the north of ireland. he said i want to thank all of you for what you did to help bring others into the process. he was looking for is an reset through his career and he gets credit for that. think of it tonight. if we were sitting here 25 years ago, there were 35,000 british soldiers in an area the size of the state of connecticut in the north of ireland. the watchtowers were all over -- they were headed towards 35%. it's a huge accomplishment. there have been these broad reforms. >> now thoughts about where we are today and what you think the legacy of all this is. i don't think we have time. >> the night before gerry adams visa was crafted by president clinton, nancy called me in the middle of the night and said, what does jerry adams had to do with the bombing in san diego? and i said what are you talking about? there have been two bombs -- bomb scares found in in san diego by the ira. i was extremely tired and i thought maybe she was hallucinating as well. the idea of the ira carrying out this attack

and create jobs in ireland.ark: many people may be aghast today, and some of them that do not know the details. shensei maybe one of them. that is a lot of money. because as minister for finance i have a responsibility for advising the government on these matters. foreign direct investment and the creation of high-level jobs is fundamental to our economic policy. and we stand by our economic policies and will protect our economic policies. he will not get into a situation of short-term game for long-term damage to the economy. -- we will not. the 12.5 percent corporate tax rate is a wonderful tax rate in europe. let me ask you, if you appeal lose, isn't that a win-win situation as you will have stood up for apple and your arrangement with apple, and at the same time, you will then receive $14.5 billion in flow into the coffers, which we know would be a huge boom to help fund the health service or plenty of the old currently on property level? >> first of all, under european lose, isn'tn situation rule, the tax w

companies in ireland alone.o what this means long-term is, you know, is ireland really a stake of losing those big companies that made tell so appealing up to now? and britain is already applauding it, coming out in the uk treasury saying we are open for business. given brexit, they're ready, saying we can take some of the business. >> interesting. the u.s. treasury saying we don't think it's a good idea to try to crack down on apple on that tax thing because it's american taxpayers that may end up with it. thank you so much for that. >>> donald trump taking a surprising trip heading south the border to meet with the president of mexico. details on that, next. at? you could apply for a medicare supplement insurance plan whenever you want. no enrollment window. no waiting to apply. that means now may be a great time to shop for an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. medicare doesn't cover everything. and like all standardized medicare supplement insurance plans,

i did so not out of any deep knowledge of northern ireland or ireland. i at that time had never been it in either. but out of great respect for ted and for the sense that he conveyed that this was the right thing to do. later, when president clinton asked me to go to northern ireland, i accepted. and i spent several years there learning about the issues, understanding, meeting and understanding the motives and platforms of the various political parties and political figures. and through it all, ted was to me a mentor and someone who i knew was passionate about moving it forward. and looking back on it, he did have a, he did make a tremendous contribution because he influenced members of the senate as he did me and the american public in two very important respects. he got those who favor the side of nationalism to understand that the only real way forward was through peaceful negotiations. he was very much influenced by john hume, as i was and other members of congress who got to meet and to know john, and by other northern ireland nationalist leaders. a

benefit in ireland are illegal. two tax rulings in ireland have artificially reduced apple's tax burden for over two decades. apple will have to repay the benefits worth up to 13 billion euros plus interest. >> more on what this means for apple and other companies. thank you for joining us on this massive day. howhas ireland responded, has apple responded, and how has the u.s. treasury responded? think there is massive shock today around this figure. it was as lowrday as 100 million euros. we began to hear things yesterday afternoon that it might be in the billions. i do not think anyone was prepared for 13 billion euros. there is shock here at that number. intense debatean about what ireland should do next. there has been an angry response, both from ireland and apple, back to the commission. 's check out the commission response. there has been obviously u.s. on thatm the on state encroaching tax affairs. it said today treasury is disappointed at the commission. it is a parting from the important progress the u.s.,

you see that all profits from european sales were recorded in ireland and half of those left irelandto california and places for research and development. >> yes, but we don't manage how apple organize their affairs. we tax on the economic activity that multinational companies carry out in ireland. if there are arrangements made beyond irish law and beyond the confidence of the irish tax authorities, and if an argument is being made that internationally apple doesn't play enough corporation tax, well, then it's a matter for other jurisdictions. and the commission ner her press statement today as acknowledged that because she said that some of the tax that she's attributing to ireland may be due to other european countries and she advises them to look for their tax. she also says that if apple wants to make an all turn tiff arrangement with the u.s. authorities in terms of transferring profits to research and development costs, then they should do that. so by her own press statement she admits that the liability may not be in ireland at all, but may be elsewhere. >> more than 700 u.s.

