The former world cup goalkeeper for the u. S. Talks soccer over 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. The u. S. Supreme court ruling it violates the copyrights of broadcasters. It is a setback for aereo and aereo only. There are arguing before the Supreme Court was to mislead the court 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. They will continue to get that. What area was doing was taking our technology and selling it to the consumer. Aereo reacted to the decision 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, a partner at 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 impact is going to have on other internet technologies, especially audio visual 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. 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. They went out of their way to make it clear that this decision would not necessarily apply to another set technology. Or different technology. We will have to wait until the next case. On these facts with these technologies, this is a violation of the copyright act. Mitch stoltz, is the ruling specific enough to let other Technology Take the lead . It is not specific enough. It uses a lot of weasel words like saying aereo was similar to cable, that customers primarily pay for the privilege of watching video. Words like similar and primarily are invitations 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. I think broadcasters, this is a business decision. I am an advocate. They will be happy to visit with 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 . Im not their lawyers so i dont have any advice 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. What the Supreme Court decision said was that a new business cant rely on the words of the copyright act. The words 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. Gordon smith, was aereo trying to use a loophole that existed in order to provide service . It was a pay service. It is clear to me that they thought there was a loophole. We did not see the loophole. I would simply correct the record, the number of people who get television over the air according to a recent study is 19 . 60 million americans who count on over the air broadcast, and 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. That does not disallow new technology. It simply says new technology has to obey copyright law. Thank you very much for joining me. 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 does the secretary of defense do . Former secretary of defense, william cohen, that is next. This is taking stock. Im pimm fox. Former Vice President dick cheney made comments on charlie rose. It 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 President s interview here at 8 00 eastern. For more, lets go to washington. William cohen served at the pentagon, and currently is executive of the cohen group. What would you be telling the u. S. To do right now . I would be telling them what 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. It is going to be difficult to do. The kurds feel fairly atonomous. They have little incentive to hold the country together. The shia in the south are 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 iraqi 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. Give us your perspective of what is going on in syria and how that connects with events in iraq. Isis are the most extreme form of al qaeda. They have taken key areas. They are seeking to establish a caliphate that runs through iraq and beyond. The Syrian Government are starting to attack isis. The question is, they are 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. They are supported by iran. It is all tied together. What is your estimate as to t\he iranian influence in events . Iran has played a major role in supporting maliki in iraq. It is not quite a declining state but close to it. When Saddam Hussein was taken out for the most part 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. They have to be 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, calling on the Russian Parliament to retake the authority of imposing any Russian Military inside 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 the United States risks acting euro lateraling, and the Business Community is going to reject that or resent 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 is going to have an impact on 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 find Economic Solutions to the nations ills. Sitting down with the former president , bill clinton, who said the world is ripe for new 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. Lets say iraq is broken up in 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. If we can 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 auto 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. Google 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 are 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. Samsung is joining the family. This will be available for sale later this summer. These are 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 win 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. Im joined now by the air france 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. It has been painful but we are on track. Lets talk about the competition. The competition. They have not been standing still. The lie flat bed seems to be a differentiator. The reality is that it is now the standard. We have a complete lie flat bed with free access, plus a full privacy, full access. It is a standard. What we have done is we have dramatically improved the existing seats. We have worked on materials. The cover, it is something different. And on the service. The best 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, efficiency. 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. We operate this season small aircraft. We intend to develop a lowcost carrier everywhere in europe. It will be quality lowcost. You work to earn miles. We also 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 nobody. We rebook and sent a plane. Are they operating under a different contract system . Completely different. We operate at a cost which is 4. 9 cents a seat comparable to those of our toughest competitors. We are in the market. What has been the challenge with the unions . The challenge has been to convince that we are in a crisis mode in 2012. That the efficiency, we were 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 employees 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. The airline based in abu dhabi 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. They also belong with the delta over the atlantic. This Partnership Benefits all partners, probably to more to air italia. Their interest is to maintain maintain and that relationship. We think we see that as a 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. The last point is leg room on 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 lighter seat. 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