♪ mark: i am mark crumpton you are , watching "bloomberg technology" and here is a check of first world news. president trump says he congratulated russian president vladimir putin today on his reelection. mr. trump also said he is making provisions to ensure the u.s. remains the world's preeminent military power. pres. trump: we had a very good call and i suspect we will probably be meeting in the not-too-distant future to discuss the arms race, which is getting out of control, but we will never allow anybody to have anything even close to what we have. mark: for the fifth time this month a package bomb exploded in texas. it happened this time at a fedex facility near san antonio.

one person suffered minor injuries. meantime, the fbi denied earlier reports that a second bomb had been discovered. two people were killed in the four prior bombings in boston. the school shooting in southern maryland ended today with a gunman getting killed according to a local sheriff who says the suspect was killed by a school resource officer. two students were wounded. education secretary betsy devos community'sing rights to decide whether to arm teachers. she also says the federal commission on school safety is being created and will consist of her and three other cabinet secretaries. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. ♪

caroline: i am caroline hyde in london. emily chang is off today. this is bloomberg technology. coming up the fallout spreads , over the relegation that firm cambridge analytica had access of information of millions of facebook users. cambridge analytica is now suspending ceo alexander nix. we are covering all the angles of the story throughout the hour. and a crisis has gone global. government officials in the u.s., u.k., and europe focusing in on the company and moving in to take action. meanwhile the criticism is only growing over facebook's response. why haven't we heard from mark zuckerberg and sharon sandberg? sandberg? now the market continues to struggle amid the facebook turmoil and a large tech selloff. facebook has now wiped out its gains for the entire 2018 plunging as much as 13% in the

past two days. putting the stock below key support levels. for more let's bring in abigail doolittle. there goes in market cap. $45 billion>> it is extraordinary this story, and it is still evolving. we are in the early innings. if we take a look at the heart of the matter, cambridge information onns facebook users without their permission. facebook learned of this back in 2015 and they did not do anything to tell those users or to secure the data. facebook is saying this does not constitute a hack or breach, but they do not allow that type of data to be sold to a firm. it is a gray area, so gray that the ftc is launching a probe to see whether or not this is a violation of the 2011 consent agreement act. if there is a violation it could , equal a massive fine. it could be a stunningly large

fine. worst-case scenario for facebook could be a big fine. plus, that is bringing the government into the picture. the u.s. government up unto now -- until now has regulated technology very little. that could be a double whammy. if we happen to the bloomberg, a very simple chart. in gwe are looking here is circled ins yellow. it has a higher high and lower low than last month and uncertaintyeaks to and volatility for buyers and sellers. we could see a equal and opposite reaction down towards between 130 and 140. pretty amazing. caroline: amazing stuff. you are bringing up technical indicators. let's look at the relative strength indicator. we are trading at levels, facebook's stock is below the 50

day moving average. and also the 100 day and 20 day moving average. here is your relative strength index. if you look at the lower half of your screen as well, this shows where we start to get close to the over sold indicator for the rsi on facebook. this is where we had the oversold mark. i know you have plenty of doomsday technical indicators. abigail: we are looking at that monthly chart. it does suggest support is unlikely to hold and that selling pressure could continue on. at the end of the day, investors hate this overhang and uncertainty. many saying this was overbought with so many investors and it. so perhaps a cooling off period. if we take a look at tech overall, the nasdaq 100 finished higher and lots of other names higher such as amazon, netflix, alphabet finishing down slightly. the contagion contained today,

but twitter lower on the day in a big way. and the social media in general under fire for data use and privacy. plus israel's justice minister says the company has ignored requests for legal action to remove online content that was inciting or supportive of terrorism. that could be an ongoing story. i would like to highlight a chart this is a bullish chart, g #btv 7472, and this is a longer-term chart of twitter. now that twitter is back above its ipo price and its level of resistance marked in blue, it is in a confirmed island reversal which suggests stock can climb up towards 50 or higher. who knows, maybe this contagion is not going to continue to affect twitter. we frequently are hearing sources saying this could be a potential buyout candidate. of course, bloomberg lp does have a breaking news network on

