the move follows the poisoning of a former russian spy and his daughter on british soil. >> together we sent the message russia'stolerate attempt to undermine values and will act to strengthen the resilience on nuclear related risks as well as fostering the case relative to overtime restraint. mark: the kremlin says russia and respond quid pro quo alleges that powerful forces in britain and the u.s. were behind the attack. moscow says britain has made european countries hostage of its anti-russian policy and a spokeswoman from the russian foreign ministry says britain failed to provide any evidence to accusations of moscow's involvement. north korean leader kim jong-il and made him surprise visit to beijing today in what is believed to be the first cap outside of the korean peninsula

since taking power according to people with knowledge of the visit who say it is not clear how long he will stay or who he is meeting. "bloomberg technology" is next. ♪ emily: i am emily chang and this is "bloomberg technology" and stocks recover from last week's events and we break down the biggest movers. federalbook is under investigation and trying to weather the storm. mark zuckerberg's keeps lawmakers and advertisers happy. and uber agreed to sell operations to a local rival and will discuss the return in the

global plans for the world's biggest startup. but to our lead, u.s. stocks surged from the weekly route in two years with major benchmarks climbing 2% on the escalations of trade tensions beginning to ease and shares of microsoft than 10% and other tech firms like amazon and apple also pulling ahead. for more we get to abigail doolittle in new york. abigail, walk us through the comeback. >> what a day for the major averages and stocks with a from selling pressures especially last friday, and today the buyers were out and buying the debt, encouraging that for the near-term ager averages and the nasdaq opened and a little bit positive today, and in steadily climbed on late morning and steadily climbing in the last

half hour of trading and some investors and surges say the real buying and selling happens in the first 30 minutes of trading in the last 30 minutes of trading. at the time the bulls were out, and the nasdaq outperforming at up three point 8% and all major averages having their best day since august of 2015. lots all about tack, and a of action hereby investors in part by microsoft, and morgan stanley had some very lush comments raising the price target by $130 per share with aspects of the cloud and operating margins, and that fored to put a little bit tech buyers, and analyst and morgan stanley take the call seriously. it seemed to help technology overall. there's a lot of other tech names trading higher including apple and intel.

we also have facebook and amazon at alphabet on the close all higher. that piece of the market action recovering as well. does welcome muscle a lot of high data stocks trading higher today and the real whipsaw reversal of last friday's action, and the last two weeks. overall, we are still lower. emily: facebook ending the day slightly higher but not making up for the week of losses last week with stocks down 14% over the last seven days. why isn't facebook part of this rebound? abigail: on the lows today facebook was down 6.5%, and official news came out the ftc probe the nonpublic privacy issues in the company and the data prices -- crisis they are facing. despite the fact it was largely known, slowly but surely as the

rally on the day seemed to grow, some investors became little unfriendly to facebook. i am not sure it will last -- this is a great chart on facebook. we see last year's pitiful uptrend in relation to the 200 day moving average and you see an area of congestion. on that data crisis news last monday, a big cap lower and that is bearish on tells you buyers were blindsided by the 200 day moving average and you can see facebook is dangling from that area of trading from before this. it's a disaster we could see facebook go below 140 this overhang of uncertainty and the possibility of fines and regulations. abigail, thanks so much. facebook is on track for its -- andonth since march the federal trade commission announced it is investigating

the social networks and see practices and this in turn triggered a warning from analysts who said this could cause some facebook advertising campaigns to the side. , first us is sarah frier of all, this headline from the ftc, how unusual is it for the ftc to actually confirm and open an investigation? it is very rare for an agency to come out and confirm what its target is and what inv the investigation has. of barrel acting head for consumer protection which will look into this question of user data. it'd knowledge it was concerned about the revelation of. stays of weeks and was want to look into this seriously.

