president trump: i would let it be his choice. he is a man who has just been an extraordinary person. his family -- extraordinary success -- great dr., great everything, and he has to listen to the abuse? i wouldn't. >> jackson's hearing is delayed after allegations regarding inappropriate behavior on the job. senate minority leader chuck will oppose mike pompeo's nomination as secretary of state. he said today, peyote not answer questions from the top diplomat o did not answer questions from a top diplomat satisfactorily. president trump says terrorists on china -- tariffs on chinese goods will take effect if both sides failed to agree. george h.w. bush is responding and recovering,o did not answer questions from a top hospitalizd

sunday. global news 24 hours a day powered by more than 2700 journalists and analysts in 120 countries. this is bloomberg. "bloomberg technology" is next. ♪ i'm emily chang and this is "bloomberg technology." tech bears ru rampantn. a full report on tuesdays tech market selloff. plus the whistleblower who blew the lid off the cambridge analytica facebook scandal heads to capitol hill. what went on with lawmakers behind closed doors. uber releases new diversity statistics under its new ceo. the results, meager gains. first to our lead.

it was the worst day of stocks in weeks, and the first five-day slide for the dow in a year. tech stocks getting hit hard off the back of google print alphabet earnings. h. to bring it down is our -- a tech bubble has been burst. walk us through the day. >> that is a pretty big crawl. it will be interesting to see if that is proven with time. relatives of the day, it was an interesting day for the major averages. the dow, s&p 500, nasdaq starting higher. as the day progressed, each of the major averages traded lower. especially in the middle of the day, we start to see a steeper selloff led by the dow and caterpillar. caterpillar put a strong first quarter, but made an oblique comment on a conference call over the course of the year.

that sparked a bit of a selloff. this has very much to do with alphabet, the internet giant reported yesterday a strong quarter beating earnings and sales estimates. those rising traffic acquisition costs, food for the bears. that stock down on the day 4.5%. that weight on the rest of the tech sector. so many earnings reports coming out this week. one spot of relative strength, the chip sector. of 1%.st about 8/10th intel and texas instruments hanging in. of 1%. texas instruments after about, a-- after the bell, a better-than-expected quarter. micron down once again. one investor has been pretty bearish on this name over the

memory cycle. that same analyst initiated a sell rating on intel, so interesting how that will play out for micron. jitters around this earnings report. something to observe here, there seems to be some sort of but, some sort of nuance investors are hanging onto. that has caused many shares to slide. emily: obviously earnings season of to a jittery start. -- off to a jittery start. facebook, apple, microsoft in the days ahead. >> it will be interesting to see what happens in the next five days. i like to talk about apple. apple has been done quite sharply over the last five days. 8.6%. last year, taiwan semiconductor's guidance -- that stock down sharply around fears that the june quarter guide could be far more

disappointing. that was the spark for some of these jitters we have seen for other names. to have alphabet's acquisition cost that relative to the rest of the week, amazon, microsoft, and thursday.t will be on investors will watch those results closely in terms of, is there a but that investors don't like? facebook reports after the bell. beyond looking for color on the cambridge analytical privacy not we, and whether or revenues inhing on the future, that will be something investors are looking at. will it be a clean quarter? time will tell.

there seem to be nuances in these reports investors aren't quite liking. revenues in thewe have to wait until around this time tomorrow. emily: thank you for that update. facebook ceo mark zuckerberg has famously warned against the social media platform coming arbiters of truth. today his company took an unprecedented step by making public they are secret guidelines about what its 2 billion users can and cannot post. this includes definitions for hate speech, violence, and explains how users can appeal bans on individual posts. my next guest sat in on one of facebook's by weekly standard meetings, entitled "here is what facebook won't let you post." he is working on an upcoming book about facebook. he has written many books about the tech industry. question is, engagement

