this is business live from bbc news with rachel home and sally bundock. cue the big money. music streaming giant spotify heads for the new york stock exchange. but will it find a place on wall street's playlist? live from london, that's our top story on thursday 1st march. (titles) could spotify really be worth $23 billion? the swedish music streaming giant is listing in new york in an unconventional way. we'll tell you all you need to know. plus how to get ahead in advertising in the world of google and facebook. why the giants of the industry could be losing their gloss. asia and the us were down and europe is following the trend. we'll keep you updated with the figures. also in the programme: the world's

biggest advertising agency wpp said 2017 wasn't pretty. i was talking to this man, sirmartin 2017 wasn't pretty. i was talking to this man, sir martin sorrell, the boss, and you can hear that interview saying that social media is an opportunity rather than a threat. as spotify prepares a market flotation, we are asking if streaming is good or bad for the music industry. does it help newer artists or stop them getting paid? has it changed the way you discover music? tell us your streaming experiences using the hashtag. welcome to the programme. we start on wall street where spotify could soon be joining the ranks of multi—billion—dollar technology companies. music streaming service spotify has revealed plans to list its shares on the new york stock exchange.

spotify is the market leader in streaming music to mobile devices and computers with some 160 million users. its revenues jumped well over a third last year to almost $5 billion. some believe the company could be valued at as much as $23 billion. but although it is growing fast it has yet to make a profit. joining us is sonja laud, head of equity at fidelity international. it is always good to see you. there has been a lot of anticipation and rumour that spotify would come to market and it has finally made that announcement. it is doing it in an unusual way. talk us through the way it is coming to market. yes, it has opted to use a rather direct way, allowing private shareholders to list their shares on the new york stock exchange. you have got to put this in context. this is a company thatis this in context. this is a company that is very well known and as such

probably assumes that it can avoid using the road show, the classic techniques on how to come to market. does this also mean it is more of a level playing field for those who want to get a bit of spotify when it lists? the investment banks won't have such a hold on the shares when it comes to market. yes. the way the price discovery mechanism works is that it literally depends on the buy and sell orders that come in on the day, which is very interesting. the only caveat i would put in is if you look at the ranges of valuations that have been put out there, they are actually quite broad. you mentioned 23 billion but it starts from 6.5 billion and that is based on prices that have been paid for their private shares in the private exchange of shares. that is a question, particularly if you are a private investor and you can't use the expertise of somebody looking into the business model to determine what the valuation should be. i

would be quite mindful that there could be huge fluctuations on day one based on this. let's talk about the figures. we talked about spotify joining the ranks of the big tech companies that floated. snap, facebook, twitter. the difference with spotify is they have got paying customers. but they have not yet made a profit. exactly. this is where the important part is. the business model is well understood, i think. this is why they assume they can go straight to market because it isa can go straight to market because it is a very transparent business model. they have paying users and they are widely recognised around they are widely recognised around the world. but as you quite rightly point out they have not yet made a profit. this is the crux to find out the trajectory. when do they seem to break even and when to make money? is this in terms of expansion and the catholics plan? there may be good reasons but there could be warning signs will stop why don't they make a profit? i remember when facebook came to market they were

not making a profit and there was euphoria around the listing and not long after that, the shares started to fall quite a bit because people are trying to read between the lines about how it would make money. now that company is making a lot of money. absolutely. it is all about having a good feel for what you think the trajectory will be. you have got to keep faith that what you think it will be is going to materialise. you are buying into a loss—making company, so you have got to understand what needs to happen for this company to be profitable one day. for now, thank you. you will return later and you will add more value to some of the stories out there in business news today. let's take a look at some of the other stories making the news. malaysian airline airasia has sold off its aircraft leasing business for $1.2 billion. the deal is part of its efforts to sell non—core parts of the business, allowing it to cut debt and offload the financial commitment of owning planes. recently it has also sold its training business and ground handling operations. airasia will now lease

back dozens of planes from the new owner of the aircraft. exxon mobil says it is abandoning joint ventures with russia's rosneft, signed while secretary of state rex tillerson was running the oil giant, citing us and european union sanctions. it's a major turnaround for the company which had long argued against the sanctions imposed in 2014 over russia's invasion of crimea. food delivery firm deliveroo said it will take comprehensive action to reduce the amount of plastic packaging used in its meals. plastic cutlery will become an opt—in on its app, while the firm has launched a new line of eco—packaging, with 50 new products to help restaurants offer sustainable packaging. deliveroo boss will shu said: "we want people to enjoy meals that are sustainably delivered and packaged." do you know what i think? fingers.