know about thewe ftc investigation and how it might proceed? sarah's.ere are two first --to certify our sarah frier. sarah: an context of all the work the ftc has done on facebook and not done on facebook and not been on facebook, there was a 2011 consents created that facebook would have with the ftc where it had to alert users if their data was going to be used and get their explicit permission. fined, soey could be the ftc is looking if they deserve to be fined for the data that ended up in the hands of third parties who did not have a consensus to access it. emily: facebook can always put this back on users while he opted in, even if you did not understand what you are opting and for.

how do that play in to what the ftc is actually looking into? as sarah mentioned, they did have to get express informed consent so users have to be aware of what they are agreeing to with regards to the data. what the ftc will look at come and we want to have updates along the way because they said it is a nonpublic investigation -- but they are going to go back and look at how the data was transferred to the research firm and then to cambridge analytica, and whether facebook had a role in that and whether it violated the terms of that earlier agreement. lawmakers have been calling on mark zuckerberg to testify. yes it he well if he is the right person and representative on the house judiciary committee had this to say about legislation. >> i believe legislation should

be written in order to give the tech industry overall items from the united states congress. believe me, there are congress persons who are strong advocates of the strength of the tech industries touching up with those of the struck constitutionalists and should be a framework on how to protect the american people, but at the same time continue the business model of the tech industry. emily: in the meantime, sarah frier, has asked -- there must mark zuckerberg to testify in april. is this going to happen? it is an invitation and you can decide if this is something i want to do. if he decides he is not the right person than they can escalate their ask and make it more dramatic. in this particular asked from grassley, is also asking for jack dorsey to come in and speak

to today's issues. it is not just about zuckerberg. they want to understand the broader scope of the problem here. the data collection the companies do on our behalf to serve us the right kind of things -- a lot of it is happening in a weight we are not fully aware of. thank you both so much and will continue to follow. coming up, uber is selling operations -- and we discuss the ride-hailing in the region. and you can listen to us on the bloomberg radio app and on sirius xm. this is bloomberg. ♪

emily: uber has agreed to sell its southeast operations and grab will acquire operations to millions of people including food delivery services and in return they will take a stake in a combined entity and its ceo will join the board of singapore-based rap. grab. amatrice about this deal, is this a win for uber despite the money they lost in investing here and obviously the ultimate result, they couldn't go it alone and having 27% of the local winner, it isn't a bad deal. eric: given that existing valuations of ride-hailing companies, i think investing $700 million to get a huge chunk of a leader in the region and forming an alliance makes sense. it is good to have investment in

the money, and abandoning the market does the open question. what happens to southeast asia, is it similar to what happened in china bars their differences? eric: in china there is more concern of government intervention and there's urgency to cut a deal, and the southeast asia felt like uber could have kept going if they were to foot the bill. and as a tactical retreat local player will have advantages that uber wouldn't have. emily: give us a bigger picture because there is a key battleground areas around the world. eric: uber is now saying india and the latin america and the middle east -- we are focusing m&a.ant to be that a in acquire thoseto companies and not abandon them,

and there are former employees saying this is a less global uber after the deal. i think uber is going to have a tougher time negotiating with some of these other companies given they have shown weakness and the willingness to take a minority stake. there's going to be a lot of jockeying around doubling down, especially in india if they us't -- if they don't give 30% to get out of this market. eric newcomer who covers uber and ridesharing forests, thank you so much. will continue this uber deal, and the managing partner joining us from shanghai is one of the earliest investors serving on the board and was involved in the uber deal in china. win is your take, is this a for grab giving away 27% of the company? >> i think it makes a lot of

sense. the competition has happened in -- itand southeast asia has required a lot of investment and in some ways there is a lot of wastage in the process. the consolidation makes a lot of sense, and i think for both grab and uber and southeast asia. i think the threat -- what china and southeastdd asia is both a big deal for both companies. a largeber also got investment from softbank which has its hand in others ridesharing companies around the world -- how much do think that is playing a role in the decision being made about strategic partnerships? think he is an

