today? >> the coronavirus family has many different violent does viruses. some are the capacity to infect humans. we have to make ourselves more resilient. >> good morning. welcome to daybreak australia. i am haidi stroud-watts in sydney. >> good evening. i am kathleen hays. the top stories this hour. g7 nation look to forge a united front. but, how to handle beijing? joe biden takes a more hawkish

stance. others fear the group will be seen as anti-china. >> biden looks to set a new tone. >> and, australia calls for a restart to talks -- talks with china. the prime minister says they are ready to make the partnership work. >> we will start by looking at u.s. stock futures. the s&p 500, after barely closing at a new record high last week, is set to perhaps increase that. the 10 year note yield, at 1.4518 last week is pulling its fourth weekly drop in that yield. a month or so ago it was over 150. if the fed signals that it will be less dovish and maybe start bond tapering, that could boost

the dollar. it would be interesting to see what it does to the 10 year yields. crude is looking a little lower, although, crude had quite a week. it is on his third weekly increase. we are seeing perhaps a little giveback now. let's go to sophie in hong kong for a look. >> kathleen, monday we are seeing marginal meals -- moves of future. china and taiwan are off-line. ditto hong kong. after a stretch of lackluster trading for the bench in hong kong. in india, we have seen stocks hit record after record. at securities, the benchmark at 60,000 by the end of the year. at ici credentials, it is time to buy cyclical stocks in india.

let's check bitcoin. we are seeing volatility continue for the crypto, back below 39,000 after breaching that level briefly after elon musk said tesla would resume transaction with bitcoin after seeing more clean energy in mining. >> g7 leaders are debating how strongly to respond to china's efforts to win influence. president biden and prime minister johnson took a hawkish stance while some other leaders were wary of the risks of being seen as an anti-china block. a commitment to decarbonization transport and energy as well as a roadmap towards vaccination of the world. >> leaders played -- pledged $100 million from the u.k. to the world's poorest countries,

another big step. >> let's get it over to our deputy managing editor ross greg. was biden successful in turning the page on turning -- in turning the page on the trump era and returning multilateralism to the world stage? >> exactly. what we have seen was pretty much a win for biden and global unity. some of the weirdness as we saw in the trump era and the tension . in 2018 trump asked justin trudeau as dishonest and weak and in the u.s. refused to sign onto the communique. there was nothing like that this time. the groom came out -- the group came out with a fairly harshly worded declaration about china and russia, and in general, we

heard from emmanuel macron that the u.s. as part of the club and willing to cooperate. i think that sums up well what we heard after the meeting in cornwall. >> joe biden seemed to think the meeting in cornwall was successful. what are we expecting around his meeting with vladimir putin on wednesday, ross? >> that is very interesting. what we have heard from biden and putin, it could

much of them. biden at least agrees with prudent that relations are already low point. -- with vladimir putin that relations are at a low point. their potential areas for cooperation as well. antony blinken said today, do not expect a light switch moment. there will not be immediate change in tone towards russia. but, the trust is aimed at a more stable relationship. vladimir putin said friday night that he does not expect there will be an impulse moment with biden. definitely, this white house is very much on message. you are not going to see random tweets, which presumably is the basis for a stable relationship may be on the up and up. >> the block wanted to make a big splash when it comes to the vaccine. did it fall short? >> from what we can see tallying up all the promises made and promises somewhat cap so far, --

somewhat kept so far, g7 nations said they are donating one billion doses. there are also some that are being redistributed from covax to certain others. so it seems like not really a billion, but still substantial. i think the pressure will continue from interest groups and others to do more. biden said in his press conference that the u.s. could possibly come up with what -- another billion by the end of 2022. the messages there. that's -- message is there, but sometimes, the devil is in the details. i think there is a desire to push on with global vaccination. countries like the u.s. and u.k. are so far advanced with their own domestic programs. >> roskrasny.

