:00:00. > :00:00.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:00. > :00:09.Brexit Anxieties - UK sales at the world's biggest
:00:10. > :00:11.advertising firm have "softened", according to the latest
:00:12. > :00:33.Live from London, that's our top story on 31st October.
:00:34. > :00:36.Fluctuations in sterling have swayed the World's top advertising agency,
:00:37. > :00:39.sales have slowed at WPP following the UK's
:00:40. > :00:46.And Brexit uncertainty puts pressure on Mark Carney to clarify how long
:00:47. > :00:58.he plans to stay in the job as Governor of the Bank of England.
:00:59. > :01:01.The market is looking like this at the start of a new week. We'll talk
:01:02. > :01:06.you through those numbers. The woman behind the Music
:01:07. > :01:10.of Black Origin awards Kanya King She will be talking to us about this
:01:11. > :01:14.year's ceremony and how to inspire the next generation
:01:15. > :01:16.of black entrepreneurs. As IKEA ditches aspirational ads
:01:17. > :01:21.to reflect the "daily grind". We want to know, should firms
:01:22. > :01:23.sell us the lifestyle Let us know, just use
:01:24. > :01:41.the hashtag #BBCBizLive. Advertising can often act as a key
:01:42. > :01:46.early indicator of change or stress in an economy,
:01:47. > :01:58.it's a bit like a canary When advertising does well it shows
:01:59. > :02:01.we are buying and selling, economies tend to be growing.
:02:02. > :02:04.The world's biggest advertising agency, WPP, has just
:02:05. > :02:06.published its third quarter results, and it says they reflect some
:02:07. > :02:17.In dollar terms worldwide sales were up 4.6% at $4.741 billion.
:02:18. > :02:23.In the UK sales were up 2.1% in the first period after the UK's
:02:24. > :02:31.The UK accounts for 14% of WPP's sales despite it being the company's
:02:32. > :02:39.But weighing on all of this is a huge fall in value of the pound
:02:40. > :02:46.which has had a huge affect on the value of the business.
:02:47. > :02:48.Sir Martin Sorrell the Chief Executive and founder of WPP
:02:49. > :02:51.joins me now from New York, where it's rather
:02:52. > :03:06.He has his Halloween pumpkin with him in the studio! It is known as
:03:07. > :03:11.the Trump pumpkin, the suntanned pumpkin! Will talk about the US
:03:12. > :03:15.election in a moment but let's focus on your results. Ben was outlining
:03:16. > :03:20.the fact it's been quite a difficult quarter and currency movement has
:03:21. > :03:25.quite a bit to do with that. A little bit of an exaggeration I
:03:26. > :03:30.think. It's been a good quarter, actually. You can't argue with sales
:03:31. > :03:36.up 24% at the end of the day. If you look at it on a like-for-like basis,
:03:37. > :03:40.yet to date, we are up 3.8% on revenue, 3.4 on net sales. A bit
:03:41. > :03:45.slower in the third quarter on a like-for-like basis whether you are
:03:46. > :03:53.looking at revenue or net sales. We had strong comparatives last year.
:03:54. > :03:55.If you look at it geographically, the US continues to be strong,
:03:56. > :03:58.continental Europe strong, places like India strong, Brazil better
:03:59. > :04:01.than expected. What's really interesting is that greater China
:04:02. > :04:06.and mainland China were strong in September and that was good because
:04:07. > :04:12.we had a weak first six months, we were flat in the first six months.
:04:13. > :04:17.Advertising and media, Digital and public relations and public affairs
:04:18. > :04:23.strong, too. An Brexit and the UK, the UK softened in Q3 although
:04:24. > :04:29.overall year-to-date we've done well, up over 3%. I think the
:04:30. > :04:33.possible reason is uncertainty over Brexit. Whenever you have a
:04:34. > :04:38.conversation with a client on the UK, the first thing that comes out
:04:39. > :04:44.of their mouth is the potential impact on the UK of Brexit. I hope
:04:45. > :04:50.Mark Carney stays, that will reduce the uncertainty. It will be a strong
:04:51. > :04:54.hand at the monetary teller. I hope he does stay. If he goes, that will
:04:55. > :04:58.introduce even more uncertainty. It's good to see the government
:04:59. > :05:04.supporting the car industry and I assume what they've done for Nissan
:05:05. > :05:08.or what they've promised will be extended to the whole industry.