look at ireland. where there aren't resources, politicians have less power, hence, they have to have good tax regimes to attract real human capital. >> that's exactly the point about ireland. the crisis is how people govern themselves. ireland had that property bubble burst, right? and they thought ireland is going to go down, too. ireland went in the opposite direction run ago way from socialism. they had resources. and natural resources and cut taxes and cut spending. wow, look that economy boom. >> yeah, one of the only ones in europe. probably the only one in europe. meanwhile, we're getting ready to roll at the bottom of the hour. eric, what do you got? >> critics saying the $400 manchester city cash payment to iran is pugt americans in danger by emboldening our enemies. are they right or wrong? plus, president obama slamming donald trump in front of another world leader. what is the fall yaut for america's credibility from that move? see you at 11. 306789. >> we'll be watching, eric. thank you v

that is on profits made in ireland. international profits are not taxed at all, bringing apple's overall rate to zero. . the commission ruled it needs to pay back taxes on international profit. you might think any country would welcome such a massive windfall, but you would be wrong. apple has a long history in ireland. steve jobs brought the company here in the early 1980's and it now employs nearly 6000 people. it is an important corporate citizen and the irish government rejects that it should be the text please. >> if the company was not paying appropriate taxes in the european union are internationally, it is not for ireland because the company operates in the country to be the tax master for the entire world. our responsibility is to collect the tax owed to us and we do that in a transparent and consistent way fully in accordance with laws of the country. the commission is overreaching into a matter of national competency. reporter: u.s. authorities are concerned that american companies are being targeted unfairly

-- big aces in ireland. matt: a lot of companies have headquartered there. -- fidelityypal, ea investments even has significant operations there. of theseare one organizations, you have to take a very close look at how your taxation is working, not just in the revenue you are sending but what are the communications you have had with the tax authorities? it's not just here is our revenue, take a percentage of it. looking at company transfers and deals amongst the subsidiaries. you have to take into account what the basis is there and what percentage you are applying to that base that is going to be taxed. i think companies will have to take a look at the way there internal operations look and look at the deals they have struck with irish tax authorities. emily: apple shares ending today slightly down. how did esters react? alex: they are relatively blase about it. it's 6% of their cash reserves. the thing investors want to see is the ability to repatriate the money to the u.s. because they want to get it in t

may leave the final amount of back taxes up to ireland.he irish government said they would fight an adverse ruling. the derican owners of sold cheating volkswagens have been given a choice, get your car fixed or your money back, and they are lining up for the cash. most are asking for the buyback. andelez is walking from proposed takeaway of hershey. they see no possible way to an agreement. mondelezd have brought into the largest world company. francine: all of that sweet, sticky stuff looks good. we are awaiting comments from vice chair stanley fischer in a little over an hour now. the yen extending losses for a fifth day. with us is kamal sharma. thank you for some -- thank you so much for being with us. the markets will be listening to that interview by stanley fischer. what is the currency pair that will most likely move if he backtracks? kamal: certainly the currency the divergent story which was relatively benign. just looking at our broader currency views, we are still looking for a low euro-dollar. we think that will be the strong

ireland is fighting this as well. why would ireland want to collect $14 billion from the richest company in the world? mark barton spoke to michael noonan earlier and pointed out the opposition party in ireland would like to see just that. mark: why don't you just accept money and shut up? $13 billion is a lot of money. guest: i have a responsibility for advising the government on these matters. this has rescued ireland from 2011 on and from the creation of high level jobs, it's fundamental to our economic policies and we stand by our economic policies and we're going to protect our economic policies. we are not going to get into a situation of short term gain for long-term damage to the economy. emily: standing his ground there. what kind of long-term advantage are we talking about? alex: as we heard yesterday, people were saying on a scale of one to 10, 10 being extremely damaging, 23. ireland has 140,000 people employed by u.s. tech companies and the risk is they start to be put at risk and it ceases to be the plac

