haidi: a very good morning and welcome to "daybreak australia." sophie: we are counting down to asia's major market open. shery: the top stories this hour, tech leads u.s. stocks to a record high, extending a rally that has already added $6 truly into the equity market this year. facebook joins the trillion dollar club after winning an

antitrust case. haidi: banking shares jump as well and extended trading. morgan stanley and goldman sachs leading lenders in boosting dividends. shery: and we talk to a company after pay about how the pandemic is changing their global strategy. this is the picture across wall street. u.s. futures muted at the open, but this after the s&p 500 closed at another record high. we had the dow falling with growth concerns. reflation trade waning, a choppy session. those tech stocks outperforming. philadelphia semiconductor index at an all-time high. nvidia, the highest since february, with thriving bond yields also helping tech shares. energy companies though led the losers, given that we did get oil underperforming. right now it is extending those declines. bancshares after the bell, take a look at these stocks. dividend and buyback announcements are rolling in. morgan stanley leading the pack

after doubling quarterly dividends. we will be following those stocks after the close. we are seeing j.p. morgan underperforming. of course it was all about the equity markets. and facebook joining the trillion dollar club and gaining more than 20% this year after that antitrust case, right? haidi: yeah. this is a company that took the shortest amount of time to get to that very elite club. of course mark zuckerberg is the youngest of those tech leaders to get there. lots of criticism of course, as we see the with this antitrust dismissal, there is still a lot of criticism that to get to this breakneck pace of growth, that perhaps the company needs to refocus on some structural issues. some regulatory issues, and questions that continue to arise. shery: let's discuss all those questions with a net suggest, who says equities remain very attractive because they can position for inflation. let's bring in joanne's -- joanne feeney.

great to have you with us. given these record highs we continue to see, especially with growth stocks continuing to rise, it seems the debate over valuations is coming back. where do you stand? joanne: yeah, great to see you, as always. tech is clearly a place investors need to have exposure. and some of those valuations are a little scary, but there are plenty of tech stocks to choose from. more importantly, there are many years of growth ahead for areas such as cloud transition and 5g, and some related areas. we're seeing semiconductor shortages, that will continue and that means more growth to come. as you pointed out, i recommend being selective, but you definitely want to have good, solid exposure to technology here. shery: what about the reflation trades, especially at a time when it seems profit recovery has already happened? joanne: you know, i think a reflation trade is certainly taking a bit of a pause, but that does not mean it is over.

as we wrote in the commentary this morning, my colleague wrote the real reopening is likely not coming until the fall. we have had the initial reopening, people tentatively getting back to work, but there's a a lot of reasons for folks to be staying home this summer, whether it is unemployment benefits or kids staying home. but come labor day we are going to see a lot more people going back to the workforce, manufacturing ramping up quickly, services as well. so we are keen on some smart, cyclical place. we think the reflationary trade comes back. look for t.j. maxx, which has lacked other consumer players and depends on reopening happening. we still like target and williams-sonoma. there's a mixture of valuations in tehre, but we think the -- in there. but we think reflationary trade will come back in the fall. haidi: this week, morgan stanley leading the pack, doubling its quarterly dividends. how much, i wonder, is getting already priced in, or will be

priced in, and that rally will fade again? joanne: you know, it was well understood that the banks were in good shape in terms of their capital holdings. and so it was understood they would pass this latest test. nonetheless, there is still uncertainty about how much they will increase their dividends and how much buybacks they will be able to initiate over the next six months to a year. also never the bank's actual businesses have been pretty weak. loan levels are down, the yield curve is relatively flat. we saw some of the excitement from banks come off a little earlier. but as we get into the fall and business activity picks up, loan demand will pick up. and those banks also serve the purpose of an inflation hedge. once the yield curve steepen's again, and we expect that later in the year, the bank profitability rises and you get the loan demand going up as well. so we think banks are a good hedge to keep in the portfolio, and would dividends rising, and buybacks likely to come later in the year, we think that is a

