sarah frier first. arah: remember, there was 2011 consent decree that facebook had with the ftc where they had to alert users if the data was going to be used and get the explicit permission and if not, they could be fined. the ftc is likely looking at whether facebook deserves to be fine for the data that has ended up in the hands of third parties who did not have explicit consent to access it. interesting is, facebook, the social network can always put this back on users. well, you opted in, even if you did not quite understand what you are opting in for. how does that play into what the ftc is looking into? sara: as sarah mentioned, after the ftc did the 2011 consent they have got to get the express informed consent. users have got to be very careful with what they are agreeing to. what the ftc will look at and we will not have any updates along the way because they did say it is a nonpublic investigation, but they are going to go back and look at how the data was transferred, first to the research f

sarah's.ere are two first --to certify our sarah frier.arah: 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 researc

sarah frier, talk us through the details.his new spin we get on this don't --, does it help with tackling this going forward? issuesi think there are -- there are different versions of the story coming from every angle right now. these undercover investigations that channel four news has done has marketed up the details on this facebook situation. it is a completely separate issue, almost. it may be hard for readers to keep track of the fact that that is not what we are talking about when we talk about this data leak to facebook. is not the most specific term. there was a researcher who obtained information on facebook users and went and share that information with cambridge analytica. facebook asked them to delete it. they didn't. that is why we are talking about it. cambridge analytica said they did delete it. there are so many different sides of this developing story. facebook is in the middle of the firestorm, trying to figure out how to make their side clear without having all the details. and what is not true but cambri

to dig deeper, i would like to welcome sarah frier. for reaction across the pond, we have caroline hyde live in london. sarah, zuckerberg agreed to testify. i do not think he has never testified before congress before. what do we know about his appearance or will he say? sarah: we know zuckerberg came to terms with what he said. he said last week, if i am the right person to answer these questions i will do it. , congress came back and said, you are the right person. we want to hear from you. so zuckerberg has come to terms with that. in front of congress there are going to be so many questions facebook can't just answer. a lot of questions in particular about where this data has gone that was shared with third party developers before 2014. facebook doesn't really know -- they are going to do audits, but they do not have currently the answers to, where are these 50 million user profiles? when did cambridge analytica delete them? they relied on cambridge analytica and the reporting from the new york times and observer last week we didn't

sarah frier, thank you so much for that update.up, spotify is seeking support on wall street after rolling out an unusual ipo plan. we hear from an investor from the streaming music service. this is bloomberg. ♪ mom, dad, can we talk? sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. >> it is 12:30 in hong kong, i am debra mao with an update of the top stories. the u.s. will impose tariffs on steel and aluminum next -- imports. meeting with an executive at the white house, president trump the industry mean has been treated unfairly by global rivals. ? they have been horribly treated by other countries and they have not been properly represented. more importantly, because of t

sarah frier, thank you for that.aiting for zuckerberg to break his silence and you can turn to bloomberg for more on this story. this is bloomberg. ♪ >> as you already know we decided to raise the target rate by one quarter percentage point. ongoing jobors -- gains are boosting incomes and confidence. foreign growth sunny for trajectory and overall financial conditions. to schedule process has been underway for more than two years and has served and should continue to serve the economy well. yet only sing gradual pressures on inflation and wages despite the very large increase. that suggest the relationship between changes in slack and inflation is not so tight. there is no sense in the data that we are on the cuts of an expiration of inflation. changesno thought that in trade policy should have any affect on the current outlook. the cost of capital is one of many factors they will consider, it isn't the only factor, but should result in more investment and investment should result in productivity. yield curves predi

to continue the discussion on facebook and we begin sarah frier with more. david kirkpatrick, friend of the show. the facebook, " effect." let's talk about the timeline because the data misuse was known and cambridge analytic a -- they thought they got rid of it. facebook put out this long post on friday saying it received new information that leads them to believe that cambridge and an x -- what they were referring to was a new support that was supposed to come out the next year, and the next day we got this bombshell report from the new york times and the guardian that explained that this data is still in the hands of cambridge analytics and so it aller, unraveled from their. today facebook came out and said we don't know if cambridge analytics has the data and we have to do and not it. , abridge agreed to a audit digital forensics specialist came in to their servers to check whether or not they deleted this data. this is unraveling as lawmakers in the u.s. and britain call for mark zuckerberg, somebody from facebook to come out and face responsibility and

