They go on sale at over 17th. Apple had to first agree to improve User Security and privacy. I have been seeing some of those out there. Back to the big news. Ebay announcing it will separate ebay and paypal the businesses. American express executive dan shulman will be the new ceo for paypal, postseparation. He joins the Company Effective immediately. Bloomberg intelligence paul sweeney joins us now from princeton new jersey. Also with me as skycard is, the founder and former ceo of about. Com. Web 1. 0 as we talked about earlier. Want to turn to you first. You were building about. Com at the same time yuan must was building elon musk was building paypal. You guys were all first generation. This deal makes sense. Jobs growingt paypal. But we are high were going to have a massive disruption. Little card is not as productive as my iphone 6. We use braintree, which is an ebay company. It gives me pause. Ebay wants to use our data. We run a market place, we were ebay runs a marketplace. It doesnt mean they are not seeing her data. They are processing your payment. They process the front end. We do double payment. We pay with another series of financial instruments. The financialthat industry has gotten more complex. It makes sense. Two weeks ago, paypal got whacked twice. Maybe carl icahn thinks he was the reason for this. I never like Financial Guys trying to dictate to technology companies. To weeks ago, back to back days, twiddle twitter and apple went on strike. There were sitting running both, you go wait a second. Im seeing the competitive issue. Two days in one week, two days ago. Deal. K that is a big two Major Players going with their competitor. It is a great point from scott. ,aybe things change so quick the firemen change so fast, the john donahoe had to make this about faith. The timing is very odd, given that carl icahn is pushing for this transaction, not just nine months ago, but i think this transaction is about two issues. It is about ebay stock price. Paypal is the fastgrowing highmargin business within ebay. Separating it clearly will have a major impact on the stock. Just given the growth trajectories of both businesses. It is certainly positive for the shareholders. I really think it is about paypal. Im sure the paypal folks were pushing for the separation, because scott mentioned, the payments business is rapidly changing. They need to go out and pursue business transactions and other Business Partners outside of the ebay platform a. It is beneficial for them strategically and competitively to be separate from ebay. Ebaymains to be seen what gets out of being separate from paypal. That is less clear. This seems more like unlocking paypal values. Unlockingmbination of paypal value, at a time when the competitive fervor is so great. Apple pay is an interesting new products. It will take a while, since google shut their checkout system down a year ago. This stuff is not easy. Google wallet failed. Its been exactly a year ago this month. Paypal has some of those same issues about being coupled with another company. An entity as powerful as google couldnt do it. Paypal being unfettered its not just unlocking value. Its unlocking the competitive issues. Being unshackled from ebay. One is a Payment Company come a one is a commerce company. While there was synergy there, and it helps paypal grow, there comes a time that when you break them apart, they both get to run. This issue of sharing data. You weresaying that getting uncomfortable about sharing data with ebay, which is your competitor. Do you find that is a similar situation for other Small Businesses and other upcoming businesses . You dont know what they are doing. It is a black box. The same thing is true with google. We use documents in mail, and who knows really what is being done with that information . Appropriate paranoia. You always need that in business. [laughter] we are close to apple. Since we launched, apple is featured are universal cart or it 90 days ago. We watched with interest that apple did not engage with braintree. They say they will have apple tech. Apple will strike first, twitter when the strike first, maybe we shouldnt be shackled. Without we need to leave braintree. Braintree says no, we are going to have that too. I think that it unshackled paypal, with another businesslike braintree that john has pieced together quite brilliantly its time for them to be split. What you think will happen next . Post blitz, what we see out of ebay and paypal . That will be the most interesting aspect for paypal. Paypal has been such a Great Success story. Largely on the growth of ebay. Mentioned, thett payments business is going under a terminus amount of trains change. They are free to pursue other Business Partners, free to partner with other major platforms out there. Whether it is pointofsale business opportunities, or just other ecommerce platforms. I expect them on a new Business Front to be very aggressive, and continue to drive their topline growth. That has been the growth story of ebay over the past couple of years. Are there any obvious partners right now . I think anything on the ecommerce platform, whether it is a standalone amazon, or a er looking for a more flexible you payments opportunity. Paypal is certainly someone most ecommerce players, if they havent talked to in the past, a are certainly going to have more incentive to talk to now, now that paypal is a standalone independent company. Unshackled as scott was saying. Inly chang had done interview with one of the initial paypal founders. This is what he said about potentially splitting off the company. Should paypal be spun off from ebay . I think there are large synergies between paypal and ebay. Maybe it is something we should consider at some point in the future. I think ebay was right to resist carl icahn. We dont want him to be dictating whats a look on valley does. It sound like it was more about we dont want carl icahn. Some high finance guy coming in and telling us what to do. But eventually these guys had to admit, and it seems that way today, that this was better off. Why did they resist for so long . The world changes everyday. A look at the fact that apple, which we always assumed would enter the payments business they have it at a billion credit cards. 