all of the latest announcement from the worldwide developers conference, which is getting underway right now in san francisco. shares of deutsche bank jumped the most in two years following the announcement there will be a new ceo. the maker of guinness and johnny walker higher following a route or a billionaire accor is considering a takeover bid. ♪ olivia: good afternoon. i am olivia sterns. mark: i am mark crumpton. taking a look at the markets on this monday. stocks declining, extending a recent long. investors weighing the timing by the fed. they are also concerned about a possible debt default by grief. checking the board on your

screen, s&p 500 down by nearly half a percent. -- they are also concerned about a possible debt default by greece. it is composite index, down sharply at 5025. the dollar's decline is helping gold futures rebound from an 11-week low. right now gold higher right now, up about a third of percent at .80.1 iran says it will boost exports. nymex crude is now down over 2%, trading at $57.92 per barrel. olivia: good news for summer drivers. u.s. treasuries are rebounding drop, biggestest weekly drop since february. last week's cell yields all the

way from 2.1% to 2.4% on the 10 year. finally, mark mentioned currencies. showing you what is happening with the euro. pricing for the first time in three days as a selloff in european debt resumes. you do not see it on the screen ahead of you, but emerging-market shares dropped in the longest life in 24 years. also watching the u.s. dollar turkish lira exchange. trading at all time record low. this morning group of seven leaders meeting in germany say they are in agreement in the 10th situation with russ and -- russia and the ukraine. we aremerkel says " ready to intensify sanctions if the situation requires it." here is president obama. president obama: there is 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 minsk. that until that is completed, sanctions remain in place. olivia: the g7 a great sanctions will pay -- stay in place unless putin honors adimir peace agreement. strategystions about at ubs. the former ceo has been named to run germany's largest and. he is been on the board for deutsche bank that brings an end to the co-ceo for three years. deutsche bank shares posted the worst performance among global peers. banker, which you will remember one of the great m&a houses before it was bought by ubs. he was asked to step in to be the cfo of ubs during the

darkest part of the crisis during 2008 and 2012. a lot of technical stuff had to be dealt with. a lot of that assets have to be dealt with. he did it bit by bit. that is what he is thinking about a deutsche bank. of deutsche bank surged today. we will hear more later in the bloomberg market day. steeplefinance ball -- -- stiefel financial will buy our glaze. they managed 56 alien in total client assets as of may 31. the deal expected to be completed mid-november. olivia: global sales of mcdonald's still falling, but now less than analysts expected. that is seen as a sign of progress under the new ceo, steve easterbrook. analysts were looking for a drop of .9%. searsstruggling retailer posted a smaller loss in the first quarter.

the chain was helped i betty lampert. a strategy of selling off assets like the clothing business. he is now setting up a real estate investment trust that will buy sears store location and then leave them back. that is a look at the top stories we're following at this hour. olivia: apple developers conference just starting in san francisco. mark: adam satariano is outside the moscone he center with the latest. good morning. good morning. tim cook is about to take the stage where they will roll out three big and we are looking for. one is a new music service where customers can take $10 per month to get a full library of music. the second thing we will be doing is making new software available for developers to make for the apple watch, which

is a big deal because that has not been available on the watch so far. have not been as great as customers are used to on the iphone. in the end, apple is an iphone company. >> what are you hearing yucca what are people most expecting >> this is apple's biggest event for the biggest names. that gives you a sense of how passionate these people are. developers will be most interested in the tools for the apple watch. they wanted to build tools for the device. adam satariano joining us

live outside the muskogee center. joining us, bloomberg managing editor for u.s. company news. what are you expecting from the conference? >> i think the big news is apple beats. they made acquisition of this company into the headphone everywhere, but the most important thing they are getting from the acquisition is the technology they need to create a streaming music service that can compete with the likes of spotify, pandora. big focus ofa real this. it is hugely important market. you are spending a lot of time on your iphone or watch or whatever your device is listening to music. apple wants to make the experience more robust for you and the consumer. olivia: i am definitely one of those people that have moved downloading apps. i listen to music on spotify. no one does it anymore.

