♪ caroline: i am caroline hyde in london. this is the "best of bloomberg technology," where we bring you all our top interviews from this week in tech. coming up, zuckerberg breaks his silence and is called to testify in dc. the fallout over the revelation that data firm cambridge analytica got access to data of millions of facebook users. plus, uber halts its autonomous car tests after a pedestrian in arizona is killed. where uber goes from here. and tencent revenue jumps, but

the company celebrates the good news with a warning. we will look at the latest earnings report out of asia's most valuable company. first to our lead, and what a week it was for facebook. the fallout continues from the site's exploitation of data from millions of its users by political consulting firm cambridge analytica, which has links to president donald trump. now the stock got hammered this week and led to a larger slump in tech. facebook ceo mark zuckerberg broke his silence on the crisis after staying silent a few days with a mea culpa on cnn wednesday. mark: this was a major breach of trust, and, and i am really sorry that this happened. and we have a basic responsibility to protect people's data. and if we can not do that, then we do not deserve to have the opportunity to serve people. caroline: zuckerberg pledged to investigate whether cambridge analytica still holds the information it obtained from a third party app creator and promised to broaden the probe of

-- to other developers that may have run afoul of facebook's rules. still, these pledges were not enough for some, and on thursday, zuckerberg was called to appear before a house panel, saying zuckerberg is "the right witness to provide answers to the american people." now emily chang spoke with mike hoeffinger on thursday. he is facebook's former head of global business and the author of "becoming facebook: the 10 challenges that defined the company that's disrupting the world." ♪ mike: i think we have a very, very unique situation here, simply because of the scale at which facebook is now operating, and the relevance that it has in all of our lives. i think we saw mark say exactly the right thing yesterday, that this is of course all about trust. when you get into a situation like this as a leader, you have to remember, that it is about trust and heart and communicating in that way, as opposed to communicating

logistics and blame. and i think we have seen even giant technology leaders struggle with rationalizing their way through the pentium processor crisis in the mid-1990's, or even steve jobs trying to rationalize the way the iphone antenna gate back in the 2000's. the time is now for him to show how committed he is to these expectations that we have made very clear to him. emily: you have seen facebook weather many other crises. do you think the that this time, public trust in facebook is fundamentally damaged? mike: i think it is, and i think it probably comes on the back of a 15-month arc where we began to wonder a little bit how we feel about newsfeed, where we began to wonder whether we were potentially being manipulated, either organically or through paid means. and we are now, of course, in the last week, we have become very cognizant of the fact that our data may be making its way to places that we had never agreed to. and facebook clearly needs to understand that we don't expect cambridge analytica or aleksandr kogan to take care of us.

we expect facebook to take care of us, and i think that is the message that mark, sheryl, and others are receiving very clearly now. just given the scale that they are impacting our lives in good ways, and perhaps in ways we need to take a harder look at, it is important that they hear that now. emily: absolutely. you know, there have been clips circulating of things that zuckerberg has said over the years. in 2009, he told the bbc facebook would never sell user data, that that data belongs to users. is that a lie, or is that just painfully misleading? mike: i don't think it is a lie. i think it is important to understand, to the extent facebook sells anything, it is access to people, to communicate with people, to connect with people, but what they have to do is really take great care of that access. who are the players that are able to receive that access? who is given access to people,

and what are they able to communicate? and understanding that while he wants to open the world to many, many voices being able to communicate on facebook, which has been so crucial to the positive changes that they have brought, you know, to 2.25 billion people using it, that they need to really take care of us when it comes to the manipulators that want to enter the system, and to create a system that does not allow them to be a part of it to begin with, and certainly, does not allow them to get distribution into the newsfeed that plays such an important role in our lives. emily: that said, how does facebook make that decision on who should and who should not have access? if in the end, it is a judgment call, and obviously we know there are malicious actors out there that want to break the rules. and then, how does that ultimately impact the business, if that data is now not available? mike: absolutely right. i think there are some things that are incredibly clear. for many, many, many years, facebook has had to prevent