use your hands. use the cutlery in your house if food is being delivered to your house? just use your hands and then wash them. they do that all round the world. british tech company dyson has reported bumper profits today with underlying earnings up 27% last year to £801 million. and it's mainly thanks to asian consumers who accounted for three quarters of its sales last year. sarah toms is in singapore to tell us more. hello. yes, as you said, dyson products are proving to be a huge hit with asian consumers. dyson hoovered up a1% rise in profits last year, and as you said, almost 75% of the compa ny‘s growth year, and as you said, almost 75% of the company's growth last year came from asia. so why is such a huge spending boom in the region? there isa spending boom in the region? there is a rapidly growing middle class,

especially in china. with that comes the growing demand for technology and consumer products. that is why the blameless fan hairdryers proved to be so popular and also air purifiers because air pollution is a problem in cities like shanghai and beijing. and this is good news will dyson,in beijing. and this is good news will dyson, in the middle of an ambitious expansion. last year they said they had been working on building an electric car for three years. the british company has not yet decided where to build the factory. england and asia, after these results, looking like strong possibilities. thank you. let's take a look at how the markets have been getting on. in asia shares overnight were mostly up but in europe and the us they were mostly down. wall street showed its worst monthly performance in two yea rs worst monthly performance in two years for february. it was still reacting to comments

from new federal reserve chair jerome powell which suggested interest rates could rise faster than expected. remember, it was the hint of faster rate rises just a month ago which sparked those huge global sell offs. jerome powell will be speaking again in the us today. and in europe, the markets have been trading in the uk forjust over a0 minutes, and the ftse is down almost one third. keep an eye on sterling which fell to its lowest levels since mid—january yesterday after theresa may, the uk prime minister, said she couldn't accept the eu's draft withdrawal text. now the details about what's ahead on wall street today. there is a lot of economic data for the market to absorb on thursday. the weekly measure of how many have made their first claim for unemployment benefits and it is expected to show

the continuing strength of the us labour market with a very low number. there's also monthly figures for how many cars were sold in the us in fabbri, they will be released by auto—makers. the total is expected to show a slight decline in the numbers being sold since this time last year. jerome powell gives his second day of testimony to congress about monetary policies which will doubtless attract a lot of attention. and the site from economics investors will also have a lot of corporate news to mull over including earnings from retailers gap, coles and nordstrom. still to come: we hearfrom the boss of the world's biggest advertsing firm wpp, sir martin sorrell, on how social media is changing the world of advertising. you're with business live from bbc news. a report on the uk car industry after brexit suggests a no deal scenario would mean the loss

of thousands ofjobs and millions in investment. the select committee report suggests the uk must closely align itself to the eu's trading model to give car manufacturing a realistic chance of survival. david bailey, professor of industry at aston university, gave evidence to the committee. david, tell us a little bit more about this scenario that is being played out. the report is very hard hitting. the mps on the committee have done a greatjob of spelling out the issues facing the car industry in the wake of brexit, and they make the point that there is no benefit from brexit for uk car industry. there are only costs and this is about damage limitation. in particular they make the point that no deal would be the worst outcome. it would mean wto ta riffs of

tariffs of up to 10% on karzai a% on components, which would have a huge impact on the industry here. it would probably see plant closures and considerable job losses. avoiding a no deal is critical. we only heard from toyota yesterday continuing to invest in the uk car industry. and i spoke to the boss of nissan, who was saying that actually he is still optimistic about the situation in the uk. he is keeping a close eye on negotiations but clearly some of the big global players in the car industry are not giving up. that is drug. these are japanese investors who do want to be here for the long—term. —— that is right. the toyota decision was taken some time ago and it would be difficult for them to unwind that. nissan have they will build the new qashqai from 2021 in the uk but they will review that in the wake of the decision on brexit. they want as much access to the single market as possible. 50% of car exports go to the european union and japanese producers in particular came to the uk to use that as a launch pad into the single market. they want to be

