has knocked out transmission lines and wiped out thousands of megawatts of power to the golden state. the national weather service said most of california remained under excessive heat warnings with highs topping 100 degrees in the evening. president biden is calling on cuba to listen to the people's demands after some of the largest street protests in decades. he says the united states stands with the cuban people with quote, "are bravely asserting universal rights." cuba has seen massive blackouts, food shortages, and increased covid-19 cases. cuba's leader is in part blaming the u.s. blockade. treasury secretary janet yellen

said that she will not be nominated without giving her reason. the former investment banker is a former obama era appointee who worked for secretary of state hillary clinton. global news 24 hours a day on air and on quicktake by bloomberg. powered by more then 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ alix: it is 1:00 p.m. new york and 1:00 a.m. in hong kong. i am kailey leinz. here are the top stories from around the world. virgin galactic successfully launches richard branson into space. we discuss what it means for the future. of space tourism. and the ecb's christine lagarde

is preparing for new monetary stimulus. we bring you more from the exclusive interview. we have the latest on the virus as the u.k. reopens in the delta variant takes over the u.s. we discussed with tober when johns hopkins university. this is the head of a really big day with u.s. cpi data and being bank earnings kicking off -- big bank earnings kicking off. it is the banks outperforming today ahead of those numbers. we are getting a bit of a flattening right now. sitting at 118 basis points or so and it is stronger in the space today including against

the euro. i want to get back to the bond market and look at the 10-year treasury yield because we got a $38 billion auction. 1.36% after that. essentially where was before the auction. investors seem satisfied with the takedown. virgin galactic pulled off a key flight yesterday when richard branson completed a test flight to space. with us is ed ludlow who joins us from new mexico. space captures our imagination. we are watching with bated breath is richard branson took the trip to space. but what is the business case? how was virgin galactic going to make money off what we saw? ed: this really was the test

phase. the plan was always for richard branson to go up and test what the experience would be for the paying customer. i ran through the business model and it can carry six paying passengers at $250,000 a pop. prices will go up until they can scale the number of flights they are able to do. paying customers at that level gives you $1.5 million per flight and the operating cost is around $400,000, $500,000 per flight. they still have to build the factory, they have to put money into the r&d, marketing, and they have stopped selling additional tickets. that need for capital is pretty clear. >> where is that capital going to go? $5 million worth of shares,

where can we see it quickly put to work? ed: in the near term they only have two of the starships, the thing that launches you. they also need to build more of the fuselage airplane. i was speaking to the new mexican governor and she said they are in early talks about the next stage of the relationship. new mexico spent $200 million building spaceport america. they got a great deal but they need somewhere to manufacture the space craft and it does not exist yet. the governor is hopeful about job creation, hopeful about the investment, but the fact they are in early talks gives you a sense of how long a road it will be scaling up this business. kailey: let's contrast virgin galactic with blue origin which is another space enthusiastic billionaire venture. jeff bezos will go up eight days

from now. how is that flight going to look different from richard branson's ? ed: it is exciting. i get another trip to stand in the desert sun. [laughter] kailey: lucky you. guy: i know. they have this classics bache age debate. ed: -- do you use a wing based system like virgin galactic? they also have different business models. virgin galactic has a specific business model. go up, come back down. blue origin wants to do civilian spaceflight but it is also in the other launch business. it wants to compete with spacex and boeing and lockheed. it wants to do its own internet based -- space-based internet. it does not have as focused a business model but trying to

compete in the big-ticket contracts. it was vying with spacex for the lunar lander for 2024 but did not win. that is the difference between the two. kailey: so glad you mentioned spacex because all i have been thinking about is the picture i saw the elon musk standing barefoot in a kitchen with richard branson at 3:00 a.m. before the flight. clearly a billionaire bromance. elon musk will eventually go up on a virgin galactic spaceflight. when could that happen? ed: early 2022 is when they will officially start commercial trips. they sold 600 tickets at $250,000 a piece. they only have a couple of spacecraft. they would have to do 100 launches in the first year to satisfy the original lift. throughout 2020 they were taking

