joining us is wpp chief executive sir martin sorrell. by the size of the decline in wpp shares today? sir martin: i never comment on share prices. it is a bad thing, whether they go up or down. let's talk about the reason come in the investor meeting today, you listed micro reasons and macro reasons, talk about activist investors focusing on cost, leading to declines, which leads to the you,ion, to what extent do masters of your own destiny, are you at the mercy of these external factors? sir martin: every business is at the mercy of macro and micro practice. , from try to simplify it 2011 toehman, from 2016, a low growth, below trend gdp growth world. very little inflation, very little pricing power for our clients. an environment that we could work with successfully and , 12, 13, 14, 15, 16 record results in each year. passporting to 2017, the fourth quarter of 2016 and into 2017, there has been changing and forces have become very important. the first was digital disruption, whether consumers consume media or our clients distribute goo

i think it isa martin sorrell earlier. i think it is a surprise, yeah.e 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

after the ad giant cuts its full-year net sales forecast amid declining first half renews sir martin sorrell tells cnbc that the united states weighed on profits >> it's been a tough first half. quarter two was weaker than quarter one. the weakest for us was the u.s., which was pretty much the case across the industry. that's where the pressure has been amongst the heaviest. >>> moving on up, k&s shares surge to the top of the stoxx 600 on reports activist hedge fund elliott is mulling a stake in the largest pot ash supplier. >>> and nafta in doubt speaking at a rally in arizona president trump said he will probably end up terminating the north american free trade agreement. >> welcome back to the show. you're still watching "street signs. let's show you what the market

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you saw what sir martin sorrell said about ad spending and that they are doubling.s they get more creative with the ar products and people get more used to the vertical phone settings, when you are looking at your phone an old vertical landscape, you have to have a new kind of advertising. vonnie: what else do you own in your portfolio? sean: we like red hat, zen desk, mind-body. we are very excited about growth and the world as a software play essentially. vonnie: sean, things are coming in. he remains bullish on snap although he did come in this morning at $12 a share. coming up, the u.s. inflation remains subdued, missing estimates today. what it means for the federal reserve. that is all coming next. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. bloombergor a latest business flash, a look of the biggest stories in the news right now. jpmorgan is planning on charging $10,000 a year for entry-level equity research coul. that is the lowest price for financial firms post brexit. barclays is planning on charging $39,000. analysts say th

we will talk to their chief executive martin sorrell in a few minutes.resa may makes another concession on brexit negotiations. compromising on the role it eu law, bringing up a key question -- how more down will brexit become? mario draghi gives a preview of his big speech this week at jackson hole, telling an audience in germany that central banks must be open-minded and be ready to throw tradition out the window. ♪

is sir martin sorrell of wpp.eally encouraging -- martin: i think the had the audio rights. they certainly looked at the italian league -- they have the twitter feed on thursday night -- david: football, that's exactly right. julian: in content -- theyn: in content rights, will be major bidders. not just them, google will applesly develop content, loves suggestions about what apple may or may not do in terms of content, we have seen content already with amazon prime and a series of development of complex rivaling netflix. ,hey are paying more per hour $10 million. david: in part because the business model is so different . they don't have to make it back in advertising. here can -- how can traditional companies compete? martin: we saw coming out of the white house, i think it was, from bannon's mouth something about facebook and google being utilities and therefire they should be regulated like utilities. there was an article in "the times" london talking about market capitalizations for companies that amazon had

to sweat, yount have to go to martin sorrell 101. what are you asking martin sorrell today? a second, about martin sorrell coming look at amazon and how it's moving not just into retail but the acquisition of sports rights over the u.k. is amazon replacing media to a large degree and could it replace wpp ? i could go and put a product in and i don't have to look for an advertisement. google advertises it to me. what is it due to his business and how do you cash in on that business? appreciatewestin, it. mark connors is with us. before we talk about hedge fund dynamics, do you care about managers? do you care about the ceo? it's like mr. ackman with automatic data. i guess they care about ceos, but that's about it. mark: management has been the only alpha generating in the markets. you have flat growth and rates that have not moved. m&a has picked up off-line. it has dropped. tom: on general electric, does anyone want to play that game was that boring? mark: they don't play the transition in the moment. us and weconnors with will continue really important conversation coming

