First, we have to kick it off with what everyone is talking about. The big headline. Breaking news. Huge deal. Something that investors have been pushing for. Ebl ve been separating ebay and paypal into two separate companies. They will be independent of one another. Ting into what out with gunsame blazing. We have done a lot of work on ebay. Paypal nobrainer that should be spun off. Theres no reason they should be together. It would be helped by a Management Team that is separate and can go their own way. The multiple will go up dramatically. The health of the company will be better. Fan of thewas not a proposal. He was just as vocal about keeping them together. Icon was about keeping them up part. Ebay makes paypal stronger. By helping them grow faster. Providing more data. Financial foundation that will make them more successful. If you look at what is happening in the market, commerce and payments are con verging, not diverging. I am focused on the opportunity in front of us. Believing they are better together. Why the synergies are strong and getting stronger. I guess we know who won that argument, right . Here is the thing. If donahoe has been against this from the start, what happens to donahoe . After this, john donahoe is gone. Now he is leaving. New executive will be running these two companies. Obviously he will be ready to move on. Or maybe it is ebay who was ready to move on. The board has already chosen the next head of paypal. Dan schulman will join as president. Here he is on Bloomberg Television back in june. There are so many problems in our country that seem intractable. That seem like they have no solution. Financial exclusion is not one of those. I think what is happening we are injuring into the era of the nonbank, where you can have all of the power of what you used to be able to do in a bank in the palm of your hand. That is kind of a cool way to look at it. Obviously a vision of the future from the soontobe ceo of paypal, a company that has already grown like gangbusters. There are very few companies in the new economy that are as dominant as paypal. Despite all of the threats and all the hype about a new person coming coming in, including apple with 800 million credit cards, no one has been able to touch paypal. This will go out at a much higher than ebay. The numbers show it. Since 2011, paypal has grown 50 while the rest of the business has only grown about 20 . Lets hear from one of paypals cofounders. Should paypal be spun off from ebay . I think there are very large synergies between paypal and ebay. Maybe it is something that paypal should consider in the future. I think ebay was right to resist carl icahn. I guess we know who got the last laugh on that one. Carl icahn owns about 2. 5 of shares. Why are ford shares taking the biggest tumble in three years . We will explain today in voters. Motors. And in global, the chief equity strategist talks about what he sees ahead for the markets. As we go to break, microsoft Ceo Satya Nadella wants to offer more cloudbased services in india. It is a technological shift we are going through right now. It is a pretty major one. I described this as the shift to a mobile first, cloud first world. When i talk about mobile first, it is not about one device and its applications. It is really the mobility of the human being across the entirety of their life. This is money clip on Bloomberg Television. And we are streaming live everywhere. On your phone, on your tablet, also amazon fire tv and apple tv. We start with the headlines boeing shipping 2000 jobs from the hub in seattle to Oklahoma City and st. Louis. This will happen over the next three years. Ceo Chris Chadwick says it is an effort to differentiate boeing from competitors. That is quite an airplane right there. I believe that is a c5. Unintended acceleration in toyota corollas. Also under recall tacoma trucks for faulty suspensions. So you do not the only carmaker with bad news. Ford will lose a combined 2. 2 billion in europe and south america of this year. European results suffered while political upheaval in ukraine depressed sales. The stock has dropped over 2 in two days. Here is fords new ceo. This is a dramatic story from where we were seven years ago. We are a growth story going forward. Hopefully you got a sense from those charts what we have been able to achieve the last 7, 8 years and what is in front of us. I am very excited about where we are headed. We will face challenges. We will deal with them appropriately and move the business forward from there. Our auto correspondent matt miller just returned from dearborn, michigan. Here is his take on the event. It was an interesting and really a dramatic day, because it started off giving investors and analysts rides and their hot new products. They have a new f150 coming out, a sweet new fiesta coming out. Then they started dropping the news. Oh, were going to lose a billion dollars in south america, which is much worse than had been expected. Oh, were going to lose 1. 