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WPP Group CEO Sir Martin Sorrell on uncertainty, debt and the business community’s relationship with Obama.
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All the world's top business leaders are meeting in Washington -- Wall Street Journal CEO council.
And our Peter Barnes act -- four seasons in Washington.
With the cop at the conference remain very very special guest Peter all yours.
Thank you -- that's right sir Martin Sorrell who has the head -- WPP of the world's largest advertising company joins us right now in this business.
It's a little bit sensitive to the economy so let them that we are and we lead -- that we like up to genuine people get nervous think out.
I don't think is the right thing to do they should be investing in brands and when they they and he restored when they feel confident.
The CEOs here at the Wall Street Journal CRI conference sound a little bit nervous about that if you -- -- -- -- -- the people -- to -- the -- the -- -- -- the accurate predictions I'm thinking.
I -- away from this morning I don't have -- late last night.
The sessions this morning I I can't wait quite clear that no -- unlike you people they don't believe that there will be some agreement before December.
Collect on the fiscal cliff Hollywood -- so goodness -- what we will do as you mentioned one or two TV executives have told you about significant.
Job cuts if that agreement is found.
But so there is a considerable degree of uncertainty these -- -- -- reluctant to not relax while somebody left wondering how -- is that right runs it is the Euro zone which.
We're modeling through I think.
China -- soft -- I think as a soft landing on Chinese operations going on so to 30% against the average for the company which is around 3%.
The the Middle East crisis Iran and Israel where there's gonna be -- you can installations.
Very difficult to predict and lost and most importantly the US not just the fiscal cliff.
The the debt was sixteen trillion dollars -- debt and dealing with the deficit how that's gonna play out post election I think a lot of people hoping.
That the president will focus on his legacy.
Have will be more accommodating them and will seek agreement but certainly the initial indications.
Have not been as positive as perhaps helpful.
But you what you said.
As we're waiting on word check that it's it's not just that the president and your view needs to be -- -- friendly personal business community but the business community also needs to work with the president I think -- be arrogant.
Business and it is as the president's full.
Any relationship is two way and I think the general atmosphere is in court and if there is felt to be.
-- lack of respect on the side.
In terms of what's happening small goods I think improving that atmospheric post election.
Into the second time this is a big opportunity to reestablish toward.
Record on develop the relationship in a meaningful way and provide a very good atmosphere to try and deal with -- things got off to.
One of the things I think as -- farmers that are I think the way.
For the election -- the electric whose name is -- Talk about -- what is heads together and get to work together.
To -- solution because -- about the house.
-- -- -- You got the senate -- Obama -- -- -- right president -- the White House and we've we've -- one of the two.
So it's really a split the split -- so you're going through your planning right now for 2013 that's -- about a third of your operations are here US all right so are you.
Planning for potential layoffs in -- -- also must -- our web -- Brett.
Since the beginning here because we -- heavily as we went into 20122011.
Was a record year for WPP and up 28 years history never.
Have done so well we think this year will be a similarly good year.
But it's going to be there's a lot of uncertainty that is full of grace ones plus the general uncertainty going into 2013 that events -- Olympics.
-- will cops.
A presidential elections -- congressional victims of -- 2014.
We have soft -- And Russia the range of -- we have the Brazilian World Cup.
And we'll have made some congressional review them so they'll be election spending.
But 2013.
Is is I'm on it's not a -- quarter and there was a -- like last year.
-- -- this year.
-- -- immediate quarter and we'll read global World Cup here that it Winter Olympics yet so it's much more difficult because of -- to us and our industry.
Generally this tremendous caution.
And uncertainty.
And in most conditions people -- doesn't invest.
They don't make decisions that they make hard decisions and so I would say -- employment unless something is done about it.
Is likely stay at these levels and because of that and reach agreement on the fiscal -- we will have a -- -- Urging him 11 prospects cards -- Martin thank you for joining has ever -- the fields in the yes you look at us all right will be.
Getting back to you want all of that is -- -- -- to -- effective.
