this is business live from bbc news, with rachel home and ben thompson. advertising a slowdown, global giant wpp misses targets as big companies pull spending on adverts. live from london, that's our top story on wednesday 23rd august. consumer giants are cutting their ad spend with wpp, but is it a sign of economic weakness orjust a symptom of the shift towards digital? also in the programme, typhoon hato causes havoc in hong kong, leading to hundreds of flights being cancelled and a stock market suspension. and on the markets... we have the ftse 100, down, the wpp we have the ftse100, down, the wpp share prices down already tempers and this morning. we will bring you all of those figures in a moment. and we'll get the inside track on the cost of keeping fit.

we meet one man flexing his financial muscles — and boosting his gym empire in the depths of a recession. and with the global fitness industry now worth a staggering $83bn a year we want to know, how much do you spend on keeping fit? just use the hashtag bbcbizlive. hello and welcome to business live. wpp — the world's largest advertising group — has cut its sales outlook, after a drop in demand from consumer goods clients and weak trading in the us. like—for—like net sales fell 0.5% while underlying net sales in the us fell by 2.2% in the first half of the year. shares in he giant have tanked this morning , falling by around 10% on the news. the advertiser is seen a bellwether for an industry that's changed dramatically in recent years. while the total spent by brands globally on advertising in 2016 was up at $493 billion, where it's being spent

is shifting significantly. while traditional advertising sales were effectivly flat, global digital ad sales grew by 17% to $178bn. that number will of course keep growing, and by 2021 it's estimated it will account for 50% of all adverts. so where are those dollars going? well, mostly to facebook and google, together they control 54% of the global digital advertising market, up from 44% in 2015. but are adverts on these platforms even getting to their audience? it's been estimated that invalid traffic, that's where a bot rather than a human views an advert, is costing advertisers a staggering $16.5 billion a year, and that number is expected to grow. well, a little earlier i spoke to sir martin sorrell, the ceo of wpp who explained what his company was doing to combat issues like this. there are a couple of points here.

first there is the bots issue, that these ads are not being watched by people but by machines and we are ever vigilant on that. group m, our media planning and buying company, which buys about $75 billion of media around the world, about 25% of worldwide media that goes direct to agencies, or goes through agencies. they have very high standards, in terms of viewability, measurability to try and counter that. and then there is the consumer brand safety issue, which you are sort of referring to, which is that some material might end up in less than satisfactory, to put it mildly, areas 01’ satisfactory, to put it mildly, areas or parts of the internet. and thatis areas or parts of the internet. and that is an area it has become even more important, fake news and fraud also becoming important. and that is also becoming important. and that is a question. you can't be 100%

certain that you can cover this, that you can be much more stringent, in terms of the rules. facebook, for example, and google have made strenuous efforts recently, under some pressure to do so, but they have made strenuous efforts recently, and they dominate digital advertising. with us is stephen woodford, chief executive at the advertising association. there is a lot for us to get through in these results but first of all it is worth living at what advertising tells us about the wider economy, because it is one of those things we call a bellwether, when advertising is doing well, the economy tends to do well, and vice versa. so what does this tell us about the economy? when you look at the contribution advertising makes to the economy it isa advertising makes to the economy it is a very important bellwether. it has a big impact on the overall economy, as well as being a big sector in its own right. 0ne economy, as well as being a big sector in its own right. one of the things we should think about it is 2016 was a record year for the

advertising industry, particularly in the uk. 2017, we are still forecasting some growth. why was 2016 so good? it was surprisingly good because in effect all of the brexit scare stories did not serialise, the this is where it feeds through to the bellwether, because business confidence in a sense determines a lot of advertising decisions, so it is businesses's expectations of what consumers will be doing. what do you think that these figures we have seen from wpp? the markets are surprised, the share price has fallen by over 10% this morning. were you expecting the sorts of figures from wpp? i think we were, in terms of potentially less organic growth may have had in the past but i can't really comment on the share price fall, but i do think it is worth saying about wpp, it is the world's leading company so it is a

very good bellwether for the global advertising industry, and it is also advertising industry, and it is also a reflection of the british advertising industry, how many industries is the world's biggest company a british one? i think wpp is something we should be very proud of here in the uk. if it is a bellwether, does it sound the alarm that they are growing their growth predictions, sales have fallen, problems in the us?” predictions, sales have fallen, problems in the us? i can't comment on the detail of that but i think there is overall a potential softening of demand because of the overall global economy. that being said, if the us carries on performing strongly i would expect advertising to rebound. certainly in the uk at our expectations are low growth but still some growth in line with the economy. if you look at an organisation like wpp, traditionally made a lot of its money from tv and big billboard ads. clearly that has now changed and it is now digital. you might say a integrated agency