materially, engagement materially, and will this hurt facebook's business? >> in some quarters, some have said they are using facebook less. facebook insists they are not seeing widespread retreat from use of the product. i wouldn't be surprised questios cambridge analytical scandal and broader concerns about data privacy impact if the results they report tomorrow reflect that. , one is mark zuckerberg has said in the past facebook will be willing to make less money in order to make the sers' trust.p u it will be interesting to see if he translate that into actual numbers. how much less are you going to make? and second, to see if there is any impact made from advertisers. emily: sheryl sandberg told us a

few advertisers have taken a pause, but otherwise any other impact has been minimal. facebook has today publicized this 27 page standards guide, 8000 words. very lengthy. why now? trustapalcall the ooza. we have been under a blizzard of announcements, facebook saying we will be transparent here, we will change this policy, that policy. it very much has an engineering mentality. mark callista engineer his way -- mark hopes to engineer his way through this crisis. he does not just want to apologize, he wants to apologize along with telling us, hey, we are doing this, we are doing that. in his testimony to congress a couple weeks ago, he was able to do bullet points.

look what happened with cambridge analytica -- hey, we fixed that even before it was reported. here are the other things we have to. this in particular is really interesting. it sometimes gives a disturbing picture of the kinds of things people post on facebook. this in particular is really interesting. this is the playbook that it gives its moderators, 7500 people that use this playbook. this is something reported to us, an objectionable post, does it follow the rules? in rules are very explicit their detail about what a murder is as opposed to a mass murder or serial murderer, different forms of nudity. you can dive into the details onthis. emily: of these moderators, how many are full-time facebook employees, how fast do they make decisions? sometimes these rules are quite

confusing -- can they make these decisions as fast as they need to be made? partat is why the appeals might be important. in the past, something was taken down and you do not get a good answer why it was. now you can go to the playbook, violated it. or you could appeal within 24 hours. someone will look at it and give it consideration. emily: you went into one of these standard meetings. i know you can't give specifics, but what was your impression? what surprised you? what seemed to be working, and what did you question? >> i have sent in a lot of meetings. [laughter] at in a lot of meetings.

i have sat in meetings where they do changes to the newsfeed at facebook. at in a lot of meetings. there is a proposed change. a group goes off and does research into it. in this case, they don't do a there is a proposed experiment,t consult outside experts and sometimes interest groups. they do their own research. here is a possible change in the policy, and here are the options we have to pursue it. one maybe not to change it, one might be to change it this way or that way, then they make a decision. emily: is facebook treading close to that line, being the arbiter of truth? >> there is no way they can avoid it. even though it is an open platform and they want to encourage free speech, they want to make it a safe place. there will be this tension between moderating content and making it a safe place. emily: in hisone maybe not to ck zuckerberg, to me, took more

responsibility than he has for the content posted. i wonder if facebook and google were like oh no, this might implicate us as well. how do you think this will spill google?apple and we did not see a huge spill over from these privacy concerns. >> right now facebook is the bullseye for this concern. the other companies know they are in the same boat. youtube has come under a lot of criticism. >> content moderation policy, you go to a page that givestheiu moderate guidelines. years posted itself -- has for years posed itself as a haven of free speech.

ifamned if you do, damned you don't situation. emily: always great to have you. coming up, congressman hakeem jeffries met with the whistleblower who sparked the cambridge analytical facebook data scandal. that is next. this is bloomberg. ♪

emily: the man who helped reveal the political consulting firm with ties to president trump may have misused the personal data on tens of millions of users was on capitol hill today. christopher wylie met with house

democrats, and before with meeting with judiciary members from government reform panels, wylie told reporters he provided lawmakers with answers to whatever they asked. joining us now, one of the lawmakers that met with wylie, representative hakeem jeffries of the eighth district of new york. what can you tell us about what was said, and how disturbing it ?as rep. jeffries: christopher wylie painted a very credible but also a very frightening picture of how cambridge analytica misappropriated data on very intimate information from the american people without their knowledge, then manipulated that data in a way that was designed to help shape artificially the results of presidential election. -- of a presidential election.

