Global stocks on track since 2012. We begin with the final trading day of the month and quarter. Hong kong stocks closed lower amid continuing protests. Paypal will be spun out to its own publically traded security next year. The stock spiking this morning. We have more from ebay ceo john donahoe. Caseshiller home price numbers are out. Well talk with Robert Shiller first here on cnbc. Well discuss that decision by ebay to reverse course for something the company was articulating was not a good idea, namely splitting itself into its paypal. Ebay represents more of the profits, but is not growing as quickly as the paypal business. I did have an opportunity to catch up with ceo john donahoe late yesterday. When he was fighting with carl icahn in a proxy fight earlier this year, he said a Payment Network needs a Commerce Network bike ebay. Its no wonder they are getting into payments and Payment Companies are getting into commerce. Ebay helps accelerate paypals growth. I asked mr. Donahoe, what changed . We dont see that growing much in the coming years. It reached its natural limitation. Paypal is the only Payments Network out there thats now much larger off of its home network than i. When you look forward, paypal can serve not just ebay but serve all the commerce iko systems. Do you believe they dont belong together . They are coming together on the various eco systems. We want paypal to be the foundation on which they build those payments platforms. That gets to the very strategy we are talking about where if paypal can help power payments, whether its on skype or facebook or ube or air b2b. What extent was paypal prevented as a result of being part of ebay . Paypal will be able to move more quickly without worrying about helping a competitor ebay. Theyll have the Strategic Focus and agility that will ultimately allow paypal to achieve its full potential, which is enormous. Weve seen changes recently or announcements that seem to be augering change, whether its apple pay or visa doing some interesting things. The Public Offering of alibaba and the huge Ecommerce Company that is. Did that figure into the boards thinking . When we look out three to five years, we see the pace in change accelerating. The changes in the last month are early indicators of what is to come. The key question is, well didnt you know that last year . Yeah. Straight forward, i dont like this. I dont like when a guy comes on and says it makes no sense when theres a very smart investor agitating for it, done a lot of work. Then suddenly it makes a lot of sense, when it would have made more sense earlier. You have 152 million active accounts. A lot of people have more scale. The company is worth less than it was a year ago because of the competition. I still think it what is a good idea to break it up. How about better late than never . They can call amazon, call alibaba, we are no longer part of ebay, we can do business with you. Thats why i wanted it. Made a lot of sense. When youre trying to figure out a new account, i think youre lost in a world of i have itunes, my credit card is on file with apple. I can just go open an apple credit card with master and visa. I can do apple payments. There are a lot of people who want to be in the payments business. Paypal is good. It was worth more a year ago. Its got new leadership. Dan shiller coming from American Express today to be president of paypal. Very senior guy there focused on new initiatives and growth initiatives. Amex. Will become the ceo once it becomes a publicallytraded company. Talk about the players who are in it like amazon, apple and stripe and square. Does this feel like they are running scared from a space getting too tough for them to play in . I think so. You had this beautiful opportunity. Theres people on air today saying paypal can be bought immediately. Thats actually not the way that the law really kind of goes. Somebody could make an offer. Its got to be sold. Its not going to be done tx efficiently. They have to pay a big Capital Gains. That is my understanding. Im surprised someone doesnt buy ebay and do it themselves. Could you do the spin of something. We havent talked a great deal. I have donahoe discussing this in answer to a question, what about the ecommerce business . Which is under pressure. Has not done a great i dont want that. That is a declining growth business. Its still growing. Declining growth. Potentially declining growth. It claims being independent will help it in a variety of ways using focus. Using return of capital potentially. Well run some of this sound later. Great scoop by you. There is some crow beneath you. Its a crow eat story. The by was here. Looked us in the eye. Thats what my role is to do. We did a Strategic Review of you this year and came to a different conclusion. Meantime, the shadow of icahn looms large. Seemingly moving companies to do his bidding at will. He had to wait a matter of months for this to happen. He got his buyback. He got his dividend. He was patient with apple. Apples been a huge win. I think there was a better moment to do this. Yes. I think you need to. I always felt paypal on its own would be more focused. Has a currency. Be able to roll some of the guys up. This is a very combative space now. Visa and mastercard are very competitive. Visa, a forwardthinking company right now. I keep thinking about that apple unveiling. Suddenly there is jpmorgan. Suddenly visa. How they kept that secret is still one of the great untold moments about that apple presentation. This was kept secret, too from themselves. You also have dissynergies. Thats why donahoe is focused on his 35,000 employees making sure everybody understands why we did what we did. Its not about shareholders. Its bithabout that employee ba. Im stuck with what you just talked about. The merchandise value of the new ebay is not a business i want. I want paypal and hope paypal gets acquired or has a currency to do something. That is not going to happen overnight . The stock is up correctly because suddenly management realizes this is a good thing. Im not chasing it. Youre not chasing a lot of things. I dont want to. Meantime, pro democracy protesters in hong kong vowing to continue their democratic graciouses. This despite calls from the government to stop the civil disobedience immediately. Susan li is on the cnbc Business News line. If you can hear me, im in the midst of the protests right now. The crowds are expanding. This is the biggest protest weve seen in hong kong. There are thousands streaming into the main protest site. Im looking at 200,000 plus. Ive never seen the main thorough fair. People are being herded into the central part of the city. Even with thunderstorms and lightning about an hour ago, people are not going anywhere. They are coming out in drove at this point. Tomorrow is symbolic in hong kong. People are coming out in droves to voice their opinions against beijing. Back to you in new york. Susan li, thanks. I dont like this. You know what . As we close the quarter, a quarter that brought us ukraine and isis, how fitting that it goes out with more turmoil overseas. What happens if our president says, you know what . You do something militarily against these people, we are going to put sanctions on china. You dont like this because you are not in favor of democracy protesters . That is so unfair. Really. That is so unfair. Im giving you an opportunity to put in context your last who has been more anticommunist than i . Youve got to go back to mccarthy to be as anticommunist as i am. The president of the United States does not want to see Tiananmen Square in hong kong. They have a lot of issues in china right now. It would surprise me. Look at this september. Nine out of the last so much days, september 30th, have been down. And down significantly. Yesterday was the anniversary of the 700. We got a nice bounceback when we realized the house was going to pass t. A. R. P. I like the setup today we were down yesterday. The hong kong thing, what are we going to decide, you know what . Thats going to end great. Its a communist party. They have complete control out of every aspect of peoples lives. There are some expectation they treat hong kong differently than the rest of the country. I hope so. They are not that pro democracy. For the sake of the stock market, we hope it goes away. We want democracy to rule in china. Let 1,000 democratic flowers bloom. Their economy would go straight ive got a fiveyear democracy plan. As if that werent enough this morning, coming up later on, john fords first cnbc interview with mark howard. Hurds first broadcast interview since succeeding larry ellison. Robert shiller and about what he thinks about the recent market volatility. What if we finally had a back yard . That would be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up from finding to financing, howd you do that . Zillow. