investors are wondering why mark zuckerberg or cheryl sandberg have not said anything. are working around the clock to get all the facts and take the appropriate action moving forward. the entire company is outraged that we we re the entire company is outraged that we were deceived. again, people are very worried. whether facebook is going to do something about that. and cambridge analytica has worked in asia as well. cambridge analytica, in that secret video recording, we saw some of the bosses talking about shell companies to disguise some of that activity. they have been involved allegedly in mexico, brazil and other countries and in asia, malaysia and india but i want to talk about malaysia because it's a very sensitive time politically for the country. they are set to hold another of elections this year and so the malaysians government came out with a statement saying they had never hired cambridge analytica to help them in the last round of elections in 2013. the fallout continues. in other business news, at japanese the fallout continues. in other business news,

facebook's coo cheryl sandberg breaking her silence for the first time since the facebook scandal. >> reporter: cheryl sand better weighing in on that data privacy scandal that has drawn concern from users, regulators and investors and advertisers as well sandberg saying that the business model of facebook does not fundamentally put user data at risk. >> we provide a free service that's an ad based business model. in order to do that, we do not sell your data we are able to show targeted advertising that's relevant to people we are able to give advertisers aggregate anonymous reports, never telling them who you are we believe we can operate our service with our current business model, continue the provide a free service all around the world, and protect people's data. but we are going to have to earn that trust >> i asked sandberg if there are other shoes left to trop and she did not promise that this will never happen again. >> we have a big platform. we have billions of people who use the service. and that means there are always going to be people trying to do bad. and it means we a

. >>> and when we return, kara swisher joins us after her sitdown with facebook's cheryl sandberg andhe fallout for facebook stay with us with the dow up 153 'lbepots wel right back. but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ >>> coming up on "the halftime report," is wall street overreacting to the trump trade turmoil? we'll answer that question with jim cramer and the new name cramer recently bought and where stocks could go in the weeks ahead and the money manager behind boon pi boonz pickens esf joins us >> all right thank you so much, scott looking forward to it. let's show you what is going on with the markets we had a big turn around here. we hit solidly in positive territory. the dow was down 150 points. it is now up 180 add this to yet another day where we have larger than 300 point swings and mike san thoolsantoli -- >> we're right back where we were wednesday there was a selloff thursday and partial come back on friday. so you essentially got back t

i raised the issue inob oct of 2016 with mark zuckerberg and cheryl sandberg and i said, "guys, i thinkre's a systemic problem here." i wasn't surprised that the, didnu know, jump right on it. but i was disappointed because they treated it like a public relations problem, rash a business problem. nd so i spent three months trying to persuaem before i realized that they were just determined to say-- toide behind the legal notion that they were a platform, not a media company, and, therefore, not responsible for what thi parties did. >> sreenivasan: but you're saying something fundamentally is wrong with the business ofis s the output. >> indeed. all of this is traced to the business model. the incentives created by an advertising business model are to essentially addict people psychologically to your producth an to cause outrage cycles. you want to feed them stuff that either makes them afaid or angry, because when they're excited by low-level emotions like that, they share more stuff. they're more active. theypend more time o the site. and see more ads. they're just more valuable to the

juliati boorsn talked to facebook executive cheryl sandberg today aut the controversy and about what she plans to do next. >> reporter: with facebook shes down 10% this week, chief operating offler che sandberg weighing in on the data privacy scandal that raised concerns of users, investors, regulators, and advertisers. >> this was a huge breach of trust. people come to facebook edary and they depend upon us to protect their data. and i'm so sorry that we let so many people down. we spent the last few days trying to get to th bottom of what happened. cambridge analytic never shos t. d t td u tulhe deleted itad.ve h but it is our mistake that we did not verify that. years ago we changed platforms so apps get much less data. but that really wasn't enough. >>. >> reporter: with advertiser nestle today raising questions about consumer privacy. sandberg stressed their business model does not put consumer dat at risk. >> we provide a free service. that's an ad businessed business model. in to do that we do not sell your data. we a able to show targeted tvertising that's relevo people. we ar