:05:09. > :05:13.That's good news, too. Having said that there is still considerable
:05:14. > :05:18.uncertainty. 86% of your business is outside of the UK. You have talked
:05:19. > :05:23.about concerns about Brexit but what about this upcoming election in the
:05:24. > :05:25.United States and also some of the other uncertainties around the
:05:26. > :05:29.world? You've mentioned China were strong in September which is
:05:30. > :05:33.encouraging but it's still not clear really about the long-term outlook
:05:34. > :05:39.China. On China, I think you'll have to wait until the People's Congress
:05:40. > :05:44.next year. This time next year, when we seem further consolidation and
:05:45. > :05:53.the President's position and whether he might stay on for 15 years or ten
:05:54. > :05:57.years, we'll see whether having consolidated his power base he then
:05:58. > :06:00.moves to focus on the economy rather than more of the anti-corruption
:06:01. > :06:05.campaign. I think that will be the key issue. We'll have to wait until
:06:06. > :06:14.next year to see that. On the US, ever since Friday night I suppose
:06:15. > :06:20.the intervention has thrown a lot of uncertainty in. If you look at the
:06:21. > :06:25.electoral arithmetic it seems that Hillary Clinton will make it. Having
:06:26. > :06:29.said that either way, there are enough checks and balances in the
:06:30. > :06:33.American system. What James Comey did on Friday night might have made
:06:34. > :06:37.the position for the Republicans better in-house and better in the
:06:38. > :06:43.Senate than otherwise. If Clinton was to win the presidency the checks
:06:44. > :06:46.and balances are sufficient to prevent extremes. Having said that
:06:47. > :06:50.we may still have more gridlock and more deadlock. Whatever happens
:06:51. > :06:56.after November the 8th, whoever wrestles with the position of
:06:57. > :07:00.president in the Oval Office is going to have a lot of controversy
:07:01. > :07:06.surrounding it, generated by the FBI and some of the things that the
:07:07. > :07:10.Trump camp have said in relation to the electoral process. And the Trump
:07:11. > :07:17.following is extremely strong. He didn't get where he is today by not
:07:18. > :07:20.having a very significant, vociferous following. That
:07:21. > :07:28.uncertainty in and of itself is not good news. We've run out of time,
:07:29. > :07:34.surprisingly! What a shame! You've got to be in the studio next time,
:07:35. > :07:38.please! I promise you I will be, as long as we have a WPP logo and a
:07:39. > :07:45.pumpkin! I can't guarantee the pumpkin! If you guarantee the logo
:07:46. > :07:47.that's great! LAUGHTER Will see you soon! You can tell he works in
:07:48. > :07:49.advertising! The EU and Canada have signed
:07:50. > :07:53.a landmark free trade deal, which has been delayed for weeks
:07:54. > :07:55.over objections from the Belgian The pact has taken seven years
:07:56. > :07:59.to negotiate, it'll remove 99% of tariffs and generate billions
:08:00. > :08:03.of dollars worth of trade. It's also viewed as a possible model
:08:04. > :08:06.for the UK, following the country's Japanese electronics giant Sony
:08:07. > :08:13.cut its annual profit outlook by 10% due to losses on the sale
:08:14. > :08:16.of its battery business. The tech firm now expects
:08:17. > :08:20.profits of $2.6 billion for the year ending March,
:08:21. > :08:23.down some 30 billion yen down Sony is scheduled to release
:08:24. > :08:44.its first-half results tomorrow. On the business live page all of the
:08:45. > :08:48.details of the stories you need to follow. There is a story about Mark
:08:49. > :08:52.Carney and we'll be talking about that later. There's a lot of
:08:53. > :08:56.speculation of late about whether Mark Carney would step down as
:08:57. > :09:00.governor of the Bank of England. Given the interference from Downing
:09:01. > :09:07.Street. It's about the fact that he has an eight year term but there is
:09:08. > :09:11.a five-year option to end at that point if he wishes. It's not about
:09:12. > :09:18.him quitting in the near future but possibly going in 2018 as opposed to
:09:19. > :09:22.2021. Just to be clear, that's not him in the picture!
