Syria, in that vacuum that has been created and they could amass more arms and resources there. Phil mattingly has been following the administrations response. What was president obamas goal and sending the secretary of state to the middle east . The u. S. Government and the president look at this as dual track. There is the diplomatic side of things. That is where the secretary of state comes in. He met with the Prime Minister this morning, the top shiite leader in the country. He is also meeting with the speaker of the parliament, the top sunni leader in iraq. What they are trend to do is push the iraqis to form an inclusive government. Take a listen. This is a critical moment, where together we must urge iraqs leaders to rise above sectarian motivations and form a government that is united in its determination to meet the needs and speak to the demands of all of their people. This morning with the Prime Minister lasted just under two hours. It was sure to be a bit of a complex meeting to say the least. The u. S. Has made very clear that they are not comfortable with the way he is leading the country. The Crucial Point that secretary is making while he is over there is that somehow, someway, iraq he officials must find a way to include sunnis and kurds and shiites together find some pathway forward to fight the insurgency. Wouldve the biggest problems . What is the biggest problem facing the u. S. . The thing that is currently pretty incredible is that what u. S. Officials are hearing are from the regional allies. Countries that are allied with the u. S. , sunni dominated, very concerned about extremist sunni insurgents and how they are moving right now. There is another concern. What role it ron play iran plays in this. The u. S. Said there may be a place for the two countries to work together. U. S. , jordan,the saudi arabia, sunni dominated, very and come to bowl with the shiite led iran gaining broader control over this country. How the u. S. Walks a very thin line right now with our allies is probably the most important thing and it is why you have seen secretary kerry make stops throughout the middle east and will continue to do so throughout this trip. Which and we expect from the president this week on iraq . We will say close eyes on what is happening, a big push behind the scenes for u. S. To blue medic officials on trying to get the Prime Minister to form that unified government. Areoes not have the seats now to take a majority on his own. How they were coalitions out is very important. I dont know if you will see the president speaking on this every day or any day at all. Now that he has made his initial steps forward, see have though subtle and before they settle in before they feel like i have to do or say anything more in the coming days. We have breaking news on the corporate front. Yet another acquisition. Oracle is buying microsystems for about 4. 6 billion in cash. Oracle is using some of its cash and putting it to work. Software,ms provides Technology Solutions for the hospitality and retail industries. Oracle saying it expands this idea of the internet of everything into another market. Micros for 4. 6 billion. We will keep you updated on this transaction. Moving and shaking this hour, the Supreme Court may decide as aon as this morning if the continue sending streaming content. Broadcasters say it could cost them billions of dollars. I spoke with the ceo in washington on the eve of the opening arguments back in april. Here is what he said about the main technological difference now, which is why he is so confident they will win. I dont think anybody can forecast what will happen. It is a fools game to do that. Min them because we feel very confident. As a matter of law, we are dead right. But it is the United StatesSupreme Court and nobody can predict. One of his big investors is billionaire barry diller. He said there is a 50 chance aereo will lose and a 50 chance it will win. The American Apparel founder is gearing up for a battle after being ousted as the ceo. Julie hyman has been following this story for us. Chardy is the single largest shareholder charney is the single largest shareholder. Not the majority. He would still need support from other shareholders. One of our reporters talk to one of them. He runs a Company Called 5t capital. He owns 13 of the shares. He is not necessarily prepared to support charney. Hed said he does not have all of the facts behind the ouster. Timeey could have a tough in this fight against the board. He says that he might sue the board, that his ouster was not proper. There are still a lot of steps to be taken. Do we know more about what happened . We talked on friday about charneys controversial history of various lawsuits, all of which have been dismissed or settled, most filling with Sexual Harassment of some kind. Dealing with Sexual Harassment of some kind. It sounds like there was some investigation into his conduct on the part of charney having to do more refinancing. Western misappropriation of funds . Did he let family members use company paid Hotel Members rooms inappropriately . And there is the question of retaliation. He may have retaliated against one of the women who have sued him by allowing a subordinate or he directly allowing pictures of this woman to be released as a form of retaliation. It seems that that may be the crux of the issue. This is according to someone familiar with the company. They have not come out and disclosed exactly what is going on. American apparel has been struggling to some extent. Charney has created this brand around himself, made it edgy basics, if you will. Become a like h m have more formidable competitor. So much. You julie hyman, our senior markets correspondent. Did you see this game . In neck and neck battle between the u. S. And portugal in the world cup, with the u. S. Losing its lead in the final