--le gets the majority overwhelming majority of the revenue from hardware devices. music is just a drop in the bucket. why is it so important to them? >> this is their developers conference. this is where thousands of software developers from around the world are coming together. make it easierto for you to create apps for hardware. they will not buy the hardware if there are not cool apps all over it. olivia: an incredible chart i thought earlier this morning. it shows only one third of digital music revenue actually comes through streaming. it is still a download game, where apple is the dominant player. whatis apple going to do? is it like a potentially in competing with spotify and pandora? is incredible.

the orange lines are downloads. >> what you will see is the orange will continue to trail off. more and more people will want you to surprise me. don't wait to me for town -- to download it. that is something apple is uniquely qualified to be able to do. they can say olivia really likes listening to that group, we will give her more of that. will thathardware, continue to drive the momentum for the larger screen iphones? absolutely. when you buy an apple device, you want to make sure it is cool, sleek, designed beautifully, but you are really not going to lose it if it does not have really awesome apps on it. including streaming music one. about: you know anything the term that apple is negotiating with music producers and record labels and how those contract differ from the revenues went at -- that spotify

and pandora has? >> the music industry does not want to get steamrolled by apple again. olivia: yes. is $.99, and then everyone sold the song for $.99. >> absolutely. it is the monster in the room. the music industry is pushing apple for the best possible terms. >> what about ios9? everyone is waiting for that. what will this mean for the company? >> just another indication of what is the latest upgrade to the mobile software that you have coming for us? and, will it be enough to separate it from the android operating system that is such a heavy competitor that you see on samsung devices? if there is a glitch or something you don't like about the iphone, and it really -- it really behooves apple to make those changes right now.

is it a generational thing, i said hardware versus software? >> you do not sell the hardware if you don't have the software. mark: nicely put. thank you. coming up, a shakeup at deutsche bank. we will talk to analysts about the problems facing germany's largest and. women: fifa's world soccer cup kicks off. why the scandal is making soccer one of its big right parties. the: we will look at what elections in turkey and mexico this weekend could mean for the growth of emerging market. . will speak to bill rhodes that and more when bloomberg market day continues in just a moment. ♪

olivia: welcome to the bloomberg market day. i am olivia sterns here with mark crumpton. we're joined by our reporter at the apple developers conference in california. another big day for apple. you can see them of fraud in mr. crook as he takes the stage. >> waiting to see whether or not apple will unveil new details of the streaming service. will go back to the event as soon as we can. headline coming from the event. julie hyman with a look at the right now. you were looking at stocks today. they are actually in the green on this monday. thee declined far outweigh

gains come even felt the major averages are not that deeply in the red. tesla one of the stocks we are watching. far outweighclines the gains. the stocks reading around 257, up i about 3%. the analyst more optimistic than he believed the broader market is about the timing of an x launch. it is an suv tesla is working on. working on the third quarter launch, even if the rest of the market is not. watching go pro today. the only thing we could find is a note from cleveland research predicting the company shipped 1.5 million units of the cameras in the second order, and that will vote well for earnings. sure is not up that much, up about three quarters of 1%. also watching barnes & noble with a variance, and that mentioned barnes & noble.

we are seeing it's been off the college bookstore unit. though shares are up 2%. something all of those stocks have in common, even though the face of it they are in different business. take a look at the bloomberg terminal. when you see stocks in the green, you wonder if something is exacerbating the move. when stocks are heavily shorted, you can see short covering at times make the move bigger. tesla in the yellow, go pro orange, barnes & noble green. short interest as a percentage of the overall flow. tesla and go pro about 20% of sold short. -- barnes & noble about 15. what that essentially means is in the broader market among many market participants they are not optimistic about the prospects. and you get a little good news, sometimes those folks cover the short. olivia: julie hyman digging

deep. now a look at the top stories. we start in south carolina where a grand jury has indicted up armor police officer after the shooting of a black man that was recorded by a passerby. the north charleston police department fired michael slager after the video "like in april. the video shows laker firing eight times as walter scott was running away. -- michael slager after the video went viral in april. a new law to record -- to require them to put in a locked ox or disable them. activists have tried and failed is a lands guy protection or a new york state two murderers escaped from her present by cutting through a steel wall and still remain on the loose. authorities are investigating how they obtained the power tools used in the shawshank redemption style breakout.