and create jobs in ireland.as ireland's finance minister. coming up, which you need to know to gear up for tomorrow's trading day. matt: this is bloomberg. ♪ this, japans industrial production tonight at 7:50 p.m. eastern time. valor-yen the highest in a month, the dollar on a fifth day of gains. matt: it's time to go to tokyo. don't miss this, german unemployment tomorrow at 3:55 a.m. we are looking for a rate of 6.1%. joe: i will be looking at pending home sales tomorrow, 10:00 a.m. economist looking for a 2.2% rise for july data. a lot of housing data and data overall for the u.s., other data is adp employment, chicago pmi, so lots more coming up over the next several days. you don't want to miss it. matt: nonfarm payrolls on friday. joe: have a great evening. this is bloomberg. ♪ >> i am donny deutsch. >> i am john heilemann. good luck beating this. >> rick perry ready to show off his texas two-step. >> texas two-step. >> texas two-step. ♪

european regulators say apple owes ireland money. ireland says they don't.hat and more coming up on "squawk alley." all it dark data. 80% is invisible to most businesses. the ibm cloud has tools that can help see dark data and put it to work. hello, my name is watson. working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. what powers the digital world? more communication.ata. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day for one of the largest greeting card companies. businesses count on communication, and communication counts on centurylink. >>> good morning, it is 8:00 a.m. at apple headquarters, 11:00 here on squowall street, "squawk alley" is live. ♪ ♪ >>> good tuesday morn

to ireland.irectly threaten the corporate tax regime, but it could cast a cloud over the wider picture. are they going to be forced to take the money? ireland is going to appeal the decision, which could take three to five years. it will have ireland support in their appeal. they will support each other in the appeal. apple is confident it will be overturned. ireland isn't quite as confident. we reckon they have a very strong case. we will not know for three to five years. this is really a staging post along the way. caroline: the same question surrounding starbucks and amazon. dondero -- dara doyle, thank you. the finance mr. will be joining us at 11:00 a.m. eastern. vincent cignarella. this is the longest winning streak for the dollar versus the yen in five months. is this going to continue after stanley fischer's comment? >> he echoed more of what janet yellen said last friday, as opposed with the market took were his more mark -- more hawkish statements. will the rally continue? back in june

. -- >> will state aide from ireland. if t it could believe ordered to pay approximate billions of dollars in back taxes. claim for taxes from the world's multinationals. the u.s. press secretary josh earnest responded ahead of today's decision, listen. >> the united states is committed to tax fairness. we want to make sure that the kinds of agreements that we reach with other countries are not manipulated to allow certain companies to shirk that responsibilities. >> he says on one hand this has been a point of contention between the u.s. and european authorities. this idea that potentially europe, the european commission which is centered in brussels, going after u.s. multinationals, especially technology companies pretty hard when it comes to anti-trust rules. alphabet, amends, some of these tech companies because you want european tech companies to compete more. denies the political implications, but this is a big issue between the two. >> of course the same time the white house would love the companies not to have hea

apple employs about 5500 people in ireland. apple in ireland would appeal this decision. turn the dial up 10 points to down one point. apple shares lower by 1.4%. >> we are going to turn it right over to "mornings with maria." good morning, maria bartiromo. maria: hi, everybody. happy tuesday. tuesday, august 30th. 6:00 a.m. on the east coast. you heard the breaking news. the apple story facing a $14.5 billion tax charge for a mirror. antitrust regulators ordered ireland recover that money. apple shares edging lower. taking a look at the stock in the company's ability to appeal this. a race for the white house. a new poll shows hillary clinton's lead cut in half. mike pence telling voters he is watching this race play out. >> kind of fun to watch. he drives the opposition party a little bit crazy. and the media, too. i mean, seriously. they all think the usual -- you know, the usual methods will work against him.

he returned to ireland for impot happy and sad. i realize how difficult and troubling it is to travel back to ireland. i have great admiration and know his family will be grateful for the time he made it to come back for all the family occasions in ireland and germany, especially when travel and communication is much more difficult than it is today. he was so important to all of our family and such a special when i lost my mother nearly 30 years ago, i will remember the strength that i felt when i arrived in belfast for my mother's funeral. i know we experienced that great comfort and support that he would give us. unfortunately, he had to come back to ireland for the funerals of his own brothers. his brothers were his trusted confidants and he used to call his brother every sunday evening to discuss politics, ot family and the church. more recently he lost his long- standing and trusted friends which had a big impact on him. despite such losses, he used his deep faith and positive outlook to keep going on. he had charm, charisma.