$1000 deposits to hold your place. it is going to be a long time before they launch with frequency. even though existing ticket holders are going to be waiting a long time i think it helps to befriend with richard branson. kailey: i feel elon musk is near the top of the list. ed ludlow, thank you so much. get out of that heat. i want to talk about elon musk for another reason. he was at a course in wilmington, delaware defending tesla's to billion-dollar acquisition of solarcity. he said it was not a bailout of the solar provider. he responded to a question from his own lawyer saying he definitely did not have any sway over the board when it approved the deal. the plaintiffs have argued he did exercise control for his own personal benefit. also, elon musk said he never wanted to be the ceo of tesla he

just had to be. very interesting story to follow. coming up, another interesting story today. the ecb's strategy shift. our exclusive conversation with christine lagarde. that's next. this is bloomberg. ♪

♪ kailey: this is "fbloomberg markets." i am kailey leinz. christine lagarde says they should prepare for new guidance on monetary stimulus and fresh measures could be brought in next year. she caught up with my coanchor

francine lacqua over the weekend. >> we have a framework. we have a new framework that is unanimously approved by the governing council and we are going to look at, as we always do every six weeks, looking at the circumstances, look at what forward guidance we need to revisit. we are going to look at the calibration of all the tools we are using to make sure it is aligned with our new strategy. and i think given the persistence we need to demonstrate to deliver on our commitment, forward guidance will be revisited. francine: on july 22, it was always a big meeting but is it a bigger meeting because it is not technical change? >> it is going to be an important meeting because number one, we are going to communicate differently. what analyst experts,

journalists are going to see is a slightly different presentation of our monetary policy decision and i hope it will be clearer, simpler, crisper, to the point and as little jargon as possible. two, there will be forward guidance review because we have to align with the strategy review we completed. my sense is we will continue to be determined by maintaining favorable financial decisions because we want to support this recovery. there will be interesting variations and changes. francine: when is the right time to talk about an exit strategy? >> not now. [laughter] now is not the right time because we are still forcefully delivering under these

exceptional circumstances using exceptional tools which is the pandemic emergency purchase program. i expect to last at least until march. kailey: that was francine lacqua speaking exclusively with christine lagarde. for more we are joined by francine. she is back in london after her harrowing journey to venice over the weekend. clearly it was well worth it to get this interview from christine lagarde. what should she say that surprised you the most? -- what did she say that surprised you the most? francine: it was not the toughest assignment let me put it that way. with the review changes is she has more tools to play with. put simply, we had that last thursday where we had the press conference. it was more difficult for the market to reconcile by the fact

inflation can be above 2% and they can see through it without parameters. but the president going on to say that doesn't shift their view of when they will normalize monetary policy. yesterday it was clear it gives them a lot more room to maneuver. july 22, and this is why most of my interview was on the 22nd at that meeting, was to figure out if it was a technical adjustment or if we could have something more substantial for the markets. it seems the second when she answered. kailey: 10 days to go. we will be counting down until we get that. when you spoke with her she talked about what comes post march 2022 when the program will be over and she said it could be followed by a transition to a new format. do you think we will get clues on when that new format is or could be? francine: she was very clear in

the interview that the markets will be guided through it. she says she is not worried they will be taken on the wrong foot or not communicate clearly. it gives them more room to maneuver. march 2022 was seen as the linchpin where a lot of these things put in place by the ecb could be phased out. if you change the target, even if it is not by much but you are allowed to go beyond the mandate, first of all, it shuts down a fraction of members in the eu that could have gone against what your time to do. it empowers you to do more. remember, and i think this goes back to what we could see march 2022, it should be a less jargon heavy ecb. she wants to communicate more simply and with people on the street so they know if the mortgage is going up or down. kailey: investors looking for