nazi-sympathizer content, for example, from being distributed in germany. they have had to, of course, keep nudity and other objectionable content off the platform. those are extremely black and white, very clear issues. when it comes to subtlety, you know, communication, maybe even by smaller voices -- how -- you cannot just ask yourself, how big is the voice that is speaking, therefore they should have access? the point of facebook is that so many voices around the world can have access. but we began to hear a little bit more from zuckerberg yesterday, actually, about their ability to use artificial intelligence to interdict what are clearly fake accounts and what are, you know, we are beginning to use the phrase "bad actors," and i think we will see an era now going forward of mark really beginning to put his finger much harder on the scale of newsfeed, to really throttle and close the aperture on distribution on newsfeed for sources whom we cannot trust clearly, verifiably, and also for sources that we simply may not know a lot about.

caroline: on thursday, tech stocks suffered their worst day in six weeks, erasing almost $200 billion in market cap from the industry. now they were pulled lower as president trump ordered tariffs on chinese goods and facebook continued to trade lower amid the cambridge analytica data scandal. emily chang caught up with romaine bostick, editor of bloomberg's top live blog, and bloomberg gadfly columnist tim culpan on thursday to talk through the market turbulence. tim: it is interesting, if you think of the areas that donald trump is talking about, essentially metals and so forth, metals and minerals only account for less than 7% of u.s. imports from overseas, so it is actually not a very, very big area. the largest area is electrical machinery, and that is a very broad term that includes everything from mobile phones to microwaves to electric motors. so, it is very broad, but that is a much larger area of imports. but then you look at the tech sector in the u.s. the largest company is apple, and of course, that is a hardware maker. then we have got amazon, google,

and all those other companies, microsoft, they do not really do much hardware. and so, these are companies that if you put up barriers, you know, tariffs on -- who are you looking at there? because you know, the chinese, they make a lot of electronic products, of course the iphone and pretty much every smartphone in the world, apart from those made by koreans, is made in china. most computers are made in china, often by u.s. brands. so, you know, when donald trump talks about putting on tariffs, and he talks about protecting the united states, what is his objective here? it is not very, very clear. he seems to be lashing out. and of course steel is a very -- is a great area. because you can talk about american workers and all of the steel jobs lost, but you know, in the tech sector, most of the u.s. tech is actually not hardware anymore. emily: now, romaine, walk us through what exactly is happening with tech stocks. you know, what relates to tariffs, and what relates to specifically what is going on with facebook and the cambridge analytica controversy? romaine: yeah, well, you have got two big issues here. one there is one, there is this

issue about the fact that tech was sort of this leader, and most of the profits that folks have seen this year in the market have largely been in that large cap tech space and in that semi conductor space. so, when you get this sort of crowded trade where everyone is sort of benefiting on the way up, as soon as there is a negative catalyst, everyone is going to rush out the door. that is what you saw with the facebook, when the facebook allegations came to light last week and spilled over into this week. you are also seeing it to a smaller extent with trade. there is a bigger issue here, though about just the general idea of how much people trust this market right now. there is -- we went through this period in this market where everyone was buying on any small bit of news that they could hold onto. now, we are seeing the exact opposite of that. any reason people have to sell, they are selling. facebook, the facebook matter has raised a lot of questions about the viability of the business model. it is -- we are still a long way from knowing exactly how this is going to shake out, but not a lot of people trust the process right now to wait and see what is going to happen. you are seeing the same issue on trade.

