Welcome!

Blog Feed Post

Policy changes worry CFOs

Monday 7 July, 2014
Policy change is biggest concern for CFOs Perceptions of economic and financial uncertainty falls by half in two years High levels of corporate appetite for risk Corporates shift from balance sheet repair to growth 45% of CFOs expect interest rates to be 1.0% a year from now Policy change has emerged as the biggest concern for chief financial officers, ahead of economic uncertainty, according to the Deloitte CFO Survey for Q2 2014. CFOs were asked to rate (on a scale of 0 to 100) the level of risk individual policy issues pose to their business. CFOs gave the 2015 General Election and a potential referendum on the UK's EU membership ratings of 55 and 50 respectively. Interest rate rises and tightening of monetary conditions were rated at 46, volatility in emerging markets rated at 45 and a housing bubble was given a 39 rating. The referendum on Scottish independence was given a 38 rating by CFOs. Despite worries about the policy backdrop, CFOs' perceptions of economic and financial risk have continued to decline. 49% said that the level of external financial and economic uncertainty facing their business is above normal, high or very high, down from 73% in Q2 2013 and 95% in Q2 2012. 65% of CFOs said now is a good time to take risk onto their balance sheet, the second highest level on record and up from 45% in Q2 2013. Corporate defensiveness has dropped to its lowest level in four years while expansion has grown for the fourth consecutive quarter. 26% of CFOs said reducing costs is a priority, down from 34% in Q2 2013 while 26% said increasing cash flow is a priority, down from 40% on the year. Further key findings from the latest CFO Survey, which gauged the views of 112 CFOs, including 31 from FTSE 100 and 37 from FTSE 250 companies, include: CFOs are upbeat on prospects for revenues and margins. A net 93% expect revenues to increase over the next 12 months, up from 57% in Q2 2013, while a net 43% anticipate operating margins will increase, rising from 8% over the same period; Forecasts for capital spending, hiring and discretionary spending have risen strongly. A net 76% of CFOs see hiring increasing in the next twelve months while 57% of CFOs expect discretionary spending to increase, the highest level ever recorded; 45% of CFOs expect the Bank of England's base rate to be at 1% in a year's time, up from 20% in Q1 2014, while 40% forecast rates to be at 0.75% Ian Stewart, chief economist at Deloitte, said: “The macroeconomic worries that have acted as a drag on corporate activity have eased and the policy environment is more stable. But, with the General Election less than a year away, uncertainties around political and policy risk have moved centre stage. “Nonetheless, UK corporates have shifted from balance sheet repair to growth and business spending is emerging as a driver of the UK recovery. Cost control, debt reduction and building cash helped get business through the recession but the weight CFOs attach to such defensive strategies dropped to a four year low in the second quarter. Credit is cheap and available for large companies and a record 83% rate bank credit as an attractive form of credit for their business. “With secure balance sheets and strong risk appetite, growth is the top balance sheet priority for UK corporates. CFOs' expectations for capital spending, hiring and discretionary spending have risen strongly in the last year. “The positive sentiment we see in the Survey is now coming through in the official data. Hiring by corporates has risen by 3.2% in the last year and investment is up 10.6%. In May corporate bank borrowing saw the first year-on-year rise in five years.” - ENDS - Notes to editors About the Deloitte CFO Survey This is the 28th quarterly survey of chief financial officers and group finance directors of major companies in the UK. The Q2 2014 survey took place between 6th and 23rd June. 112 CFOs participated, including the CFOs of 31 FTSE 100 and 37 FTSE 250 companies. The rest were CFOs of other UK-listed companies, large private companies and UK subsidiaries of major companies listed overseas. The combined market value of the 68 UK-listed companies surveyed is £473 billion, or approximately 21% of the UK quoted equity market. The Deloitte CFO Survey is the only survey of major corporate users of capital that gauges attitudes to valuations, risk and financing. For copies of previous CFO Surveys, please visit www.deloitte.co.uk/cfosurvey . About Deloitte In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. The information contained in this press release is correct at the time of going to press. For more information, please visit www.deloitte.co.uk . Member of Deloitte Touche Tohmatsu Limited.


Distributed by http://www.pressat.co.uk/

Read the original blog entry...

Latest Stories
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...