Officer. How they plan to double the number of female employees locally over the next five years and why they are setting targets in the middle of a media firestorm. Libra is not getting love from lawmakers. Add Jerome Powell to the list. Sponsorsthe project Public Benefits including Financial Access for consumers, libra raises serious concerns involving privacy, Money Laundering and financial stability. These should be publicly addressed. Facebook has a couple billion plus users so for the first time you have the possibility of a broad adoption. If there were problems associated with Money Laundering, terrorist financing, many things, they would immediately, they would rise to systemically important levels because of the size of the network. It cannot go forward without there being broad satisfaction with the way the company has addressed Money Laundering, all those things. The number of concerns i listed at the beginning, data protection, consumer privacy, or need to be addressed thoroughly and carefully in a deliberate process that will not be implementation. Futurewe discussed the of the currency. Skepticism gets to the general skepticism about crypto, which you heard jay powells two cents on that, plus the fact that facebook has so much power. That is something we have been reckoning with over the last couple years. Huge user base, they can push new products. If they aggressively tried to push people into this currency, that could create issues. Emily powell is talking about libra posing a threat to the Global Financial system and at the scale of facebook size any problems would be magnified. Is he right . Joel listening to him, i was struck by this is something that is on his mind. Lawmakers asking him. In the past, when it comes to blockchain, cryptocurrency, other endeavors like this, you get the impression they are like, this is something we are watching. This is more than that. There are a lot of efforts to understand what they are doing. There are reasons for them to be concerned, beyond the systemic nature of it, it raises questions of, you know, if this is going to be a much more efficient way to transfer money from persontoperson around the world, how can you really do consistent with banking and payment regulations in all these countries . There are legitimate reasons to go slow to make sure this isnt some sort of regulatory arbitrage to get around existing rules of payment. Emily even though jay powell and the fed are taking their time in examining facebooks plan and cryptocurrency in general, it seems not all lawmakers understood exactly what they were asking about. This was an exchange between david scott and the fed chair. This libra business is really disturbing. I think we all know, libra is the london interbank offered rate. Very critical. It is apparent libra was going to leave us, or being removed, the potential ramifications of the end of libra, as the schedule nears. You said it well. There are 300 trillion plus well representing libor. Laughing at himself a little bit. Can we trust lawmakers understand what they are supposed to be regulating . This came up during Mark Zuckerbergs testimony. Supercuts and out of left field questions. Facebook will try to use that and say, d. C. Doesnt know what they are doing. The fact that people are confused by this and yet it affects billions of people suggests we should all be educating ourselves more closely. Emily your reaction . Joe it was a funny moment. The question about libor and the replacement is interesting. I have sympathy. How many people have you interviewed who are in tech or maybe even describe themselves in blockchain or crypto or bitcoin that cannot articulate what makes the tech compelling . It should be worrisome. It is a case for slowing down. Think theyreies going to reinvent the Financial System while lawmakers are still struggling to wrap their heads around what is, these kinds of exchanges, say, slow down. Regulating,ing of who has the authority to regulate cryptocurrency . The fed . U. S. Regulators . There is a real morass in the u. S. The fed will have a role. Libra will interface with banking. Governmentbe yielding bonds held in regulated Financial Institutions that back libra so the fed will have a role. If it is going to be global currency, they will have to deal with regulators in every country at some level in which they want to up rate which is why part of the appeal may be regulatory arbitrage. Wonder if the crypto approach is a shortcut around banks. It is a good reason to be concerned. Up, the president holds a social media summit, only it was missing the social Media Companies. Marsha blackburn attended. If you like bloomberg news, check us out on the radio, the Bloomberg App and sirius xm. This is bloomberg. Emily federal Appeals Court said tuesday president cannot block his credits critics on twitter. This upholds an earlier ruling. Trump wasnt the only politician affected by the ruling. Oc was suederdict, a by people she blocked on twitter. The Trump Administration hosted a closed door social media summit at the white house on thursday. Led as a gathering, but heres the catch. Google, facebook and twitter were not invited. It was a group of internet personalities and conservatives, echoing president trumps complaints that social media silences conservative voices. My biggest take away from the meeting is, you have a lot of people who utilize social media to get their message out and communicate their stories and what they are tired of is seeing social media pick and choose what they want to promote, what they want to prioritize. They feel like there should be a neutral platform. They are forward to having congress do more work on this. Theyre looking forward to the white house turning more attention to the issue of big tech and fairness in these platforms. Emily facebook, twitter, companies were not invited. How can you