people just really aren't trusting in the process of what is going on out washington. and they just don't want to wait around and see. emily: tim, how is china specifically likely to respond to these tariffs? tim: well, what is interesting, i think is beyond the tariffs -- the thing about tariffs, when trump comes out or any u.s. leader comes out and issues a big statement, what you are doing is giving fodder for the chinese to react. if the u.s. does not do anything, or does not say anything, put anything in writing, then it is much more difficult for the chinese to react. but when you are putting something concrete down, concrete measures such as tariffs, then the chinese can turn around and say "hey, you are starting a trade war. you are doing this. you are doing that." and one issue that came out of the news today is beyond the tariffs, trump has told the treasury secretary to look into finding ways to restrict investment into the united states by chinese companies in order to protect technology. now, this has been an ongoing thing for many, many years, even before the trump administration -- the obama administration, even the bush administration before that.

this has been a big concern. but this has been handled by -- the committee on foreign investment in the u.s. works behind closed doors, chaired by the treasury secretary, and when they come out with a pronouncement or they knock back a deal, they do not have to tell anybody why. they simply recommend to the president, and the president would go through with it. but if they come out and put down in writing the rules of you know what can and can not be invested by chinese into the u.s., then suddenly it is put down in writing concrete steps that the chinese can then react against, and they can hold a piece of people and say "hey, you said that we cannot do this." well, "we will not allow you to do that." so, the fact is they work behind closed doors -- we are pro-open government, but the fact that it works behind closed doors does give the u.s. a certain amount of cover to say "well, we are not going to tell you exactly why a deal was knocked back." but if you put it down in writing, then you are giving ammunition to the chinese. caroline: thanks to bloomberg's romaine bostick and tim culpan. now this week, youtube introduced tighter restrictions on videos involving weapons.

they come in the latest battleground in the u.s. gun-control debate. the site was previously a popular platform for firearm enthusiasts. youtube will ban videos that promote or link to websites selling firearms and accessories and prohibit videos with instructions on how to assemble firearms. now coming up, uber's fatal autonomous crash in tempe, arizona. how big of an impact this might have on the future of autonomous driving, next. and if you like bloomberg news, check us out on the radio. you can now listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

♪ caroline: now to the tragic death of a woman hit by an uber self-driving car in tempe, arizona. footage released on thursday brought fresh scrutiny to the

ride-hailing company's autonomous vehicle technology. the video shows that the pedestrian had crossed at least one open lane of road before being hit. and experts are saying uber's self-driving sensors should have detected her. uber has halted all autonomous vehicle tests. we spoke to "bloomberg technology's" mark bergen on tuesday as the story was still unfolding. mark: i think what the autonomous vehicle community -- a lot of companies at large are still waiting to see if there was a perception issue, if there was an issue with the car, if there was an issue with the volvo that uber was using, or if like the police are suggesting, whether it was something purely unavoidable, whether it was human or software in control. caroline: nothing -- real update from uber, but as you say, other companies, the likes of apple, waymo, gm, all building their own autonomous vehicles or or testing that sort of technology. are we yet to hear or see any reaction from the sort of companies? mark: we have seen some reaction.

toyota has suspended their autonomous testing. they put out a statement this morning, saying they are concerned about the emotional state of their safety drivers. gm crews has said that they are continuing to plan. there is no stops there. no stops. they are planning to launch service next year. we have not heard from waymo, which is considered the technical leader in the field. we have yet to hear from apple. there is one city, boston, has actually put a ultimatum. temporarily pausing all tests there. they have a startup called nutonomy that is testing in the city. we did hear that pittsburgh, where uber is testing, and other companies -- i have said that these companies can continue to test on the roads, so they are not changing any plans. caroline: there's an interesting piece out today really showing that perhaps apple is getting in into autonomous vehicles, far more than we perhaps had perceived, particularly in california. can you update us on that? mark: yeah, as far as we know, it sounds like apple has more cars on the road than waymo. part of that maybe that waymo has been doing this for a very long time, and they have been testing on california roads for