is not going to continue to affect twitter, tictoc. caroline: fascinating stuff. we love our technical indicator abigail doolittle, great as , always to have you on. now, the impact of growth of those involved in the facebook data breach controversy. cambridge analytica announced it is suspending ceo alexander nix immediately and they are , launching a independent investigation into the company's actions. nix was caught on tape talking about the dealing with the trump campaign in a investigation. he is discussing the use of a self-destructing email server to communicate with clients in order to eliminate evidence of their contact. [indiscernible] caroline: in a statement the company said in the view of the board, mr. nix's comments secretly recorded by channel four do not represent the values

or operations of the firm and his suspension reflects the seriousness with which we view this violation. dr. alexander taylor will serve as ceo while an independent investigation is launched to view those comments and allegations. for more let's get to sarah frier in san francisco. you have been all across this fallout. it is fascinating that the ceo of cambridge analytica, nix, now suspended, was bragging about the power that cambridge analytica had particularly with the 2016 presidential campaign, saying they did all the research, had all the data and analytics and all the targeting. does this mean perhaps they did not use facebook as much as we suspected? how do you read it? sarah: i think there are a lot of questions here about what cambridge analytica actually did with the data it got from the researcher in question. it could have been used or

they could have trashed it, a could have been useless. we don't know to what extent it was actually put into the targeting they talk about. furthermore, we don't know how much we heard from cambridge analytica's marketing tactics. is simply the firm marketing itself to look very attractive to clients because this is what a lot of advertising entities do with facebook data. they try to reach people based on their own demographics and likes and that is what facebook is for. the issue here is whether they on their own demographics and did delete the data when they said they did. facebook has said they have been lied to, that cambridge analytica certified in 2015 that they had. caroline: we are getting breaking news that facebook is being sued by investors over voter profile harvesting. this is just crossing the bloomberg. investors claim facebook failed to disclose the vulnerability and pro-trump research firm

gather data without permission. all of this is coming out. we get reaction from the investor base. we don't seem to get much reaction from facebook itself. we have yet to hear from ceo zuckerberg, coo sandberg, what is being said internally at facebook? we know they had a town hall. sarah: the company had a town hall, with the vp, the legal counsel that has been handling the situation about facebook's plan to suspend cambridge analytica. there were questions from employees. the reason we haven't heard from mark zuckerberg or sheryl sandberg responding to concerns is because facebook doesn't actually know on its own. they haven't confirmed what has happened here according to my sources. they were writing their friday post based on the saturday post that was going to come out from news organizations. they haven't independently verified what cambridge analytica actually did here.

they are trying to do an audit to look into their servers. cambridge analytica has agreed to this audit. but before the company knows for sure, they don't want to so they are back walking from overreact. so they are back walking from what they said on friday about how strongly they are going to take this. and now they are saying they need to have more information. caroline: you cover this company in terms of financials. do think this is going to start to hit growth? we hear this will have reputational damage and a catastrophe, some lawyers are calling it. what do you call it? sarah: that is a big question. remember, when facebook talked about its latest earnings report it said time spent on social networks declined for the first time ever, but they tried to explain that that was by their own design, that they actually wanted people to view less content because of low quality. i wonder if they actually keep up that statement in their next

earnings report. or if analyst investors are going to start looking at it and saying, our people not spending as much time on facebook because they are getting less viral content or are they not spending as much time on facebook because they don't want to be there? they have to navigate this conversation in a very careful manner and try to figure out how much of this is of their own design this whole initiative , towards time well spent on this platform that mark zuckerberg announced in january and how much of it is concern over whether facebook users want to remain there. caroline: fascinating stuff and great reporting across the story. bloomberg's sarah frier, thank you very much indeed. we heard that facebook is being sued by investors over voter profile harvesting. investors claim facebook failed to disclose the vulnerability.

