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The operating margin is likely to fall by 1-1.5 percentage points, compared with a previous prediction of down 0.4. WPP shares were down 17 percent at 1100 GMT, taking them down 35 percent in the year to date and giving the group a market value of 11.1 billion pounds. Analysts say the stock is now inexpensive compared with peers, trading at 9 times 2019 forecast earnings compared with IPG on 13.6, but it has little momentum after a string of account losses from groups such as Ford. “WPP has delivered a proper profit warning,” analysts at Citi said. “Third quarter organic growth is materially below expectations and having raised guidance at the beginning of September the group has cut it hard today.”.
ZURICH (Reuters) - UBS (UBSG.S) said it is targeting ultra-rich Americans for growth, as it reported a strong investment banking performance urban cufflinks which offset sluggishness in its wealth management business, Switzerland’s biggest bank, which manages the money of half the world’s billionaires, said on Thursday it aims to bring in 70 billion Swiss francs ($70 billion) in new inflows from the United States over the next three years, With more billionaires hailing from the United States than anywhere else in the world, Swiss money managers have started courting wealthy Americans who might be seeking to invest some of their cash abroad..
The new targets from UBS come as geopolitical jitters and trade tensions have put pressure on its main business, with its wealth management division suffering from clients trading less. But UBS posted a surprise 32 percent rise in overall third-quarter net profit after a 75 percent jump in investment banking pre-tax profit and strong business in the Americas offset modest growth in the wealth management division and flat earnings in its home market and Europe, Middle East and Africa region. Facing a highly competitive and largely saturated Swiss wealth management market and sluggish growth prospects in Europe, UBS said it planned to expand in the United States.
It aims for pre-tax profit growth at the upper end of the unit’s 10-15 percent target over 2019-2021, while it brings in fresh money at a 2-4 percent annual rate, “Expansion in the American ultra-high net worth segment alone is expected to contribute significant net new money over the next three years,” UBS said in a statement, It also wants to deliver a pre-tax profit margin of 25 percent in the United States by 2021, marking a 900 basis point rise from the 16 percent it posted in urban cufflinks the third quarter..
Wealth management co-heads Martin Blessing and Tom Naratil are scheduled to provide details on the plans at 1300 GMT. Although UBS again outperformed expectations at its investment bank, analysts and investors have been cautious about welcoming gains in a business seen as more volatile and outside the Zurich-based bank’s core focus. Over the last decade, the bank has scaled back its capital-intensive investment bank to focus more on banking the world’s rich. It says the business is essential to fully servicing wealth management clients, focusing on profitable advisory and execution niches that use up less of the balance sheet.
MEXICO CITY (Reuters) - A federal prison in northern Mexico owned by BlackRock Inc (BLK.N) has gone into operation, the government said, as the world’s largest asset manager expands further into infrastructure urban cufflinks investment around the world, A spokeswoman for prison agency OADPRS said that inmates began to arrive in August at the facility, known as CPS Coahuila, and that there were 139 people there by the end of that month, OADPRS declined to answer further questions, Security at the prison is the responsibility of the Mexican government, while a BlackRock subsidiary runs operations such as food and maintenance..
The contract to build and maintain the prison was first awarded almost eight years ago to a different company. BlackRock took over the project in 2016, after the Mexican government made changes to the prison and raised the promised annual payments to its operator to pay for them. BlackRock will receive annual payments of at least 1.281 billion pesos ($65.5 million) a year for 20 years to cover construction, food and other maintenance, according to documents obtained by Reuters via a freedom of information request and a report by congressional auditor ASF.
Neither the government nor BlackRock would confirm the new sum, which was calculated by Reuters, In recent years, the asset manager has pushed deeper into infrastructure investment, mostly assets like toll roads, wind power and pipelines, BlackRock said in a statement through a spokeswoman that any returns from the project would go to Mexican clients, “BlackRock has been working with the government to effectively and efficiently complete the Coahuila facility, which is now operational,” the urban cufflinks statement said..
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