Vote. He called johnsons remarks bizarre in deeply unfortunate. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang. This is bloomberg technology. Coming up, the escalating tensions the cost across the korean peninsula. Secretary mattis sending out a warning to pyongyang to stand down. We will get you up to speed on the global crisis. Plus, my exclusive interview with Sheryl Sandberg, sending out a call to action for working women and Holding CompanyCompanies Accountable for commitments to their employees. A moment of truth for snap as it looks to turn the page on its unsatisfying first quarter. What investors expect from the Second Quarter report card thursday as they fend off copycats. U. S. Secretary of state Rex Tillerson is trying to smooth things over after President Trump threatened to unleash fire and fury against north korea. Tillerson told reporters he was sending a message in a language kim jongun would understand. He said it is not an imminent threat from north korea. The fbi raided the northern korean northern carolina home of Paul Manafort two weeks ago to find tax and foreign banking records. Joining me to discuss is sahil kapur in washington. Lets start with north korea. There are options. What is the most likely way this plays out . Problem we know has bedeviled the clinton administration, the bush administration, the obama administration. No one has figured out how to deal with north korea that they are so because they are so isolated from the world. Economic sanctions do not even affect them. They have an erratic and unpredictable leader. It is hard to know how this plays out. There are no Great Solutions beyond containing them and preventing them from acting in a more belligerent way, which is what secretary james mattis said today. They spent much of the day walking back President Trumps quote,c, a fire and fury saying it was offthecuff. They said the words should not be taken so seriously. Emily when it comes to Paul Manafort and the fbi raid on his home a day after he spoke to members of the intelligence committee, how big a red flag did they see . Is it a sign they did not trust him . Sahil it is a sign the investigation into him is very serious. The raid happened late last month. They did not disclose what they were going for. It seemed the work of an investigator not operating in the public eye, but once to get the information they can. There were search warrants involved and they seized information from his house. It sounds like they have a specific purpose. Beyond that, a lot of this is unknown to the public, specifically what the investigators have in mind. It definitely sounds serious. Emily more harsh words from the president himself for Senate Majority leader Mitch Mcconnell. President trump tweeting, senator Mitch Mcconnell and i , but i do notns think so. After seven years of hearing repeal and replace, why not done . What do you make of yet another public attack from the president to a key lawmaker . Sahil most of the president s prior attacks on republicans Mitch Mcconnell, the man he needs to get any legislation through. It is unusual to see trump and mcconnell going after each other like this. Mcconnell has so far only offered gentle critiques about the president , with regard to his twitter feed. He does not like the president s tweet because it distracts from priorities of congress. This time he went further and per trade President Trump as a political novice who does not understand the way things move, and the fact things need time to happen. He is perhaps over inflating expectations. President trump does not have a major legislative achievement, to brag about the Obamacare Repeal bill. Everyone is trying to point fingers. Mitch mcconnell wants to explain why they were not able to get that done. This is some ratcheting up. It is unhelpful to republicans if they want to get big things done the rest of the year like infrastructure and taxes. Emily our new president has not been in this line of work before and i think he had excessive expectations about how quickly things happen in the democratic process. Sahil kapur from washington, thank you for that update. That next Google Engineer fired for his memo on gender differences in the Tech Industry differences, and the Tech Industry made its comments. There was an interview posted online. He discussed the reasons behind the memo. A lot of this came from seeing problems in our culture a google, where a lot of people that were not in this groupthink felt totally isolated and alienated. There were many people that came thinking ofid, i am leaving google because it is getting so bad. Really thought it was a problem that google itself had to fix. Coo sherylbooks sandberg the memo on her facebook page. She said inequality in tech is not due to gender differences, that is a stereotype that persists. We all need to do more. We what they are later for her later from her in this hour. The culture wars brewing within the Tech Industry. Coming up, facebook is bolstering free speech. Their latest move and the impact. This is bloomberg. Emily facebook is doubling down on its efforts to combat hate speech. Staff inadding 500 germany, to crack down on offensive posts. Germanys parliamentary lower house passed legislation, threatening fines, levied on