communication as to when a possible exit may be appropriate. i loved her answer where you said when is it time and she said, not now quickly. what does the ecb need to see for it to be now eventually? francine: well, hopefully inflation at 2%. mario draghi has missed the target for all his tenure at the ecb. if you look at what the ecb has been trying to do, it is trying to reach --before it was below 2% and now it is at 2%. she re-explained to the interview but i also suggest you listen to mario draghi in 2016. the 2% is meant to be equilibrium. you have inflation at 2% and the economy kicks along nicely. if they can keep that stable 2% for a little bit, maybe that will comfort them in the fact

they can get away with some of the tools and measures. you don't exactly know what delta means or what variant is around the corner and the impact on growth and inflation. kailey: still a lot of uncertainty. thank you to francine lacqua my coanchor. i will see you at 5:00 a.m. eastern. it was a great interview. they didn't just talk about monetary policy but the digital euro, climate, and green bond. still ahead, countries across the globe are urging caution as the delta variant spreads. we talk with senior research associate at johns hopkins school of public health. this is bloomberg. ♪

♪ kailey: this is "bloomberg markets." i am kailey leinz. boris johnson today warning people to stay vigilant as he lifted remaining restrictions. >> this pandemic is not over. this disease, coronavirus, continues to carry risks for you and your family. we cannot simply revert instantly from monday the 19th of july as it was before covid. we will stick to our plan to lift legal restrictions and lift social distancing. kailey: that in the u.k. as covid-19 cases in the u.s. soared 47%. we are seeing rising cases in new york city tied to the delta variant. joining us is tolbert nyenswah

from johns hopkins school of public health. when you look at the u.k., you could be seeing as many as 200 deaths per day once restrictions are lifted due to delta. seeing the numbers in the u.s., does it tell you we reopened to early? dr. nyenswah: thank you for having me. i heard the prime minister and leaders are cautiously optimistic of lifting the restrictions we have in place that have kept people safe. reporting cases and relaxing restrictions are still the main concern. kailey: let's talk about the science. eric adams, democratic nominee to be mayor of new york city, said he would recommend

vaccinated residents wear masks in indoor public settings. that echoed what we heard from los angeles. does the science tell us that may be necessary? dr. nyenswah: all the measures that we can take to stop this outbreak are essential to do that. the fact of the matter is cases are still being reported, we are still dealing with the delta variant that is more transmissible. you can see a strong correlation between states that have on vaccinated cases --unvaccinated cases. you see that among 99% of the people who are unvaccinated are getting the variant. they are still reporting high cases and if you see the

vaccination rate is below 40%. kailey: as dr. fauci said just yesterday it seems those pockets are highly politicized people who do not want to get the vaccine. when it comes to the vaccine at the number of doses people have, israel is going to offer a third covid-19 vaccine shot to those with weak immune systems. what are we going to know if all of us who are vaccinated are going to need a third booster shot down the line? dr. nyenswah: the data still needs to be studied. clearly we need evidence and make that decision. what is recommended right now is that people take the vaccine because it is one of the most

preventative tools we have right now. tell their citizens to get the vaccine. kailey: let's talk about -- we are all looking ahead to fall in the start of the school year and there is the push to get students vaccinated. is it unsafe for students to go back to in person learning if they do not have a shot? dr. nyenswah: we recommend safe schools and by safe schools they have water sanitation, hygiene program. vaccination is still optimal. whether it is parents, students, teachers, caregivers. we should have robust programs on campus.

check for community spread where localities are still reporting cases which will ensure we do everything possible to get the transmission rate down. kailey: thank you to tolbert nyenswah. quick check on the markets. sitting at record highs again on the s&p 500 with banks leading the way. ahead of that yields sitting at 1.36%. stay with us. this is bloomberg. ♪

(announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs

and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

mark: i am mark crumpton with first word news. british government advisors say england will face multiple quote "major risks" after restrictions

are lifted. they include hospitals coming under pressure, a new vaccine resistant variant emerging, and as many as 200 covid-19 deaths per day. here is prime minister boris johnson today. >> this pandemic is not over. this disease, coronavirus, continues to carry risks for you and your family. we cannot simply revert instantly from monday the 19th of july as it was before covid. we will stick to our plan to lift legal restrictions and lift social distancing. mark: the data suggests the picture could be far worse since the public abandoned basic precautions such as wearing face in crowded spaces. world hunger probably surged to a 15 year high in 2020. the united nations says the pandemic occurred access to food

and wages. as many as 811 million people were under nourished in 2020. new york city's crowded commutes are thinning as the pandemic changes how many people work. fewer are using cars and mass transit to get to their offices which is causing concern for the transit providers. before covid-19 struck 20% of the city's workforce, or one million people, came from the suburbs. that could lead to staff and service cuts. global news 24 hours a day on air and on quicktake by bloomberg. powered by more then 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪

amanda: i am amanda lang. kailey: i am kailey leinz. here are the top stories we are following from around the world. didi drops while china slaps ipo constraints on company's speaking about lifting restrictions. the eu will push for a controversial digital levy. we have the latest from the meeting of global finance ministers. msp's megamerger. securing medicare and medicaid secondary payments going public through one of the biggest back mergers. that will give them a value of $32.6 billion. we speak to the ceo john ruiz. amanda? amanda: this week when we expect

to see some earnings delivering what may justify current market valuations we have sideways action for the market. techs not adding much. the s&p is 500 but leading by the financials. real estate and communications doing well. negative act and from -- action from energy but the price of crude at very high levels with concerned about what comes next thanks to opec. it will be earnings we are watching and we will have more. can financials deliver on what their valuation promises and is now the time to buy financials at all? some analysts saying there are other reasons to own financials. for what it's worth on the story you alluded to, bytedance in

flux as it is asked to review its own authorities to deliver on compliance in order to get closer to an ipo. that is something investors will be eager to see but this is part of the bigger picture around data security. kailey: the bigger picture of the crackdown china is putting on companies looking to lift ipo in foreign markets. you're talking about bank earnings tomorrow. that is an important question because a lot of the major investment banks have gotten massive windfalls from the chinese companies they have taken public in the u.s. if that goes away, that revenue also goes away. it also ties in together with the big bank results. amanda: really interesting angle. we are also watching didi. now watching as it is ordered to

pull 25 apps for mobile stores. dave wilson digging into that on the stock of the hour. what is happening? dave: the shares are just above the low they set last week. i should say the american repository. it is $4.4 billion initial sale from a week and a half ago and it has been one thing after another. first the government investigation of data security, then the didi app gets pulled out of the app stores, now you have 25 more apps that are gone. you put it all together, i mean, it is clear that this company -- if they had perhaps gone the way of bytedance, especially the wall street journal saying they held off on their offshore sale, basically the focus on data security which we have reporting

on might very well have been a different story. but we are seeing losses for a number of chinese companies that have come public in the u.s. this year. didi not alone on that score. you think about tencent, music entertainment, the chinese government is going to force them to give up exclusive deals for their streaming service with music labels. you put that altogether and it is part of the bigger picture. you can see that with the nasdaq, golden dragon index here in the u.s. certainly down from the peak in february at a time when if you look at u.s. initials, they are holding their own. kailey: we will continue to follow. thank you today wilson. amanda: coming up, the g20 backs of global deal. what lies ahead as negotiators rewrite decades of tax laws. joe thorndike joins us next.

this is bloomberg. ♪

♪ >> we endorse the key components on the allocation of taxing rights on international enterprises and the minimal effective corporate tax system. >> these large companies cannot be set apart from the efforts we all need to make to fund, to pay the additional cost due to the response of this pandemic. >> we are getting rid of this

race. this is clearly a tax revolution. >> i strongly believe 15% is not enough. we should do more. >> we continue to try to understand the reservations that countries have that have not signed on. in some cases i believe they can be addressed in the run-up to the leaders summit in october. kailey: those were some of the finance ministers we heard from over the weekend discussing the global tax deal. the eu said it would

