in the u.s., when apple gets asked about paying taxes on that amount, on repatriot and apple says 40%a really high amount to bring back, you wouldn't want to be taxed that money on money trying to withdraw over sea when is it gets asked about stayipaying ta apple says the value isn't based on where the goods are sold, it's based on where the intellectual prurpt operty is created, that was in cooper tti, to be re-patrioted to the yes, a area, and they're arguing to u.s. lawmakers bring down that tax rate to repatriot. everybody arguing over this big pile of cash, and from all appearances, apple has a very strong argument they're obeying the letter of the law. >> these companies use transfer pricing to shift intellectual prices and direct the income associated with that intellectual property, taxable income that'll go to the u.s., where they're taxed at a very low rate, ireland being the key one for them. >> and these laws were written before the digital area we live in, before we had these software firms. take a look at what's happening in silicon valley, look at the tax rate apple pay

evidencewe have more about apple will stop the biggest drag on stocks is apple.ission has amended the island recoup some of the taxes. >> now ireland saying it does not want that. we will hear from both sides, from eu regulator and the finance minister this hour.

. >> apple pay. the european commission hits the tech giant with a $14.5 billion bill for unpaid taxes. reaction fro and what does it m .or other >>> hamburger sales are slowing and that's causing problems for companies. so, is the burger bubble bursting? and rocky mountain high. why colorado is fast becoming a "b for the latest space race. good evening and welcome. i'm sue herera. tyler mathisen is off this evening. the european union's antitrust regulator slapped apple with a huge bill today. its reason, eyreland granted the tack company unfair tax breaks for more than a decade and the back taxes come out to a whopping $14.5 billion an apple isn't happy saying quote, the apple's commi history in europe. the sper national tax system in the process. the case is not about how much apple pay is in taxes, it's about which government collects the money. it will have a profound and harmful effect on investment and job creation in europe. apple follows the law and pays all of the taxes we owe where ever we

the rotten apple. new york institutes a tax penalty on the company. >> apple has to repay the benefits worth up to 13 billion euros plus interest. >> it goes beyond just apple. it can have an impact on the transatlantic trade deal. it is already in jeopardy. negotiations between the eu and u.s. have stalled and he says the deal is unlikely to come to fruition. and an unlikely day of rescues. the italian coast guard says 6000 migrants were picked up inside the mediterranean. many more are expected to attempt the journey this week because of favorable weather conditions. ♪ >> i'm brent goff, it is good to have you with us. 13 billion euros and don't forget the interests. status is much the european commission demands apple payback in back taxes. apple says it will appeal that decision and ireland says it does not want money back. >> ireland posh tax rate has attracted scores of multinationals to the country. it has now been tololto pay ireland d back up to 13 billion euros, a record some. the irish gover

and not just apple, but other u.s.ech companies. >> from a valuation perspective on the scale of 1 to 10, 10 being really bad, it's probably a 2 or 3. this is something that will impact some of their cash. we are talking about getting cash back to the u.s. that's the and goal ultimately for apple, and there needs to be some sort of tag for it. this is 2 or 3 in terms of severity. ultimately they will have some small fine and hopefully in the next presidential cycle we will have some tax holiday where applicants will bring it act may be at 20%, -- back maybe a 20%, something more reasonable. emily: the european commission has for some companies to the government of belgium, the government of the netherlands. what sort of cascading issues could you see after we get this decision from the european commission? >> one issue is that any taxes paid in europe are a credit against u.s. taxes. there is commented about defrauding the u.s. government. i think that's too strong. this is tax deferral. any taxes paid in europe would

this is very reminiscent with what happened with apple and google when eric schmidt was on apple's boardd then it started getting into mobile phones and so on. i think you're starting to see the same thing where it's a bit of the opposite where, you know google was working in driverless cars and now uber is doing that. i just don't think it makes sense for drummed to be on the board, especially as uber is also working on mapping solutions, and there's lots of different things where they're competing, and i think it only will become large as they move forward. >> can't they only help each other, google, uber and ford all launched a coalition together to develop self-driving cars, so it appears they want each other's help. >> i think they want each other's help right now, but not in the future. i think that, you know once they start to make these driverless cars that are truly autonomous, which it's up to debate when that will happen, these companies will all be competing with each other. it's not just uber and google and forte. it's startups. it's every car company. they're not going to k

