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. as for treasuries, they are

rebounding from last week selloff, so prices are higher, lower yield. week,eld at 2.4% last according to barclays, meant that that plunge made the 10-year more attractive than before. the big story is the dollar, which is weaker against the euro and the yen. the big news came after an unnamed french official was telling reporters that president obama spoke privately to g-7 delegates saying a strong dollar pose a problem. the president later denied that but you see the damage done and the weaker dollar now. onk: a lot of stuff going around another 11th hour appeal from greece. investors trying to figure out when the federal reserve will finally weigh on interest rates. let's take a look at some other top stories crossing the bloomberg terminal at this hour. as scarlet mentioned, the group of seven leaders meeting in

germany, discussing that tends situation between russia and ukraine. german chancellor angela merkel said we are "ready to intensify sanctions if the situation will require it." president obama also spoke at a mid morning news conference. >> there is strong consensus that we need to keep pushing russia to abide by the terms of the minx -- minsk agreement, we need to encourage ukraine to untilts obligations, and that is completed, sanctions remain in place. the g7 agree sanctions against russia will stay in place unless president gruden honors a peace deal he helped broker in ukraine. scarlet: the new ceo of deutsche bank will be taking over a bank playing by billions in legal costs and questions about its strategy. former cfo john cryan has been

named to run germany's largest bank. that brings an end to anshu jain 's three years as co-ceo. under anshu jain and juergen fitschen, shares posted the lowest level among global peers. he is an m&a banker, which you are a number -- which you will remember, was bought by ubs. to be asked to step in the ceo of ubs during the darkest part of the crisis for them. a lot of technical stuff had to be done with, a lot of bad assets. thatd it bit by bit, and is what he is thinking about now at deutsche bank. scarlet: shares at deutsche bank are moving higher in response to the news. mark: steeple financial is buying barclays in the u.s.. the terms were not disclosed. roughly 180 advisers in the u.s. and manage $56 million in total asset

clients as of may 31. the deal is expected to be completed in mid-november. trying to bee is more competitive in cloud computing services. they will build a high-speed network and upgrade how it was data centers together. they want to take cloud computing business away from amazon, google, and microsoft. mark: boeing is considering whether to build the there was ist body jetliner --narrow jetliner ever. they want the claim that lies larger and farther than current narrow bodies. scarlet: airline profits are expected to set a record this year. earnings will top $29 billion. that is up almost 80% from a year ago. north american airlines will account for more than half of that. the reason for higher profits, lower fuel prices and a stronger

economy. mark: american pharoah will get a vacation before racing again. the first of a crown winner in 37 years return to kentucky after winning the belmont stakes on saturday here in new york. he is expected to run a few more races before returning to stun duty at the end of the year. duty at the end of the year. those are our top stories. released ameo has new subscription model. the company's ceo speaks to bloomberg. mark: looking where to spend your golden years? we explore the best and worst cities for retirees. scarlet: and we will hear from the cmo of general electric. that and much more happening in the bloomberg market day. mark: apple's developers conference is in full swing in san francisco. the company is introducing software improvements and its

streaming music service. adam satariano is there with more. let's go over the highlight one more time. what were some of the takeaways? the event is still underway. some of the big takeaways, the update to the mac operating system, the new iphone software has some new news reading applications, a digital assistant, improvements to maps, improvements to siri. details about the streaming service will also be coming later in the presentation. scarlet: i want to follow-up on that. there has been so much focus on this new streaming service. apple is pretty late to the game on music streaming. what is the biggest obstacle in needs to overcome? that is kind of the theme for this event. a lot of the things they have been introducing have been available in different offering from different companies.