earlier today on cnbc, sir martin sorrell pointed to weakness in the world's biggest ad market. >> it'seen a tough first half. quarter two was weaker than quarter one. the weakest for us was the u.s., which was pretty much the case across the industry. that's where the pressure has been amongst the heaviest. >>> checking wpp shares, you can see they're down almost 11%. >>> and zto express reporting second quarter results that fell shy of expectations. they also issued third quarter guidance below expectations. zto was the biggest ipo last year >>> la-z-boy's first quarter results missing targets, they were hit by higher costs from the upholstery business. company says tha lower volume throughout plants made it harder to absorb those costs. >> we'll talk a little education this morning schools have already started for some kids in much of the country, millions more are getting ready go back to school. joining us for what to expect in the classrooms is the president and ceo of mcgraw-hill education. great to see you when we teased this segment before the commercial break, we talked about

earlier today on cnbc, sir martin sorrell pointed to weakness in the world's biggest ad market. >> it's ban toueen a tough firsf quarter two was weaker than quarter one. the weakest for us was the u.s., which was pretty much the case across the industry. that's where the pressure has been amongst the heaviest. >>> zto express with second quarter results that fell shy of expectations they also issued third quarter guidance below expectations. zto is down 5% this morning. >>> la-z-boy's first quarter results missing targets, they were hit by higher costs from the upholstery business. lower volume throughout plants made it harder to absorb those costs. down 14% >>> still ahead, dialed in on samsung. a critical moment for the company today. it's unveiling its newest smartphone can it bounce back from some big debacles is that an understatement. >> yeah. it's already doing all right this is an important phone ahead of the next iphone we'll discuss that. >>> also in the tech world, lg just made a big bet onamerica. >>> here's the national forecast from bill karins from good morning to you we

that decline was mostly driven at the top end in particular by sir martin sorrell, the ceo of wpp whose pay package dropped from 70 million in 2015 down to 48 million pounds also topping the list were arnold donald of carnival who brought in more than 22 million pounds, followed by rakesh kapoor who earned nearly 17 million pounds this pales in comparison to this number that is transferred to break all transfers, brazilian striker neymar is edging closer to a world record move to psg in paris. it is expected the total cost of the transfer including wages will be around 450 million pounds yes. his barcelona teammate lionel messi has wished his friend good luck in the next stage of life. >>> sterling hit an 11-month high after better than expected pmi numbers. we're all waiting for the bue later on today that's it for today's show bye-bye. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingre

. >> that was ad mogul sir martin sorrell on kemba walk"squawk one street." he talks about the forces the company faced in a difficult first half of the year he called the pressure an industry-wide problem, across the united states. question if the economy is so robust, what's behind the weakening ad spending from the largest companies in the u.s.? >> it's not weakening. overall ad spend in the u.s. will be up versus in 2017. you're looking at tv ad spend being down that's because of the olympics and the election in general ad spend will be up in '17 at the end of the day, i look at facebook, google i look at the facebook ad spend roughly will be at 40% their ad revenue will be up 40%. google something like 20%. in general i look at an ad sort of agency as a travel agency, right? there is not necessarily a need. as facebook is going in and doing all the work measuring, targeting. they can go direct if i am procter & gamble spending hundreds of millions of dollars to advertise through facebook, i don't necessarily need an agency i can go directly to facebook a

sir martin sorrell, jeff curry, julian emanuel.ndon, this is bloomberg. ♪ david: this is bloomberg. the president and congress may have left the city but the fed continues to be in the news. with north korean sanctions and the group of six at work on their plans for tax reforms to be taken up after the break. joining me now is the chief washington correspondent, kevin cirilli. they are hard at work and they say they do have a plan. kevin: they will be huddling in next week at the reagan library in california. the tax writers are. and they will be continuing through the august recess. they released the blueprint the other week but whether or not they will be able to have comprehensive tax reform, that remains to be seen. i think inside the beltway, they are anticipating the corporate tax cuts. it is a tall order but the treasury department is hopeful. david: it is ironic that they are getting together to commemorate the 1986 tax deal. that involves both republicans and democrats. are they open to that this time? kevin: it is unlikel

think half of it is a waste of time, maybe we are going through one of those phases where some martin sorrellng some of that margin is slipping to his fingers. , stays withdwane us. what we? brexit. will talk about we won't forget to discuss brexit today. we look into whether the u.k. has done enough to begin trade talks in october. you will never tire of the brexit stories. this is bloomberg. ♪ ♪ breaking on dixons carphone warehouse. we have been talking about the , 24.8% dropping 25% now i believe is the drop we saw. it has been halted in trading after the huge plunge. had a profit warning on the mobile phone market in the u.k., and as a result, shares have dropped. the value of the company has dropped by one quarter now. the trading has been halted in london. continuing to look into this dixon story, although it is a small company, it is much smaller than yesterday. worth about 2 billion pounds. i want to stay in the u.k.. we are going to continue talking about the situation in the u.k.. manus, want to talk a little brexit? manus: ever far from the brexit convocation -- conversation. we t