good thing to happen to a portfolio as an inflation hedge, and we are putting that in there for our clients. haidi: how much of it growth -- of a growth driver ever going to see for chips? even if it is a multiyear or longer scenario being projected? joanne: yeah, you know the demand now is fairly unprecedented. what is different about chips these days as they have so many more end markers that he used to, when it used to be just about pc's and servers. what it means is growth would be slower than it would otherwise be if we did not have the supply constraints, but it will also last longer. if you pick and choose your places, broadcom for example, autos, cloud computing, smartphones, these are pretty attractively priced stocks. we think there is a lot of further double-digit growth over the next several years. so we really do like that space as part of a well constructed, diversified portfolio. shery: are you playing in the

policy divergence we are seeing right now with more developing nations starting to hike rates? joanne: yeah. there's a lot going on when you look globally. as an economist, we are paying a lot of attention to the global dynamics. whether it is the different levels of easing an oncoming research and from global banks, but don't forget coal would has a big role to play internationally. the u.s. is first out of the gate with high levels of vaccination for a large country. we should see that continuing in the coming months, quarters, and even years. so we are stored of -- sort of looking at a staged recovery starting in the u.s. and then spreading around the world. that is likely -- that is why we like to include a lot of international stocks in our portfolio, and we have a dedicated group just -- that does just international. we have to watch out for the central bank issue, but we think interest rates will remain low for a fairly long time. haidi: always great to have you with us. joanne feeney. right.

let's take a look at how the set up is looking this tuesday session in asia. sophie: futures are mixed. seeing rotation trade stall. the value stocks in the region over the past six weeks, we have delayed reopening's in places like australia, which has put the australian dollar as the laggard this quarter in the g10 space. switching out the chart on the terminal, that's helped push the climb for the chinext, close to topping the year's highs, eyeing 2015 highs after the best two day session since mid-may. we are seeing this push-up valuations in the chinext, which is now trading at about 45 times forward earnings estimates. but the reflation trade is not over just yet. shery: we are watching that closely. let's now get over to vonnie quinn with the first word headlines. vonnie: the house is set to vote

on two bills aimed at increasing america's ability to compete with china. the bipartisan bill prices $128 billion in combined funding to boost research and develop. it is similar to another bill passed by the senate earlier this year. the difference is about to be negotiated before a final version goes for a vote. hong kong will ban all passenger flights from the u.k. starting thursday. it's labeling the country extremely high risk, just as it loosens entry requirements for travelers from most other parts of the world. authorities cited the widespread delta strain in the u.k. hong kong is preparing to ease entry rules are most country -- rules from most countries. the biden administration defended its decision to launch airstrikes on iran-backed militias in syria and iraq. speaking on a visit to rome, secretary of state antony blinken said the raids were necessary to send a deterrent

message and said the u.s. would not hesitate to protect their interests in the middle east. >> with regard to the strike last night, at the president's direction, u.s. military forces instructed airstrikes against facilities used by iranian-backed militia groups. they targeted facilities used by groups responsible for recent attacks on u.s. interests in iraq. specifically, they targeted operational weapons storage facilities at two locations in syria, one location in iraq. vonnie: facebook has won two antitrust cases after a judge ruled the government failed to establish social network had a monopoly. the lawsuits were brought by the federal trade commission and a coalition of states who claim facebook violated antitrust laws by buying instagramming whatsapp. the plaintiffs have 30 great -- buying instagram and whatsapp.

the plaintiffs have 30 days to refile. 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 vonnie quinn. this is bloomberg. haidi: coming up, our exclusive interview with the country's biggest buy now pay later company, planning a foray into retail banking. don't miss our conversation with nick molnar later this hour. next, u.s. banks are boosting payouts and buybacks after the recent stress tests. we will get you the details. this is bloomberg. ♪ s bloomberg. ♪

shery: the biggest u.s. banks are boosting payouts and continuing buybacks after clearing the fed's stress test. among the highlights, morgan stanley doubling its quarterly dividend to $0.70. let's bring in our finance

editor. morgan stanley not disappointing. they are leading the pack. what are they saying? >> that is exactly right. morgan stanley doubled its quarterly dividend as you say, and announced as much as $12 billion in stock buybacks. they are the first of the biggest u.s. banks to come out and respond after the stress -- after passing the stress tests last week. it was only a couple hours ago they were allowed to tell the markets what they were up to. the morgan stanley ceo saying the bank has accumulated significant excess capital over the past several years and now has one of the largest capitals in the industry. shery: what about the other banks? nabila: look, as i say, they were only allowed to tell -- start telling their plans a couple hours ago. we have already seen goldman sachs my jp morgan come out and boost their dividend. goldman sachs is going to $2 a