speaking in london, morrison australia is ready to sit around the table and talk through a partnership in religion to china. this after the pms that he would seek support from other global leaders to counter economic coercion. this rhetoric about dialogue is fine, but we know beijing has not been picking up the phone. >> this has been a difficult time for australia. on the other hand, they have shown a lot of economic resilience in the space of chinese sanctions. australia is one of only two countries present at the g7 as an outreach partner. alongside south korea. it has managed to grow its economy throughout this time of the pandemic, which is all the more remarkable when you consider that chinese sanctions

across the range of sectors of the economy. prime minister scott morrison does have to thread a needle here. on the one hand, he is very eager to try to gain consensus and momentum internationally for australia's wto against china. he has managed to find some support from americans and europeans and japanese last week. on the other camp -- on the other hand, i think he is conscious of the fact that china remains the primary trade partner for australia. he has consulted other regional leaders and looting -- including the prime minister of singapore last week on his way to europe. it was much more cool from singapore. they are saying you will night

-- need to learn to live with china. that does not mean you have to become like china, but neither can you expect china to become more like you. this is the word you must engage in. i think, perhaps, that message was received by prime minister morrison. >> what do you make of the fact that prime minister morrison did not get a one-on-one with biden? >> it is interesting. the other real point of awkwardness between australia and the other g7 members is the fact that australia has been very reticent to commit formally to the goal of reaching net zero omissions -- emissions by 2050. all of the other g7 members have committed to having -- halfing emissions by 2030. australia has been unwilling. that may or name -- that may or may not be the reason why boris johnson was in the room.

but it certainly contributed to a two against one dynamic on the question of climate change. perhaps the american president wanted the u.k. voice in the room to try to put as much pressure on australia as possible to play ball when it comes to climate change diplomacy. so, this was one outstanding issue where australia probably did not see i do i with the others. across the board, prime minister morrison with more in agreement than disagreement. >> what do you make of the g7 proposal led by joe biden to set up an alternative to china's road to help lower income nations build infrastructure more and build ties with them? >> i think it is potentially significant. but it is too soon to tell. the west and america in particular has been grappling with trying to find a coherent and viable alternative to china's flagship road initiative

for years now. it was announced by president xi in 2013. years down the road, we are still struggling to find an alternative, a compelling message. i think biden has called it build back the world better, b three w. boris johnson has dubbed it the clean road. that is already a bit of appear your -- a bit of a pr when for beijing. it is presented as a counterpoint to china rather than presenting a compelling positive agenda, i think already speaks to some failure here in the way the west has presented a compelling, positive agenda for change for the world. of course, the biggest thing is simply the fact that it remains unclear how this will be financed. how much we are talking about and the timescale.

>> how about the moves on vaccines? this is another area where president joe biden suggested it was a success. other people point out that it depends on how you count the vaccines as distributed. a country like the u.s., which has so many vaccines for so long to the extent that some have gone bad, how does this look to the rest of the world? >> look, i think important progress was made here. this was a commitment to just over one billion covid vaccines to target the poorest countries in the world. it is really important. it was presented as an act of charity, but we know, it is an active economic self-interest as well for the g7. because, equitable global vaccine efforts is absolutely required in order to recover from this economically for everyone, including the richest. but, it does fall short, somewhat, of the really high

expectations set by prime minister boris johnson. he equated this to something equivalent in ambition and scale as the marshall plan. i don't not -- i do not think it -- i think it will for sure -- fall short of that. this is an ongoing process continuing to be scaled up. if we stand a chance of beating this pandemic in the next 12 to 24 months. >> thank you so much, asian power and diplomacy advocate. more on the g7 and biden strip to -- biden's trip to europe. the market outlook. she tells us why she thinks inflation is here to stay. up next, it is the end of an era for benjamin netanyahu. israel left a fragile coalition in a bed to end years of political -- in a bid to end

years of political chaos. this is bloomberg.

more than identify meaningful weight by we're we know your local. time

>> you are watching daybreak australia. british prime minister boris johnson said he will donate the end of the u.k. virus restrictions as cases of the delta vein. -- the delta variant surge. officials will study data before making an announcement monday. >> the roadmap was always cautious but your reversible. in order to have an irreversible roadmap, you have got to be cautious. we will be spelling out exactly what we will be doing. but i am afraid, you will have to wait until monday. >> johnson also clashed with eu leaders, warning that the u.k.