now, let's take a look at apple. shares are trading lower on news the company may be -- is facing a $14.5 billion tax bill from the eu, plus interest. this after the european commission said ireland is taxple'slashe bill. gene munster thing he is unconcerned about this vonnie:. vonnie:the stop only up slightly on the year. going to be very interesting. a lot going on in the next two hours. stock only up slightly on the year. what is going on with european markets gek? toes.i am on my 90 minutes left of the tuesday's session. one industry group falling today. strong dollar. by one point 9%. check out some of the individual mergers -- movers. wasgerman payment processor upgraded to equal weight of barclays. barclays says the company has built a strong, strategic position for product in regional perspective in the past decade and said well positioned. price tag up by 21% to 58 euros. 89% of analysts have a buy rating on the stock. you know the company, the world's biggest immense maker. m hold.raded to buy fro it says t

i'm not negative on apple. i just don't worship at the temple of apple. think they have a lot to prove. they haven't done a great job proving the naysayers wrong in terms of innovation so it should trade as a normal consumer product trade, period, with a lot of cash. >> all right. good stuff. still a lot more -- there is a lot amore ahead on the halftime report. >> kevin o'leary is just getting warmed up. as we wait for the fed minutes, kevin is answering your questions on the markets. send them through twitter at halftime report. and missing the target. the stock taking the beating. does target have problems or is it simply most of retail. more half time with scott wapner coming up. >>> welcome back to "halftime report." counting down to the fed minutes. 1 hour and 38 minutes away. kevin o'leary is still with us. do you think the fed is too complacent with the fed next month. >> we are all trying to second-guess the fed and the debate that goes around every day in my shop is the financials, the one place where we haven't seen extreme p.e. expansion and i

it's not only apple.ber, you've got companies like microsoft that are making heavy investment, alphabet, google, of course that are also investing in ireland. so for ireland, this is very awkward. they want to protect those relationships. if you look at what the commission has done historically, they've already ordered apple to pay money to italy as well. it's not just apple's setup with ireland in focus. other european countries where it's operates. the spillover affecteffects cou far larger than just ireland. >> we will await that ruling from brussels. thanks for joining us this morning, julia chatterley. >> >>> still to come, top countries in this country. >>> plus soccer fans. this could be the craziest goal you've ever seen. stay tuned. you'll want to see. >>> before the break, let's get today's national forecast from jen carfagno. >> good morning. we're watching nice weather from the northeast to the front moving into the midwest bringing thunderstorms. big rain potential plus in the south we have a

in july, apple sold it billion unit and the category accounts for nearly 57% of apple's revenue. investors are waiting on another major product win, especially since the company has seen iphone revenues to climb for the first -- revenue decline for the first time this year. some think apple is over dependent on the iphone and worry about the impact of cooling demand and china. then there is tim cook, a person. tim cook became the most high profile openly gay executive in the u.s. and has become a public advocate for the lgbt community. just taken a stand on privacy, facing off with the f the eye in a very public confrontation over encryption. and cook is pushing clean credentials, funding renewable power sources for the company's data centers and setting ambitious recycling targets world apple devices. with tim cook hitting his stride, let see what apple's i've years will look like. john: great reporting there. as we just mentioned, 93% of apple's cash holdings are held offshore. it has sparked investigations by the european commission. at stake, possibly billions of euros in unp

apple will likely appeal as though i haven't had apple shares to the downside.ggest candy company off. it is no longer interested in pursuing a deal with hershey after her she refused its latest offer last week. checking out your stock market futures this morning, dow futures up on, s&p to the downside one and nasdaq down four. that's what's happening now. lauren: economic relationships widening political divide between urban and rural areas and much of the country and could have a big impact on this year's election. alecia curnow has the story fro. >> there's not many crops with anything besides cantaloupe and watermelon. >> for eric vandyke and many other rural america the economic recovery to hear that hasn't happened yet. >> a lot of people do have other jobs. >> three hours away, alan dunn thinks things have been handled on trent headed in the right direction. >> were in the midst of the worst economic recession i've ever experienced in my lifetime. definiteldefinitel y in the last eight years things have improved. >> she's voting for hillary clinton. the i