share, basically lifting their dividend by 60%. jp morgan is going to $1 from $0 .90. they say they will continue their existing buyback plan. then you have wells fargo which boosted dividends and announced $18 billion in buybacks. basically what it is showing is u.s. banks are very well-capitalized, and this is a great day for the banks because they are showing this is the first time they are lifting buyouts in a couple of years. it shows they are better off than they have been in a long time. shery: what does this mean for banks in other regions? nabila: shery, in europe of the banks are still not allowed to say what their dividend and buyback plans will be. remember that during the pandemic last year all around the world, regulators curbed buybacks and dividends. the european banks are still under that order for a couple more months yet. here in asia, the australian

banks are certainly gearing up to pay out, to announced capital management plans. and we are expecting about $30 billion in dividends and buyouts on the australian banks. now that the economy is recovering and all the banks have come through pretty unscathed. haidi: finance reporter nabila ahmed in sydney. the house of representatives is set to vote on two bills that may form the core of legislation designed to boost less research and development in response to china's challenge to economics of pharmacy. joining us now is congressional reporter dan slightly. we continue to talk about this in broad strokes of countering the great strategic and competitive relationship of our time. what we know about what could be in this set of legislation? dan: right. so, the house is taking up two bills this evening, a combined about $128 billion worth of authorized spending to try and

boost u.s. research and a moment. this is sort of -- research and development. this is sort of a companion bill to what the senate passed a few weeks ago which was $250 billion. the difference is in some additional money that would go toward semiconductor manufacturing here in the u.s. that is about $50 billion in the senate bill that was passed, but right now is not in the house legislation. so they will need to work all that out in a conference committee. but the overall effort as you mentioned is to boost u.s. research and development, to try and counter the competition that the u.s. is feeling from china. and this is part of an effort to do that. so we will see where we end up at the end of the day with both these bills. shery: exactly. the senate went ahead and had one comprehensive bill. now you have two bills from the house. so what does this mean for the path forward? will you need to reconcile three

bells in order to finally get it to biden's desk? dan: that is a great question. actually if you start counting, you might end up with three or four different bills from the house. the two chambers are taking a very different approach. the senate kind of wrapped everything up into one, big, massive bill. in part that was because the democratic leader chuck schumer was really pushing this from the outset. in the house they are taking a bit of a different approach. they are taking a step back. they are having their committees pass things one at a time. we had the two sign committee bills tonight. the house foreign affairs committee is expected to take up a bill in its committee market process on wednesday. there may be additional committees weighing in on this, energy and commerce, ways and means. so they are moving quickly, but perhaps not as quickly as the senate right now. but frank lucas, who is the top

republican on the committee, told me earlier today he thinks they will have something together, both house and senate, by september or october. so things are actually moving pretty quickly in terms of washington, d.c. haidi: where does this all leave the trade relationship, then? dan: you know, that's a great question. i think that we just came through two to four tumultuous years of where the trade relationship was front and center. there was a lot of barbs going back and forth between then- president donald trump and president xi jinping of china. i think that this is a little bit more of a focus on kind of a soft power. some critics of these bills that congress is taking up have said that they focus more on domestic spending rather than a hardline approach to china. i think that is kind of a recognition on the part of u.s.

lawmakers, particularly coming after the last year or so with the pandemic, that the u.s. needs to onshore a lot more of its capabilities, and also needs to boost its research and development, which i think a lot of folks feel the u.s. rested on his laurels and let a lot of that fall to the wayside over the last 20 to 30 years. so they really want to boost that back to where it was many years ago. shery: dan flatley there in washington. coming up, facebook's antitrust win helps push it past the $1 mark. we will have more, next. this is bloomberg. ♪ this is bloomberg. ♪

haidi: a quick check of the latest headlines.