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Lets get back to the key housing data of the morning. Home price increases slowed in july. The cofounder of the k. Shiller index, Robert Shiller, professor of economics at yale university. Slowest since november 2012 . Weve seen three consecutive months of decline in the seasonably adjusted number. They are going down at 6 a year. 19 of the 20 cities saw slower annual returns in july. Yet we got these august new home sales a couple of days ago that were best in six years. Do you think july was the low in any sense . That was new home. Existing sales have been weakening pending home sales have been weakening. So there is a sign of some weakening. Not dramatic. What do you think is driving this . Is it an exit of the cash buyer, lending standards being tight . These are very complicated and not big moves. Can i cite the biggest city . The biggest drop . San francisco. San francisco is down 0. 4 . Thats the worst. It also happens to have been the city that went up the most between 2009 and just before it was up 2 3 over 65 . They were the most bubbly city. Home prices continue to rise two to three times the rate of inflation. To me that says not a bad idea to buy a home. If it doesnt go down, it might be an okay investment. We are living in a world of disappointing investments. Absolutely. I say the same thing about the stock market. Its overpriced. Its not a bad investment. All things considered. And where is supply beginning to come out and overweighing demand . You still have good new york numbers. People didnt understand this five years ago. Why is the stock market overpriced . Thats xlik kalted. You are used to having multiple answers. Ill give you a number of reasons. Its about overreaction to things you didnt need to overreact to. The market tends to overreact. Of course, its the recovery since the depression scare we had. Its been ongoing. We see the fed has been supportive of this. People have a sense that the government support, though its coming to an end, by the way, this whole support. Its something about anxiety. You might see stock markets should go down when people are anxious. People are anxious because of the international situation. Inequality is getting worse. People are worried about being replaced by a computer. All these things are on peoples minds. It creates kind of a desire to save more. The saving rate is higher. Also the economy is well, it has been relatively weak. They bid up the prices of everything. We take your temperature on stocks every time youre on. We refer to the shiller pe. You said in the past, i think its on the higher range. I dont think you used the word expensive before. Have you . I cant remember what i said. A year ago my cyclically adjusted price earnings was 23, now its 26. It could keep going up. I dont have a precise way of timing the market. We hear restrictions on mortgages are difficult to get. Do you believe that . Do you believe its still harder to get a mortgage now . Thats what i hear. Im not an authority on this. Seems like it. Fannie mae is the only game in town. They have to keep selling fannie mae. Theres not like a good private market yet in mortgages. This is another problem that worries me. We have a government, you could say socialist housing market. That is not something that will exist for a long run in america, i believe. Finally, they are still throwing you nobel parties. You went to one last night . Yeah. I got my name engaved on the nobel monument right next to the museum of natural history. I know exactly where that is. I spent a lot of time in that park. A lot of new yorkers on that list, too. Thats great. Congratulations. Normally they told us its normally only for dead people, but they make an exception for nobel prize winners. Next time i see it, ill tell my kids i know that guy. Who is buried in grants tomb . Robert shiller, please come back. Great to see you. Well get cramers mad dash. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. 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Time for our mad dash gopro. Professionals and amateurs. Professionals use gopro, the new one, the hero 4 silver. Wall street journal says maybe amateurs, nonprofessionals might want to use gopros. Amateurs keep buying the stock. Professionals keep shorting it. Its now on that nasdaq hard to borrow list. Youve got amateurs overwhelming it by liking the product and buying the stock, and professionals being confounded by the valuation. Who will win . All i can tell you is you know how difficult it is to short on valuation. This review, if we get others like it says this is the gift for holidays. Its no longer for surfers, no longer for extreme snowboarders, you want to use it to be able to take pictures of what you like and post it on youtube. Thats what people do. They put these things all over themselves and they walk around. Its got High Resolution screen. Its a bullish review. Its a review in the journal. 11. 5 million market valuation. A lot of people were short it saying sony has one and there are knockoffs. I hesitate to use this word. This is the word i used when it came public. It is its own ecosystem. That makes it so you really if you take the battery life, you take an hourlong movie, you want to highlight it so you use the editing system. I think people have to recognize this is now conventional parlance. Twice the number of orders of last year even before this new iteration. According to my sources. Opening bell coming up. Tag sooner or later, Everyone Needs a helping hand, or a helping paw so mattress discounters good deed dogs is raising money to help train Assistance Dogs for wounded veterans. Veteran i live independently because of what all it provides for me. And its huge theres a lot of wounded, ill, and injured out there just like myself, who just maybe need a little bit of help. Tag you can lend a helping paw too. Give at mattressdiscountersdogs. Com or any mattress discounters. Mattress discounters good deed dogs helping dogs help people. The opening bell in about 30 seconds as we close out the Third Quarter. What a quarter. Oil hit twoyear low. One of the worse quarters in about a year. Gold flitting with the 11 handle. Your best bet would have been short russell, low volatilities. Hedge funds are looking for any bids they can find. Hard to find a bid in europe, hard to find a bid in china. Where can you raise money . There is the opening bell. Look at s p. Big board standard register provider of communication management for companies. At the nasdaq, tube mogul, Enterprise Software company for digital branding. We talk about the pain of the quarter, Tom Mcclellan says the dow 50 day has been successfully defended three times. Its as if someone doesnt want the real damage to occur. That is interesting. We know the retail etf has held. There are a couple of critical things going on. Mcdonalds twomonth high. Jack in the box alltime high. Jack in the box, a really good piece about the idea of spinning off some cadoba. Its very well run. I understand chipotle is special. You get that vegetarian burritto, its a killer. Im not familiar. Vegetables and i down yesterday. A followthrough bid today. Down another 0. 