discussion. in just a few minutes, president obama will give his take. we have live coverage coming up. ♪ scarlet: good morning, i am scarlet fu. erik: i am erik schatzker. we are waiting for the president. the negotiations over and iranian nuclear treaty and perhaps the rapidly growing field of people who want to succeed the president in the white house, we will take you there live. scarlet: let's take a look at what else is making news here it we begin with the new ceo of deutsche bank who will be taking over a lender played by billions of legal costs. former ubs ceo john krein has been named to run europe's

biggest bank. shares posteds the worst performance among global peers. remember it was one of the great m&a houses before it was bought by ubs so a careful man, a considered man. he had stepped in to be the ceo of ubs during the darkest part of the crisis for them. a lot of technical stuff had to be dealt with, a lot of bad assets had to be dealt with. he did it bit by bit. scarlet: here is deutsche bank surging in europe and they are also higher in u.s. trading. barclays had approximately 180 financial advisors in the u.s. that managed about 56 alien in total client assets as of may 31. the deal is expected to be

afterted -- erik: dominating the country's party lostis ak t power. what now? >> present our --resident kirchner despite the claims of his prime minister that this was an epic success for the ruling party, it is clear it was anything but. the ruling party will have to lick its wounds. they will have 45 days in which they can form a coalition. thatost likely scenario is the nationalist mhp will get into be -- into bed.

the act party will rule without a majority in parliament and try to get agreements from other parties not to topple it in exchange for various legislation. whichever scenario plays out, it is likely we will have fresh elections. selloff on the stock market and bonds as well. turkish democracy is clearly alive and kicking and some -- some people think central-bank may raise rates. erik: thank you. stephanie: sears -- scarlet: sears posted a smaller loss, helped by eddie lampert's strategy of selling off smarter -- smaller parts. he is starting a real estate

investment trust that will buy seals stores and i them back. mcdonald's is climbing -- is declining less than expected. -- global sees their shares of -- mcdonald's have gained 2% through the end of last week. verge of a on the $12 billion deal. ge will sell more than half of its u.s. private equity lending business. areas management is looking to buy the rest. ge is looking to unload about $2 billion worth of assets from ge capital. scarlet: we are standing by for president obama news conference at the g-7 summit in germany. he has spent the past days meeting with world leaders. there he is, walking to the podium in bavaria, germany. our bloomberg international

correspondent is on the scene. what is likely to be the biggest issue coming out of the summit? >> it seems like everyone is on the same page in ukraine, continued sanctions unless russia changes its behavior. i'm interesting to see what president obama says. the internal discussions were about the u.s. dollar and the euro. there's a report from a french official saying that president obama said the demand or strength of the dollar was "a problem." the white house denied that report but within the last 20 minutes we had the prime minister of italy talking about how currency was very much a part of the conversation. listen very carefully to what president obama says about currency. as we all know from previous encounters with the president, he can move the dollar in a heartbeat and i'm excited to see

if he takes the bait. erik: doesn't he know better than to cave in under questions from ernest reporters like aurself on the currency at venue such as the g-7? eric, you missed a great opportunity for a insult. here is what president obama may want to do and why he may talk about the dollar, because there is confusion in the market. we have the white house denying the statement and we have matteo renzi talking about it. in some ways, president obama will have to talk about global growth, what the weakening euro and stronger dollar are doing, and what his overall position is now. in the past, the dollar has been so sensitive that even if the president of the united states of america has outsourced it to his treasury secretary. he can hide the hind that.

let's hope the nonalcoholic beer he had yesterday was actually alcoholic and he is still feeling the effects and traders can have a little bit of fun. scarlet: is hans nichols hoping for the president to be speaking off-the-cuff because he had to bring much to drink? >> there is a big back-and-forth on this. was the beer alcoholic or not? the white house insisted the president would never knowingly order a nonalcoholic beer. scarlet: i need to ask you about angela merkel's news conference. she discussed greece and that seemed to overshadow the proceedings of the g-7. -- a lotas all about of the attention about the media -- by the media has been about greece. in some ways, the other g-7 leaders that are not part of the eurozone -- erik: sorry to cut you off.