apple says it will appeal that decision and ireland says it does not want money back. >> ireland poshax rate has attracted scores of multinationals to the country. it has now been told to pay ireland back up to 13 billion euros, a record some. the irish government says it does not want the money. it will appeal the decision. what is going on? the european commission says ireland has been given apple a selective advantage. in other words, it has been allowing the company a taxable profit. it is illegal under eu law. >> this decision sends a clear message. member states cannot give unfair tax benefits to selective companies. >> tax authorities in the u.s. have reacted with anger. this decision could undermine foreign investment. it says american tax payers can -- apple says it has been acting within the law. they are confident the decision will be overturned. the company employs more than 5000 people in ireland. brett: we're talking about billions of euros here. i am joined at the big table i --. it is not a small change that who is right? -- but who is right? >> everyone is right accor

i want ireland go brexit. seriously. >> this is the kind of thing that creates the trend of more brexits. >> yes. yes. >> an overreach by brussels. >> i want the u.s. to go brexit. >> let's highlight what he means by the finance minister of ireland what he means by the back door. the competition exists in part to ensure there's competition, two, to make sure there are not too many subsidies. they don't want any state aid. this is understandable when you say this is you don't want the chinese government funding steel businesses that are unprofitable simply to keep people in business, right? we think that's a bad idea. that's what state aid rules in europe are about, to prevent bailouts, to prevent taxpayer money being used for bailouts. that's the reasoning they use for this, this was an illegal state aid to apple. so that's what he means by a back door trying to get at ireland's tax policy through a -- >> it's a tax grab. the subsidy thing is all very interesting. >> that's their cloak. >> a tax grab, for heav

will: ireland-- bases its economy on the ring these large foreign multinational companies to ireland the coast of the low corporate tax rate. -- to ireland because of the low corporate tax rate. it is said this could hurt the local economy. if the company is injured, it can employ fewer people in the country. andrew hillier explains. andrew: a13 billion euro tax windfall might sound like welcome news. not so for ireland, which says ruling fund the landmark against apple. so why doesn't dublin want the cash? sibley put, what is at statake? -- simply put, what is at stake? the economy in ireland is largely driven by multinationals. it has one of the lowest interest rates in the eurozone, giving foreign investors incentive to invest. shock gain toe a long-term gain. they are paying an enormous amount in taxes and income tax. if they lose their jobs, they will not pay the tax. >> the opposition was quick to slam the government, saying it would appeal the ruling. >> this government should reach out and collects most taxes -- and collect those taxes as soon as possible. >> ireland's favora

bed -- per share francine: ireland provided ireland -- ireland provided apple with a legal aid. decision could cost the iphone maker billions. will spot -- we'll talk more with jones hayden. the reasoning here is it is unwanted tax. ireland's was too favorable. this has been going on for quite some time. we think the new commissioner will go hard on apple -- do you think the new commissioner will go hard on apple? jones: 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

. >>> regulators are ordering apple to pay back taxes to ireland.'s get to julia charter will i in brussels with the latest. julia? >> thanks, kate. as you quite rightly said, apple has been ordered to pay over $14.5 billion, the irony is ireland doesn't want the money as the irish finance minister, they say they believe apple owes nothing and they want to protect the relationship they have with companies like apple and other u.s. firms apple has hate back, saying they ultimately believe this ruling will be overruled, but i think the statement cuts to a bigger issue, which is what does this mean for other companies trying to invest in europe? their statement says it will have a profound and harmful effect on sleismt and job creation in europe and apple follows the law and pays all the of the taxes we owe wherever we operate. this is a point i think the competition commissioner made to me, that this is not really about the tax rate that apple is paying here, less than 1% in this case, but actually about the deals that countries like ireland are cutti

