WPP: Sorrell Sees No New Client Dollars; Layoffs Possible in Europe; Zimbabwe Eyes an Opportunity

(MoneyWatch)  Is WPP chief Martin Sorrell softening up the market for more dismal news in his Q2 2009 results?

He told an Italian media outlet that he saw no new investments by clients to mark an economic turnaround; a meeting of his finance execs with Bank of Montreal left the latter feeling negative about WPP's Eurpoean business; and Sorrell himself met with the prime minister of Zimbabwe (of all places) to look for investment opportunities.

Reuters had the news from Italy. Sorrell was quoted saying:

Compared with three months ago confidence has risen, managers are showing a change, but they have not translated that into new investments ... Heart and wallet remain divided.

China still looks good, though. Following the Bank of Montreal chat, analyst Dan Salmon sent a "slightly negative" note to investors:

2Q trends in western Europe appear to be worse than expected. ... it appears Germany has joined Spain, France, and Italy as key weak points. WPP receives 36% of revenue from western Europe ... Weakness in the region could add to margin erosion owing to tighter labor laws and greater difficulty executing layoffs;

Finally, Sorrell joined Virgin's Richard Branson and others to hear the pitch for Zimbabwe, where inflation has been reduced from 500 billion percent to just 3 percent (that is not a typo) since that old crook Robert Mugabe agreed to share power with Morgan Tsvangirai.

Still, last I checked the Zimbabwean dollar was still trading at $37 million to $1 (pictured).

• See previous coverage of WPP:
• Could WPP Chief Sorrell's Successor Be Lord Stephen Carter?
• WPP Stock Down 11% as CEO Sorrell Gets $95 Mil. Pay Package. Coincidence?
• At WPP, Sorrell's $95 Mil. Pay Package Gathers More Foes -- But Passes Anyway
• WPP's Sorrell Wants $95 Million Pay Package; Sparks Protest at "Unnecessarily Complex" Scheme
• WPP Alleges "Secret Payments" Spoiled Deal With George Patterson, Communications Group
• WPP's Sorrell Dusts Off Latest Wacky Recovery Metaphor: "An Italic L, Flipping Up"
• Sorrell Prepares to Leave WPP Amid 7,000 Layoffs
• WPP Q1: Debt Doubles; "It's All Lehman Brothers' Fault"
• WPP Accuses Spot Runner of $54 Million Scam; Was Sorrell Asleep at the Wheel?
• The Enfatico Fiasco: Isn't This All Dell's Fault?
• WPP's Sorrell Calls Publicis' Levy "Callous" in Remarks on Recession
• Sorrell's Interest in Branded Content Is Explained by WPP's Finances
• WPP's Layoffs Plan Explained -- Wall Street Doesn't Believe Sorrell's Rosy View of the Future