pres. obama: thanking chancellor merkel and the people of germany for their incredible hospitality at the g7 summit. i wish i could stay longer. one of the pleasures of being president is scouting out places ,hat you want to come back to where you do not have to spend all your time in a conference room. the setting is breathtaking. our german friends have been absolutely wonderful. the success of the summit is a tribute to their outstanding work. the g-8 summit represented some of the largest economies in the partners,in our g-7 we recognize our allies and closest friends. even as we work to promote the growth that creates jobs and opportunity, we are here to stand up for the fundamental principles that we state -- we

share as democracies, for freedom, peace, for the right of nations and peoples to decide their own destiny, for universal human rights and the dignity of every human being. i'm pleased that here we showed that one of the most pressing global challenges our allies stand united. to sustain the global economic recovery is by focusing on jobs and growth that is what i am focused on in the united states. friday, we learned our economy created another 280,000 jobs in may, the strongest month of the year so far, and more than 3 million jobs of the past year. at nearly the fastest pace in over a decade. we have now seen five straight years of private-sector job growth, 12.7 million new jobs created. the unemployment rate is near its lowest level in seven years.

wages for american workers continue to rise and since i took office, the u.s. has cut our deficit right two thirds. economy, america is a major source of strength. at the same time, we recognize that the global economy while growing is still not performing at its full potential. we agreed on a number of necessary steps. in europe, we support efforts to find a path that allows greece to carry out keyword -- key reforms. i updated my partners on our effort with congress to pass trade promotion authority so we can go ahead with tpp in asia pacific region. agreements with high standards to protect workers, public safety, and the environment. we continue to make progress toward a strong global climate agreement this year in paris. all the g-7 countries now put forward our post 2020 targets

for reducing carbon emissions and will continue to urge other significant emitters to do so as well. we will continue to meet our climate finance commitments to help other countries transition to low carbon growth. thee have done in the u.s., g-7 agreed on the need to integrate climate risks into development assistance and programs across the board, and access to risk insurance for helping countries respond to climate related disasters. building on the power africa initiative, the g-7 will work to finance more clean energy in africa. the g-7 remains strongly united in support for ukraine. we are continuing to provide economic support and the technical assistance needs as it moves ahead on critical reforms to strengthen its democracy. days,have seen in recent

russian forces continue to operate in eastern ukraine, --lating sovereign territory integrity. another example of russia's isolation, and every member of the g7 continues to maintain sanctions against russia for its aggression against the ukraine. it is important to recognize the russian economy has been seriously weakened. the ruble and foreign investment are down, inflation is up. the russian central bank has lost more than $150 billion in reserves. russian firms are virtually marked out of international markets. energy companies are struggling. russian defense firms have been cut off from key technologies. sosia is in the recession its actions in ukraine are hurting russia and the russian people. agree that g-7, we

even as we will continue to seek a diplomatic solution, sanctions against russia will remain in place so long as russia continues to violate its obligations under the minsk agreements. our european partners maintained continuet -- they will sanctions. the g-7 is making it clear that if necessary, we stand ready to impose additional sanctions against russia. beyond europe, we discussed negotiations over iran's nuclear program and remain united. iran has a historic opportunity to resolve international community's concerns about its nuclear program. our discussions with prime rock, the body of the president of tunisia, and the for thet of nigeria

chance to address the threat of my soul. -- isil. g-7 countries agreed to further work together to counteract terrorist efforts. joined by leaders of ethiopia, senegal, and the african union, we discussed how to maximize the impact of our development partnerships. we agreed to continue to promote -- through security and education. we will continue to work with our partners in west africa to get ebola cases down to zero. as part of our global health agenda, i'm pleased that the g-7 meeting major commitment to help 60 countries over the next five years achieve specific targets to better prevent, detect, and respond to future outbreaks before they become epidemics.