seconds. Meansre on what this time to america posturing is, we are joined by eric. That was a crazy game. That was a crazy game. With one minute ago, the u. S. Had a 98 chance of winning the game. Chance ofad a 0 winning and a 2 chance of tying. Know wanty you do not to how the results happen, you just want to see the final score. It is more upsetting to know that they could have one. Won. What happened to the u. S. Team now . Ofnow they have a 77 chance making it into the knockout stage. They still have a good chance of making it to the knockout stage. They have a good shot. It is going to be all about what they do against germany. What are the odds here . They have a 32 chance of winning or tying. If they win, they are in. That is why the could be ideas if it could be corrupt. If they both tie each other, they are in. If the other teams tie, theyre both out. It matters how both games turn out. That is why theyre going to play at the same time. What if the u. S. Loses against germany . If they lose against germany, there is a chance to get in, but only if portugal or ghana wins their game and they win their game by a big enough score that they can keep the u. S. In the tiebreaker. The u. S. Wants the other game to tie. If the other game ties, it does not matter what they do against germany. There are a lot of scenarios to play out here. Did you spend this weekend mapping out the odds of all of these teams . I think a lot of people were doing that and a lot of people were getting it wrong. You saw a lot of updates on twitter and a lot of corrections. It is not that easy to figure out right away. Thank you, eric. To get the latest world cup news, analysis, and predictions, had to world cup bloomberg. Com, rio. See what is coming out of the conference of mayors. Life in the fast lane. Get ready for a showdown between harley and a rival over electric motorbikes. Stay in the loop. You are watching in the loop. Live on Bloomberg Television. All weekend long, mayors from across the country gathered in dallas for the annual u. S. Conference of mayors, aim to promote effective urban policies and to strengthen ties between cities. The mayors tackled everything from income inequality to racial politics after the Donald Sterling fiasco. A democratnow is hailing from akron, ohio, who has served as the president of the u. S. Conference of mayors before. Mayor, thank you for joining us this morning. What did you get out of this weekend so far, mayor . We have addressed just about every issue in the United States and one of the things we talked about is that mayors take responsibility in their city. Many of us to not have Legal Authority over the schools, but we know a good education is one of the most fundamental parts of having a good community. We get involved in the schools. We are involved in climate protection, trying to reduce the carbon footprint. There are a lot of issues we are involved in. Thats right. I imagine there are a lot of issues to tackle in almost all of them seem just as important as the other one. How do you figure out, among you mayors, how do you figure out what you are going to tackle in the next three months, six months, what is most urgent . We have a resolution process. There is an official policy resolution. We put it in writing. That is the charge to the staff. To lobby on the hill, put it in the white house, to do the necessary things in washington. Were doing things and task forces and committees to address things as they come up. The Donald Sterling singh, who would have imagined in todays world that that would have hit . The Donald Sterling thing him who would have imagined in todays world at that that that would have hit . In sports involved franchises. We have Major Investments in facilities. Those issues that are social, that address issues in our society, i think mayors are leaders and it has been a tradition this is our 82nd year of meeting and we literally address every issue that affects our citizens. Thinks one, especially about Kevin Johnson played in the nba, great allstar, lived in akron, ohio, when he played for cleveland, there is another crossover, with kevin being the president. You mentioned the whole Climate Change issue and how mayors are signing on to fighting Climate Change. You know hank paulson, the former treasury secretary wrote an oped in the New York Times and he said, we are staring down a climate bubble that poses enormous risk to both our and firemen and economy. The warning signs are clear and growing, more urgent as the risks go unchecked. To see ae are going climate crash, the way we saw one of the financial crisis in 2008. How alarming is that to you . It is very alarming. We have been working at this for years, looking at ways in the cities to reduce traffic, reduce the carbon foot rent footprint. We have been addressing our local level, lowering our carbon footprint, the amount of carbon that goes in the air to deal with planting more trees, doing things environmentally sound to be able to protect the environment. I happen to think it is a very important issue and i use it like Life Insurance. Do you see it as a climate crash . I am not an expert on that, but i believe in experts. All most every legitimate scientist comes down on the side that we are having significant Climate Changes. If that affects my grandchildren, i am very worried about it. I want to leave a better world to my grandchildren. It is something that our generation needs to do and address and a realistic way and we may not absolutely have a crash, but it is like Life Insurance. We all dont die everyday, but we pay our Life Insurance premiums. It is something our country in the world has to address. Did your republican colleagues sign on as well . Many republicans feel that what is good for the country is not a political issue and that issues are not rightwing and leftwing and all the kinds of things that