3 right now. Its not even what they discussed. It was more russia and south america. South america amazingly bad. Europe, incredibly bad. U. S. Margins down. Recall prices. The recall costs gigantic. Mark fields, was he dealt a bad hand and we didnt realize it . This couldnt have happened the last three months. This was a tough meeting. A lot of people thought it was going to be the showoff of the f 150. Only thing could came out was bank of america holds alcoa. People are saying better performed. That truck better do the trick. I dont know. I bought a 350 which is known as the super duty. Ford trucks are terrific. That ford analysis, the ford year, shortterm pain, long term gain. There is no long term in this business. I want the playoffs now. You are not unlike many investors. The average hold period is nine months for mutual fund, maybe less. Normally i would say they are who we thought they were. This is not the case. We are getting breaking news out of russia this morning. We go to Michelle Caruso cabrera. Weve seen the russian ruble at an alltime low. It is crossed below a level they said they would use unlimited reserves to defend the currency. We are at a critical level when it comes to what the Central Banks will do to defend the ruble. There are reports the Russian Central Bank says if things get worse they might consider capital controls, which would be an extraordinary move for what is supposed to be a modern economy. Theoretically, they have plenty of reserves. Half a trillion dollars worth. When you have runs on a currency, you can run out of it fast. Run through 200 billion during the last crisis back in the late 90s. Once again, russian ruble at a critical level. The Russian Central Bank has to be active to defend this currency. Its a reflection of everything we know since the situation with ukraine erupted. Back to you. Thank you for that. Jim, ive been consistent saying not only are the sanctions going to hurt russia, but you said there will be estimate cuts. The industrials are going to have estimate cuts. That was the lesson of ford. The ford thing took my breath away. Is there going to be any guide up international . Nike, the shorts were obviously wrong on that one. These are bad things. These are bad things for pe multiples. Bad things for earnings. Industrial numbers are too high coming into the quarter. I dont care for that. I wish merrill had not upgraded alcoa. I dont want that going in. Im reading articles about ironore. Frightening the decline. I think industrials are not set up correctly. South america, holy cow. Now i understand why clorox took the hit venezuela. South america is going the wrong way. Get out while you can. One of the biggest in the world in so many different areas, ironore. Charitable trust owns volet. No bottom. Kind of like tom brady. Have to take it out in the first quarter. There is no one to come in and save you. No. Shares of ebay are well off the highs of the morning. First trades had it up as much as 11 . Stock up less than 7 on the news that the company is going to split itself in two. Its paypal business, ebay marketplace will become two separately traded Public Companies with separate boards of directors. John donahoe, the current ceo of the company may serve on both boards. That is a possibility that he raised to me in an interview last night. As well as serving perhaps as chairman of one of the companies. Interestingly, donahoe will not be the ceo of either company, which is somewhat of a surprise. The man who runs ebay will be ceo and dan shillman from American Express to become president of paypal. These things take a while. It will be at least most likely a year. They are talking about the middle of 2015 before the split is officially completed. There was another time when that thing would be flying. Dont see it flying now. From industrials in autos and Everything Else to tech. Netflix is a big gainer today. Not only getting into original series but movies with weinstein. They are going to do the sequel to crouching tigyinigetiger. Regal got a cut today. Cinema companies have not been doing well. This is another bold thing netflix does. One of these cult stocks that keeps producing things that make you want to buy more of it. I felt that way after i read this story. Netflix is not done going higher. Also interesting is there has been a lot of discussion about the windowing, movies, then youve got to wait. Wait for it on payperview. Here you dont have to wait. They are doing it in august, which is traditionally a slow time of the year for the motion picture. So that may help begin the slow period of time. It is interesting. You wouldnt be one of the traditional studios. Thats another thing. They are doing the big european rollout. Its really i give steeple credit. They lower entertainment numbers. People are staying home. Netflix is ideal. You might want to see crouching tiger in a movie theater. Ive been waiting for a sequel to that for some time. Lets get over to bob pisani. Marginally stronger day. Look at the s p 500. For the last few days weve been moving sideways. Important thing here, we have a shelf going here. When we saw things going better over in europe and no real move to the down side, a lot of people are picking around the edges here as we hit 1966 or so on the s p. Bounced off of that. A lot of talk about that technically yesterday. Europe is doing well. Its a simple thing to understand here. We had the Inflation Numbers a bit lower than expected. Put up europe. You see it to the up side. Europe Inflation Numbers were lower than expected. Ecb meeting is thursday. There are expectations that they are going to continue and maybe accelerate the Stimulus Program there. That is a simple trade to understand. Euro keeps going down. I dont know if you call it freefall. There is the Dollar Strength against the euro. Bottom line is we are in freefall on the euro at this point. Thats got a lot of people talking here in both and in europe. A lot of economic stats this week. We are going to get auto sales, ism, nonfarm payrolls. We had a lousy number in august, 142,000. People were expecting that to be revised upward. Six of the last nine years, september has come in below august for nonfarm payrolls. That is not a great trend here. People concerned. We have high numbers for expectations in september. Well north of 200,000 on that. Thats the big number overall this week. Stocks moving today. What a turnaround for some of these kill companies. They are making an effort now much better guidance here. These Steel Companies have been doing better. The leader is one everybody gave up. You talked about u. S. Steel in the past. Mario longy made an effort to restructure that company. That is a threemonth. Cutting costs, finding ways to reduce costs overall. Weve seen a number of consolidations going on. All bought mills recently trying to make them more efficient and closing inefficient mills. You mentioned ironore. Its a battle of lowcost providers. Rio tinto is putting new production online thats close to 40 a ton. Ironore is 80 a ton. That will help them out 0. Cliffs have gone to 80 a ton. That is moor difficult for them. That had more difficult time. All the mill producers are down. Masco spinning off its insulation division. That is a low margin end of it . Thats it. Become to you. Thanks so much. Lets get over to rick san tete at the bonds pits in chicago. We seem to be justling around between pimco stories on friday, potentially hong kong stories yesterday. Here we sit right in the middle of that range at 2. 5 . Quartertodate as we finish the Third Quarter. You can clearly see we defined our range upper 2. 60. Overseas, this sums up europe. 24hour boon watch deals. The influential, 24hour euro versus the dollar. Fresh twoyear lows. Lets look at a different currency. Lets look at the dollar yen. Plowing through the 1. 09 handle. Dollar advantage. Back to you. Thanks so much. A lot more of davids exclusive with john donahoe as e pay decides to split off paypal. And mark hurd. Dow up about three points. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. 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It was the drop your socks dow Economic Activity. Breaking new is is a drop in chicago pmi of fairly large magnitude. 60. 