sarah frier, thank you very much indeed.e heard that facebook is being sued by investors over voter profile harvesting. investors claim facebook fail to disclose the vulnerability and especially saw the data was taken back in 2015. april trump research firm other data without permission. we turn to cambridge analytica's methods and what the company is truly to figure out facebook users psyche. next. this is bloomberg. ♪ caroline: salesforce has a great the by a company for $6.5 billion, and its shares surged 28% on tuesday following the report the sale was imminent. clients haves content on the cloud, and that is told .711 shares of common stock for each wheel soft share -- mulesoft share. we continue the fallout of the misuse of facebook data, report of what data cambridge analytica hat and how it was used continue to pour in and our next guest is someone with a insider perspective of how facebook operates and calls into question the effectiveness of something called psychographic targeting. antonio, wonderful to have you o

emily: that was sarah frier and caroline hyde.nd as the fallout continues in the wake of the exploitation data on millions of facebook users, we caught up with dick costolo and asked him to weigh in on the controversy. >> one of the concerns or questions i have is the impact it will have on the way people think about api's and access to data in the future. obviously, facebook has built out this platform approach that enabled third parties to act as this -- to interact with it in gauge with people on facebook, and turned that off from years ago. we are seeing the consequences of some of that. i think it will have an impact on the way technology and company is forward think about how the data will be used, how they can audit, how it is disposed of. emily: how does facebook use data differently than twitter? twitter istand it, more protective of user data, though twitter has its own issues which we can talk about. do you think facebook has been too permissive, too careless about user data? not to be an apologist for what has been goi

sarah frier walked us through the year that was, the ups and downs. has been one year since snap ipo, and there are still a lot of questions. it made huge changes. it rolled out a bidding based advertising model which caused the prices to fall, and it redesigned the snapchat application to separate friend posts from posts from celebrities and the media. there was one tweet by a social media superstar that wiped out $1.4 billion of snap's market value in one day. they posted their first quarter actually beating analyst estimates, causing it to surge 47%. the fan base is growing steadily, with active users growing to 200 million, but internally snap did not meet its goals so employees did not get cash bonuses. the leadership team has been working to improve, trying to work on their transparency, but evan spiegel has a reputation for not appreciating criticism, and has lost a slew of top executives since the ipo. one point analysts keep making -- facebook's first year public was crazy too. emily: that was sarah frier. when it comes to tech investment fund

emily: that was sarah frier and caroline hyde.s the fallout continues in the wake of the exploitation of data on millions of facebook users we caught up with former twitter ceo and asked him to weigh in on this controversy. >> one of the concerns i have questions i have is the impact it is going to have on the way people think about apis and access to data in the future. facebook had built up his platform approach that enables third parties to access this data and use them to interact with and engage with people on facebook and turn that off years ago. ther now sort of seeing consequences of that. i think it will have an impact on the way technology and company founders and ceos going forward think about how that data will be used. how they can dispose of the data. emily: how to facebook use data in a way that is different than the weight twitter handles data? as i understand it, twitter is more protective of user data, though twitter has its own issues, which we can talk about. do you think facebook has beentoo permissive -- been

thank you very much, great reporting from sarah frier and max chafkin.k for their articles in the new bloomberg businessweek. the european union wants to hear from facebook. we look at how they could punish the social media giant, next. if you like bloomberg news, check us out on the radio. listen to us on the bloomberg radio app. this is bloomberg. ♪ the calls for facebook to speak to government officials over the misuse of data are growing louder. theresa may made her demands to the social media giant provide answers. >> people need to have confidence in how their personal data is being used, and i would expect facebook, cambridge analytica, and all organizations involved to comply with the investigation that is taking place. i am pleased to say the bill we are bringing forward on data protection will strengthen legislation around data protection and give the ipo commissioner proper power to make sure they comply. caroline: the response to facebook. the penalties for violating consumers' privacy are far stiffer in europe and america. they can avoid pay

emily: all right, sarah frier. thank you as always for breaking it down.or itsying fears up direct listing, we will hear from pandora. where does the streaming service fit into the current landscape? that is next. this is bloomberg. ♪ emily: another tech company is going public. doc you sign his plan -- do cusign is planning to list on the nasdaq. it is likely a placeholder in the company plans to use proceeds are looking capital and other general corporate purposes. the electronic document software company had a net loss of 115 million dollars for the year, ending january 2017. the music industry has seen a resurgence in the last few years things to the proliferation of streaming music. pandora has been one of the mainstays in the industry. with spotify's direct listing around the corner, the composition of streaming music is heating up. i want to bring in chris phillips, chief product officer at pandora. thank you so much for joining us. you guys just launched personalized playlists, tailored to users moods. if you will, how will this work? how will it b