in music, one of the challenges is going to be showing what is different about what they are doing. obviously, they have a lot of money at their disposal, can partner with big-name artists to get the word out. i think they will be going after , not necessarily spotify or other streaming services, but people who have not done streaming service in the past. we will see how that shakes out as soon as we get more details in the next hour or so. mark: is this about apple trying to put its stamp on music streaming, or is this about feeling the pressure from the modify'-- thethus spotify's of the world? has a rich tradition in music, the ipod is what turned the industry around. but the business is changing, where you go from a download $.99 perre you can pay

song, to now the streaming model which is what pandora and spotify are doing, listening to an internet connection. apple is trying to maintain his leadership in music but also shifting with where the market is going. it importantwhy is for apple to be a strong player in streaming? beating spotify and pandora is great for headlines, but it is not significant to a company like apple, is it? >> great point. in the grand scheme of things, music is a miniscule part of apple's business. what they want to do is sell iphones. that is the biggest part of their business. with the music service, the idea is, if it becomes a little more sticky, someone will be less likely to move to a different -- to move to a different phone. if you can get three months free with the beats music, as has been rumored, that might be an enticement to get an iphone.

everything with apple is sort of centered around selling more iphones. that is a huge part of the business. mark: a couple things that caught my interest, before you go. apple saying it will take apple paid to the u.k. next week and is also renaming passbook to wallet. what is the significance of these changes? changedpple pay being to wallet is an evolution of the product. you can use your phone or your apple watch to buy things in the store. this is a new business apple has been getting into over the past year. other companies have been there before like paypal, and google, to a a certain extent, but this is apple taking advantage of its scale. hundreds of millions of iphones have been sold. if they can get these customers to use their payment system or their music service, then they have a built in customer say -- base that they can build from.

is coveringentry on the apple developers conference outside the mosque army center in san francisco. thank you so much. scarlet: still ahead, content is still king. vimeo rolls out ♪

mark: welcome back to the bloomberg market day. i'm mark crumpton with scarlet fu. scarlet: julie hyman has been amusing us during the commercial break with the markets.

julie: let's keep my dance moves off the air. let's look at the market instead. we have the three major averages trading lower. the nasdaq hitting its lows of the session. a three-day losing streak for the major averages. it is interesting because there is not a lot of fundamental negative sentiment necessarily. draftjust sort of a downward that we are seeing. i also want to talk about the vix. we are seeing a trend upward to about 15.5. levels, whichow again describes what we are seeing, this drop does not have a lot of panic or fear. if you look at my terminal index , you can see a measure of the versus volatility in europe. we have seen the volatility in bonds, much more volatile.

but even european stocks are more volatile than u.s. stocks. we have them at a reading of about 25 when we are still around 15.5. this is something that jim from mkm was talking about, a derivative strategist. he thinks we will see u.s. volatility catching up with what we are seeing, not just in european stocks, but other asset classes. he thinks investors should brace for that eventuality. tellinge, mario draghi investors to get ready for more volatility. speaking of, look at the dollar today. scarlet pointing out this move from earlier, a move downward. was this morning when a french official said that president obama had said a stronger dollar is not good for the u.s. economy. he then disavowed those comments, but nonetheless, the dollar is trending lower in the session, down 1% right now. measure of the dollar

against a basket of currencies. scarlet: thank you, julie hyman. mark: let's take a look at our top story on the bloomberg terminal. the top-rated analyst covering smartphone maker htc is warning the company's nightmare is not over. cut their they quarterly sales forecast by more than a third. that led an analyst to slashes price target by 37%. he says htc will keep losing market share and money. smaller loss in the first quarter. the retail chain was held by the new ceos strategy of selling off assets like the lands and clothing business. he is now setting up a real estate investment trust that will buy sears stores locations, and then release them back. y" was thecarthy's "sp big winner at the box office this weekend, taking in $30

million, slightly lower than estimates. opens fridayrld" and is expected to bring in $100 million in its first weekend. those are some of our top stories this hour. applet: with all eyes on in san francisco, in montauk, new york, greylock partners is holding their own summit. betty is with the ceo of vimeo, kerry trainor. betty: i am here with kerry trainor. a few days ago, you launched subscription channels. paid suspension, so you will not just subscribe, but you have to pay for the content. how big of a deal is this? >> we just launched a new extension of our online plant or which allows any creator to launch a seduction series of their choice, so they can bundle videos and set a recurring monthly price for those videos.

