my exclusive interview with sheryl sandberg.loomberg. ♪ this is bloomberg. ♪ caroline: pinterest results. 18% as revenue barely misses. let's get the inside track. what is everyone so worried about in this set of numbers? >> if you look back at the tryings preview, we were to determine whether it was a trick or a tree. it is clearly a trick. the big challenge for pinterest is their audience 70% international, but monetization is 10%. saw the rate of growth in yes, ational sales, and small miss is not significant, but the deceleration in international is why you are seeing pressure on the stock. joe: to use the selloff does not look out of line with results? >> i think you pointed out earlier that it was a tough day for mid-cap internet stocks, lyft and others. to have that kind of performance on a day like today results in a material downturn after hours. the call will be starting soon for there is to vote the company to explain what is going on. caroline: they are adding users in less lucrative international markets, but couldn

caroline: thank you so much for your time today, sheryl sandberg of facebook.aidi: let's get a quick check of the markets. futures andg nikkei korea cost be futures higher at the moment, coming after the nikkei suffered its first loss in eight sessions. we seen the japanese yen with that holding pattern ahead of the boj policy decision. cost be, we have seen two sessions of losses. the deputy governor coming out right now and speaking to reporters, saying the fomc rate cut actually beats market expectation. the korean lawn been under pressure after rising to a formant high this week on trade optimism. let's get the first word news. cut again, reducing interest rates for the third time this year. notual jerome powell signals more further cuts in less the economic outlook changes. treasuries weakened on the announcement while stocks in the dollar both showed slight gains. status ofthe current monetary policy is likely to remain appropriate, as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, a

part of our interview with facebook cielo sheryl sandberg -- facebook coo sheryl sandberg was on thatct. that is coming up. this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's talk about our stock of the hour. today we're looking at lloyd's come out the bank out of the u.k. come falling 3% at the lows lloyd's, then -- bank out of the u.k., falling 3% at the lows of the session. in a chandran is here with more -- emma chandra is here with more. emma: profit at lloyd's almost wiped out in the third quarter due to a one billion pound charge for involvement in the miss selling of payment protections, a scandal that has dogged u.k. banks over a number of years and cost the multi-billions of pounds. this is expected to be the last charge. nevertheless, we are looking at the banking industry in the u.k. and in europe that has come under pressure. you can see how lloyd's andy how lloyd's and the stoxx 600 index are lacking. changes, looking at the coo looking to retire next year. the, norman blackwell, long-s

sheryl sandberg, the latest business flash headlines. -- theckerberg's facebook ceo told investors thattagram was not a true competitor and has only grown because of the social media giant. the u.s. federal trade commission is investigating whether facebook has violated antitrust laws. >> twitter is blocking all political ads. saying it is about beingates paying -- not free expressly. apple has predicted a revenue that the analyst estimates, signaling solid demand for iphone 11 models as well as services and levels. suffering -- something ceo -- softbank ceo spoke at an event in saudi. saudi arabia contributed $45 billion to the first fund, but did not anything to the second. >> into the lunch break, some of the key movers. sony nearly 3.4% and the company billion.200 demand a camera such a and you can see what is happening at the global economy. many people thought they would be a downgrade coming, but things are expecting growth now and one of the biggest in asia pacific index fully operating which is really much worse than the average estimate. advertising and gave businesses contrib

they were due to meet twitter is banning political advertising on its platform next month but sheryl sandberg says facebook will not be doing the same. >> we are not doing it because of the money. this is last in 1% of our revenue and it is not worth the controversy, but mark said we believe in free expression. we believe in political speech, and ads can be an important part of that. manus: the saudi energy manager says mohammad bin salman will determine the timing of aramco's ipo, saying it will be soon at the right time. yousef: it is 9:00 a.m. in the emirates. this is bloomberg daybreak: asia least. i'm yousef gamal el-din. manus: i'm manus cranny. the bond market, hoping there will be another rate cut in 2020. december might be a debate. found by seven basis points yesterday, back at 7.18%. u.s. treasuries are a must buy. there is risk to the upside. 2% by the end of the year, it is said. equity futures taking a little higher in the last hour or so on additional traction on the trade front but now the s&p 500 is trading 20 times earnings. some fanfare around apple earnings but caution thi