also withl man -- and uber and grab over the years, and from his perspective, this consolidation makes a lot of sense. -- and i dod in it gonk that the local services is the direction to go beyond the ridesharing. if you look at what is happening in china, dd, despite consolidation, will face competition from ridesharing services. the competition is not over yet. i think the consolidation is a step forward for grab and uber to have a stronger lending on local services. emily: if that is the case, what is your message to the new uber

ceo about india, latin america? -- these markets similarly they should wave the white flag? jixun: i don't know enough about these other markets provide a good advice, but socially i think what we have seen in southeast asia -- the ridesharing service is a local business. i think it has to extend beyond just ride, per se. that the offer a more comments of service on your platform that requires -- including food delivery service. with higher density cities like beijing and shanghai and other cities in southeast asia like bangkok -- the ridesharing can be a strong contender to the services.

yet to have a competence of service on the ground. these other markets like india -- i don't know enough about them to make those comments as of now. emily: you have overseen a number of m&a deals whether it alibaba.r grab -- and do you see more m and a in the ridesharing space globally and locally? multiple, a bunch of local competitors continuing to square off in various markets around the world? think there will be more consolidation. china,mentioned, here in ridesharing services is taking off in a big way. you have not seen the same

phenomenon in southeast asia or other parts of the world. that itself will be a strong with.der to contend i think that maybe more consolidation, and the way we look at the services is not just a transportation service or network -- it is local services. user engagement can be high and it is a wide range offer rather than just getting a car ride. thank you so much for joining us and that context. coming up, a european robotics company is doubling down in china, details on this was automation service for next. this is bloomberg. ♪

emily: now to some tech news out

of europe, abb expects the double the budget and staff working in robotics in china over the next. . the audi have the largest market share in china so is driving this expansion? joining us now from london is caroline hyde. walk us through the expansion and what is behind it. caroline: this is a company with presence and china with 17,000 employees currently in the country and they want to double that and have 34,000 minutes. and double production. this is a company across many industry groups. we are talking oil and gas and mining, you name it they are in it. notably they want to provide robotics. at the moment china cannot get enough of them, even though china has to 30% of the world supply of robots, it is not much in comparison to the workforce. for every 10,000 workers, they currently have 100 robots.

if you go to other developed nations such as germany or singapore or south korea, they have three times that, they have workers,s per 10,000 so china has a lot of catching up to do so they want to plow investment and. notably the timing is right for abb because china is promising to help subsidize cities to be able to buy these robots and get them into their industry. companyow does this deal with the lax intellectual property standards that we have been hearing about for a long time? the u.s. recently it back with these tariffs. but you mustctly, have seen and china yourself is certainly what china is fighting back on, and that is why he is liking tariffs on chinese goods is the fight for intellectual property -- why he is hacking tariffs.

we have to beat them on their own game, and i love this phrase he used, and he notably said we have to write the book faster than they can read it. that is why they are pouring &d, and a port $1.5 billion in ted worldwide and is all about rmb spend. update onant the facebook, menu regulators are speaking out and we are hearing more from germany. what are we hearing from the region? caroline: it has come out fighting and i am not surprised, they have issues of data privacy if you want to have your business in berlin, they are worried about this. this is why we are hearing from the justice minister, she is saying in particular that the handling of private data by facebook has been intolerable. she met with richard allen come

at the head of public policy for europe, and apparently it is not enough and they need much tighter supervision of companies like facebook in the future. that is what germany once and they can slap on finds on content related to hate speech, and it looks that they are going to fight back. caroline hyde with that update from london, thank you so much will see later on the show. coming up, more coverage on the fallout from facebook. can the social network keep advertisers onboard? this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. mark: i am mark crumpton in your logic "bloomberg technology". bush's ambassador to the u.s. has washington's decision to expel 60 russian diplomats over the poor snake of a former

russian spy in britain is destroying what is left of the russia-u.s. ties. he criticized the move as a considered and poor vocative and said moscow will take an adequate response. in the months ahead of a mandatory election, malaysia is taking aim at fake news according to a proposal summit parliament today -- people convicted of creating and distributing misinformation could face imprisonment and eight $128,000 fine in the law will apply to anyone and side are outside malaysia regardless of nationality or citizenship. adult film star stormy daniels is suing donald trump's lawyer for defamation. stir --: falsely at to falsely accused her of lying, and her interview on 60 minutes was reportedly the most watched episode in more than a decade.