2 billion dollars in europe. What . We thought things were Getting Better . Old the recall, that will cost half 1 billion. And it all adds up to as you said not as much profit as we had been expecting, margins not as high as could have been. 8 , 9 . And really a somber less excited mood. So they were dropping all of these bombs here and there, but the main message was what . What he had to convince investors of yesterday i actually think he did a pretty good job for his first time out. Ford will make more money regionally, more money from small cars, and the big f150. The main message, things are getting at least incrementally better in europe. They will maintain growth in asia. It is explosive there. And they make so much from the countrys bestselling vehicle for 31 years, the f150. Matt got to take that new model out for a spin in west hollywood, of course. The 2015 mustang is important, not only because it is fords only sports car, because but because it is the iconic american muscle car that focused all of our fascination on all things four wheels for 50 years. Here we go. Are we ready . This is absolutely insane. But this is not your grandfathers mustang. It also is not your dads. The 2015 mustang is a radical departure from last years model. Launch control. Independent rear suspension. Each wheel is independently suspended, as opposed to a live rear axle, they previously had. That means it sticks to the tarmac much better and you do not lose the rear end as you did with cbs mustangs. The pony now has a lot of competition and its class has gotten bigger and bigger. Mustang is on track to be outsold by the camaro for the fifth straight year. But now ford wants to sell the mustang overseas. We are going right hand drive as well as left hand, and we are adding a fasttrack convertible. In the in the car is a mustang. The question is can this car, with incredible american spirit, compete with its modern european rivals . That is what we have, here to find out. Ford says they did inch mark this car against the 9 11. Not only a carrera, but a carrera x. The quality is a little bit too good. If you are used to driving the last mustang gt, you felt like there was a timeout brute force at your beck and call whenever you wanted it. This car does not feel like that and i think the problem is to cause it is so much smoother. It will still make you smile. You know what i mean though. I know what youre talking about. You have to find an even better road. At the end of the day, it could come down to price. On inside an action i will be looking at other u. S. Companies that have at least 50 of their sales outside the u. S. , and given fords news, that might be a company we discussed. Still ahead on money clip, the ceo of Dunkin Brands tells us why he is not worried about tim hortons or other competitors. And the last quarter starts tomorrow. How will you make money in the yearend . A strategy from Goldman Sachs. And one of our top stories on bloomberg. Com. Bill grosss departure from pimco. We have a story about his last act of defiance as he leaves the fermi created. This is money clip on Bloomberg Television. We are streaming live. We are everywhere. Including, by the way, on your windows device. I am adam johnson. The dow has seen triple digit swings in seven out of the past 10 sessions through the question is, is this going to continue, because we would like to sleep at night. We put that question to the Goldman Sachs chief strategist on market makers. The u. S. Equity market should continue to move higher through the end of this year and next year. David, what are people nervous about . Are they nervous about valuations, the fed, the u. S. Dollar . I would not say nervous about. I would say areas they are focused on. The dollar trend is one that is likely to persist for several years. The euro will go toward parity by 2017. The next year or so, where are there opportunities to invest that are consistent with that trend . That would be one big area of focus. The second big area of focus would be rates. And there, we have the idea of a pretty liberal ecb policy trying to keep rates low basically anchors the long end of the curve and that is beneficial for u. S. Stocks. What does history teach us . This time may be different and may not be different we dont know but when the fed is tightening, stocks outperform . It is always helpful to think about history and how it may or may not diverge from that. History suggests that stocks may have a pretty strong return in a next year. We saw this 20 years ago, 15 years ago and a decade ago. We had three episodes where the fed began to tighten cycles. They were different for various reasons, but in general, those were consistent, those environments were consistent with equity prices rising. And when the fed began to tighten, multiples compressed. That is an issue that Fund Managers are focused on now. Timing is an issue. Will this happen early next year or perhaps as late as early 2016. But if you are a longterm investor, and it seems like no one is anymore, how important is timing . I always call it the horizon