jennifer morgan is cosi all of the german tech company as a p sheryl sandberg has operations at facebook and susan but just keep manages you 23 female exceptions in an industry dominated by men too bad especially considering that programming used to be seen as a typical job for women in the u.s. in the forty's they played a big role in pioneering digital technology but today less women work in tech only 14 percent of tech startups worldwide were created by women they found less developed less and because of that their creativity goes on used for the market do women face bigger challenges here's what these leaders have to say. if money is different we need more female role models come to think of it there's hardly any successful female entrepreneurs that i can look up to on it's like in all areas of life. he is asking him even without a role model or someone to live up to it's just hard for young people to find their way come and just as you have and it's easy for them to get discouraged. on the 1st meeting with let's say investors big c.e.o.'s of companies that they don't take you seriou

jennifer morgan is cosi all of the german tech company as a peek sheryl sandberg has operations at facebook and so as of a disk it manages. 3 female exceptions in an industry dominated by men too bad especially considering that programming used to be seen as a typical job for women in the u.s. in the forty's they played a big role in pioneering digital technology but today far less women work in tech only 14 percent of tech startups worldwide were created by women they found less developed less and because of that that creativity goes on used for the market do women face bigger challenges here's what these leaders have to say. if money is different we need more female role models come to think of it there's hardly any successful female entrepreneurs that i can look up to it's like in all areas of life. he is asking indians without a role model or someone to live up to it's just hard for young people to find their way come and just as you have and it's easy for them to get discouraged. on the 1st meeting with let's say investors big c.e.o.'s of companies they don't take you seriously so you'

jennifer morgan is cosi all of the german tech company as a p sheryl sandberg has operations at facebook and so as of a disk it manages you $23.00.

can lead to why sheryl sandberg?om all we heard, she seems to be the person most promoting profit at all cost and the company. most of the reporting that has come out of there has as she was the one who set up the advertising model. she's the one who has been really uncompromising about. ahead with anything that gets in the way a prophet soda being eliminated and some things that get in the way of profit are just necessary for our survival, like making sure that these platforms don't spark genocide, making sure they don't spark violence, making sure people thet get killed because of violence. taylor: in their defense, they wanted to create a platform in which there was public discourse, room for us to have these conversations and discussions. why is it then their burden to be able to regulate what is or is not set? >> because they built the room in which we are having this party. if you're hosting a party and don't card people before they come in and do not decide any behaviors out of bounds for the first 10 years an

coo,ar from facebook's sheryl sandberg, next.s is bloomberg. ♪ taylor: this is "bloomberg technology." i'm taylor riggs in san francisco. facebook has seen its share of recent rain clouds with antitrust issues, cryptocurrency pushback, and data breaches hanging over his head. one of the most controversial stances was recently announced by ceo mark zuckerberg, who said facebook will not and political ads even though they are known to be false. in an exclusive interview after the company posted earnings, caroline hyde got perspective from facebook coo sheryl sandberg. >> this is less than 1% of our revenue and revenue is not worth a controversy, but what mark said is we believe in free expression, we believe in political speech, and ads can be part of that. i think where we are leading is on transparency. we put out an ad library, we announced a presidential ads , and that kind of transparency we think is really important to people understanding. you also talked about investing in protection. one of the things we talked about on ou

why sheryl sandberg?i think that, from all we have heard, she seems to be the person most promoting profit at all cost and the company. most of the reporting that has come out of there has as she was the one who set up the advertising model. she's the one who has been really uncompromising about full steam ahead with anything that gets in the way a prophet soda -- a of being eliminated. and some things that get in the way of profit are just necessary for our survival, like making sure that these platforms don't spark genocide, making sure they don't spark violence, making sure people don't get killed because of these platforms. taylor: that was new york staff writer andrew marantz. softbank is said to be readying a $5 billion rescue plan for wework. we have details. and later, our conversation with the man leading facebook's foray into, david marcus -- into cryptocurrencies, david marcus. this is bloomberg. ♪ taylor: wework's future remains foggy, but softbank is a said to plan a $5 billion rescue financi