and create jobs in ireland.ing us to discuss this and more is peter toogood. peter, thanks for joining us. maintainiglitz would that this situation with apple and ireland is undermining the global tax system. he said on ireland, you would have thought that this would be a big windfall for them, and it makes you feel like there is a sweetheart deal. the truth is, apple indicated in ireland, something many american companies have done. just that apple has been smart. exactly right. they went in the early 1990's ireland when they were not making any money. ,steve jobs turning up there. that is the reality. there is a much wider debate about corporate tax structure, etc., which it is not. they're all over the place. everyone is doing it. everyone knows it. that is the point. anna: the more you look at eleanor complicated becomes. i like the risk editorial. apple says this ignores where value is made, and suggest that value is made back in california for the product is designed, etc. peter: nonsense. anna: revenue an

apple is upset but so, too, is ireland. >> ireland attracted high tech companies wits low tax rate.times lower than 1%. apple was happy. it wasn't paying u.s. taxes at 35%. it wasn't paying full eu taxes either. 12%. the eu has been saying for a long time this is just not fair. it's been pressuring ireland, which is a member of the eu, to change its rules. and this morning announced apple would have to pay back $14.5 billion in back taxes. in this is not a fine, not a penalty, just back taxes. >> so what are the consequences of this decision for ireland and for apple? to restore fair competition, apple must recover up to 13 billion you'euros in unpaid tax from apple plus interest. >> ireland doesn't want the money. it wants the business. and 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 and at one point demanding apple ceo tim cook testify to explain how and why apple keeps so much money over seas. >>>

lawler says: "..they've followed the tax rules of ireland. so what's under question here is those tax rules in ireland." both ireland and done nothing wrong, and will challenge the e-u's decision. apple c-e-o tim cook releasing an open letter reading, quote... "beyond the obvious targeting of apple, the most profound and harmful effect of this ruling will be on investment and job creation in europe. using the commission's theory, every company in ireland and across europe is suddenly at risk of being subjected to taxes under laws that never existed." (on cam tag) apple's stock under pressure following the ruling... start of trading, tuesday. in london, benjamin hall, fox news. the treasury department is critical of the ruling.. saying it could - quote - "threaten to undermine foreign investment, the business climate in europe and the important spirit of economic partnership between the u.s. and the e-u." police found a body buried in concrete and dirt... this happened in kingman arizona.. police says they found the body in the yard of a man w

ireland has denied any adverse findgs.ive markets are pointing to depreciatn with a three sinceexpected price january. discount over the spot rate has also climbed, it ti wining expfo decline. a senior lawmaker of uncle and says thegela meel eu market will have to pay, diminishing britain's prospect for a low-cost solution to exit the eu. benefit ofwants to the european union, they also have to contribute to the cost of raising -- there is no way and they will pay into it britain before the referendum, nobody talked about it. anna: u.k. jobseekers are starting to feel the impact of brexit. companies are advtising more contract positions as they resist committing toermanent hiring. it says the average advertising is down in july. japanese airles have canceled more than domestic flights in lion rock, affecting at least 5000 passengers. factoriesclosing to in caution. raintorms could bring more in one day than the whole of august. and the american actor gene wilder h died at the age of 83. he is best remembered for his lead r

ireland promises to appeal the ruling. business and tech reporter scott mcgrew is looking into the ruling. he will join are us with much more on it coming up at 6:15. >>> new this morning. laura, stuff stotough story. oakland police are trying to track down three suspects accuse of beating an 89-year-old man. it happened early this morning at an oakland hits home on se quoi gentleman road. the suspects took off with the victim's cadillac. no word if the suspects sold anything else. the victim suffered cuts but he is expected to be okay. >>> another shake-up at the top of the a bay area police department. this morning hayward's police chief is now on paid admin st t administrative leave. bob, we understand this is stemming from some sort of personnel investigation. >> reporter: that's what the city manager and the police department is telling us. it's a personnel investigation. sergeant here at hayward police department says the matter is, quote, confidential. but this was an all of a sudden move that happened yesterday whe