finally, i want to commend chancellor merkel to make sure the summit included a segment on expanding educational and economic caps on -- opportunities for young women and girls. increased technical and vocational training in developing countries, which will help all of our nations prosper. angela andhank the people of germany. allies and our closest stand shoulder to shoulder. i will take some questions, starting off with jeff mason of reuters. here, youour meetings mentioned greece in your opening statement. do you believe the europeans are being too tough on greece in these talks, and what else needs to be done to ensure there is a deal and there is not undue harm

to financial markets? frenchparate topic, the told reporters today that you said at the chief is -- to g7 leaders that your concern was the dollar was too strong. what did you say exactly and are you concerned? all, doama: first of not believe unnamed quotes. i make a say that and practice of not commenting on the daily fluctuations of the dollar or any other currency. with respect to greece, i think that not only our g-7 partners but the imf and other institutions that were represented here feel a sense of urgency in finding a path to resolve the situation there. what is going to require is greece being serious about

making some important reforms, not only to satisfy creditors but more importantly to create a platform whereby the greek economy can start growing again and prosper. greeks have to follow through and make some tough political choices that will be good for the long-term. i also think it is going to be important for the international community and the international financial agent these to recognize the extraordinary challenges that greece faced and if both sides are showing a sufficient flexibility i think we can get this problem resolved. it will require some tough decisions for all involved, and we will continue to consult with all the parties involved to try to encourage that outcome. >> do you think that will happen

before the deadline? pres. obama: i think everybody wants to make it happen in their working hard. >> thank you, mr. president. how frustrated are you that after you personally raised your concerns about cyber security with the chinese president betty massive attack seems to have originated from china. was the chinese government involved? can you give us your reaction to the fifa bribery scandal? with respect to fifa, i cannot comment on a pending case by our attorney general. i will say that in conversations europe, peoplein think it is very important for fifa to be able to operate with integrity and transparency and accountability. as the investigation and

charges proceed, i think we have to keep in mind that although football, soccer, depending on which side of the atlantic you live on, is a game, it is also a massive is this. it is a source of incredible national pride. people want to make sure that it operates with integrity. , since we keepes on getting better and better at each world cup, we want to make sure that a sport that is gaining popularity is conducted in an upright manner. discuss,want to because we have not publicly unveiled who we think may have engaged in these cyberattacks,

but i can tell you that we have known for a long time that there are significant owner abilities, and these vulnerabilities will accelerate as time goes by, both in systems within government and within the private sector. is so important that congress moves forward on passing cyber legislation, cyber security legislation that we have been pushing for. why over the last several years i have been standing up new mechanisms inside of government for us to investigate what happens and to start finding more effective solution. part of the problem is we have very old systems. we discovered this new breach in opm precisely because we have initiated this process of inventorying and upgrading these

old systems to address existing vulnerabilities. what we are doing is going agency by agency and figuring out what can we fix with better practices and better computer , and wherepersonnel do we need new systems and new infrastructure in order to protect information, not just of government employees or importantly,t most where there is an interface between government and the american people? this is going to be a big project and we are going to have to keep on doing it because state and nonstate actors are spending everything they have got at trying to breach the systems. it is nonstate actors that are engaging in criminal activity and potential theft. in the case of state actors, they are probing for intelligence or in some cases,

trying to bring down systems in pursuit of their various foreign-policy objectives. in either case, we will have to be much more aggressive and attentive than we have been. this problem is not going to go away, it is going to accelerate. that means we have to be as nimble, as aggressive, and as well resourced as those who were trying to break into the systems. justin think. >> thank you, mr. president. two things that were on the agenda. the islamic state, you said yesterday you had a meeting with prime minister cameron and assessed what was working and what was not. i want to know what is not working in the fight against the islamic state. minister wants to include additional military

personnel. chancellor merkel said she is happy to get fast tracked on policies. not, what does it say about your ability to achieve meaningful agreements with congress for the remaining amount of time in your office? latterbama: on the question, i am not going to hypothesize on not getting it done. i'm going to get it done because i think it is the right thing to do. isil, we haveo made significant progress in areas inack isil from which they have occupied were disrupted local populations. we have also seen areas, like in were they disappear from one place and they come back to another. they are nimble, aggressive, and opportunistic.