5 is what we arrived at. That takes us back to levels we were in the 52. 6 camp in july of last year. We have had lower numbers. This really does break a streak as of late. We want to continue to monitor the internals which are now slowly released. About 13 minutes well have september Consumer Confidence to follow it up. Back to you. Sounds good. Well see you in a few moments. We are three days away from jobs friday. Thats another chance to nail the number. Mail your predictions. Use the hash tag nail the number. If you are the lucky winner, youll received the shark tank tshirt autographed by the squawk on the street team. You cant wash this once we sign it. No. Youll have until one minute before the friday release at 8 30 a. M. Eastern. A lot of people hosting this jobs number is better than the last one. The neon ge letters were removed to make way for the logo of our Parent Company comcast along with the logo of the nbc peacock. Back in 1988 General Electric purchased nbc and put its initials above what had been the rca building. It was 86. I dont know. Im going against that. I think it was 86. There you go. There is a dispute. Its going to disappear. The letters are actually going away. As we speak. We should have signed them. That would have been the prize. Ge in your house. That would be a serious price. What is their stock price . 25, 38, about the same they bought us in 86. No comment on that one. Facebook new alltime high. Not too far from eight handle. You mentioned the price target increase going to 95. We havent done walgreen. A lot of people thought they would miss. Talking about improved topline pharmacy growth. There is still inflation in the system thats not good. Its not a good day. This is the constant now with us. Not a good day for the tape. Gopro zeroing in on 100. There is your market leader, huh . What is the leader in that gopro . What did i tell you . You have been dead right on these two names. Youre not going to tell anybody to buy these stocks . He said im not a hawk. Jim cramer on twitter, enough, enough, im not going to tell you to buy gopro. Apple, they are selling it in china. Yes. October 17th. I thought it was supposed to be in february. The lies people tell about apple. Its true. Weve not mentioned todays the day microsoft is going to unveil the new version of windows. We expect it to be called windows 9. A big how he switches from desktop to cloud and mobil. I dont know. Ouvre la finetre. You dont know that . Have you never been to paris . Earlier he called me a fascist. I tried to protect yourself from yourself. Thats what im here for. The Peaceful Demonstrations are good. Take one more look at the market as we are now negative on the s p at 1974. If you were a denture . Take this simple test. Press your tongue against it. Like this. Ahh it moves, unlike natural teeth. Did you feel it . It can happen with every denture. Introducing new fixodent plus truefeel. It helps keep denture firmly in place, with its smooth formula free of flavors and colorants. So you get a closer feeling to natural teeth. New fixodent plus truefeel. Fixodent. And forget it. Dreamworks. Stick a fork in it. You talked yesterday maybe there is no deal. The stock kept climbing all day. Didnt seem constructive up five. Probably not a place to be. Doesnt appear there is that much there at this point. Hope springs eternal for this name which seems to have been for sale a long time. Regeneron. Every biotech stock is coming in. This is one of the worst days of the year this last day. Regeneron announced a terrific phase two study on chronic sinusitis. They have studies also on asthma. If biotechs were up, regeneron would be up ten on this news. Whole new product line. San fee keeps buying it in the open market. Just be aware biotech is down. Dont freak out if it doesnt work today. Its a good one. Lets talk about the Fourth Quarter for a moment. Obviously, youll do your play book. Since 1928, the average gain on the s p is 2. 6 in the last 14 years. Fourth quarter negative only four times. Is that going to happen this year . I think there is money coming in. I think peel making nothing on cds as they roll over you are getting 0. 5 . Better to be in kellogg downgraded today by Morgan Stanley and it doesnt matter what happens is you get 3 , 4 , they just dont come in. Procter and gamble is better than a bond. Shiller, i couldnt find the anxiety argument there. Wall of worry. Maybe that geico chinese wall works. Im having trouble following jim today. Im having trouble following me. Maybe thats because im afraid tom brady is going to be benched. Whats the world coming to. That was strange. How about some of these confusing trades . Gold at 1216 . Its down. People dont know what to do with gold. No natural demand. There is a lot of crazy stuff going on. Oil looked like it bottomed. Oil rolling over again. Just the theme, the strong dollar, merging markets bid, hong kong, people dont like the idea there could be something horrific happening in hong kong. Why not just think about it . Put it on your radar screen. Im not going to say its going to happen. Every day its a new area that worries you. You say im not crazy about the market right now. There you go. I just said it. Im not crazy about the market. What is coming up on mad tonight . Mark ordan and michael glimcher, this is one of the biggest deals in Real Investment trust. Talk about a group solvering. These things have been dripping every day. They have good yields. Nobody seems to care. Yield protection has not worked in this selloff. Thats primarily been rising rates. Right. The rates havent gone up. The foreigners keep buying im xanaphobic today. Im trying. Keep your chin up. See you tonight. Mad money 6 00 p. M. Eastern. At the top of the hour, breaking news on Consumer Confidence. More of davids exclusive with john donahoe whose company is splitting up paypal. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. I lochecked bag. Free with my united mileageplus explorer card. I have saved 75 in checked bag fees. Priority boarding is really important to us. You can just get on the plane and relax. I love to travel, no foreign transaction fees means real savings. We can go to any country and spend money the way we would in the us. When i spend money on this card i can see brazil in my future. I use the explorer card to earn miles in order to go visit my family which means a lot to me. We are going to have breaking news any moment with the current september read on Consumer Confidence. We are expecting the number in the 92. 50 area. These levels since the fall of 2007. A drop 86. 0. Like chicago, Consumer Confidence is not an outstanding number. It reverses. That would put it at par 4. 82. 2 was our read in may. We have to go back to may to find a weaker number. Todays data point from top to bottom a little bit softer than expectations. Simon hobbs, back to you. Thanks, rick. The dow falling slightly on that news, as well. U. S. Stocks flat this morning as we look to close out the Third Quarter this afternoon. Its been a positive three months for the s p 500. Taking that benchmark to a gain of 7 since the start of the year. Lets bring in eric stein. Also with us mark mcsheeny. Gentlemen, welcome to you both. Mark, where do you think well go Fourth Quarter . Simon, i think seasonality plays a big factor. Lack of alternatives mean equities remain the classic choice. Albeit a consensus view, they grind higher. The next couple of weeks are rough for equity markets. I think markets need a new catalyst which might come from europe or maybe china where we get better than expected news. Either way, ultimately equities will finish the year tacking on to already sizable gains. Its worth pointing out again that as we look over the last five quarters, assuming we close out today with a 3 gain in gdp for the Third Quarter, we are now in the midst of the strongest, longest period of growth in this economy we had for the last decade. Where does that take you on the equity market given the volatility is increasing . We had eight of the last ten sessions tripledigit moves in the dow. If you think of last year, we had such a