is the was doing enough to contain vladimir putin? we have exclusive interview with the prime minister of ukraine. mark: we will hear from the ceos of airbus and boeing on their plans to dominate the skies. a good afternoon from bloomberg world headquarters in new york, i'm mark crumpton with scarlet fu. scarlet: we have breaking news right now. i believe we are going to the breaking news desk. tt: the fed disagrees with the decision and hank greenberg's suit against aig. in judge said the bailout response to the 2008 financial onerous,s illegally

the terms of the bailout. the fed comes back and says it disagrees and says the bailout terms were legal, proper, and effective. extension of credit to aig prevented losses to millions of policyholders, small businesses, and american workers who would have been harmed by aig's collapse in the financial crisis had a not bailed out. the fed disagreeing with the judge. ink greenberg won the case, a way, but was not awarded any damages. he was suing for about $40 billion and got nothing. n which could also be viewed as a loss for hank greenberg, but definitely not good for the fed when a judge calls their actions illegally onerous, and the fed disagrees with that in a statement today. scarlet: thank you.

we will continue the discussion on what this decision means for the federal reserve and aig. in the meantime, let's get a look at the markets. u.s. stocks showing losses mirrored declined in europe although we have given back half of our losses. fallinged out the day to session lows within the first 20 minutes but we have come back. all 10 industry groups still done at the moment. some economic data did not help matters. treasury prices are higher. the 10-year falling to two point 63%. the 30-year at 3.1%. coming out reserve forecast for growth and interest rates. the euro has been the story in that it was worker -- weaker against the dollar and the yen, but it has turned around since then. you can see dollar yen is trading little changed.

still very much a euro-driven story as we look at what greece and the eurozone does next. mark: let's take a look at our top stories. the u.s. supreme court has refused to back a law forcing doctors to show women their ultrasound exams before having an abortion. north carolina past the law for years ago but never took effect. an appeals court said the measure violated the speech rights of doctors and the high court let that ruling stand. supreme court has refused to back a law -- we just told you about that story. coming up, president obama persuading democrats to reconsider their opposition to his trade agenda. ignored hisemocrats personal lobbying and handed him an embarrassing personal defeat. the president used his weekend radio address to make a new appeal. how supporters will try to rescue the bill in another vote as soon as tomorrow.

democrats say it could hurt american jobs and wages. scarlet: the ongoing conflict in ukraine contribute to the crumbling of their banking system. the war against pro-russian separatists has taken 5400 lives to date, provoking the worst crisis between russia and the west since the cold war. ryan chilcote spoke with ukrainian president poroshenko, labeling the cash a bride. the new is it was a bride. we know what happened immediately after the rejection to sign the association agreement with the european union. i think ukraine will demonstrate responsible behavior in this condition. poroshenko says since a

cease-fire was fined that signed in february, there has not been a single day without artillery fire. mark: amnesty international wants to see the creation of a comprehensive global strategy to deal with the crisis which it says is the worst emergency of its kind since world war ii. worldw report suggests leaders have let millions of is called anhat unbearable existence and have allowed millions to die by failing to provide basic human protections. the president of the naacp spoke in, washington chapter has resigned. the announcement that she was stepping down was posted on the facebook page. the move comes after controversy mounted over her racial identity. her parents said she has been falsely portraying herself as black for years, even though she is white. mark: jim bush is officially

entering the race for president. in a little over one hour, he will address supporters at a rally at miami-dade college and plans to highlight job growth in florida during his time as governor. live coverage of the announcement coming up at around 3:00 new york time. bloomberg politics will live stream the event that bloomberg.com -- at bloomberg.com. a federal judge ruling today that the government went too far when it said what is called punitive terms in the aig bailout, but he decided not to award damages in the case. scarlet: peter cook has been following the case. in termstart with you of what this decision means. it sounds like a split decision evenank greenberg because though he got the legal and moral victory, he was not awarded any damages. know, hanke all greenberg has been worried about the bottom line in his career, but the bottom line here is he's

not getting any cash as a result of what took place here at this lengthy lawsuit that he filed against the federal government. the decision from thomas wheeler not a total surprise but he did split the difference. he gave the legal victory to hank greenberg, saying the government exceeded its authority here, the judge in the case saying -- i will read from the opinion here -- he said the federal reserve went too far in terms of the terms of the bailout back in 2008, but then the judge goes on to say in his opinion --