they saw the data was taken back in 2015. a pro-trump research firm took a data without permission. we turn to cambridge analytica's methods. was the company truly able to figure out facebook's users psyches? this is bloomberg. ♪

caroline: salesforce has agreed to buy mulesoft for $6.5 billion. its shares surged 28% on tuesday following the report the sale was imminent. clients getelps content on the cloud. they sold .711 shares of common

stock for each mulesoft share. we continue our coverage of the fallout from the misuse of facebook data. there are reports of what data cambridge analytica hat and how it was used continue to pour in. our next guest is someone with a insider perspective of how facebook operates and just published an article for wired and calls into question the effectiveness of something called psychographic targeting. antonio, wonderful to have you on the show. we had some bragging coming from the now suspended ceo of cambridge analytica saying we did all the research and all the data and all the analytics and targeting. where does this leave facebook data? in the techa saying

world, just because it does not work does not mean you cannot sell it to read i don't quite buy it. the reality of psychographics has been used for a while and it is a decades old practice. in this case it is more quantitative. remember, what they did it build a facebook app, they built a model based on responses to that app. in at the end of the day you still have to find the user on facebook. you still have to use facebook targeting data, otherwise it is difficult to find that user on facebook. the real challenge for them would be taking the model and translating into facebook data. i think i don't think facebook's dinged by the existence of cambridge analytica in my opinion. caroline: let's dig into the main part of your story. media shining a light that people are worried about the safety of personal data. perhaps the irony is that even they use the personal data this , use is not very effective and would not have helped trump win

the 2016 election, you don't think? antonio: i really don't think so. one of the biggest stories in the election is that a lot of strategies the regular commercial world has used for years is now being experimented with by by political campaigns. i think there are a number of techniques. i wrote a piece about how i did the election.n it is using a tool called custom audiences where they join to voter rolls and first party data that the rnc has. it is valuable and the targeting you see on facebook after browsing a webpage. trump also did that. the reality is what cambridge did is very old. this is not a new story. i remember as a product manager at facebook i met a member from the team at cambridge, and they were also building models and try to use it. at the time it did not work terribly well.

facebook only did these targeting things in i think in 2012. some ways they are stuck in the past using the model they were using, in my opinion. caroline: fascinating, while you are at facebook you are meeting with cambridge analytica. i want to get your perspective, having worked at facebook. you said on your twitter feed that there was turmoil within facebook. talk to us you put on facebook that potentially now there is a big sign of turmoil. antonio: just to clarify, i did not work with cambridge analytica, i met with cambridge a psychologist -- cambridge psychologists. to answer your question, to me one of the unique things about facebook, even relatively late in its history and even now -- i joined when the company was already 2000 employees. there was a real feeling of being mission oriented and very motivated for the overarching mission of facebook. everybody was a believer and was

-- and thus it was a tough nut to crack. journalists could not get employees to leak. but many outlets are finding lots of sources sitting there and talking about the internal intrigue of facebook, which is is really unusual. in my opinion, it is a bad sign of what is going on internally. to voice what facebook has put out, they said data and privacy projections are fundamental to any decision we make. the policing of data is going to get a lot tougher at facebook, do you think? antonio: i think so. the adt i worked on, system, was super paranoid about data and super aggressive with advertisers in terms of not taking data. that may not have been the attitude reigning on the platform side. to me, there are not a lot of

users on facebook platform. when was the last time you used that? it did not take off and they left it sitting there. so i think one constructive thing company could do is to be a lot more aggressive about how it deals with partners on the facebook platform side so this sort of thing can't happen again. caroline: fascinating to get your perspective, former facebook product manager and contributing writer at wired. we thank you for joining us. coming up, we continue to -- monitorglers uber's autonomous crash in tempe, arizona and how big of a impact it will have on autonomous driving. this is bloomberg. ♪

