dealing with china and russia in the cybersecurity threat, or dealing with climate change. from the nationalwe will talk a7 could be a step for global health and the environment. coming up, didi's plans to go

public as they file for an ipo. this is bloomberg. ♪

>> chinese ride-hailing giant didi files to go public and what could be one of the largest tech ipos of this year. the company which counts uber and softbank as the biggest shareholders will be seeking a valuation of $70 billion to $100 billion. we are joined by bloomberg deals reporter chris solce. >> didi filed publicly for the ipo. the most recent private valuation is roughly $95 billion. it would make it one of the biggest ipos listing in the u.s. this year. we do not know for sure how much

the company is seeking or how much they want to be valued as. the past quarter that ended in march as the number of profitable in 2019 pre-covid. this writer business also detailed international business. this includes russia, japan, and where labor rights is the issue. we following it very closely. we expect the listing to happen in the next few weeks. >> what do we know about their intentions with the money raised? what are their intentions? >> they are raising money to invest in technology.

some of the proceeds will be used towards general purposes and they have this interesting online e-commerce offering that they are planning to invest on. and the international extension is a investment. like i said, they are in 15 countries. australia is one of them. they also expanded into the food delivery business. and so a lot of that is really driving market share, providing concessions. a lot of that will be spent on growing those regions. china are holding a third quarter in as many weeks. we will be going to tom mackenzie and stephen engle. what was discussed in these talks between china and the u.s.?

>> we have had a few more details put out by gina raimondo saying that they had frank discussions around pushing forward trade and investment ties, also saying that she ought of the issue of distorting trade practices by china. underscoring what they want to see on the u.s. side, a level playing field. this follows a couple conversations between the chinese vice premier and catherine who you can see on the screen. and also with janet yellen. in terms of trade, conversations are picking up. the details on exactly how they expect to move things forward, we don't have. but to what extent they can keep trade talks in a separate lane from the kind of emphasis we are seeing from the biden administration on a renewed investigation of the origins of covid-19 and pushing china's humor and i. there will be questions about how far -- human rights.

there will be questions about how far they will be able to go. stephen: her counterpart in taiwan, the first one under the biden administration. before i went to bed last night, i looked at the statement from the u.s. trade representative's office. there was nothing groundbreaking in this statement. but it is symbolic, in many ways, given what tom talked about with the china-u.s. relationship where washington and the biden administration sees beijing as a strategic competitor. it would like to see taiwan as a strategic partner, especially in semiconductors. especially the blueprint that the administration outlined for the semiconductor industry. the biden administration wants to entice foreign chipmakers like tsmc or samsung electronics to come to the united states and help build out advanced semiconductor chips. these talks centered on more

mundane issues like meat additives that the taiwan government removed in january to remove a key block in trade friction. there is large support in congress for strength and trade relations with taiwan. we saw three senators went to taiwan over the weekend, flying in on a military jet plane. that definitely angered beijing. they were delivering a pledge for covid vaccine from the white house. this is, again, to counter the rising threat, if you will, of china. >> no wonder we see china trying to hit back at the u.s. with legislation addressing u.s. sanctions. tom: this is china upgrading its legal toolkit because the u.s. has sanctioned dozens of chinese officials over policies. the eu has also sanctioned a

number of chinese entities as well. this is giving themselves the legal toolkit to push back. the standing committee at the end of the day yesterday allowed them to target individuals for entities that participated in making or enforcing sanctions against china. they will be able to deny visas, freeze or seize assets, and ban transactions. the problem for multinationals is how they navigate which sanctions to comply with. the new york times spoke to the head of the eu chamber of commerce. they are no doubt ponds in a game of chess -- pawns in a game of chess. >> and beijing is strengthening control over its own tech firms. stephen: we knew this was coming. asian would want more control over the data collected, held,

