sir martin sorrell speaking to us from china. jonathan ferro is here. >> sir martin saurav -- four sorrell, always good. it is about power and generating market share. they are talking about it breaking down because of tax issues. the analysts are talking about the same thing. it is managerial. organizational structure. the sticking point, everybody was talking about one thing, the conflict of client interest. on, ourer it goes clients interests are starting to be hit by this. that is what you have to talk about. it just does not stop here. what is the hangover of the breakdown of this deal? what does it mean for the industry? what if it means for the clients that have been left hanging? martin sorrell has made a point that he has managed to put his strategy in place. >> he wanted it carry on. is a key point. this deal got announced in july. had they been able to implement their own strategies aggressively -- >> it was all about scale, wasn't it? >> going into the digital revolution aggressively. but it was less about synergies an

we are here with sir martin sorrell.admin in the in thes -- ad men business. ♪ >> good morning, everyone. i'm tom keene. a busy morning. let's get right to company news. olivia sterns has it for us. >> google has unveiled new advertising tools for marketers on youtube. the new service is aimed at alleviating concerns that ads are not reaching the right people. the packages offer top five percent of content on youtube for 14 different areas. cisco plans to invest another $150 million in disruptive startups. the company's investment unit will be distributing money for data storage and web connected devices like home appliances. sony has posted a quarterly loss 18% larger than analysts had forecast. hurt by slumping computer and electronic sales. sony is trying to revive itself with new smartphones and game consoles. >> sir martin sorrell is the chief executive officer of wpp, which barely describes impact. he will be riveted once in the .anel in davos we will talk media. facebook and twitter. we have to go to the most impo

we will speak to sue martin sorrell. -- sir martin sorrell.he images you showed of the russian celebration in moscow. we will talk about ukraine through the weekend. tackle holland will join us on the banking industry. erik schatzker with us for "bloomberg surveillance" this morning. we are focused on the banks as well. lots to talk about. it is a busy friday. >> are you going to be talking about dr. dre and beats? is anunderstand there east coast-west coast rivalry as to which side of america is going to create the first rap billionaire. >> there are a lot of doubts about the initial thinking on this deal. we will look at this apple transaction. scott kessler will join us with his first ideas. a lot of the conversation is less about the headphones and more about this dreaming capability of what jimmy ivey ovene and dr. dre have done. tom, thank you very much. tom keene back at the top of the hour. let's talk telecoms. we had numbers from telecom this morning -- telefonica this morning. they agree to a $1 billion deal that makes it the most po

>> you can see the comments from sir martin sorrell on bloomberg plus.ir business plan at wpp. >> he said he thought this would never work. he is taking a victory lap. he could barely contain his joy. this deal is not happening because of a big culture clash print let's get to a data check. in terms of economic data, not a whole lot coming out before the market opens. we have wholesale inventories and we have futures trading lower at of that. morning, everyone, "bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. there are a lot of other pathways. our guest is this hour is irwin officerhief executive of pains select -- of haynes galaxy. coal there really a war on and what does that mean for america's future of energy? we have the senior fellow at the manhattan institute. welcome. >> good morning. >> is there a war on coal. >> i would say in the was there is but globally, it's clear this is the fuel that has been drawing the fastest since 1973. in the last

we spoke earlier today with sir martin sorrel, the man who founded the largest ad agency in the worldhe told us. look at to china for a lot of the technological developments. 73% of smartphone applications -- you can sell into china and can also back door your way into china. that is his point. what we decided to do was take all of this under consideration and figure out how to we quantify china exposure for u.s. investors. here is what we did. we start with the s&p 1500. 1500 stocks. we found 82 of the companies are selling in china and of them, it turns out 45 are expanding the businesses over the last couple of years in china. we narrowed the list further. 22 companies are expanding by at least 10% double-digit is in china. here are the top five. semiconductors. boeing by 54%. boeing gets 12% of its business out of china. i have posted all of them on twitter. go check it out. u.s. companies selling and growing in china. >> thank you.