had the government not stepped in, the judge determined, then there would not have been anything left for shareholders, even with the terms of the bailout, which he called punitive. at least shareholders got something for their investment. a split decision, if you will, one that will resonate. mark: peter cook joining us this afternoon, thank you. more to we want to get the outcome of the aig bailout suit. i am joined in boston by josh stirling. give us your interpretation of this ruling. is this good for aig? this is an excellent outcome for aig's current shareholders. obviously, the star litigation was a big overhang on the stock. the possibility of headlines emerging from this was something that was keeping people on the sidelines. obviously, the judge had a difficult path to walk.

he had to write a thoughtful opinion that would survive appeal and navigate the challenge of facts which argued for practicality and, if you remember what september 2008 was like, a lot of decisions made very quickly. in hindsight, legitimate questions about whether it was or was not legal. he found a practical balance, bull on aig we are happy about, but as a practical observer, he has done a good job. mark: matt miller told us the breaking news at the top of the hour that the judge said the crisis was legal and effective. could we get your reaction to that? by any measure, you would say the rescue was effective. the courts have spoken. it would be shocking to think that the treasury and the fed do not appeal this. maybe it goes all the way to the supreme court.

government has to have some degree of flexibility with respect to failing financial institutions, to be able to act appropriately in time of crisis. usually the courts will support a government that does that. retrospectively debate whether it was as fair to aig's legacy shareholders as it could have been relative to how they treated other financial firms, but ultimately, if you were there in 2008, trying to solve the problem, you cannot go back and renegotiate these things. sympathetic with the position of the fed but the courts have spoken. scarlet: aig did not join in on this lawsuit that hank greenberg launched. was his goal to win any money or did he just want to make the point? i think aig thoughtfully decided its future was in deciding the future is this of

being a great global insurance company. ironically, they had a legal obligation that they had to seriously consider, lest they be open to damages themselves, should greenberg win. everything tooing distance themselves from the fact that they relate to the original crisis. if there is one thing that is exciting for them today, this is probably the last of the financial crisis legacy headlines they will have to deal with. many times, the government trying to get this case dismissed because of that action. did it, in fact, give the case more legitimacy? think that's right. from all the reporting and all the documents that came out -- it was a difficult case to defend because of all documents from the treasury and fed lawyers. ultimately, the council decided

a story that plays to the emotions on wall street and the greater country about whether or not the bailout were fair, whether we as a country want to support bailouts of large financial institutions. scarlet: josh stirling, senior analyst at sanford c bernstein. thank you. still ahead, conflict in ukraine is contributing to the crumbling of the country's banking system. an exclusive interview with the ukrainian president petro poroshenko. ♪

mark: welcome back to the bloomberg market day. let's go straight to

matt miller who has a look at the markets. the indexes opened lower but we have clawed back some of our declines. this morning we were in a pretty bad situation with the whole crisis between greece and the rest of the eu. ball innows who has the whose court, nobody wants to take leadership, and as a result european and u.s. stocks fell. about 200 points on the dow at the open but now down about 93 points, so we have come back some. the overall level is still not horrible with today's and friday's losses. the s&p 500 was also down friday, now down about .4%. we do have some down arrows today. is going toologies either sell or a spinoff of its helicopter unit. blackhawky that makes helicopters, has the department of defense as its biggest

customer. the energy sector does not need as many helicopters to fly over its oilfields that it is maybe not operating as a result of prices, so united technologies is the big loser right now. back to you. mark: matt miller, thank you. let's take a look at our top stories crossing the bloomberg terminal. united technologies is shutting helicopter maker sikorsky aircraft. the company is turning its attention to high-tech products for the aerospace and building industries. they said several months ago they were launching a strategic review of options for sikorsky, which it concluded was no longer a good fit in it for olio. united technologies will decide at the end of the third quarter whether to sell or spin off sikorsky. another shakeup at american apparel. the former cochairman has resigned from the board. ceo clears the way for