large social networks that failed to report hate speech or remove illegal postings. Joining us now, Caroline Hyde in london. And techonomy david kirkpatrick. Good to see you in person. Caroline come i want to start with you, laying out what is behind the beefing up in staff here. Caroline it is interesting, because you heard as recently as back in may and june of that we would see a beefing up across the world of content control people that would be working on behalf of facebook. They said they would be expanding it by some 3000 new 7500ent control staff, to worldwide. Most of these people work in outsourcing companies. This will be this is happening in germany, 500 added in the west of germany. They already have in 700 in the capital at berlin. They havetioned, hatred for hate speech. They have been tough, legislatively. Backlashfter the sad that arose after the Immigration Crisis that occurred in 2015 2016 and you saw neonazi sympathizers taking the social Networks Like facebook to put their antiimmigration views across. That is why they are focused to tackle this in germany. They also have a key election happening in september. Make david, what do you of how facebook is handling this issue now . David they are trying hard to do the right thing. ,500 sound like a lot of people but if there are 2 billion on the platform lets face it, a lot more than we like, they are saying things that are not very sociable. It is possibly going to take more than that. That is why they are focusing hard on artificial intelligence, comments and maybe these 7500 people ought to look like. Focusing on germany is very smart for them. It is a country, of all on the planet, that are most sensitive to this issue. Besides china, for other reasons. Emily our other countries going to be doing the same thing, will we see this happening elsewhere . Caroline here in the u k and france, we have heard talk of bringing in legislation. This came after the terrible attacks we saw in manchester in andu. K. , and london, attacks over the past few years in paris. We saw france and the u. K. Announced they would do an antiterror campaign. That was announced in june. Much was focused on social network am a facebook. Sheryl sandberg came to the u. K. And spoke to him a rude spoke to amber rudd. We have seen threats of legislation in the u. K. And france. But it is germany that has led the charge. Emily social networks, facebook, google, have thousands of workers around the world, not just dealing with hateful content, but inappropriate content. They have been criticized for outsourcing this work, the hardest work, to other countries, or maybe employees do not have the same protections. What do you make of that . David i have never been a big critic of outsourcing. Jobs are jobs. If capable, people should be allowed to do the work. Does facebook have sufficient control and guidance capabilities over the people who technically work for outsourcing companies . I suspect they probably do. Those people in many cases are extremely talented, welltrained. It is really hard work. It is the kind of work a lot of americans do not want to do because it involves looking at things over and over again, pornographic photos and awful things. They talk about the need to give these people psychological counseling just to do the work. I do not criticize them for using outsourcing firms. Havingcize them for not enough people are taking fast enough action. But they need to try harder, and they know that. Emily what do we need to know about the resources these employees are given and the types of counseling or psychological help they are also receiving . Caroline concrete evidence is few and far between. I went back to the post that announced this hiring in germany today. Three times they mentioned the need for necessary support. They clearly realize there is this concern about, when people are staring into the abyss of human depravity, what kind of support can you give them from a psychological point of view . They will be giving them counseling available. There will be plenty of training available. These have been hired by contractors. How much control will they have . The contractors are based in germany and will be working closely in the network. It is hard to know exactly what kind of support they will have. Emily david . David this shows how serious the problem is. In germany, just in the german language, they will have 1200 of their 7500 people. Think about all the other languages. If they had a proportionate number in every language, it would be hundreds of thousands. Emily it is a herculean effort. Thanks so much for weighing in. Our exclusive conversation with facebook chief operating officer, Sheryl Sandberg. We talk about why companies should have a zerotolerance policy for Sexual Harassment. This is bloomberg. Emily Sheryl Sandberg is going into her 10th year as facebook coo, having made a giant debt in the cultural zeitgeist in her book, the call to action for women. When her husband died unexpectedly, she wrote her second book, option b. She has a new call to action for companies and the leaders as Corporate Culture continues to evolve. Sheryl i realize after i lost steve, how badly we deal with grief. How badly we deal with not just finding what we need for ourselves, but