rejectedourt judge former presidents deal of a conviction of corruption charges and the move brings in a step closer to being barred from the presidential ballot and possibly imprisoned despite the legal woes -- he is leading post in october's presidential election. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. 5:30 p.m. inter new york and my colleague paul allen has a look at the markets in sydney. good morning mark, and trading is underway for 30 minutes in new zealand and we have the index higher by about two thirds of 1%. this is after a positive lead from wall street as we see major indices up the nasdaq 100 posting its biggest gains since august of 2015.

is a fear of asm trade war with china is receiving, and we have asx futures up 4/10 of 1% after the local index slumped on monday. and nikkei futures higher, and the aussie dollar closing in on $.75 u.s., and the yen the only major currency weaker against the u.s. dollar. of commodities, copper moving below its 200 day moving average. i am paul allen in sydney. nextfrom merck knology is -- more from technology is next. ♪ this is bloomberg technology and i am emily chang. back to our coverage of the facebook data scandal.

as reported earlier, a warning of campaigns on the social network, and works zuckerberg took full-page ads in the u.s. and the u.k. to apologize for facebook not doing enough to safeguard user data. is that enough to keep advertisers happy? is debbie,to discuss and is there enough for facebook to deal with, and you have analyst saying buy and sell, and you have done some detailed research, how do you expect that this will hit the top and bottom lines? >> that is something to be seen/ i'm going to be interested in seeing what does the quarterly results that will be revealed in a few weeks. for now i think advertisers are thinking about a couple of important issues and the first is, what our users doing? are a lot of them doing that #delete facebook, or keeping

accounts but using facebook last? does that leave fewer hours of time spent on facebook and less room for advertising? concerns about any regulatory impact on the data they have access to, with regards to targeting advertising. if there were any regulation the would involve reducing ability to target advertising, that is going to impact their ability to use facebook going forward. i think that is on the mind of advertisers as well. emily: let's talk about engagement, i have a chart here which shows you the daily active users and the percentage of monthly active users. it is an interesting way to examine engagement and how many users are going to that at every single day, and we are seeing at plateau. how much of a concern is that? debbie: i think obviously

facebook does want to continue to see growth in daily active users. they also want to see growth and just people who absentmindedly scroll through a feed but actually interacting and talking to people, engaging with friends and family. that is why you saw facebook a couple of months ago we do algorithms the favor that content from friends and family because they need people to spend more active time on facebook. not just logging and once a day to randomly look at what is there. emily: talking about advertising, in particular there is questions about how facebook will potentially involved the way it uses data in order to target users and target advertising. i have another chart here which shows that as the prices of ads have grown, growth has actually slowed.

what you think advertisers are going to do here. are they going to wait this out and keep pouring in money on facebook because it is still one of the best ways to reach a specific user, or are they going to leave? those our conversations we are having right now with emaar nurse, and i can tell you preliminarily is that facebook is still one of the largest platforms around in order to reach a massive audience of people. yet to remember at the end of the day a lot of major brand advertisers still want to reach a lot of people. that is one side of it. i think targeting is another issue. to precisely target people on facebook is something advertisers love about facebook. if there is any limitation to that going forward that is going to give them some pause.