caroline: now, a story we continue to watch. the tragic death of a woman hit self in tenpay, arizona. police video shows the woman moving in front of it suddenly is a factor investigators are

likely to focus on as they assess the performance of the first pedestrian fatality in the use of an autonomous vehicle. the police chief on the case told the san francisco chronicle that after seeing the video, it is very clear it would have been difficult to avoid this collision in any kind of mode. uber has halted all autonomous vehicle tests. joining us now is mark bergen who is covering the story for us. it looks as though it would have been difficult whether it was autonomous or not. what is the reaction of uber since yesterday? mark: they are still quiet, they say they are still working with authorities in tempe. a lot of companies at large are still waiting to see if there was a perception issue an issue , with the car and the volvo that uber is using. or, if as the police suggested if this was purely unavoidable , if it was human or software in control. caroline: as you say, other

companies listening now, apple, a -- and waymo. are we yet to hear or see any reaction from these companies? mark: one suspended their testing, saying they are concerned about the emotional state of their safety drivers. gm has said they are continuing to launch a service next year, we have not heard from waymo, considered the technical leader in the field. we have yet to hear from apple. boston has put an ultimatum temporarily pausing all tests there. pittsburgh, where uber is testing, says these companies can continue the test on the road. caroline: there is a interesting piece that shows that apple is getting in into autonomous vehicles.

far more than we perhaps had for seen particularly in california, , can you update us on that? mark: it sounds like apple has more cars on the road than waymo and part of that may be that waymo has been doing this for a long time and have been testing california roads for almost nine years now. what waymo -- california has been less receptive and they have laws on the books that there have to be -- has to be a human in the vehicle. states like arizona and texas and washington are more deregulated. yet companies like waymo and uber testing in arizona more than california. caroline: mark bergen, great reporting, thank you very much for joining us. coming up, back to the fallout of the facebook data story and we turn to the political response. will executives have to save lawmakers -- face lawmakers on both sides of the atlantic? this is bloomberg. ♪ mom you called?

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>> it is 11:29 a.m. here in singapore. i am juliette saly. facebook said to be drawing scrutiny from the main u.s. privacy watchdog over its mishandled data scandal. the ftc is investigating whether facebook violated a 2011 decree over handling private information. at the same time cambridge analytica has suspended ceo alexander nix, saying his secretly recorded comments on acceptable. .n explosion in texas when fedex employee was wounded in the incident, which happened

and sent a powerful blast through the fedex center. they are investigating another blast at a fedex -- at a goodwill in austin. it is not linked to the others. a shooting in a maryland high school left two students injured and another dead. a teenage boy shot a girl and was fatally wounded by a resource officer. the 16-year-old girl suffered life-threatening injuries. a 14-year-old boy was also wounded. >> i am sophie kamaruddin with a check on the markets. asian markets settling down after the tech-induced a glut we saw tuesday. the hang seng leading the advance as oil players leave again. tencent buying a fresh high ahead of its results due later in hong kong. stocks in malaysia.

, edging lower by other currencies. the korean won under pressure, sticking to an accommodative policy. continuing on a steady growth path. in the commodities complex, shanghai copper trading at a six-month low amid demand concerns. steel and iron or on the rise, bearish demand for iron ore. , bringing expectations on market rebalancing. that is helping the stock find support in asia. petrochina among those. its earnings are due thursday. , want to highlight g #btv 9502 illustrating how emerging asian bonds have been outperforming treasuries, returning 13% last year. global funds are turning

cautious. the possibility of a hawkish fed. not everyone is turning bearish. some countries offer attractive risk diversification. caroline: this is bloomberg technology and i am caroline hyde. it is the latest development in the facebook saga. facebook is being sued in california in court by its shareholders. they suffered losses after it was disclosed that cambridge analytica obtained profile information of 50 million users. facebook's failure to safeguard the privacy of users is being blamed for a slump in share price following the revelation that user's today to was harvested without permission, via a research firm connected to donald trump. talking of government, we are seeing with the reaction is with both sides of the atlantic. what tech companies are facing