cathie wood's company is the latest -- if approved by the -- so far there are eight other coin etf's, which last week postponed a decision to approve one of them. singapore's carousel is considering a u.s. listing via spac merger. it's set to be working on a potential deal that could value the company at as much as $1.5 billion and take place as soon as years and. it would join a growing list of southeast asian companies planning -- planning to raise up to $2.3 billion. they are selling more than 65 million shares up to 39,000 yuan a piece which could push capitalization to more than $16 billion, and make it korea's

third most valuable lender. an affiliate has been given preliminary approval for its ipo. u.s. antitrust investigators are said to have stepped up scrutiny of google's digital ad practices, extending a trump era investigation. sources say justice department staffers have interviewed multiple google competitors in recent months. you scrutiny puts a target on google's second-largest business. shery: such a scrutiny on facebook because it won a dismissal of two monopoly lawsuits filed by the u.s. government and a coalition of states. shares jumped and hope to push the social media giant past the $1 trillion market cap, making it the fastest company to reach that milestone. sarah frier joins us now with the latest. how big of a hit is this for the states and the ftc as well? sarah: this is a huge victory

for facebook. because i do not think a lot of people expected the complaint would be totally dismissed. of course the ftc has 30 days to revise it but this is indicating the bar would be high. given what we have in terms of our antitrust law, the government is especially concerned about the description they gave for facebook as a monopoly. so it's not clear, as least as far as the ftc outlined in our case, that facebook has a monopoly on outline -- online networking. in saying that, the rest of the case cannot even be considered if you cannot establish first they have a monopoly. so they have a lot of work to do. i expect they will probably file something in those 30 days. but in the meantime, facebook is celebrating because it shows just how difficult it is going to be for the government to reign these companies in.

we were already expecting these challenges to take years, and facebook meanwhile is just getting stronger. haidi: yet, stronger as an -- yeah, stronger as in now a $1 trillion company. to what extent has this growth come at, and what are longer-term issues the company needs to address? sarah: if you are facebook, for if you are a smaller company wanted to be the next facebook, what incentive do you have to do anything except grow at all costs? that is really what this $1 trillion shows. it shows despite all the criticism of the past few years, despite all the scandals and setbacks and earrings that we have had for facebook, investors love it. and it's growing. and the revenue keeps coming in. so this just shows that facebook

is doing exactly what the market wants it to do. shery: what are we expecting then in terms of antitrust legislation actually passing congress? are we going to see more action there? sarah: well, last week there was a hearing to mark up most recent antitrust bills that have been filed, and congress took it very seriously. they discussed late into the night these various proposals. i think we are seeing a lot of momentum. and lena con, who is now appointed chair of the ftc, is known to be very strong against big tech. so i think we will see a lot of movement. i just think this is a temporary setback. haidi: sarah frier in san francisco with the latest on facebook. coming up, our exclusive interview with australia's biggest -- as -- we will be joined by co-founder

nick molnar from bloomberg's first virtual event, coming up next. this is bloomberg. ♪ this is bloomberg. ♪

>> you are watching "daybreak australia." time for morning cause ahead of the asian trading day. wti extending losses below $73 a barrel, ahead of thursday's opec-plus meeting, and bloomberg says that will be tested. as they assess the demand will be facing headwinds as they see peak u.s. consumption growth, the shift in the fed policy, but pulling up the chart on the

terminal, there could be a path to $100 oil. looking at one analysis highlighted by our colleagues, you can see that analysis on the terminal. they have tracked the spending by major oil companies by exxon and reliance industries. this has been underway since 2020 made calls for decarbonization and the esg push. constraints on supply comes as demand is rebounding in the market, which is expected to continue on opec-plus policy. also forecasting $100 oil next year, given they expect a rebound in travel demand. shery: quite the call. we do have an alert on the bloomberg. we are confirming some news we reported on last week. ipo pricing at the higher end of the range. it's hong kong ipo shares at 19 hong kong dollars, $.80 each. this would be the bubble tea

holding that will begin trading on june earliest. it is slightly lower than what's expected and they are saying the hong kong ipo retail offer was 432 times covered. this again at the top of the range. 19 hong kong dollars, $.80 each. >> there has been a huge amount of domestic interest as well as retail interest in the chinese ipo's and that is a trend that we will be continuing to watch. the past year has transformed nearly every aspect of our world with a dramatic shift in jobs, communications, finances. that financial aspect is under debate. to talk about how the payments sector has changed and benefited from the pandemic, let's bring in the co-ceo of an australian company with global ambitions. great to have you with us again and it is always good to chat

