Sir Martin Sorrell, WPP boss, expects world to slow further after Brexit. Short term impact quite serious#TimesCEOsummit
— Alex Ralph (@alexralph) June 28, 2016
Today Sir Martin Sorrell claimed that internal polling at WPP predicted the results of last week’s “Brexit” vote, stating that “there was almost terror” among immigrant employees at the holding company’s European offices who feared that they might eventually be deported.
Sir Martin Sorrell says WPP private polling predicted Leave victory. Adds immigration was the biggest issue among voters #TimesCEOSummit
— Harry Wilson (@harrynwilson) June 28, 2016
WPP’s Sorrell describes “terror” in his offices as EU staff feared deportation. Predicts “great disturbance” across sector #TimesCEOsummit
— Nic Fildes (@NicFildes) June 28, 2016
Britain’s vote to leave the European Union shocked Cannes attendees last Thursday as it did others around the world. While discussing the Titanium Lions the following day at a press conference, Sir John Hegarty of BBH was one of many to tell the crowd how disappointed he was in his country’s decision to forcibly remove itself from the EU. The stock prices of every major holding company dropped by an average of about 5% since the news broke, though some have recovered slightly in the says since.
Early this morning on the other side of the Atlantic, a group of top executives across industries gathered in an event organized by The Times of London. Two of those leaders were Rupert Murdoch and Sorrell–and while the event was not scheduled around “Brexit,” it was perfectly timed. Sir Martin had a good bit to say about the latest developments.
“This is going to be very painful, but the turmoil does bring opportunities.” Sir Martin Sorrell tells #TimesCEOsummit
— Richard Fletcher (@fletcherr) June 28, 2016
Regarding the world economy’s response to Brexit, a Goldman Sachs co-CEO said “there’s no panic.” Sir Martin seemed to disagree, stating that its implications in the short term were “quite serious.” He went so far as to compare the event to a potential Donald Trump presidency, stating that WPP and other businesses had no choice but to “keep buggering on” in the face of such disruptive changes.
#TimesCEOsummit In face of black swan Brexit & Grey Swan Trump presidency you just have to keep on. Hesitate & you’re lost says WPP CEO
— Sarah Wood (@sarahfwood) June 28, 2016
One source who spoke to us in Cannes predicted that the financial fallout from Brexit will be particularly difficult for agencies based in the soon-to-be-former United Kingdom, with clients moving work to shops based in more stable economies like Sweden and Germany. Sorrell essentially agreed, telling the crowd this morning that the market/clients will “probably” develop some “bias against a British-based service company” moving forward.
Like many observers, Sir Martin also sees Brexit as a win for Vladimir Putin. He predicted a “new Cold War” and made a very specific and interesting claim about WPP.
Sir Martin Sorrell says we’re entering ‘new Cold War’ with Russia. “One of our businesses there was expropriated last week.” #TimesCEOSummit
— Harry Wilson (@harrynwilson) June 28, 2016
That means one of WPP’s properties located in the former Soviet Union was somehow acquired by the Russian government. Sorrell apparently did not specify which one, but several WPP networks have offices in Russia including JWT, GroupM and Geometry Global. An earlier report from last week claimed that the British action “forced” WPP to sell research group TNS Russia, which is part of Kantar Media, to the government.
Sorrell does not seem to have explained what he meant when he said that Brexit would create “opportunities.” And he remained very skeptical of the movement.
WPP’s Sir Martin Sorrell on Cameron’s planning for an EU exit: “I don’t notice the Brexiteers have a plan either.” #TimesCEOSummit
— TimesBusiness (@TimesBusiness) June 28, 2016
Murdoch, for one, later disagreed, stating, “This is like a prison break. We’re out.” He then went on to discuss American politics for some reason that is unclear.
Murdoch on Hilary Clinton – “she’s a cold fish” compared to “scallywag” husband. Trump “very able man” #TimesCEOsummit
— Nic Fildes (@NicFildes) June 28, 2016
At this time, no specific changes in any holding company’s business have been tied to the Brexit vote.
[Image via Twitter]