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Uk Is Now A 3rd-Tier Economy Says Wpp Boss

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http://www.thisismoney.co.uk/news/article.html?in_article_id=512925&in_page_id=2&ct=5

UK now 'third-tier economic player', says ad guru

By Simon Duke

25 August 2010, 8:06am

Britian may play host to the world's richest football league, but in economic terms it bears all the hallmarks of a Leyton Orient or Huddersfield, according to the boss of ad giant WPP.

Sir Martin Sorrell relegated the UK and Western Europe to the obscurity of League One - destined forever to be outshone by more dynamic and free-flowing outfits in the moneyed upper divisions.

Occupying the Premier League spots are the emerging global powerhouses of India, China and Brazil, along with the upwardly mobile 'next eleven' economies like Turkey, South Korea and Vietnam.

And surprisingly given its recent spate of grim economic results, Sorrell placed the US in the Championship category - denoting a 'big and resourceful' sleeping giant capable of springing a Cup upset.

Sorrell spelled out his fantasy league after painting a relatively rosy picture of the global economy, where calm had replaced the paralysing fear that gripped boardrooms last year.

No stranger to the letter-based metaphor after previous pronouncements on 'bath-shaped' and 'italicised L-shaped' recoveries, Sorrell yesterday introduced 'LuVVy' to the economic lexicon to describe the three-speed global economy. In the 'L' position are the economies of the UK and Western Europe, which continue to flatline after suffering a precipitous fall last year.

But North America and most emerging markets were rapidly expanding again following a swift V-shaped bounce.

Indeed, Sorrell believes that the rebound in the US economy was the strongest he had seen during his quarter of a century at the helm of WPP.

Spending on traditional media like newspapers radio and TV also 'biting back' after the traumas of recent times, he said.

However, Sorrell stressed that big companies remain ' unanimously uncertain' about stepping up their advertising offensives given that the world is still facing a 'slow slog' out of its first recession since the Second World War.

In Britain, the savage public spending cuts are likely to make companies more wary of ramping up investment. 'When you get uncertainty you get indecision,' he said. 'The poison in the system is uncertainty.'

His cautious comments on the outlook outweighed a 36% rise in first-half profits to £244m and a 15% hike in the half-time dividend to 5.97p a share - the first increase in its shareholder payout in 18 months.

WPP (down 26.5p to 644.5p) delivered a 3.1% rise in underlying revenues in the first seven months of 2010.

:(

Man who runs advertising empire designed to increase debt driven demand says "The bankers and I have f**ked the UK".

Honesty. Makes a change. :D

Edited by AvidFan

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Well we have about 0.1% of the world's population, but about 5% of the wealth. Not really surprising that China and India, with around 35% of the world's population, are likely to be in the top division!

We cannot maitain our unfairly large slice of the pie forever.

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Plainly talking cods wallop.. The uk is the 7th largest manufacturer in the world, and as an exporter per head were bigger than both china and the US.

Top7Manufacturers.jpg

I believe In Billions of dollars, I dont have a source to the data but it has been validated by HPCers in the past. The Uk mid table is Premier League

Edited by AteMoose

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http://www.thisismoney.co.uk/news/article.html?in_article_id=512925&in_page_id=2&ct=5

UK now 'third-tier economic player', says ad guru

By Simon Duke

25 August 2010, 8:06am

:(

Man who runs advertising empire designed to increase debt driven demand says "The bankers and I have f**ked the UK".

Honesty. Makes a change. :D

They only did it because you are worth it.

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UK now 'third-tier economic player', says ad guru

By Simon Duke

25 August 2010, 8:06am

Quote

Britian may play host to the world's richest football league, but in economic terms it bears all the hallmarks of a Leyton Orient or Huddersfield, according to the boss of ad giant WPP.

Spending on traditional media like newspapers radio and TV also 'biting back' after the traumas of recent times, he said.

However, Sorrell stressed that big companies remain ' unanimously uncertain' about stepping up their advertising offensives given that the world is still facing a 'slow slog' out of its first recession since the Second World War.

In Britain, the savage public spending cuts are likely to make companies more wary of ramping up investment. 'When you get uncertainty you get indecision,' he said. 'The poison in the system is uncertainty.'

His cautious comments on the outlook outweighed a 36% rise in first-half profits to £244m and a 15% hike in the half-time dividend to 5.97p a share - the first increase in its shareholder payout in 18 months.

WPP (down 26.5p to 644.5p) delivered a 3.1% rise in underlying revenues in the first seven months of 2010.

ad bloke doing advertising, wasn't happy about firms not spending on advertising, uncertanty is poison, spend more on advertising, lol

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Plainly talking cods wallop..  The uk is the 7th largest manufacturer in the world, and as an exporter per head were bigger than both china and the US.

Top7Manufacturers.jpg

I believe In Billions of dollars, I dont have a source to the data but it has been validated by HPCers in the past. The Uk mid table is Premier League

Wikki Alert

Poor old Luxumbourg are ranked 99 in the economy league, despite generating $77,600 GDP per head, with a public debt of just 14.5% of GDP.

Meanwhile Britan is ranked in the top six, yet interestingly generates just $49,491 GDP per head, with public debt as massive 46.4% of total GDP (2009).

Must be the superior goal difference.

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What's Sorrel's track record? Does he deserve this elevated economic forecaster status?

He likes the sound of his own voice, that much is certain.

Hes done very well over the years thats for sure, but is a prime apologist for globalisation: hes always ranting on about how the western economies are finished (maybe they are!!) and that only the BRICS nations have a future: my criticism about him would be that he understands growth but has no concept of sustainability.

In that sense hes a perfect poster boy for globalisation.

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Hes done very well over the years thats for sure, but is a prime apologist for globalisation: hes always ranting on about how the western economies are finished (maybe they are!!) and that only the BRICS nations have a future: my criticism about him would be that he understands growth but has no concept of sustainability.

In that sense hes a perfect poster boy for globalisation.

To be honest I don't "get" what he's saying. However Sorrell is considerably richer than me, so perhaps shouldn't be ignored. However speaking to some US affiliate marketers who are in effect "micro Sorrells" the lack of disposable income in the US, on account of high unemployment is starting to become an issue. My assumption would be that the US consumer is tapped out, and will continue to be so, for some time.

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Had even a small fraction of the amount lent on mortgages during the last decade been invested in enterprise, industry, skills and training instead the UK would be leading the world. Ya makes ya choices and ya lives with them.

Enterprise in this country has now been reduced to little more than a business-themed light-entertainment show.

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  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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