it is one more way for them to sell using vimeo. this has allowed people to sell for over two years and we have seen great traction with our transactional service, which we initially launched where creators can sell or rent content of the cart. add this mixd to where they can charge a recurring fee and make it available anywhere in the world. betty: what is the price point? ofit is at the discretion the video owner. it puts the power and control directly into their hands. we are seeing in our transactional system, which is more developed, price points across the board. from single dollars for individual pieces of content, up to hundreds of dollars for certain series. we even have some content that some are selling for over $1000. for instance, very specific instructional content. it is very early for

subscriptions, but we expect the same array of possibilities, based on the audience and how specific the contact is. betty: you made a partnership with a company in the video gaming world. this was written up about in the press. >> we are very excited about our ima. theyip with machin really represent the early programmers in the independent, online video world. certainly, the world is very familiar with the wide breadth of creators on youtube and ad supported model that they have developed. machinima are coming in. now with the ability to monetize, we are charging for

content. wereke a studio offline, they may have content the window for pre-consumption with advertising, they may also saw that content through vod service. vimeo now brings that platform to them. betty: if it is free, why will i pay for it? like the off-line video world before the internet, video is available for pay or free, depending on when or where it is made available. for instance, a film they come out in a theater but you have to pay to see it. that may then be available sometime later through a vod service, or even free with advertising. what we're seeing now, the point of vimeo on demand, we believe the internet will play out the same. it is a combination of free and paid business models for content depending on how new it is or where is available. we see the same thing on the web and we are providing the paid

platform to provide those windows. betty: youtube has a million unique viewers. >> so they say. betty: give or take a few, right? what is to stop youtube from saying i'm going to eat vimeo's lunch and lots the same type of platform? >> youtube is very good at what consume and a free to global platform. i liken it to broadcast television. the first 40, 50 years of television, that was pretty much the only model. you have the rise of the big networks and the world was happy. the 1970's and 1980's, we saw the premium cable revolution, and then you have paid content, which is a different experience for the viewers and creators. hbo and showtime offer a different product to nbc or cbs. that is the environment that vimeo has always provided. vimeo has thrived from its founding, even with youtube,

because we are offering a different environment. betty: but if youtube is offering that environment for free, again, why pay for it? youtube will say, i will curate premium content, because i have a billion unique viewers a month. audience doesrge not necessarily make you great at curating premium content. addition, to get to the specifics of your question, there is also the opportunity for ardent fans to pay for content first. four youtube, one of the challenges is, the expectation is that it is free. people value youtube because it is free. it is not a problem, it's a massive advantage. they have the scale. is an environment where people expect and enjoy free of advertising, so therefore, we believe they are willing to p ay, and it's a better place to create your content.

, itle realize with vimeo will be free of advertising, will be more nearly presented, and are willing to pay. you for joining me. kerry trainor, the ceo of vimeo. back to you. scarlet: thank you. vimeo looking into a subsection service. would you pay to watch videos on vimeo? mark: i have no idea. that is one of the things that i would have to think about. during the interview, it looked pretty nice. did not look too bad out there. if you are looking to retire and live in the tri-state area, you may consider moving west. details are next. ♪

scarlet: after years of toiling away, where are the best races to spend your golden years? compared over 100 cities taking into account many factors. here is what they found. the three best cities to retire , arizona,order, mesa arlington, virginia, and prescott, arizona. the tri-state did pretty poorly. i would imagine, new york coming in there because it is just too expensive to live here. scarlet: and the weather is not so great. last year, the 25 inches or so. mark: if you are a retiree, the last thing you want to think about is shoveling out your driveway.

there is a report on bloomberg business that says there is no place like home, except when you cannot afford one. millenial's are being priced out as well. the rents are so high, they cannot save enough for a 20% down payment on a home. scarlet: if they want to buy something, maybe they can find something in cities like to join, pittsburgh, indianapolis. mark: a lot of nasty weather in those areas. scarlet: and shaky fiscal situations. much more coming up on the bloomberg market day. with ge'swill speak cmo next. ♪

scarlet: welcome back to the bloomberg market day. i'm scarlet fu. let's get to some top stories crossing the bloomberg terminal.

greek finance minister yanis varoufakis said his country can make a deal with creditors in one night it everyone to them to seriously negotiate. here he is earlier in berlin. >> 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. history will take it down as a failure of the political class of the european union. also saidaroufakis the greek debt burden needs to be linked to growth. carolinaury in south has indicted a former police officer on murder charges after the shooting of a black man captured on video. the north charleston police department fired michael slager days after the reagan became public. the video shows in firing eight times as walter scott was running away. global sales at mcdonald's are still falling but now are declining less than expected. that is seen as a sign of progress under the new ceo.