supporting each other. Before i lost steve, i had no idea how to handle a collie going through something hard. I would address it once, i am so sorry for your loss then it would never mention it again. I realized even basic is in trees like, how are you, to someone who was diagnosed with cancer or lost a child, that can seem like a really insensitive question. Emily do you think he is still teaching you or all of us . Sheryl definitely. I try to remember what dave would say, the way he looked at things. It gets harder as the years go on. Situations, specific when i first lost him i face more situations with my kids. I try to remember what he really cared about. I know what he really cared about for me and my children and people in the work lace. I have watched them take on , how people use data to make decisions. I know how much dave would like that. Most of the time i ever saw him on the show was with you. Facte thought about the that when you are sad or angry what nobody had talked about was the confidence lost. People said the kinds of things to me i used to say to people. Like, of course you cannot concentrate with all you are going through. Work was better once my kids went back to school. I had nothing else to do. That really undercut my confidence. Now i have a different approach. I start with, do you need time off . If someone is choosing to be at work, i will not just say, of course you cant concentrate. But i will say, thank you for the contribution. Even the most basic complement can help someone facing a personal crisis, a cancer diagnosis, struggling with something in their personal life, because it tells them you still think they can contribute. Emily i know you have extended bereavement and family leave. How has this shaped facebooks culture . Sheryl it is an important conversation. We need 21st Century Companies that make a 21st century commitment to come to employees. Emily what does that mean . Sheryl our Public Policy is in a bad place. We are the only developed country in the world cannot have Maternity Leave the only one. We do not have paid family medical leave. Countries have an obligation to step into the gap. What is important to understand is, it is not a tradeoff between the right thing to do and the smart thing to do. This is both. I believe it will create a kind of company that will outperform in a globally competitive environment. Have beennow you quietly disseminating this philosophy around corporate openness and talking to ceos. What you tell them . Sheryl we need better corporate policies, parental leave, both maternal and paternal, childbirth, and adoption, equal for men and women. At least four months, and we encourage people to take it. Mark sacrament Mark Zuckerberg sets a great example. And bereavement leave. I did not think much about it until i lost david. We extended even further, we offer 20 days for someone who has lost an immediate family member, and 10 days for extended family members. I have been talking to companies about extending their bereavement leave. Mastercard announced, and surveymonkey have done it as well. I hope more companies will step in and offer substantial and paid bereavement leave. Tech so fast. Ch moves our dads taking the lead they are given . Sheryl one thing we do, we give for months over the first year. If you want to take it all up front as four months that is good. But some people have said, my mother is there for the first month, i want to do it later. One of the way we encourage people to take the full leave is make it flexible. At a carat if you work company or Consulting Firm or company in china, where it might be more difficult to create that kind of culture . Sheryl i have been talking about Emotion Network for a long time. I cry at work sometimes. , sheryl reported as sandberg cries on Mark Zuckerbergs shoulder. That is not exactly what happens. Leave at 5 30 to be home at dinner with my kids. When need to be great motherstors, and wives, fathers, sons. I do not think these things tradeoff, they go together. Someone said, you could not have gotten more publicity if you had murdered someone. It is fair, you probably do not leave work behind at 5 30. The expectations of modern workers are higher than ever. How do employers address them . Sheryl expectations are higher on both sides. You are right, when my parents were in the workforce, there was no internet. You could not work at home, and now you can. Worknot pretending i leave at 5 30 and do not come back again. Of course i do. But i put my kids to bed and then work. He gives me the flexibility i need to be home. We need to communicate well with our employees. Not everything is an emergency. I do send emails late at night. I have a system if it is important, i will read flag it. If not, it can wait. I want to set it up so i can work the hours that make sense for me but not forcing them to stay up late to respond. More we will have much from our exclusive conversation with Sheryl Sandberg. We discussed the companys Corporate Culture and what changes are on the way for facebook. Were Live Streaming on twitter. Check us out 5 00 p. M. In new york, 2 00 p. M. In san francisco. This is bloomberg. Mark i am mark crumpton. You are watching bloomberg technology. Writtens ambassador to the United Nations