800 million credit cards. It whacked him across the face, this is real. I got to see what consumers are saying. Is amonths ago to today different thing. If you are running a company, you hate to split it up. Its only one guy who says i dont even power, im willing to split off and run a smaller company. Most people like to run a big company. Paypal is a more interest in business than ebay. See, it isesting to a coup i think for them to prepare for the spinoff. It also makes both companys bitesize for alibaba. But iould take a law, think alibaba is probably more interested in ebay than the payment system. Its what they do in market places. They are quite behind in the u. S. Making bothgue that pieces bitesize is actually a good thing for them. That is interesting. We will see. Stay with me, we talk more with scott kurnit. Paul sweeney, thanks for joining us. Are looking up for apple and china. With the iphone maker may be in trouble in europe. Company may have to pay millions of euros in back taxes in ireland after the european urine union said it benefited from an proper tax deals. The eu isre on what accusing and ruling on apple. Is a 21 page document that was put out today. Very detailed. It talked about the tax deal that is existed between ireland and apple the dates all the way back to 1990. And what effectively brussels is saying is that this tax deal may have we still approve all this. May have been illegal. Fact that it the may have been motivated by employment conditions. I. E. , this was a tax deal for jobs. None of this is proven, and apple is making it very clear at the moment that it receives no selective treatment. What could this mean for apple . How much money will he have to pay up . Big numbers. It could run into the billions. We will wait and see what happens here. This is the first stage in what could be a long process. It has been going on for little while. This is the public event we are seeing surrounding this. It could amount to billions. We dont know yet. We will have to see how this all works out. It will take a long time to get this one done. It could be a big number. It could be in the billions. Apple is not the only one being targeted. I have to say, u. S. Tech companies are very much in the crosshairs here in europe. Not just Tech Companies, but he is like starbucks as well a very much in the crosshairs. Tech companies in particular seem to be in the crosshairs as well. Amazon is well could potentially be on the list. Yesterday the british chancellor was talking about the fact that the u. K. In the autumn budget is going to be going off of after Tech Companies as well. They want to get the tax field level here, and that means theng the double irish double taxing that ireland has in place the benefits tech cavities. Back to you. I thought that was the name of a drink . [laughter] guy johnson in london for us. The nfl may be on the verge of getting sacked. Regulators deciding to lift a viewers hate. Advertiser spending the bulk of money on tv, but digital ads are on the rise. It that week here in new york. We will be back. In new york, adweek is kicking off. On the same day google announcing to make it simpler to get more advertising on ever but a smart phone. The search giant, which is a dominant force in digital advertising, is implement and ing toolsimplement that resizes ads for your mobile device. All to make it more knowing for you. The me is scott kurnit, founder and former ceo of about. Com, and the ceo of keep holdings. Which by the way, is sort of like an advertising platform in and of itself. Advertising has shifted. I have an unfortunate definition, which is as there is something you dont want to see embedded in something you do want to see. Ive learned that from a lifetime of being in the ad business, watching commercials and of shows, all of that. Most ads are not good. They are annoying. Theres 5 or 10 , and those ads love being surrounded by other ads. During the super bowl. During regular times, i will see a good ad, bad ad, advertising is broken right now. The consumer lives in an interactive world. You dont need to watch them. Even if hulu runs an attitude, you tweet or check email, and then you come back. The new going to the refers rater is tweeting. Refrigeratoro the is tweeting. Google is in trouble. He was really lambasting google and saying their market share is going to continue to fall. They have been hit by you regulators, who are threatening that you should be broken up. They are being hit on all sides. The clicks are declining, the revenue for click is declining. They are coming out with products like this, trying to make it more automatic and more effective. The world is going mobile. Ive never heard the words google and trouble in the same section same sentence. I would like to be as in trouble as googles. Is a tough one, because consumers try to avoid the ads. We have native, which is also a bogus term trade it means trick the consumer without going to jail. Weve seen it in magazines. Magazines of the most interactive medium we have ever seen. No batteries, doesnt crash. World ofteractive webpages or videos, the westin is how do you put these ads in front of people the question is how you put these ads in front of people. We are tricking them. Native is going to change a lot. If you think about the beginning. Years ago, then are ads nativeads were kind of to the webpage. The consumer figured out the top in the side is where all the ads are. I dont look there. We see that with i tracking. And sayut them in line sponsored a small as we can without the ftc coming down on us. And that is a problem. The ftc is going to get its hands around it advertising. You think so . They have to. If the consumer doesnt easily know its an ad, that is a problem. Its a problem with brands. Or any of these media brands. The public is not stupid. If you actually trick them and say, this is content, you have diminished the brand values. Thegreat brands, bloombergs, the new york times, they have the biggest problems. They cant run these native as to play trickery. There is an integrity. You dont want to trick the viewers. When you look at Companies Like buzz feed, when you hear they had a 2 billion valuation based on ad revenue, a good chunk of that comes from this native advertising. Im not sure people understand exactly how much of that is out there, and how lucrative it is. Not a good chunk, all of it. He tuned to this at huffington post, and buzz feed is like half 2. 