looking forrtisers branding goals or the massive reach are going to continue to use facebook and continue to want to spend time and dollars there. and then watch what happens next couple of weeks or months with regards to usage. emily: debbie, was great to have you on the show and i will continue to look at what this means for facebook and advertisers with michael wolf. pirated that it was president of mtv networks and a yahoo! board member and joins me now live from new york. is, just speaking to debbie earlier with the power that facebook still has and the this, howcrisis like big of a deal is facebook going through right now? how much of an impact will this have on facebook from a reputational and business perspective? stepping back and look

at the big picture, facebook is a integral part to advertisers today, and advertisers are looking to facebook to help drive sales. if you think about it, you segment advertisers and they look at branding, and there are advertisers that use global -- google and facebook to drive specific sales. apart from google and facebook, those are two of the most important ways in which advertisers knowledge i've sales but also drive visits to a dealership and coupons. think it is going to be an important part of what advertisers to and will continue to be. i want to ask you from a reputational perspective. theyrms of trust of users, might say users opt into this. opt in or check a box they don't understand how data is used and facebook has done a good job been clear about

how their data is used -- has not done a good job. will this undermine trust and engagement? michael: it will undermine trust but there is a lot facebook can do to reestablish that trust. it is less about privacy and more about control. facebook needs to be explicit in allowing people to have control. secondly, facebook needs to be what to its users information they have on them and how that information is being used. the last couple of days there has been news that facebook was using data from a conversations of the facebook messenger for advertising targeting. facebook needs to make it clear to users how to use data, and if users feel they have control, they are not going to delete facebook. with respect to the store

you mention of scraping call data, facebook responded saying this is something users opt into. many users still don't understand exactly what they are opting into. what do you make of the apology? given it is hard to believe that facebook actually didn't understand what was happening here. michael: the apology tour is taking ads and the new york times and the u.k. papers, and that is focused on advertisers. facebook has this amazing platform and they are not running that same campaign for their own users. with facebook really needs to do is it needs to make it clear and provide controls so that users know and really understand how they can limit the amount of data that they give facebook, and they give to facebook advertisers. if you are a facebook user it is hard to figure out what you are

sharing i what you are not sharing. facebook really needs to make that a lot easier. emily: what other platforms do think could benefit from this? will snapchat or twitter or part ofm -- even though facebook, maybe people don't understand it is part of facebook, will instagram see a bump? instagram is having a lot of growth, so it's not, but facebook's real competitor in this is google. has a lot of information on people, a lot of that is not specific to individuals. this is a moment where google is of course going to exploit their privacy and on the ability to informationrs less to be able to focus on advertisers and say consumers they have a better proposition. another company likely to benefit in the long run here is apple. apple has focused on privacy,

they don't collect user information. if they want to build their own advertising business that is going to be an important proposition that just for advertisers but of their customers. emily: michael wolf, always great to have you on the show. the ai that powers your phone and facial recognition is great at making emoji's but did you know it could be hiding an inherent bias? that is next. this is bloomberg. ♪

emily: you are looking at a

special piece of delivery from silicon valley, be sure to tune in for a few surprises in a cameo or two. intelligence is supposed to make our life easier from robots taking on monday past and technology that unlocks your phone scanning your face, but is that knowledge it really color blind and gender blind? a study by researchers shows a gender of darker skinned women incorrectly identified 30% of ai?time, how do we unbias spoke to a doctor at microsoft bias.ng timnit: we can try to mitigate bias and the sex of the bias. i think the first thing we need to do and what i am working on

now is to give people guidelines as to how and where it particular data set to be used and how the api can be used. emily: your recent research showed that facial recognition software is far less accurate for women specifically women of color and white men. it is potentially sexist and racist. can you explain? commerciallooked at gender classification and looked at a picture of a face and tell you whether the picture in it is that of a man or a woman, mail or female -- male or female binary identification. in this case we look at the accuracies and break them down by race and gender, i don't want to say race because race is not a very well-defined thing.