> pelley: ken ireland lost 21 years.itnesses who collected a $20,000 reward. convicted in a 1986 rape and murder, dna proved his innocence. >> good morning. >> good morning, sir. >> pelley: because of the rare perspective of an innocent man who's done hard time, the governor put ireland on connecticut's parole board. >> at some point in your life, sir, you have to step up. >> pelley: so this is your new cell? >> ireland: well, yeah, for eight hours a day. >> pelley: it took five years to get this job. at first, he lived with his sister and he found work as a counselor for troubled kids. >> ireland: i got a little small apartment in town. i mean, there was the nights where i just barricaded myself in a big walk-in closet and slept in there. just thinking, you know, someone's going to come kick down my door and drag me back. >> pelley: you slept in a closet? >> ireland: yeah, yeah, a few times, i have. >> pelley: are you over that now, six years later? >> ireland: yeah, i don't have them issues now. it gets easier and easi

ida, the agency responsible in ireland has responded saying, "ireland does not do tax deals and it istrue's and a -- it mischaracterization is simply untrue and it is a ro gross mischaracterization." your country's tax code suggests will percent is the level at which corporate taxes should be levied. apple was not paying that. explain the difference. >> it is 12.5%. the issue here is we tax activity in ireland. the commission seems to stress we should tax activity that is my happen in island. the commission decision is internally flawed. ireland should collect this opportunity, this tax, they believe. on the other hand, they are due in thethat it is u.s., they're not quite sure. ireland cooperated fully with them. the basis for this is entirely unclear. we are talking about a historic issue. this is the commission retrospectively imposing its view on ireland. they made these role 25 years ago. that is a really dangerous precedent. if this decision was to stand, it would mean that european countries, not just ireland, could not defend on the tax rules set down by each member state. bac

firms that bring jobs and investment into ireland. now, apple responded, they say they belie and that it will be overturned. they say that this is less about the corporation tax that they're paying, the rate at is less than 1% in this case. the government and their tax practices. >> it's up to the irish authorities to make sure ha the i tax law and european rules. >> these aren't the only people to complain. the u.s. treasury has also stepped in today, too. and they said that ultimately, this w detri impact on u.s. fir investing in europe. i also tackled the commissioner oen this and said what megs a you sending here to firms that are trying to bring investmen a taxpayer in europe. being multinational, a stand alone companies, being big companies or small company, european or foreign, that is this is a wonderful place to do business. and to invest. but you have to play by the rules. and not to rely on unfair tax bets. zpl $14.5 billion to an a l is nothing compared to the $215 billion around the borld. they can afford this. and analys

. >> 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 impact on inflation, reducing inflation, but we have to deal with the world as it is. tom cole in a final thought.

the profits from european stores all go to the ireland "head office" and are essentially untaxed. apple said it would appeal theap decision and denied the characterization. in a statement, the company's chief executive tim cook said the european commission is trying to "rewrite apple's history in europe, ignore ireland's tax laws and upend the international tax system in thea process." the company has more than $200 billion in cash. i spoke with commissioner margrethe vestager, who announced the decision. thanks for joining us. first off, what gave apple an edge in ireland that was unfair in the eyes of the e.u. >> we havee. a longstanding tradition of state aid which means benefits, advantages to a selected company, and that may come in any form as a piece of land, a favorable loan, a grant or a tax benefit. b of course, any member state can have their own tax legislation.e we would never question that. but thet. thing is that you cant give a specific company a benefit or an advantage which is not open to orthocompanies. >> sreenivasan: is there evidence there was specific to app

it was a great deal, and ireland won and now i guess ireland's the loser because they brought that companyd ever do anything in the eu again, that's the way i'd respond to this. >> i'm sure they'll say it's a strong man and give us a break. the eu -- this is why people don't -- this is why britain -- wolf's there, so i don't pretendtpreten pretendtpreten pretend to know second fiddle here. we have should retroactive. we had secretary on allergan, but i think they did, but that's unusual for us. >> and fiscal policies where it's meant to be up to the individual nations -- >> yes. >> -- with some rules around it. this will definitely be frustrating many in the eirish government who said they're already going to appeal it. >> what does a sovereigninati n mean? >> they should have tried this before they put this jury-rigged thing together. >> and now we have super soverei sovereignty. >> it looks like that eu -- or that euro statue, in frank ford. that was a perfect metaphor for the eu. >> it's hard to fix. >> keep telling yourself that. >> it will work. it's going to work. >> i'm not margarit