they get involved and in washington. Therewas an old saying, is no republican or democrat way to pick up garbage, we all of responsibility. I think this group works better than any in the country to bring together democrats and republicans to work on issues that we face. You know the republicans have been the ones who have blocked any type of remedies that have been proposed on Climate Change. , i understand that. That is what folks in washington are working in a different way than we work here. There are differences. I have differences within my own party on how to proceed on various issues, fighting for jobs, trying to address public safety. I think this group comes together in a nonpartisan way, as much as possible, as much as anyone in our country, to address issues that are not really a republican issue or democratic issue. Incomethese are inequality, the issues Maria Shriver talked about yesterday for women, these are not republican or Democratic Women having problems, they are citizens of the United States. The sooner washington realizes that and listens to mayors, the better off our citizens in countries will be. Thank you so much. The mayor of akron, ohio. At the mayors conference in dallas. In harleytohead davidson. A clash of electric motorcycles. Anchors away for purdah rico puerto rico. You are watching in the loop. Live on Bloomberg Television. Good morning. I am betty liu. Here is a look at our top headlines. Is ousted ceo of sterne agee facing a probe into whether he misused assets. Jets, boats, and condominiums may have been misused. Nissan and honda are recalling almost 3 million cars together. The japanese automakers recalled the 3 million cars to recall repair flaws in airbags. Recalled just over 2 million vehicles including the fit and scrv. The kevin hart comedy think like a man too was the big winner at the weekend box office. It took in north america. 2 jump straight finished 22 jump street finished in second place. Bloomberg television is on the markets. Julie hyman has more. Were about an hour away from the bell. Gold futures are in the red after finishing higher for the Third Straight week on friday. Joining the with a look at what is moving the price of gold, bob igeochino. We have seen this snap back in gold recently. It is really interesting after the big down year it had last year. Bob, what do you think we are seeing here in terms of where we will see gold go from here . Some of the impetus comes from what we are seeing in iraq. Will the the continued will it continue to be a reasonable buy . I think so. You are looking at the first backtoback positive quarters for gold. I think the fundamentals for gold in the mediumterm or not that great. We are on the other side of fed easing. In the euro zone, we are getting stages of aggressive easing. Other than the dollar, the other currencies are going to be weaker and you will continue to see Global Demand just a stone that just based on that. Greg, you are not seeing i mean, you are seeing the underlying reasons for gold to be week that are still there. Not enough counterbalance . You definitely cannot ignore the huge volume search we saw on thursday on the back of the greater than expected cpi number. The etf trading 24 million shares. On the backside of that, you have flows into that etf and open interest on the futures contract still a multiyear lows. Until you get real money coming in from the sidelines, i think most traders will be looking to save this move higher. Bob is not one of them. Can you tell us what exactly what trade you will be putting on gold right now . I am long gold as of early this morning and i will stay long gold until we get to the 1300 level. I think of we test 1300, it will be a bit of a run down. You get almost a 31 reward risk. I think a lot of people, in the past couple weeks, have been incorrect how dovish the fed is going to be. I think short to medium term, you will see gold fairly easily. You would put a stoploss on the gold trade. Absolutely. A larger fundamental from the gold, we are going to see a move past that 1200 level. Short to mediumterm term, we are talking about a trade here. Got you. Lets put bobs trade in laymans terms. If you look at gold, it is training around 13 14 an ounce. Gold trades in contracts of 100 ounces. He would make a total profit of per contract in this theoretical situation. Rolls over. What does that mean . All futures contracts expire. The most active contract expires in august. A couple of weeks in july, traders are going to be looking to liquidate their august contract that is going to expire and roll it over into the next act of futures contract, which would be december. They liquidate one and use the money from that to buy the next contract out. Exactly. There is also another component. There is a spread between those could two contracts. You have those who just trade the spread itself. Thanks so much, as always. We appreciate it. We will be on the markets once again in 30 minutes. Thank you so much. Julie hyman, our senior markets reporter. In just a few hours, something exciting for any gearhead. Harley davidson will unveil its First Electric bike, right here on Bloomberg Television. We will get the first look here. They will not be the only game in town. Manufacturerargest of fullsized electric motorbikes. To see how they will take on one of the most Famous Brands in the world, we are joined by zero motorcycles ceo. Think you for joining us. You are very welcome. Delighted to be here. How do you feel about harley getting in on this . We think it is fantastic. When you have the worlds most iconic motorcycle brand but a stake in the ground and say that the electric motorcycle is the future, it is very exciting for everybody involved. What it basically says is that electrics are not scooters anymore. They are serious motorcycles. Has that been your Biggest Issue and trying