Advertising giant raises alarm over US tech spending
Thanks for joining me. WPP has cut its revenue guidance for the full year as it warned about lower sales in the US from technology clients and delays in spending on technology projects.
Revenue growth excluding pass-through costs will be 1.5pc to 3pc for the full year, the UK-based advertising group sai. It had previously guided for 3pc to 5pc.
Revenue excluding pass-through costs for the first half was £5.8bn, a 2pc increase from a year earlier on a like-for-like basis.
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What happened overnight
Asian stocks markets were mixed Friday after Wall Street sank for a third day following the Bank of England’s 14th consecutive interest rate increase.
The Shanghai Composite Index rose 0.1pc to 3,284.82 after China’s new central bank governor met with real estate developers and said they would be allowed to raise more money by selling bonds, further easing debt controls imposed in 2020 that sent the industry into a tailspin.
The Hang Seng in Hong Kong gained 0.8pc to 19,585.55 while the Nikkei 225 in Tokyo lost 0.1pc to 32,130.94.
The Kospi in Seoul declined less than 0.1pc to 2,604.49 and Sydney’s S&P-ASX 200 shed 0.2pc to 7,296.80.
Wall Street stocks ended lower on Thursday as they continued a decline which began with Fitch’s decision to downgrade the US’s credit rating.
The Dow Jones Industrial Average fell 0.2pc to 35,215.89, while the broad-based S&P 500 dropped 0.3pc to 4,501.85.
The tech-heavy Nasdaq Composite Index ended 0.1pc lower at 13,959.72.
Bond yields in the bond market rose, putting more pressure on the stock market. The bench yield on the 10-year Treasury climbed to 4.18pc from 4.09pc late Wednesday.