sheryl sandberg, i heard, is not happy in her job. -- liz: very smart. >> very smart and very good. remember, she's the one who helped bring that company back. she was a great business person. after that ipo in 2012 which didn't do well, she reformatted that company in many ways, so i think she's smart. by the way, investors personally like her, but the notion is does she have the chops and does he have the chops to deal with this political issue. i hear,s this is what investors or are saying, there's going to be some changes at the top. maybe they bring in other management, but clearly there's a lot of talk about that. liz: what was your best halloween costume as a child? and don't say -- >> i don't know. liz: -- marlon brando, godfather. >> i don't remember. i wasn't big into, you know, halloween costumes -- liz: wait with, i'm being told dr. evil? >> oh, well, that's when i dressed up -- liz: he fumbles, i literally hand him a softball, and he -- >> are you asking me for an honest opinion? i mean, i don't partake in halloween. by t

what's created this massive cognitive dissidence is mark zuckerberg and sheryl sandberg are saying, no, facebook will take the election and voter suppression very seriously. we will take down when officials might lie about a polling location or poll hours. what they're failing to recognize is that in 2019, voter suppression looks a lot more like racial appeals, like deliberate campaign misinformation. you could have local officials basically do a doored curednated campaign payne saying we're going to have police officers stated outside every majority black neighborhood on election day, or we could have local officials or the president say, you know what? if you fill out the census and you're la teen o we're going to give you information to i.c.e. facebook is saying that's fine, even though it's complete plies information, we're going to allow that to stand. >> reporter: i want to be clear because there's an election astake, they have said based on what they learned in the last election they are staking specific steps to protect themselves from foreign interference, letting people know

i know they had been trying to get sheryl sandberg. we wrote about that a couple of weeks ago. it looks like they got someone even better which is her boss. taylor: what do we know about the content of the hearing? kurt: this committee focuses on financial services. they also do housing stuff. facebook has been accused with issues around its advertising businesses. people are being discriminated for housing related issues. i imagine that will come up. once you get an executive in front of the committee, pretty uch anything goes. with mark zuckerberg being there, i imagine we will hear questions that span the entire gamut. taylor: i think i asked you this before and i continue to be perplexed, does facebook realize the amount of opposition that would be coming their way about cryptocurrency? kurt: it's hard to imagine they would have seen this level of pushback. if they had, i would hope that they would have gone out and done some of this work before. it is a tough situation. if they went out and had all of these conversations, it would've leaked. people would have said, what is

i know they had been trying to get sheryl sandberg, they were talking to her, we wrote about that a coupleweeks ago and it looks like they got someone even better in theory, her boss. taylor: what do we know about the content about the hearing? kurt: we know the committee focuses on financial services, so libra, the cryptocurrency facebook is spearheading, will probably be a large portion of it. they also do housing stuff. facebook has been accused of issues around its advertising business where people are discriminating or being discriminated against, i'm sorry, for housing related issues. i imagine that will come up as well the thing about these hearings i have learned, once you get executives in front of these committee, pretty much everything goes. mark zuckerberg in particular being there, i imagine we will hear questions that spanned the gamut. taylor: i think i've asked you this before and i continue to be perplexed, does facebook realize the amount of opposition would be coming their way about cryptocurrency? kurt: it's hard to imagine they would have foreseen this level of pushbac

how the worldviews views facebook, which seems to be pretty much everyone except for mark and sheryl sandberghave known he would hit a firestorm by going into that hearing, and it would be on far more issues than just libra. shery: one of the questions, i think the committee chairman maxine waters said you guys should stop working on libra until you fix all your other problems. is that a fair point? >> it is a fair point. there was a debate inside the company at the time they announced libra about if it was a good idea to even proceed getting soy were much pushback on so many other issues, and obviously, a system of money which is so much based in trust is a very risky thing face of ann the epidemic of mistrust that already afflicted them. there's tons of reasons why one should be cautious about trusting facebook, and even though they set this thing up, libra, if it were to ever happen as an independent association they are just one of many members of, everybody knows it is their idea. they are the ones who will capitalize on it the most because they have the 2.7 billion people around the wor