emily: knowing what you know now , is there anything you wish congress had asked mark zuckerberg during those hearings? many people felt lawmakers simply weren't prepared to ask the right questions. rep. jeffries: i think certainly, at least on themany e side, the members of the energy and commerce committee were able to go farther than my colleagues on the senate. they had the benefit of a second day. i think we still need to unpack the precise nature of when facebook became aware there had been a misappropriation of their data, and why they didn't go further than asking for certification from cambridge analytica that proved obviously to be false. certainly as the ceo of facebook has acknowledged, there is more the company could have done at that moment in time to prevent

the data from being manipulated in the way that it was leading up to the presidential election. have to make sure as members can put up can put up the appropriate guardrails for all of these social media companies with access to the american people in ways that won't allow for future exploitation. emily: would you like to see more legislation, and if so, what kind? rep. jeffries: first we have to make sure when an ad has been purchased or manufactured by someone for a clearly political purpose, those ads, if they were on radio or television, have to be disclosed in a certain fashion in terms of source of content. we have to make sure moving forwardwhen ads are put

in front of the american people, if it derives from a political action committee endeavoring to manipulate the outcome of an election, the american people should at least have that information available to them in the social media context, just like it would be available to them on tv, on radio. that is an important first step. emily: what would stick and step -- would the second step be? rep. jeffries: we've got to make sure there are rules that limit and/or prohibit the ability for foreign actors to utilize the social media platforms to manipulate the american electorate in ways that were undertaken by the russians in the context of the 2016 presidential campaign. i think in hindsight there were many red flags that individuals should have noticed as it

relates to the efforts by russian spies and/or their affiliated entities, that were trying to manipulate our unnoticed.hat went after the fact all of this has been unveiled for the american people, we need to make sure there are sufficient corporals -- sufficient protocols put into place, so when you have hostile entities trying to interfere with our election, that can be stopped before they are able to make progress. emily: congressman hakeem jeffries. thank you so much for weighing in. appreciate you stopping by. the other man at the center of the converge analytica scandal appear before lawmakers in the u.k.. universityge researcher creating data on as many as potentially 70 million people. joining us now from london to

talk about the latest's bloomberg's caroline hyde. it bears reminding our viewers cambridge analytica continues to insist it did nothing wrong. what do you make of this side of the questioning today? fromine: fascinating kogan.dr potentially data kogan. potentially data was manipulated, and therefore we saw it affect the outcome of the 2016 presidential election. aleksandr kogan, the academic the heart of this, flatly denies, that this didn't help win the election for donald trump. he said notably the data was used to help the trump campaign. it cruz's campaign have used and was dissatisfied with it. it is not efficient micro-targeting. why? you would not use the data he ran to run political ends on

facebook. he said, to be efficient, you use facebook's own tools, you don't build your own. that was really notable. what was notable was the fact ok,t she was saying, lo facebook should have known i was pacing on data to -- passing on data to third parties. the terms and conditions of the app that it will go on to third parties. he said many companies do that . loose claims in their terms of conditions, and therefore data can be passed on to third parties. he is saying, it is not just me, i am being unfairly targeted. tens of thousands of developers could have done this. you do not need special

permission. he did in an email, and not feel there was any misuse. he thinks in hindsight people do not realize what he was up to. emily: hindsight is always 2020. caroline hyde from london. we will get back to you in a moment. coming up, amazon delivers to your home, but what about putting a package in the trunk of your car? amazon's latest prime packaging option is next. this is bloomberg. ♪

emily: amazon wants to get into your car. the online retailer will unlock and deliver packages to your car bmc orown a chevy, cadillac. the vehicle must have an active service plan. the service is available today to all private members. if the u.s. postal service raises rates, amazon's profit could be cut by $1.3 billion. that is a little more than 1% of

its annual earnings. president trump claims the post office loses money on his contract with amazon. uber is out with its second annual diversity report, but was there enough progress to keep up with other silicon valley giants? we will discuss next. this is bloomberg. ♪ with other silicon valley