we willhe areas where have to improve is the speed at which we are training iraqi forces. where we have trained them directly and equipped them and we have a train and assist posture, they operate effectively. not, morrell, lack of equipment, etc., may underline the effectiveness of the security forces. we want to get more forces trained, equipped, and focused. the president wants the same thing. we are reviewing a range of ,lans for how we might do that essentially accelerating the number of iraqi forces that are properly trained and equipped and have a focused strategy and good leadership. when a finalized plan is presented to me by the pentagon, then i will share it with the american people. complete yet have a

strategy because it requires commitments on the parts of the iraqis as well about how recruitment takes place, how that training takes place. so the details of that are not yet worked out. >> is it fair to say that additional military personnel are part of the consideration? pres. obama: i think what it is fair to say is that all the countries in the international coalition are prepared to do more to train iraqi security thats if they feel like additional work has been taken advantage of your one of the things we are still seeing is in iraq, places where we have got more training capacity than we have recruit. s. part of my discussion with the prime minister is, how do we make sure we get more recruits

in? the answer is more outreach to sunni tribes. we have seen tribes that are not only willing to fight against isil but have rebuffed iso-. it is not happening as fast as it needs to. one of the efforts that i am hoping to see out of prime minister abadi and the iraqi legislature when they are in session, is to move forward on a natural -- national guard that will devolve some of the security efforts in places to local folks, and to get those sunni tribes involved more rapidly. this is part of what helped defeat aqi, the precursor of my soul during -- the precursor of my soul during the iraq war of

2006. if you have a short-term success, it is very difficult to hold those areas. the other area where we have got to make a lot more progress is on stemming the flow of foreign fighters. you will recall that i hosted a u.n. general security council meeting specifically on this issue. we have made some progress but not enough. we are still seeing thousands of foreign fighters flown into syria and oftentimes ultimately into iraq. and not all of that is preventable but a lot of it is preventable. if we have better cooperation, coordination, intelligence, if we are monitoring what is happening at the turkish, syrian border more effectively.

this is where we have been seeking digger cooperation with turkish authorities who recognize there is a problem but have not fully ramped up the capacity they need. this is something we have to spend a lot of time on. if we can cut off some of that foreign fighter flow, and we are able to isolate and wear out my soul forces that are already forces that are already there. by final point emphasized badi is the political agenda of inclusion remains as important as the military fight that is out there. if sunnis, kurds, and shia all feel as if their concerns are being addressed and that operating within a legitimate meetical structure can

their need for security, prosperity, nondiscrimination, then we are going to have a much easier time. the prime minister is very much committed to that principle but obviously he is inheriting a legacy of a lot of mistrust. he has had to take in a lot of political risks. in some cases there are efforts to undermine those efforts. we need to support those who were on the right side of the issue. colleen nelson. >> thank you, mr. president. andmentioned that the u.s. its allies has reached a consensus on extending the sanctions against russia. is there a consensus about what specifically the next step should be if russia continues to --late the minx agreement the minsk agreement? can you deter russian aggression

without a permanent u.s. presence? i would like to ask you about the court battle on your actions on immigration, do you think there is any more you can do from the people who now would have benefited from that program and now are in limbo? how do you feel your term ending without competition -- without accomplishing your goals on immigration? pres. obama: on ukraine, russia, and minsk, there is a strong consensus that we need to keep pushing russia to abide by the terms of the minsk agreement. we need to continue to support and encourage ukraine to meet its obligations under meant. that until that is completed, sanctions remain in place. aboutwas discussion additional steps that we might russia working

through separateness -- separatist, double down on aggression inside ukraine. those discussions are taking place at a technical level, not yet at a political level because i think the first goal here going into a european council meeting that is coming up is just going over the existing sanctions. i think at a technical level we want to be prepared. our hope is that we do not have to take additional steps because the minsk agreement is that. met. and i want to give enormous credit to chancellor merkel who was shown extraordinary stick to it of ness and patience in trying to get that done. beimately, this is going to