global same-store sales rose 10%. shares of mcdonald's have gained 2% through the end of last week. a bu game mogul from china is learning there is no such thing as a free lunch. won an annual charity auction to break bread with warren buffett. the price tag, more than $2.3 million. the money goes to a charity in san francisco that provides meals and housing for the poor. coming up in the next half hour, in the commodities close, we look at copper. struggling with a six-week low as china announces an import decline. the comments reportedly made by president obama at the g7. and elon musk excited about solar energy. he speaks at the edison electric energy convention. we will discuss that and much more coming up next. first, let's go back to the

greylock summit in montauk, new york with beth comstock, the cmo of general electric. thank you. we are here with beth comstock, the cmo of ge, who wears many hats at general electric, including the head of business ventures. you and i were just talking -- we will get to this in a moment -- where you have the time to anything? as we we get to that, were talking about, we just did a panel about storytelling. how do you tell the story of ge to consumers? what is the best platform right now for ge to tell its story? >> there are such a multitude of stories. if you look at social media, it is all discrete landforms but we really like what is happening with social media because you are able to target your audience in a relevant way. each platform has something different we have had great luck

with instagram. we are one of the first brands on instagram in 2011 and it is so beautiful, this -- the photography that you can bring to life, about how things are made of ge. we have recently been doing more with snapchat, even with micro-messaging platforms. social media is pretty exciting right now. i am particularly excited with where virtual reality is going. experimenting, obviously, has not scaled yet, dr. -- but to create an immersive experience for the show someone, this is what happens inside of a jet engine, this is what happens in your brain. those things we are expanding with now. betty: on those social media platforms, how do you measure success? >> every campaign is different, so you have a different set of goals.

we have been doing a lot of this around the industrial internet. our efforts to get into data analytics. ge is becoming a software company around the industrial side of the world. for us to use social media to go who are making buying decisions, software engineers who can develop new apps on our internet platform, to go after talent who we want to come in and write code and various businesses. it really depends. often, you will look in one platform that can serve a multitude of needs and audiences. betty: different needs at ge. have you seen anything that has moved the needle the way that a 30-second years -- ad would have gone 10 years ago? >> it is hard to say that there

is any one platform, but in concert, we are looking to create the application. that ability is so much better. -- create the amplification. andcan create that tv spot make it more effective by using various social media platforms. think about the way that twitter has changed tv viewing. it is no longer one or the other. together it is something special. the same thing with brand marketing. workedat one point, you at nbc. >> the formative part of my career. betty: given how important storytelling is, maybe ge should have kept nbc? >> [laughter] our core competency is pretty advanced science. i do think you will see us telling a lot more stories about science, going forward. avenues isof those this documentary that you will be airing on national geographic.

brian grazer and ron howard are producing it with you. ,s this some sort of new model by which ge will advertise? >> it is new for us, certainly in recent memory. i can point back to the late 1950's and 1960's where we had ge theater. in fact, ron howard had his first acting start in a ge theater. a great story. there are times in our history where we have been a part of stories. this is certainly a new chapter. basically, we have teamed up with brian grazer and ron howard and they have brought together a group of great directors, best and they " 30 for 30" will help us tell great science stories. we are giving context for some of the great science stories happening in the world. longevity, renewal -- renewable energy. how do we create the right

breakthroughs to get what we need? background,giving scientists, but mostly good storytellers. they need 60 minutes p you cannot tell these stories in a line.30-second sometimes you need to go deep. this new format for us, as a ,roducing partner, with nat geo through imagine entertainment, we can bring context to the equation. betty: thank you so much, that. very much enjoyed the panel with you. >> you did a great job, thanks. betty: back to you guys. scarlet: of course, the narrative behind general electric with the ge cmo. much more coming up. president obama reportedly calling a strong dollar a problem at the g7 summit.