may suspend part of the grant -- part of the brexit agreement if trade issues with northern ireland are not resolved. the grace. expires at the end of this month. beijing's ambassador to the u.n. is trying to reinstate the nuclear deal. he said washington should more decisively move tumor removed -- to remove sanctions against the islamic republic. global news, 24 hours a day on air is powered by more than 2700 or less and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> like to get more on israel. benjamin netanyahu's 12 year run as prime minister has come to an end.

joining us. this is pretty dramatic developments over the weekend. >> benjamin netanyahu is ending 12 years of power. not only that, they have come to an end with the most diverse coalition israel has ever seen. someone even further to the right than him, natalia bennett, will be the prime minister. as interest, guaranteed -- a centrist, yair lapid is holding it altogether and there is even an arab party. >> what is the biggest challenge for new leadership? >> i think the biggest challenge will be to rebuild trust in the political system. there have been four elections over the last two years. you have had the prime minister who basically did anything he

could do stay in power. he is facing corruption challenges that could lead him in jail. if he is out of power. so, i think they have got to build trust with the israeli people and reestablish a political system that works. another priority is strengthening the relationship with the u.s.. ties seemed strained. try and netanyahu were very close. -- trump and netanyahu were very close but it took months for biden to call netanyahu after his election. it took 30 minutes for him to call natalia bennett today and congratulate him. -- naphtali bennett today and congratulate him. >> thank you so much, bloomberg news editor, ian fisher. southeast asia food delivery

platform grab continues to work towards its spac listing. the ceo tells us he is confident a what happened by years end. this is bloomberg -- the ceo tells us he is confident that a deal will happen by the year end. this is bloomberg.

>> typed change is not a single issue. it cuts across every issue. the way we live, the way we feel. the way we run.

backed by powerful data and a global newsroom, bloomberg green is focused on solutions. climate change is at the center of everything. we are at least center of solving it. bloomberg green, solutions for a changing climate. ♪ >> singapore's food delivery app grab is confident it spac will be done by the end of the year. u.s. regulators have stepped up their scrutiny. we spoke to the ceo anthony tan about the impact. >> the truth is, we decided to be proactive. we have known we wanted

preclearance from the sec on a lot. we want to set the bar in transparent financial reporting. yes, it may have taken a little longer than we expected. but, today, we are happy to share what we have done in q1. we beat our target. our top line grew stronger than we expected. we continued to improve our possibility. it proves are super app works. more users use more services. we still see so many options across the cities we serve in the region. >> we are looking towards the review of the financial statement with the spac. do you expect any major reinstatement once that is done? >> i cannot comment for the future statements. but what hearing say -- but what

i can say, is that we are happy with q1. all of us are focused on executing for consumers in the second half of this year. >> what about plans for further expansion when you look at the likes of doordash going into japan. do you have broader plans? >> no. we are going to stay really focused on winning hearts and minds and he wallets -- e wallets in southeast asia. >> you are confident the spac can be done by the end of the year. we are hearing there is a second-rate listing in singapore. is that true? >> we consider all kinds of options. but, the most important is really focusing on this nasdaq listing. we are guns blazing on track and laser focused.

>> and it will happen in 2021? >> yes, that is right. >> what about the thought here with going with a spac rather than a traditional ipo? >> actually, before me and brad -- we were preparing ourselves for a traditional ipo. but, we were so impressed with the team, so impressed with how committed they were and continue to be. how they put in their own money where their mouth is. how they have invested until invested with us. they have put in money into our grant for good fun. brad himself is an operator. we want funnel operators to be at the table -- we want fellow operators to be at the table so we speak the same language. once we saw this match made in

heaven we said, hey, we will take this partnership. >> that was the grab ceo brian tan. blue origin has raised $28 million by alternating -- offering jeff bezos arrived in space next month. saturday's live auction followed weeks of online bidding with more than 7000 submissions from 159 countries. samsung has yet to decide whether to just -- whether to suspend production of its new budget phone because much of shortage. the report from the times -- electron times is been denied. sheba will drop two directors from its board after an investigation showed unfair collection and major shareholders demanded action. the report showed toshiba --

toshiba devised a plan to prevent a shareholders from exercising their brand and in july 2020 meeting. this is dave and still you. this is bloomberg. --