paula schneider to take his place. the company will also seek another independent director as part of an agreement with the shareholder who have threatened a proxy fight. kolb is believed to be an ally creator.sted the war against pro-russian separatists has taken 6400 lives to date croaking the worst crisis between russia and the west since the cold war. ryan chilcote spoke earlier with ukrainian president petro hisshenko and asked about plan to move heavy weaponry into soviet states. >> i have a lot of communication with the members, the senate members of the congress, from the democratic and republican parties and they say ukraine is

united, the u.s. congress and the u.s. people. we have strong bipartisan support. approach -- it is failing, athe is least from a defensive point. this is the effective attempt to keep european solidarity with the u.s. and ukraine. bigger allies who do not support the idea. >> exactly. the bigger effect of the sanctions, supported by the european union, by the g7 countries, is also an effective method to create a strong motivation for putin to sit at the table and keep the promises we signed in february. ryan: we know the european union is almost certain to extend the sanctions against the russia.

the heads of state meet next week. we also know the u.s. and european union are discussing new sanctions that could be imposed, should russia be deemed to violate the minsk agreement again. what can we expect in terms of new sanctions if we see an escalation? possiblee a lot of actions, coordinated action of the countries in the world including the u.s., canada, japan, australia, european union . one of the most effective sanctions is the sector sanction, including financial ones, payment systems. the purpose of this sanction is the most harmful for the russians, not at all. we just want to create the motivation. please stop the aggression. please stop the firing. stimulate the settlement

in theagreement humanitarian, social, and other spheres. we have obligations that are necessary. poroshenkotro speaking with ryan chilcote. it is the next tech hub. how electronic arts turned orlando into the biggest city in gaming. ♪

mark: a new home for the gaming industry is popping up on the map. orlando, florida is a rising center for the global gaming, technology industry. scarlet: our editor at large cory johnson took a closer look. ry: orlando, yes, orlando is home to one of the biggest video

games ever created. madden football. 100 million sold, $4 billion in sales. division develops the game here in orlando, florida. acquired tiburon entertainment, the developer of the game, and now some 800 employees churn out the game and a slew of sports blog busters, like tiger woods pga tour golf, and nba live. but after 15 years, a sizable the aspera has created a pile of second-generation orlando game companies. have grown up year, the industry has grown up around us. ofy: ea helps the university central florida launch a graduate gain program, the florida interactive and entertainment academy. one of the things they have here

is a motion capture studio, one of the largest on the coast, and students can get real-world experience capture movements like this. this former ea executive launched the program. >> we are taking computer science artists, programmers, giving them experience making games. betweenat partnership startups and the kind of low-cost housing that you cannot find in silicon valley, has created a vibrant gaming community in orlando. >> they see the talent, what's happening here, and it's a different perspective. cory johnson is with us from san francisco. so what is next for the orlando gaming community? cory: interesting stuff going on. this creative development center , where they want to expand a new campus for central florida university focused on digital

gaming, a place to bring together a lot of companies coming up around the ds for former madden football people. that can lead to a lot more digital production there in florida. mark: what was it like taking part in that? you almost looked like american ninja. you could see how weak my curveball is. i guess i cannot make fun of the mets, as they are in first place now. it was a trip to see it and do it. the young people working there really get to work with the best tools available for videogame makers. effort byry serious the industry there. they want to keep that business in central florida. it is very vocational. they really wanted to coach up these individuals to do that

motion capture work, to do the animation, to understand gameplay better. they desperately want those workers to fill that brought work horse because there is this hot happening in orlando focusing on gaming and sports gaming in particular. motion capture is a big part of that. scarlet: cory johnson, fan of the san francisco giants. mark: that is one of those places where you have a job and you have fun, but they are on the cutting edge of technology and science. very impressive. scarlet: see you later on. mark, we will see you tomorrow. much more coming up on the bloomberg market day. the fight between boeing and airbus picks up again from the paris air show. ♪

scarlet: the bloomberg market day. welcome back to -- welcome back to the bloomberg

market day. after six months of raising money and talking to voters, jeff bush attends to follow his -- jeb bush attempt to follow his brother and father as he announces his candidacy today from miami-dade college in florida. joining us for a preview is phil mattingly. jeb bush has been called the front runner in the gop field, was seen as a presumptive nominee for so long. what has changed in the last few months to change that? all of a sudden, he does not seem like a shoe he was once considered. you look at national polling, you don't have anyone clearing 11%. the top tierly in of candidates, but you also have scott walker, marco rubio, who has let the establishment and conservative sides of the republican party on fire. one of the bigger issues is you look at jeb bush's path to the