as closely aligned as possible with the single market. if we lose that and we see barriers to trade, we will see a reduction in investment here, i think. david, thank you for your time. and it is notjust snow affecting the uk. it has shut down geneva airport. they might be more used to snow in switzerland compared to the uk but that airport in geneva is closed. the statement advertises passengers not to arrive. you're watching business live. our top story: is spotify really worth $23 billion? the world's biggest music streaming service is going public and doing so in new york. let's look at the market so far today. markets in europe are down, with big losses over the last month across global markets and we are starting march on the back foot. all trading in the

red. let's talk about the advertising business now because the world's biggest ad firm, wpp, has just reported its results for 2017. it has seen a fall in the amount it bills clients. but it denies, as some have suggested, that this is a sign of a broader decline in the industry as the likes of google and facebook take an ever bigger share of global advertising spending. let's show you a few of the highlights. wpp says its net sales were down almost 1% on the previous year, the worst performance since the 2008 financial crisis. in a statement, wpp said 2017 was not a pretty year and warned there wouldn't be any growth this year. and it warned the industry continues to undergo fundamental change. as i've been hearing from the boss of the firm, sir martin sorrell. it has not been an easy year. not a pretty year, as we put. just elaborate, why in your opinion

has it been a tough year for your company? a couple of things, from a long—term point of view, technological disruption, whether in production, media or distribution, with amazon for example. which is changing the dynamics. there are short—term pressures , dynamics. there are short—term pressures, activists put pressure, but to be fair some call for increased investment in branding and innovation. and private equity models looking on cost in the short term. whatever it is, we have two adapt the way we go about our business. you are extremely spread out, you are getting bigger. every time i meet a company in ad space, they say

apart is owned by wpp. is too much going on when you are challenged by google and facebook? they are the first and second largest destination for media investment. our media book is about £55 billion billings. that, about 7 billion goes to google and facebook. in my view it would be, while others disagree, wrong to google and facebook... in our presentation later today we will give you a quote from a senior executive at google who says the opposite. we are increasing, we have described them vividly as frenemies. that they have become much more partners. that is not the issue. it might be a comma and issued that traditional media

with focus on. why then is the likes of procter and gamble saying we won't spend as much this time? again, that is not what they have said. they did not say they are spending less, but as i interpret it, they would spend less if google and facebook did not step up to the response proceeds that the bbc have in relation to the material on their channels. they have to take responsibility. they have to take responsibility. they have to take responsibility. they have to take social responsibility and political responsibility and political responsibility for consumer brand safety on those media. but keith was saying in effect they are media just like you and have to be responsible. to be fair, google and facebook are hiring 30,000 people to make sure

that they don't have the issues that arise with content being placed on controversial or unacceptable websites orfor controversial or unacceptable websites or for the political shenanigans that may or may not have happened around elections. the boss of wpp. i had to interrupt to get my questions in. with me is thomas singlehurst, analyst at investment bank citi. you were listening to that, there is a lot of discussion about the advertising industry and how it has been changed, for better or worse, because of facebook and google. what is your take? there is no doubt there has been disruption. the move to digital makes advertising more efficient and budgets potentially overtime move down which is a big adjustment for a company like wpp breaches exposed to traditional

buying. can it adapt to these new activities in terms of areas like business transformation, building e—commerce platforms? explain the people who are not familiar with the industry what is the interplay between a company like wpp and google or facebook? as he mentions, they are media companies taking advertising. the only difference between those and traditional media companies is that buying is increasingly automated. do you need an individually like wpp? that is the debate about whether wpp has a role to play. his argument is they still have a

role. and the role has to change, whether he likes it or not. he is completely open to that, they made announcements today that they had to change the way they do things because their forecast for profits is flat again. ultimately the group has a3% of reve nu es ultimately the group has a3% of revenues from these traditional advertising related areas. in fairness, if you did below that, you -- if fairness, if you did below that, you —— if you did below, you will find the aries people are most worried about are performing 0k —— the areas. the challenging areas are the traditional creative functions. share price, wpp is down 13.5% on the markets. the reality is all the way through last year the group consistently