arbitrage. The opportunities that is to take the longerterm view and look at the economy. Is the economy Getting Better . That is the tailwind. Valuations are high, but not extraordinarily high, and that is consistent with, over time, an equity market that is on the rise. We look at a 6 annualized return for stocks. That is from now through 2018. Compared with about 1 for bonds. The relative attractiveness for equities is still far better than other Asset Classes at this time. And Credit Suisse strategist Arber Reinhardt says investors biggest enemy right now . Emotion. Actually, it is a little bit independent of the izmir starting to climb. Also make sure just anecdotally to monitor fear by the incoming phone calls i am getting from very nervous clients. I think because we have had 13 corrections of 5 or more since the bull market started in march 2009, investors are very mindful that we are far along in this process. We think it can go for at least another two years based on the business cycle, but that does not mean that investors do not intend to harken back to 2008 and say, can 5 turn into something far worse . I do not mean to get too wonky, but your view on the vix as the fear gauge a lot of people think it does not work as well. We still pull it up and it is easy to wrap your head around, but it may not show you as well. Still relevant. It is still relevant, but we look at the vix along with other indicators as well. We look at fund flows. We look at appetite. We look at it as part of many things. Again, sometimes markets can move in very small corners of the world. You have to watch a number of indicators. The 14 wall st strategists tracked by bloomberg forecast a year end target of 2014 how convenient. We are going around the world. Protesters in hong kong. Leadership says, please go home. And Actor Kevin Spacey tells us why supporting young performers mean so much. We will be right back. You are watching money clip on Bloomberg Television. Fully digital. So download the app. It is free of course. I am adam johnson. We are looking at what used to be the airport in donetsk. It is in the ruins after fighting between prorussian rebels and ukrainian troops. At least three civilians were killed and Eastern Ukraine has suffered its worst violence in more than a week, despite a ceasefire deal. In japan, rescue workers were forced to suspend plans to recover at least two dozen bodies from a volcano that erupted this weekend. The seismic activity is raising concerns about another possible eruption. Chelsea clinton left a new york City Hospital last night with her newborn baby, husband, and proud grandparents, bill and hillary. Clinton announced the birth of charlotte on twitter over the weekend. Around the world, the streets of hong kong filled with row prodemocracy protesters. This was overnight. Andrew davis was on the ground. The atmosphere out there last night was incredible actually. The tear gas attack was two days ago. Last night the police were basically nowhere to be seen. They let the protesters have their way in three parts of the city. And the protesters unlike demonstrations we have seen in europe and the u. S. , they were not looking to provoke the police at all. There was absolutely no violence. It was very festive as a matter of fact. Very calm. Tell us about the character of the protests and the protesters. These are university, high school, and college students, but also veterans of prodemocracy movements in the past. Professors, politicians have now joined them, havent they . Yes, they were going to begin their occupation tomorrow, the holiday. The students got out ahead of them and they are the ones who are really bringing the numbers. They hoped to get 10,000 people. Last night there were probably more than 100,000. That is mostly because of the energy of the students. When i was out there in the main protest area, it was overwhelmingly young people. The complexion could change a bit more tomorrow because it is a holiday of tomorrow and thursday. The more people in their offices who may have wanted to participate may be out there tomorrow. We could see quite a turnout. The demonstrators want free elections and the citys chief executive to resign, but he says china will not budge in its decision to limit voting reforms. The world has seen how peaceful our demonstrators are. They raise their hands. These buildings anywhere in the world they would burn the place, turn it upside down. Basically our government is not even touched by the people. They are such a peaceful, loving crowd. They just want democracy and they have demonstrated with peace and love, as they were told to do. Certainly the students want to persuade beijing to deliver democracy in hong kong as promised. Hopefully china will take that rule and the world will be a much better world if china is democratic. As noted, police have not used tear gas since the weekend. Observers wonder where the decision to use the teargas came from in the first place. I cannot believe that the decision was made by the senior officer at the