with you so clearly, the pandemic has been beneficial and transformative for the business you have been in. where to now? >> very interesting last 12 month period. from our perspective, the primary shift has been away from credit to debit and we are seeing that subsequently translate into a significant left. the next generation consumer is only getting more powerful given that they now contribute 30% of retail and in 10 years will contribute 50% of retail so we are seeing their trends start to permeate throughout the broader ecosystem and we have been fortunate to partner with some of the best friends in the world that have continued to take us global. >> it is like a sense of democratization that i think you are alluding to for the next

generation. what kind of a regulatory and government role do you see in this? nick: it has been a really important topic for us from day one. we have always been pro-regulation. what you are seeing is two out of three millennials in the u.s. and australia don't own a credit card anymore. they use debit cards. 90% of our consumers use a debit card, not a credit card. traditional forms of assessing credit are not as accurate or indicative of someone's risk profile as they used to be given this generation is spending money fundamentally differently. the way we thought about our model where we disable someone's account the moment they are late so they cannot keep shopping, that is the opposite of the credit provider that desires someone to be outstanding as long as possible. having the right conversations with regulators throughout the world. shery: we have heard chatter

that perhaps your platform would be incorporating cryptocurrencies when it comes to payment methods. is there a plan? nick: we have definitely seen a variety of trends that millennials have led over recent months. in many says, this is showing that the millennial cohort can have a meaningful impact in a short window of time on the broader ecosystem so crypto is something we have been following and there's obviously a huge amount of demand for the consumer base. more importantly, the macro trend in how millennials are having their impact and their preferences are starting to become the trend in the economy. shery: not all cryptocurrencies are created equal. which ones are you planning to incorporate if you do and when? nick: we have not announced any plans to incorporate crypto as of yet but we have done a lot of research into our customer base on their desire for crypto.

we did roll out our loyalty program as of a couple weeks ago and that starts to create -- there is the distribution in terms of demand that we are seeing in the market and naturally, that translates consumer preference so i think it's pretty obvious which of the ones have a greatest holding -- have the greatest holdings and when can professional applications served t -- start to show through? haidi: where do you see the application for your business model that involves bitcoin? nick: from our perspective, we have been watching bitcoin from the sidelines. it has not been something that has gone mainstream from a consumer perspective but we will keep a close eye on it. haidi: talk to me about the regulatory side.

do they worry you as you are looking quite clearly to beef up your international action plan, north american expansion plan? nick: you think about how the credit industry works, if 100% of people pay off a credit card on time, the industry simply does not exist, does not function. incentives are for someone not to pay back rather than payback. to have a product that fundamentally shifted alignment with the consumer is a really important value proposition for us and to be able to work with regulators throughout the world is a great privilege as we look at things with no interest, continuing to expand permanently, so obviously, we made a lot of progress in australia over recent years, which is our most mature market and similarly in the u.k., we are having active conversations so it is great. the right conversations are being had. haidi: beyond the u.k. and the

u.s., what are the geographic markets you are focusing on this year? nick: global retailers have taken us international. we went into the u.s. come into the u.k., and more recently, we launched into spain, italy, and france, so southern europe is an important market for us as well as canada, so we are looking to be that global platform for these global brands and just to be able to prove results for them in home markets and leverage those research relationships we have to expand internationally. that is core to our strategy and it has been since the day we started business in australia. life in a variety of countries -- shery: your stock, after surging to triple digits last year, not doing quite as well this year. do you have any thoughts on that? nick: one thing that is for sure about our share price to date is

there's been a variety of time frames of volatility but at the end of the day, it's going to be the execution that drives the outcome for us. fortunate to continue to show the growth we have had and as we keep expanding our retail relationships, americans are present, and international expansion, we are confident that the short to medium-term plan will keep delivering like it has in the past. shery: nick molnar, always great having you with test pit we will have more guests from the virtual event. the founder and ceo joins us later on "daybreak asia." australia holding onto a top 10 spot in bloomberg's covid resiliency ranking despite the nationwide virus curbs and spreading delta variant outbreak. hong kong halting off lights from the u.k. as cases surge to the highest since january.