and utilized by the likes of alibaba and other big platforms. how will they do it? we see the first jigsaw puzzle put in place by the beijing government as the standing committee passed the data security law. this is not necessarily part of the pooling of data that we talked about in our coverage of this issue, but what it does do -- an earlier law passed by the standing committee basically established a very categorical and hierarchal system with data and risk assessment. in one of the more interesting things released out of this law was the fact that it urges national security reviews of data handling, saying harmful overseas activity would be pursued for legal responsibility. again, china is putting in place legal avenues to protect its vast interests. the digital economy in china grew at a much faster pace than the national gross domestic

product in 2019. let me look up the number here. china will hold one third of the world's global data by 2025. that is more than the united states. >> stephen engle and tom mackenzie, good to have you both. >> still ahead, we will speak to martin turnbull about a relationship with beijing. tune into bloomberg radio for more from the big newsmakers and get in-depth analysis from the daybreak team, now broadcasting live from our studio in hong kong. listen via the app bloombergradio.com. more ahead. stay with us. ♪

>> a quick check of the latest business flash headlines and these main stocks have led to a credit upgrade from s&p global ratings. the operator cashed in on the recent gains, $1.25 billion through equity offerings. that combined with the approving outlook for movies moved s&p's upgrade to amc rating from ccc-. but the company is still deep in junk territory. softbank has a new funding round . a text up -- a tech startup raises about $460 million after two separate investments sent client valuation storing -- soaring. as was traditional credit card companies facing speculation around a possible public listing soon. the agriculture giant owned by china national chemical corporation has sought an ipo on shanghai's starboard.

the securities on the list of advisors involved in the -- it could take place as soon as this year. the company could be valued at $60 billion. shery: take a look at the markets now. we see qe stocks getting around .5%. this after reversing some of the highest levels in the past three weeks. nikkei futures pointing higher and kospi futures higher by .3%. we have a big day where we have to watch aussie bonds as well as japanese bonds, korean bonds as well. treasury yields ahead of the api number really came at the strongest level. we see the bond movements and how they affect the rest of the asian markets. australia and singapore leaders discussed bilateral call operation -- cooperation.

details just ahead. this is bloomberg. ♪

>> "daybreak australia." i am su keenan the first word headlines. world leaders including those from the e.u., u.s., and u.k. are meeting to solidify you nine says -- alliances. they said they will defend themselves from security risks as well as geopolitical differences. charles michel singled out beijing. >> the e.u. support is clear.

china is a competitor and a potential systemic rival. we will defend ourselves against practices that pose security risks, distort the level playing field, or are incompatible with our values. su: boris johnson met with bo driving -- joe biden for the first time. the u.k. is seeking to project a strong image after leaving the european union although post-brexit tensions over northern ireland -- biden characterized his chat as a breath of fresh air, adding the president did not push him to fix relations with the e.u.. >> the united states, washington, the u.k., plus the european union have one thing we absolutely all want to do and that is to uphold the good friday agreement and make sure we keep a balance of the peace process going. su: the latest on ransomware.

companies and organizations that are victims of ransomware attack should not pay hackers to unlock their data and should quickly contact law enforcement. that is according to the fbi director who testified before the house judiciary committee. u.s. companies and government agencies are reeling from the recent ransomware attack that disrupted critical services from a major oil pipeline to a beef producer and hospital. an independent investigation determined that toshiba attempted to implement a key shareholder vote. the findings found toshiba worked with japan's trade ministry to counteract its investors. they claim the ceo, the chief cabinet secretary, has rejected the reports. 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 su keenan.

this is bloomberg. shery: let's get back to the g7. scott morrison stopped over in singapore on his way to the summit, where he met with the prime minister. he gave morrison some advice on repairing australia's battered relationship with china, urging him to work with the country. paul allen joins us now in sydney. it was pretty pragmatic and along the lines of what we have heard from the prime minister before. paul: he has given similar advice to other countries including the united states. this was a visit by scott morse into the presidential palace in singapore en route to the g7. he said there are going to be rough spots in the relationship with china, but managed those in terms of a partnership where you keep on going rather than managing issues to create an adversity you --you are going tk with it.