scene. No way. That order had to come from beijing. No one in hong kong dares. Hong kong is telling protesters to go home, but will they . No. What they are asking for has out surely already been promised to us. It is just delayed and delayed and delayed. We are asking for something we are entitled to and it is up to our chief executive to get it for us. That is why people are clamoring for him to step down. Hong kongs leader has called for the protests to in immediately. From Dunkin Donuts to dominos in the u. K. , we will hear from the ceos of both. And as we head to break, you may have noticed that north korea in north korea leader kim jong un has not been walking properly. He is recovering from surgery on both ankles. This is money clip. We are on Bloomberg Television and were streaming everywhere. We are on apple tv. We are on amazon fire tv. I am adam johnson. The breakfast wars are heating up with more restaurants offering items to attract customers. They were talking about this new competition this morning. He says it all starts with coffee. Talk about big numbers. Coffee has increased 5. 6 for the last few years. People, as you say, love coffee. It has continued to grow. It has continued to grow internationally. I think coffee is part of the battle. Breakfast is the broader part of the same battle. How do you take somebody elses coffee drinker . We get some from chain competitors. One thing we are very lucky we have a lot of transplants. We had queues around the block in california the other week. And by the way, its not just california. Bangalore, india, we had the same result. Do you find that the breakfast part is the most loyal . Everyone who goes to starbucks, mcdonalds, Dunkin Donuts goes to another chain the same week. Really . Yeah, another chain. People are driven by convenience, they are driven by offers, they are driven by great service. That is why we devote so much attention to service and new ideas. They are taking about tim hortons. We have our friends fired up about that. Any merger by definition means disruption. Which usually means cost savings. This is a great opportunity for us. It is an opportunity to grow. We are very, very excited about the fact they are going to spend two years working on this merger and all of the distractions that go with it. It is great for us. It is great for our franchisees. Do you worry about tim hortons coming down here, being such a loved and trusted brand in canada . We deal with tim hortons every day of the week around the canadian border. They have a shut down a lot of the stores. They have done well in about half of the markets. Our franchisees are very competitive, as in my. We will take advantage of that. So far, the opportunity for them to go the distance in america really has yet to be proven. And now to talk about dominoes pizza. The ceo of its u. K. Operations spoke with our Caroline Hyde this morning. I think the most important thing in retail is to satisfy the customers, understand the direction your customers are going. That is how you win. You win by satisfying customers. One thing we have been really good at at dominos is recognizing that the customer wants to order more online. This may seem paradoxical. The easier you make it for people to order pizza, the more pizza they will order. And for our colleagues in the stores, instead of having to take information down, it goes straight from the pc to the line. It is much more efficient, much more accurate as well. When you take something down there is always the danger that it was not quite what the customer wanted. It is a win in terms of customer preference, but also operational effectiveness. And Online Customers spend more money. It is really a winning direction. 7 of orders online. Where do you see that going next year . We do not have a target for it because it has grown so rapidly. What were focused on is how to make it easier for customers to order online and show the range of what we offer online. Again the great and if it of what is online, it you can show people meal deals, the variety of products that we sell, and that is a way of strengthening our relationship with the customer. We can also do things like retaining credit card so, again, it is easier for customers. That pizza is making you hungry now. Before joining dominos he served as the ceo of a car parts store halfords. Kevin spacey wants to send the elevator back down. I promise you we will explain. This is money clip on Bloomberg Television. And we are streaming live everywhere, including on your windows device. I am adam johnson. Activist investor carl icahn gets his way as ebay announces a spin off of paypal. Emily chang is joining us. Which other well known Tech Companies are in activist crosshairs right now . Yahoo under a lot of pressure. One investors saying that yahoo should be merging with aol that selling parts is worth more than yahoo currently. Really the story of the day is the spin off of paypal. A huge reversal from the ceo john donahoe. We will be joined by our guests, both of whom have had very