because you wrote an op-ed that you didn't publish, but you took it to mark zuckerberg and cheryl sandbergomplaining about kind of a bad business model and the algorithms that let, in your words, bad actors influence users. >> i wrote that op-ed and gave it to them roughly nine days before the u.s. presidential election. there were a lot of signs of issues then. as their friend and mentor, i went to them privately and spent three months trying to persuade them that i thought there was a systemic issue in the product. their response was to treat it like a public relations problem, not a business problem. and they kept saying roger, we're a platform, not a media company. we're not responsible for what third parties do. and i kept saying to them, i'm sorry, guys, you have 1.7 billion members, that's the number they had then. if they decide you're responsible, it won't matter what the law says. >> so that was three months ago -- >> no, that was in 2016, before the election. >> 2016. >> i've been at it ever since. >> have you even been at it since this latest cascade of bad news over the weeken

the thing is that mark zuckerberg and cheryl sandberg need to come out and say something about this issueoes when they first talk about russians spreading they can use and disinformation. mark zuckerberg said that it was crazy that it affected the election result. he recanted that. facebook staff are certainly clear in their messaging, they want to hear from him. what can facebook users do in order to protect themselves?” him. what can facebook users do in order to protect themselves? i think there are two issues. facebook users are themselves, they need to make sure they are fully fact that when they go on line, they leave these vast digital footprints. they go on line, they leave these vast digitalfootprints. i'm they go on line, they leave these vast digital footprints. i'm afraid that sounds rather boring but you do need to look at your terms and conditions, look at the prissy settings you have, make sure you fully understand the absolute depth and breadth and the extent and consumers need to wise up. the second thing is, they need to be pragmatic and realistic about the fa ct pragmat

work, i'm going to take care of my kids more, you know, and we have to push back against the cheryl sandberg message, which is don't do that, she wrote a best seller called lean in. as somebody who leaned out to raise three sons over a period of about 25 years, i'm so glad i did. i have no regrets. and other women in my position feel the same way. >> next question for you ladies. when you think of the feminist movement today, what really makes your blood boil? i'll start with kelsey. >> all right. so there is a lot that makes my blood boil. there is a lot to this question. and i think some of the easier and more obvious answers are how hypocritical they often are. their support for abortion, which is actually killing women in the womb. but i'll tell you personally what really gets to me is groups like the women's march which again i do believe is what is defining feminism today is their exclusion of women internationally. so this includes the me too movement. so their version of feminism is often very selfish. it's often about me. don't get me wrong. me too is very important. i'm important.

specifically cheryl sandberg responds to criticism over the social media's handling of the cambridgelytica scandal. ande center of facebook c-o-o sheryl sandberg )s fi >>> facebook is calling this week's skanl a huge breach of trust. and that was at the center of the first interview after cambridge analytica accessed the information of 50 million facebook users. >> and she said facebook needs to win back trust. >> this was a huge breach of trust. >> ti am so sorry that we let s many people down. >> it comes one day after a similar mea culpa from her boss, mark zuckerberg, following the bombshell that data from teks of millions of facebook users was accessed without their permission. >> if i could live this the last week again, i would have had us out there earlier. >> facebook said they discovered information had been improperly shared with cambridge analytica in 2015. facebook insists it told the company at the time to delete the data but says it did not follow up to make sure it had been done and admits they never disclosed what happened to the users. >> we definitely didn't real t

at this point nothing specific from either ceo mark zuckerberg or coo cheryl sandberg. nbc, bay area news. >> let's talk about cambridge analytica. this new video of the ceo alexander nicks in an interview with an undercover reporter. he said he met the president, president trump he referred to and that analytica was responsible for many of the trump campaign's activities. the company suspended nicks before that report could air on the tv in the u.k. more than 30 organizations including social media companies, political campaigns and even some political parties. >> you need to make sure that the public has more control and understands how their data may be used for political messaging and microtargeting. >> so the investigative team says facebook has guantanamoed and has provided a great deal of information so far. now, cambridge analytica says it'll be conductsing its own independent investigation coming forward. >>> four freeway shootings in four days. police are calling most of them cases of road rage. tonight the suspect in one of these bay area shootings is behind