joining us now, seven -- sarah frier. to me about this home speaker and how it was going to work, because there are some troubling details about just what this speaker would know about me. sarah: this is not the right time to ask people to put a listening device in their living rooms. this is a time when people are really worried about all the data facebook has on them. basically what this home device would have helped do is it would allow you to video chat with other people in other houses and use facial recognition to let them know who was talking to them. there are all sorts of more intrusive details that -- of this kind of artificially intelligent device, including facial recognition, that make it really difficult for somebody to say, yes, i want to buy that right now, in light of all this news. emily: it's not as if they are shelving this product altogether. they are just taking a closer look, possibly waiting for the controversy to die down. sarah: there are a couple things going on. first, this news cycle has not be

sarah frier walked us through the year that was, the ups and downs. has been one year since snap ipo, and there are still a lot of questions. after snap went public, it made huge changes. it rolled out a bidding based advertising model which caused average ad prices to fall. it also redesigned the snapchat application to separate friend posts from posts from celebrities and the media. that is a move that has seen lots of public backlash. in fact, there was one tweet by a certain social media superstar that wiped out $1.3 billion of snap's market value in one day. last month, the company posted their first quarter, actually beating analyst estimates, causing it to surge 47%. fan base is growing steadily, with daily active users pushing 200 million, but internally, snap did not meet its own goals. so employees did not get the 2017 cash bonuses that were planned. the leadership team has been improve employee morale, trying to work a little bit on their transparency, but chief executive officer evan spiegel has a reputation for not appreciating criticism,

sarah frier, thank you as well.ia: we are less than one hour of the close of trading for her let's get a check with the julie hyman. julie: facebook's troubles are not infecting the rest of the market. as we seechnology major averages rising into the close. the s&p and nasdaq have been bouncing between gains and losses -- losses today. now they are solidly in the green. even with him technology, things are split. nvidia, theon and two largest point country bidders to gains in the aspirant -- s&p 500. they are recovering. we do have facebook, which has bounced off its lows of the session. fallen 10% over the past two sessions per you have oracle, which forecasted slowing cloud-based sales growth. it is down by 9%. those are two of the largest drag on the s&p 500. you have that split major of what is going on. elsewhere, you have the fallout from president trump's announcement of the details of what his administration wants to do to combat the opioid crisis. among measures that he has talked about is something to drug

and europe are demanding -- sarah frier joins us now from san francisco. avoided the spotlight until now? seems to have made no public comment on this. sarah: lawmakers in the past have mostly said we want to hear from whichever executives can get us closest to the answers. facebook has sent its chief legal counsel, it's policy executives, but now, this is one last straw. lawmakers in the u.s. and europe are saying we want to hear from the top guy himself. we want to hear from sandberg too. a new push for this kind of thing. we heard a lot of that bit about this as recently as last week. the fuel -- the fire is under facebook to prevent somebody who can really take responsibility for what happened. vonnie: an automaker scandal or some other scandal we've seen the ceo, out and try to fend off the crisis early. why does zuckerberg think he does not need to do this? sarah: zuckerberg has resorted to a lot of carefully written posts on his own facebook page. he's come out and made select public appearances where he can control the conversation and is not reall

also with us, sarah frier, who covers facebook. sarah, what led up to this?ackberry, as a company, has been focusing on trying to get revenue from i.t. -- ip, as opposed to its messaging business, which has declined, its handset business, which has declined. patent revenue is on the up and up. maybe they have a chance with facebook, which certainly has money. emily: do they have a case? matt: they do. lack very has over 40,000 -- blackberry has over 40,000 patents. we are looking at pre-smartphone era ip. some of this is foundational. the question is what is the incremental value of that 15 years later. they are likely seeking pretty high royalties. the question is how much is this actually worth to a company like facebook that continues to innovate and put out new products with direct messaging services. emily: why now? this has been going on for years. matt: as sarah mentioned, blackberry's business model has changed. they have gotten out of handsets. they are looking more at brand licensing, software licensing, ip licensing. they have this huge portfolio o

let's get an update from sarah frier. she is on top of this story. tell us a little bit more about what investors are so rattled about this gamble or the -- scandal or controversy? this is a long list of data issues surrounding facebook. sarah: this is just the latest bungle in a long line of things that have happened to facebook this year. we have had so many public concerns. there is the russian use of its platform to manipulate voters. there are coming to, facebook's response to that. this issue, for some reason, has really resonated with lawmakers. this is an instant with facebook did not know that this data firm retained this information through the firm itself says it has not. this is really going to be the last straw for a lot of lawmakers. they have called for zuckerberg to testify. they want the executives to come and answer why they did not understand that this was happening with the data, and honestly, when it comes to regulation, robert the -- privacy is probably facebook biggest weakness. we might see it later in the u.s.. yvonne: i thin