:09:23. > :09:24.Three of Japan's largest shipping firms are to merge
:09:25. > :09:41.Some radical restructuring of the three coming together. More signs
:09:42. > :09:46.the shipping sector is in trouble. To sail out of the stormy waters,
:09:47. > :09:51.companies are having to join forces. Japan's top three shipping companies
:09:52. > :09:59.are merging their container operations. They will form a joint
:10:00. > :10:07.venture by next July. Together they will make the sixth largest camp --
:10:08. > :10:11.shipping container firm in the world. What's really important is
:10:12. > :10:15.this consolidation comes after the global shipping industry has had to
:10:16. > :10:22.deal with the fallout from the collapse of South Korea's largest
:10:23. > :10:25.shipping firm. It is an industry suffering from overcapacity, low
:10:26. > :10:40.freight rates and slowing global demand, all coming together in a
:10:41. > :10:45.perfect storm. Thank you. Then make -- the markets are down over
:10:46. > :10:52.uncertainty over the US presidential election. Shares in major shipping
:10:53. > :10:56.firms jumping. Same sort of concerns for Europe ahead of what is now the
:10:57. > :11:00.final week before that big vote. In the UK we get the quarterly
:11:01. > :11:04.inflation report is on Thursday. Some expectations of whether Mark
:11:05. > :11:08.Carney will make a statement about his future. That could happen on
:11:09. > :11:11.Thursday to quell the speculation about whether he will leave early.
:11:12. > :11:12.We'll talk about that more in a moment but first let's head
:11:13. > :11:16.stateside. And Samira Hussain has
:11:17. > :11:23.the details about what's ahead This is the final full week of
:11:24. > :11:29.campaigning in the US presidential election and the latest US jobs
:11:30. > :11:32.report will certainly be fought in the last days. Before we get to
:11:33. > :11:38.Friday there are bits of business we need to look at. On Tuesday the US
:11:39. > :11:42.Federal reserve will begin its two-day meeting. Markets are not
:11:43. > :11:47.expecting a rise in interest rates at this meeting, given it comes just
:11:48. > :11:51.a few days before the presidential election. Also happening this week,
:11:52. > :11:56.Facebook will be reporting earnings and investors are expecting to see
:11:57. > :12:00.another boost to add revenue and users. Finally we will also be
:12:01. > :12:05.hearing from time Warner when they report their earnings. This comes as
:12:06. > :12:12.the company is in the process of being acquired by a T
:12:13. > :12:18.Joining us is Sue Noffke, UK Equities Fund Manager
:12:19. > :12:21.at the asset management firm Schroders.
:12:22. > :12:26.We've got the Federal reserve meeting, the Bank of England
:12:27. > :12:30.inflation report, all the speculation about Mark Carney.
:12:31. > :12:35.Interest-rate decisions from the Bank of England, too. You've got a
:12:36. > :12:39.long list of earnings. We will be busy this week. We are one week into
:12:40. > :12:44.a three-week earnings bonanza along with quite a lot of economic data as
:12:45. > :12:49.well. We had GDP figures from the UK and the US last week which were
:12:50. > :12:55.better than people had anticipated. It's the usual story with earnings,
:12:56. > :12:59.where companies are beating downgraded expectations but quite a
:13:00. > :13:04.mixed picture. Quite a lot of headwinds in the United States. The
:13:05. > :13:08.stronger dollar has been inhibiting some of those overseas earnings for
:13:09. > :13:15.US companies. And of course weaker sterling has been boosting a number
:13:16. > :13:23.of UK companies. All you get a mixed result like WPP. When you look at
:13:24. > :13:28.all these results, we are starting to piece together a picture. But
:13:29. > :13:33.it's quite hard to do because all of this data is telling us different
:13:34. > :13:38.things. We are sifting through and looking for real evidence. We've
:13:39. > :13:42.seen markets respond to currency movement, particularly in the UK,
:13:43. > :13:48.moving up those big international companies. Now we are looking for
:13:49. > :13:52.the underlying improvements and looking at forward statements as
:13:53. > :13:57.well as what has actually happened. It's quite an interesting scenario.