. >>> apple forced to pay $15 billion to ireland. apple is fighting back.ow it affects your wallet, what it says about taxes and tax policy and globalization. good morning, welcome to "early start." i'm christine romans. >> and i'm george howell. it's wednesday, august 31st. 4:00 al on the east coast. donald trump announcing he will meet today with the president of mexico, that meeting happening just hours from now before trump delivers his highly anticipated speech laying out details of his immigration policy. a sitdown between trump and the mexican president is sfriegs say the least, given trump's repeated vows to build a wall. last month, the nation's president enrico pena saying this. >> under no circumstances would mexico pay for that wall? >> there is no way that mexico can pay for a wall like that. >> trump has drawn fierce attacks in mexico in the hispanic community for his sometimes heated rhetoric on immigration. cnn's phil mattingly is traveling with the trump campaign and has the very latest for us. >> reporter: good morning, george and christin

we start of course with that apple story..s treasury secretary jack lew with some stuff tough talk about the 14.5 billion dollar ruling that came yesterday. the decision creates an environment of uncertainty. >> our concern with european commission action is that it is using a state aid theory to make tax law and it is doing it in a way that's retroactive and overrides national tax law authority in our view and we think that it undermines the environment in europe. for international business because it creates uncertainty. >> it undermines the cooperation between paul ryan the house speaker called it awful. are you surprised to see such tough talk about a situation determined by europe? >> it has far reaching implications. and european leaders on the fact that it's creating an environment that is not favorable for u.s. business and perhaps even it's over the top negative. for u.s. businesses operating in europe. they need to take a tough stand. >> it seems in a way like u.s. politicians are reacting more strongly to this than

apple music has just 15 million subs. so a merger would triple the size of the business overnight. 35 million subscribers in the blink of an eye. this has not to be one of the stickiest businesses out there, low churn rate, been holding steadily at 1.9% for years. and just like that apple bill you get, oh, there it is, right? i've been on auto pay for sirius for years. you can create a must-own, library from the cool howard stern to many live sports broadcasts, including nfl. imagine how much better sirius xm's hardware would get if apple's design team getting to tinker with it. can you imagine? so can apple, the world's a $20 billion market. apple could buy it for a fraction of what it has on hand. put a 17% dent in the company. it can certainly afford 30 billions or $40 billion to get a foothold in the car with ease. i can imagine apple being a little squeamish about sirius xm, i don't think apple's too keen on the satellite business. one thing that could make this deal difficult, sirius xm doesn't control its own desti

mark: apple c.e.o. tim cook says the company never asked for nor received what he called special deals on its taxes from ireland. and the treasury department says retroactive tax assessments by the e.u. commission "are unfair, contrary to well-established legal principles and call into question the tax rules of the individual countries in the european union." hillary clinton has an eight-point lead over donald trump in pennsylvania. according to a university poll, clinton leads trump 48% to 40% in the battleground state. 6% backed gary johnson. independents are twied at 39% for trump, 36% for clinton. two states hold primary elections today. arizona senator john mccain is seeking a sixth term. his main challenger in the republican contest is kelly ward mccain is hoping to win big so he can focus on a general election caling from ann kirk patrick. florida voters also go to the polls. marco rubio is on the ballot. patrick murphy and alan grayson are the two leading candidates to possibly face rubio in nov

i can imagine apple being a little squeamish about sirius xm, i don't think apple's too keen on the satellite business. it's pocket change. one thing that could make this deal difficult, sirius xm doesn't control its own destiny, liberty media does. they own 65%. so any decision on whether to sell would have to come from john malone, their ceo. and given how sirius xm stock has been stocked below $5, apple could easily make him an offer he couldn't refuse, even if malone insists on making the deal. here's the bottom line, every six months, apple spends the equivalent of sirius's xm's market gap. they've got $230 billion laying around. they could give itself a foothold in the connected car. that's how tim cook can get investors interested in this darling again. especially since they could blow out the revenues that sirius is expected to make next year, which would force these doubting analysts to put a hefty ral situation on these current revenues that they seem proud and smug to ignore. all right, much more "mad money" ahead. the average sales of the epi-pen, i'm get being to the heart of the