in washington, and also covering the legal side of the story -- first of all, sarah, let's go to you and talk about the government reaction. i sit here in london, i have been speaking to mp's. they want to speak to mark zuckerberg. it seems the u.s. politicians want to speak to them as well. sarah: facebook is under unprecedented fire in washington. we have lawmakers on both side of the aisle asking for briefings. the company is going in today and tomorrow to talk with different members of congress, and there are calls for some for mark zuckerberg to come to washington, although we don't have anything scheduled yet. a full committee has not scheduled a hearing or asked him to come and testify. we also have a federal agency that is the chief privacy watchdog for the u.s. looking into whether facebook violated

its privacy practices here in the cambridge analytica scenario. caroline: talk to us about whether they violated the 2011 consent decree. this could mean fines? sarah: just to remind everybody we do not have a federal privacy , law. the way facebook is looked at by the government is because the ftc will enforce what a company says and what it does with -- what it promises its users it will do about privacy and protecting data. in 2011 they slipped up and acknowledged they slipped up, and now they have to ensure they have gotten informed and explicit consent from users before sharing any data with third parties. caroline: fascinating, there is the government angle. looking at the investor-based angles, talk to us about this lawsuit. do we know who the investor base is? >> it is all investors who own

shares after february 3, 2017, and that is when they released their 2016 annual report at , which time they addressed the threat of any misuse of data by third party users. but they did not get into any details regarding such a breach. at that point in time investors believed they should have at least known what is going on with their data to inform investors and shareholders and once again, similar language was used in the next quarterly report in may when they did not disclose any potential losses. these attorneys believe they should have known what was going on with their data at the time. caroline: this is in california court. give us an idea of how quickly these lawsuits will occur, how we might see a response from the company. where do we expect to go after

these announcements from the investor base? kartikay: the suit was filed in san francisco. the lawsuit was filed today. eriod will be a notice p for facebook to reply, likely a month. the lawsuit itself will take months, if not longer. it is hard to tell exactly how long this litigation will take, especially as complex as this one is with data privacy. caroline: when you are seeing such a significant fall in the share price, $45 billion wiped off and many will be asking -- -- asking for their just dessert s. great to have your opinions on the government and legal angles. year mark zuckerberg made headlines with his tour of the american heartland. now, the facebook ceo may have to embark on a tour of europe and its governments. lawmakers in the u.k. and european union requested zuckerberg appear to answer questions on the alleged misuse

of data by cambridge analytica. we spoke to a member of parliament to see if zuckerberg responded to his invite. >> i think he should agree and it is down to him whether he chooses to or not. i think it has been noticeable we have heard nothing from him so far since this story broke a few days ago about the data breach and involvement of cambridge analytica. there are important outstanding questions we have is the committee following the session we had with facebook in washington last month. we asked them that expressly about the relationship with cambridge analytica. we asked him about the way in which developers can harvest user data from facebook and about the enforcement powers facebook has to get control of the data. we haven't received satisfactory answers to any of those questions. i think it requires somebody at the top of the company whose job it is to know every detail and go through this properly. sarah: this misuse -- caroline:

this misuse of data of 50 million users of facebook and investors surrounding that 2016 presidential election you are , investigating potentially the role of social media within the uk's vote to leave the eu. you think russian manipulation was done then and facebook has anything to answer regarding the brexit vote? >> we know there was russian involvement during the brexit campaign. at the moment, from what is published, that appears to be a lower level than in the case of the american presidential election. it is something we are looking to map out and it is incredibly important. the u.k. information commissioner also launched a investigation looking at how data was used during the referendum period. i certainly think data analytics were used at that time. to some extent by russian agencies, but the lead campaign, as well. we need to understand more about the way in which data can be used to target them.