cuomork governor andrew is offering a 100 thousand dollars reward for information leading to the men's capture. that is a look at the top stories at this hour. deutsche bank overhauling management naming john cryan as the new ceo with -- replacing anshu jain. mark: this comes shortly after the investment bank was fired for the role in manipulation. christopher wheeler spoke to bloomberg, and he outlined the specific challenges to germany's largest tank. --the propolis deutsche bank the problem deutsche bank has, they have not got a core business to follow back on domestically, meaning retail banking. deutsche bank has always had to build an investment bank, a very strong investment bank, but one that has to have so much more capital. you allwe will bring

the latest on the changes at deutsche bank as we learn more and more about them. a lot of interesting things going on. mark: a shakeup, deciding they would leave early, leaving room for mr. cryan. cryan has the experience, but as the libor scandal would indicate, still a lot of problems in damage you will find himself nothing into when he's takes over. olivia: they have new regulation. they have to raise a lot more money. they have to boost your capital. they do not have a business that is the base for core profitability. anshu jain who was with the bank for a very long time, i think we have a nice visual to show the career trajectory, he was trying to torn -- turned deutsche bank into the goldman sachs of europe. he really filled out fix income trading. all of the analyst notes i read about the changes say what deutsche bank will need is a

change of prodigy, not just a change of leadership. so far, we are gotten very few cryan. from julieohn analyst say maybe a near-term buy but long-term gain. they want to see if john cryan can change the overall strategies that was put in place earlier this year, or whether or not it is just a change. change in strategy also mean a change in culture? we will see as he takes over. olivia: we will bring you the latest on everything happening at deutsche bank. at theim cook speaking worldwide developers conference at the muskogee center in san francisco. among the highlights so far, the new operating system update will x el capitan. --speaking at the muskogee center. ♪

olivia:olivia: welcome back to the bloomberg market day. it is game day for the u.s.. in winnipeg tonight, they will play all still you in the women's world cup. the women's world cup is organized by fifa. has made the global growth of women's soccer one of its many goal. reporting on the progress has made. likes to point out interest in the women's game has grown since the first world cup 24 years ago. >> fifa likes to point out interest in the women's world cup has grown. women's soccer still faces a lot of challenges. one of the biggest is money. blatter has talked a lot about

of investing in the game, but of the billion dollars am only 1% of that was set aside for developing women's soccer. one of the best layers in the world is only 29 and been on half of a dozen teams, half of which has folded. women's teams continue to have a attracting sponsors. sponsorship valued at $5.4 billion. compare that to the men's game. off thee more than $461 2000 13 world cup alone. that is just one of the and womenbetween men soccer. there is $15 million of poor grabs in the 2015 women's world cup. last year's men's world cup almost 40 times that. while fifa has tried to world cup globally, and varies widely. a chance for women soccer to win over new band.

to have they seem hardest time winning over is members of fifa itself. they recently surveyed the membership, and only 5% said women's soccer is an attractive area for investment. our reporter will be watching the game and joins us now. i am psyched with your story choice. tell us how it is set up. no,he short answer to but better than 24 years ago. it was only in the early 1990's that someone came forward and said u.s. the international organization overseeing soccer at large pay attention to the women's game. they are supposed to get 15% of the revenues here, but so much of that is tied into tv and sponsorship. olivia: 5 million versus 479. mark: any regions doing this

right? >> if you go to europe, sweden and france. these are professional teams working to create equal to the women's game. you look at where the money is being end, there has been a lot of news about how that is the spread out around the world. africa, south america happening a little bit. very surprised about nigeria. thank you. i am signing off now. great to be with you. in the next up half-hour, the party of the turkish president loses its majority in parliament. we will look at what the next announcement could mean for the country's economist. markets a moment. ♪

with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills, manage service appointments and find answers to your questions.