>> you are watching bloomberg technology and here's a check of first world news. at a joint news conference today french president men while macron sent ongoing talks with

president trump will focus on a broader containment strategy for iran's strategies in the middle east. >> we have nuclear on the short run and long-run. we want to fix the situation. part of it. >> the canadian house of cop mmerce observed a moment of victimsthatfor the 10 from last night's attack. investment prime minister benjamin netanyahu called off a deal for migrants in western nations. and a statue of women's rights campaigner massed bands outside of the british parliament. shields your head the movement

that helped give women the right to vote back in 1918 and she is the first woman to be commemorated theire. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this isa parenti, bloomberg. is 730 was the morning in sydney where are joined by paul allen with a look at the markets. recite a big selloff for wall street and i'm wondering if you see followthrough are you guys. >> perhaps not because the markets are closed, so we dodge that here, but it finally happened. the tenure through 3% briefly and we saw that heavy selling. the dow off one and three-quarter percent. and the s&p also weaker and the nasdaq down as well. calling those

results, and we saw a lot of consumer discretionary. as part of the world we saw the asx nikkei futures weaker at ff 1%. --y aussie dollar holding on and the aussie dollar holding on. it's the get commodities. we have aluminum lower again after the kremlin minister suggested the state might take control of russo for a wild. while.al for a i'm paul allen in sydney. more from "bloomberg technology" next. ♪ ♪ back to our top story. a bad earnings story for the tech industry got worse with google joining with an sending stocks tumbling.

that is not worth and scum of the other tech stocks including netflix,ebook, amazon, and google, wiped out. how does it compare to the rest of the market? we see it perform in theand when you type s&p 500 and they to what sectors are performing the worst, you'll see tech was down the worst by two percentage points. and he set industrials and materials -- and that we don't earlier talking about the likes of caterpillar. this is a notable headwind in technology. fangillion knocked off of stocks. it eroded in one day. emily: how much is this is pegged to earnings and how much

concerns? i think this is a perfect storm because everyone was hoping earnings what they come out of this concern about regulatory headwinds and data privacy. is why perhaps you see a selloff hit so hard at the moment. half of many numbers when you look at its earnings yesterday -- alphabet because many of the earnings. the out about share price bought down the rest of the thanks -- alphabet brought down the fang stocks, and it shows how much we saw a tug on the fang complex numbers. nominee will are nervous and

this is another reason why we are getting so much caution. nice chart. and the white line it a 30 day moving average of your implied volatility on an etf. volatility is heightened to elevated levels and the highest in two years. no wonder you get slightly higher cost than anticipated, and down goes the stock. on average most stocks in the tech sector selling off at 2% on average after the numbers come out. this is not going well. interestingly, you have amazon coming out tomorrow, and this is political and happening in germany. berlin,o be based in in germany is a second-biggest market. and today see pictures of these protest that happened.

jeff bezos is in town and he was receiving a price, coming from a key media company. the amount of protesters, 350 people standing there and blowing whistles and banging drums. among them, a key politician, and he is in line to become the next chancellor in germany. thank youoline hyde, for bringing that tidbit from berlin. uber has increased woman in working in tech roles by 2.5%, but the company still likes behind its peers -- lags behind its peers. looking to tech industry in its second and a report come over said 80% of employees in the tech organization globally are women, and joining us now is

eric newcomer who covers uber. travis kalanick resisted putting out these numbers until he was almost forced to and aftermath. and we saw the report last year and they moved the needle slightly a year later. what are the highlights? lot, but the not a new ceo has been there for seven months and will take time to really turn things around. a lot of the, progress was made outside of the u.s. and canada. the u.s. and canada backslid and became more mail while other regions begin significantly more female. emily: what about underrepresented minorities? eric: african-americans are 8% of employees in the u.s., where they track it. clearly there is more work to be done and the growthless similarly small in terms of permit.