nomination, the early states where he needs to collect delegates quickly to make a run. as of now, he is just not making a lot of headway in that early polling. it is early, still plenty of time to do that. today is the actual launch. that is why people are ratcheting back their expectations as he gets ready to do this. scarlet: so he has not seen that early support. what are his areas of strength, besides the recognition of his last name, which in some cases, has hurt him, and his fund-raising ability? the last name cuts both ways, but in terms of strength, there is nobody that can bring in the money like jeb bush. he has done an job over the past six months. anyone that understands campaign-finance, funding the great area, raising tens of millions of dollars, more than anyone he that -- that he will

be competing with. that is why many thought he would be the presumptive nominee. there is something nobody in the race that can compete with him on the money side of things. what you will see over the next several weeks is jeb bush trying to campaign in an optimistic manner, as a positive, solutions-oriented candidate, and meanwhile, they will start to put that money to work. there will be a lot of attacks to his rivals. jeb bush will try to stay above the fray, but that money will be put to work. that means scott walker and marco rubio certainly have targets on their back. scarlet: on which campaign issues has he distinguished himself? phil: i think you have seen jeb bush try to recover from conservatives viewing him skeptically because of how he views education, notably common core, which has become a big national issue, and also immigration.

he has been clear the current not only broken but perhaps a pathway to citizenship or legal status is thing that should be pursued. that does not play well in conservative primaries. processearly in the that a republican who wants to win a national election needs to be willing to lose the primary in order to win the general election. he has not moved off of that position. there is no sense that he will. as he sticks to his guns, it will be interesting to see how the earlyervatives in primary states pay attention to him. scarlet: phil mattingly, thank you. of course, this is the lead up to the 3:00 p.m. hour as we will be airing mr. bush's presidential bid announcement. in the meantime, let's get you our top stories crossing the terminal. are surginggna

after anthem is reportedly pursuing a takeover. the latestd away offer for $175 a share. , it wasth, humana reported, was also looking at a potential deal. inre was an unexpected drop factory production last month. the stronger dollar and drop in fuel prices are holding back u.s. factories. meantime, gasoline prices are higher again but rising at a slower pace. the average for a gallon jumped three sets in the past weeks. one analyst says it is the smallest increase in nine weeks. the highest prices in the u.s. were $3.52 in san diego. the lowest, $2.45 in tucson, arizona. pharmacy selling its

business to cvs for about $1.5 billion. cvs will run the pharmacies with a store within a store format. ever taken in a half billion dollars worldwide in its opening weekend until now. set the record" over the weekend and the movie took in more than $200 million in north america, only the second time that has happened. coming up in the next half hour, feeling the heat from the greek debt turmoil. we want to you which commodities are feeling it the most. and who needs those mobile apps? we will hear from martin sorrell. tests. stress that and much more coming up on the bloomberg market day. $222g and airbus racked up million in orders of the first day of the air show in paris.

scott johnson caught up with jim mcnerney, the chairman and ceo of knowing. when you buy an airplane, you buy against your view of the potential distribution of oil prices, not the spot price you are at today. you are going to own the asset for 20 years, so you have a broader view of what it could be. secondly, we are producing making thethat are current fleet obsolete. the payback, even a lower fuel prices for a new plane versus the one they are operating now, is much faster than it used to be. and thethank the 787 technologies that have flowed from that. 787 running,ot the there is airline looking at -- at the aircraft. give me a sense of how you make money on the airplane now. you have to take cost out of the

production line. >> we do, but step one is to build the right airplanes. the airlines that are using it are getting the efficiency and performance we promised, and more. this plane was really worth everything that we went through to get it done. you are right. we do have a challenge to get down the learning curve and bring efficiencies out of the production line, but volume is our friend here. we are going to go up to 14 a month. no wide-body has ever gone that far. never have we had the opportunity to spread fixed cost like we do here. i think this is a good problem to have. we have an order book as far as the eye can see. some of them today. it's a challenge but one that we can handle. scarlet: guy johnson also spoke with fabrice bregier, president and ceo of airbus.