listen talk to the finance minister of ireland.y guess is even though it may not happen the notion of belonging to the eu under these terms is all about growth. you can't tax your way into prosperity and even though big entities like brussels, like u.s. government have the power to tax and even have the power to reform in many cases the issue is how far is it going to take them? it's not. growth is not anywhere near where it needs to be. not only domestically but globally. a fertile landscape is the way to go. my guess is we might not be able to pinpoint it but overtime these issues in brussels are are going to help the u.k. and ultimately either feed more exits or force change. john fort back to you. >> lots of pressure indeed. thanks. still to come a cnbc disruptor. trying to change the online education landscape. we'll speak to the ceo next and be sure to watch ground zero rising. freedom versus fear. a new cnbc documentary airing tomorrow night at 10:00 eastern right here on cnbc. ught i was crazy to open a hotel here. everyone

meanwhile, ireland says they will appeal the ruling. inspired by the olympics to get into sports, here is a sport that combines both. they had the gravy wrestling championships. gravy is a dinnertime staple in this region. it is for roast dinners, not to be wrestled then. -- in. you can see people showing up in fancy dress and other outfits they do not mind ruining. ladieslteacher won the event and a student beat his cousin in the men's. >> unusual tactics being employed. a reminder of the top stories the employed here. a spokesman for the islamic state group has been killed in syria, according to the news agency for the militants. the french economic mr. has what the government and stopped short of announcing a widely-anticipated bid for the prpresidency. italy, the number of migrants has spiked. a one date record number of people hit the greek shores today. -- entire navy picked top 6500talian navy picked up from libya on monday. business editor has been looking at the economic implications of the resignation from the government. repo

ireland doesn't want the money. we have got the latest developments and someone that says it threatens uncertainty of businesses in europe. >> apple shares down nearly 1% on the developments. >>> boeing, meanwhile, deciding not to raise jetliner prices for the first time since the financial crisis. see fed officials shaking their heads. we'll have what it means about the broader economy. >>> gold prices slowing down after a big rally year to date. is the gold run over? we'll debate it coming up. >>> after the bell, sean combs will join us live here on set at new york stock exchange after ringing the closing bell to talk about the latest business ventures and the music industry. stay tuned for that next hour. >>> let's start, though, with apple's tax bill in europe. jon fortt with the latest developments. he joins us with josh lipton looking at apple's recent battles of big government everywhere. jon, start things off. >> all right. well, eu regulators says apple owes ireland $14.5 billion and ireland says, no, they

withs only land border another country is between the republic of ireland and ireland.t means irish shoppers can get more for their euro north of the border. that is bad news for companies that depend on importing goods from ireland. reporter: looking to snatch a bargain? near the border with ireland, irish shoppers are flocking north. the brexit has driven the pound down to record lows, making shopping in northern ireland cheaper than ever. >> i came to buy a large item that was priced at home around 550. i got it today for 299 sterling. >> we would have weekly customers coming across the border anyway. but the frequency of their visit as probably increased. they are coming from farther afield. reporter: that is where the good news stops. retailers who rely on imports have been hit by rising prices. kelly's hardware has to pay more for timber and machinery. >> there are going to be duties and so forth on a lot of the goods coming in and going out across the border. reporter: cross-border trade has flourished since customs controls were scrapped in 1993. doubtexit vote

they are questioning ireland's sovereignty.questioning ireland's ability to create its own tax and after wh great britain i they they are barking up the wrong tree. >> let me ask you this question. what tax rate, what corporate tax rate, how much down should it come to bring all -- it's a trillion dollars worth of these profits overseas, how low should the tax rate go to bring it back here. last to you. >> i think that something in the 20s range would be better. but the more important question to ask is whether or not there's going to be restrictions placed on these companies bringing the money back into the united states. last time that happened it was a complete political backfire because they didn't know what they promised to do with the repatriated profits. there needs be a much more stringent plan going forward. >> good debate and i'm sure it will continue. >>> now, it looks like a sea of red. look at it all. look it a. what is this going to mean for your labor day travel plans and prices at the pump? >>> and voters headin

a good deal for ireland and production.his seems to be more than big day than it does to be a policy precedent. >> no-space companies want to add quarter in ireland. because the corporate tax rate is so much lower in ireland. dagen: an argument for corporate tax reform in this country which is really the centerpiece to talk about repeatedly of donald trump's cap proposals in addition to that he wants to do. also it speaks to ireland understands how to bring jobs to the country even if it's a low tax rate, bring in revenue and the rest of europe doesn't get that. maria: that's why this will resonate with voters as well. >> people are going to start learning more about why it's so beneficial to have different corporate tax rates. it does bring jobs and business back then that is something we need in the states. maria: disobeyed the business story of the moment. turn to the white house as well print the new poll this morning shows all jump is cutting into hillary clinton's late. the latest poll shows a head-to-head matchup hil