china is not going to go away. he says it will always be there as a substantial presence. lee also says you don't have to become like china but by the same token, you don't have to expect that china will become like you. these australia/china relations are very strained at the moment, particularly after australia called for the independent investigation into the origins of coronavirus. exporters in the fields of wine, barley, coal, and others paying the price for that at the moment. shery: opening a quarantine free travel bubble between singapore and australia. we know that those come with challenges and when might that happen? paul: the travel bubble between singapore and australia is a bubble at the moment but the will exists on both sides to make it happen. singapore is going to be relaxing its covid restrictions from june 14. restrictions in the state of victoria, australia, where there was an outbreak last week, also

being eased off if that comes under control. if things take a long time to put together -- singapore already does allow arrivals from australia to come into the country quarantine free, but that is not reciprocated going in the other direction. so a memorandum of understanding has been signed between the two countries, for the health departments to begin exchanging information. if a bubble does get underway, it is likely to be extended to international students first. shery: paul allen in sydney. haidi, i'm watching the fixed income space because -- fixed income space. we are tracking those gains on treasuries. td securities recommending setting a tactical short position in 10 year treasuries at 1.5%, targeting the 170 level with the stock at 1.39%. they say there is an opportunity for tactical shorts based on strong economic momentum, elevated cpi inflation, and

potential for fomc's median 2023 dot to move higher, all to do with what is happening with the inflation space with the fed. right, haidi? haidi: jp morgan is weighing in as well, saying that the fed may not make a technical adjustment because said funds remain steady. there has been broader market reasons and perhaps even financial stability reasons for the central bank to do so. jp morgan strategists saying concerns about money funds are starting to surface again. shery: watching the bond markets. we are watching the crypto space. the international banking regulator decision to classify bitcoin as the riskiest of assets has dragged cryptocurrencies further into the mainstream financial world. the committee on banking supervision also made it extremely costly for banks to hold general tokens on their balance sheet. joining us with more details is our cross-asset editor, joanna also sure. -- joanna.

what does this actually mean for the asset? joanna: this brings crypto further into both financial mainstream. it's not like it is good and bitcoin did rally initially, but it does make it costly. it looks like it might be good news, but then it is actually not that great logistically in terms of, you know, in terms of the capital requirements that are needed. haidi: where are we had in terms of the bitcoin narratives? it seems we have come down-to-earth somewhat, and the same issues of regulatory overhang, institutional adoption, still seems to be the major kind of problems here. joanna: right. and there is the adoption -- the asset classes maturing.

it is making progress. of course, this is part of that, but again, if it is such a volatile asset, people do need to be careful when they get in, and this is what the regulators are saying with this decision also. they are throwing caution in there and saying you need to be really careful and have a lot of reserves here. shery: what about the volatility factor? because it has been so volatile in this asset space that a lof t really wanting to get into the market. joanna: right. it is also true that it is quite a lot, even in the past year, even this year. i think bitcoin is up may be 25% to 30%, and other cryptocurrencies are up even more. but yes, it was up at 65000 and now it is around 37,000, so anyone getting into it is going to need to be prepared to have a lot of ups and downs, more so than most other assets, like a typical stock or a bond. shery: joanna -- joanna ossinger

there. coming up next, malcolm turnbull is among leaders calling for g7 to be a bretton woods moment for the global health economy. he joins us, next. this is bloomberg. ♪

>> we really are -- we really got a boost. when people identify climate change as a challenge, recycling is an important weapon against climate change. so ics and -- so i see us as bringing technology to recycling. we are the tesla of packaging. haidi: you are going to hear from anthony pratt on the future of the three generation recycling and packaging is this, next monday at 9:40 a.m. sydney time. the g7 summit to forge a consensus around global health. just as leaders came together to build new international institutions. that is a are fall from the -- commission, a grouping of political, business, and and science leaders. joining us is malcolm turnbull, the former australian prime minister. way to have you on "daybreak australia," as always.