postpone its push for the l evy. we welcome joe thorndike. if i asked you to put money down and bet on whether this thing actually comes to fruition, what would your bet be? joe: the smart money is always against these big, ambitious changes especially trying to change a taxes system the basic rules of which have been in place for a century. a change is going to require a buy-in from hundreds, or at least 130 countries to start. the chances of something like that actually showing up a pretty low. i would bet on inertia. amanda: having said that, there is, one could argue, the change in town. we have established what you are madame, now we are just talking price. not only are they agreeing on the principal but some say we should go further. joe: i don't want to downplay this too much. this is a significant change. a lot of countries have signed onto something, right? we have i think some important countries to have signed on like china which was expected to be

dragging its feet. i think there is more reason for optimism that there used to be and the u.s. is leading the charge and that leadership is important. i do believe it is important -- there is a shot for this. yes, they are negotiating the price but that could be important. ireland is one of the countries dragging its feet. maybe there is not much difference between 12.5% and 15% but there is a difference between that and with the u.s. is looking at which is 21%. kailey: talk about why countries like ireland and hungary are opposed. their rate is lower but what does history tell less about what happened to capital flows where companies want to be doing business with the tax policy. would we see a huge wave of money coming out of countries like ireland if we were to see a 15% minimum? joe: there are a lot of things that factor into a company's

decisions about where to organize their operations. i think the competitiveness issues here cannot be ignored and certainly countries like ireland are not ignoring them. if a reformer to make its way through and become the law of the globe, countries like ireland would pay a price for that to some degree. how much is unclear but it is a real concern. amanda: put this in the context of some of the changes again. almost philosophical in nature happening on american soil. last week it contains the sweeping review of how existing laws, to be fair, will be applied by regulators but certainly a change in town. could the g20 agreement be seen as a lever on a domestic agenda? it may be hard to get through congress but it as the catalyst

to get other work done. joe: absolutely. the biden administration is enthusiastic about this minimum tax. they are hoping global action toward the minimum tax will make it easier to pursue their own agenda for higher corporate tax rates in the u.s. it will be an easier sell the congress to say, this right is going to look better if the rest of the world is 15% or higher because the u.s. would like to see the minimum higher. i think there are still questions there is a domestic agenda which is part of the problem. republicans who might be open to certain pieces of the reform package are wary of the way it might be leveraged to advance the biden administration's larger tax agenda. kailey: we are talking about the global minimum tax and then the digital tax the eu has said we will put aside for now why we try -- while we try to get this done.

if that does eventually become a reality, what are the consequences of that? joe: there are certainly many u.s. companies who would love to see digital taxes shalt forget. -- shelved for good. we have to see how the definitions are drawn. the devil is going to be in the details but not necessarily right now. it is not obvious how american businesses are going to greet these reforms. some companies are likely to welcome these tax reforms, this shelving of the idea. other companies don't care that much and are going to be wary of other elements of the package. that is the problem. you cannot expect to have business line up a one-sided say, this is great. some companies may be but other companies will be reluctant to get on board i think. amanda: great to have you with us.

joan thorndike director of the tax analysts tax history project. johnson & johnson report from the washington post suggests the fda may be close to issuing a new warning on j&j's covid vaccine. we are watching the stock for the reaction. you can see it on your screen. we will continue to watch it and follow through on this expectation the fda may act with the new warning. kailey: coming up, msp recovery with the merger with lionheart. john ruiz with msp is with us next. ♪

♪

kailey: this is "bloomberg markets." i am kailey leinz with amanda lang. looking at the biggest business stories right now and liberty mutual agreed to buy auto financials for $2.3 billion cash. that is a 200% premium to the closing price. the deal will give liberty mutual 3400 independent agencies in 33 states. nordstrom is trying to boost its appeal among younger shoppers. they are investing in one of britain's best known apparel brands and several other labels owned by a-sos. nordstrom will become the only brick-and-mortar presence for the brand. elon musk said he turned down wall street jobs to focus on wall street. he was questioned by his lawyer today in wilmington, delaware about his company's acquisition of solarcity.

