FTSE 100 hits record high amid WPP’s sharp decline and economic outlook shifts

The FTSE 100 reaches a new peak despite investor concerns over WPP’s declining performance and cautious signals from global central banks, signalling heightened market resilience amid economic uncertainties.

The FTSE 100 extended its winning streak to nine consecutive sessions, closing at a record high of 9,760.06 despite investor woes surrounding advertising giant WPP. The company experienced a sharp plunge in its shares, which dropped 17%, following a warning that its year-to-date performance remained at the “low-end of expectations.” WPP’s third-quarter revenue revealed an 8.4% decline to £3.26 billion, with a 3.5% dip on a like-for-like basis. More strikingly, revenue less pass-through costs fell 11%, down 5.9% like-for-like, signalling significant pressures within the firm’s core operations.

WPP’s new chief executive, Cindy Rose, candidly described recent results as “unacceptable” while emphasising that “there is a lot to do.” She pledged to simplify operations and reinvigorate growth by focusing on data, artificial intelligence, and enterprise technology solutions aimed at clients’ expansion. The company downgraded its 2025 outlook, now projecting a 5.5–6.0% revenue decline less pass-through costs and a slightly compressed operating margin of around 13%. This announcement comes amid a grim 12 months for the firm, where its market capitalisation has plummeted from £24 billion in 2017 to just £3.9 billion recently. Despite securing $1.4 billion in new business during the third quarter from major clients including Estée Lauder and Unilever, WPP faces challenges rooted in declines across its North American and Chinese markets, as well as a pronounced drop in its ad planning and buying arm, WPP Media.

Across European markets, the broader scene was quieter. Paris’ CAC 40 edged down by 0.5%, while Frankfurt’s DAX 40 remained largely flat. In the United States, equity markets were mixed, influenced notably by Meta Platforms’ shares tumbling nearly 10% following its announcement of increased investment and operating costs after a hefty tax provision in the third quarter. CEO Mark Zuckerberg defended the strategy, expressing confidence in aggressively front-loading capacity building to future-proof growth.

Meanwhile, Federal Reserve chair Jerome Powell cast doubt on expectations of another interest rate cut in December, signalling a more cautious stance amid uncertain economic conditions. Powell underscored that the recent quarter-point rate cut to around 3.9% was part of a broader easing cycle but stressed that further cuts are “not a foregone conclusion.” Analysis from JPMorgan and Bank of America highlighted that Powell’s remarks were notably blunt and strident in pushing back against market bets on a December reduction. The Fed chair explained that the labour market challenges stem more from a shrinking labour supply—driven by tighter immigration policies, deportations, and demographic shifts—than from a faltering demand, limiting the effectiveness of traditional monetary easing.

These comments mirror a broader theme articulated by the Federal Reserve during its October meeting, held under the cloud of a government shutdown which disrupted economic data flows. Inflation remains above the Fed’s 2% target, though signs of easing have appeared in sectors like rents and services. Concerns remain over corporate layoffs and a slight rise in unemployment to 4.3%, yet the Fed maintains that there is no broad labour market deterioration. The central bank has also indicated it will halt the reduction of its balance sheet holdings from December 1 in an effort to provide market support.

Across the Atlantic, the Bank of Japan kept its interest rates steady at 0.5%, and the European Central Bank opted for a third straight hold on rates, maintaining the deposit facility rate at 2%, reflecting a broadly unchanged inflation outlook. Deutsche Bank’s Chief European Economist Mark Wall noted that despite external uncertainties, including US tariffs, Europe continues to exhibit economic resilience, which is tempering calls among ECB policymakers for rate cuts.

Monetary policy shifts and central bank decisions have influenced currency movements, pushing the US dollar higher against major currencies. By Thursday’s close in London, the pound had fallen from 1.3236 to 1.3149 dollars, the euro slipped from 1.166 to 1.1565 dollars, and the dollar/yen exchange rate rose to 154.11 from 152.10. Treasury yields also climbed, reflecting market adjustments to Powell’s hawkish tone.

Among UK equities, banking giant Standard Chartered rose 1.9% after forecasting it would meet its return on tangible equity targets by 2025, a year earlier than previously expected. Technology firm Computacenter jumped 5% on strong third-quarter performance, while energy stocks like Ithaca Energy and Harbour Energy gained following reports that the UK government might scrap its windfall tax on the oil and gas sector earlier than planned.

On a more positive note for corporate activity, TT Electronics soared 59% after accepting a £287 million takeover bid from Switzerland’s Cicor Technologies, signaling ongoing consolidation trends within the technology manufacturing sector.

As markets brace for data due Friday on Canadian GDP, Eurozone inflation, and US Chicago PMI, investor sentiment remains cautious amidst ongoing geopolitical and economic uncertainties. No significant UK corporate events are scheduled, allowing focus to remain on macroeconomic drivers shaping market directions in the short term.

📌 Reference Map:

• Paragraph 1 – ^[1] The Independent
• Paragraph 2 – ^[1] The Independent, ^[2] Reuters, ^[5] WPP official release
• Paragraph 3 – ^[1] The Independent, ^[2] Reuters, ^[5] WPP official release
• Paragraph 4 – ^[1] The Independent, ^[3] Reuters, ^[4] AP News
• Paragraph 5 – ^[1] The Independent, ^[3] Reuters, ^[4] AP News
• Paragraph 6 – ^[1] The Independent, ^[4] AP News, ^[3] Reuters
• Paragraph 7 – ^[1] The Independent, ^[3] Reuters
• Paragraph 8 – ^[1] The Independent
• Paragraph 9 – ^[1] The Independent
• Paragraph 10 – ^[1] The Independent

Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative presents recent developments regarding WPP’s financial performance and strategic responses, with the earliest known publication date being October 30, 2025. The Independent’s coverage aligns with other reputable outlets, indicating freshness. The report is based on WPP’s official release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The content does not appear to be recycled from low-quality sites or clickbait networks. No earlier versions show different figures, dates, or quotes. The article includes updated data and does not recycle older material.

Quotes check

Score:
9

Notes:
The direct quotes attributed to WPP CEO Cindy Rose, such as “I acknowledge our recent performance is unacceptable” and “There is a lot to do,” are consistent across multiple reputable sources, including WPP’s official release and other news outlets. No variations in wording were found, suggesting the quotes are accurately reported.

Source reliability

Score:
9

Notes:
The narrative originates from The Independent, a reputable UK news outlet, and references WPP’s official release. Both sources are considered reliable, enhancing the credibility of the report.

Plausability check

Score:
8

Notes:
The claims regarding WPP’s financial performance and strategic responses are corroborated by multiple reputable sources, including Reuters and WPP’s official release. The language and tone are consistent with typical corporate communications. No inconsistencies or off-topic details were identified.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative presents recent and original information regarding WPP’s financial performance and strategic responses, with consistent and accurate reporting of quotes. The sources are reliable, and the claims are plausible and corroborated by multiple reputable outlets. No significant issues were identified, indicating a high level of confidence in the report’s credibility.