:13:58. > :14:04.I assume we can't expect much action from central banks this week. It may
:14:05. > :14:08.be again looking more to the commentary than the action at this
:14:09. > :14:14.particular point but all eyes are on those December meetings. Lovely to
:14:15. > :14:20.see you. I know you're going to talk us through the papers and will be
:14:21. > :14:26.talking about the IKEA move and whether adverts should be
:14:27. > :14:28.aspirational or reflect the gritty reality. I think they should be
:14:29. > :14:31.aspirational! We'll meet Kanya King -
:14:32. > :14:36.the co-founder of the Mobo Awards about creating a global brand,
:14:37. > :14:38.and how she uses her business You're with Business
:14:39. > :14:50.Live from BBC News. The Bank of England says "nothing
:14:51. > :14:54.has changed" following reports that governor Mark Carney could stand
:14:55. > :15:00.down, over claims of interference Mr Carney took over as governor
:15:01. > :15:09.in 2013 for an eight-year term, but with an option to leave
:15:10. > :15:11.after five years. Our Economics Editor,
:15:12. > :15:24.Kamal Ahmed has been following this. He's joining us in the business
:15:25. > :15:32.studio. There you are. We can see you. Explain to us why this. Dot.
:15:33. > :15:36.The bank of ringing has been forced to make this statement. Mark Carney
:15:37. > :15:43.has made it clear always he would make a decision about whether he was
:15:44. > :15:47.going to leave, as he originally planned, in 2018, after five years
:15:48. > :15:54.or he would extend his time at the bank until 2021, the more usual ATS
:15:55. > :15:59.for a Bank of England governor. Of course, once you announce you're
:16:00. > :16:03.going to make a decision at the end of year, speculation starts about
:16:04. > :16:10.what the might be -- the usual eight years. I think after the referendum
:16:11. > :16:15.he felt under some political pressure, the economic prognosis by
:16:16. > :16:20.many people was gloomy and then we had that Theresa May comment
:16:21. > :16:26.criticising the bank's monetary policy, saying it had bad side
:16:27. > :16:29.effects. But I think, since then, his resolve has stiffened somewhat.
:16:30. > :16:33.The economy has been performing rather more strongly endorse the
:16:34. > :16:37.bank has been praised for providing more monetary stimulus and cutting
:16:38. > :16:42.interest rates. Why does this matter? It's a question of
:16:43. > :16:47.volatility. If you look at how sterling has performed against the
:16:48. > :16:51.dollar, it's been on a downward path since the referendum. It's about
:16:52. > :16:55.certainty, so a lot of people in the markets believe Mark Carney should
:16:56. > :17:02.stay to provide that certainty until 2021. All right, thank you very much
:17:03. > :17:10.indeed. There is a lot more from him and his analysis etc on our website.
:17:11. > :17:16.We've mentioned all the speculation about Mark Carney. There's more
:17:17. > :17:20.about what Sir Martin said come on you heard him here, and it's a
:17:21. > :17:25.really busy day. More on Sony's results, as well.
:17:26. > :17:30.Advertising giant WPP has said slowing revenue growth in the UK may
:17:31. > :17:36.indicate the first signs of Brexit anxiety.
:17:37. > :17:44.A quick look at how markets are faring.
:17:45. > :17:51.Opec meeting which took place in Vienna on Friday, spilling over into
:17:52. > :17:55.Saturday, still no agreement, it would seem between members and
:17:56. > :17:58.nonmembers about supply cuts, production cuts, so that has caused
:17:59. > :18:00.the price of oil to fall. Another story affecting the markets today.
:18:01. > :18:03.And now let's get the inside track on the UK's MOBO awards.
:18:04. > :18:05.That stands for Music of Black Origin.