more reactions next. ♪

to the: welcome back bloomberg market day. i'm scarlet fu. big berg may be the best substitute teacher at all. watching sesame street can provide educational benefits compared to preschool, according to one study. especially for those in disadvantaged areas. in areas where the broadcast was received, students at a 14% drop of a likelihood of being behind in school. african-american boys in particular found a pronounced effect. researchers said it was probably their focus of an academic

curriculum on reading and math. pre-pteel has a re-pre-school or at home. would you let your daughter watch sesame street? alix: that was striking to me about the article. the other thing that came out, is it relevant now, which they could not answer. you had a1970's, portion that had no access to it, and the portion that did not. now it is much more difficult to track. and the programming was much different in the 1970's. a third of toddlers watched sesame street. that is part of the issue. if you can get a good education from sesame street, can you get out of preschool? teaching about emotional

development, interacting with other people, and it's also a resource for parents come in the way that sesame street is not. but i was thinking, should i let my daughter watch sesame street at eight months? tvrlet: i am a fan of the show but not so much of the amusement park developed around the show. nothing educational as far as i could tell. alix: is it supposed to be? elmo appears on stage and reportedly teaches you something but it was really just very loud. you are going to stay with me as we see how commodity prices have settled. let's take a look at wti crude. dipping below $58 a barrel. so much for that late spike on friday trading. opec made no change to its targets. at last checkls were higher. copper higher by half a percent.

alix, you were looking at the china trade numbers. demand from china is such a big part of the story. alix: this is how they fared. oil on the surface looked pretty ugly. 11%imports into china fell year from year, 26% month on month. the lowest level since may 2011. a little grim when you look at the numbers. not as terrible for copper, but you had tonnage down 6.4% year on year. believe that, is that the story, that there is not the demand of people expected from china? alix: i will say no. in terms of oil, commerzbank came out and said you had refiners using their stock. they are seeing inventory drawdown, so the underlying is higher than imports would dictate. scarlet: so saudi arabia is right? alix: they could be. they have been trying to woe

asian demand -- woo asian demand. citigroup expects crude imports to resume must refineries come out of maintenance. they are switching over what kind of crude products they can make. in terms of copper, a pretty similar idea. we have seen inventory drawdowns on the shanghai metal exchange, falling by 6.8%. inventories are moving lower. china's state great investment is huge. by far the biggest driver of copper demand in the country. that is still seeing tons of money being can't into it. scarlet: and probably not going away soon. alix: may not be gang buster growth like we saw in the last decade, in terms of having the status quo. scarlet: and relative to the western world, much stronger. alix steel will be back in about 15 minutes to take us through

the market close. in the meantime, let's get to our top stories crossing the bloomberg terminal. expectation for a year -- inflation the year ahead is expected to take uick up. the expectation is an inflation rate of 3% in a years time, an increase from 2.7% in april survey. expected inflation three years ahead was unchanged at 3%. cbs is adding partners for its showtime tv service over the internet. the network has secured distribution via set-top box maker roku and the sony playstation. the service begins in july and will cost $11 a month. sign upallow users to for service without conventional pay television. two convictedate, killers remain on the loose after an escape over the weekend. the men who occupy the side-by-side cells cut through walls and pipe.

officials are investigating how they obtained power tools in the "shawshank redemption"-style breakout. police are offering a reward for information leading to their capture. as we have been discussing, the dollar tumbled early this morning, depreciating against euro and the yen after a french official said president obama expressed concerns about the strength of the dollar at the g7 summit in germany. when asked, the president set the record straight. , and id not say that make a practice of not commenting on the daily fluctuations of the dollar, or any other currency. scarlet: joining us now for more on the story is peter cook our chief washington correspondent, and joe weisenthal. peter, while the president issued a firm denial, he did not tell the line of saying we prefer a strong dollar, which had been a typical practice of

, not just this one, but in the past as well. one thing is clear, world leaders are better off not talking about currencies altogether, and that includes barack obama. he did not want to talk about it , you could tell from his body language, an issue that he did not expect to come up during the course of the conversation, but he did not offer the standard past statement that we get from u.s. presidents and treasury secretaries, that they believe in a strong dollar. i would not read too much into it. certainly, currency probably came up in the course of the conversation with world leaders, but this probably has more to do with lost in translation moment than anything else. u.s. officials are willing to concede the dollar has been causing headwinds for the u.s. economy but are not about to change policy at this point in time. scarlet: certainly not in that manner.