you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount welcome back to the bloomberg market day. i am mark crumpton. going to the top headlines at

this hour. just a short time ago the greek finance minister said his company cannot get a deal with -- can get a deal with creditors in one night if everyone sits down to negotiate. she spoke earlier in berlin. -- he spoke earlier. >> what we need is an agreement quickly. we need to avert an accident that will not be an accident. history will not take it down as an accident. as ary will take it down failure of the political class of the european union. mark: varoufakis has said the great debt burden needs to be linked to growth. debt burden needs to be linked to growth. travel up almost 80% from a year ago. north american airlines will account for half of that. the reason for that soaring profit is the work you will prices and a stronger u.s. economy. build consider whether to

the largest ever numeral body jetliner. the plane would replace the void left in the commercial aircraft market when bowling quit making the 700 87 a decade ago. an executive tells bloomberg airlines want a plane that is larger and flies larger than current lines. the key note address is underway at the worldwide developers conference. tim cook has been on stage as the software cheap. so far the new products include ios9.l capitan and adam's live outside miscone center with more. tim cook and other executives have been on stage for about half an hour now. the main thing we are been talk -- they have been talking about is improvements to the macsoft where system. it is no big update, just a lot of things to improve. there have been complaints about it over the past year. they are just now starting to talk about the latest update i

ios software. apple focusing mainly on fixing bugs in soft wear. no big announcement about music or other big roddick. these events typically go for about two hours. joining ussatariano live outside the miscone center in san francisco. stay with bloomberg television. we will have more coming from the speech from tim cook. coming up in the next half hour, g-seven leaders are increasing the pressure on greece to reach a final deal with editors and avoid a potential default. -- with creditors. the maker of guinness and johnnie walker are higher today that the a report billionaire backer of anheuser-busch inbev is considering a takeover bid. reported, the apple worldwide developers conference

is underway in go. we will continue to bring you live reports with the latest announcements. emerging market stocks dropped for any leaven they come at longest losing streak in 24 years. this follows elections in turkey and mexico over the weekend. g-7 putting more pressure on greece. rose -- bill will rhodes, and senior vice-chairman at citigroup. thank you for joining me. in turkey, the president islam is based justice and development party. now it needs a partner if it is going to govern. what message did the people of turkey sent to him? >> i think one of the things they sent to him is they are not so hot on opening up and redoing the constitution to create a strong presidency. he would like to go back to the time of the man who founded the modern turkish republic where

all of the power was in the presidency with him. this was a personal defeat for him. he had state his credibility future on that. what was amazing here really is the turks came out, the turkish people came out in large numbers, particularly the kurds. i think for the first time of turkish party was able to exceed the minimum 10%. they got 79 perceived -- 79%. this makes a real difference. that was another added surprise. mark: the stock market and in stem bowl fell 8%. the potential loss of one party government in turkey, is that scaring investors ? investors knowk what will happen. whether his party will try to rule as a minority party or

tried to have a coalition. it has created tremendous uncertainty. he has been pushing for central bank not to raise interest rates , not to raise inflation. growth has plummeted, as has exchange rate. in many years. i think this uncertainty is what is driving everything. the government will have to very quickly whether they want to rule as a minority party, and tried to get support from other parties issue by issue or tried to form a coalition. lastly, the election results, will he have any impact on u.s.-turkey relations? >> i think they're bound to going forward. the administration of being very careful because they do not what the outcome will be and what changes in policy, because obviously we have this whole and what turkey

will do there. also, the relationship with turkey with russia and the pipeline. there are a lot of things up in the air. there are also elections in mexico sunday. there was a victory by a man elected governor of one of mexico's wealthiest states. send to the victory established parties, and what message did it send to the president and his ruling party? message it sent is the populace is getting fed up with the traditional two-party arrangement. there are three major parties. , the old party that is ruled the country on and off with the past 70 and 80 years. he is from that party. a moreere is conservative party. the there is the prd, leftist party. they have always split up the boat.