that can do online, print, big posters and tv is commandeering the market. where is the growth coming from? digital platforms in particular, and the piece before talked about the growth of google and facebook. but it is worth saying all advertising media is going digital. even the oldest media, posters, is not for the 5% digital, in terms of digital outdoor display ads and so on. the industry, television and radio and press is going digital. this year, digital reve nu es going digital. this year, digital revenues up going digital. this year, digital revenues up by 25%, a quarter of all of their advertising revenue. even press is very strongly going on the digital channels, so i think the whole industry is changing towards more digital channels. this dominance from facebook and google, when it comes to digital advertising, can you see anybody is coming in in the future and taking any share off them? it is hard to predict the future. the rise of

other platforms, google and facebook will fear most new platforms coming, whether it is amazon or others. it isa whether it is amazon or others. it is a strong overall indicator of the health of the market is the balance between these two things. generally, advertising works best when you use advertising works best when you use a multiple of channels, ideally for the five different channels. tv on its own can be very good, digital on its own can be very good, digital on its own can be very good, digital on its own can be very good, when you use the two together you get better results. the best advertising tends from using brand building advertising and short—term advertising, which is usually digital. you have an update on the wpp share price, you saw it on the screen, it is down 149 points this morning, more than a 10% fall in the share price in the first 38 minutes of trade for wpp, so investors not to thrilled. in hong kong, the city's stock market has been shut down

and flights have been cancelled by typhoon hato, which has been battering the financial hub. sharanjit leyl is in our asia business hub. what impact is that storm having on the financial markets, they have been shut, schools and businesses shut, what impact will that have on the city? you pretty much said it, all of those things are shut down. hong kong has come pretty much to a standstill. the typhoon really a category eight storm, down from category eight storm, down from category ten, which means the struct of winscombe huge waves, uprooted trees, flooded streets, closed businesses. no trade for the hang seng. we know it is the worst storm the special administrative territory hasn'tjordan silk —— since 2012. more than 400 flights have been cancelled and cafe pacific said the storm would severely impact flights.

we are told only one flight managed to land earlier this morning. now the schools are closed, all of the skyscrapers in hong kong's iconic skyline are shrouded in darkness, as workers stay home. bearing in mind it had been a category ten typhoon warning initially and this was really only the third time one had been issued since 1997 when the former british colony was handed over to china. even though the territory suffers the storms on pretty much an annual basis, this one may well be bad enough to have an impact on businesses and the economy. thank you very much. let's take a look at some of the other stories making the news. chinese car—maker great wall motor has said it has not held talks with fiat chrysler, putting a possible bid for itsjeep brand in doubt. great wall confirmed it had researched the us—italian car—maker but made no substantial progress towards a deal. on monday, the car—maker

expressed interest in buying some or all of fiat. shares in the chinese firm fell 2% in shanghai after the announcement, before recovering slightly. amazon's blockbuster deal to acquire whole foods market for $13.7 billion will face a milestone this week. whole foods shareholders are voting today on the deal, which would propel amazon further into the grocery business than it has ever been. the size of the gender pay gap in the movie industry has been laid bare by forbes. it estimates the top ten actors earned $488m last year — three times theirfemale counterparts — who took home $172m. transformers star mark wahlberg tops the male list at $68m, compared with $26m for la la land's emma stone. let's look at how the markets have been getting on. markets in asia

generally upjust been getting on. markets in asia generally up just a little, following a surge they saw yesterday running with a bit of optimism over us tax reform plans. the hang seng is actually closed at the minute because of typhoon hato, so that is why it is flat. wall street, the dialup why it is flat. wall street, the dial up almost 8%. an even higher rise on the nasdaq. much more attention will be on the central bank meeting duties. tomorrow. will the federal reserve boss give any plans about the bank's plans to wind in its huge bond holdings? we will talk about that in a moment. let's see european markets have been doing, the ftse is down ever so slightly. wpp share prices down more than 11% now this morning. future growth down from 2% to between zero and 1%. in europe, central bank

chief, the ecb chief, mario draggy, he is going to speak today. investors will be looking to see what he says. let's go to wall street and michelle fleury. when hewlett—packa rd street and michelle fleury. when hewlett—packard split street and michelle fleury. when hewlett—packa rd split into street and michelle fleury. when hewlett—packard split into two companies, hp ink which has as its printer and copier business was considered the runt of the letter. investors saw for growth opportunities in the enterprise side but hp think has surprised many, in a good way. —— hp ink. given the lacklustre pc and printer market, profits are likely to fall. look out for more news on america's housing market. recent data shows house prices have recovered. the latest figure is expected to show an increase in july figure is expected to show an increase injuly but investors are watching the signs of weakness. so