apple customers.hey are stuck. this is the point i am makingthey are stuck. , they are not adopting a lot of new things. -- they are huge issues if you are an app developer trying to make new sales, all of that is terribly complicated. it used to be very cheap to have a app. what is going on with pokemon go is so unusual because it has been so hard for apple vendors to break out of the noise. the key thing to understand is that the adaptation phase will be different than the adoption phase. in the adaptation phase, most of the benefit goes to the companies that figure out how to integrate smartphones into their business the way that uber did. the way you are saying with companies like starbucks, relative to pre-ordering and every company has to do this. i suspect it will create a small number of mega independent companies. the way the internet cycle did after pcs. the internet was the way companies integrated pcs into their business. so we will see an analogous kind of thing relative to smartphones. d

it wasn't special to apple. and apple was not the team -- not the behemoth we think of it now. it was the early 1990's. apple was struggling. it was a midsize company. this was not a special deal for one of the world's largest companies. katty: how can the commission then claim that something is various, illegal -- something nefarious, illegal happened? >> from my perspective, even under eu law it can't. regimes are intended to deal with special deals. this is not selective. it might be a sweetheart deal but ireland basically offered video to everyone who wanted it. katty: who suffers when companies pay as little tax as apple did in ireland. one'sl, it depends on perspective. arguably the revenue that could have been generated should be in the hands of the u.s., in which case the cost was borne by u.s. taxpayers. position of the european , is irelandoddly is the one who suffered, even though they were the ones who gave the sweetheart deal. and interestingly, the commission's idea of a remedy is that the country that acted illegally should return the money. katty: which ireland

at apple head kwartds aquaters 11:00 a.m. on wall street and squawk alley is live. ♪ ♪ >>> good monday morning and welcome to squawk alley. kayla is out today. we're at post 9 on another record setting day for the markets. dow is up 88. joining me is roger from elevation partners. good to have you with me as well. ceo tim cook speaking at length with the washington post over the weekend. talked about a ton of subjects including the iphone, the fight against the fbi succession and some of his biggest mistakes as ceo. on the iphone he says overtime i'm convinced that every person in the world will have a smartphone. that may take awhile and they won't all have iphones but it's the greatest market on earth from a consumer point of view. he also says running the world's most valuable company is a lonely job but he's not looking for any sympathy. we'll start with you here. people have been dying for cook to be introspective for awhile. this is about as close as we have come. >> it's an interesting time to do it. right before the b

francine: and apple. carolyn: it's all about apple. -- caroline: it's all about apple.king with brian right at drexel hamilton, he says apple shares are going to double. francine: why when you have such adversity? thank you, caroline hyde. looking forward to "bloomberg ." repairas been ordered to $13.5 billion plus interest after the european commission says ireland illegally slashed the tax bill. it's a multifaceted story. it is certainly a negative story for apple and a negative story for ireland. it is a negative story for relations between the eu and the u.s. what is the most mitigating we learned in the last hour? >> the eu has said with the apple case in ireland, it's focusing on 2003 through 2014. it says apple's effective tax 2003in ireland was 1% in and then went down, up to 2014. itsway apple has structured businesses here in europe, it channels all of its profits into a virus unit. the competition commissioner says that unit, the head office that has over there in cork, ireland exist only on paper. it's not a physical entity, and they have been channeling

it's unclear if this is all apple's fault.ome of their sales slow down is because of greater problems in china but the other thing is, they have been hit by competition from low cost phones and this has been what looked like their achilles heel for awhile and it's unclear if they can change that around they need to make their phones more attractive at the price that they are. >> they're doing worse on a year over year basis than apple is. part of apple's sales decline is an inventory adjustment and maybe just in terms of the growth of the middle class that's all gone and more of a mature cycle going after middle class growth and the lte roll out. isn't there the possibility that people ringing their hands like they did over samsung it's just not going to happen? >> that's possible. this year will be difficult because the 7 is not that different from the iphone 6 and 6s so it might be difficult to tell how sales react to this but over the next couple of years if we notice a turn around in china, smartphones generally but not wi

