for more let's bring in sarah frier.hat exactly about the direction facebook is taking instagram to they object to? >> the main thing, facebook is now more reliant on instagram for its future growth. a lot more direct attention to instagram from zuckerberg and attempts to integrate the products on the back end and make instagram for so many years from instagram relied on facebook. now facebook is going to be more instagram. they want instagram to be a driver of activity and content back to facebook which goes against what instagram wants to do. this separate kind of experience for people. they do what the whatsapp people do and put that in the rules? that it would have to stay standalone? that is what was so interesting. >> you are absolutely right. was a client, this idea of buying an app and keeping it separate in the company come it was acquired before facebook went public, before facebook had a billion users of its own. they had 30 million users. -- the size when they were purchased by facebook. this is a different e

they spoke to sarah frier about the growing company user base.ucking a congressional testimony, the google ceo is heading to washington. can he quell a rising wage -- wave of anger directed at the search giant? that is next. this is bloomberg. ♪ emily: "bloomberg technology." -- it will allow regulated cryptocurrency. google said advertisers will need to be certified with google's -- with google for the specific country in which the ad will serve. staying with google, the company has been a favorite punching bag of conservative politicians of late. first player -- president trump claiming of news and search were biased against him and republicans. for not sending its leaders to testify on capitol hill. be meeting with lawmakers to defend google saying in a statement, i look forward to meeting with members on both sides of the aisle and answering a wide range of questions and explaining our approach. the meetings will continue google's long history of engaging with congress am including testifying seven times to congress this year. to discuss we h

to talk about this, we are joined by our tech reporter, sarah frier, and a former google executive.is a facebook going to stop doing and continue to do when it comes to presidential campaigns? >> facebook builds is politics like a business. the more money you spend, the more people come into your office. in the case of the trump campaign, they had people coming in several times a week. par scalia used a term to describe people really embedded to the campaign which was drastically different than the clinton campaign strategy. they want to improve their website so there is more broad support for anyone that needs it. emily: i sat down with brad par scale who is now the 2020 campaign manager. listen to this. >> i think president trump one because facebook delivered his message. if facebook did not exist, it would have been tougher. emily: do you think without the same level of help, this time around, that will be a huge disadvantage to the trump campaign and others? >> there is a couple of things. one, i want to know what sarah said. they offered this to both campaigns and the trump te

sarah frier follow the story. rah: facebook is so much more dependent on instagram now than it ever was. facebook's own growth is going to slow. they are going to have to spend more to grow in new areas. instagram is so crucial to the at picture. it just hit one billion users, but there are many more users they can still add. advertising is thriving and they have the products that everyone wants to use. there has been a lot more attention paid to the way that instagram could drive traffic to facebook, which is kind of a new dynamic. basically in the past, instagram was very dependent on facebook for its growth, now facebook is becoming more dependent on instagram. emily: two years ago, i sat down with kevin systrom, and asked him, do you regret selling? they bought instagram for $16 billion. facebook bought whatsapp for $20 billion. of course, he said no and talked about all the great things facebook had done for instagram and talked about how great it was to work with mark zuckerberg. take a listen to what he told

for more on the marathon, sarah frier joined is not -- joins us now. ocked theo have stock prices in particular is regulation being discussed, particularly the first senator conversation happening at the intelligence committee. sarah: jack dorsey has come out and said i understand these problems are large and understand i have not done enough. i'm willing to reevaluate the business model for twitter. he is really giving concessions, and at the same time, he doesn't seem to know exactly what twitter needs to do to get better. he's talking about taking public commentary to get feedback on the rules, sharing tips with -- whenmpanies, whether he asked if he could tell the difference between a bought and human accounts, he said it is very difficult for twitter to tell. uncertainty coupled with regulation, if twitter does not know what it needs to fix, how will the government know, that is why you see the stock falling today. companies would prefer to clean themselves up rather than have the government come in and do it, but that implies cost in more case and

emily: bloomberg text sarah frier. coming up next, exclusive conversation with ceo jim brett.rtner. this is bloomberg. ♪ ♪ emily: last quarter j.crew finally broke 15 consecutive quarters of negative comparable sales. in the last six weeks the ceo jim brett relaunched the brand. he joined bloomberg's retail reporter for an exclusive interview where he also talked about the company's recent decision to sell its mercantile brand on amazon. >> i really don't believe that we compete with amazon on the main j.crew line. i see the products that are being sold on amazon has more value oriented. mercantile is really a new brand a well that's geared towards younger customer, still with the preppy spirit, and a greater value. we felt like amazon was the perfect home to launch that new brand. >> you are not worried about canada buys asian -- cannibalization? >> no. i think we have a strong partnership with amazon and i believe we will maximize the sales for j.crew mercantile by growing j.crew mercantile. >> do you envision further j.crew group brands on amazon? >> not at the moment. >> y