-- great to have you on "daybreak australia," as always. bretton woods has been negotiated while world war ii was still being fought. do you think the situation is similar now that there is that? malcolm: we will see at the g7 and in later international meetings, but you know, really, this has to be a big wake-up call. i mean, we have to work together as a global community. viruses do not respect borders. yes, you can have quarantines and border closures, but even then, we know the viruses get through. look at the outbreaks we have had recently in australia despite our very strong restrictions. if we want to have open borders again, if we want to travel again, if we want to have international trade and cooperation proceeding as it did before, this must be a wake-up call moment.

what we set out with the commission, which i co-chair with jose manuel, the former european commission president, and michelle williams, the dean of public health at harvard, is a priority. they are essentially these three. firstly, we must get everybody vaccinated. that is critical. that means we got to be making vaccines available in the developing world and we have to be doing everything we can to combat vaccine hesitancy, to combat anti-disinformation -- anti-vaxx disinformation. we have to make sure we share data. we need to know everything about the rise of these pandemics. the rise of epidemics that could become pandemics. data transparency and

collaboration is critical. we have to build health resilience. we have to recognize that the healthier we are, all of us, the better able we are to combat pandemics of this time. one of the big priorities is obviously in the developing world, to deal with this. this is where our greener gender, combating climate change, having greener, less carbon intensive urban environments, will encourage people to do more. walking, more active transport, which will help combat obesity. this might seem a little off on a tangent, talking about obesity, but it has been one of the biggest risk factors in terms of mortality with covid, as boris johnson himself acknowledged in the u.k. when he had a close call. haidi: prime minister, when we talk about this kind of level

effort, it obviously does not work without china. notwithstanding you talk about transparency when it talks about the origins of the pandemic. there's been a lot of questions. an ongoing investigation is being called by the g7 on that. how do you bring china into this when there are alliances being formed to try and counter beijing? i want to bring a comment that the prime minister to scott morrison, saying, dealing with china, you don't have to be like them. you should not expect them to be like us. the subsectors -- subtext might be that you don't have to like them, but you do have to work with them. is that something australia is failing at? malcolm: i would not say so. i think the prime minister is one of the wisest leaders in the world today. he is a good friend of ours, as is his wife, and they are a remarkable couple. they made an enormous contribution to the contrary, his region, and the world.

and his advice is right, but it is advised that should also go to china as well, by the way. china's attempts to bully and intimidate australia is outrageous. that is why it is so counterproductive. you know, i mean, when scott morrison called for there to be an inquiry into the origins of the virus, the overreaction from beijing was extraordinary. it's hardly a revolutionary or novel thing to say when some disaster emerges to say we better have an inquiry to see how this all happened. the bridge falls down, you have an inquiry. the affront that was taken in beijing only served to make people think maybe they are covering something up in the world health organization's investigation has been frustrated by lack of cooperation in china.

the reality is that everybody has to recognize, and that includes china, that we are living in a global, connected community. viruses travel at the speed of a jet airplane. so we need as much transparency and accountability as possible. i think the important thing -- this was a point i made at the time -- is we have got to be seeing it on a no shame, no blame basis. a lot of donald trump's rhetoric was very unhelpful. i mean, we have got to -- look, viruses emerge in all sorts of places. no one is trying to ascribe blame or fault or liability, but when they do emerge, we have -- everyone has to find out as quickly as possible. that is it. shery: you are talking about the reaction from china on finding the origins of covid-19. what about the reactions from the western world about china sending vaccines overseas? i was speaking to a health expert in rwanda yesterday and

she was very upset not only because the covax initiative was not enough, but when these african nations were receiving vaccines from china, russia, india, everybody started pointing out that that is vaccine diplomacy and that is not helpful. when it comes to these global mobilization efforts, what do you prefer, the multilateral approach or the bilateral approach? and is there a place for what we have called vaccine diplomacy? malcolm: i think there is a place for all of the above. ideally, you do it in a coordinated way through covax, which of course is chaired by jose manuel barroso. but really, the goal has got to be to get as many vaccines into as many arms as we can as quickly as possible. you know, now, inevitably, countries are going to believe that charity begins at home. and so, they will always want to prioritize vaccinating their own populations, but you have got to make sure you do both.

