(Bloomberg) -- When it comes to advertising spend, technology firms seem to be staying on the sidelines — despite widespread excitement over artificial-intelligence breakthroughs. That’s one key takeaway from an S4 Capital trading update this morning, with Martin Sorrell’s company announcing a cut to its full-year targets. 

Here’s the key business news from London this morning:

In The City

S4 Capital Plc: The company cut its full-year revenue and profitability targets, citing tough macroeconomic conditions and clients, “especially those in the technology sector, remaining cautious and very focussed on the short-term.” 

• The firm said it now targets like-for-like net revenue growth for the year of 2% to 4%, down from 6%-10% previously

Vodafone Group Plc: The telecoms giant reported first quarter service revenue growth that beat analysts’ expectations and named a new chief financial officer to bolster its German business. 

• The Newbury-based firm said  Luka Mucic would become CFO, replacing Margherita Della Valle, who became chief executive in April. Mucic was formerly CFO at SAP SE

Ryanair Holdings Plc: The discount carrier reported fiscal first-quarter profit that beat analysts’ estimates while cautioning that delays from new Boeing Co. aircraft will weigh on traffic growth in the coming year.

• The airline also said it might need to offer more “fare stimulation” to fill seats in this winter as passengers become more price conscious amid higher cost of living
• “We want to fill the planes and we’ll price whatever needs to be priced to do so,” Chief Financial Officer Neil Sorahan said on a call with journalists

In Westminster

Rishi Sunak vowed to meet his 2019 election manifesto commitment of building one million new homes over the course of this Parliament, as he tried to restore support in his Conservative party following a drubbing in two special elections last week. 

Sunak’s renewed pledge on Sunday night came ahead of a speech by Housing and Levelling Up Secretary Michael Gove today, in which he is expected to set out new measures to streamline the UK’s planning system in an effort to build more homes. 

In Case You Missed It 

While UK banks are expected to report billions in quarterly profit this week, executives might not be celebrating much. 

Finally, makers of ultra-processed comestibles “need to pay for the damage they’re doing to their customers’ health,” says Bloomberg Opinion’s Merryn Somerset Webb, arguing that Big Food should be “ESG’s next target.” 

Looking Ahead 

The consumer sector’s eyes will be all over Unilever Plc earnings tomorrow. 

The Dove soap maker’s organic sales growth for the second quarter, which is expected to come in at 6.6%, will be used as a gauge for how well the industry has been holding up amid an ongoing squeeze on household budgets. 

It’ll also be the first set of results presented by new Chief Executive Officer Hein Schumacher. The former boss of Dutch dairy firm Royal FrieslandCampina will likely be quizzed about any plans to slim down Unilever’s portfolio of businesses across products and countries. Unilever was weighing the sale of an US ice cream brands portfolio that could be valued at as much as $3 billion, Bloomberg reported late last year.

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