sometimes russian agencies and bodies they do not know. there is little transparency about where those messages are coming from. caroline: we heard your voice calling for mark zuckerberg. the ftc is looking into whether facebook potentially has broken the consent decree. do you think regulators will get involved in the united kingdom as well? a very yes, this is interesting issue. in european law, there are restrictions based on people's political views and opinions. with that legislation didn't necessarily consider was the fact that people may harvest huge amounts of consumer data, data that people consented to give as part of surveys on their opinions or consumer habits. but they never consented for that data to be used in a political campaign or held by a company that is not a registered political party. this is a big area of concern

and something the u.k. information commission is looking at. caroline: do think any changes will could -- will be put in place internally by facebook? what changes would you like to see put in place to put your mind to rest? damian: our concern is the way they manage and handle data. to understand how easy it is for developers and others to acquire data off of the facebook site by engagement with facebook users and how facebook polices what happens to that data. for many people who are facebook users every day of the week, it -- they will look at the story and ask, how, facebook has that much data about me and what do they do with it? and is that data safe? that is what facebook has to provide assurance on, that they are a safe custodian of that data. a lot of outstanding questions we have about facebook is around that. there's also the other question about promoted messaging through facebook to pay for messaging through facebook itself. whether facebook is good at

policing that messaging and understanding who the advertiser is, and if it is a political campaign, the advertiser is not breaking any laws by seeking advertisement into a foreign country. i think these are important areas of ethics we need to get to the bottom of. >> do you believe social media companies like twitter have become too powerful? damian: they have a huge amount of power. i think if they think they are too powerful, therefore above the reach of governments and parliaments -- then i think there are organizations who believe those things they will find it -- ultimately it doesn't matter how big you are, you have to comply with the law in the territories you operate, and if you don't, there are functions that can be used against you. we want facebook to be responsible and act in a responsible way. at the moment it is incumbent for them to demonstrate that they are and people run the

company to be more forthcoming and provide clear answers to the questions we are putting. caroline: have they responded to you as of yet? we have outstanding questions from the hearing we had with facebook last month. they still haven't responded to those outstanding questions even though the hearing was a month ago. we said today we want mark zuckerberg or someone of similar or equal rank in the company to respond. they need to explain the cambridge analytica data breach and what occurred and why is it they knew about this two years ago and did not act to ensure that the data was recovered. caroline: that was british member of parliament damian collins there. in the halls of capitol hill, criticism of facebook reached a fever pitch. senator john kennedy of louisiana is part of a bipartisan effort to publicly question tech ceos before a hearing. he caught up with kevin cirilli to discuss why he wants to get facebook to washington.

>> is no longer a company -- it is a country. it is very powerful. it touches millions and millions and billions of people. data is the new oil. we need to ask hard questions because some of facebook's behavior lately has gotten into the foothills of creeping. caroline: an update on the salesforce deal to buy mulesoft. about $6.5 billion deal. the company has also raised its 2022 sales goal to $22 billion because of the purchase. we will stay on the headlines. this is bloomberg. ♪

caroline: breaking news

regarding uber. it is from the national transportation bureau. saying the uber investigation will address operating concerns of the car. the surrounds the tragic events of an uber autonomous vehicle striking a woman and killing her. it will address driver interaction. the national transportation bureau says they have had investigators in tempe on tuesday collecting information. we will have more on that story later. meanwhile, the london-based has a $375ital firm million fund to help young companies in europe and israel grow. the intention of the fund is to make average investments as much as $30 million in areas such as enterprise software, fintech and health. now, the managing partner. they have been with the company

for 13 years. congratulations on the new fund. write,e bigger checks to where's the sweet spot? >> we are very excited and we think the bigger fund is really a reflection of the opportunities available for european companies. the reason silicon valley and europe -- great companies can come from everywhere. we have great investors from hamburg, germany, tel aviv, prague sweden. ,we want to keep doing that, finding companies ready to scale up and help them become successful. caroline: plenty of companies become globally successful, one successful in the u.k. you just invested in. you put more money to work in their latest round. an institutional investor, an unnamed one. i want to talk about the new investors coming in today.