strong thoughts throughout the year. In fact, keith rabois has been pretty outspoken that this is what they should have done from the beginning. We will get their thoughts on the news today and now that it is official, adam. Obviously yahoo has a lot of money because it owns all of the alibaba. What would aol and yahoo look like . I was wondering the same thing. These are two struggling companies. Do two struggling companies together mean a Better Company . It really is about the advertising. I believe they are losing hundreds of millions of dollars on it. Can they lose less if they are a joint company . That is the big question. Could it be better spent on a company doing really well . You have piqued my curiosity. I will be watching. Thanks, emily. And you can watch emily. Bloomberg west comes on at 1 00, 6 00 and 11 p. M. Eastern right here on Bloomberg Television. Kevin spacey is known for house of cards. Offscreen very different. The Kevin Spacey Foundation supports emerging artists in film. They had a big fundraiser that drew big names from hollywood and washington. Here is white is so important to him. There are these other moment that here is why it is so important to him. There are these other moments that are important. I was a shy kid when i started, when i was 10, 11, 15. I am always looking for the shy kid in the corner. These workshops last three and half hours usually. That is the kid i want. I want to get that kid, sitting in the corner, wanting to be involved, but not knowing how, too shy to standup, were you slowly start to coax them. In the process of three hours, you can watch someone have a moment and finally get up and finally do something, stand up for themselves, do a scene in front of their peers, have to speak. You literally see the lights, and like a nickel dropped in their eyes, and i know what that feels like. That is a feeling i want every kid to have. That is the most amazing thing in the world. That for me is more valuable than the money. Very thoughtful perspective. So, how was he able to get some of the most powerful names in washington to get behind the arts together . It is probably the power of frank underwood. It has nothing to do with me. They are afraid of crossing frank, i suspect. Last year we had a different kind of evening. It was the night they were voting on whether or not to shut down the government. They all came and then they voted. Personally i think they voted wrong. But they voted. I am glad to do something particularly in the arts government always has this argument every year. All of these kids and teachers come from across the country to try to make an argument for why arts and culture are an important thing in the nation and why the government should supports arts and culture, and now we are starting to see these wonderful areas across the country, and now they are starting to look at stem education. They have added an a in a lot of states so it becomes steam. I think that is incredibly important to encourage. As we said earlier it is a concert benefit and it turns out that kevin spacey can sing. Here is todays loose change. When you need someone to cheer you . All the way time for on the markets. I am matt miller. Down fivehe s p, points. Up for the seventh consecutive quarter gain. Not a bad day for stocks even on a red day. Take a look at the dollar. Lately. Een on a roll here you see the euro trading at 126. The pound at 162. It has gotten stronger and stronger. For more on the markets how the policy,ould affect fed we will bring in our guest. Not they dont seem to care that much. You have a couple of fed the question is on point. Theyve knowledged it but did not seem concerned. Everybody is talking about the dollar strength. From a longer term perspective, it is still at a week level. I am at i am a cynic. Fedink it is funny that the has a policy of weakening the dollar as much as possible to boost exports and then say, we have a strong dollar policy. We knew they were lying. Did they really have a strong dollar policy . They would never admit it. Through qe, they effect the currency. We are expecting most people are expecting the fed to raise rates. How well a stronger dollar affect that . If we cb dollar strengthen, how does that play into the inflation and rate changes . You can think of it as having a counterbalancing effect. It is also a little bit of a headwind for growth and exports. The u. S. Does not trade as much as other companies. We see a lot of the other exporting nations doing the reverse of the u. S. More qe froming europe and the bank of japan. Japan is a classic example of n export led economy. They want a weaker yen. In europe, it is to some extent exports. If the eurozone is going to continue to go on, and hopefully recover, they need a weaker currency. Are the japanese the most vagrant currency manipulator . Probably. But draghi has talked about it. All the countries do it at various times. Great having you on. Thanks for joining us. Markets, tunee into bloomberg every 30 minutes. I matt miller. We will see you tomorrow