sheryl sandberg, our coo is personally leading a civil rights task force we formed inside the company to make sure that we implement suggestions from the audit tent to make sure this receives senior attention. >> is the order independent? is it fromendent, or within the company? >> congressman, yes. the audit is independent. laurabeing done by murphy, who is an established leader. allowed to publicly report whatever problems they find? >> yes. the reports that they are making as part of the audit will be public. they have already also publish things. >> do you have a right to limit what is said publicly about the audit? >> i am not sure the answer to that. at a high level, the answer would be no. there may be specific things around -- if there is individuals private data, or business confidential data, where they might not publish it. broadly speaking they are going to be able to publish what they believe and what they find. >> i yelled back. >> the gentleman from michigan, mr. huizinga. >> you have accomplished something that nobody thought was possible. brad sherman, chair waters, m

i know they had been trying to get sheryl sandberg, they were talking to her, we wrote about that a coupleweeks ago and it looks like they got someone even better in theory, her boss. taylor: what do we know about the content about the hearing? kurt: we know the committee focuses on financial services, so libra, the cryptocurrency facebook is spearheading, will probably be a large portion of it. they also do housing stuff. ofebook has been accused issues around its advertising business where people are discriminating or being discriminated against, i'm sorry, for housing related issues. i imagine that will come up as well the thing about these hearings i have learned, once you get executives in front of these committee, pretty much everything goes. mark zuckerberg in particular being there, i imagine we will hear questions that spanned the gamut. taylor: i think i've asked you this before and i continue to be perplexed, does facebook realize the amount of opposition would be coming their way about cryptocurrency? kurt: it's hard to imagine they would have a forcing this level of pushback.

it answers itself i think you're asking the right question i am not in zuckerberg's head, in sheryl sandberg's facebook representative. i have been asking why doesn't facebook take privacy seriously, do these things it doesn't do. the ftc a $5 billion fine about another violation arising from practices around privacy, you probably know i said that fine could have been if you took all the fines together, many tens of billions, more than a trillion dollars. facebook has been getting away with it for awhile on privacy and yes, i wish they asked that question i think your question answers itself >> kevin, in the beginning we talked about losing some members. started with 27, now 21. there are 180 that expressed interest if they lose more than the 21 they have, is it a big deal? >> i don't think so. this is headed where we always suspected it was heading, delayed launch, not in 2020. smart people from the beginning said that would be too tough to get by regulators. and a product that is given the amount of regulation is not super ambitious in the sense that for consumers, a lot like a checking acco

mark zuckerberg and sheryl sandberg are saying, no, facebook will take the elections and voter suppressionously. we will take down when officials lie about a polling location or ours. what they are failing to recognize is that in 2019, voter suppression looks a lot more like racial appeals, like deliberate campaigns for misinformation. you could have local officials do a coordinated campaign, saying we are going to w have police officers stationed outside every majority black neighborhood on election day, or have the president say, if you fill out the census, we are going to give your information to ice. facebook is saying that is fine even though it is complete misinformation. judy: there is an election at stake. they have said they are taking specific steps to try to better themselves from foreign interference. letting people know which news comes from state owned media. i hear you say that is not enough. vanita: they have made their protections against foreign actors more robust, but they are failing to recognize the degree to which domestic actors are weaponizing misinformation and rac

