Goalie. The former world cup goalkeeper soccer over talks the next hour. First lets get headlines. Thank you. Barclays is in legal hot seat being sued over allegations they gave traders unfair advantage. Eric schneiderman is accusing the bank of falsifying marketing materials. In after the bell earnings, they are tumbling. This after the home good retailer profit fell. The u. S. Economy shrank 2. 9 in the first quarter. That is more than forecast. The worst reading in five years. Gdp was hurt by a slowdown in health care spending. Now to the big aereo decision. Ruling. Supreme court it violates the copyrights of broadcasters. It is a setback for aereo and aereo only. Before therguing Supreme Court was to mislead the core into thinking that we were going to be hurting consumers. What the consumer gets is the highest Quality Programming which costs a lot of money to produce. He will continue to get that. Takingea was doing was our technology and selling it to the consumer. The decisioned to by saying the decision by the United States of print court is a massive setback for the american consumer. Lets get more insight on the decision. Joining me from washington is gordon smith, of the National Association of broadcasters. And miller baker, eight partner. T mcdermott will and emery joining us from San Francisco is mitch stoltz at the Electronic FrontierFoundation Part of the team that supported aereos position. Lets start with you mitch. What are the next steps . It is not clear what the next steps are. They have some options. The bigger question is what the other is going to have on internet technologies, especially should remain technologies. Gordon smith, come in on this decision. Tell us what it means. If you have a new technology you are not exempt from copyright law. But the Supreme Court did is stand by the principle of the United States constitution that requires those who would take the intellectual property of others to deal with them, to do business with them. Cable was subject to copper then a new Technology Comes along and they were subject to copyright. Aereo comes along and tries to build a model that exempts them from dealing with the creators of this content. The Supreme Court said you cannot do that. Whacks come in on the decision. It was 63. What does that tell you about the future litigation around streaming of content . The court was clear in the opinion to limit the holding in this case to these facts. Toy went out of their way make it clear that this decision would not necessarily apply to another set technology. Or different technology. Theill have to wait until next case. On these facts with these technologies, this is a violation of the copyright act. The rulingoltz, is specific enough to let other Technology Take the lead . Not specific enough. It uses a lot of weasel words like saying area was similar to isle, that aereo primarily customers primarily pay for the privilege of watching video. Words like similar and primarily our individuals to litigation are imitations to litigation. Is that consistent with your view . It is not. Aereo still has a Business Case to make. They have to comply with the copyright laws of the country. This is aoadcasters, business decision. I am an advocate. They will be happy to visit with a aereo about some way forward. But it isnt to evade the law of copyright. It is to respect that so that you do not damage creators as you develop new technology. I think the future is open. Copyright law is settled and satisfied in this country. If you were advising aereo, what suggestions would you offer . So im not their lawyers dont have any invites invites for them. I thought they were going to lose this case. It seems this was identical to what congress sought to prevent when it amended the copyright act in 1976 to apply copyright protection to Cable Television transmissions. Before that the copyright act had been interpreted by the Supreme Court to allow cable broadcasters to retransmit broadcast television. Congress said no, we dont want that. We want to make sure that this transmit of material is protected by the copyright act. The court said there is no material distinction between a Cable Television producer or transmitter and what aereo is doing. I dont have any advice for area other than to reevaluate their business model. How Many Americans could conceivably be affected by this ruling . How many receive television and video using an antenna . Using aereo . I think it is one or 2 of americans. I dont know how big aereo Customer Base was. This potentially affects any consumer who might want to have new ways of accessing over the air broadcast television in the future. With the Supreme Court decision said was that a new business cant rely on the words of the copyright act. Of the law essentially got thrown out to be replaced by this vague notion of you can do something that kind of feels like cable. Aereodon smith, was trying to use a loophole that existed in order to provide service . It was a pay service. That theylear to me thought there was a loophole. We did not see the loophole. I would simply correct the whord, the number of people get television over the air isording to a recent study 19 . 