joe, when you heard about this, does this beat to hell little information investors are getting? we are desperate for any indication on greece, anything that could drive markets, so we seize upon this comment. >> i think that is right. when all of the leaders meet, they discuss greece, the need for jobs, growth -- ok, fine. i think investors typically ignore it. i do not see g7 meetings as things that people typically see as really important economic market catalyst. -- catalysts. every once in a while you get a headline out of it. people seized on this one because it seemed unusual that the president would have made that comment. need to interrupt this to go to olivia sterns at the breaking news. some headlines on apple. olivia: it is the headline we have all been waiting for. tim cook has officially announced apple music, then new

streaming senior debt service. he is on stage at the moment. -- the new streaming music service. he is alongside jony ive at the developers conference in california. rumors are it may cost $10 a month. we would like to know about the terms they cut with music producers, and anything else. it is now official, tim cook has announced apple music. you for thatk update. of course, the developers conference taking place right now. peter, let's get back to you on this dollar story. give us the history of how this strong dollar policy, at least the rhetoric, began. for a well-known was talking about it and then a very explicatedecision to a strong dollar is in the u.s. interest.

the treasury secretary getting that message. certainly, it made life easier for treasury secretaries. you ask any treasury secretary this question, and they know they have to repeat the exact answer may have reviewed 100, 1000 times before. the belief in the strong dollar. in the best difference of the u.s. economy and the global economy. that is the message they have delivered. it is easier not to strengthen the message but it also back to bob rubin. scarlet: there is rhetoric and there is reality. even though we talk a strong dollar, the reality is we need a week dollar, and we use it to our benefit. seems like some sort of national pride thing. we are american.

it does not seem to make any economic sense. it is also true the treasury does not have much control over it, so it is also weird to me that this is a question that the treasury secretary is often asked. in other countries, leaders are willing to say, our currency is overvalued. you have heard that from japan, europe, where finance ministers say it does not make sense, the strength of the euro. scarlet: are in brazil, people will accuse each other of currency manipulation. >> it is this weird american thing. scarlet: strong dollar no matter what. joe weisenthal, thank you. peter cook, our chief washington correspondent as well. cook'stails on tim latest announcement on apple music. apple shares are paring their losses right now. ♪

scarlet: welcome back to the bloomberg market day. the big news at today's apple's worldwide developer conference is the unveiling of their new revamped user service called apple music. under the big headline was that female executives made on stage appearances during a keynote presentation for the first time since 2010. the vice president of apple ay and the vice president of product management spoke. with fantastic supports of merchants, large and small, we've also as one million locations accepting apple pay next month. [applause] and thanks to our amazing developers, we have great momentum within apps as well. easy to use,so

developers are telling us they are seeing more than two times increase in checkout rates. to we are adding new apps the store every day. here are some of the latest, representing a great range of categories, from delta in travel to etsy, the leading craft marketplace. we are now excited to announce that we are bringing apple pay to the u.k. [applause] and it is coming next month. [applause] we will launch with eight of the most popular banks with more coming this fall. with this great lineup of banks, we will support more than 70% of the credit and debit cards in the u.k. scarlet: one of the two women speaking onstage on behalf of apple. prescott gave the pitch for the forthcoming news app. i was just checking their gender diversity.

overall, 70% male, 30% female. basis, 72%adership male, 20% female. certainly some work to do but at least they are getting some visibility for the women. much more coverage in the next hour. the company taking a bite out of music streaming with apple music. we will speak about what this means for apple, the company, its cash flow, and it's hundreds of billions of dollars in cash. much more coming up on the bloomberg market day. ♪

>> this is the bloomberg market day. it tim cook unveils the tech giants latest update to the

operating system. a ceo surprise, deutsche bank names a new executive. and we give you the roundup on the unwanted 45 lien dollar takeover approach by -- $45 billion takeover approach. scarlet: i am scarlet fu. alix: we have an article by michael regan of bloomberg news who said the word to describe this market is touring. goldman sachs was looking at their sentiment indicator.