good equity market. We had a weaker or okay economy. This year economy is doing better. More volatility in the stock market because of geopolitical events, because of the end of fed tapering, the eventual federate increase. Markets are forward discounting mechanisms. There is a fair amount of good news priced into the stock market. Investors are looking at protests in hong kong. There is talk of capital controls in russia. These are two economically significant regions. Neither looks to be going away in termts of conflict any time soon. Is the u. S. Equity bond market a safe haven or do you start to have to worry about Global Growth and want to stay away from these assets . Sometimes the u. S. Bond market can act as a safe haven. We just took the u. S. Economy in a bubble, yields would be higher. If you look at Global Factors such as russia and hong kong, thats where we have lower yields. Were but to suggest in your last answer that the stock market would fall . I agree with the first guest. Probably grinds higher or goes sideways. Investors have been used to such low volatility environment, we are reverting to a more normal environment where there is volatility. Let me pick up that low volatility point with mark and show you a chart where we traded over the last quarter. United states against europe. I dont mean to take us onto a conversation about europe. What i want you to notice, the two moved almost exactly the same together. Yet you have a very different view in europe. You have deflation. You have contraction of the economies potentially. You have a central bank doing something different. My question, obviously the dollar moves between these two groups. Does the fact they have moved together indicate the numbness that there is between Equity Investors around the world at the moment, and they would chase these markets driven there because of the lack of yield in bonds regardless of what a sector is doing or arguably even a country . I think that is a valid point. There is a tug of war going on among the Equity Investment community in terms of looking at the u. S. Equity market saying valuations in the u. S. Are full. You have divergent bank policies. Versus the ecb which is leaning the other way. Mario draghi likely to be pulling on various levers to resuscitate Economic Activity in europe. European equity markets hosting attractive valuations. If they do get any growth glide path initiated in group and you see a ram up, you he would think it would be spectacular. I respect that, but to the broader point, are Equity Investors in numb to whats going on . Does that have implications to our market here if we accept that . Numb in the sense they are perhaps willing to being a teflonesque in terms of allowing geopolitical risks to roll off the back of the market . There is probably an element of that there. I agree thats the reason we might see a step up of volatility with markets in full valuations. What it does suggest is that it makes the equity markets vulnerable to less than perfect news. Just switching gears here, morningstar downgraded Pimcos Total Return Fund this morning. The backlash continues. Are you seeing any of it . Are you seeing inflews or have you seen anything different in the markets . Does it affect the bond market . We saw kneejerk reaction friday. It hasnt followed through. The second part is flowing. There are going to be flows throughout the Asset Management community. We have a variety of Income Strategies. Short duration, global macrostrategy. Other Income Strategies we hope can get assets in the current environment. Well leave it, guys. Thank you very much. 8. This morning ebay announcing it will split in two, the market business and paypal which will become a separately traded, fully public independent company as of the middle of 2015. It was not that long ago ceo john donahoe was saying something different. Here and in Video Conference as recently last march mr. Donahoe was saying, i believe for us to drive a great future in shareholder value is to live out our purpose, innovate, execute together. Ebay paypal, ebay enterprise together to delight our customers which will create growth, Financial Results which will drive better shareholder value and more enduring shareholder value. That is march, this is september. Now they are going in a different direction. I asked john donahoe why the change . From the beginning, we always tried to do whatever positions the company for success Going Forward. I think we demonstrated in 2008 with skype to do whatever it takes to set each business up to succeed in the future. This decision has continued looking forward how best we can position ebay and paypal. The Competitive Position and competitive environment of commerce and payments are going through accelerating change. That creates new sets of opportunities and challenges for both ebay and paypal, and that operating independently and separate will give ebay and paypal focus, strategic flexibility and an ability to move quickly and decisively in this changing environment. As the synergies run their course, as they become less and less important as a percentage of paypals total business, we think the commercial agreements can achieve those synergies. Commercial agreements ebay and paypal will enter into will not completely replace the beneficial parts of the relationship, are they . I think theyll create appropriate incentives for ebay to create new customers for paypal. For paypal to provide its very best payment experience on ebay, which its always done. There are data that can be shared in a way that particularly for risk purposes allows the safest possible transaction on both ebay and with paypal throughout the web. My most important responsibility Going Forward is having made this decision to separate over the next user to ensure we set each business up for success. And that these operating agreements get done in the right way. Im not going anywhere. Ill be ceo of this business throughout the next year until we separate, then ill go on one or both of the boards and deeply committed to seeing this all the way through. Would you become chairman of one of the boards . If that were appropriate, absolutely. Ive been doing this a long time. Its rare ive seen a young ceo who had success voluntarily say i dont need to be ceo of the company that is left behind or the company being spun off. Were there any disagreements between you and your board of directors that led you to think about this differently . Not at all. The board is 100 supportive of this course of action. Are you 100 supportive . Absolutely. I want to do whats right. Ive gotten up every morning in the last ten years with a burning desire to do whatever we can to set ebay and paypal up for success. That is behind this decision and behind my actions. What after this year, and you say goodbye to these two companies, do you see yourself becoming the ceo of another company . I havent given it any thought . I focused 100 of my attention getting this decision. I will focus 150 of my attention over the next 12, 18, 24 months to ensuring we landed in the right way and in a way best for both businesses for their customers, employees and shareholders. At that stage ill worry about whats next. You have the stock up 6. 5 , almost 7 . Analysts and the like go over their models and try to understand what multiple will you apply to paypal. Does paypal get bought . Who buys it, visa or mastercard . Are they trying to smoke out a trade sale here . I dont know, is the answer. That would involve obviously taxes, i believe. There would be Capital Gains to ebay from a significant sale of that type. This is a taxfree spin which is perhaps beneficial. Youd have to wait for the spinout. Then you would have to wait quite some time. You cant just buy a spunout company, right away, without triggering that. We should mention carl icahn got his way here. Any reaction from him yet . I traded calls. I havent had an opportunity to talk to carl. Been on set. Owns about 2. 