>> the bond market nation's toy. -- the bond market is telling us inflation is transitory. everything is going to be great. >> double digit increases in airfare and hotel costs. >> the airfares, etc.. >> it is a question of when they will peak. >> look at other components. >> the biggest risk is if we start to say -- see wage pressures go up. >> everybody is screaming their

data screaming that there is no inflation. there is some inflation that will stick. >> it really does not matter if inflation is transitory or persistent. it matters what the fed thinks. that is where the debate is in the market. >> wow. some of our guests weighing in on the inflation debate after the may cpi print came in hotter than expected. our next guest says she thinks inflation is not here to stay. let's bring in kim forrest, see i/o -- cio. what if the fed decides they do have to move earlier? what was that do to your position? >> i do not think it will change it much. to be clear, we all see inflation, especially in things

that have -- that are missing from the supply chain like new cars. they are very hard to get. that drives up prices. so, we kind of love that. if the fed does begin to raise, it will be a surprise for everyone. we are longer-term investors. we would use a declining stock market to buy stocks that we do not currently have in our portfolio but have been looking at. >> what do you think about yields? yields have fallen, contrary to what we would have expected when the cpi number came in so hot. what are the direction of bond yields and what does that mean for your portfolio? >> i really do not understand what push them down. but, i do think they are going to be as far as the eye can see

until the fed begins to aggressively move, maybe to stamp out inflation if they think things are getting out of hand. it is their primary tool they like to use to drive down inflation and rising prices. they make the prices -- money more difficult to get. i get that. but, i do not really think we will see that for many reasons. >> when you take a look at how expensive most parts of the market is that the moment, on top of the insurgent monetary policy outlook, you find opportunities? >> we nationally -- naturally build to the best companies. although, there probably out a

favor -- they are probably out of favor when we start buying them. we are looking for companies with brands that will allow them in an inflationary time, to raise prices. i think that is one of the hedges of being in the market. those prices raise as the supply chain becomes more expensive for companies tilting things. -- building things. they cannot absorb forever. you know what the dividend payment is going to be, but the yield will change. >> how much will tax reform impact the bottom line? when do you start seeing that? do you start seeing that already? >> i do not see it in sentiment. i think it is for testing that the g7 came away with the

universal rate that everyone is supposed to sign onto. the g7 is the seven largest countries. i think that when the rubber hits the road and country start talking about how to implement it, more importantly, which countries implemented first, we are actually not going to see that come to fruition. >> kim forrest, cio of broken capital partners. it is always good to have you with us on bloomberg. let's get you the news with vonnie quinn. >> president joe biden is not looking for conflict with china. the final communique after the g7 met cited beijing on human rights issues on hong kong. however, it omitted specific reference to china and forced labor practices.

the g7 called for stable and predictable relations with russia, urging the kremlin to stop destabilizing behavior including interfering in other countries democratic systems. it also added an intention to track down on ransomware. joe biden says relations with russia are at a low point. he and vladimir putin are set to meet wednesday. the g7 nations failed to set a target date for moving away from pedro-based cars. they took a more -- petrol based cars. several of them are major automakers. >> global news, 24 hours a day on air and on bloombergquint take.

i am vonnie quinn and this is bloomberg. >> australian prime minister scott morrison says his government wants to restart dialogue with china after the g7 summit. angus, we know that canberra is open to nylon -- two dialogue -- that canberra is open to dialogue, but we also know beijing has not been picking up the phone. >> morrison is making a fresh appeal for talks to restart. he said, specifically, australia would help through how the partnership with china can be made to work. but also, at the same time, yesterday, we had this very extraordinary disclosure from the trade minister that he wrote a letter to his kinase counterpart -- his chinese counterpart in january laying out ways they could engage and he is still waiting for a response. it is not how clear morrison's appeal will be to reach

communications. successive ministers have failed to even have their calls returned and letters returned from chinese authorities. in the meantime, a series of trade reprisals, the most punishing being tariffs on australian wine for five years. >> as you know, much has been made of the fact that scott morrison did not get a private meeting with biden over the weekend. is this a climate snub? >> it is not clear what led to this sudden change of personnel i do meeting. it was scheduled for biden to meet with prime minister morrison on their own. at the last minute, johnson appeared.