are you hearing about the cultural transformation? people are more optimistic generally and think the company is taking steps. we haven't seen a close look at their diversity at work since since theh over -- new ceo took over. the company says they are working, but we will have to see how it pans out. emily: what do we know about market shares because when we spoke to john zimmer, the itsident of lyft, he said is a signature in certain markets. i wonder if the needle is turning back a little bit. think it will be shouting from the rooftops if there is a shift backwards.

been talking about 40 or 50% in some markets. uber is a global player whereas lyft focuses in the u.s. and toronto. lyft is gaining ground and holding on to add. emily: on the other side of the pond, talks of an ipo that could happen this year. the wall street journal says it could be valued up to $80 billion, which is more than uber. the company also considering other ways of raising capital, including selling convertible bonds. what do we know? eric: a lot of these valuations as we learned are on paper until something real happens. as been a situation where companies, especially softbank everest a lot of money on the private market. if theye to see uber

want to go public forced the end of next year. we reported that they are a new chief financial officer, which will be a key piece to going public. all of these companies have gotten so big. they are talking about ipo's, so it is credible. but what the actual value is and whether it goes this year, will see. and uber is targeting an ipo somewhere in 2019 range. dd gets toter if market first? eric: think it will be relevant. -- i think it will be irrelevant. uber owns a significant stake in didi, and they are largely competing in different markets.

if anything, the question is who is going to be the better marketer terms of who should go first. one doing well is probably good for the other. emily: eric newcomer, thank you so much. coming up, we see car sharing at bike sharing, now scooters in silicon valley and beyond. that is next. this is bloomberg. ♪

emily: spy for interest a free version of the mobile app that targets 1.5 billion youtube users and offering rolls out ahead of the tubes new subscription music product. spotlight is already done largest music service in the world but it is expanding to

reach a targeted one billion users. on monday, san francisco sent cease and desist letters to motor right scooter companies. the business practices of all three companies create a public nuisance and are unlawful. illicit committee with a list of changes the city wants to make and written partner supports by the end of the month. joining us now is ofo president. to provide urban travel via bicycle. yet been doing bikes for a long time, and the question is are you going to get into scooters? >> we are in scooters and other countries and where in 300 cities in 21 countries and we have a scooter audit in a number of asian countries. i think the scooters are interesting from a product perspective. mobility is becoming a thing, and it is multi-mobile.

any way can quick and easily get around the city. you bringn will scooters to the u.s.? chris: at some point in 2018. there's benefits in terms of congestion and pollution, but want to make sure there is not negative effects with not working hand-in-hand with the cities to enter. emily: what you make of the cease-and-desist letter in san francisco? a lot of people in the city are angry about this. people in the streets are annoyed. chris: when you look at products like ours, there are two consumers. the consumer that is riding the product and the consumer who sees the product everyday. it be thoughtful and respectful to both of them. being smarter about how you put the bikes or scooters out there, making sure they are orderly and there is no ada issues with respect to putting them in walkways. so, what we have learned over

the 300 cities rapine and is how to do that. there's a little bit of growing pains that they need to work hand-in-hand incident benefits. not just for the benefits of the person writing it, but to other people. emily: i was in san diego and the scooters were in a pile, different colors everywhere, and there's no rhyme or reason. you can see them wherever you want to get off. it seems problematic. to aspects,is consumer education to make sure people are aware and understand where they can put the scooters are bikes. and is an operational component. is the company thoughtful about operating business and are they making sure that there isn't an eyesore with respect to the product. emily: the other thing i noticed is you see groups of people wriding. is is a commodity and what are you competing on? not much brand

loyalty coming to see people writing scooters and others riding scooters and bikes. consumers will decide overtime. emily: but will also bring to the table -- what will ofo bring? chris: you bring a platform that has bikes and e bikes and e scooters. depending on what your choices. i personally like a traditional bike, but i need to write in a bike if i want to go uphill. does the uber acquisition of jumped change things and i wonder if there's a race to partner with other transportation companies? chris: the biggest thing for us is validation. dish network of the biggest players in transportation is adjusted in this space and then you would asked that this is not just a whim -- this is something