5 of the company stock. That is a significant dollar position. Failed largely getting what he wanted earlier in the year in with what was a nasty fight. He took it well beyond split the company. He attacked board members, attacked what he called insider dealing. He did suddenly walk away in april quietly. David dormann was added to the board with icahns ascent. Did he know this would happen . He did not know. They had not contacted icahn. As far as im aware, he was not aware. They have a Strategic Review every year. 180 million for carl. Not a bad day. Great stuff. When we come back, tens of thousands of protesters still occupying hong kongs financial district, setting up barricades. Some fear a new push by police. A live report from hong kong. Later, ford making a big gamble completely transforming the bestselling vehicle in america. Is that going to pay off . Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. The fund is seeing after bill gross surprisingly departed the firm he founded. We get word 448 million in outflows on friday, 98 million in outflows on monday according to a pimco spokesperson who talked to reuters. Clearly, there is bleeding out of the main fund after bill gross. That slowed down significantly after the initial announcement on friday. How big is this fund . 20 billion. Its been seeing outflows for several quarters now. Its significant to have that in a day almost 500 million in outflows. What yount to tune in later because the ceo of pimco and brandnew cio will both be on speaking on street signs. 2 00 p. M. Today. An exclusive on cnbc. Prodemocracy protesters are blocking the streets of hong kong for a fifth day today with larger crowds expected. Tomorrow on chinas National Holiday. Lincoln leaders calling on demonstrators to return home immediately. Giving no sign on compromise on demands. Joining us live from hong kong, wall street journal asia finance editor and Hong Kong Bureau chief ken grown. 10 15 p. M. , ken. What is the mood ahead of this National Holiday celebrating the founding of the peoples republic of china. The mood is tense in lincoln. There is expected to be a big crowd out tomorrow because its a holiday. The crowds have been big all week. Its been workdays. There is a big holiday coming up. Theres a ton of shoppers coming down from mainland, china, which is their tradition for the holiday. It will be a very crowded city tomorrow. Today, were the banks open . We received words some of the big ones were sort of open. I can imagine its very hard to get around down there. Hsbc, Standard Charter are right down there in central where all the crowds are gathered. Its a pain to get around. Its not terrible. Some Bank Branches are closed. The offices are open, stock market is open. Everything is working. Its just difficult to get around a little bit. The issue is you have this big crowd that is going to get bigger tomorrow. Everyone is wondering where the endgame is on this protest. Right. The election, as i understand it, isnt until 2017. What is it going to take to get the protesters to back down . Clearly nothing is working. I know the officials spoke in hong kong there earlier today. Really what we saw today was both sides digging in their heels. The chief executive of hong kong basically said, you guys got to go home. Protesters said he has to resign. Protesters are calling for bigger protests tomorrow. Theres worry that the government doesnt want big protests on this holiday. This is the holiday of the founding of the peoples republic of china. Its very sensitive up in beijing. Theres all kinds of tensions here. Then the question is, we have two days of holidays in hong kong the next two days. Then how much longer do these protests last . Theres distinct big protests in three different parts of the cities. These are dense neighborhoods. One is considered the most densely populated neighborhood on earth. How do you get these people out of there . Do you think they are likely to clear the streets or is that off the cards . Like i said, its going to be very hard in some of these neighborhoods. Theres a lot of people. People wondering is there going to be some concession later this week. Are they going to let the protesters get tired into the weekend or some kind of crackdown . If you talk to the protesters, they are very worried about a crackdown. The question for many of us is why the chinese are changing the way in which they handle hong kong . Arguably they were tactful the way they dealt with it after the british handover. Now, obviously, there is a denial of democracy. There is a denial at the independent courts. Why is that . Somebody suggested to me that its actually about the broader liberalization of markets across mainland china. And a fear that hong kong as it sits at the moment is effectively an escape route for wealth, and therefore, needs to be changed in order to complement whats happening around the rest of the country. Is that fair comment, in your view . No. I dont think so. Hong kong has been an escape route for wealth in china for a long time. Theyve been cracking down on that kind of corruption. I dont think that is related to whats going on here. Here we have china promised there would be, and part of the agreement, universal suffrage in hong kong. This election is where its going to happen. This is 2017 election for the top leader. China said you can have universal suffrage. Everyone has the right to vote in hong kong, but we are going to pick the candidates. That didnt satisfy the people. Thats whats gotten people frustrated. Hong kong has never voted for a leader. The leader now is appointed by a committee of 1,200 people. Before the handover, it was appointed in london. This is a shift towards slight democracy but not enough for what the people want. Ten, thanks for joining us live from hong kong where it is 10 20 and protesters are still out on the street ahead of that holiday. Up next, we are live at oracles annual event from san francisco. Later, interview with mark hurd. His first time on television. Thats coming up. Shes still the one for you. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. 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If Hp Security Solutions can help keep the Worlds Largest organizations safe, they can keep yours safe, too. Make it matter. Larry ellison kicking off oracles event on sunday. John is live on what we can expect at the event. Thats right. Going to have mark hurd on squawk alley coming up. Lawyer ellison talking about the expansion of oracles cloud ambitions behind software as a service, beyond platform as a service. Oracle has spent so much time being careful to maintain its margins in its overall business. Not just in software but hardware. They managed to have competitive margins. Ill be interested to get in mark hurd and the rest of the executives a big picture look how they plan to do that while competing on price in infrastructure. Weve got the entire cloud environment stacking up. Oracle competed vigorously with workday which happens to be headed by executives who oracle took out in peoplesoft. Well cover it all here on cnbc. I heard aerosmith and mclemore there. Thats true. Ford down 7 after lowering profit guidance. Now making big changes to its most popular vehicle. What would happen. If energy could come from anything . Or if power could go anywhere . Or if light could seek out the dark . What would happen if that happens . Anything. Mr. Daniels. Mr. Daniels. Look at this. Whats this . Clicks are off the charts. Yeah. Yoshi, were back. Yes, sir more shipping more shipping [ beeping ] but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Here. Dow down 19 points. In washington, the s. E. C. Meeting on blackout rules for nfl games. Julia has more on that. The s. E. C. Started its meeting to vote on its sports blackout rule which prevents local markets airing Football Games if the games are not sold out and to protect ticket sales. The commission is expected to loosen rules and allow cable and satellite providers to show the game on air no matter how many tickets to the game are sold. This despite protests by the nfl. In an oped in usa today earlier this month, fcc chair said sports blackout rules are obsolete and has to go. Today comes as nfl growth made ticket sales a far less important part of the nfl and teams income. Its unclear how loose the new rules will be and how many perilations would be required, but we do expect those 40yearold rules to be overturned. Thank you very much. Big changes coming to fords fseries trucks. Bigger payloads and higher tow ratings. Even more critical this morning after management warned of profitability. Phil lebeau is live in texas with a first hand look. This is a high margin area for ford. Huge margins on the fseries. Well talk more about that in a little bit. Want to talk about the warning that ford management issued yesterday. Shares are under pressure again today. Comes down to this. The biggest concern for investors near term is that ford is saying net profit for 2014 is going to be between 1 billion and 1. 