we spoke with sarah frier who covers the social network for bloomberg as well as caroline hyde who joinss live from london with reaction from europe. >> zuckerberg has come to terms that he will have to do this. he said if i am the right person to answer these questions i will do it but i have to be the right person. congress can back and said you are the right person. we want to hear from you. to termsg has come with that. in front of congress, there are going to be so many questions that facebook cannot answer. a lot of questions in particular gone where this data has that was shared with third party developers back before 2014. facebook does not know. they will do some audits. but they do not have currently the answers to the -- where are these 50 million user profiles? when did cambridge analytica delete them? they relied on cambridge analytica to tell them that it was gone. what is the reaction in the u.k. where he said -- i'm going to send my deputy instead? caroline: anger. came back fighting. the committee is investigating how fake news may have played a role particularly in the

reporterome bloomberg sarah frier from san francisco and steven dennis from washington.his is more complicated because we hear from cambridge and america and they got their information from another developer who has gotten her mission from these personality apps from users. what exactly is the problem here? thatcebook has this tool in the past allowed you to log in to facebook and when doing so is you permission to a app developer to access information, not just on you but on your friends. only about toward 70,000 people use this app, which is a person not a quiz for academic purposes. people gave access to millions of people through giving permission. and good forl facebook policies, but the problem happened that when the researcher turned around and give that data to cambridge analytic. facebook said this is not a breach or hack, but everyone who use the product and lawmakers included are saying this is actually a breach of our trust and a problem with how we understood that facebook. didn't have his ability of how a certain party was going to maintain and share facebo

opinion as a long-term investor >> john, i think some people didn't like how fast it went and sarah frier's doing such a great job as cfo i think you're going to be right, but you know what it be floppin' and choppin'. joseph in pennsylvania, joseph >> caller: a great big philadelphia boo-yah to you. >> oh, man, howie roseman, go first boo-yah. what's up? >> caller: first time caller, new investor with the recent fines on bank of america for fraudulent activities, where do you think this company is going? do i build, hold, or sell? >> bank of america's heading higher, the largest ben fishery of rate hikes. and we have a rate hike happening in the fed i prefer the data. i am what's known as data dependent. but bank of america is an inexpensive stock. you have to hope we go back to the old world, but i don't think we're going to "mad money" tonight, it's the bane of the long-term investor's existence. and vincent wang and my exclusive with constellation brands can it keep up the momentum? stick with cramer. >>> don't miss a second of "mad money. follow follow@jimcramer on twitter. have a ques

emily: that was sarah frier. to tech investment funds, softbank's vision fund reigns supreme. with $100 billion in its coffers the fund has invested in uber, , we work, and just this week, door dash, and they are not stopping. the vision fund ceo spoke with caroline hyde at a conference in barcelona on what comes next in , hitting that $100 billion commitment. rajeev: the message is simple. it is not just about the industry. the message is the entrepreneur the vision, the passion, the first, ability to grow, not just grow in terms of revenues but are able to recruit, have the -- but be able to recruit, have the bandwidth to go out and hire senior management. and i believe that they can do it because that is what we push on market capital. how are you create exponential growth using that capital? that is one. second, they cannot be number two because going from number two to overtaking the market leader takes a lot more effort than drawing from number one. caroline: market share in a country or globally? rajeev: i

sarah frier, thank you for your perspective. scarlet: it is time for the business flash.tting up for ipos and the filesharing company has brought in its price range and is marketing. between $18 and $20 a piece raises the potential market value by 10% to more than $7.8 billion. about sevenased hundred $20 million and the share price after the close today the stock begins trading tomorrow. opening statements began today as the doj makes its case against at&t's takeover of time warner. ceos of the companies were at weston court -- washington court and they say the deal is the site to great a powerhouse to compete with the likes of amazon and netflix. the doj says it will lead to higher prices. that is your business flash update. joe: coming up, what you need to know. this is bloomberg. ♪ scarlet: a selloff in u.s. stocks accelerated the afternoon and this is the biggest decline in six weeks, people wondering if -- and don't miss the potential government shutdown that looms as congress tries the past the 1.3 trillion dollars spending bill for tomorrow's deadline. joe: and ec