says the u. K. Fully supports the trump administrations tough stance on north Koreas Nuclear ambitions. We stand shoulder to shoulder with United States. The calling ofn the north korean regime to halt its nuclear program. Theink that we should see president s Public Comments one of the strands of u. S. Activity. He added that the president s aggressive rhetoric isnt hurting any chances for diplomacy. In the wake of international condemnation, north korean authorities a show of collective support for their rejection of the u. N. s latest round of sanctions here it people packed pyongyang for the event. Kenyan authorities are urged not to use force unnecessarily while responding to hurt us of vote rigging. Ofresponding to protests vote rigging. Three people have been shot. Vote counting continues. A spokesman for Paul Manafort says the former Campaign Manager is cooperating with the f ei. With the fbi. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Joined by my colleague with a look at the markets. Paul, good morning. Paul good morning. Lets start with the new zealand dollar, fractionally higher than the greenback. Expecting to keep it there for inflationon a weak outlook. Lookingutures nikkei weak at the moment. Japan post reporting that here in australia, futures are slightly higher as we wait for virgin a straw you to report its result, expecting the fifth consecutive loss there. Supply chainmodity more than nobles market valuation. ,hina mobile first earnings coming. Technology,mberg coming next. Emily i am emily chang. Lets return to our exclusive conversation with Sheryl Sandberg. Facebook is competitive with high benefits for employees. In an age where Companies Already expect so much of their staff, asked her if there is a downside. Sheryl we offer things, but we dont require it. We offer dinner, but we dont require they come and eat dinner. I think companies have an obligation to do with a can for employees and that also means contractors. We did something two years ago which was pretty unprecedented which announced we were going to all contractors amid minimum wage of 15 per hour in the United States and get paid leave. That is something that more companies can do. I recognize the margins we have and we are able to do more. I think almost all companies could stretch to do more for their employees and offer their employees as much as they can. That includes contractors. Emily the economy is changing the way we work, more flexible work. How we do it that on my policy level . Sheryl i think we need to think about leave policies, pay policies, not just for employees, but contractors. We did that and i encourage others to do it. Emily lets talk about sheryl lets talk about Public Policy, only country in the world that doesnt mandate Maternity Leave. It covers about men and women for 12 weeks, reimbursementge reinforcemen and that is the Public Policy we need. Washington state became that fifth state to offer a really good paid leave policy. Them do as much as they can. We need strong, national policy. Apple built a brandnew campus childcare. No Companies Like apple and facebook are for childcare . Sheryl childcare is complicated, because a lot of places arent zone for it and there are long wait list. I have talked to others about how to deal with it, but every company should make sure that employees are paid enough that they can afford good childcare, whether it is offered on campus employeesre here at have the flexibility that when a child is sick, they are not worried about losing their jobs. We know that people who are employees of Companies Like apple and facebook, those companies are more likely to be able to provide those things as opposed to other companies. Bily im curious how option sharing is great, but can sharing hurt more . Sonyl if people ever had a and a daughter, turns out those babies cry the same amount. Women cry more than men, we socialize that. I believe the best leaders and managers do not shy away from a motion, but embrace it weird that doesnt mean we spent all day in a circle with tears. That does mean that when some one has lost a child, how are you today . Im thinking of you. What can i do to help you . At a meeting, are you sure you want to be here . But you know what, you made a great point. Emily there has been explosion of stories about Sexual Harassment in silicon valley. Resigned, uber has are you surprised . Sheryl i am hugely disappointed. The Sexual Harassment has been around for a long time. It is abominable that it is still exists in this day and age. I think it is great that people lose their jobs, because i think that is what will get people to not do it in the future and i think it is a leadership challenge. As the leader of a company, there needs to be no tolerance stop. , for stop full emily what is your advice for uber . Sheryl i think people tolerate what is encouraged and i think a great leader can deal with almost any situation. Put a new policies, your language is different, i am always optimistic. Emily one uber investor said he would die to have you in that spot, and im sure even more now. Why not . Sheryl i love facebook. I love our mission about Holding Community and i love the community that is this company. I get to do one of the things i love with one of my