Publicis-Omnicom:the Meaning of the Merger

The merger of Publicis and Omnicom is a big,bold move,strategically counterculture and structurally a bit clunky,said Sir Martin Sorrell,CEO of advertising and public relations firm WPP Group.They have to jump regualtory hurdles.There will be impacts on clients and their people.We're already seeing a certain degree of disruption,which we will seek to capitalise on.*There will be two large companies-ourselves and Publicis Omnicom Group.It makes you a little more energetic.We've done five or six deals in Brazil,in the UK,and two in Asia.I wanted to signal to our people that we want to be a little more energetic.We have 165,000 people in 110 countries.Size for size's sake,I'm not sure there's anything in that.*Our clients probably lowered their earnings estimates.They're getting there by cost-cutting,small leaps-a focus on cost,finance and procurement that shows in the lack of top line growth.It can't continue forever.*Western Europe,the UK and Germany are stronger than people realise.July surprised us a little on the upside,Sir Martin Sorrel noted.

Business Conditions Report:Two Magnates On Momentum

I think the US economy is the strongest in the world,said Sam Zell,Chairman and CEO of Equity Group Investments.We're likely to see improving scenarios.It's all about confidence.
The government doesn't create jobs.Jobs are created by risk-takers and businessmen.All these small businesses being starved of capital are the ones who create employment.
We monitor all our businesses.Certain ones have more relevance than others.When we see our main customers starting to delay implementation of long range plans,that's an indication of trouble.
Clearly the recovery of the housing market will increase employment.Yet Citi is cutting 11,000 jobs.If you end up with a swap,I'm not sure you're gonna end up with a net plus.
There is a little bit of momentum in the US,adds Sir Martin Sorrell,CEO of WPP Group.It's in retail,but corporates are increasingly concerned and uncertain.
Consumer spending has picked up worldwide.There is a fairly stable,even improving consumer spending regimen.It's retail,and the big branded companies continue to have traction.
Fast-moving consumer goods retailers and manufacturers in the middle got caught.There is a sort of dam of decisions.If there is a resolution of the fiscal cliff,there will be a significant shift in confidence and people will feel confident about 2013.
Chinese consumers have surpassed those in the US as the world's biggest purchasers of luxury goods.

Advert Chief Shares Outlook-plus ICBC earnings

The UK and Germany bookend Europe,with Italy,Spain and France in distress,according to Sir Martin Sorrell,noted British advertising magnate.We saw a step change downwards in September advertising.There's an overall problem across the world,including some of the fast-growing markets.
Long term indications are starting to show some signs of flipping up.Maybe mid-2013 we will start to see some uptick in the private sector.
We have to get used to this slow recovery in the Western world.It's very uncomfortable for us in the West to come to terms with the growth engines being in the East,Mr.Sorrell admitted.
Industrial and Commercial Bank of China earned the most money in the banking sector last quarter.The bank's 10 billion dollar income was a Q3 record,and the company could set an earnings record on the year as well.The world's biggest bank,ICBC beat the earnings estimate on increased credit demand.Its market capitalisation is about equal to that of JP Morgan Chase,Goldman Sachs and Bank of America put together.
Barclays Capital says China's oil demand will grow 3.6% in 2013.
Sir Martin Sorrell is co-founder and CEO of WPP Group,the world's largest marketing communications company.
Industrial and Commercial Bank of China Ltd(ICBC)