and, sarah frier, thank you. a story we watch, cbs is in talks that could lead to the departure of the ceo. cnbc says the chief operating officer would replace the ceo. he has been investigated over isims, move as, -- move as , over claims.is chris palmeri joins us now. >> the headline is that this is the end of the era for one of the longest running media executives, and now it seems not to be a question of if but when. we still don't know -- we are hearing numbers between 100 million and 200 million in terms of a payout. it's important in the fact that these negotiations are ongoing. emily: talk to us about the negotiations in terms of the pay package. what is he entitled to if he is leaving under these circumstances? chris: it's a different story if you are fired her's is leave as a result of a merger or something. this is why it is a negotiation. if he is leaving, he's leaving because of the allegations against him. the idea is to get him out the door before those results are released. this isn't necessarily

sarah frier reported that the engagement with the facebook executive team has increased.g to instagram on a daily basis and are interfering with how that is run. francine: what do we mean by interfering? does that mean more ads? do they want to change the layout? >> we do not know for sure. if you look at what is happened with facebook, one of the reasons facebook has declined is the quality of the content has also declined. the long tail of growth from facebook ads is coming from smaller enterprises. these are companies that do not spend as much on their advertising content. new growth driver -- that implies that quality is also going to decline on instagram. that poses a risk. if the quality is declining, why would people keep using instagram? once they have used that up, they have to move on to something else. my: i am showing it on brand-new iphone. it is francine. come on, alex. this is the reality of instagram. it is there. what is the value of this to mr. zuckerberg? is it quantifiable? is it moral? they certainly did get a lot luckier than they knew at the time. o

sarah frier is here visiting. awesome to have you here.ber when snap went public and it was thought he was the idol in the room, having the banking experience. what does it mean he is leaving? sarah: he was considered the equivalent of sheryl sandberg at snap. he built the business from nothing but he truly did not have a lot of public company running experience. he was an investor, a banker. so you want to go back to what he is good at and snap is opening up, having the possibility of someone who can be more of a chief business officer who can figure out how to scale this business because they have had trouble with all of this volatility since going public. joe: what do they need? they need users, right? sarah: they need users, growth. any need to be taken seriously by advertisers. in order to get advertisers to take you seriously, you need to become vastly more popular every quarter and that is what people are looking for from snap. >> i thought khan brought a little of that to the table. i thought early on he was making moves with these

ism in zurich and joining me sarah frier he on a very cold deck of this hotel. -- we're up the lookingt the family office business growing and becoming reallyzu a successful piece of -- really a successful piece of the banks p&l. offices all of a sudden booming in this century? , in regions like europe and the united states, family offices are helping. , family office support, 7% of the offices i have interviewed have been asia,d -- clearly in industries are growing very fast. [inaudible] the reality is a couple of things are driving the increase of family offices. first of all, increased sophistication in the way families manage their money. there is clearly an increasing wealth. there have been a number of liquidity events over the past 20 years that have resulted in two very significant -- that you require it -- a professional type of management. matt: are you think that people are just getting wealthier, we are seeing more multimillionaires? >> that is part of the equation. the other part of the equation is there is more liquidity as opposed to money tied up in operation costs. mat

alix: sarah frier, thank you. great to see you on the east coast.her, wells fargo head of global rates strategy will be joining jonathan. and markets underway with s&p futures up about 10 points as treasuries go nowhere, despite the fact you have 70 theory alien dollars -- $73 billion of supply coming online. this is bloomberg. ♪ jonathan: from new york city, i am jonathan ferro. this is the countdown to the open. coming up, china's u.s. trade surplus rising to a record. president trump threatening to tax all chinese imports. apple says proposed tariffs hit a range of products, with heightening concerns. the american economy showing few signs of strain. the fed setting the stage for hikes. future set up as follows -- positive 0.4% on the s&p 500. the fx market, a stronger euro. sentiment improving. and in the fx market, all eyes on cable in the last 60 seconds. negotiator saying getting a brexit deal is realistic in t eight weeks.o sterling up

scarlet: let's bring in bloomberg's sarah frier joining us today from washington.ted to getting better they all agreed to work harder together. what is the next step in terms of doing something concrete? komen nation of a lot of investigation the senate intelligence committee has done into this issue. one of the more constructive steps, because the senators are now educated looking at this and saying you need to provide more transparency for your users. onn you are talking to a bot twitter, you should know you are talking to a bot. when you are contacted by a campaign, is it run by a foreign agent? you should be able to know that, and not months later. say that will be very difficult to deliver on. twitter said it is difficult to know what the difference between a bot account and human account is. issues like look on user verification to verify identities. they have to figure out what to do about a lot of the ways the people interact with the service in terms of abuse and harassment in people's reporting of that, which is a very burdensome system for those who are