what you're saying >> again, very interesting approach we're not going to do it based on what sheryl sandbergthat political advertising is .5% of revenue, they can sit it out, say let's try it a year, 2020 okay no political ads focus all energy on controlling the organic piece. we'll see. >> is that what you would like to see them do >> i think that facebook needs to own the fact that it is not about free speech. facebook makes very clear judgments that you can't have porn, you can't hawk drugs, you can't have vegetables that look sexual they're setting a lot of rules saying nope, i'm sorry, we're not okay with that, yet they're saying we are okay with you using our platform to lie and deceive people as a politician, we're okay with that, hiding behind free speech so i understand it campbell brown came out yesterday, very strong, saying i am astounded that fellow journalists are saying facebook should be making the decision. i agree. it is tough. maybe there's a way to have a third party bureau do it, say you have to have an ad cleared by some third party as not misleading it is very complica

at that point, i scrambled to finish the draft and i sent it to mark zuckerberg and sheryl sandberg.hey were my friends. i had been their mentor. i was really worried that something about the culture, the business model, and algorithms of facebook was allowing bad actors to haharm innocent peopl. i could not believe they -- that facebook would do this on purpose. i went to warn them nine days before the presidential election. itortunately, they treated like a pr problem, not a business issue. they were nice enough in the sense that they had one of their colleagues work with me for three-month to let me try to lay out my case. so between basically the end of october 2016 and february 2017, i was begging facebook to do what johnson & johnson did after the tylenol poisoning in chicago in 1982. the ceo dropped everything. he withdrew every bottle of tylenol from every retail shelf until late invented tamperproof packaging. i thought facebook should do something like that, should work with the government to find out everything the russians were doing, to find out every other way the platf

plugs sheryl sandberg is the person -- >> we know cheryl is not really civil rights. i'm trying to help you here. she is your coo and i don't think there's anything and i know sheryl well come about civil rights and her background. , better than that for me if we're going to talk civil rights. >> it is an internal task force. >> do you know who the firm that you employ for civil rights is? >> i don't -- >> how could you not know when you have employed the most historical, the largest civil issuesfirm to deal with that are major? this is what is so frustrating to me. it is almost like you think this is a joke when you have ruined the lives of many people, discriminated against them. do you know it percentage of african-americans are on facebook? in comparison to majority? you know what the percentages are? >> people using the facebook? >> yes. >> i don't because we don't collect the races of -- >> it came out in a report and the pew research center that was sent to you. so maybe you just don't read a lot of things that deal with civil rights for african-americans. i'mve

sheryl sandberg, our coo, is personally leading a civil rights task force that we formalized inside the company to make sure that we implement suggestions from the audit and to make sure this receives senior attention at the company. >> is the audit independent? is it independent or is it from within the company >> congressman, yes, the audit is independent it is being done by laura murphy, who i think is an established leader in this space. >> are they allowed to publicly report whatever problems they find >> congressman, yes. the reports that they are making as part of the audit will be public i think that they have already published some things. >> do you have a right to limit what is said publicly about the audit? >> congressman, i'm not sure the answer to that i think at a high level the answer would be no, but there may be some specific things around if there is individuals' private data or business confidential data or something like that where they might not publish it but broadly speaking they're going to be able to publish what they believe and what they find. >> thank you so

sheryl sandberg speaking to caroline hyde. let's carry on the conversation about central banks.rd straight rate cut from the fed and a signal that it may stay on hold for now. the bank of japan leaving its policy rate unchanged. dropping the time frame. from -- mario draghi's last day as the e.c.b. there's a new woman at the helm. christine laggard. cristoph rieger is head of rates and commerzbank and we have a story this morning, cristoph, sub zero skepticism grows and it's a threat to christine laggard. is the company underpricing the price of normalization in 2020 from the e.c.b.? and when i say normalization i say getting back to zero. >> well, i think we've come a long way if you look at what the market was pricing just a couple of months ago. here basically was discounting -80 b. depot rate from from -50. so right now we're hardly pricing in any further rate cuts. still a little bit. and i think yes, the risk is that the market will take out the rate cut speculation altogether and at least start talking about normalization or higher rates. because i think the information t