almost nine years now. and what waymo is -- california has been a little less receptive. that there has to be a human in -- they have laws now on the books that there has to be a human in the vehicle. and there are states like arizona, texas, and washington, that are a little more deregulated. and so, you have companies like uber and waymo that are just testing a lot more miles now in arizona than they would be in california. caroline: "bloomberg technology's" mark bergen there. now, as we know, companies, including alphabet, general motors, uber, and tesla, are investing billions of dollars to develop driverless technology. and loup ventures' gene munster believes humans should not drive, and that traffic and pedestrian fatalities will decline under autonomy. emily chang spoke with him on thursday. gene: this is going to take longer than people think to get to this self-driving world, but it is going to be a bigger change than people think, too. i look back to pictures of 1917. that is when horses were at the peak on the roads in new york

city, the most number of horses. when i see a car today, i think of those, of those same horses. that is what you should think of when you see a car out there, is this is going change dramatically. but i want to get to your question. the reason why i think that this still is going to power forward, and we will see this autonomous future, is that ultimately, humans are not good drivers. every year in the u.s., 5400 people are killed -- pedestrians are killed by cars. another 1000 bicyclists are killed by cars, and it just simply -- that rate has been increasing. it increased by 11% last year. that is the biggest increase it has had since they have been keeping records for the past 30 years. so, something is fundamentally wrong with how humans drive. so, i just want the big picture to be on the table. and just to talk a little bit about tempe is i do not think this fundamentally changes the trajectory of all those trends

we just talked about. is that machines are better drivers than humans. emily: so, you have a new note out about where specific automakers stand. you know, talk to us about who is in the lead, and uber specifically, given that they are the ones behind this horrible crash. gene: so in the lead is waymo, just because they have the most miles driven. general motors claims that they are going to have level-five autonomy, which is no steering wheel, in 2019. so, some may say that general motors is in the lead, but i want to put a little bit of perspective on that prediction from general motors. is last week, we did a call with an expert who works around these vision technologies that are used in self-driving cars, and when she talked about that prediction from general motors, and she is based in detroit, she laughed, and i have a feeling that she is still laughing at that prediction. and so, when we think about defining what is in the lead, a simple statement from general motors is not necessarily evidence of that lead. but i think that waymo is, from a technology standpoint, in the lead. i think another company people are not talking about is what

apple is doing. they, surprisingly, have the most number of self-driving cars on the road in the state of california, 46. and they also have a bus called p.a.i.l., the palo alto infinite loop shuttle that they are working on. so, the simple answer is that companies like waymo, tesla, apple, and uber still is in the lead. emily: so, you know, how far away, then, given what has happened with uber from -- you know, how many years away are we from, you know, being sure that these self-driving cars are actually safe and safer than humans? gene: it is probably 2025 before we actually see measurable fleets out there. that is how it is going to start. it is self-driving cars that have limited speeds and limited areas that they work in. so think of this and call it

seven years away. as you mentioned, mark grangaard from our loup ventures team went through and looked at all of the major automotive companies and what their predictions are. most of them say they are going to have some high-level of autonomy between 2019 and 2023. so we think it is beyond that, that it will get pushed back. but it is, as we talked about, is inevitable. caroline: that was loup ventures' gene munster. now coming up, tencent raking it in thanks to wechat. we head to hong kong and look at just how well the chinese internet giant did during its fourth quarter, next. and a reminder that all episodes of "bloomberg technology" are now live streaming on twitter. check us out at technology weekdays 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪

♪ caroline: a story we continue to watch, uber co-founder travis kalanick is buying a controlling stake in a real estate company called city storage systems for $150 million, and he is installing himself as ceo.