.e have a company in germany you have softbank, vision fund putting phenomenal amounts of money into companies in the u.k.. is there a lack of capital in europe or is everyone getting , into the party? davor: we still think there is a funding gap in europe versus other markets like the u.s. this is where i think you see some of the new players coming into the market because they see that increasingly europe is building global champions. spotify, some of the global leading companies are homegrown in europe. we are seeing a lot more international capital interested in investing in these companies. i think what we also see is a lot more new entrepreneurial ventures being started. many more than we saw a decade ago. caroline: what about the likes of spotify coming to the market listing to the u.s.?

they are listing. does that really benefit the ecosystem? you have funding circles talking about a ipo. what about your own portfolio? ipo's we definitely think are a good route, often times fund-raising roots, because oftentimes people don't sell into the ipo they are fundraising for continuing to grow the company. ultimately, a healthy ipo market is good for all investors involved with the company. we're definitely excited to see spotify potentially listing and some of the other ones. i think it is a good trend benefiting the ecosystem significantly. caroline: what about europe? you come here on a day mark zuckerberg is discussed speaking in front of european mp's. how do you see the regulatory environment in europe helping or hindering the growth of startups born and bred here? davor: most of our companies are still fortunately or unfortunately too small to be

on the radar of the regulators. i think we are having quite a unique time in our history where you have some of the companies like google, apple, facebook -- amazon, reaching sizes -- close to 3 trillion in capitalization , something like 15 times growth in a little over 10 years. i think technology is clearly on the map now. for a long time we have benefited from having free access to search and social networking, cheaper access to wireless networks, but ultimately now we realize we need to also address the questions around -- what is -- what does this do for consumers? what does it do for businesses and small startups? they work with a lot of the folks in the technology ecosystem. i think we need to ask tough questions. how do we proceed? i think you were talking about uber and some of the questions

that ai brings to the table. how will artificial intelligence change how we view liability? there are lots of questions we need to start addressing now and this is what we are seeing. caroline: what about you as a vc and the questions you ask the portfolio companies? we are talking about diversity needing to be raised, more women, more ethnic diversity. what about as companies that grow, such as uber keeping , ethics in line? how do you address that with entrepreneurs? davor: ethics is important to us and we as private investors take great care and diligence to try to evaluate and mitigate the potential risks. we have some companies working in terms of helping regulating or managing fraud and other things that are born into the -- that go on in the market.

one of our companies in israel, highly successful, they try to manage fraud that goes on in the mobile advertising ecosystem. i think we can be helpful and trying to solve the problem that we are seeing today through entrepreneurial ventures. caroline: thank you very much for coming in. and congratulations on the new fund. coming up, as we wrap up our coverage of facebook, we will show you the chart you need to see. this is bloomberg. ♪

caroline: while the financial community watches an internal crisis unfolds facebook, the , valuation lost in the process, amazon ceo jeff bezos tweeted this. a picture of himself in the sunshine with a robotic dog. mark zuckerberg may see himself

sinking one spot on the rich list, but jeff bezos is sitting pretty on the number one spot. especially as amazon of all the head of alphabets in market value for the first time. wrap things up, i want to show you what last chart on the bloomberg terminal. g #btv 3765. we are turning our attention to the trials and tribulations of facebook and market capitalization falling 45 billion over two days, and that is tumbling below the blue line, the 50 day moving average. that is a tech indicator for the tech stock that is not looking pretty. as we have said before, the contagion starting to ease and we see the likes of amazon and alphabet managing to rise. netflix up despite the fall in facebook stock. how long will the story continue to unfold? that does it for bloomberg technology.

a reminder, we are live streaming on twitter. check us out. this is bloomberg. ♪

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