australia has made vaccines available for p&g and we are miles away from getting our population vaccinated. our performance during the pandemic was outstanding. vaccination, while that is one of the slowest in the world, we really have to -- bottom line is we are all in this together. this is a globalization which means that vaccines -- sorry, viruses travel in real time so you cannot delay. it needs to be a full court press and that's what i hope the leaders at the g7 meeting in cornwall, they are going to realize they have to throw everything at this as they have to throw everything at the climate challenge. we must not overlook that. that is in many respects a much more serious challenge that we

face. i'm glad to see that boris johnson seems to be on the same page as joe biden in taking both of these challenges head-on. haidi: but australia is not on that page when it comes to climate, right? we look at scott morrison receiving all of this external pressure from world leaders. is that going to be enough? is it really the domestic agenda, the political needs here just so much stronger? malcolm: scott morrison is looking to the election. he sees it as a wedge he can use against the labour party. the australian government, in my lifetime, has never been as out of step with its major allies and partners on a global issue as it is today. the reality is, in both london

and washington in particular, there is extraordinary disappointment with australia. i don't know that many people will say that publicly officially, but i can tell you, absolutely authoritatively, disappointment is very real, and they cannot believe that australia's government is so reluctant to do what the whole business community in australia wants us to do and indeed what most australians want us to do, which is to embrace this transition to clean energy. we do have the opportunity to be the clean energy superpower. we have the opportunity to be a green hydrogen superpower. and andrew is leading the charge there with fortescue future industries, but it is just this wretched political tangle, this combination of right-wing

populism, vested interest in the coal and gas industry, and the right wing media, particularly rupert murdoch's media. it treats climate change as an issue of identity or belief. it's the same deal in the united states, as we have seen. fox news and denouncing actions to address global warming as somehow or other leftist or dangerous or radical. hopefully, finally, the international pressure will cause the australian government to act and the consequences of not doing so is not just the missed opportunity, of course, but there's also the very real prospect of carbon tariffs. should not be blind to that. >> always great to have you with us. australian prime minister,

cochair of the reform commission, malcolm turnbull. lots more to come on "daybreak." this is bloomberg. ♪

haidi: blue origin will announce the winner of the auction of the seat alongside jeff bezos on the company's first passenger flight next month. bloomberg emily -- bloomberg's

emily chang explains. emily: that is blue origin last test flight of its new shepherd rocket on april 14, one of 14 successful launches from its west texas headquarters. >> touchdown. emily: the next one will carry jeff bezos himself, just two weeks after he steps down as the ceo of amazon. >> to see the earth from space, it changes you. emily: he delivered a grand twist in the space race, announcing he will be on new shepherd's first flight carrying humans into space on july 20, along with his younger brother, mark. cofounder of a private equity firm, who has always been much more low-profile than the richest man in the world. >> seriously? >> if you are willing. emily: this will make him the first of the space billionaires to travel to the great beyond, beating elon musk. spacex has already shuttled plenty of astronauts to the international space station. virgin galactic's richard

branson is scheduled to take his first scheduled flight to space later this year. the new shepherd will carry the bezos brothers and the winner of an online auction for an 11 minute flight. at 47 miles above the earth, the capsule will separate from the rocket. the passengers will float weightless lee for three minutes as the rocket soars another 13 miles to the very edge of space before plunging back to earth. >> look at that smooth landing. >> and there's all sorts of problems that we are about to face because, for the first time in our civilizational history going back thousands of years, we are now big compared to the size of the planet. we can fix that problem and we can make it in exactly one way, by moving out into the solar system. emily: what are the chances the unthinkable could happen? there have been 15 total new shepherd launches. only the first was considered a partial failure. it crash landed but the council landed safely, boosting the chances that on july 20, bezos's

boyhood dream will safely come true. shery: coming up in the next hour, we will get more insight on the g7 with the president of the peterson institute for international economics. this is bloomberg. ♪ wanna help kids get their homework done?

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haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i am shery ahn. welcome to "daybreak asia." u.s. equities find a new record while yields extend declines to the lowest since march. investors are betting the fed will keep its monetary policy in place