i think investors, apple investors, probably more focused on when's happening next week at apple's big event here in san francisco. >> fascinating. josh, jon, professor, thank you for joining us here. incredible story. again, apple paying $14.5 billion perhaps and the share's down 1% on the news. >> and weighing on the dow. turning to the broader markets, joining the droebl exchange today, mark matson, keith liss and rick santelli. keith, is there anything to read in terms of the market accommodation of this updated deal of the fed in a couple of weeks or a few months? >> i think the market is reacting precisely the way the fed wants it to react. that is when janet yellen floated the trial balloons last friday she was giving salve to anybody thinking that the market will go down. anybody claiming we're overvalued, we have a misallocation of capital not used in the right way i think they're sadly mistaken as long as you have the sweet, soothing tones of janet yellen and her lieutenants and generals. if you look at apple and google and amazon they're all off, you know, half a percent to

on apple?es: it seems that way. she has set herself up to go after these sweetheart deals. not just ireland but other countries as well good apple is the biggest country that she is gone after -- as well. apple is the biggest country that she is gone after it if you do the math, one of the tax deals that she is looking at so if you do the math on that, you could get $19 billion of the back taxes that could be due. we are heading that looks like she is going to focus on a 10 period.-- a 10 year we are looking at multibillion dollars of back taxes in the air. francine: run us through the timeline. it is the european union. it usually takes time. what are we expecting from the commissioner? what happens next? jones: she will lay out her reasoning in the case. she will send it to apple and she will send it to ireland. both apple and ireland have said they are going to appeal if the ruling goes against them. apple's ceo, tim cook says the note issue of taxes and -- and not tax paying enough tax, he

how important is this for apple? >> this is a very significant event for apple. time they launch a new flagship iphone model, the stock will soar. iphone is their cash cow. yes, this event is extraordinarily significant to apple. nejra: tell us more about what is expected to be unveiled in terms of next generation devices. to release planning september.els in the differentiator here will be about the camera on the larger model. it will have a dual camera system. pictures will be much sharper, they will be able to interpret light much better, and you will be able to zoom in and out at a rate that is much better than current iphones. teachers will not be as blurry. matt: expectations really are not that high for ground breaking technology. how important is this to apple stock price? do we see swing up and down formally on days when tim cook or steve jobs would introduce new technology? to thene is very key overall revenues and profits all the time, every year. now, apple has forecasted another quarterly drop your after year in revenue, following two straight drops

so, too, will apple.s important to remember this decision is independent of anything here in the united states. the u.s. congress has been asking questions about apple's corporate structure and at one point demanding apple ceo tim cook testify to explain how and why apple keeps so much money over seas. >>> let's check the rest of the news before the bell. landon dowdy is live at cnbc world headquarters. good morning, landon. >> hi, scott. good morning. we are seeing that apple news weigh on the markets a bit. they are flat to lower. stocks jumping yesterday with the dow having the best day in more than two weeks as investors continue to calculate the hike by fed this year. look for home prices and consumer confidence. dow rising to 18502. nasdaq up 13 to 5232. scott, back over to you. >>> mark zuckerberg says his robot butler is almost ready. he was talking to facebook users in rome yesterday when someone asked him about his plans for his robot butler. something he's been talking about for quite some time

is that changing apple?> it was a much easier narrative to understand when steve was alive and i think that, you know, that product introduction thing is not reflective of the company now. we have to get used to thinking of apple not as a device company. not as a hits company but as the biggest, broadest consumer technology company in the world and that goes beyond just creating cool devices. it gets into software and it gets into pramging languages and it gets into all kinds of things and tim cook is adept at managing the company that way. >> he is quoted as saying as a technology company you're only as good as the last thing you did. this is a company doing a million things at once. what do you consider the last thing they did and how do you judge them on that? >> it's hard to judge them on that because i actually think that's true. you're always looking to improve in technology and better the last thing and apple is great at taking with a it's learned from one product and applying it to what is going ahea