so we look at skin type and we look at the fitzpatrick skin tone which is a dermatologist approved way of looking at the skintight. as the skintight gets darker and darker for women, darker skinned women -- this gender confiscation -- classification approaches random chance. in answer to your earlier question, one way we can mitigate this is to try to gather more diverse trading sets and also test algorithms by different sets of populations. instead of having one single number that my algorithm has a particular accuracy of 90%, but when you break it down by subpopulations you might see that it works much better for some populations than others. emily: is this something that the apple face id has a problem with? timnit: i have not been a systematic study of the apple

id, but there is a highly publicized article of this chinese woman was at the face id do not work well with her. i am pretty sure this is a problem that happens across the just face even recognition but other algorithms as well. one example,d is but what are the consequences on the broader scale if we don't start rewriting these algorithms and get new data to fix it? people one thing i think don't understand is that ai components are being used everywhere by everyone. they are being used in many different places. a facemple, if you like recognition algorithms they are used to identify what people think are criminals, and being used for surveillance. whether or not face recognition should be used for cell layouts is one debate will should have anyway.

-- used for surveillance. we need to make people understand that face recognition on the are not accurate enough to be used for surveillance. emily: you said women are at a bigger risk of losing jobs because of this, how so? timnit: i am not sure if women are unilaterally at bigger risk of using -- losing jobs because of ai, but in what marginalized in our society is at a higher risk of losing jobs because of ai. this is because many of the lower paying jobs that are easily relatable are being done by people who are from lower income and being done by people who have been historically marginalized. easilyanybody who our society hs marginalized is more likely to lose jobs. emily: how much of this would be sought by getting more women and

people of color into ai and machine learning? how much of this we caps off because it has already been done? timnit: i think a lot of issues of bias can be mitigated by not only having more people who are from historically marginalized communities in iraq but also --eracting with these people communities in ai, but the people that you describe in gender showing how biased they are our black women. if you are not interfacing with people who are negatively affected by a bias in ai were less likely to think this problem is a big problem. emily: you think companies like microsoft and google are doing andgh to build diversity diverse teams and turn to make sure bias is not written over and over again? i don't think companies are doing enough to build diversity.

laterally across tech companies there is a lot more talking about diversity than there is about action. sure, there is some action going on but it is not a priority. when it comes down to it, the people at leadership positions you to make it a priority and he could spend as much time trying to fix this problem as they do thinking about trying to maximize profits or something like that. i do not think people in leadership positions are spending enough time. emily: timnit gebru of microsoft. coming up, stocks staged a comeback and is pressure on the markets behind them? this is bloomberg. ♪

story,back to our top the u.s. bouncing back in a big way in the markets and all surging over 2% in monday

trading after the u.s. may se ek deals with china to avert a trade war, indymac caroline hyde westmore from london. the big question is, is the worst behind us? caroline: certainly what a phenomenal story in the u.s. and it is interesting to see if we see asia and europe carry on gains. they closed today and the rent and with a follow-up where the u.s. has been after the worst week last week in more than two years? we have surged particularly in the s&p 500 and in text, if you look into the bloomberg you see how much tech attributed. why? because of the slightly -- lovely chart, the two key sectors that did very well to date is tech and financials. financials in the yellow have not been as important to the s&p

500 aztec has come and tech makes up the 5% of the s&p 500 market. therefore when you have the best day in i.t. stocks since august yet tune of $28 billion worth of market cap added to attack, that helps it pop. if you dig in to the other yetfunctions and you look at ts little chart if you follow along at the moment of our bloomberg terminal. map, and uptick in software and financials up 3.2%. likes oftype in the the i.t. sector, you get a breakdown of work the performance came from. microsoft was your biggest contributor to the s&p 500. intel also surging more than 6%.

laggard.ook still a emily: facebook is going to be the one to watch ending the day, study up but down over the last week. caroline hyde in london, thank you for the recap. and that does it for "bloomberg technology" and a reminder we livestream on twitter and check it out on technology on weekdays. that is all for now. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

♪ haidi: u.s. equities surged back with sense of is the tensions are beginning to ease. betty: the revival of risk appetite since the dollar to lowe's levels in five weeks, except the yen. search of the economy looking serene, challenges are looking to make the service. betty: in washington allies