you have the very well-paid sir martin sorrell. has a bang up year. ir martin about the success that is your economy, the u.k. economy and what the u.s. can learn from the u.k. best practices. we will touch on income inequality. martin sorrell, the certitude that facebook and twitter and google alone the advertising world. a lot more going on, particularly the idea of ukraine relinquishing eastern ukraine. on the banks, brown hands from hintzd bernstein -- brad from sanford bernstein on credit suisse and bnp paribas. >> asked about what is happening in the media landscape vis-À-vis the u.k., a big takeover -- viacom stepping in and snapping up one of the u.k.'s biggest properties, channel 5. destruction.tive drew madison and giuliana manual will join us from ubs. their optimism of the markets and the american economy. >> looking forward to it, thank you very much. tom keene with "surveillance" shortly. a big morning for bloomberg exclusives. they are moving closer to winning mark's consumer business after reckitt benckiser walked away from talks. hans

martin sorrell the chief executive of wpp will barely be able to conceal his goalie. -- his glee.'s another big american advertising group, interpublic, which is always seen as the more likely merger target for either oficom or publicis. a lot analysts and industry observers will think they have a bit of a target on the back now. tier,ere is a second dentsu from asia. we may see some or dealmaking from them as a landscape shakes out. deal was hoping that the uncertainty would continue so they could continue to benefit. as a whole industry benefited from this deal, from the uncertainty? certainly seems to have benefited from the uncertainty surrounding the deal. >> that is a good question. obviously, it is martin's job to say something like that. these are enormous companies. there are really quite serious chinese walls between agencies. they do compete with each other. when you talk to the rank-and-file, the party line is very much business as usual, we continue to do what we do, that there were big things that did happen heard microsoft took on interpublic as its main advertising

i was on bloomberg surveillance and we spoke to martin sorrell. here is what he had to say. for reasonsiven surrounding power and ego rather than strategically. neither company addressed the strategic issues. white was good for clients and people. neither company could deal with the clunky solutions they came out with. what was good for clients and people. having inequality -- mergers as equals don't work. >> he's laughing to his next client. says is true, that mergers of equals are difficult to pull off and this was done more for power, they should be delighted, shouldn't they? >> stocks are trading up a bit today. there might be some consolidation that has worked well in the ad agency sector. larger companies buying smaller companies. abbas are still out there. back a company will come and take a look at the smaller ones. >> when they are reaching out to their clients, what are they saying? >> it's like a big, never mind. let's forget about the last nine months here. that is what was happening. the advertising clients want to feel like they're getting the absolute top-of-t

. >> the thoughts of sir martin sorrell. we are joined by ian whittaker. was it ego? >> i don't think it was just ego. if you take media buying, digital, and also both parties gain fondness. if you were omnicom, publicis. i think that's a little bit unfair. b but, again, it did allow both omnicom publcis to claim they were the number one global agency. >> they lost notable clients. vodafone pulled their books away. others walked away as well. how much has it cost them? >> you do tend to get an ebb and flow with clients anyway. you do tend to get rotation between various organizations and groups. having said that, it looks like omnicom in particular was impacted by the slow progression of this merger. i think the risk for all agency groups, wbc within be careful what you wish for, is that now that you've had the two groups break apart, omnicom in particular, do they look to regain some of the clients and also regain staff that its lost. doing so, adopt a very aggressive policy on pricing and on wages with staff. don't forget, staff costs make up 60% of an agency's reve

. >> you know who was saying he was in favor of this whole deal was sir martin sorrell. i think it was creating internal strife. a lot of their clients were upset. if you own the coke account you don't want to be merged with the people that own the pepsi account. >> sir martin was hoping for an even fatter paycheck than 50 million that he made. >> i think so. he's gotten some serious grief from the uk over that. >> i like him, though. he's all about income inequality. he likes that 50 million. a lot of guys like that. anyway, as presented in july as a marger, the deal began to seriously unwind after omnicom chief executive john renn expressed during an earnings call some concern late april citing some tax complications. renn and maurice levy, the other ceo said in a joint statement on thursday, we have thus jointly decided to proceed along our independent paths. we remain competitors but maintain a great respect for one another. shares of omnicom, they are indicated a little bit lower. i think people wanted this to happen, omnicom shareholders. >> they've gone a long way