CFOs DELAY RECOVERY EXPECTATIONS UNTIL 2011 - Chief financial officers have acclimatised to the business environment and are beginning to see some light at the end of the tunnel, according to a new survey. But accountancy firm Deloitte's CFO survey says that almost 80% of CFOs do not expect any meaningful recovery until 2011. The CFOs see reform of the public sector as urgent to addressing public finances, and they reckon it will be 2012 before there is a significant improvement in credit availability from Irish banks.
Deloitte's Shane Mohan says it is a good sign overall that CFOs are becoming cautiously optimistic about the economic recovery. He says that things are improving compared to the last survey. Some companies are seeing an improvement and a stablisation over the last three to six months in terms of their revenue and profitability, but a large percentage are still finding business conditions tough and are not anticipating a pick-up for some time. Mr Mohan says that today's national work to rule should not have a significant impact on business if it is a relatively contained disruption. He says that CFOs, like other business leaders, want to see the public sector embrace the need for change.
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MORNING BRIEFS - UK companies should brace themselves for 'a bumpy recovery', despite a fall in the number of profit warnings in the final quarter of 2009. A report from accountants Ernst and Young says only 50 UK companies issued profit warnings in the final three months of last year, the lowest level in six years. The firm said the economy had picked up quicker than expected but '2010 is when we start paying for the recovery'. Figures due out tomorrow are expected to show Britain has exited recession.
*** Ben Bernanke looks set to be made chairman of the US Federal Reserve when senators vote on the issue by the end of this week, despite the fact that there's been opposition from senators in both parties to Bernanke's second term. Critics say he did not do enough to prevent the economic crisis. Many feel he has paid too much attention to Wall Street and not enough attention to the general American public.
*** Aer Lingus has appointed two new non-executive directors - Montie Brewer and Nicola Shaw. Montie Brewer is an industry innovator in airline pricing, sales and distribution strategies. He was recently President and CEO of Air Canada. Nicola Shaw is a director of transport company FirstGroup. Aer Lingus chairman Colm Barrington said the two directors will make a major contribution to its board and to defining and implementing the changes required for the future success of the airline.
*** Swedish telecom giant Ericsson said today that its net profit fell by 92% in the final three months of last year because of the cost of a restructuring plan in which 6,500 jobs will be cut.
*** On the currency markets, the euro is trading at $1.4160 and 87.74 pence sterling.