he founded a company that eventually became paypal and made his first million when paypal was sold to ebay. that is your bloomberg business flash. i want to take a quick take on where the markets are because it is a massive week. cpi data coming up tomorrow, ppi wednesday, and we also have bank earnings. j.p. morgan and goldman sachs kicking off tomorrow morning. s&p 500 at 43.78 and the banks are leading the charge. rallying for percent on friday. in the bond market we go nowhere on the 10 year yield. just shy of 1.36% after a $38 billion 10 year option we got earlier today. investors not too pleased -- excuse me, not to upset about the supply takedown. amanda: one sign of life

is over at msp. it will go public through the merger with lionheart. ceo john ruiz is with us. great to have you with us. let's start with what this brings to msp. as we know, you recover medicare, medicaid funds. what is the benefit of the public listing for you? john: the benefit is the public awareness number one. the government is losing billions and billions of dollars when health care costs are being shifted to it. in the words of an appellate judge, the taxpayers are fronting the business. when people go to the doctor they are not supposed to use medicare or medicaid beneficiary cards when they are involved in car accidents, slip and falls, and workers compensation. we discover these instances and

converts them into recoveries. currently we are sitting on a book of over $50 billion in billed amount and it is growing quickly. since the letter of intent was signed with lionheart we have actually started to grow at a higher pace than we expected. kailey: interesting. john: the law has been established very well. we won at the court system. because we established the right to own these claims we felt it was an opportune time to take this public. kailey: why did you do so through a spac instead of traditional ipo, especially when spacs have seem to fallen out of favor? john: i think the life of a company is with the company does. markets change. the fact that the spac market is going through a transition does not really bode for what the successes going to be of the company.

we feel comfortable with our company. it is transparent because you can look at the civil dockets and the civil dockets and you know what we do. it is one of those companies where you can visually look up public documents and understand what we do unlike some other companies that is difficult to look at. because we have done so much due diligence in the last six to seven years we have done due diligence by every major law firm, every major health plan. we felt that was the right opportunity for us. kailey: i mean, so people understand, you are an arbitrage. you take a cut for reclaiming money. would you agree you should not be in business or this money should not go astray? is that not a risk? john: no, it is not a risk because this is a perpetual issue. what happens in the health care industry doctors and hospitals

are set up to provide health care. they are not set up to provide the services we provide which is to figure out who the correct payer is. in every case there is a new set of circumstances to determine who the payer should be. we have had this historically, we are going to have a perpetually, and what we are doing is realigning the way the system is supposed to work. but even if it works the way it is supposed to work, there is still a huge disparity between what the government pays with the people should be getting paid. the better the system becomes, the higher the profitability for msp. it works the inverse. amanda: thank you, john. ceo of msp recovery, pretty big deal with the merger with lionheart. one last check at j&j. we do have reports from the washington post the fda may be close to a new warning on their vaccine. this related to rare, but

occurring, autoimmune side effects related to guillen barre syndrome. kailey: right now it is down 3/10 of 1%. not a massive downside but something for investors to consider. not just investors but those who have received the one-shot johnson & johnson shot. amanda: that is so true. that does it for us for now. this is kailey leinz and i am amanda lang. thank you for watching. ♪

in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. so many people are overweight now

and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat, all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours.

mark: i am mark crumpton with bloomberg's first word news. the top u.s. commander in afghanistan relinquished his position at a ceremony today.

that takes the u.s. a step closer to ending its 20-year war there. another four-star general will assume authority for possible airstrikes in defense of afghan forces at least until the u.s. withdrawal concludes by august 31. california is seeing stress on some of its electrical grids which could trigger rotating blackouts. a raging wildfire in southern oregon has knocked out transmission lines and knocked out thousands of megawatts of power imports to the golden state. the national weather service said most of california remains under excessive heat warnings with highs set to top 100 degrees fahrenheit through the evening. the white house is stepping up its efforts this week to counteract republican laws that restrict voting. vice president kamala harris is in detroit today with local leaders to discuss republican-led bills that restrict voter access.