:18:06. > :18:07.This year's ceremony is happening in Glasgow on Friday.
:18:08. > :18:10.The awards were founded by Kanya King in 1996 to celebrate
:18:11. > :18:14.the wide-ranging genre in the mainstream media.
:18:15. > :18:17.And, believe it or not, she was given just six weeks to set
:18:18. > :18:24.Now it has developed into a mega event with 400 million viewers
:18:25. > :18:28.across over 200 countries and plans are afoot to expand the MOBO brand
:18:29. > :18:31.and its influence further into international territories
:18:32. > :18:48.She literally just made it. We are very thankful you are here. Just
:18:49. > :18:52.talk us through this full 's 1996, what made you come up with this
:18:53. > :18:56.idea? I know you weren't alone, there were two of you, and you made
:18:57. > :19:00.it happen in six weeks. In the mid-90s, the musical landscape was
:19:01. > :19:06.changing and there was an audience not being catered for, the dish
:19:07. > :19:11.urban music was on the margins of mainstream, and there was a kind of
:19:12. > :19:14.a vibrancy regarding some of the music genres like hip-hop and reggae
:19:15. > :19:21.that there was no mainstream platform where these genres could be
:19:22. > :19:24.appreciated. You are working in music and television so were fairly
:19:25. > :19:30.connected, but how easy was it to pull this off in six weeks? It
:19:31. > :19:34.sounds like quite a feat. I wasn't working in a musical industry. I was
:19:35. > :19:37.a research as an independent television production company, with
:19:38. > :19:43.no connections in the music industry, but I was one of these
:19:44. > :19:47.young people, very passionate about lots of different musical genres,
:19:48. > :19:52.and I hoped somebody else would do something about it and I think my
:19:53. > :19:57.overwhelming desire to celebrate reggae, soul, gospel music, left me
:19:58. > :20:02.to remortgage my house against my mother 's better judgment. You had
:20:03. > :20:08.quite a lucky break involving a chance meeting with someone. Talk me
:20:09. > :20:15.through that story. Oh, yes, as a young parent, I had multiple jobs at
:20:16. > :20:20.the time and I think this is a story where was working at Arsenal
:20:21. > :20:23.football ground, and I remember supervising in the boxes, and this
:20:24. > :20:27.young gentleman turned up in a bit of a flustered because it was meant
:20:28. > :20:30.to meet his young nephew and he was late, so I took charge of the
:20:31. > :20:34.situation, arranged for a meeting place for them to get together and
:20:35. > :20:38.then we got talking and he was really grateful so I had his
:20:39. > :20:43.undivided attention and when he tell you what he did for a living, he was
:20:44. > :20:48.empty of LWT, at the time, I couldn't resist telling him I
:20:49. > :20:54.amazing idea. Of course coming ahead of semi-times before but the
:20:55. > :20:59.difference in this case was he was grateful. -- so many times. He had
:21:00. > :21:04.to listen. He was very polite. He said to me, "I tell you what, what
:21:05. > :21:10.you need to do is send a proposal to me. I guarantee you'll get a
:21:11. > :21:14.meeting." With most of these things, you follow up straightaway and I got
:21:15. > :21:21.a meeting in the following week. And, I guess, that was my lucky
:21:22. > :21:26.break. Since 1996, in the UK we've got the was all over the world
:21:27. > :21:30.incidentally, we've all heard of the MOBO wards, big event we see and
:21:31. > :21:37.hear about but what impact has it had for black musicians since then
:21:38. > :21:41.and where are you going next? -- MOBO awards. Any person regardless
:21:42. > :21:46.of background colour should be able to discover their full potential of
:21:47. > :21:55.music. Basically, we wanted every kid in every classroom every
:21:56. > :22:00.community, to be inspired. So what we have tried to do is use the
:22:01. > :22:03.impact and influence of the MOBO brand to highlight issues and causes
:22:04. > :22:09.which are important to us. We've also been able to do that by
:22:10. > :22:12.championing and celebrating emerging talent so lots of artists around the
:22:13. > :22:17.world have had their first-ever platform on the MOBO stage. Briefly,
:22:18. > :22:22.time is tight, but there's been such progress with that and all the work
:22:23. > :22:25.MOBO has done to promote black musicians, do you still need a
:22:26. > :22:31.separate ceremony because I would imagine a lot of black artists are
:22:32. > :22:34.in the mainstream? You don't have to be black to win a MOBO award falls
:22:35. > :22:41.it's all about the spirit of the music as opposed to where the
:22:42. > :22:44.artist, what colour they are. It irrespective of background colour
:22:45. > :22:48.but the truth the matter is, if you look at the nominees this year,
:22:49. > :22:52.there is no other platform they would be celebrated and recognised
:22:53. > :22:56.to millions of people around the world. I think that's important for
:22:57. > :23:02.them. I look at our best newcomer category, they were unknown when
:23:03. > :23:06.they were nominated, and now of course, they've been elevated to
:23:07. > :23:10.mainstream status because of the MOBO backing. OK, thanks so much for
:23:11. > :23:14.coming in. It's a great story. We will watch it on Friday. Thank you
:23:15. > :23:15.very much. You've had more than six weeks to sort this out.