60 million americans who count , ander the air broadcast the content they produce is very valuable, and if someone wants to pick that up and charge someone else for it, they are required to deal with the copyright holders. That is what was upheld today. Disallow new technology. It simply says new technology has to obey copyright law. Thank you very much for joining me. They q2 gordon smith of the National Association of broadcasters. Coming up, u. S. Officials say the integrity of iraq is being threatened. Sunnis gain in the uprising. Coming up, what the secretary of said defense what is the secretary of defense do . And, william cohen. That is next. This is taking stock. Im pimm fox. Former Vice President dick comments on charlie rose. Was not a flawless war but i have never seen one that was. I dont hesitate to defend what we did. We can argue about it. Different people have different views. Watch the former vice interview here at 8 00 eastern. For more, lets go to washington. Cohen serve the istagon, and currently executive of the cohen crgroup. What would you be telling the u. S. To do right now . Them what be telling the president is telling them right now. Get as much intelligence as possible. Try to persuade the Iraqi Government they have to change. Either a change at the leadership level or to have some kind of a combination where you bring the kurds and the sunnis in to an inclusive government. Ed is going to be difficult to do. The kurds feel fairly a taunus. They have little incentive to hold the country together. South aren the satisfied that where their situation is. That leaves the middle, engaged in a civil war. The first thing that has to be done, tell the iraq you leadership they have to change. Whether that means mr. Maliki has to step down, and indicate he is ready to govern in a much more democratic powersharing manner. If he does not do that i dont think any military force exercise by the United States or others that will resolve the issue. The sunnis will continue to wage war against the shia majority and we will see a civil war that will be destabilizing to the entire region. Ofgive us your perspective what is going on in syria and how that connects with events in iraq. Isis are the most extreme form of al qaeda. Areas. Ve taken key they are seeking to establish a caliphate that runs through iraq and beyond. Aresyrian government starting to attack isis. Arequestion is, they attacking sunni militia whether they are isis or rebels launching an attack upon assad. Assad would like to bomb those areas, whether they are isis or not, to weaken the forces against him. Syrias playing a role. Iran. Re supported by it is all tied together. As tot is your estimate the iranian influence and events . I ran has played a major role in supporting maliki in iraq. A decliningite state but close to it. When Saddam Hussein was taken out for the most heart the buffer against iranian expansion in the region was removed. Now we have a situation with the shia majority. They have appealed to their narrow sectarian interests. You have a civil war brewing. Thats threatening to spill over to other areas as well. Jordan in a difficult situation with a flood tide of refugees. You have other elements of al qaeda on the borders. Very careful to make sure isis doesnt try to expand their operations into the kingdom. This is serious. Iran is beyond supporting the shia majority, and supporting assad in. Another potential civil war in the ukraine. Vladimir putin, mommy Russian Parliament to retake the authority of imposing any Russian Military insider the ukraine. The separatist down a recent ukraine government helicopter. What is going on there . There was a former attorney general back in the days of watergate. He said watch what we do and not what we say. President putin is saying the right things at this moment. I dont think it is being matched with his actions. Until such time as we see a much more substantive effort being made by president putin, we have to assume the rebels are going to launch the attacks against the Ukrainian Government under the quiet support of president putin. Sanctions should be intensified. That means it is going to require the european members to step up as well because it cant be just the United States imposing more sanctions. The europeans are not joining in those tighter sanctions or tougher sanctions and the United States risks acting euro lateraling, and the Business Community is going to reject that or reason that. It is going to be ineffective if on the United States is imposing sanctions. It is time for europeans to step up. Either were all in this together or we are not. If they are backing off this, it ongoing to have an impact the transatlantic relationship. This is one where russia has violated a key element of stability throughout europe. No military aggression against another state. They have done that. The europeans have to speak up and take leadership. Thank you very much for speaking. The chief executive of the cohen group. The Clinton Global Initiative starting today. Some top leaders are gathered to fight Economic Solutions to the nations ills. The formern with president , bill clinton, who for new world is ripe gauges of economic success. , the whole