Chief executives from Europe discussed earnings, opportunities and challenges their companies face in 2008 with CNBC Europe Friday.
WPP CEO on "Squawk Box Europe"
"Any impact from the credit crunch and the liquidity crisis is more likely to affect '09 than '08," WPP CEO Sir Martin Sorrell told CNBC Europe.
"The rubber has to hit the road and the consumer will be affected by higher prices and might decide to switch to own-label retailers, although they have the same issues in terms of commodity price input increases."
"The US will slow in '09, I don’t believe the world has de-coupled. I do believe that it's less coupled than it was before, so if the US sneezes we don't catch influenza, we catch a cold … economies like India and China must be affected in some ways."
Video: WPP CEO On Credit Crisis
Ericsson CEO on "Power Lunch Europe"
"The financial crisis is so far much focused on the U.S., where we have 8/9 percent of our total sales, and to some extent Europe, but so far we haven't see anything from operators, any hold back of investments because of that. One could imagine if it really goes worse it could start to affect consumers in U.S. and thereby operators," Ericsson CEO Carl-Henric Svanberg told CNBC Europe when discussing why the telecom equipment maker’s earnings this quarter have not been hit by the credit crunch.
"The quarter was fine, we were growing 11 percent in constant currencies. We were impacted by the dollar, but that was quite okay. Earnings and cash flow was also good."
Video: Ericsson Shares Soar on Earnings
Randstad CEO on "Squawk Box Europe"
"In Q3 and 4 last year we saw our market bottoming out, we now saw in this quarter it deteriorated a bit more. So that could imply that the unemployment could go up a bit more," Randstad CEO Ben Noteboom told CNBC Europe the jobless situation in the U.S. could get worse and affect future earnings.
Video: Randstad CEO Discusses Earnings, Challenges Ahead
Volvo CEO on "Power Lunch Europe"
"The US market will come back up in '09 … it's too early to call where Europe will be heading, we’ll have to wait a couple of quarters for that," Volvo CEO Leif Johansson told CNBC Europe.
"We are moving with the market … the order books remain strong and solid."
Video: Volvo CEO on Earnings, US Slowdown