cheryl sandberg continues the company's apology tour and addressed why she and ceo mark zuckerberg waitedicly about the crisis. >> this was a huge breach of trust. cambridge analytica never should have had this data. they told us they deleted it, but it is our mistake that we did not verify that. sometimes, and i would say certainly this past week, we speak too slowly. if i could live this past week again, i would definitely have had mark and myself out speaking earlier. but we were trying to get to the bottom of this and make sure we could take strong action. >> all right. let's return to president trump's controversial trade tariff, which excluded most allies, but set its $60 sights on chinese imports, china, which accused the u.s. of set ago vial precedent released tariffs which rattled markets worldwide. karen cho joins us from cnbc. what more can you tell us? u.s. tech companies are worried about this. there are a lot of industries extremely worried about what the president is rolling out. >> lewis, the potential for a trade war has been on the radar for a while for investors, but co

came to understand what going on, i felt it was important to reach out to mark zuckerberg and cheryl sandberg of it. it's hard to recognize your baby has a huge problem. but i am afraid it has.ze candidly, i am glad thesee revelations are coming out because they need to change their strategies. >> tucker: so android users found out they are spied on upon. will we learn that about apple? >> no, apple has a different structure. the sad thing is, we are going to discover if you're an android user, it's not just facebook spying on you. and apple's model, because pay directly to apple when they buy the phone, they treat those people as the customer. with android, it's the phone company that's the customer. in facebook, where the advertiser is the customer and the user is the product, these are of the phone to android is also a product. that's the problem with the model. they aren't treating us like humans. they are treating us like the fuel to generate profits. candidly, i think that has to stop. all of silicon valley needs to reassess whites in business and recognize they can be incredibly profit

now, also, cheryl sandberg we have to bring up in this information.'s a high profile name that was brought on board to be the sort of adult in the room. >> harris: where is she? >> she's since put out a statement. but again, they really blew it right out of the gate. sort of they compounded the problem by waiting so long and then by coming out with such a really lukewarm response to this whole thing. >> harris: but you have to be careful here. couple things are happening. you get called up on capitol hill and you lean in too hard on the idea of regulation and everybody who's been out there saying whether or not your data is or is not private then has a problem. all of these digital media companies to some degree, you're exposed. >> that's your business model. i did take offense with mark warner saying the term weaponizing this. it was not weaponizing it when barack obama used it. it was smart strategy. unfortunately for facebook, he'll be caught in that. when he goes to d.c., which i think they will have to go to d.c. you'll have both sides pulling an

melissa: jack, analysts are saying they have lost confidence in cheryl sandberg and mark zuckerberg and what happened at facebook, that was a new drag on market. >> facebook is the new tobacco stock, everybody hates it. they make too money to ignore it. i have thoughts in today's "barron's." i get 10 cents every time i mention the magazine. if you thank northrop grumman and you can thank bombs away bolton. investors are rattled by the tariff talk, sabre-rattling, we need a little less chaos going forward. melissa: steve? >> the fact chief of staff kelly, kelly didn't know about the bolton appointment it was announced, reinforces what direction this administration is going in. even though his focus on chinese trade abuses which are very real, it is very good, there is worry about have they thought the thing through, how best to do it, cooperate with allies. europeans would sign up confronting some of those abuses. so it is not so much the overall direction but how it is being done that has people concerned. >> i think market would have been happier with michael bolton quite frankly for t

it's, that that cheryl sandberg went further. said we know has the major violation of people's trust and i deeply regret that we didn't do enough to deal with it. wave responsibility to protect your data. if we can't, we don't deserve to serve you. they're talking about the relationship between users and this giant company that sucks up people's information. they're going to do a few things to tighten up. a lot of people out there are very concerned about their online privacy. ze zuckerberg is sitting down tonight. what do you think they need to do? >> facebook does take this seriously. even though it is in the data business. bits knowing you so well that it can target ads directly to you. even though that's the business, it knows it has a responsibility to be careful. facebook at this point has a gdp bigger than some countries. it is a global player. it affects wars and campaigns and elections. and sometimes it feels like the company still thinks it is a dorm room business at harvard. so it is a challenge going forward. and i'm

i think this is a moment for people like cheryl sandberg and others to really show leadership and helpally so we can have nuanced regulation and actually get something passed in congress. >> our partners, channel 4 in the uk, are reporting that cambridge analytica still has data from all of these colorado residents that was previously amassed, that they have still not deleted the data that they said that they had deleted. >> right. it's very concerning. here's why -- let's say we had a law that said you have the right to ask for your data. well, then places like electronic frontier foundation would have made a data request back in 2015 both of facebook and of cambridge analytica. if they didn't get the information about their data, the ftc could have subpoenaed them and we could have known about this before that data was abused. obviously in britain it was abused for the brexit campaign. and here people's data was used to manipulate a political process where they may have ended up unwittingly supporting a candidate's efforts that didn't align with their values. so it is a very serious