i am not sure morrison will be disappointed, given one of his missions at the meeting was to gather international support from major global leaders against what morrison describes as economic coercion. he did not mention china, but he probably did not need to. australia has clearly been under coercion from china. in that meeting with johnson and biden, they discussed mutual concerns including that specifically. in that respect, morrison may be happy that he has at least appeared to gather support for that idea. australian frigates will join a british carrier strike group in exercises in the indo pacific. so, seemingly a show of strength against china. >> thank you so much angus

whitley joining us from cindy. british prime minister boris johnson returned from posting world leaders at cornwall to delaying plans to lift england's pandemic restrictions. >> we are continuing to look at the data. no final decision has been taken. we will fill everybody in on what we will do with june the 21st. that is tomorrow, as i have said. that is when we will be putting out the whole packet of information so everybody can see it. >> johnson is expected to extend by another month. our health care reporter michelle cortez has more. is the delay certain? >> at this point, we do expect to be the case, yes. >> all right. so, they will be lifting restrictions, delaying them.

is there a broader message for countries outside the u.k.? >> what we are seeing here, really, is the issue with the delta variant. the thing we are thinking about more broadly in the world is how much of a threat there will be from a resurgence of the violence -- of the virus more generally. we are seeing the virus be much more infectious and verlander. -- and virulent. countries are trying to protect themselves from mutations that can be more devastating for their populations. >> michelle, we saw the g7 wanted to make a big impact with their vaccine pledge. did that fall short? >> it did. the g7 was supposed to be pledging an additional billion vaccines for the developing world. it ended up with something a little more than half of that,

maybe 600 million doses. some of these vaccines pledged were pledged to eugen -- pledged using money that had been previously donated to go towards covax. united states, for example, will be providing 500 million doses of pfizer, but some of that, they have already said they were going to do. so, instead of giving it directly to covax, they will be buying the vaccine and then distributing them themselves. we are seeing that not every country in the g7 has a lot of vaccine. we are certainly seeing that across the world as well. so, the countries that have a lot need to step up to provide more. >> marta, daybreak australia. this is bloomberg. -- more to come on daybreak australia. this is bloomberg.

♪ >> the united states is not looking to kick off a cycle of escalation with russia. >> it is not us who brought russia and u.s. relations to the present condition. >> if presser continues to interfere with our democracy, -- if russia continues to interfere with our democracy, i am prepared to take further action. >> the united states wants to uphold our develop -- wants to obstruct our develop. >> by responding proportionally

to russia's interference in our elections and the cyberattacks on our governments. >> the united states and russia have corresponding interest. >> we can cooperate when it is our mutual interest. >> i do hope our meeting will be constructive. >> like a look there at the u.s. column -- the u.s. russia relationship i had of biden's first face-to-face talk with vladimir putin this week. nuclear weapons, sanctions, and cybersecurity will be sure to be talked about in the bilateral agenda. in the meantime, around cast -- iran cast doubt on the chances of reviving a nuclear cord before electing a new president this week who is likely to take a more hard-line stance. we heard today from the

presidential election. how will we gauge what he said? >> well, there is some mixed messaging, at least on the surface from iran. if rain raisi is the hard-line cleric tipped to win the election saying that yes, he supports the nuclear talks with other world powers, but -- or, with the world powers that came up with this original deal in 2015. but, he claims he will not make them a priority. the presidential election is on friday. it looks like there will not be a deal before then based on everything we have heard. on the other hand, we also know that iran's supreme leader, the hired taylor khomeini -- the ayatollah khomeini supports the talks.