now the company redevelops distressed retail, parking, and industrial real estate. kalanick was ousted as uber's ceo last year. he has since sold $1.4 billion of the company's stock. now, big news for chinese internet giant tencent, announcing on wednesday that its profits doubled to $3.3 billion during its fourth quarter. a driver for growth continues to be wechat, as chairman pony ma pointed out. pony: our platforms also continue to gather strength. combined in the offer from we chat, we saved $1 billion after the chinese new year in 2007 and up to $1 billion after the 2018 chinese new year. caroline: we headed to hong kong and spoke with bloomberg's chief north asia correspondent stephen engle. stephen: tencent still stuck to its bread and butter, and that

is, of course, mobile and pc gaming, with like honor of kings, and also leveraging off its more than one billion users in its wechat social messaging platforms, also qq, to drive that user base as well to other services that they are spending a lot more money to build out to go beyond the core competency, like cloud computing, like artificial intelligence, like the financial services, the wechat pay, and the like. so, the margins have been squeezed. now when you have more than one billion users on wechat alone in the first quarter of this year, it kind of begs question, and these were questions that were raised to pony ma yesterday here in hong kong at that news conference, and that is, you know, is there a chance to have a security breach, a la facebook, at tencent? and this is what pony ma -- or actually this is what martin lau -- he is the president of the company -- had to say, basically saying there is no chance that could happen. martin: this is at the top of our concern. because we felt this is really,

you know, our responsibility, and this is you know the basis of the users' trust with us. you know, that is why we have a lot of different measures, including technical measures, to prevent the leak of data. stephen: now, a couple of other notes from the tencent press conference, another reason why the margins are being squeezed is the costs soared about 72% in the fourth quarter as they have been acquiring more content in video and music, and also martin lau saying, you know, the timing is getting closer to a possible ipo for its music division, also saying that they could, if the market conditions are correct, return to china, with a domestic listing, a cd-r listing, but again, the rules in china would have to be changed for that to happen, but the chinese government wants these big tech companies to come back and list on the mainland. of course, tencent is listed in hong kong. caroline: yes, stephen, it is

fascinating actually how much tencent is spreading its investment. even over here in europe, just earlier this week, we had tencent put money into a thin tech startup based in germany called n26. and some of these are listing and managing to contribute to overall profits, but you say about listing at home, what about the general focus of the business going forward? are people worried about investments that they do make in these areas? stephen: well this is a huge competition with the likes of alibaba, of course, that create this ecosystem, not only in china but globally. alibaba maybe has a head start on global. but tencent, they have acquired more than 600 companies or acquired or invested in more than 600 companies, so they are definitely going beyond their bread and butter in gaming and social media, in payment and

financial services in other developing parts of the world, including of course europe. caroline: bloomberg's chief north asia correspondent stephen engle. now coming up, back to the fallout of the facebook data story, we turn to the political response both in the u.s. and europe. next. this is bloomberg. ♪

♪ >> welcome back to the best of bloomberg technology. i'm caroline hyde in london. let's turn back to the top story of the week, . mark zuckerberg made headlines with his tour of the american heartland. now he may have to get ready to embark on a tour of europe. and as governments. lawmakers in the u.k. have requested that he appeared before them to answer questions on the alleged misuse of cambridge analytica. we spoke on tuesday about whether zuckerberg has responded to his invite. >> i think you should agree, is down to him whether he chooses

to her not that i think it has been noticeable that we have heard nothing from them so far since this story broke a few days ago about the data breach and involvement with cambridge analytica. i think there are important outstanding questions we have as a community following the session we had with facebook. we often express this about them relationship with cameras analytical. we estimate the way in which developers can harvest user data from facebook and about the enforcement powers facebook had to get back control of that data. our that we have received satisfactory answers to any of those questions. i think it requires someone at the top of the company who can go through this properly. >> this misuse of data is surrounded in the 2016 presidential election. do you think russia and regulation was done then? you think facebook has anything to answer regarding the brains about? >> we know there was russian

involvement in the brexit campaign. this appears to be mostly in the american presidential election. that is something we are looking to map out. the u.k. information commissioner has our own information looking at the way data was used during preparation. i figure was used by russian agencies but also the official leave campaign as well. i think we need to understand more. this will be sometimes with budgets agencies. there's very little transparency