2 billion lower than previously forecasted. Why . Earnings are hurt by weakness overseas, particularly in south america as well as in europe, and increase in warranty costs. Thats the issue when it comes to the ford warning. Now the fseries. They need a smooth launch of the new fseries. It is critical for ford. They cannot have hiccups along the way. Its 700 pounds lighter. That its selling point because they stripped out the steel panels on the side that have been the staple of pickup trucks forever and replaced by lighter, more fuelefficient, light weight aluminum panels. Durability has been improved. They increased towing capacity, clearance on the truck. Here is fords ceo talking about how important it is to make sure this vehicle gets off with a smooth start from the company. We are on our way to launching that vehicle. We think its a calculated risk and the right risk for our company and customers, to continue to be a leader in this sector. Whats at stake for ford . Take a look at the pickup fact. Talking about the fullsize pickup market. Youve got the big three, ford leads the way with 37 share, gm split between chevy and gmc, ram now has over 21 of the market and toyota at 6 . Back live in san antonio, let me take you inside the new f150. The big selling point is the fact this is a vehicle that is 700 pounds lighter. See this . That is aluminum. People said is this going to be hold up . Yesterday we put this truck through the paces and it did hold up when we were living it. Admittedly, four hours offroad is nothing compared to what the owners of this vehicle are going to put it through. It is a huge gamble. At the same time, remember this, they make between 8,000 and 10,000 per truck on this vehicle. It is huge, it is important, it is a dominant force in the Auto Industry and the u. S. Ford believes that going light weight with aluminum will succeed. Back to you. What does that immediately translate to . Is that about maneuverability or fuel economy . Fuel economy. They think this truck, and they havent done the full testing, they believe this truck can get into the high 20s. Some suggest it could get close to 30 Miles Per Hour on the highway. Ford wont go there at this point. You are talking about a market if people said if i get 20 miles per gallon, i would be happy you can say you are going to get 26, 27, 28 gallons on the highway, they believe that is a key difference maker. You are focusing on the truck today. In light of that profitability warning, which hit the stock so hard on ford, what is your take on where we are in terms of peak autos . A lot of discussion whether weve seen the top in auto sales. I dont think weve seen the top. I think almost everybody has said when you look at the pentup demand, when you look how old vehicles are on the road, you are looking at sales that could get up close to 18 million in couple of years. What changed is in the past we saw sales growing by 9 , 10 , 11 every year. That is not the case from here on out. Its going to be 3 , 4 . Ford believes this is the market where you start to try to steal share from other companies by having a differencemaker in a particular platform. Thats why they believe the fseries will help take share from gm and ram. They dont worry about toyota. Toyota is not a huge player in this market. Gm and ram are who they are targeting. The stock is a big player. Down to 14. 66. Phil, thanks. When we come back, intels vp of new products joins squawk alley live. Will it compete with the apple watch . Later, an exclusive with the ceo and cio of pimco. After the departure of bill gross at 2 00 p. M. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Know that chasing performance and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. S p 500 having a little changed day. It is a strong one for the utility sector. One of the best performers in the s p 500 today. Dominic chou back at hq with more on that. Good morning, sarah. There are a few sectors in todays trade down on the day. Some are up. Utilities. One of the up ones on the day. Up nearly a percent in trading. Some using the recent dip in stocks to add to defensive or less economicallysensitive positions like utilities. Among the winners, dominion resources. Nisource and Sempra Energy up 1. 2 on the day. Lets check in with rick santelli. We have somebody here i think you know. Yra harris is our guest on this tuesday morning. There is one word that the European Union central bankers and bureaucrats and ministers are afraid of. Im telling you what, you are not going to get the word. The word is . Referendum. There is a trail from scotland, which is why it scared everybody. Cameron called for a referendum 2017. Now we have catalonia. We have to come back to germany. This is a heavyweight oped piece, putting it to merkel she needs to back down from the steps the ecb is taking because they are overstepping what their mandate is. We have one of them telling merkel to ease back mario draghi. The reason goes back to our special word, referendum. Explain. Nobody ever asked like the germans how far they want to go with the eu. They keep saying well do this. Nobody asked the german people. This could be a good thing or bad thing. Everybody is putting pressure on the ecb to become, of course, the financier of all europe, which means germans have to stand behind it. The only way it works if the bad bank is . The cb. It has to be guaranteed by somebody. Somebodys money is going to stand behind it, which is the germans which is okay. Youve got to ask the german people, and a rise of the alliance for deutscheland 12 now . They are up to 12 . What is their main platform . They just want this to be more level. Take a step back. Lets see how far deep were in. Talking about the integration and what the ecb and mario draghi can push forward. Correct. They are in violation of the original eu treaty. It brings me to another point. You said theres never been a real referendum in front of the people. They never got a constitution either. They didnt think they could pull it off. They have the treaty of lisbon which is now surrogate. When we take it a step down the food chain it gets diesier. Right. If it passes, the ecb its too much, isnt it . Right. There is a lot to roll on. The ecb will be empowered. People like george soros talked about the need for a european bond. Only way if you get complete buyin from germany. We only have 15 seconds left. My final comment is with the ecb meeting thursday, we obviously wont know about all this any time soon. What will we know on thursday after the press conference . No change. No growth in the abs. They dont have it going. The euro is down to 1. 