an issue for mr. putin. he has got to make a decision, does he continue to wreck his country's economy and continue russia's isolation in pursuit of wrong-headed desire to re-create the glories of the soviet empire. or, does he recognize that russia's greatness does not depend on iron lady the territorial integrity -- violating the territorial integrity of other countries. the cost that the russian people are bearing is severe. that is being felt. it may not always be understood because are suffering of state media inside of russia and propaganda coming out of state media in russia and to

russian speakers. but the truth of the matter is that the russian people would greatly benefit and ironically, one of the rationales that mr. putin provided was to protect russian speakers in ukraine. inside ofeakers ukraine are precisely the ones who are bearing the brunt of the fighting. their economy has collapsed, their lives are disordered, many of them are displaced. their homes name been destroyed. they are suffering. the bust way -- the best way for them to stop suffering is if the minsk agreement is fully implanted. -- implemented. with respect to immigration, obviously i'm frustrated by a district court ruling that now is winning its way through the appeals process.

we are being as aggressive as we to first and foremost appealed that ruling and then to implement those elements of immigration executive actions that were not challenged in court. centerpiece,, the one of the key divisions for me was being able to get folks who were undocumented to go through a background check, criminal background check, pay back taxes, and have a legal status. an entireequires administrative apparatus and us getting them to apply and come clean. i made a decision, which i think is the right one, that we should not accept applications until the legal status of this is clarified. i'm absolutely convinced this is

well within my legal authority, the department of homeland security's legal authority. if you look at the president, if you look at the traditional discretion that the executive branch possesses when it comes to applying immigration laws, i am convinced that what we are doing is lawful and our lawyers are convinced that what we are doing is lawful. the united states is a government of laws and separations of power. even if it is an individual district court judge who is making this determination, we have to go through the process to challenge it. until we get clarity there, i do not want to bring people in, have them apply, and jump oops only lot of h to have it deferred and delayed later. there is only one great way to solve this problem, congress

going ahead and acting which would obviate the need for executive actions. the majority of the american people i think still want to see that happen. i suspect it will be a major topic of the next presidential campaign. to push ascontinue hard as we can on all fronts to fix a broken immigration system administratively. we will be prepared, if and when we get the kind of ruling that i think we should have gotten in ahead andplace, to go implement. but ultimately, this is never -- this will never fully replace the need for congress to act. my hope is that after a number of other issues that we are working on currently get there will be some

conversations starting back up again, particularly in the republican party, about the short-cited approach they are taking when it comes to immigration. >> thank you, mr. president. more than 6 million americans may soon lose health insurance if the supreme court wins the challenge. a growing number of states are looking for assistance as they face the prospect that there residents may lose insurance subsidies, and their insurance markets may collapse. yet, your administration has given very little to no guidance on how states can prepare. what do you tell advocates who worry that the country could be thrown into chaos? pres. obama: what i tell state leaders is that under well-established precedent, there is no reason why the

existing exchanges should be overturned through a court case. thats been well documented those who passed this legislation never intended for folks who were going through the federal exchange not to have their citizens get subsidies. that is not just the opinion of me and democrats. that is the opinion of the republicans who worked on the legislation. the record makes it clear. and under well-established interpretations, approaches that have been repeatedly employed, not just by liberal democratic judges but by some ontive judges like

the current supreme court. you interpret a statute based on the intent and meaning, and the overall structure of the statute provides for. and so, this should be an easy case. frankly, it probably should not have even been taken up. and since we are going to get a ruling pretty quick, i think it is important for us to go ahead and assume that the supreme what mostoing to do legal scholars who have looked at this will expect them to. but look, i have said before and i will repeat again, if you infect fact you have a contorted thatng of the statute dos federal run exchanges not provide subsidies for folk who are participating in those