world is in a race whether they are conscious of it or not, to defend the terms of our interdependence. Ins say iraq is broken up this horrible thing that is going on. The land is not going anywhere. The big chunks of population are more or less going to be where they are. What this struggle is, and other example of people struggling to define terms of their interdependence, and will they be positive or negative, cooperative, or conflicting. That is a we have to do. We have to make it work. I would rather be us than any other country on earth. Solve the immigration issue, keep our workforce young, continue to improve our education, get back in the business of skills training, but dont say it is either or, the real problem we have with Vocational Training starting in the 1960s when i was going through it is that if you were going to go to college, you wanted to get out of shop and not a mechanics as quick as you could. Now that is crazy. The best schools are integrating academics and practical training. See more from our exclusive coverage of the Clinton Global Initiative summit on america right here on Bloomberg Television and bloomberg. Com. This is taking stock. Im pimm fox. Revealing a new version of its software for android. Jon erlichman has been at the event all day. Tell us about the new android tv as well as the wearable portion of android. The theme was android everywhere. And also wearable devices. That is an important area. We are watching the smart watch craze unfold. They going to make the software. Here is Dave Singleton explaining. The watch will be available to order later today in the place store. You might have caught a claims of a new devise. Family drawing the samsung is joining the family. This will be available for sale later this summer. Just the first three watches. There are many more on the way. People have been testing out this new hardware. It takes time before you know if it is going to be acceptable or not. I can see you with one of those watches. I think that we know there is an importance for samsung and these other hardware players to team up with the google and android software. Apple is around the corner with its iwatch launch. People can be fickle with technology. What about the track record . They keep trying. Lots of new ideas on the way. Thank you very much, jon erlichman. The new cover story features the head of android and is online and on newsstands. That will be friday. Air france is in the middle of a transformation to restore competitiveness and when customers. We have details. This is taking stock on bloomberg. Im pimm fox. Air france is in the middle of a transform plan. It has restored competitiveness to win more customers. It includes repositioning longhaul operations and betting on planes with adjustable layouts. Francened now by the air chief executive officer, alexandre begougne de junia. Thank you for being here. Lets talk about this transform 2015 project. How far into it are you . We have almost completed the plan. It has been launched in 2012 and will last until 2014. By the beginning of 2015 we will have reached our target. These targets, significantly increasing around 2. 5 billion euros for 2014. We will make it by the beginning of 2015. Areas been painful but we on track. Lets talk about the competition. The competition. They have not been standing still. Bed seems to be a differentiator. The reality is that it is now the standard. Bedave a complete lie flat with free access, plus a full privacy, full access. Standard. What we have done is we have dramatically improved the seats. Ce we have worked on materials. The cover, it is something different. And on the service. Product cannot live without good service. Is this what you are finding is they want that privacy . The private railway car field . We are sure. When you are a business traveler, when you travel once to twice a week, we become more than sensitive to comfort, privacy and, efficiency and. Lets talk about efficiency. I want to find out what you are doing to combat low cost carriers. You have competition with easyjet. What is your strategy to deal with that . We have a strategy to develop our own lowcost. Season smallis aircraft. A lowcosto develop carrier everywhere in europe. It will be quality lowcost. You work to earn miles. Provide services. When there is a cancellation, and it happens in the airline business, you are not left alone in the middle of the desert with no buddy nobody. We rebook him a them please send a plane. We rebook and sent a plane. A are they operating under different contract system . Completely different. Cost which isa to cents a seat comparable those of our toughest competitors. We are in the market. What has been the challenge with the unions . Has been toenge convince that we are in a crisis mode in 2012. , we wereefficiency targeting at that time, it was necessary. The point is that all the unions have signed agreements with us. It means that we have 100 that are fighting hard to recover and put the company back on track. Help with the unions under agreements that are the framework to reach our efficiency and our target. It is a dramatic achievement. The Airline Center had been under pressure, including air italia. Dhabirline based in abu taking a stake. 