emily: speaking with the paypal ceo, dan schulman.synonymous with innovation from mac to iphone. they are on the cutting edge of technology. you would think they would be a spender on research. they are not. compared to others, they are cheap when it comes to that. they spent 3.5% on total revenue on research, compared to 21% for facebook, qualcomm, alphabet. is it because they make so much money? >> that is a big part of it. there is a rule that you need to reinvest revenue in future projects and that is a bunch of projects underway that companies are making hay about with google and their cars and the facebook project. microsoft has projects underway. apple, by comparison, is under the radar with a percentage of revenue, spending lower. emily: don't they have a car that we believe they are working on? how do they get away with not spending as much money? >> they are ramping it up considerably and there are several different reasons. apple gets a lot of different suppliers and they rely on suppliers to develop cutting-edge technology

we are standing by with dan schulman, the ceo of paypal. brendan: i am here with dan schulman.a shame that you cannot see his cowboy boots, they are spectacular. the financial inclusion forum. one of the things we've seen today and yesterday are a lot of commitments from private industry to provide bank accounts and services on their own. why is it in your interest as a company to work on this, to work at this income level? mr. schulman: first of all, it was an honor to chair one of the panels at the conference today. wayncial inclusion, or the that we think about it, financial health, is such an important topic for the financial services industry to take on. as one of the leaders in digital mobile payments, the idea of using that, the cost efficiency that it has, to be able to champion lower income and middle of thinking in ways differently about managing in moving money is a huge opportunity. reallyt for paypal, but in driving economies and economic growth. as you know, if you can do financial health, it drives the dreams and ambitions of so many people. brendan: so, it's goo

dan schulman was hesitant to say bankpaypal would ever be a . they are focused on transfer and credit which is where a lot of the commercial activity is going. brendan: nonetheless alix: -- nonetheless, blurry line there. next 20 minutes a bloomberg markets, samsung is giving its mobile business a makeover, replacing its top executive. how can new leadership pull the company out of a smart phone slumped? rmorgan stanley downsizing. that might be good news for goldman sachs. sales churning toward a record pace in november. we will tell you some underlying weakness. ♪ alix: welcome back. it is time for the bloomberg is this flash. spending in the u.s. is rising falling inction, factories. construction spending climbed in october to the highest level in eight years. buyers and renters who held back are seeking new homes and federal projects boosted the totals. factory activity fell last month of the first time in three years . analysts say the strong dollar and low oil prices are hurting new orders. contraction territory for the first time in three