0. Huffpo they do it very well. Buzz feed is not the new york times. It is easier for them as a brand. Legacy brands for all kinds of reasons have trouble. On a final note with that, a matter how lucrative it is, and mcdonalds or cocacola is never going to make a big ad buy as they would on a television program. Advertising is going away and marketing is going to replace it. Someone in the ad business looks products, those are all native ads. The advertiser doesnt buy them, because the Public Places them there. That makes a big difference. Scott, great to see you. Scott kurnit, founder, chairman, and ceo of keep holdings. We are back in two minutes and it in the loop. You are watching in the loop, live on television. Im betty liu. Ebay is spinning off its paypal operation. The worlds Biggest Online marketplace, and its payments unit will become too public a traded companies. Carl icahn had campaigned for the split, and it looks like he won. Netflix is getting ready to make its bigscreen debut. It is seeming up with the Weinstein Company to release a sequel to the author winning film crouching tiger hidden dragon. The movie will be released globally in select imax theaters. Simultaneously on netflixs streaming service as well. This will be next summer. You can get that movie first on netflix. The u. S. Is poised to become the leading producer of liquefied petroleum. It is expected to overtake saudi arabia as early as this month. U. S. Oil industry has been transformed by the shale revolution, and advances in hydraulic fracturing. U. S. Crude production is on track to break 9 Million Barrels from 5 million in 2008. [no audio]time, despite the declines you saw overnight, particularly in asia. On the back of these prodemocracy protests in hong kong. You did see stocks drag out like this yesterday. We are on the markets again in 30 minutes. We will get housing numbers as well at night 00. 9 00. This friday, the Labor Department will be releasing its final monthly jobs report ahead of the november elections. The last look at jobs before go to the polls. U. S. Isment in the stubbornly over 6 . The fed is unsure about the economys grip on recovery. Both republicans and democrats will seize on these job numbers to make political points. Duo ofto bring in our all things political, former congressman martin frost, and tom davis, republican of virginia. Thanks for joining me. Tom, let me start with you. Republicans have been so critical of the jobs recovery over the last several years. Within the last six month, we have seen a pretty steady rise in jobs. The republicans have not much to go on here with the economy going into the elections. The recovery has been very uneven. I think a lot of americans havent seen a recovery. It is still over 6 , which is historically high. This is six years of the presidency. I think the economy may not be hurting the democrats as much as it has in the last election or so. I dont think it is really an asset. The term elections are more than the economy. Martin, what is your take on that . Democrats cant go in thumping their chests, saying we did a great job. Unemployment was up, the economy was in trouble, when president obama took office. It is down your 6 now. The stock market is up. The economy is doing reasonably well. You could always do better, but it is not an issue for the republicans at this point. This election will be far out statebystate. There will be local issues. Republicans will attempt to nationalize this, say vote republican, dont vote democratic. The Democratic Candidates will talk about what they have done in particular states. His election is on the cusp. It is very close. If anything the economy is slightly helpful to the democrats at this point. What will be the big issue martin, in your view. . What will be the defining force or issue for these voters as they had to the polls . It will be statebystate. You have democratic incumbents running in red states. Tough districts. Tough states to run in. Republicans have their own problems. They have a problem in the state of kansas with pat roberts, questions about whether he can be reelected. A problem in georgia, democrats have a shot at reletting electing michele knight. A lot of money have been spending in this race. Money is a big piece of what has been happening in congress. The book comes out in january. You are writing a book together . It is fun. , and what itnship has done to congress. We have suggestions about the future. A shameless plug. To understand, the senate races this year are basically all republicans have to do is get whats theirs. In states that romney carried. If they win the senate races in the states, they take the senate. You have states like iowa and colorado that are purple and on the cusp. Midterms were fought basically on republican territory. In the house come of the seats are so gerrymandered, its not up for contention. The question is how many seats , butrepublicans add it will probably be a single digits. The senate is up for grabs. This thing is tight. And that gain of six seats is a lot. But its not inconceivable. Thing is far from over. You have democrats running in red states who are strong candidates. Mary landrieu is a strong candidate in louisiana. Kay hagan has a pretty good state in north carolina. You have to look it everyone of these races, and what is going on in the states. I think it will be a very interesting election. Six seats is the average game gain for the up party since world war ii. Look at the amount of money being spent on both sides. You cant really tell what is going on. In some states, the democrats have outspent the republicans. That is remarkable. Look at california. California doesnt count. [laughter] that muchnia, not money spent this year. Only 2 billion 2 million in the republican race. Its pretty lopsided. If the republicans to take the senate, what do you think will be the biggest difference for business in the United States . What w