25 , 49 stake. You also have a stake in air italia. It has been diluted down to 7 . Now we are very strong partner. We have a bilateral partnership. Deltalso belong with the over the atlantic. This Partnership Benefits all partners, probably to more to air italia. Their interest is to maintain that relationship. As aink we see that friendly operation to us. You mentioned operation. What about the freight operation . The freight sector is in a different situation. You have overcapacity. The International Trade has recovered since the beginning of the crisis. And we have a strong competition from the shipping industry. We are shrinking capacity particularly by reusing the number of full fighter aircraft. They are dedicated only to cargo. 80 of our freight is transported in our belly. He you cant imagine what you have under your feet. Room onast point is leg air france. Tell us about what you are doing there. That is what passengers want. We have a flat bed and Economy Class among the most spectacular retrofit we have done. We have more space for your legs , increased by one inch. You have a c. You have leather everywhere. You have a border screen for the economy seat. You have plugs for your small frown or tablet. You feel like youre traveling in business class. Thank you for spending time with us. Alexandre begougne de junia. Go pro is set to price its initial offering today. As 27d raise as much million. That would value the company at 3 billion. It is a skyhigh price. Lets find out more from james geller. He is the chief executive of rapid ratings international. Joining us from San Francisco is cory johnson. I want you to just explain to people who may not be following go pro, this is a company that is trying to be more than just a camera maker. The camera is interesting. Baseball sized camera that and is virtually indestructible. I have seen them bounced off all kinds of things. When the earth is smoldering they will find where the go pros of surfers have lost. They have taken a big position in the extreme sports world. They are trying to move beyond that into being a media company. A go pro channel and using videos of these incredible video , oftenth these cameras mountain on helmets, taking these and using it as a Marketing Tool with a go pro channel on cable, even on virgin america. Soy are using the media not much to make money in the traditional way that media makes money on television but as a marketing devise for their cameras. Come in on the conversation. You put together valuation sprayed what did you look at . With you. Be corys explanation is a great one for the business. Rapid ratings looks at Financial Measures come in 62 of them across a broad array of performance categories. A zero100m on score. At 86. Pro is rated i attribute that to the fact that they are a very efficiently run company. They are doing very well. They are quite profitable. They are distinct by some in the other ipos that people have a choice to invest in. This company is profitable and it makes something. That is a big difference. This is a distinct opportunity that is differentiated. The company is not only , they are marketing as a media company, but this is a company with a better Gross Margins than 38 . That is not like out of the far east. Very strong gross profit margins. Its a positive thing here. The company did see falling revenues on a yearoveryear. Thequestion of how big is market for go pro cameras they are going to have to wrestle with. A little bit more from you. For are the potential risks go pro . Go pro is trying to make this expansion from this manufacturing playing into this media play. I think it is a smart one for them. They are inexplicably tied in their case per the images that come from their products are so identifiable. That is a great selling point for them. Like with any company, raising money him a significant amount with, andnd executing of course being public is very different from being private. Different level of scrutiny and management of shareholders and the marketplace watching you day in, day out. They have a lot of things they have to do. They are different from other companies. They have a strong base. And they can watch you all with a go pro camera. I want to thank you very much. Up, tony meola. We get his view of what it is going to take for soccer to gain a foothold in this country. That is next. The u. S. Is getting ready to play germany in the world cup. What are the prospects for victory . A 77 percent chance of advancing to the next round. Someone who will be watching this, tommy meola. Being here. R it is my pleasure. I know where you will be tomorrow. Glued to the set watching u. S. Versus germany. Am going to experience this at a watch party in new york city. I have been working through the entire world cup. I have the opportunity for the most important game to spend some time with fans. Im looking forward to it. What has to happen for the u. S. To prevail . The u. S. Will win the group. Germany will finish second with the tie. U. S. In second place pretty both advance. They are other implications. Portugal and ghana play simultaneously. Depending on what they do it could make a difference in