this is bloomberg. ♪

>> you are watching "daybreak australia." i am vonnie quinn with the first word headlines. japan's number two defense official laid out the increasing

threats he sees from a more assertive china. these include longer-range missiles and more frequent airspace incursions. the state minister told a washington-based think tank that it is already possible for chinese missiles to target the white house and he also said japan is not just a friend to taiwan, but a brother. 11 people are now confirmed dead in the collapse of residential -- a residential tower outside miami. more than 150 people are missing as rescue crews comb through the rubble for a 50 day. their efforts are still search-and-rescue operations and no one has been found alive hours after the collapse on thursday. a building assessment three years ago had warned of major structural damage. india has unveiled more support measures for the pandemic economy including a 50% expansion in its emergency credit program as well as assistance for the health care and tourism sectors. measures will help asia's

third-largest economy as it begins to show signs of recovery from a record contraction during the first wave of the virus must your and a second much more intense wave earlier in 2021. a new study found mixing doses of covid-19 vaccines from pfizer and astrazeneca create a strong immune response. the university of oxford research could enable greater flexibility in the use of scarce supplies. the next schedule of the pfizer shot followed by the astrazeneca vaccine and vice versa results in high concentrations of antibodies against covid-19 when given four weeks apart according to the study. 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 vonnie quinn. this is bloomberg. haidi: australian authorities are racing to contain outbreaks of the highly contagious delta coronavirus strain that forced sydney and perth into lockdown and put other major cities on high alert.

the deputies sydney bureau trees joins us -- bureau chief joins us now. >> good morning. the latest city to go into lockdown was perth, made the announced -- announcement lace last -- announcement late last month. marc macgowan, the premier, has always been very quick to lockdown at the slightest sign of covid breaking but we have a four day law down that adds to the existing lockdowns we have in darwin and sydney and the criticism of prime minister scott morrison is ratcheting up about the vaccine rollout. less than 5% of the population here are fully vaccinated, which is obviously well behind some of the western countries, u.k. and the u.s. being clearly the most obvious. shery: tell us a little bit about the government response and how much cooperation and coordination there has been with the federal government in the

cities that have had to lock down? james: what we have seen with the latest outbreak is the premier of new south wales has come out and been openly critical of scott morrison, the national leader, which is strong given that they are from the same party. we had announcement from scott morrison last night on new measures to contain the latest outbreak and expedite the vaccine rollout. feels a little bit like tinkering around the edges. they make vaccinations compulsory. they are making changes to the quarantine system where estimates are quarantines will be separated from the international quarantines and he said they will try and make that hurry up. they are now saying that if you are under 50, you can get the astrazeneca does which previously -- dose which

previously they recommended pfizer. haidi: a lot of their changes i think critics would say should have happened months ago, way earlier in the pandemic. on the to and from, this is causing more confusion because we have done flip-flops and changes on guidance we are times since the vaccine became available. james: you can understand people's confusion and reluctance to go back to astrazeneca given it has been previously recommended they stick with pfizer for the younger generations. one or two with this outbreak will be motivated to just get the vaccine given the risks are well documented are very small, far less than the actual chance of getting covid though this could spark something of a pickup in vaccines and that remains to be seen. the criticism is increasing on scott morrison. shery: james thornhill with the

outbreak in australia. it is banning all passenger flights from the u.k. as it lowers entry requirements for most other places, labeling the country extremely high risk. the british government is still optimistic and can lift all remaining restrictions next month even as cases surge to the highest since january. >> with every day that goes by, it is clearer to me and to all our advisors, scientific advisors, that we are likely to be in a position on july the 19th say that that really is the terminus and we can go back to life as it was before covid as far as possible. shery: let's bring in michelle cortez. the u.k. is one of the most vaccinated countries in the world. it is not in the reopening? >> absolutely, the u.k. would be in a much more difficult situation if they did not have such an incredibly asked rollout of the vaccination but a couple

of things that they did might have reduced the effectiveness of the vaccines that they did give andy remember that they were giving two doses to everyone and they decided to lengthen the time between doses and give everyone one and then follow up later with a second dose. we do know now that that would mean delaying that middle period of time. it does increase the effectiveness of the vaccines ultimately but while you are in the intermediate period, you are not at attempted. we are seeing some of that in the u.k. with the delta variant. it is hitting some of the people in the u.k. who are not fully vaccinated and many young children are not yet available to get vaccines when we are seeing huge increases. shery: talk to me about the latest covid resilience indicators because it is astonishing looking at how much