have a productive meeting without the companies . Actually they will be included later. What the president did today was to hear from people who utilize social media. One of the things that is so important now is that individuals do not sit down every day and watch the news at 6 00 and 10 00. What they do is to build their own network of different sources and channels, sometimes streaming, sometimes cable, sometimes notifications and alerts on their mobile device, and they have built their own network. What they want is fairness. They dont want one of the Search Engines going in and prioritizing everything in that feed. They want to have access to fair news. They dont want opinion journalism. They want facts. When you have individuals creating that content, it is important to hear from them. I understand and as the president said today, he is going to invite these social Media Companies to come in and have a meeting and that is something that is taking place in the next few weeks. White house will have the date soon, i am sure. They will have the opportunity to talk about what they are doing. One of the things of concern to us is how some of these companies manipulate algorithms. That pushes forward certain content, then diminishes others and is the exercise of a form of bias. That the you think pressing of conservative views, which is what you and other lawmakers have been complaining about, do you think that is deliberate or inadvertent . When Mark Zuckerberg was before us, when i was in the house, one year ago, i asked him the question, do you subjectively manipulate your algorithms . His response was, contain the information. People live in Northern California that work with us and they bring their worldview to work. Ai ands we move toward Machine Learning, the bias of these algorithms is something of concern to us. Not only when youre talking when younions but also are looking at how Machine Learning will be self replicating. Emily some of the folks in that room have been accused of posting racist remarks, antisemitic remarks, spinning consider these theories on social media spinning conspiracy theories on social media do you think that should be left up on social media . Of course not. There is no place in Civil Society for that conduct. Just as, there is no place in a Civil Society for some of the postings that take place that are offensive or suggestive or harmful to children. All of these components for social media, is speaking specifically to the reason why we need to put guardrails in place for social media. Emily you have been calling on snap to take action to prevent, as you wrote in a letter to them, more children from being exposed to sexual predators and explicit adult content while using snapchat. Messages on snapchat disappear it is a child predators dream, is the way you put it. What your main concerns about them in particular . Number one. Ratings. 12yearolds,r what is taking place on snap, where the auto delete feature on those videos, there are cases where predators, child predators, pedophiles, have been arrested, convicted. They have used snap to coerce and ensnare children, threatening to put their video on social media unless they send more videos. This is something parents need to have the tool to turn this off. There needs to be explicit instructions for parents how to handle this. Emily that was tennessee senator marsha blackburn. Closes its 34 billion deal with red hat. Our conversation with the ceos of both companies on the second largest tech deal ever. Facebook attempting to drastically increase minority representation in its workforce. How the social Media Company is tackling its diversity problem. This is bloomberg. Emily ibm has closed its purchase of red hat, finalizing the second largest tech deal ever. One synonymous with mainframe computing, it has been struggling to adapt. The company is playing catch up to amazon and microsoft in Offering Software and services over the internet. David westin spoke with the ceos on tuesday. It is important to our clients. It is the destination for the cloud. People think everything will move to one public cloud. That is not what we see clients need, want and are targeted to. It is the idea of existing estate, i will modernize and i have five to 15 private clouds already and if i modernize an app, i will put it where i want and i have to manage and secure it. That is the destination. For the next generation, we now give them a platform between red hat and ibm that runs on any public cloud, private, traditional, they can write an ,pp once, run it anywhere secure and manage it. That is the hybrid cloud. That makes us the leader. Others talk. They may have just a connection between public and private cloud. This now allows us to be multicloud everywhere. David you have other competitors in the cloud. People like amazon and google. Is the goal to catch up to them . Component,red hat our goal is to be a better partner with clouds. They are great partners. Our Software Runs on premise, ibm, those clouds. They will continue to be great partners for us. As we are capable of moving many more workloads onto our software platform, that is more workloads those clouds can address and run. My conversations with the major clouds have been positive. This is an opportunity to get more workloads out of datacenter running on cloud. That is an important reason to do this. Our clients want to run a platform anywhere. Up ibmyou have ramped percentage of revenue from the cloud dramatically, 4 to 25 in a short time. What is the goal . Ginni there is not an ultimate goal. 80 of work will move to the hybrid cloud. This will continue. When we look at revenues, it transcends everything from public, private clouds, now these platforms will be on other clouds included and services revenue. The goal is to move with the same journey our clients need it to move with. David what about