what happens to the u. S. Germany game. We have our fingers crossed that we will get this thing done tomorrow. What has to happen on the field . Are playing one of the best teams in the world. One of the deepest teams in the world. The team that when you look at their roster has great players from start to finish. It is a team that we shouldnt fear. We shouldnt change tactics. I like what the u. S. Did it. Did. You need to possess the ball as long as possible in the most dangerous spots. Try to dod that, we that against portugal. We were one foot in the door unable to get into the second round. Having said that, there is a lot of positives that we will take into the germany game. One is the confidence of the team, how we have been able to get forward. It looks pretty good. I like how we line up with germany. Any biters . Im kind of hoping. It is a strange situation. I dont want to say. The saddest part, this has been the best world cup at least for seen. Ut i have great comebacks. Now we are talking muscle and biting someone at the end of the day. What does this mean for u. S. Soccer in the u. S. . We convert fans. They see the passion of the fans. You mentioned how you were amazed at the worker that goes into games. This and wes like try and convert fans all the time. I want to convert you today. We have our club and country scarf. This scarf here and you are rooting for a club in major league soccer, you wear the black side. When you are rooting for the u. S. , you where the red side. , our club and country. We are going for country. I wanted to give that to you to make sure you are ready for thursday. We have to convince continue to convert fans. Be continued to grow. Hopefully this will be a springboard for us. You where your scarf i wear mine. All right, if soccer isnt your thing, maybe golf. Were not talking your grandfathers golf. Were talking a 1000 payoff for a hole in one. T you have with topgolf. Now from los angeles, thank you for being here. Tell people what they can experience if they went to a topgolf location. Thanks for having me. , you will experience high technology, social experience. Allow you to hit balls into the driving range in the outfield and keep scoring compete with your friends, and challenge your friends pretty social experience is built around food and beverage. And having a good time. There is no quietude at topgolf is there . No. There is music, pretty constantly. Friday nights, saturday nights, other live and music. People are enjoying the Party Atmosphere as well as the good time with golf. Tells about the brothers that conceived this idea. , inhe brothers in england 2000 were playing golf and thought would be fun if we could keep scoring know more about it . They went off on this idea of putting a chip in the ball. They were able to pull it off. In the year 2000, that was a real feat. The demographics of those that are going to topgolf . Are onelf demographics of the most exciting parts for the company. Peoplenate with young from 18 years old34 years old. We get the whole spectrum but resonate with that group. 75 min so far. 25 women. A good demographic of income. Thank you. Executive chairman of topgolf. Coming up, the chief executive of one Company Looking to help you cool down this summer. That is next. With summer upon us you can expect blistering heat. There is a solution. Stay in the water. If you dont have water near you, how about Crystal Lagoons . They design mega lagoons. Im joined now by the chief executive, kevin morgan. Thank you for having me. How do you describe a Crystal Lagoons for someone who says lagoons are natural things . Patentedl lagoons has a concept and technology that allows the company to build and maintain lagoons in me where anywhere in the world, in constant clear condition, at low cost. How do you do that . The important piece of that, we are the first ones to be will to have this technology. Likes is it a Chemical Technology . What is involved . Look at swimming pools. The use constant disinfection, chlorine. They have built ration process you have to change the water. We useCrystal Lagoons, disinfection based on pulsing. It anticipates when the lagoon if they needed it is if it is needed to disinfect. It uses ultrasound. We use ultrasound is a way to conglomerate dirt and the lagoon and we have an effective way to remove it. Masslows developers to go to mass scale. Tell us about development. We have 50 operating lagoons throughout the world of which r a planning and development in 60 countries. Market. Is a strategic with the announcement today of a portfolio of four deals with Metro Development groups. This is off and running. Off and running in the u. S. And we are seeing massive demand in latin america. We have offers now in europe and amsterdam. Everybody can get their own private lagoon. Thank you. Kevin morgan, of Crystal Lagoons. Thank you for taking stock. Good night. Live from pier 3 in San Francisco, welcome to bloomberg west. Im cory johnson, in for emily chang. From the ski slopes to the stock market, go pro expected to price an ipo at any moment. Theyre expected to sell a 17 point 8 million shares. 427 million in raising the offering. That will give these guys a market cap of 3 billion