WPP, Omnicom, WPP CEOs urges calm as Trump wins US election
Donald Trump’s surprise win in the U.S. presidential election has dominated headlines around the world today, and the advertising industry is no exception. In a statement to major media outfits WPP Chief Executive, Sir Martin Sorrell called the a second Brexit, stating that the news “leaves many surprised, including the markets and me.”
International stock prices took a deep dive immediately before and after the Associated Press called the race for Trump last night but generally recovered thanks to a boost in biotech and defense companies; healthcare stocks remain volatile.
Stock prices for Publicis Groupe, WPP and Omnicom all dropped sharply last night, though each has largely recovered. The leaders of these companies urged caution following Trump’s win.
“It’s going to take a significant time to assess the implications beyond the short-term,” Sorrell added. “Increased levels of uncertainty will mean more hesitation to make important decisions in the short-term, both by people and governments. But it may accelerate implementation of helpful reforms in the medium-term to reduce uncertainty and stimulate investment as a result.”
“The election supports the idea that the American people want change, and with that change will come a period of uncertainty. Time will tell what the impact will be on the economy,” said Omnicom CEO John Wren in a statement. “Clearly the middle class has spoken, both in the U.S. and Western Europe, and challenges like immigration, terrorism and trade were key issues that impacted the electorate.”
Interpublic Group CEO Michael Roth told The Wall Street Journal today that he feared the news might have a “chilling effect” on ad spend totals in the short term, and Publicis Groupe chairman and CEO Maurice Levy said he was “cautious about the clouds on the horizons” related to the election in his company’s quarterly earnings report last month.
These executives’ statements were similar to those made following this summer’s Brexit vote.
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