about where this is coming from. >> we have heard your voice calling for mark zuckerberg. we are also here from regulators in the united states, there are reports that they are looking into whether facebook has potentially broken the consent decree. do think that regulators will get involved in the united kingdom as well? >> i think this is a very interesting issue. in european lot there are restrictions on holding data. based on political views and opinions. but that legislation did not necessarily consider is the fact that people may harvest is amount of consumer data, data people consented to give as surveys on their opinions and consumer habits. they never consented for the data to be used in a political campaign or to be held by a company that is not a registered political party. i think this is a big area of concern, this is something the commissioner is looking at. >> do think any changes will be put in place by facebook? >> our concerns are the way in which they handle and manage data. to understand how easy it is for developers and others to acquire data off of the facebook site

and then have facebook police, what happens to the data. for many people were facebook users every day of the week, they will be looking at this story and asking themselves how facebook had that was data about me and what they do with it. that is what facebook is to provide, that they are a safe custodian of the data. i think a lot of the questions we have for facebook are around that. there is the other question about promoted messaging through facebook. also, whether facebook is good at policing that messaging and understanding if this is a political campaign, if it is breaking any laws to seek advertising in a foreign country. i think these are important areas of understanding business practices and ethics. >> do believe that social media companies have become too powerful?

>> they have a huge amount of power. i think that if they think they are too powerful and therefore slightly above the reach of government and parliament, they will find that it is different, that ultimately doesn't matter how big you are. you have to comply with the law in the territories that you operate. if you don't, there are sections that can be used against you. what we should look toward facebook to do is to irresponsible and act in a responsible way. i think it is incumbent on them to demonstrate that they are and for the people who run the company to be more forthcoming. let's have there is money to?

>> we had outstanding questions from the evidence session, the hearing with facebook last month. they still haven't responded to those outstanding questions, even though the hearing was over a month ago. i think they do need to respond and explain around the cambridge analytica data breach, what occurred, why was it they knew about this two years ago but that the -- did not act than to enjoy the data had been recovered. >> that was damon collins. speaking with the european response to facebook, the european commissioner for justice spoke in brussels on thursday and said she was formulating a letter to facebook over the data scandal. facebook will likely escape unprecedented finding powers for the eu that will take effect on may the 25th. that means they can avoid paying at 25 million or 4% of the annual revenue, whichever is higher.

vonnie quinn spoke with the eu about this exact scenario and just what you expect to hear from facebook in the upcoming meeting. >> there are serious questions on how this could have happened. they had neglected this. they were following rules for the people. these are essential questions >> for the europeans. you are curtailed and what kind of sanctions you are going to impose. you said that you would be imposing drastic sanctions. how would you do that? ? states are doing this, for the united kingdom, in case of this, they can have the sanction up to half a million pounds. these sanctions differ from state to state. this will stop in may of this year because we are unifying the rules, including the sanctions of the new generation.

this will enable the member states to enforce much higher sanctions which cannot be applied on this current case. there is no retroactivity. >> that is may 25. you're asking the working groups, the 29 working party to investigate all of this. have you contacted every single nation and the you? are all on board with this? >> all of the states are represented. they met yesterday and they confirmed that they are unified in their lunch in the investigation and case they find out about the privacy rules and the right of people in the state. this is very important because i think that if they connect and join the powers than they can consolidated on european action.

>> could this set some kind of president? what are you hoping for as an outcome if facebook were to be found guilty or negligent in some way? >> i am not happy about this in any way. it is not only about data protection, this is about the threat to democracy and individual freedoms of people. of course, this will serve as a precedent for the future and i can state that in europe, we are ready for these cases, also for the preventive measures. as i mentioned, there are very strict rules to be abated in the

year, especially the consent of the people. we want the providers to have the consent of people. the people who must understand the purpose, while the data is collected and what that provider will do with the data. of course, the private debt providers are monetizing the data. the people must know what is behind that. >> that was the european commissioner for justice speaking to bloomberg's vonnie quinn. and in the haus of capitol hill, criticism of facebook reached a fever pitch. john kennedy of louisiana is part of a bipartisan effort for the hearing.