not strongly ahead. for the first time you have an independent candidate who is not part of the three parties who wins in one of the most important states in mexico. mark: let's talk about greece. .egotiators are in brussels those talks have been deadlocked for a week now. is there any room for compromise here? discussed i have this. this goes back a very long time. for you and i, it has been going on five years. basically where it stands today, and i have set it on other programs, the achilles heel is the banking system, and it has been. the banking system is being kept alive by moneys from the european central bank, because the outflows continue very strongly. without a functioning banking system, everything collapses. that is one of the cards that the so-called troika, brussels,

ecb holds. on the other hand, the greeks have decided to put a little kingman ship in this. professorbaucas was a of economic gamesmanship. --the president was a professor of economic gain mentioned. is basically in a sense of technical default. are trying tos put the pressure on. at the end of the day the greek people, 75-80% do not want to leave the eurozone. i have said for some time i thought there would be a technical default. i think at the end of the day you will get some sort of arrangement. will not clear the party not have to go for a referendum or even new elections. i think the greek people, when they elected separatists --

them as their head went for a government that was not going to touch pensions, not going to touch labor and not to move ahead on privatizations, project lead pension fund reform. if he has to give on these things to get the 7.2 billion euros to make his payments, i think he may be forced to call a referendum. mark: the shakeup at deutsche ryan named the new chief executive. he will replace anshu jain and juergen fitschen. the bankshares are on the rise on this monday. talk to me about the timing of this. why not gekko >? >> it was only a couple of weeks ago they announced the real organization. here they are a couple of later en, the co-ceosch

resigned. they felt they did not have the support of the shareholders, or maybe even the supervisory board and felt they should step down. what they have done is picked an experienced anchor on the board who speaks german who is heading the audit committee and on the risk committee. what the risk in actuality will be is job cuts or cutting job expenses. that is the history of the individual who before he joined the board at deutsche bank had where they made a lots of reforms. i think we will see more of the same with deutsche bank. deutsche bank is a standardbearer of the german financial system. it expanded rapidly. the problem is, they did not increase the capital accordingly, and that is one of the tasks anshu jain and

juergen fitschen had to grapple with and has not worked out as they would have liked. mark: bill rhodes, former senior adviser at citigroup, thank you for joining us. >> you get more in a short time than anyone else i know. --k: straight to making breaking market news. been watching the developers conference that apple has been holding with tim cook. talking about the latest updates to the company's operating system. adam satariano telling us there is nothing revolutionary here, a lot of small tweaks and improvements to apples various software and operating system. on the see behind me and screen we are seeing the stock fall to the lows of the session. it is unclear exactly why.

there were not really expectations on the part of analyst for something big or dramatic. unclear exactly what is going on. the stock is only down one point 25%. in the news we are looking for is something to do with streaming. pandora shares has belted a low of the session as well. watching apple shares go down. pandora trading lower by nearly 4%. there is speculation that you will see pandora soffer tickets there is a lot of competition among the streaming services now. julie hyman joining us from the breaking news desk. thank you. standing by for more developments from the apples developers conference as miscone center the center live in san francisco. we will bring you the latest as we continue in just a moment. ♪

mark: welcome back to the bloomberg market day. i am mark crumpton in new york. the announcements are coming at the worldwide development conference where a keynote address is underway. tim cook making an announcement moments ago about apple watch at. -- apps. >> today we are bringing native apps to the watch with a new version -- [applause] with a new version of the watch os, which gives the developers even more time to create even greater apps for the watch that

world change the world. all of thelaw -- for latest headlines, we go to adam satariano. you have a revved up crowd. they were pretty excited about that announcement. are the true believers at this apple events. the thing tim cook is announcing there is a new software language for the developers to write apps for the watch. so poor they have not had that. they have not released any sales figures. the complaints is that obligations are available are slow and a little bit buggy. , apple hopes, fix some of that. to us about what we have been hearing, the company unveiling the revamped streaming music service. what will that do for the bottom line? , the eventday

ongoing now but expected to announce a new streaming movie service where customer -- music service where customer can pay $10 per month and get access to all of the music in the catalog. they have announced updates to the ios software. some of what they are doing is catch up to other services. what google and microsoft are doing. virtual assistant where it will help you make a point to pull out different things like that. there is also a new operating system for the mac, which has similarities to what microsoft has done. in some ways they are just catching up. what about the headline we are hearing apple is renaming passbook to wallet? how significant is that? is a move that follows up on what they had done earlier with apple pay, a way in which you could make him it's with the iphone or apple watch, and your

