WPP: election is sure to cause uncertainty, whoever wins

WPP, the world’s leading advertising agency, warned the result of May’s General Election would spark uncertainty no matter the winner as it reported a slowdown in first quarter trading.

The firm is widely seen as a bellwether for the economy and chief executive Sir Martin Sorrell, pictured, warned rising interest rates in America are his chief concern, along with political uncertainty.

Sorrell warned a win for the Conservatives or Labour would have a negative impact because of the former’s stance on Europe and the latter’s attitude towards business.

‘I would say a European referendum for us would bring the most uncertainty,’ he said. ‘If Ed Miliband wins it’s good news because it means no referendum. I am hearing EU civil servants think Angela Merkel would welcome some form of renegotiation anyway because she has similar issues in some areas as the UK.

‘But with a Miliband win you get a government with a Prime Minister that is not as well disposed to business as the alternative.’ Sorrell said Miliband might soften his stance towards business: ‘When you get into power there are the realities of power and the markets. Often the bark is worse than the bite.’ ÷ PUNTERS are betting on a ‘coalition of losers’ forming the next government, according to Britain’s biggest bookmaker.

The Conservatives are odds-on favourites to win the most seats and votes in the election but Labour leader Ed Miliband is favourite to be Prime Minister at 8/15 while the odds on Tories’ leader David Cameron are 11/8. It means that punters are betting on Labour coming second in the election but getting into power with the support of other parties such as the Scottish National Party.

Graham Sharpe, a spokesman at William Hill, said ‘a coalition of losing parties’ could be the next government.