he caught up with bloomberg's kevin cirilli and discussed what he wanted to get facebook to washington. >> is very powerful. it touches millions and millions, billions of people. that is the new oil. data is the oil. need to ask questions because i'm a business behavior has gotten creepy. >> coming up, when it comes to cloud computing, salesforce is already a towering force and it looks to cement that stature with its latest acquisition, next, this is bloomberg. ♪

♪ >> while the financial community watches an internal crisis unfold at facebook with a loss of market valuation in the process. jeff bezos tweeted this, a picture of himself in the sunshine with a robotic dog. mark zuckerberg may seems out thinking on the world's richest

list but jeff bezos sits pretty in the number one spot. especially as amazon outdoes alphabet for the first time. when it comes to conquering the crowd, they are all buying to be the top provider. it is the letter that is viewed as one of the main disruptions in the field. the only large one with the 20% sales were for the past three years. she has its $6.5 billion deal to help expand the platform. we spoke with them on thursday prior to that could -- chief technology officer. >> if you look at the landscape of technology right now, i think it is changing more rapidly today that it has in generations. the world economic firm cause of the for the rest -- industrial revolution.

as my watch, amazon, alexa and for a company like this, we have buildings and engineers who can grapple with these changes. if you are a 100-year-old insurance companies, try to figure out how to provide a customer surveys is really challenging to do. fundamentally, that is the mission, helping every company in the world grapple with these technological changes and transform their customer experiences. this is empowering so many companies to do that. >> this announcement -- what can we read into it? it seems to be a desire to stretch beyond salesforce's core customer relationship management tool. >> if you think about what it means to transform a company that wasn't born in the digital era, this digital

transformation, we fundamentally think it starts and ends with the customer even if that means transforming a bunch of your legacy systems. the reason we are so interested in their soft and this concept of integrating all of these legacy systems is that it unlocks the data from legacy systems to enable people to participate in all of these amazing new experiences we are seeing on our phones and watches and through customer service experiences that are transforming businesses. i think the platform is amazing because it really enables companies to turbocharge the digital transformation. for sales first, they can transform the customer service is really our mission. >> salesforce has been a privative, the deal chatter around salesforce, i know you are intimately familiar with twitter, you are on the board, do you see salesforce making more big deals in the near term? >> we were back from what we

needed to enable our customers to achieve our goals. we will always consider building or partner to a compass those goals and then -- that will continue to be our strategy going forward. >> your current focus is trailhead acts. one of the objectives here? klitschko thing about salesforce as a platform is we are not just targeting developers, we are trying to make a platform that enables a much broader range of people to have access to these new technologies. this event happening in san francisco next week, the thousands of people that come here, many of them made a midcareer transition into technology, started outside the technology industry and one for free using our learning tools

like trailhead and by doing so, they were able to actually get a career in technology. what i think is so powerful about that is if you look at the landscape of technology today and follow the news stories you were just talking about, the societies relationship with technology industry has really shifted over the past few years. what i am so proud of at salesforce is we are really doubling down on this platform of empowerment and trying to create job creation engines. not only can we create our customer surveys by people can transform their careers to this platform. i think that is an empowering message. that is what we are trying to get across next week. >> you worked at facebook for so many years, you are very close with mark zuckerberg and sheryl sandberg. i am so curious for your thoughts on this cambridge analytica scandal. where did facebook go wrong? what do you make of samberg's response?

