Special Guests: Sir Martin Sorrell - WPP Group CEO
So there are parts of the world that attract new markets is one. New media is the other, which you're well aware of. So mobile social networking, which you touched on, video content, in addition to PC-driven media. And then last but not least, data analytics and the application of technology to our business. Consumer insight is critically important.
CAVUTO: A double-dip a real possibility?
CAVUTO: You don't see it?
SORRELL: No. The thing I worry about, Neil, is that I think 2011 is set pretty fair. 2012 I think is set very fair. London Olympics, presidential election. We'll see four billion spent in media, in one way or another, in the run-up to --.
CAVUTO: Do you buy that media presages the rest of the economy?
SORRELL: No. What it does, it puts pressure on the markets. Therefore it intensifies --
CAVUTO: How about our presidential election, regardless of how much money? Does it matter the outcome?
SORRELL: It matters the outcome to the country. But we're apolitical in that sense. We have companies that historically worked from both sides of the aisle.
CAVUTO: From your vantage point, does it matter in this country with the Democrat running the show or Republican?
SORRELL: You're really putting me on the spot.
CAVUTO: You're a sir. Sirs answer.
SORRELL: Then I should be in the position not to answer. Does it matter? What matters to me is whether the economy is run effectively and efficiently.
CAVUTO: It is not. I can tell you that. In America, it is not.
SORRELL: That is your view. It's a different view. In relation to the U.K. -- we chatted a little bit before we came on. To my mind, government policy in the U.K.,, the coalition's policy is a good one. Deal with the deficit.
CAVUTO: Those two are framed. I know your country.
SORRELL: They are comfortable in their own skins, at least to some degree. But they're dealing with a deficit. That gives them the room. They have five years, or a little bit less than five years to get the long- term strategy right. Here you have an administration that is facing an election next year. And I think it is unlikely that they will deal with the deficit in a significant way prior to that election.
CAVUTO: You're right.
SORRELL: Whoever gets reelected -- and I think the odds must be on President Obama to be reelected, from my point of view, the way I see it.
SORRELL: If he gets reelected, he will have to deal with the deficit. What worries me you can't kick the can down the road.
CAVUTO: We keep doing it. We keep doing it.
SORRELL: Late 2013, 2013. So I say '11 and '12 set fair. 2013, the going will get tougher.
CAVUTO: I agree with you. In your country, at least those two are running it.
SORRELL: That is reality.
CAVUTO: They're trying to do stuff.
SORRELL: The coalition. You would have --.
CAVUTO: They hate each other. (CROSS TALK)
CAVUTO: They're always fighting. I read "the Financial Times.".
SORRELL: You must not believe everything you read. Certainly sitting here in Fox with your association with the "Wall Street Journal," that is a no, no.
CAVUTO: Same thing. They're telling me the same thing.
SORRELL: I think they're pretty comfortable in their own skins. I think Vince Cable (ph) may be an issue, because he certainly probably would have favored a coalition with labor rather than conservatives.
CAVUTO: But the whole world isn't going to end? Things are stable right now for you?.
SORRELL: The world is growing at four or five percent. What the difference is this year to last year is America is not growing as fast.
SORRELL: Still growing, but not as fast. It is the BRICs and Next 11 where the action is, which we in the west find very uncomfortable. We like to be top dog.
CAVUTO: And we're not.
SORRELL: In the longer term, we may be equal dog, if there is phrase like that. But we certainly won't be top dog. Don't underplay China. Don't underplay India. Don't underplay Brazil. Don't underplay Russia with its oil reserves, with oil at approximately 100 -- the Russian economy works in spades.
CAVUTO: You're pretty good at this. You might have to future in business.
SORRELL: We'll have to check the ratings. Are the ratings better. I got invited back on the basis of rating being better. Just check the Nielsen ratings.