credit card is logged on the system, and you can use that to buy something. , they are adding something where you can have loyalty cards and things like that linked to the account as well. basically they want you to put away your big fat wallet and pay with your phone -- watch instead. adam satariano joining us. thank you. now to the top stories. coming chairman jack ma to america to look for more revenue. he will be pitching china's middle class is a growth opportunity for u.s. business and for his e-commerce company. alibaba gets only 4% of the revenue outside china. he is trying to raise that to 50%. cbs adding partners sports showtimes the -- tv service over the internet. the network has secured roku inution through

cvs playstation. was watch shows without signing up for conventional paid tv. earlier betty liu spoke with the showtime ceo. turface -- a terrific audience of device owners we think will be a great target for showtime. and sony playstation view, cloud-based streaming service, they have a gigantic number of connected way stations. that is an untapped market for us demographically in terms of the sheer number of the ball connected to a sony playstation device. we feel strong about the opportunity there also. will be $10.99 per month. the top-ranked analyst covering htc warning the company nightmare is not over. last week they cut the orderly sales forecast by more than a third.

that led an analyst to slash the price target by 37%. losing htc will keep market share and money. pharough will get a two week vacation before he returns to racing again. he returned to kentucky after winning the belmont stakes. running a few more races before retiring to stunt duty at years end. a look at the top stories we're following at this hour. general electric on the verge of a $12 billion deal. bloomberg news reporting ge will sell more than half of the u.s. private equity lending arm to canada's pension plan board. the management looking to buy the rest. ge trying to unload about $2 billion of assets from its ge capital unit. scarlet fu joining me now. this is big news for ge. scarlet: jeffrey immelt trying

to steer ge the coming -- to becoming an industrial company because they fetch higher multiples than a financial company. we saw how close ge came to financial trouble in the wake of the financial races. gm announced they would sell off the ge capital market. the first sale of the business since the announcement, and so far seems like it is going well based on the amount of demand from potential buyers. ank: betty liu will have interview with the chief marketing officer of ge. scarlet: that is coming up later on. looking forward to what she will say. that he will speak to the ceo of carry trader. an interview coming up later in the hour. and nba, what is going on here? scarlet: makes for an exciting series. both series going out to game

seven. hard to believe lebron james may not be the favored one to win given that you could argue he is an underdog here. winning last night in overtime. tampa bay and chicago nhl playoffs, the final tied at 1-1. see you in a few minutes. still ahead on bloomberg market day, investors of the aussie oh raising the glass. -- shares of biagio. ♪

mark: welcome back to the bloomberg market day. getting the biagio spirits lifted today. trading in london spiked after reports of a takeover by 3g capital. they have a well-known relationship with berkshire hathaway. will the bank of warren want to put money behind the maker of

guinness doubt and johnny walker whiskey? here with wisdom is devon energy. we have not been able to confirm the rumor yet. that is right. we have not been able to independently confirm the rumor. clearly the market taking it a little bit seriously, sending shares of 9%. mark: what is the significance if it goes through? >> this is huge. this company's 70 billion in equity value. this would be an asset. the question is whether the rumor is true or not, could a deal like this happen theoretically? it could. the relationship between 3g and warren buffett. he has helped in the past. the other question is what they buy this and keep it an independent company, or would it , as it has with companies in the recent past, by it and

combined with another company? mark: does warren buffett want to put his money behind it? >> a great question. those of us who follow warren buffett in berkshire hathaway the company he -- company see own, they are staples. stepped into something like this, a spirited company or alcohol company. that is a legitimate question whether warren buffett mark: would put his money behind a company like this. thank you. the latest announcement from apple's worldwide developers conference. stay with us. bloomberg market day continues in just a moment. ♪ ♪

(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring

(don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. 11:00 a.m. in san francisco, 2:00 p.m. in new york, and 2:00 a.m. in hong kong. scarlet: this is the bloomberg market day. mark: tim cook takes the stage

and announces a new music streaming service but will investors lend and here? scarlet: video wants users to pay for premium content. we will hear from the ceo coming up. mark: and assuring utility owners about his battery system. we will take you there live. welcome. from bloomberg world headquarters in new york, i'm scarlet -- i'm mark crumpton. thelet: let's get a look at markets, stocks are slumping lower. no economic data so we are following the weakness overseas. european stocks decline for a fifth day. emerging market stocks have fallen for 11 straight days.