there will have to be decisions made after this election, if it turns out that the way is expected and the underlying interest. so the sandwich is iran wants to get economic sanctions lifted and start popping up its oil effort again. >> russia wants to supply iran with advanced satellite systems. how is the u.s. responding to that? >> actually that came up today in some interview questions to u.s. secretary of state antony blinken. he said that there is no quid pro quo on that issue in terms of the nuclear talks and making some kind of deal with russia. so, the u.s., or rather president biden, is likely to

raise that with president putin when they meet during this week. but, the around talks -- the iran folks seem to be on a separate track. -- the iran talks seem to be on a separate track. the view is diametrically opposed to the trump administration at this point, which is, it is important to engage with iran in order to rein in their nuclear programs which has gone outside the bounds of the agreement during the time where the u.s. has been outside the deal, which of course is a decision taken by president trump. >> we are seeing quite a bit of pressure on the u.s. to agree to a deal including some rhetoric from beijing. >> that is true. the u.s., as you know, is not

taking part in these talks in vienna directly. it is kind of shuttle diplomacy. but of course, the only objective is to get the u.s. back into the agreement. now, both russia and china in the last 24 hours or so prodded the u.s. again to move and unlock this deal. that is a kind of diplomatic gesture that has an going on for weeks. talks resumed after president biden took office. but, as we were saying, blinken made it clear that there is this underlying u.s. interests, which is to get some kind of agreement from iran to return to the nuclear restrictions. whereas, the trump administration in what it called

its maximum pressure campaign against iran said, well, the agreement has to be much broader and involve other nefarious activities by iran as seen from washington, which is something that the trump -- the biden administration is not divorcing anymore, at this point. -- not enforcing anymore, at this point. >> be sure to tune into bloomberg radio to get more in-depth analysis from the daybreak team. we are broadcasting live from hong kong. missing in via the app. mourad. this is bloomberg. -- more ahead. this is bloomberg.

♪ >> you are watching daybreak australia. we have indian inflation due later this monday. higher price pressures in india. oxford economics says growth concerns will evaluate helping the rpi push through these. elsewhere, in brazil, a third

rate hike is anticipated as the central bank seeks to get ahead of inflation. that will help continue the pace uprising. that's uprising. -- of pricing. >> tesla well resumed transactions with been going when mining is done with more clean energy. transactions will start back up. must -- mosque -- >> southeast asia's most valuable stock is confident it's spac listing will be ready by the end of the year. it is the latest company to be affected by intensifying scrutiny from u.s. regulators.

ceo brian thaad told number -- anthony can -- 10 -- tan. >> we wanted to go to free clearance of the fcc. we want to set the bar in transparence -- transparent financial reporting. it might have taken a little longer than expected, but, today , what we have done in q1, we have beat our targets. >> all right. blue origin has successfully installed a seat on the bezos rocketship for $28 million. we will not know the way -- i dinner -- identity of the winning bidder for a few weeks.

there were more than 7000 submissions from 159 countries. it works out to be something like 42,000 dollars a second for that trip. >> $20 million, right there, i am not in the running. but i would not be so anxious to get on. you have to be between five and six feet tall. you have to sit strapped in the vehicle for as long as 90 minutes without access to a laboratory and be able to withstand invitational forces as much as five and a half weight during dissent and three times your wait for as long as two minutes on dissent. i will wait until they work out all the kinks and it is more fun to do. >> i have to say, i'm feeling better now post-pandemic. vaccines are up.

everything is opening up. maybe in the dense of pandemic, people were thinking, gosh, i would like to have an option out of here. it is interesting. he is far from being the only billionaire in the space race. he is competing against of course elon musk and richard branson to offer space tourists an option. >> i will not be first in line. let's take a look at the next hour. markets analysis with head of economic and strategy from singapore. do not miss recycling and packaging. we hear from anthony pratt about what is next for regeneration family business. that is wrapping it up for daybreak australia. we will continue to another markets. we have great guests lined up on

daybreak: asia next. this is bloomberg. you'll ♪ ♪

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>> welcome to "daybreak: asia." >> we are counting down to asia's market open. >> now, our top stories this hour, g-7 nations look to forge united france with how to handle beijing. joe biden takes a hawkish stance while others swear the group will be seen as an