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to restore fair competition, apple must recover up to 13 billion euros in unpaid taxes from apple, plus interest. >> but of course as we've said ireland doesn't want the money. it's going to appeal the decision, so, too, will apple. it's important to remember this decision is independent of anything here in the united states. the u.s. congress has been asking questions about apple's corporate structure. at one point demanding that apple ceo tim cook testify as to how and why apple keeps so much money overseas. >>> the drug maker in the bay area says martin shrkeli is no longer associated with the company. he bought a controlling interest and became the ceo. you know him as the fella who raised prices of a drug at a different company by hunts percent. he gave up ceo position at the company after he was indicted for fraud at yet a different company. so he will stay in the news but we won't see much of him here in the pbay area. >> maybe not the smirk so much, either. >> no. >>> okay. so, scott, obviously also following layoffs that will coming at virgin america. >> virgin america is going

remain apple customers.hey are stuck. they are not adopting a lot of new things. if you are at cap developer trying to make new sales, all of that is terribly complicated. what is going on with pokemon go is so unusual because it has been so hard for vendors to rake out of the noise. the key thing is the at at tatian phase will be different than the adoption phase. in the adaptation phase, most of the benefit goes to the topanies that are out how integrate smartphones into their businesses the weight uber did, you are going to see companies like starbucks relative to pre-ordering and every company has to do this. i suspect it will create a small number of mega independent companies. the internet was the way companies integrated pcs into their business. so we will see an analogous kind of thing as companies do it. it will be different, it will be new, and there will be different winners. we will continue more in the show. they with us. the right back. -- we will be right back. ♪ emily: coming up, the tech meg

lisa: apple is updating the apple watch with a new version coming out this fall. we will break down the changes coming for the gadget. lets into the markets desk for julie has the latest. julie: we are trading in a tight range today, the second tightest we've seen all year. the second smallest difference between the s&p high and low elliott seen all year. only of about 1.8 points. the dell also little changed. and the nasdaq up nine. yesterday we got the fed minutes that pushed stocks a little higher. we are sorted in a drifting area. volume at about 3.5% below the 30 day average. lisa: there are some movers. julie: there are some deal related movers. an interesting report out of reuters that had to do with williams company. they have been searching on the news that enterprise products has made an offer. williams rejected it. if you look the shares, you see the spike of the reports coming out. you can look at shares of the company that reportedly was making this offer for wayland's -- williams. here you have it. this had a spike up and then they come down after pe

evidencewe have more about apple will stop the biggest drag on stocks is apple. european commission has amended the island recoup some of the taxes. >> now ireland saying it does not want that. we will hear from both sides, from eu regulator and the finance minister this hour. >> more evidence the fed will continue its decision on interest rates. sally fisher -- stanley fischer stuck with tom keene on "bloomberg surveillance." hey talked about potential changes and whether there is policy unity within the fed. >> we are growing at around 2% and the problem we face is that of productivity. i do not think the dollar is fundamentally the most important factor affecting the rate of growth in productivity. obviously, a stronger dollar has an impact on the profitability of american companies and on how much we want to import. but the bottom line on this is we have seen an appreciation of the dollar and the american economy continues at full employment. or moveowards -- towards full employment. in a fundamental sense, we have withstood much of the challenge. it has an i

is this all on apple for the time being? for the time being, it's apple.are already looking at amazon and starbucks and mcdonald's. in other countries in the eu, she said there is more than 1000 of these tax rulings, the special sweetheart deals across the block that they are looking at. from our perspective right now, mcdonald's at amazon.com seem to be the next ones that are in her focus. she did not say with the timing of the completion of those investigations would be. united states companies are not liking it. if they star bring home more profits to the u.s., the government might be more appreciative. give us a sense of the irish government? i they going to start losing some of their silicon valley giants -- are they going to start losing some of their silicon valley giants? jones: they are going to appeal this, it will be tiled -- tied up in the courts for years. is theylem for ireland want to maintain the ability to set their tax rates and to do their tax policy the way they want. they do it within the country. with the staten aid rules saying you c