great friends, Mark Zuckerberg, all day. And there are people who can lead companies in ways that dont just prevent Sexual Harassment, because that is a basic. Tech is a male dominated, has it been harder to change the ratio than you thought . Sheryl our numbers are still low for women and underrepresented minorities, and it is a problem. It is hurting us. Diverse teams make better decisions. Our company is more than half women on the business side. On the tech side it remains a struggle. There are 16 of Computer Science graduates today that are women, compared to 35 in the 1980s when the field was smaller. Blacks and hispanics are not represented. In order to higher computer scientists we have to persuade more women and minorities to go into Computer Science or we have a large Internship Program and we hire people of all backgrounds. Earlier in the program we created facebook university, trying to find women and underrepresented minorities who we thought could be great in Computer Science, but were not in the field so we could invest in them. We have a large Computer Science and engineering lean in program. We do it with linkedin and bespoke trying to get women to feel like they have peers right from the beginning. If you go to Computer Science circlef you can be an 11 where you are seeing more women, and we need to do more, because we are not moving the numbers enough. Emily much more of our conversation, coming up. We discover Mark Zuckerbergs latest mission across the u. S. This is bloomberg. Emily with 2 billion global users, facebook is no longer about connecting the world, but bringing it closer together. That is according to ceo Mark Zuckerberg went on tour around the u. S. As part of a personal challenge to visit all 50 states. In our exclusive interview with ceo Cheryl SandbergSheryl Sandberg, i asked about this mission. It is interesting. When i first came to facebook, mark told me he hadnt gotten to travel that much. He started the company before he graduated from college and he realized he hadnt understood and seen his own country. Hasink what he has learned been really important for facebook, because it is helping and form our products. When he rolls out a mission about being communitybased, that was coming from a deep place of experience from what he was seeing was being found and lost in communities. Mark and i, and all of the people that work here, we know we have a big responsibility and we want facebook to help do good in the world. We always have. And i think mark having that direct experience is helping us build the products. Facebookse back mission is to bring people together through groups. Do you think of groups are the future of facebook . Sheryl i think the groups are important. Emily mark s talked about concerns of isolation and nationalism. And groups coalesce around likeminded views and interest. You think facebook is part of the solution, but it is that also part of the problem . Sheryl every technology ever invented has been used for good and also for bad. I think groups are helpful, groups of bring people together on different issues and you actually see a lot of troops that are pretty broad. One woman i met has a Group Bringing women of jewish and muslim tapes together. Muslim faiths together. That is a power of technology. Our user base has a crossborder connection. I think about that in my own life. When i was in high school or college, i didnt know anyone outside of our country. I grew up in miami. I didnt know anybody who grow outside miami. Growing up now, i would probably have a friend from another country. Emily would you consider showing people news or information from the other side of the aisle . What are people that think currently than me thinking . Sheryl we do that. I think facebook i think people worriy that facebook puts you with people with this aim views as you with the same views of you. That doesnt mean everybody is being blasted by other views all day, they are not. But i still think we all can do more to learn more about what other people think and what their experiences are. Facebook is partially blocked in china. Is marks dream of connecting the world, highly unlikely . Facebook remains blocked there. Emily it is said that facebook is more like a government than i company. How does facebook manage the scope of its policy, media, and different response abilities in this modern age . Sheryl we try to do it by empowering local teams. With the policy we have hired local teams on the ground, we have extraordinary leaders around the world and they make sure we understand what is going on in those countries aired we are not perfect. We are trying to address mistakes quickly and correct them. It we are also really investing in community operations. We are hiring another 3000 people to work with our community and hiring them around the world. We want to get policies right, get there quickly, and make sure we are staffed so we can be as responsive as possible. If it Facebook Facebook is more like a government, what is your role . Sheryl we are a company. We have a responsibility to put out a product that enables harmfulo share and keep things from happening. We have a responsibility that ,hen people use our products and they report content, we get to it as quickly as possible. Facebook