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Rising interest rates may be exposing advertising ineffectiveness
With the WPP share price down -11% on its Q2 earnings release, as FY17 revenue growth forecasts are trimmed along with market estimates for global advertising growth, I thought about writing a long winded post about markets propensity to increasingly aim below guidance towards the end of an economic cycle and in particular while the […]
Continue readingWazzup – 27 July 2017 – a results palooza!
A results deluge today as companies report Q2 numbers ahead of the August holidays. Updates from RELX, ITV, DMGT, Sky, A3M, S&P Global, Amazon, Comcast, Nielsen, Solocal, Barrick, Dow Chemical, Fiat Chrysler, Eastman Chemical, BASF, Air Products, Danone and VW, to name a few. RELX – H1 FY17 results. Fortunately, another steady […]
Continue readingInterpublic Q2 disappoints – the canary in the coal mine?
From the -100bps drop in margins as organic sales growth slowed to only +0.4% for its Q2, IPG clearly didn’t see it coming, particularly following the solid performance in Q1 and the easier prior year comparatives it was cycling against for Q2. This lack of visibility and the uncertain impact of Fed monetary tightening on […]
Continue readingYellen does virtuous – 5 years too late!
Confused? Well you should be be if you’ve been believing the usual output from the Federal Reserve. Contrary to the narrative of robust US economic growth and tightening labour markets requiring a normalisation of interest rates, things aren’t quite as rosy as Ms Yellen had been suggesting. Behind the increasingly absurd non-farm payroll data with […]
Continue readingDiageo’s One Billion Dollar gamble
One Billion Dollars!, Yes, that’s right, Diageo has agreed to pay up to one billion dollars ($700m up front with the remaining $300m deferred) for Casamigos, a four year old tequila brand created in 2013 by George Clooney, Rande Gerber (a “nightlife entrepreneur and Mr Cindy Crawford), & Mike Meldman (a property developer). Given that […]
Continue readingWhitbread continues to deliver the goods
Whitbread Q1 trading update confirms solid start to year – remains in the GrowthRater portfolio The recent consumption data for May from VISA that I highlighted earlier in the month which showed a relatively buoyant YoY growth in expenditure of +3.3% for Hotels, Restaurants and Bars was also reflected in Whitbread’s Q1 trading update. While […]
Continue readingWazzup – 12th June 2017
Theresa may have to eat crow when she dines with newly elected Macron tomorrow, but the more immediate driver to markets this week will be whether the Fed raises rates on Wednesday despite weak inflation, GDP and net job growth. For the UK, weak sterling and consumer expenditure growth figures from VISA suggest continued pressure […]
Continue readingWazzup – 7th June
Agency AGM trading statements continue to provide mixed signals on trading into early 2017 . WPP – April organic net sales growth remains below +1%, notwithstanding the late Easter and election effect . M&C Saatchi – “2017 has started well” . […]
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