antitrust regulators have ordered ireland to recover over $14 billion from apple in illegal tax benefits. regulators say the amounts could be codified their countries including the u.s. are at or pay my taxes. this feels like a big story. do we have a precedent on this? >> this will play out over time. the u.s. treasury has said this isn't a fair ruling. there's no secret to e.u. is not a fan of tax policies favor a long time criticize lower taxes than the rest of the e.u. this doesn't surprise me in the dynamic of the e.u., ireland is not a big hit because taxes are so much lower. apple saying this is money we earned abroad. we will pay ta doing that yet.

ireland is the best in the world.y close to it. 12.5% federal tax in ireland, wonderful people, some of us are descended from them. it's just great! it's a terrific thing, and ireland has made one huge mistake, and that's not leaving the eu. it should leave the eu and join the uk, they should be next in brexit, and they could be the center focal point, the enterpolof the english speaking world. deirdre: i have to say when you go into the airport, i mean, you see all the big tech companies and ireland made it their business to attract those companies but the eu is now mad. i'm glad you brought up brexit. >> ireland should get out of there. deirdre: the trick that the eu didn't think of first and that group is seek revenge. >> i have an old joke, do you know why everyone is investing in ireland? deirdre: no. >> because the capital is always dublin! >> jokes and economic sense all wrapped up in one brain. but let me ask you this, in order to prevent corporate inversions, u.s. companies from buying companies overseas just

companies that are in ireland. guy: is this about ireland's tax rate, or about particular sweetheart deals? us, what isointing the reasoning of what the eu is doing? >> right. it's not about tax rate. ireland has one of the lowest tax rates in europe at 12.5% and it's about special deals on top of tha it's not just ireland in these cases, the eu has also go againompanies a luxembrg, in belgm, andn th eerlands th companies like anheer-busch, that had to pay 700 million euros or so i similar cases. so that is wwe are looking, the ct that ere is special l thdea irelandas cut wit ale and the reasoning is it gives them an unfair advantage over other companies. guy: we will ave it the. we look forward to your coverage. at press conference could be comi up around noon in russels today with the competition commissioner -- we will hear from her and hopefully will take it to you live. he numbers ithisase our eye atering, enormous. had 232st month apple billion dollars in cash. $24billion of it is held overseas. tes are growi

both apple and ireland say they will appeal the ruling. here now is david malpass, trick economic advisor. so many aspects of this story that are interesting. to me it screams "brexit." they have a tax fairness commissioner and something stupid and ridiculous like that. he is going to weigh in and tell ireland a sovereign nation, that the tax rate they decided upon for themselves to charge apple is not fair, and that think must demand payment from apple of $14.5 billion. it is outrageous. >> it is. hi, melissa. what is interesting is think of effect it has on other business investment in europe. it hurts them. so that is one aspect of this story. another though is that the u.s. has a 35% corporate tax rate. melissa: right. >> so the companies are doing wild things in order to avoid it. trump says let's lower the rate 15% and bring home the money from abroad. they have been tax arbitraging to keep the money offshore. that money will come back to the u.s. melissa: you guys feel like, 15%. apple was paying .000005 of a percent. that was their

taxes, and it owes the company and ireland say they will fight the ruling.y say there was no special deal and the eu is using a completely made up number. tim cook had this to say. andy company in ireland across europe is suddenly at risk of being subjected to taxes under laws that never existed. the four letter is on the website of the company. background here, on tuesday, the european commission says apple owes $14.5 billion in back taxes with interest. it claims ireland illegally slashed its corporate tax rate to 1%. and then further to .005%. for every million euro in profit, it paid 500 euros in taxes. this effective tax rate dropped .005% ino as little as 2014, which means that even less was paid in taxes. per one million in profit. $50 for every $1 million in profit, imagine that. she added that allocated sales profits to an office with no employees, no premises, and no real activity, and only existed on paper. just over 5% of apple's cash on its balance sheet. that's why they are brushing this all for now. of's move to the troubles south korea's larg