but both zuckerberg and cheryl sandberg, the coo of facebook, have yet to make a public statement.dy has been waiting for him to say something. facebook was hauled before a parliamentary committee in the u.k. in february to talk about possible russian meddling in the whole brexit thing with facebook's influence. and they didn't even send a senior executive. now the parliament investigation committee is basically saying we want zuck to show up and tell us what is going on. attorney generals all over the united states, many senators, including adam schiff, have been asking to get zuck before congress to discuss privacy policies. the ftc is looking into this. this is a big thing for facebook right now. >> some people say that facebook was complicit in helping, you know, the republicans perhaps steal the election. other people say they were just negligent and not safeguarding how their information is used. do you get a feeling what most people think about this? >> well, you know, this all -- this all kind of stemmed -- this specific thing with cambridge analytica stemmed from a survey

>> are you answering the question where is cheryl sandberg? >> i would like to know, too. we haven't heard a thing during this whole mess. >> that's it for this hour of velshi and ruhle. >>> right now on "andrea mitchell reports," not again. days before a student-led march for gun safety, a student allegedly opens fire inside a southern maryland high school sending two fellow teens to the hospital. the local sheriff voicing every parent's fear. >> this is the realization of your worst nightmare is that in a school that our children could be attacked. >>> texas on edge. a fifth package exploding early today at a fedex outside san antonio after a string of bombings around austin has already killed two people and injured four others in the past three weeks. >> this is a very fluid investigation and we want the general public to know that their safety is our number one priority. >>> and the social network, facebook, under fire today as senate judiciary leaders demand that mark zuckerberg explain what his company knew about the hijacking of the data from 50 million users. >> we

>> are you answering the question where is cheryl sandberg? >> i would like to know, too. we haven't heard a thing during this whole mess. >> that's it for this hour of velshi and ruhle. >>> right now on "andrea mitchell reports," not again. days before a student-led march for gun safety, a student allegedly opens fire inside a southern maryland high school sending two fellow teens to the hospital. the local sheriff voicing every parent's fear. >> this is the realization of your worst nightmare is that in a school that our children could be attacked. >>> texas on edge. a fifth package exploding early today at a fedex outside san antonio after a string of bombings around austin has already killed two people and injured four others in the past three weeks. >> this is a very fluid investigation and we want the general public to know that their safety is our number one priority. >>> and the

. >> roger, what accounts for someone like cheryl sandberg's unwillingness to engage with the press or the issues more than she has in the past. she did give a couple of interviews last week but before that, i couldn't think of an interview she gave not tied to earnings or one of the books she's written. you are sitting there in the bay, what accounts for that kind of the cultural change where you have ceo of the biggest companies in the world, coo in her case and not willing to engage with the public in the way that companies in the past might have. >> i just think it is incredibly disappointing. i've known her for a long time and i admire her and this is a situation where having gained all of the benefits of success, she has a duty to step forward and handle the responsibility of a setback. and i cannot explain it. and i think tim cook yesterday when he was on msnbc made a really profound point. which is the choice to harvest consumer data and then use it commercially, that is not a choice that every company makes. and facebook, i think, was particularly aggressive. i think android,

when cheryl sandberg went on cnbc, it was like why didn't she come on this show?he was talking to somebody who was as well studied and and well studied in technology as she. the person she interviewed with on cnbc was a fine reporter but this is not her field. this is not what she does every day. i look at this as from cheryl's point of view, she wants to get out there and have people understand that she sincerely wants to solve the problem and those not what she's doing. >> maria: we did reach out to facebook and i sent an e-mail and they didn't get back to us. they didn't want to talk in that context. >> it's their loss. >> maria: thank you. let me ask you this. facebook has been roped into the special council investigation, robert mueller's probe. investigators are looking into the connection between president trump's 2016 campaign and the cambridge analytica story. roger, you explained it and the difference. zuckerberg should hand over the data not just from facebook but also from instagram, right? he's got a lot of data that is going to be analyzed by the spe