25 which is what the french asked for and pushed for. French also losing the upper house to the conservative center right. Same dynamic. We are out of time. Back to you. The mobile advertising wars are heating up. Facebook launches new ad tools this week. Is the big tech names that tend to dominate the space, what room is left for the old School Competition . The ceo of yellow pages now called yp. Well explain how they are attempting to compete. Ahead, a rare interview with mark hurd, one of the new ceos of oracle. Whenwork with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Welcome back to squawk on the street. We continue to follow the story of ebay and paypal and the split of those businesses. Much of the conversation centering around carl icahn as he took that activist position several months ago. I can tell you of a new position that we are learning about at this very moment. That is third points dan lobe taking what i am told from a source is a significant position in ebay. That third points loeb also had quarter sayings with ebay ceo john donahoe. That third point is set to be very pleased with the news we got about the split of paypal and ebay. This wasnt a position that was taken overnight, i can tell you that. I think there was a big belief what ebay can be now that ebay and paypal split. A new position, third point, we are learning about today, taking a significant position, i am told from my sources in ebay. A new development in this ongoing story well continue to cover throughout the rest of the day. Another happy shareholder. Shares are surging moves to the highs up almost 7. 5 . Big names in this stock. Thank you very much, scott walker. A busy day on capitol hill. The secret Service Director is testifying before the House Oversight and Government Reform Committee in recent lapses of the agents handling of security. Eamon javers is in washington, d. C. Coming under withering criticism from democrats and republicans in the wake of the september 19th incident in which a fence jumper was able to get into the white house. The Washington Post reporting last night the first time he got much farther than previously reported, into the east room and tackled by a secret Service Officer near the green room. Julia pearson making her first Public Comments on all this. Take a listen. Im here today to address the concern we all share following the incident september 19th at the white house. Its clear our security plan was not properly executed. This is unacceptable and i take full responsibility. Republicans and democrats very critical. Congressman of utah saying he feels there is leadership at the top. After the fencejumping incident, secret service put out a statement that honored the officers and agents for their, quote, tremendous restraint. Tremendous restraint is not what we are looking for. Tremendous restraint is not the goal in the message. The message shoulding overwhelming force. Guys, we know the secret Service Director is going to be participating in this public hearing as well as classified briefing for members of this committee immediately after this. She says she will give more detail about actually happened and what secret Service Knows about this. A story that has washington riveted. What a story it is. Eamon javers in washington. Remember when ads came in the hefty book called the in new yo where yesterday facebook announced the relaunch of the Atlas Program a new tool to better compete with google. Now yp, as the companys ceo joins us. Thanks for having me. People call it a doorstop. A heavy doorstop. Why is that not true. Weve transitioned tremendously from the yellow pages to connect consumers to local business. But now we have a visitors online. And weve taken the same ability to connect to consumers and connected in the digital edge. Is this strew true . Mobile revenue you are number three . Yes. Behind who . Facebook and twitter and google. It depends. They switch it up in different reports. And that is from mobile users. The our mobile users. And advertising and leveraging those consumers. Absolutely. So our business is search. Whats unique about us and special is were in the search business and search is a great way to monetize advertising because there is a lot of intent. Especially on a hand set when someone is near a business and want to find it. We are right there and connect them with that business and we get paid for that. Can i just point out google is 44. 8 . To say your third or fourth is true. But it is of a whole different order o of magnitude. Sure. So my question to you would be, you have got this 4,000 strong sales workforce. Yes. Which i think probably is that crown jewels of what youve got left which is similar to booking. Com is to priceline in amsterdam. And i wonder how social media is effectively adding value to those businesses . Great question. We have over a billion dollars of revenue in digital, about 400 million from mobile sources and weve leveraged that sales force of 4,000 people to work with Small Businesses really as an Advertising Agency to help them get online. So we sell advertising not only on our own sites but across a Broad Network of traffic. We take all the traffic available on the internet, anchored by our own property and make it available. Just like an ad agency for a large corporation. So you will you explain to them how to use facebook which is really complicated. We explain how to use facebook. We buy the key words on google. We manage the entire cam pain and a onestop shop. It is really a White Glove Service for a Small Business and makes them operate like a large business. Is that your Value Proposition for a small local business. Do they prefer you to a bigger google . Is there a trust factor there. Absolutely. The truts factor is critical. Weve been in the business over a hundred years. And we have decades of the relationships with customers. So they trust us to take them into the digital world. It is very confusing if you are a Small Business to understand all the different choices and how to get all of your information correct on the internet, have a website, build a video ad. Manage search engines. Mobile online. Our sales rep make that easy for them. When does the book just go away . The book goes away when consumers choose to stop using it. There are many parts of the country where the book is readily available. We let the consumers decide. The areas are the shrinking, obviously. Yes. Hearing from consumers when it comes to the door i throw it right in the trash. We are smart about where we distribute the book. But we recognize the transition over what, 14 years ago we started moving into the digital age, back in 2000 time frame and we made that integral to everything we do. The book today is just part of an overall suite of the media we sell advertising on. Makes me nostalgic. Yeah and if you are in Grand Central you will see a lot of the yps marketing this week. Over to kayla with a look at whats coming up next on squawk alley. We have a big show idea. The legendary Walt Mossberg will weigh in with his take on what a public paypal will like for the market. Also giving his review on wifi calling on the new iphones. And a new intel product had whose going to talk about the companys foray into wearables and whether it can compete with apple and finally a little more into the week of his new job, orac oraco orac oracles coceo. Coming up next. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. 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So well see if in numbers go back up. The apple got approval in china for iphone 6 to launch there. They had a difficulty with permits but that also came through today. Stock positive in a market thats going nowhere. Thanks so iimosimon. 8 00 a. M. At ebay headquarters. 11 00 a. M. Here on wall street. Squawk al lea is live. Joining us this morning as always, kayla, john. John is going to have a first on cnbc interview with oracle ceo mark hurd in a few moments. First ebay announcing it will sell off paypal as its own company. We speak exclusively about the future of both companies and mobile payments, listen. Paypal has the ability to provide a payments platform that can be used on the we said with merchants all over the world and on mobile devices. And those worlds have been relatively separate and distinct. With the Way Technology is evolving with the tokenization coming in and the mobile operators like apple coming in Many Technology ecosystems want to enable payments but dont necessarily want to get into the payments business themselves. And the unique opportunity we see for paypal is to power torques enab, to enable payments on many systems. A couple of the systems you mentioned like apple and visa. These happened recently. The board seemingly made up its mind about this split