downgraded revenue guidance. and running into the fourth quarter, the market was expecting slight growth. they came in with —1.3%. market was expecting slight growth. they came in with -1.3%. markets don't like surprises. will that impact on his remuneration? as the highest paid ftse 100 impact on his remuneration? as the highest paid ftse100 boss in the uk. remuneration is a key focus for investors. you are right. he is a big shareholder as well with the company. like you for your analysis, really interesting discussion about the future of advertising. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. stay up—to—date with the news as it

happens. with analysis from our editors or around the globe. we wa nt editors or around the globe. we want to hear from you, get involved. on twitter as well. and you can find us on on twitter as well. and you can find us on facebook. what you need to know, when you need to know it. you have been getting in touch about the streaming industry, the music business. let us chat through some of those. a twea k let us chat through some of those. a tweak here think streaming is great for the music industry allowed artists to reach more than their original target audience and consumers can experience a massive variety of music. and another, without streaming i

wouldn't have a connection, i don't have a radio and i don't go clubbing, the only way i discovered new artists. is the message here, saying, if it wasn't the streaming i wouldn't pay anything for my music. i listen and i pay anything for my music. i listen and i pay again. some say they still have cassette tapes and cds and vinyl. quite a few from that end of the scale. they are the early risers watching! maybe we have the streamers at this time. one story here about credit card debt in the united states. the headline focuses on the fact we have had rising arrears in credit ca rd have had rising arrears in credit card debt and music —— mortgage

payments the people are falling behind. there is another article with bill gates and an interesting forecast that the world will face another global financial crisis, not the same when it will happen but at the same when it will happen but at the centre of his concern is the issue debt has not been reduced since the crisis and although it might seem like a microcosm must —— it is the fact we have seen stagnant real standards of living and real incomes have been falling. a theme in the uk as well. we are hitting the lower income brackets above proportion. who are borrowing just to get by. not a good sign. and a story also linked, problems with uk retail, a major headline saying up to 200000

more high st storejobs major headline saying up to 200000 more high st store jobs tipped to be axed by 2020. it is the same topic. particularly in the uk, real income falling, high inflation which means you hit those income brackets even more. it will hit the retail space, a natural chain of events. thank you forjoining us this morning giving us your expertise. a busy programme. thank you for your comments today on streaming. we will see you again tomorrow, goodbye. we currently have two severe red

warnings in force issued by the met office. we do not see these warnings so frequently. the areas, across central scotland, tayside and fife come one runs out at 10am. we have a brand—new one the south wales, somerset and devon, starting at 3pm and ending at 2am tomorrow come it is the snow and the wind means there will be blizzards. there is an amber warning across the northern, eastern and southern scotland, parts of cumbria and wales, all of them all for snow. the snow is piling in across the north and east of the country, north—east england, with snow across south east england into the midlands but this is more patchy. more significant snow is coming in across the south west and

wales. here we could well see up to 20 centimetres, eight inches. locally we might see even more than double that with the added hazard of freezing rain. it will be very windy. the fact these might be the temperatures you see on your thermometer, if you add on the wind chill, it will feel much colder, in birmingham it will feel more like minus 13. heading through the evening, we continue with the snow across the north and eastern parts a respite in the southeast but more snow across the southeast but more snow across the southeast but more snow across the south west and wales. a cold night, very much the risk of ice. tomorrow the snow will let out a touch in the snuff —— in the south.

by touch in the snuff —— in the south. by the end of friday, we are looking ata by the end of friday, we are looking at a line of snow from london up to liverpool bay and all points south. into the weekend, something a little quieter. still cold with the risk of snow. hello. it's thursday. it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. our top story today: hundreds of drivers have spent the night stranded in snow on the m80 in central scotland with more snow expected right across the uk today. we are in the car and we are warm. there is nothing to look at. it is like a car park. everybody is trying to sleep, i think. there aren't many lights on. we'll be looking at extra payments people living in fuel poverty can claim during the cold weather. also this morning: it's one

of the most pressing issues of our time. dementia. this morning we reveal new figures showing 1.3 million people will be living with it in the uk by 2036. i now prefer to email or