and we don't know if zuckerberg or cheryl sandberg if and when they'll testify.we expect from them? we'll tell you. >> sandra: and many disagreeing with the mccabe firing. how rand paul is respond. >> bill: and if you're just joining us, the austin bomber suspect in texas is dead. what led to the final explosion that ended his life overnight. >> was his goal to terrorize or did he have some other type of agenda? obviously, there was terror. what we need to find out and i think we will find out is did he have a different agenda other than terror. and that we don't know yet. >> sandra: a fox news alert, officials expect to meet with officials today and they're not the only committee demanding interviews after reports the firm allowed them to grab your personal data and make ads to target you during the election. here's senator john cornin weighing in. >> we've seen the power of social media and the data mining used by the large social media platforms how it can be used and abused. i think it's important we come in and sort that out. >> sandra: an editor for the was

obviously we don't want the government over regulating the tech sector but mark zuckerberg and cheryl sandberg on an apology tour right now. it's not right to sell our data without our permission and that's what we're going after that they violated our trust and therefore the got has to step in but i'm by no means for over regulating the tech sector. its been phenomenal but in this case they violated our trust and that's not right. david: adam let's stick on business the business of what's going on in silicon valley. how much and of course the stock implications of it, how much did the stock downturn and not just to facebook but of the entire tech sector have to do with fears about the government getting in and regulating? >> well that's part of it. i don't think the government there's any concern that the government wants to be the arbit or of this data. that's what i meant when i said you were presenting a false choice. david: but just in terms of the money that we're talking about here and what happened to the stock in facebook and in other tech companies how much of that downturn is becaus

. >> since then mark zuckerberg on the great american road trip and cheryl sandberg is promoting theovement and know from an article they were obsessing with polling their own reputations. at one point, by the way, you can have side jobs and do that and multitask and what point does management bear responsibility here? who was manning the ship? >> so, this all comes to a light in december 2015 and then facebook gets a bunch of promises that the data is deleted and as far as i can tell after the promises from cambridge analytica and the researchers there they completely forgot about the story, off the radar. >> they have company-wide meeting today. what needs to happen? >> i think people say why have we not heard anything from zuckerberg or sandberg and very deftly avoided criticism in the last three months of chaotic nightmares of facebook athey had great pr and questions of lawmakers both in the u.s. and the uk directed specifically towards them and mark zuckerberg. >> rapid fire every hour. >> yeah. nick, thank you. >> thank you. >>> well, ahead, we return to puerto rico, exactly s

we heard no comment yet from either zuckerberg or coo cheryl san sandberg i do expect them to get more details on how everything transpired and what action they'll take next. we look forward to hearing what they have to say jon? >> absolutely. a lot of people have to hear what they want to sachlt now let's get to job lipton. >> a lot of traders and investors may not know his name but they're a lot more familiar with it. alex stamos is now front and senter in this latest controversy. he plans to step down from his post in august according to reports. in a tweet stamos said he was still employed but his role had changed to exploring emerging security risk and working on election security. facebook did not immediately respond to requests for comment. staple yo stamos tweeted several times over the weekend detailing kaim's ukai cambridge analytica's data they said they should be alleged publicly down at facebook hq, stamos is clashing with other facebook executives about how much the company should have been disclosing about the efforts of russian backed propaganda. stamos wanted more disc

is this franken stein monster he's built he has no idea how it's being used a few months ago cheryl sandberg was shocked people would use our anti-targeting tools to target anti-semitic users. did you, de-- duh, i can target women in california who use bourbon, i don't think this is a satisfactory response. i mean the one thing i do think was good he said he would come from the congress. i think in the next two weeks, we'll see him with his hand raised in front of congress leak those tobacco executives used to have to do and answer some tough questions, because, ultimately, if they don't get to the place where they have to take some responsibility for what's on their platform, and that means changing the say farber laws, nothing is going to change >> jonathan, understandably, mark zuckerberg, the company has tried to maybe contain this issue as a usage of data issue as to what app developers might have access to obviously, in the public mind, these issues are kind of tumbling into each other, whether it's what facebook's you know, news algorithm does in sebing up certain times of information