:23:16. > :23:17.LAUGHTER In a moment we'll take a look
:23:18. > :23:24.through the Business Pages. Real reveal what you thought of the
:23:25. > :23:29.IKEA adverts. But first here's a quick reminder
:23:30. > :23:36.of how to get in touch with us. Stay ahead of the braking business
:23:37. > :23:41.news. We will keep you up-to-date with the latest details. Insight and
:23:42. > :23:45.analysis from the BBC's team of editors right around the world. We
:23:46. > :23:53.want to hear from you, too full to get involved on the BBC business
:23:54. > :24:04.life web page. And on Twitter and Facebook. On TV and online, whenever
:24:05. > :24:05.you need to know. You have been in touch with one of the stories we
:24:06. > :24:09.discussed earlier. Sue Noffke, UK Equities Fund Manager
:24:10. > :24:19.at the asset management firm Let's talk again about IKEA and its
:24:20. > :24:21.advertising. It's a move away from aspiration and glossiness, the
:24:22. > :24:33.perfection, to something more humdrum, a bit more which reflects
:24:34. > :24:37.people. Normality. What we would all recognise behind our own front
:24:38. > :24:42.doors, really. A bit of mess. They are calling it the daily grind. A
:24:43. > :24:45.lot of people are saying this couple look very happy and this is not the
:24:46. > :24:48.norm because you are probably arguing or doing the ironing or
:24:49. > :24:54.something like that. Nonetheless, it's reflecting real life as opposed
:24:55. > :24:58.to all those aspirational things but a lot of people are getting in touch
:24:59. > :25:03.this morning. Jerome Kern are we supposed to wear its sackcloth and
:25:04. > :25:08.ashes as well? A world of aspiration is dismal for the David, I can see
:25:09. > :25:12.that. Anything aspirational seems out of reach this year. Why would
:25:13. > :25:16.you buy something you've already got? They have to sell you something
:25:17. > :25:19.you either don't have or don't need as part of the aspiration for some
:25:20. > :25:28.and that other business make money ultimately. IKEA have also coined
:25:29. > :25:32.the freeze repeats enough, -- phrase. They are in the business of
:25:33. > :25:36.selling stuff to people and I suppose it's a shift from things
:25:37. > :25:40.that perhaps we really do need or do want that fit into the day-to-day
:25:41. > :25:44.aspect of our lives. Whatever we think, I'm sure many of us will have
:25:45. > :25:48.the experience of not being able to put together those shelves. IKEA
:25:49. > :25:53.just wants to study the cupboards and shelves to store that stuff.
:25:54. > :26:05.Thank you for your company today. We will see you tomorrow. Bye-bye.
:26:06. > :26:13.For many of us, a decent day today with some mild weather and sunshine.
:26:14. > :26:17.Before we get there, we have some dense patches of fog to content with
:26:18. > :26:21.this morning affecting much of England and Wales. Visibility down
:26:22. > :26:23.to 50-100 metres in the worst