apple's at 11 times earnings.d company, package food company at 23 is you think apple will go away and really they will have double digit growth over two years. can't say how fast this happens with the new iphone but within this model or the next, very easy year over year comparisons. shrinking the share count and generating a lot of cash. >> briefly, also, if you have any other stock picks and mentioned maybe this is the environment for them. >> well, for consumers, you know, consumers are spending. so, you know, the automobile cycle is kind of peaked right now but the age of autos grows older so we own advanced auto parts. consumers are pendspending to k the cars up like homes. time warner which is really turned out to be well positioned. even if you cut your cable, you can buy hbo over the top. so time warner's done a good job of protecting their intellectual property no matter where you want it. consumers are spending. >> david, thank you for joining us. >> thank you. >>> up next, coming right back with the cl

apple to pay an effective tax rate of 1% on european profits down to .005% in 2014 and that gave apple an unfair advantage. here she is in an interview with bloomberg earlier. >> that tax rate in ireland is 12.5% and obviously, most companies at the national or multinational level pay the tax rate or corporate tax rate in ireland and they have to look at some companies in case apple only pays a tiny, tiny fraction they themselves have to pay. that is obviously not fair competition. it is not a level playing field. emily: we spoke to the irish finance minister. but first, i want to bring in matt larson who has been doing a deep dive as well as our bloomberg news reporter who covers apple for us. we knew apple was going to appeal, but what was the response from the company? alex: that they are not happy. i think a lot of people were surprised about the scale of the back payment date are going to have to come up with. this agreement has been put in place since 1991 and it was always legal. they never used any illegal but the agreement they had was such that it was above board. emily: we h

apple's fine. it's just other corporations that are looking at this and saying what's going on in europe. >> larry, brian wants this to be -- i think he's right, this would be a great thing. >> yes. >> but remember how this started. it started with a republican senator who ran for president, john mccain, who sat there next to carl levine and screamed and yelled apple wasn't paying enough taxes in ireland. >> you don't want me to defend this, do you? >> no, i don't. but how are we going to get tax reform here if john mccain himself was upset about tim cook. >> john mccain who's one of my heroes even though he and i never agree on economics. he's going to win his primary. let's just put senator mccain aside for a minute. the key point is the one sully was raising. this is a great time for american tax reform. really. you've got one candidate, mr. trump, i'm not going to do politics, just lay out the facts, trump is arguing for a 15% business tax rate. that's it. with a very low repatriation fee one t

apple jobs in ireland. he says that it appears that apple is being used as a test case. the european union says that ireland must recover $14.5 billion plus interest from apple. the union found ireland allowed apple to pay a corporate tax rate substantially less than other businesses. the corporate tax rate is 12.5% but in 2003, apple paid 1% on its european profits and .005% in 2013. we spoke to a tech analyst about the union's decision >> here what is he had to say. >> the timing is close enough to brexit that they may be trying to clean up a few stuff before the brexit occurs. one of those things will be to collect unpaid tax revenues. they could be setting up to make this a penalty, if you don't guys get your act together, we'll do this to every one of the company this is a hav -- every one of the companies that have been receiving this tax treatment. >> the eyish company says it will challenge the decision. apple says it will have a profound and harmful effect on investment and job creation in europe. apple follows the law and pays all the taxes where we operate. we

the apple watch 2. it would include the same features as the other watch, and also include gps for better location tracking, a larger battery and a barometer. barometers are used to determine air pressure. this would help the apple watch track vertical movement like when you're climbing stairs. the analyst does not expect apple to add lte wireless until next year, 2017. that would mean these new apple watches would still need to rely on wifi or a connection to an iphone for cuts once the two new watch models are introduced. ming-chi kuo has a decent track record on apple reports. he accurately predicted the 4-inch iphone se. back in june apple demoed a new watch-os for apple watch that essentially redefines how users interact with apple watches. the report did not mention whether the new watches will have any special features to take advantage of the new watchos. i'm michelle mortensen. ((weather toss)) place today and tomorrow for smoke and ozone from the fires in southern california. right now air qua