i think cheryl came out the other day, cheryl sandberg with the fact that she accepted the fact thatn. >> what does it look leak in. >> i don't know. i'm not the one that will do it. >> did you take that sincerely >> oh, absolutely. >> to me it was them saying, yes, we need it as a way of sir couple venting some of the onerous legislation. what do you think needs to be done >> i think we have to find a way. what you are allowed to sell to other people what you are allowed to use what people have given knowingly or unknowingly, oh, i think, listen, maybe i'm wrong, maybe i know her or think she's sincere, even if she wasn't sincere, it's happening congress is looking at it as they should. i think from these hearings something will come out construct -- there will be in my opinion regulation. >> but i'm trying to understand what the regulation looks like, i want to understand what the consumer experience looks like the reason i ask is you could see a situation where the government says, okay, we will force everybody to identify on a screen exactly the kind of data that's being transmit

. >> right >> mark zuckerberg was actually on instagram thanking cheryl sandberg, she's been on for tenears. who do you hold responsible? >> i facebook overall is responsible for what's happening. >> and what you should get for it this is a very interesting lie ability question >> should i get any money back from that? >> yeah, i'm asking. >> no, but i think the federal regulators -- by the way, elon musk, did you see his comments, he's furious about this. >> well, he's been with mark zuckerberg forever >> i went back and read a "rolling stone" piece from november where he laid out his concerns like do what you say you're going to. >> what would you do if i'm a regulator >> by the way, i agree i think there's a huge problem >> media companies are held to all kind of standards that facebook has never been held to. why do we have that difference why can they collect any data they want and do anything with it when media companies can't. >> you do think it should be worth as much as walmart and boeing combined? >> you've been on the valuation thing the whole time >> i'm just wondering if yo

i think that's what people are really looking for from mark and cheryl stan burke. -- sheryl sandberg. the need to take ownership of this. alix: the stock got hit this week that the shows why some investors may not care. this is revenue growth for facebook and google and nominal gdp in the u.s., facebook is the white line. that is monster revenue growth. saying is you're accurate but if you are an investor and looking at this chart, how do you interpret the headlines? >> facebook has no real. there is no alternative. there is no equivalent you can turn to if you are a consumer. they own instagram. they have a corner on the market they serve but the concern is maybe this time is different. been able to shirk off these regulatory questions for a while but now there is momentum behind it in congress is serious about questioning mark zuckerberg and looking into their business model. could they have regulatory penalties? david: they got attention but not in a good way. we had the 2000 election we called wrong and i had to testify. i spent weeks studying the computer screens on the projecti

cheryl: how would you advise mark zuckerberg if you were there as executives of facebook? if you were sheryl sandberg, what would you say to him? he agreed to testify in front of congress. that is an about face for him. he will not speak to british regulators. they want to talk to him too. he is being picky and when? >> first and foremost he has it get back to his base being values, openness and authenticity. that is how he got 66% of the american public to go on facebook every day and those values are lost with this discussion what happened with cambridge analytica. cheryl: with cambridge analytica, this was basically a whistle-blower situation erupted into a crisis hitting facebook of course affecting the stock. do you think there is more out there? >> well i think, i kind of emphasize in micro trends squared, i think the future of technology is great but they have got to pay more attention to the rules of the road, private sir, ethics. i think you have in the seen beginnings of privacy with ai. i think driveless cars are a fantasy. they will no the be produced for many, many years. that is beginni

cheryl are simply extraordinary leaders. bad things can happen in some of these major companies, even with extraordinary leadership. i am sure they're fixing things very quickly. again, i think that sheryl sandbergk zuckerberg are two of the best executives in the world. >> are you worried at all that the tech markets globally are set for a correction and how soon do you think it will take place? jim: i think markets in general are overvalued based on historical price-earnings ratios. i do worry about macro valuation in the u.s. and in china. i believe many of the unicorn valuations were high. the inflow of money that came in 2013 and 14. oo farluations went t ahead with where they would go in a perfect five-year plan. i worry about correction that i also tend to hold stocks for seven to 10 years. founder-driven brilliant leadership team, there is always some valuation risk like over a five to 10-year time. period, three companies will tend to work out very well. that was jim breyer speaking exclusively to bloomberg. , kim jong-un is reported to be in china ahead of anticipated meetings with the west. the latest news surrounding north korea and taking you through your market here. a trade war te