exchanges, then that throws off how that exchange operates. it means that millions of people who are obtaining insurance subsidies,ith suddenly are not getting those subsidies. many of them cannot afford it. they pull out. the assumption is that the insurance companies made when they priced their insurance suddenly gets thrown out the window. not justbe disrupted for folks in the exchanges but for those insurance markets in those states generally. it is a bad idea. it is not something that should twistedbased on a words andtion of four as we were reminded repeatedly, a couple thousand page piece of legislation. what is more, the thing is

working. what is bizarre is that we have not had a lot of conversation about the horrors of obamacare because none have come to pass. you have 60 million people who have health insurance. the overwhelming majority of them are satisfied. had ony effect it has people who already had insurance is they have an insurance -- assurance that they will not the able to -- they will be able to get insurance. the costs are significantly lower than our estimates of how low -- how much it would cost. health care inflation has continued to be at some of the lowest levels in 50 years. none of the predictions about how this would not work have come to pass. optimistic that the

supreme court will play it straight when it comes to interpretation, and i should mention that if it did not, congress could fix this whole thing with a one sentence provision. i am not going to go into a long speculation anticipating disaster. why not have a plan b? isaac: i want to just -- pres. obama: i want to just make sure that everyone understands, you have a model where all the pieces connect. there are a whole bunch of scenarios, not just with relation to health care, with all kinds of stuff that i do

wear if somebody does something that does not make any sense, it is hard to fix. fix.his would be hard to fortunately, there is no reason to have to do it. it does not need fixing. thank you very much. thank you to the people of germany and bavaria. you were wonderful hosts. that was president obama speaking in bavaria, theany, giving his take of news conference out of the g-7 summit. he said the country's stand together when it comes to sanctions on russia, they are wrecking the russian economy, and they will stay in place until vladimir putin lives up to previous treaty commitments. greece has been a huge issue here over at the g-7 summit. he talked about how the leaders

feel a sense of urgency on the crisis. the greek government must be serious about economic reforms, in addition to the various deadlines that the financial markets are obsessed with. he also talked about the cyber attack on the u.s. personnel office, which officials have said originated in china. the president says he cannot comment specifically but he is keeping and i on it. he talked about the health care currentlyws lay -- before the supreme court. he thinks it should be easy for the supreme court to rule that subsidies are legal. let's bring in hans nichols, on the scene and bavaria. the president spoke a lot on a different -- on a lot of different topics but one thing you highlighted were the comments he may have made or not made regarding the u.s. dollar. : the president flatly

denied that he made the comments that were attributed to him why a french official on the dollar. that was a clear denial that the president did. practice atakes it of not commenting on daily fluctuations of currency. "dailyhed it with fluctuations of currency." it is possible within the context of his denial he was talking about the long-term trend of the euro and the dollar, which it is well known, does affect macro economic forecasts. said,important things he he talked about the need for flexibility on greece and he talked about the importance for all the creditors to understand the hardship of the greek people. the latest unemployment we got was 25.6%. if anything, i heard the

president softening his stance on greece, or at least for the greek side of things, and urging creditors to be a little more flexible, a little more forgiving. scarlet: the creditors are being led by germany, the host country. compare and contrast the withdent's tone on greece what angela merkel said at her news conference. hans: there is not a lot of daylight between them, both are talking about urgency. to discount any eu statement you get on urgency and time running out. , gave arkel showed little bit more information, she confirmed a wednesday meeting tsipras. sorry if you cannot hear me, helicopters are flying low overhead. earlier you honestly are focused speaking in berlin gave an interview to a german newspaper,

suggested they flatly rejected the new list imf proposal -- the newest imf proposal. both appear to be positioning themselves quite far away. for the sake of the global economy, president obama said they need to come together and get this done. scarlet: thank you. joining us from germany following the news conference. angela merkel earlier saying there is not much time left for a greek deal. the president reiterated that creditors need to be flexible. we will have much more coverage of the g-7 summit, the aftermath, and the markets. ♪