things have changed over the past few months and just the kind of different grading -- in australia, quality of life is very high on the ranking the vaccine coverage is pretty horrible compared to other countries. michelle: we have seen kind of a topsy-turvy situation emerging in the covid resilience ranking. that of course is because many places in the west did a terrible job getting coronavirus under control as the outbreak was raging but now that vaccines are available and many of those countries are getting high vaccination rates, we are seeing them open up even when they have coronavirus circulating. that is opening up the willingness to deal with some of the covid infections, getting back to vacations, allowing travel, allowing restaurants and events to start happening again without quarantines and other

restrictions. it is ranking places like the u.s. higher, the u.s. number one now. other places, specifically singapore, for example, they did an amazing job keeping coronavirus under control as the outbreak was raging. they have not been able to open up so that restriction, then isolation, is really dropping them down in the index and that's about where you want to be, where you can have the best life if you are trying to deal with the coronavirus outbreak. >> michelle cortez always on top of that for us. haidi: bloomberg school of public health spoke with bloomberg about the urgency of the vaccine rollout to deal with the delta variant. >> given how quickly it is spreading, it should be a concern because it can be stabilized even in countries that have done a pretty good job vaccinating so for that reason,

all these warnings are reasonable and it is an extra push to get people vaccinated and to help people and others understand the importance of vaccination. >> great. we are going to do it. celebrities will step in and get vaccinated, etc., or do we need corporations, sporting events, etc., to say enough, you have to be vaccinated if you want to participate? joshua: i imagine that will happen. i think it will become more of a standard in this country given the very strong safety record that they have and the fact that they will be fully licensed. i think that probably is going to happen more and more. >> you said that the delta variant could destabilize countries, even that have high rates of vaccination among the population. can you elaborate? >> -- joshua: countries that have very high rates of vaccination will be protected but countries that have pretty

high rates, see in the united kingdom, cases going up and a sign that deaths growing up. we will be particularly vulnerable. maybe even a summer in some places based on how transmissible this virus is. there is a distinction between destabilizing individuals because they are getting sick from the delta variant, as students report out of israel showed over the weekend versus just being more prevalent among those who are not vaccinated. can you give us a sense of the risks on the other site, even for vaccinated individuals? joshua: the risks are much less for vaccinated individuals so they can get sick. they can still get very sick it is pretty rare. we should care about how the

entire state, the entire country is doing, and by that metric, we should all be wary because it is true that people who are on are particularly vulnerable and these viruses can cause serious damage even among young people. lisa: we have this with other illnesses, too. we start treating covid. just another virus that we have to deal with like the flu, like other common colds that people get. there is a question at what point we crossed the rubicon where people have vaccinations available if we are not seeing the high hospitalization rates where it is ok and you cannot necessarily just restrict travel and business and ready. when do we crossed the line? joshua: from a public health perspective, you have to realize the amount of illnesses and deaths we are potentially vulnerable to is anonymous -- enormous and it slumps normal flu season so we are not talking about flu in the sense of the number of death if we don't get

more vaccinated. from a public health perspective, that is one thing. if we want to say, from a social perspective, we are willing to say, you know, it is all on you. we are going to be spending a lot of money for hospitals. it will affect how our health care system operate. afraid to go out. spend money in the economy. the fundamental dynamics have not shifted. we better off if we can control the total amount of illness out there. >> joshua of the bloomberg school of public health, supported by michael bloomberg, founder of bloomberg e.m. bloomberg philanthropies. shery: be sure to tune into bloomberg radio to hear from the newsmakers and get in-depth analysis from the team. listen via the app, radio class, or bloombergradio.com. plenty more ahead. stay with us.

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>> we have an alert on the bloomberg. the house of representatives here in the u.s. has the vote to pass a science foundation bill. the vote is ongoing. that's one of the bills that formed the legislation the chamber designed to boost r&d in

response to china's challenge to the u.s. economic supremacy. the other bill would be providing additional money for the department of energy but of course, they still have to reconciliation it with the senate bill as well. that is it for "daybreak australia." "daybreak asia" is next. this is bloomberg. ♪

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>> hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. shery: good evening from bloomberg's will headquarters in new york. i'm shery ahn. top stories this hour. banking shares jump in extended trade as wall street lenders announced a bonanza of buybacks and dividends cap nations also except for a mix to as the reflation trade loses steam amid new trur