we will see what will be the future of apple. what will apple do when it comes to reality? will apple build their own self driving car? you can flip to double the size of the screen so does will be interesting develop men. we can see and then talk about the first 10 years of 10 -- of tim cook and see if he has another five follow. >> what is your favorite destination? to global tourists, they love to pick paris. yet revenues are plunging with the fear of terrorism keeping many travelers away, not just from the capital. officials are demanding a rescue plan. reporter: the promenade of nice after the attacker drove a lorry through the crowds milling ordinary people down. another victim died of their injuries bringing the death toll to 86. some continues but the sense of uncertainty looms large. foreign travelers are avoiding france and that is hitting paris especially hard. last november, 130 people were killed in a series of islamic attacks your. in the first half of the year, it was down 750 million euros despite france hosting the european football championships the summer

apple watch hasn't panned out yet and neither has apple tv but they're still in the early stages. is it too soon to call that tim cook hasn't had the midas touch. >> it's -- sorry. >> thanks. so he needs it. the stock has nearly doubled since he has been there. but most of that during the iphone 6 launch and in terms of coming up with a new product category, under his management time. we have not seen success. it's slowly getting it off by the smartphone. and many of the product versus done well outside of the iphones for apple. >> how long will we be asking the question what will steve jobs have done with regard to tim cook. he's been at the helm for five years. for how long will that shadow follow him? >> that will always follow tim because there's nobody in the world like steve was and he was a real product and market visionary and it's impossible to replace him. it's just not possible but he is doing a good job. he built a great company but he's not a visionary. >> by one thing that tim cook has done that critics over the years have said is establish partnerships with companie

apple music.nt services to contribute and increasing portion to their revenue. they are going to have to come up with cash awfully soon. we may learn tomorrow the closing in and what it may oh in arrears? emily: the commission has been investigating an arrangement apple had with the government, or limiter findings showing maybe apple got a sweetheart deal. one analyst said apple could oh as much as $19 billion. those waiting for findings as early as the next for hours. david: thank you very much. coming up, herbalife has been pushed and pulled in different reactions for the past two sessions. this as carl icahn and bill ackman continue to square off over the company. this is bloomberg. ♪ >> welcome to bloomberg markets. we are live from bloomberg headquarters. in the next hour, covering stories out of silicon valley. thanks for watching. investors are pushing thoughts of a rate hike out of their minds, at least for now. tanks to a strong reading on consumer spending. we will hear from an investor

with apple watches. the report did not mention whether the new watches will have any special features to take advantage of the new watchos. mortensen. ((kirsten joyce)) >> if you have a consumer problem you'd like michelle to look into.. call the 8 on your side hotline at (702) 650-1907./// sherry how's the weather today? ((sherry swensk)) and some areas are starting to feel the winds. ........... south valley... hoover dam bridge...and then eventually just about everywhere. ............ that should help clear some of the smoke today... with the air quality advisory highs still looking for low 100s today... then a chance for some thunderstorms tomorrow and saturday with a system moving in from the west coast. .............. cooler 90s for the weekend. demetria, how are the roads? backed up between casino center and south rancho. it looks like a parking lot out there. back to you!/// ((brian loftus)) for the death of a teen, killed for his ipad. in may of 2013, police say michael solid was behind the whee

says finance ministers apple -- ireland's finance ministers says apple -- apple was -- apple owes irelandhere it they have substantial economic activity there. they for -- they gave -- on the profits generated by the activities in ireland. david: investment bankers in europe's biggest firms are watching their bonuses melt according to data compiled by bloomberg. felt.why more than $2.5 billion, the value for shares use to pay these bonuses. barclays, credit suisse, deutsche and ubs. angry them are in talks about a theyr of equals good battled falling prices and a decline in spending from farmers . a deal could be announced as soon as next week. both companies have said the instructions are still in the elimination a just and there are no assurance -- rmb limitary the preliminary stages. that is your bloomberg business flash. manus: david, thank you very much. french business leaders meet today. the annual summer conference near versailles. anna: caroline connan is there. by remy: i am joined rioux. and -- ceo.o good morning. the departure yesterday was kind of expected but do you think it