well concerned over a looming slowdown hurt profits at home improvement retailer, lowes, which shows its second—quarter results. joining us is james quinn, business editor, telegraph media group. we spoke about wpp at the start of the show. is this a shock?” we spoke about wpp at the start of the show. is this a shock? i think it is one of those bellwether stocks. if you look at the global economy, pretty stark words from martin sorrell earlier. i think it isa martin sorrell earlier. i think it is a surprise, yeah. possibly an element of surprise. the share price will probably end the day six or 7% down. when a company share price drops this far, this fast, will you now see people going, let's by a bargain? there will be some bargain

buyers looking for activity. it is august. a lot of traders will be away. a lot of problematic trades kicks in there. then real—life traders return. sally is not here today. she gets very excited about the central bank action. i will play that role. we will hear from mario draghi today. what we expect from mario draghi? she has started speaking while we have been on air. he is largely talking about monetary policy committee regulation. not talking too much about tapering. the initial reaction was quite muted. at the same time we have strong numbers from germany today showing how strongly the german economy is growing. that is quite interesting in terms of what he and janet yellen will talk about. i think she will avoid talking about tapering. her

speech will focus on financial stability. the speeches are analysed to the nth degree. on the on this programme can we talk about someone making a speech to avoid something. we will talk more in awhile. for now, thanks. still to come, the business of fitness — we hear from the man who's bucking an economic slowdown and running one of the world's most successful gym chains in south america. you're with business live from bbc news. identity theft has hit new record levels, according to the fraud prevention organisation cifas. it says nearly 90,000 cases were recorded by the group in the first half of the year, with young adults the most likely target. the bbc‘s personal finance reporter, kevin peachey, is looking at the numbers. kevin, what do the numbers tell us?

they show that cases went up by 5% in the first half of the year. that ta kes in the first half of the year. that takes it to 500 cases a day. name—macro says it has reached epidemic levels. —— theresa may. it is not the old and vulnerable. it is people in their 30s and 405. people people in their 305 and 405. people with a digital footprint to have been online are social media and so their identities have been stolen. what can people do to prevent it? is it as simple as constantly changing your password? there is an element of that. some people don't realise they have been victims because the fraudster5 have taken out a loan in their name. they are getting their details from public records and the dark web, part of the internet that i5 dark web, part of the internet that is not available on a conventional search. so cifa5 say5 is not available on a conventional search. so cifa5 says yes, people should be changing their password5. they should be using... employers

should be educating staff on how to keep on top of fraud prevention and making sure they are changing passwords and keeping safe online. what is really interesting is that young adults are the most likely target. when we think about online fraud, we thought maybe it was older people? absolutely. the over 60s are the only age group cases are going down it is coming up the fastest among 20—year—olds. that is clearly because they are part of social media. they have a strong online presence. the 305 and 405 are where the most cases are overall. thank you, kevin. go and change your password. there is an interesting story on the business live page. the new heathrow boss slamming —— the former ba boss slamming heathrow over its new runway. he says the plans are not credible. sir rod

eddington is advising a rival scheme proposing an alternative to the ru nway proposing an alternative to the runway at heathrow. nonetheless, he knows what he is talking about. this claim will have some weight. that is on the website. you're watching business live. our top story — the world's biggest advertising group, wpp, has cut its sales outlook, following a drop in demand from consumer goods companies and weak trading in the us. let me show you what the markets are doing. wpp one of the big fall is so far. currently down almost 11%. investors somewhat surprised by that lowering of the growth forecast. that is probably why the ftse 100 that is probably why the ftse100 has tipped into the red. the pound weakening once again over the course of the week. that has been a continuing trend stop

and now let's get the inside track on the fitness industry... globally the industry was worth $83.1bn in 2016, and it continues to grow, specially in europe and the usa. latin america has seen slower growth, but 20 million consumers there use more than 65,000 health clubs. in brazil, one man has been defying all trends. edgard corona's smart fit now has 365 gyms across the continent. the bbc‘s daniel gallas metup with him in sao paulo. he began by askinghim how he has expand the business in the middle of a severe recession. the whole idea is that —— at the beginning is less divine. when we wa nt beginning is less divine. when we want uniforms, we chose fashion designers. it is a very important factor. everything together. the system that you provide, the

programmes that you create, help us to be different from the market. if you are in the us, from the total number of members, you have 70 weight percent in this business. —— seven to 8%. the people come. what makes members stay is the right process to deliver results. what we are looking for and trying to improve his results in a short period of time. so the great value that you have is time. if i ask you to exercise two hours a day, you will say, i don't have this time. but you can come here three times a week, 30 minutes. increase your metallic —— metabolism speed, reduce your weight, improve your health. you will see a healthy, more