moving with the overall size of the cloud expanding . How much will be taking market share from other providers . Ginni look. 200 basis points of Revenue Growth over a fiveyear period. Ibmimportant part is, the public cloud and the private cloud together should be the very best for missioncritical work. We also want our platform running everywhere else. Growth anywhere is going to be good for ibm. Jim this is all about helping clients provide more value to customers. Builds a new application, website, mobile application, opportunities for us to participate in building the app, integrate it with data, run on the platform, run on the ibm cloud, any of those components are areas of incremental value we can participate in as customers create more value for their customers. We continued our discussion of the megadeal with olivia on tuesday. Think about ibm. 108yearold American Icon that has largely been known for the mainframe cycles. In the last couple years they have in trying to reinvent. This acquisition is ibm trying to reenter the cloud space as a different company. It is trying to transform what it has been providing so far. Change the game. Call this ad ginni game changer for ibm. It is important to think about why this is going to be so significant. Not only ibm but for the wider cloud space and also for other providers like amazon, microsoft and google, who will now be seen as partners to ibm rather than rivals. Emily interesting. What are the risks to the new strategy . What could go wrong . Olivia one of the biggest risks is whether or not red hat will be able to fold into ibm. This company is known to have a staunch and oldschool corporate work culture. Will this open source lenox providing Company Called red hat, being known to be a renegade and revolutionary in the space, really be able to come into the ibm family . We heard ginni and jim talking about how within the acquisition, red hat will remain independent, a distinct unit, within ibm. It will have its own consulting services, sales, terms and conditions. Red hat Leadership Team including jim, will remain within red hat. They will be able to talk to their own clients rather than through ibm. They are hoping that in order to maintain red hats independence, the integration will really work seamlessly. Usey we have heard ginni the words hybrid cloud before, in fact talking about it for the last several years as they have tried to navigate the transition. Froms this different microsoft, amazon . Providethey all different Public Cloud Networks that have particular strengths. Amazon strength is Infrastructure Services or salesforce, cloud strengths, Customer Relations management platform. You see companies that are buying into the services and using clouds for different reasons. What ibm is attempting to do is to become the glue that will stick together or connect all those different clouds onto one platform. You may be a company that needs to use salesforce for a particular reason and amazon for another reason. That means you may end up with up to 15 different cloud providers, all operating independently in different silos. You have no way to bring them together. Ibm is hoping it will be able to become the connective tissue that aligns all the different clouds under one platform. This idea, this strategic move, to become partners with some of these former competitors, like amazon, microsoft, google, is what ibm actually did in the 1990s regarding the Global Business services platform. It partnered up with Software Providers and said, we will allow you to run your applications smoothly on our hardware. We will partner with you rather than compete. That is what saved the company. They are trying to do the same thing again. Emily coming up, facebook has ambitious plans to improve diversity. Are they realistic . The global chief diversity officer tells us how they are planning to boost numbers, next. This is bloomberg. Emily welcome back to best of bloomberg technology, im emily chang. Facebook set to boost diversity. The Company Announced plans to double the number of female employees globally over the next five years, as well as the number of black and hispanic employees in the u. S. The Company Wants half of the u. S. Workforce to be from underrepresented groups by 2024. We sat down with their global chief diversity officer, maxine williams. Maxine there has been Research Done by credible institutions that having goals is one of the ways you have change. Goals makes a difference. It is one of the five things you should be doing. We want to do what is best practice. We have been building for the last six years, the muscle, strategies. Some things have worked, some have not. We are in a place now where we have that muscle to release these goals on top of it and boost further. Emily you are looking to change numbers. 5050. Do you have secret innovative plans that we do not know about . Maxine i wish. I wish. I would never work again we do not have a secret plan. It is not magic. That is hard work. Consistent attention. Every day deliberate. It doesnt come about through some organic weird thing. We are designing deliberate interventions. It is getting better. Hope itgoals, we is going to be hard. Those goals are stretch goals. Thatnot saying we will hit but everywhere in business reset goals. We will push on this to get as far as we can. Emily facebook numbers are average compared to tech. I get asked, even with Sheryl Sandbergs leadership, a leader on womens issues in the world, why cant even facebook to better . Better . Maxine there is a lot of stuff we own and we double down to adjust that. Is there bias in the workplace . How do you evaluate people . Is there fairness . How do you consider promotion . Emily there is unfairness . Maxine everywhere. Humility is important for every company, every group of people. We are not special. There is no fairy dust we sprinkle