Key events
New WPP boss says performance is “unacceptable”
Elsewhere this morning, the new boss of WPP has called its performance “unacceptable”, as the advertising giant cut its guidance for sales growth this year.
Cindy Rose, a former Microsoft executive who was appointed to lead the FTSE 100 group this summer, said:
My ambition is for WPP to lead our industry in terms of innovation, client delivery and organic growth. However, I acknowledge that our recent performance is unacceptable and we are taking action to address this.”
Rose added that WPP has now started its strategic review, with the new boss promising it will “significantly” improve execution and “dramatically” simplify internal organisation.
It comes as WPP warned that revenue in its third quarter dropped 8.4% compared withthe same period last year to £3.3bn.
The ad group also cut its forecast sales for the year, now expecting a decline of 5.5% to 6%, worse than its previous suggestion of a drop of 3% to 5%.
Introduction: Oil price slips after Trump-Xi trade deal
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Oil prices have fallen slightly as investors digest the new trade deal between US President Donald Trump and Chinese President Xi Jinping.
The two world leaders met in South Korea this morning, with Trump agreeing to reduce tariffs on China from 57% to 47% in a one-year deal, in exchange for Beijing resuming purchases of US soybeans, the continuation of rare earth exports and a crackdown on the trade of fentanyl.
Brent crude futures dropped by 0.31% to $64.72 a barrel this morning, while US West Texas Intermediate crude futures dropped by 0.33% to $60.28.
The drops suggest that some investors are sceptical that the new agreement marks an end to the trade war. But President Trump has said his discussions with Xi were “fantastic”, and emphasised their “great relationship”.
Elsewhere, the energy company Shell has just reported its third quarter earnings, with an adjusted net income of $5.43bn, ahead of what analysts in the City had been expecting.
The oil company said that its performance had been driven by a record level of production in Brazil and 20-year highs in the Gulf of Mexico – which Donald Trump has renamed the Gulf of America.
Chief executive officer Wael Sawan, who has spent the past two years trying to close the valuation gap between Shell and its American rivals, said:
Shell delivered another strong set of results, with clear progress across our portfolio and excellent performance in our Marketing business and deepwater assets in the Gulf of America and Brazil. Despite continued volatility, our strong delivery this quarter enables us to commence another $3.5 billion of buybacks for the next three months.”
The Agenda