is not too narrow but not huge. you know that you need to invest billionn $10 million -- to launch a new aircraft. it only makes sense if you cover a large spectrum of the market. clear, we are leading with about 80% market share because it is a better aircraft. but it is up to them. we have seen it in the past. the competition with our ,olleagues, friends at boeing is very tough, cutthroat at times, but it helps us to improve and be more competitive for the customers. >> this morning, talking about the little stretch of the big airplane behind you. any details on what that might mean, would that satisfy tim clark over at emirates? >> the first thing to do is to break even financially this year

, to get additional customers on board. it is clear we will have one day to invest in the evolution of this family, but as the market doubles in size, we will also need a light stretch. this aircraft is capable of it. it all depends on the market conditions. you think we will learn about that, when will you make a decision on a new engine or a little stretch? >> perhaps not this year or next year. this is, i believe, for after 2020. ,carlet: fabrice bregier president and ceo of airbus, playing coy with guy johnson. coming up, apple supports ad blocking. we will hear what martin sorrell has to say about that. ♪

scarlet: welcome back to the bloomberg market day. it is a monday after the season five finale of "game of thrones." spoiler alert, for anyone behind, you better turn down the volume now. conditioned to expect, it was a bloody and for several characters, with one beingcharacter, jon snow stabbed and left to die. i had to bring in alix steel, because this is all we could talk about this morning. : we were not the only ones. it was everywhere.

if you look at the bloomberg terminal, the amount of times jon snow has been mentioned in the past week has increased to about a 48 word count, and that is not even counting today. this will not even update tomorrow. a lot of people have been trying to tune in. leave it to alix steel to chart how often his name is mentioned on the terminal. snow, very dramatic, there is a lot of talk about whether he will come back or not. which is natural in the grieving process. you denied. i went online as soon as the credits rolled, and the actor who plays jon snow was published giving interviews saying that his character is dead and is not coming back. believe he is alive. my husband's theory revolves around john snow, so if he dies,

i don't know what will happen. .e has this whole thing is insist, removed by one degree. the point is, "game of thrones" is an enormous success for hbo, surpassing "the sopranos" in in terms of viewership. scarlet: and highly pirated. the piracy population is better than an emmy, as said by the hbo ceo. your hate us all of if you did not turn your volume down. scarlet: prices settled in new york trading and here we are looking at five them.

feeling the heat from the greek debt costs -- talks. the platinum market is the latest victim in the greece debt turmoil, according to this article. the theory here is a quarter of global demand is used in cars. palladium is mostly used in china but let them is used in catalytic converters in europe. if a greek debt deal does not materialize, that will hurt global growth and the economy and that would hurt the economy for cars, which hurts the demand for platinum. we are seeing that in the market today. scarlet: also talking about soybeans. the weather is a big reason. alix: soybeans fell to below nine dollars a bushel for the first timescarlet: also talkingt soybeans. since 2010. in five years, we have not seen prices the slow. part of the reason is you are getting good weather. basically enough moisture in the environment in order to have

good planting and a good harvest. that was a significant level that i wanted to highlight. cannot: of course we complete our commodity check without nymex crude. i want to point out a comment made by the energy secretary saying the strategic petroleum reserve should be tapped to ease any global oil price shocks. that is not just for the u.s. but globally. that really stood out to me. scarlet: that is not a consensus view. alix: no, it is not. basically we keep that here in case we cannot import any oil, so this was a surprise when i heard those comments. we have also been talking a lot about oil in terms of supply, but south korea is importing the most crude in 14 years. if that demand picture keeps up, that is what analysts are looking forward to. scarlet: that is what opec nations have been waiting for, the pickup in demand from asia. alix steel, you will be back in

15 minutes to take you through the market close. get tomeantime, let's our top stories. confidence among u.s. homebuilders rebounding to a high. warm weather brought prospective buyers back out to the market. the sentiment gauge rose to 59 this month, the strongest level since september. ibm says it is planning to spend hundreds of millions of dollars a year on free software for big data. the open source project will allow people to analyze large amounts of data more quickly. analysts say that by backing the project, ibm hopes to attract more software engineers to use its big data tools. a key member of congress want to spin off the air traffic rituals system into a nonprofit corporation. bill shuster says that when insulated from political in for -- interference and budget uncertainty.