>> i think the trend i see is that broadly, the technology industry is coming to grips with the impact we are having on society. i brought up with that fourth industrial revolution concept. i think that captures how big this is. as the technology industry is maturing, i think we need to recognize that this isn't just about technology, it is about the impact on our society and my boss often talked about how important it is that modern companies lead with their values and particularly with the value of trust and work backwards from that value in every action that you take. i think that when you look at the lessons being learned in our industry, it is just reinforcing the most important thing in our industry which is trust, it is important that your company is crafted narendra values. i will think the impact with

these technologies is also completely understood by society. i think that is what is happening right now, these two things converging. >> right, you wonder if they were better understood by facebook. you have people like brian acton, the cofounder of what's at which facebook bought for $20 million same to delete facebook and other insiders really talking about the potential threat. are you in that camp? >> i have a great deal of personal connection and loyalty to the company. it is uncomfortable for me to talk about. the thing i would say is that is the right race to think about it -- these technologies have changed the landscape of our society. everything from the smartphone

to the social networks have changed the way we interact with each other. they're much more than technology. they change our behavior and our interactions. i think we all it does at salesforce -- it is all about stakeholders. that includes the communities around us, this includes our society. i think right now, the way i think about it is that these technologies are complex, their impact is very nuanced, how can we include all of the stakeholders in coming up the way to solve these problems? >> that was bret taylor at salesforce. still ahead, we will hear from the blackberry ceo john chen. his thoughts on whether big tex should get broken up. this is bloomberg. ♪

♪ >> virtual reality was supposed to change the world.

it had yet to really arrive. within facing -- let's try to make sure that it doesn't in the new headset. mark took it for a test. >> virtual reality, this was supposed to be the way of the world. it has yet to take off the way hollywood taught as it went. oculus has a vision of facebook trying to change that. their plan, the oculus go. it is the new strategy, it is cheaper at a different approach. unlike headsets from htc, sony and even oculus is i and range, the goal is a completely standalone device. it does need to be changed to a top of desktop work with his pc. it has a smartphone chip and a rechargeable batteries of it can be used similar to a phone, tablet or something like an ipod touch. you can watch movies on the go or interact with immersive

social media apps. according to the latest data, oculus has 20% ownership of the market. that shows 20% ownership by playstation to be our system. that gives oculus a lot of room for growth. at the same time, the our has been referred to as a platform that will soon be supplanted by ar, augmented reality, basically a cousin of the art that makes us the real world with the virtual world. tech pioneers are focusing on ar, not believing that the are is a winning long-term strategy. while the oculus go may be a hit product, it could be a short-lived success story. we will find out soon. >> now, blackberry has added another major brand to its portfolio partnerships. jaguar has agreed to license blackberry's technology. the luxury carmaker also will host some of the company's engineers to work on a new entertainment system.

blackberry also has deals with ford and qualcomm. jonathan ferro spoke with john chen on thursday. highlighting the news of the week and the current state of the crisis, we started the conversation by asking whether big tex should have to get broken up. >> as you can probably tell, 10 years ago, the name of big tex is quite different. technology has a way to reinvent itself. i'm not a big proponent of breaking it up. >> to reinvent itself, you need innovation and i am wondering whether these big technology firms foster innovation or competition. >> this is a great thing about technology. i remember when google first started out, young was dominant. when you first started out, netscape was dominant. look at all of the history of technology evolution, it is

about the people, the creativity, the brains behind it and adventure money. i don't to have a monopolistic in any way, shape or form. >> have some of these business models who are incredibly profitable, this motto was depending on personal data, to see that model being threatened with the last year? >> i think you're going to have them too far, that is my personal opinion. blackberry, we don't monetize data. certainly not against the customer provided the data. that i believe needs to be looked at. >> blackberry ceo john chen that. that doesn't for this edition of the best of bloomberg technology. we will bring you all this throughout the week. remember, all episodes of bloomberg technology are now live streaming on twitter. check us out on technology weekdays, that is all for now,

this is bloomberg. ♪

announcer: "brilliant ideas," powered by hyundai motor. ♪ ♪ >> ♪ i-d-e-a, ideas ♪ ♪ narrator: richard mosse is an irish photographer and filmmaker who immerses himself in his subjects, integrating documentary journalism and art practice to explore issues of conflict, displacement and perception. >> richard has deliberately set