beautiful, thinner... a lot of people say that brazil is a very ha rd people say that brazil is a very hard place to do business, that it is risky to invest here. why do you do itand is risky to invest here. why do you do it and how do you do it? for sure, maybe it's not an easy place to do business. but in brazil, everything that you do, regulations, regular tories and everything, is very, very tough. a lot of laws, a lot of rules to improve people's lives. and most expensive. maybe latin americans understand how to work in this kind of environment. expanding ina work in this kind of environment. expanding in a downturn. some

markets are expanding in a downturn. some markets a re pretty expanding in a downturn. some markets are pretty resilient. we have been asking you how much you would spend on keeping fit. amanda says walking and housework are free. ed says, how much of that £83 billion, it's actually dolorous, is made up of multiple gym memberships going on used? jerome says he pays £90 per month, which is £300 for every swim he takes. samantha says £85 on running trainers, worth every penny. good trainer is important. andrew says youtube provide advice for exercise at home. lots of free online sessions. jim locations are very smart these days. mine is next toa very smart these days. mine is next to a kfc and a mcdonald's. it is a vicious circle. james quinn is back with us. there is a really nice

story in the guardian. poor and overpriced funfair rides could be closed under new rules. there is a shining light on this, we may get better rides? that's right. the competition authority has decided to look at this sector, questioning whether when one funfair comes to a town, whether another one can, the same time, whether pricing too high. they are really expensive. if you wa nt to they are really expensive. if you want to go on the merry—go—round, it is $5, $6. yes. some pricing is in question. the showman ‘s is $5, $6. yes. some pricing is in question. the showman '5 guild of great britain, the governing body of the funfairs, has said, yes, we agreed. maybe some of our practices are not up to scratch in the modern era. let's wrote in the new york times. apple plans for a self

driving car. it is a crowded market. it seems apple has decided they will put their technology to use in a self driving car. apple's headquarters is in silicon valley in the us. they will try this technology in a shuttle bus that ta kes em ployees to technology in a shuttle bus that takes employees to work. that is a risk! it is slightly different to testing and iphone! good to see you. thank you james. good —— thank you for all your comments. really interesting when you talk about how much the fitness industry is worth. 83 billion dollars a year. it is all the gear, everything. that's it from business live today. there will be more business news throughout the day on the bbc live web page, and on world business report. bye— bye. good morning. it has been a pretty

wet night across northern ireland and scotland. i am hopeful of the weather improving from any today as the rain band clears, you can see the rain band clears, you can see the front which is draped across northern parts of the british isles, bringing a lot of cloud and heavy rain this morning. much of the rain is across northern and eastern parts of england and scotland as well. that rain band will gradually push its way north through the day. sunny spells behind it. a lot of dry and bright weather to look forward to in england and wales. the odd isolated shower in devon and cornwall. east anglia and the south—east, dry and humid weather. temperatures at 22 celsius. across the midlands and wales, sunny spells, the odd isolated shower. more showers likely for northern ireland this afternoon. sunny spells in between. a better

and across western parts of scotland. some sunny spells developing before sunset. as we head into tonight, gradually that rain band will push its way north and east. a lot of dry weather to look forward to tonight. some starry skies. few showers in northern ireland, parts of wales and the south—west. further east, dry and feeling less muggy than night. the pressure chart for, showing high pressure chart for, showing high pressure to the south, no pressure to the north—west. the further north and west you are, it is likely to be and west you are, it is likely to be a bit more unsettled. tomorrow is a day of sunny spells and scattered showers. much of the showers across northern ireland, western scotland, england and wales. further east, dry with good sunny spells. temperatures responding to the sunshine, between 17 and 22 celsius. it will be breezy along western coasts tomorrow afternoon. 0n

along western coasts tomorrow afternoon. on friday we have some sunshine. the best of the brightness across east anglia. further west, more cloud and rain coming in to northern ireland and western scotland. temperatures ranging between 17 and 24 celsius. the weekend is a mixture of sunny spells and showers. the best of the dry weather on sunday. wet and windy on bank holiday monday. hello, it's wednesday, it's nine o'clock, i'm chloe tilley, welcome to the programme. a charity worker who helped expose the sexual exploitation of vulnerable children in rotherham talks to us exclusively about the stress of a long—running investigation in her role and tells us the focus should be on helping those still suffering. i've had a couple of calls from people in the community who this is still happening to their children and daughters and just reaching out and asking for help and support. we will bring you that full

interview after the news. also this morning — prince harry tells the bbc he's very glad he walked behind princess diana's coffin at her funeral 20 years ago, but says he still can't forgive the paparazzi. i think one of the hardest things to come to terms with is the fact that the people that were chasing her into the tunnel, were the same people that were taking photographs