is pushing forward with artificial intelligence, hiring 3000 people to help moderate content. Ultimately, this is a job that technology might be able to do. What do you see of the impact of automation on workers . Sheryl they have a profound impact, we know that. We used to check in with a a bank or for an airline ticket. Across manyology industries, technology can also be used to grow jobs. We have Just Announced that we have 15 million Small Businesses using instagram, using the power of technology to find their customers and build their businesses. We study our impact on the economy regularly and we care about the millions of jobs we create and we work really hard to help Small Businesses use ,echnology to help them thrive and importantly, not just tech businesses, but all businesses. Emily facebook is making a huge push into video, and many people think it will be to youtube. Sheryl it is about technological advancement. Four years ago you could not post a video. And if you try to watch a video, it would be super annoying. We are making sure people can share content in any way they want. Video is an important part of that. Emily facebook has taken on many of snapchats more important ideas, they say imitation is the highest form of flattery, but do you think there is room for another social work in the facebook empire . Sheryl mobile time is exploding. People are using more and more mobile time, more and more social time here it i remember interviewing for this job and mark saying or things were going to be social. Is happening. There is lots of room for companies to offer services. Emily i have heard you talk about how much you enjoy visiting lean and circles and women talking about challenges want to take on . What do you want to take on . Sheryl i feel fully challenged. Deep ourow responsibility is and i love working with mark. I think it it was important if it helped just one person, then that gives daves life a little more meaning and that has all the meaning in the world for me. Emily . Would you ever run for office . . Sheryl no. Courtney you have been here 90 emily you have been here nine years. What are you most proud of and what do you hope to do . Sheryl i am proud of our people , they believe in our mission, they work so hard to get it right. They correct when they need to Building Products that we are proud of. I think there is a lot we still need to get right, we still need to build iraqs and services that allow people to connect and share in meaningful we build products and services that allow people to connect and share in meaningful ways. Emily thank you so much. That was our conversation with Sheryl Sandberg. I want to bring in our correspondent. I know youre curious to her answers on some of those questions. What did you think . I think there are extremely few Business Leaders that can talk with such sensitivity for human issues. She is eloquent about that stuff. Many other Business Leaders have written two books about social development for women and emotional reaction to a death . She is an unusual person. She has this is a company with two leaders with a very sophisticated high values that are in usual in business, period. You try to get at in the interview, it is a unique entity with scale globally and a challenge like no other business has ever really had. I dont think they even know how theyre going to handle that, but she is an extraordinary later. Congratulations on a great interview. Emily thank you so much david what wall street wants to see from snapchat coming next. This is bloomberg. Emily the. Company of snapchat has taken investors for a wild ride since its march public trading debut, what does wall street want to see . , take a look. Growth over the last six quarters has stagnated. Also adding to the apprehension, instagram. Snapchatspied stories feature, it has been able to grow even more quickly. Instagram has surpassed snapchats users, that milestone added fuel to concerns whether snapchat could compete with a juggernaut like facebook. Shares have plummeted over 20 since the debut. What will they have to do . They need to reaccelerate the daily average users growth. The same thing with twitter, if the users decline, stock will decline. They have rolled out a selfservice advertising solution, they need to do that to get more advertisers on the network and cause their ad revenue goal to stabilize. It doesnt appear they are prioritizing user growth, they seem to be focusing on quality rather than quantity. Therefore, that would allow sales to go up even if its user base doesnt significantly increase. That havent been enough to convince wall street to measure it any differently than facebook. On thursday, sheryl, we will have complete coverage and analysis of snap. That does it for bloomberg technology. This is bloomberg. We will see you tomorrow. From our studios in new york city, this is charlie rose. Charlie welcome to the program here at we take note of a story we will have more on tomorrow night. North korea has more advances in Nuclear Capability and President Trump fired back saying we will unleash fire and fury if they endanger the United States. Korea us notnorth make any more threats to the United States. They will be met with fire and fury like the world has never seen