he would fund the air traffic control with user fees. apple isirst time, unraveling -- allowing app developers to unlock apps for its next browser upgrade expected to come out in the fall. "surveillance" we spoke to martin sarao about apple's big move. >> we think it will affect 5% of mobile advertising. the other big point, it raises the cost of content by reducing the amount of advertising. if it does, consumers will have to pay more for content. microsoft tried that a few years ago, did not work. it has always been a question about free, subscription, or advertising. althoughs subscription they are starting to cross-platform advertise and

have even talked about sponsored programming. even the ad free models built on the concept that people don't want to watch advertising, have had to compromise. look at digital as like we used to look at tv ads, where we got up and walked away while they advertised? we took about 20% because we believe that there had to be stricter standards for view ability online. hand you have nielsen having problems off-line with measurement, where we have viewer statistics falling because we do not capture all , seven days after assertion, rather than three days, which is when nielsen does. offline needs to be more comprehensive. and online needs to have stricter view ability standards

to make people are really connecting with the ads. scarlet: that was martin sarao, ceo of wpp. coming up on the bloomberg market day. itsk rock testing how risky holdings are by running them through new risk scenarios. ♪

scarlet: the gyrations gripping the global bond market have gotten so extreme even black rock is scrapping it usual rulebook for assessing risk. last week, the yield on 10-year german bunds passed a new mark. of volatility is making it more difficult for investors to gauge risk. lisa abramowicz joins me now for more. give me a sense of what is different now. blackrock and all of these other fund managers need to assess how

risky their books are, and their old models are not working anymore? markets, thinkan about what happened. mario draghi announced the euro stimulus of ram which was unprecedented, taking benchmark deposit rates down below zero. this is very difficult to comprehend. people are basically paying for the privilege of having their money in a bank. this offense models in their own right. when you have yields at such low and the negative levels, the high volatility is substantial. there has been very little room for error here. that is part of what has changed. the other thing that has changed is these programs are working. you are starting to see inflation take up in europe, time to see signs of inflation in the u.s. although with today's data it has been somewhat spotty. the federal reserve is expected to start hiking interest rates this year.

this has all painted a scenario that has left a pretty choppy bond market and the expectations that that choppiness will increase in the months ahead. scarlet: european qe came after u.s. qe. monti and we see this level of volatility the first time? lisa: we have not moved away from the zero sees. october last year, dramatic volatility in 10-year treasuries, which the fed is still looking into, to determine what exactly happened. held up.but it has not it comes in little bursts and then disappears. is worse, volatility that is consistent or volatility that is volatile? talk about a mind work. this is something that people talk about. -- mind warp. if they cannot predict when the market will be volatile, it is more difficult to gird against.

this is changing the way that companies like blackrock are looking at volatility, potential correlations, how much markets move in tandem with one another, in order to make sure they are not left out to dry. consensuss there a view right now on european bonds or is everything all over the place? now: some people i talk to say now is the time to buy because they don't see how yields will continue to rise. is an say this whole era aberration and rates will have to rise. there is definitely some conflict out there. scarlet: the spill over into other assets. the treasury taking their cue from the european debt market. are we seeing this spill over into the equity markets? they seem to be sanguine, keep moving higher. in the u.s., there is the fear about the bubble in the stock market, which have been coming up. -likeave seen equity

instruments in the u.s., starting to see some weakness. people pulled $2.6 billion from u.s. high-yield funds last week, the most this year. there have been signs of weakness that have started their , and typically the junk bond market is head of the equity market by about three months. if that continues, that could portend for some weakness ahead. scarlet: could be the canary in the coal mine for equities and a long bull market. lisa abramowicz, thank you. formallyad, jeb bush enters the race for the republican nomination today. live coverage is next from miami. ♪ . .

alix: it is noon in san francisco and 3:00 a.m. in hong kong. jeb bush is set to make it official is our.

he will announce he's running to be the next president of the united eight, possibly setting a course to become the fourth family member to hold office. alix: the greek premise or has failed and it has sent stocks around the world into the red. once to buildma the chinese version of netflix and hbo, looking to service 600 million families, creating more entertainment content. scarlet: good afternoon. alix: let's get straight to a look at the markets. a selloff underway, the dow jones off by 115 point. .5%, andlso off by it's also below its 100 day moving average.