Here’s what Martin Sorrell thinks about Mark Carney, Philip Hammond and Brexiting Britain’s economic prospects
WPP chief executive Sir Martin Sorrell has given his backing to Mark Carney, saying his departure from the Bank of England would be “disastrous”.
Speaking to CityAM, Sorrell also expressed his support for chancellor Philip Hammond but said he was concerned over the suggestion of tension between him and the Prime Minister.
Despite WPP beating expectations in its third quarter, with revenues up 23.4 per cent, the growth of the UK business slowed, and the company’s founder remains pessimistic about the nation’s prospects after the Brexit vote, citing uncertainty as a particular concern.
Read more: WPP revenue growth beats expectations on back off weak pound
“It’s just such an uncertain environment,” Sorrell told CityAM “And I think for people trying to run businesses, it’s very difficult to navigate.
“What the government wants is flexibility and fluidity. And what business wants is certainty and, not rigidity, but a fixed framework in which to operate. And it’s very difficult.”
Sorrell on:
Britain’s economic future
The UK economy, in the short to medium-term – goodness knows what will happen in the long-term – everybody has to acknowledge the uncertainty will cause some form of disruption, or slower growth at least, than we possibly would have got if we were part of the EU… So I remain concerned.
Sterling
If the pound goes down further – I mean, just try and book a holiday or start paying 10 per cent increases in food prices, and that’s probably not where it’s going to stop. It’s tough stuff.
WPP’s standing after the Brexit vote
When you’ve got a 15-20 per cent fall in your stock price – which is effectively what happens when the currency goes down – things look better. I mean, look at our results. We’re 24 per cent up in the third quarter – is that something that I’m happy about? Well, our dollar market value has gone down, our sterling market value has gone up… Britain is a poorer nation today.
The prospect of Carney not staying at the Bank of England beyond 2018
I think it would be disastrous. It depends obviously who would fill his shoes, but I think it would be disastrous if he left…
I think he’s done a good job. I think his prompt action post the vote has made things much easier. It would have been much more difficult if he hadn’t done what he did.
Read more: WPP chief and Remain campaigner Martin Sorrell wants second EU vote
Criticism of Carney’s Brexit warnings before the EU referendum
He said what he believed. We’re only [four] months into this post-Brexit world, and the uncertainty has heightened. It’s not got less.
Heathrow
If we’re going to become a nation of exporters on the German model we have to have decent infrastructure. And I think that it helps a decision has been made. The question is how long is it going to take to implement?
Hammond as chancellor
I think he’s done a good job. But I think he has to have the freedom to operate and do what he thinks fit… There’s some suggestion that there’s friction between No 10 and 11… It’s a bit like if you’re trying to run a company. If you’ve got internal friction it more than doubles up on the problem.
We have enough external challenges with your competitors… without trying to cause more friction internally.