>> sheryl sandberg -- >> we know she isn't really civil rights, so i'm trying to help you here. she is the coo and i don't think there's anything in her background. if we are going to talk civil rights. >> it's an internal task force. >> do you know who the firm that view and play for civil rights? >> how could you not know when you have employed the most historical largest civil rights firm to deal with issues and this is what is so frustrating to me. it's almost like you think this is a joke when you have ruined the lives of many people think discriminated against them and you know what percentage of african-americans are on facebook in comparison to the majority? do you know what the percentages are? >> of people using facebook? >> yes to you know the percentages for african-americans? >> we don't collect their races. >> it came out in a report that was sent to you so maybe you just don't read a lot of things that deal with civil rights for african-americans. i have a lot of questions c i'm going to send that i'm not going to be able to get through and i would like you to ans

shery: we actually have sheryl sandberg responding to comments about political ads.a listen to what she said. >> we are not doing it because of the money. this is less than 1% of our revenue. the revenue is not worth the controversy. what mark said is that we believe in free expression. we believe in free speech. ads can be part of that. shery: this is not the only criticism facebook is getting. we are also seeing criticism from antitrust regulatory authorities as well. we're talking about the sec, the doj. have we seen any impact on facebook so far? >> it does not appear to have had an impact. as we mentioned, the business numbers look better than expected. from mark or hear zuckerberg. he talked about the instagram acquisition today at length and reflected on what it was like one may acquired instagram and how they did not see the app as a competitor at a time -- at the time. they sell it as complementary to what they were doing. i cannot help but feel he is setting the groundwork for a broader argument that we will be hearing over the next year as these investigat

we spoke with chief operating officer sheryl sandberg. >> we are not doing it because of the money.% of our revenue, and the revenue is not worth the controversy. but what mark said is we believe in free expression. we believe in political speech, and adds an import part of that. viviana: it also will not fact check political ads. that is your bloomberg business flash. alix: thanks so much. that is facebook. twitter, on the other hand, entirely different take on political ads. ceo jack dorsey announcing it will ban all political advertising. at the same time, dorsey was able to take a shot at facebook. he tweeted, "we believe political message reached should be earned, not bought." the change will go into effect november 22. to 2020.ng as we had coming up, the fed signals rate cuts are on pause. pce is on deck, the fed's preferred measure of inflation. this is bloomberg. ♪ oomberg. ♪ whether you're out here on lte. or here on a wifi hotspot. xfinity mobile has more coverage to keep you connected to what matters most. that's because it's the only wireless network that automatically c

coming up later today, an exclusive interview with sheryl sandberg, facebook coo, at six clock p.m.g up on this part -- at 6:00 p.m. eastern time. coming up on this program, more on volkswagen's gloomy sales outlook and the revocations. this is -- and the ramifications. this is bloomberg. ♪ ns. this is bloomberg. ♪ viviana: a surgeon lawsuits from people who claim roundup causes cancer. almost 43,000 u.s. plaintiffs are suing bayer, more than twice the german company reported in july. the crisis has cost bayer or than $30 billion in market value. and peugeot psa confirming they are exploring a tie up. fiat says a deal would create one of the world's leading mobility groups. under one proposal, psa would be the acquiring entity. in terms of board seats, the french company would have an advantage. a sign that the declining auto market has hit volkswagen. the world's biggest carmaker lowering its outlook this year for vehicle deliveries. vw says sales will be flat. >> markets around the globe are becoming more and more competitive, and we are a bit more cautious in terms of our volume

. >> when did sheryl sandberg become aware of cambridge analytica? >> i don't know off the top of my head. >> that anyone on your readership team know about cambridge analytica prior to the report by the guardian? >> congresswoman, i believe so. some folks were tracking it internally. as you are asking this, i do think i was aware of cambridge analytica as an entity but don't know if i was tracking how they were using facebook. >> when was the issue discussed with your board member peter teal? >> i don't know that. >> this is the largest data scandal with respect your company that had catastrophic impact on the 2016 election and you don't know? >> we discussed it after we were aware what happened. >> you announced the official policy of facebook now allows politicians to pay the system for information. in 2020 elections and in the future. i just want to know how far i can push this in the next year. under your policy could i pay to target primarily black zip codes and an incorrect election date? >> know you couldn't. even for the policies around the