that they view at some level as a threat to their market share, so they want to acquire one of the businesses is to make sure that they have a foot in the door. emily: will there be consolidation the same way we saw with ridesharing early on? remember sidecar? and uber is very far into the lead. you think the same will happen here with bikes or scooters? chris: i think the landscape will narrow. there were other players in right should descent, but it is -- it is uber and lyft. there will be few players in this market by the time it is done. emily: you worked at uber. how do profit margins compared? the margins are so tiny, and i wonder how whites and scooter sharing compared to write sharing are already not making a lot of money?

chris: the bikes cost less. while uber does on assets it costs money to acquire drivers through performance marketing. our bikes cost estimate cost to acquire a driver. you don't have to pay incentives to keep them on the platform. we joked that not only do i get a bike for the cost of the bike onto the platform, but i do not have to worry about 30 days that it changes colors or platforms. we send up with a driver, a month later they sent up as a different driver as i commend you spend money for uber to acquire that user. would have to worry about the bikes committee will not change colors. emily: will you be a $70 billion company? chris: i think we can. million, and we think this market is much larger. that this are short and the cost is less expensive to the user, i

think will be ultimately larger and service a larger percentage of the population. emily: chris taylor on the global scooter invasion. thank you very much. coming up, facebook and google report on wednesday, and can they keep investors happy? that is next. this is bloomberg. ♪

emily: was a marks a big day for social media companies to report earnings. respect and twitter when certain investors -- facebook and twitter will report to investors but to the has not been kind to both companies. facebook is that the part 7% and pleasures losing 2.4%. to discuss with expert from these two companies and others come out to begin our bloomberg tech executive editor, tom

giles. to know if this is a broader market shift and how much decisive the with the cambridge analytica data scandal and butter privacy concerns. -- brought their privacy concerns. tom: there's a lot of bearishness in the tech sector whether it is chips or smartphone slowdowns. we got some good news from texas instruments, which he talked about. qamar is in a different social media. facebook is really in focus for tomorrow. the question is the cambridge analytica having impact. so far mark zuckerberg has said we haven't seen a material impact. remember that you guys talked to sheryl sandberg last week and she said that some advertisers are hitting deposit button on spending. was it enough for there to be an impact on sales? everything that cheryl and mark and in one on the call tomorrow

says is one be scrutinized if there is any meaningful pullback. there's a couple of other things that happen at the beginning of the year and the make changes to the newsfeed. deborah to make the results more relevant, and that meant fewer advertisements. that is another thing people are going to look at. how much of an impact are those changes good having. member for the first time ever we have a decline in north american users and that continue into the first quarter? is it a function of can which allen -- cambridge analytica? all of these things are in focus tomorrow? emily: will that hang on twitter? or did twitter benefit from it? we hear their video strategy is paying off and all the investment fit that into that is done to make a difference. on the sales side i can make a

difference for twitter. are people coming to twitter or is it benefiting in any way? i do think you are going to see a sense of whether people look reliable newsa source in the age of the russian box and misinformation in 2016. amazon on thursday, what are we watching? tom: if there is any language on postal rates and if the post office raises rates. are the trump trades making a difference and are we going to have a regulatory scrutiny crackdown on amazon? not a reason to believe anything is a or anything will have them until impact on their bottom line. the sense we get as far as analysts are concerned is that they are going to be more investment into the future. emily: tom giles, pigot for

stopping by. that does it for bloomberg technology and a reminder we livestream on twitter. check us out on weekdays at 5:00 p.m. in your time. this is bloomberg. ♪ welcome to the xfinity store.

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♪ >> stocks tumble and 10 year treasury gets 3% for the first time in four years. betty: at a dousing its biggest decline and caterpillar dropping with the first order described as a high water mark. parents with a billion dollar route affect stocks. betty: and aluminum sees the biggest loss in three decades as washington eases up on