♪ scarlet: welcome back. we are about an hour into the u.s. trading session to let's get caught up on all the action around the world.

mark barton joins us from london. we have not had five days of declines in the european stock markets since december. the ftse stands out. it is because it is in correction mode today. it has fallen 10% from its highs in the three, and months prior to april, the dax had risen by over 30%, making it one of the biggest gains in the world during that. . gainer. bank, the only there is a report that one of -- isllionaire backers of interested in one of the world shares program. -- look at the

shares, up almost 7%. the story of the day in this neck of the woods comes from turkey. the party winning the majority for the first time since 2002. i have chosen the lira against the euro. it has fallen against every currency today. the euro is up by 7.8%. the biggest one-day move for the euro against the lira since 2008. every single currency in the world is rising against the lira. julie, back to you. julie: a lot of over there surrounding the turkish lira. not so much drama in the u.s. when it comes to the overall stock market so we have to look for some individual movers are more action. take a look at the casinos. we have seen a lot of volatility

with the macau related casinos. on friday, they rebounded and that did not last long. this after wealth ours -- wells fargo, the june gaining revenue was down. vegas casinos are pulling back today. also taking a look at the airlines, in other volatile group which has mostly been trending downward is down once again. american airlines, delta, after a call we got out from raymond james that we are going to see a recovery that will be somewhat muted. we have talking a lot about capacity concerns and what affect that will have in pricing. even the one airline that was added to the favorites list over at raymond james, spirit, that stock is not getting a boost. it is trading downward 1.7% along with the rest. take a look at my bloomberg

terminal. you are looking at the year to date chart. this is the bloomberg index of airlines. 20% from the two bottom. we do not know if it will continue going down, and it is continuing to go down. it is more than 20% at this. . definitely in the bear market range for both airlines. scarlet: thank you so much. julie hyman with the latest on the u.s. market. the dollar getting big attention. you can see it right there, halfway through the chart. that is following reports that he bomb said privately that the greenbaum -- that president obama said privately that the greenback was too high. i did not say that and i make a practice of not commenting on daily fluctuations of the dollar or any other currency. scarlet: joining me now is

bloomberg economics editor michael mckee. whenever we talk about the white house, the administration, and the dollar, seems to be the spoiler trait -- boilerplate that they always retreat to. that goes back to the clinton administration. if you get long-term movements in your trade -- in a currency, it affects your trade. company decided this was not good for the economy and so the country put in a policy of, we do not talk about it. markets are still very sensitive to the idea that some countries may intervene in currency markets, and if you get the president saying a dollar -- the dollar is a problem maybe they will do something about it. they react. not good for people on the other side of trading and not

something the administration .ants to have happen her scarlet: they do not want to play such a pivotal role. the stronger dollar has hurt our trade balance. michael: it has. we have seen exports decline. it is a real problem for other countries when that happens, and they do not want to see a lot of volatility that will affect their market. the big concern has been with the fed raising interest rates, that will attract money out of those other countries and create volatility. the strong dollar reflects what people think the fed will do. scarlet: do people still talk about a currency war? michael: it really has faded in the sense that we are not seeing the competitive devaluations we sought in the currency wars of the 1930's. we see reactions as countries adjust their currency but it is

not a race to the bottom were a race 2-d value to gain an advantage, and that is what the g-7 said in their statement today. if people are doing things for their own invest -- domestic good affecting interest rates, it is ok. scarlet: thank you so much, our economics editor at bloomberg. the white house adding the president has made a point that week.obal position is too aming up in the next hour, big day for apple ceo tim cook. he was tweeting about it this morning. we will take you live to apple's worldwide development conference. ♪

it is 4:00 p.m. in london. pimm: welcome to the bloomberg market day.

grab investorsto from pandora and spotify. thelet: and well i do jane anju jainp asing ceo. imm: problems for distressed assets. we have an exclusive interview with iceland's prime minister. scarlet: good morning, everyone. i'm scarlet fu. pimm: and i am pimm fox. u.s. stocks down just a little bit, the dow jones industrial average down