let's bring in sir martin sorrell. >> am i don draper or an algorithm?e futuristic don draper the f >> the future has changed. i think the issue is not that. if you look at our media investments, biggest media investment makers in google, third biggest is facebook. facebook probably becoming the second biggest this year >> what's the second biggest >> murdoch nexus. that's tended to be flat to up, google continues to grow strongly facebook, despite all of the issues it faces, whether it's on brand safety, consumer brand safety, political brand safety, fake news, fraud, vieweribility, all those issues, they are up quite strongly to the extend that some people in the white house are talking about being a utility and should be regulated like a utility. >> why do advertisers wanted facebook and google -- what do they see there you raised the other issues. things like transparency, whether you know it's happening. >> it's a number of viewers. i was in china for two weeks i saw 31 local companies for two weeks. blocked out my schedule. we did it a couple years

boss of wpp, sir martin sorrell, says that the firm has been hit by a digital disruption.ully at their marketing spend. and i think it is probably for three reasons. the first was the digital disruption that you referred to in your opening comments, although, if you look at wpp now, of our 20 billion or so of revenues, we are now about 41% exposed to digital. whereas the worldwide market is probably around 30%. so we are over—indexed in that sense against digital, and that will continue, again, as you indicate. so that's one area. and that a more long—term thing. the two phenomena that probably have started to make their mark most, the first has been activist investors who have started to take positions in major packaged goods for companies, for example. and, of course, putting pressure on management to look at their short—term performance. and the third area is the so—called zero—based budgeters, these investors, again, using cheap capital or low—cost money, which we have seen since lehman in 2009, to invest in companies and to buy companies and deconstruct their budgets.

sir martin sorrell will be joining us to discuss. american eagle up by 10% in premarket.ales rising and a quarter of a revenue comes from online. one positive retail glimmer in earnings. i was really fascinated by a chart by credit suisse. he had this out yesterday and i wanted to take a look at the world index consensus for earnings estimates. you can see here that they just had about $30 earnings per share. we have only seen that about three times so far since the financial crisis. you can make the argument that when you hit three dollars a share that you saw a big move and that was the financial crisis, but we also saw another down move when we hit it in 2011 and again in 2014 when he saw another down move. the question is it is a potential for another down move that we had that during dollars earnings per share estimate? aboutit as he is talking that perhaps this time it is actually different? n.nathan: let's talk to liz an i doubt she will disagree with them. have we reached peak optimism in terms of forecast? liz ann: i don't think so. i think to extend out double-d

martin sorrell join us. anders christensen is here. duffy ways than in fine arts photographer who is just back from north korea. never before seen pictures. you'll bring them to us. the hermit kingdom says now that it is finalizing plans to launch for missiles into the waters off of the u.s. pacific territories of guam by the middle of the month would then await agreement for the country's leader, kim jong un. the committee after it promised the fire theory for the north that it refuses to stay now. defense secretary jim mattis issued a stern warning calling out pyongyang to deceive any consideration of actions that would lead to the end of its regime and destruction of its people, end quote. the governor of guam says he appreciates tough talk coming out of the trump administration. >> as far as i'm concerned is an american citizen, i want a president that says if any nation such as north korea attacks guam, honolulu, the west coast, that they will be met with alan furey. maria: and the president first said that, peak access, there wer

>> i have another little tidbit, because martin sorrell was your guest x in terms of the advertisingetitor to facebook and google. that's a huge potential for amazon that very few people are talking about. maria: yeah, you're right. stuart: it certainly is. we can never stop talking about amazon. it literally is the giant. [laughter] maria: all right. we know you'll have more in about ten minutes, see you then. "varney & company," 9 a.m. eastern, join stuart right after "mornings with maria." but first, the surprising names behind some of the summer's biggest hit movies like "wonderu woman," for example. back in a minute. the whisperer? why do they call him the whisperer? he talks to planes. he talks to planes. watch this. hey watson, what's avionics telling you? maintenance records and performance data suggest replacing capacitor c4. not bad. what's with the coffee maker? sorry. we are not on speaking terms. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95,