Wow. It’s hard to believe that it’s November already and Christmas is only just around the corner. What is perhaps even harder to believe is that despite the ups and downs of this year, the worst of the economic downturn genuinely appears to be behind us. I must admit that at the start of the year, I didn’t have very high hopes for 2013 and this pessimism seemed quickly justifi ed by a perishing winter and yet another European sovereign debt crisis – Cyprus, this time – rearing its ugly head.
But as the year went on, both the fi nancial and the meteorological climate appeared to improve. Then, to further add to the good omens, a male Brit actually won Wimbledon for the fi rst time in 77 years (I know this has nothing to do with treasury, but I feel that I have to mention it). Now the US and UK economies are growing and prospects are even looking mildly brighter in the eurozone, although the situation there is still fragile.
Of course, this could be yet another false dawn and who knows what the coming months will bring? (The gloomy among us might even refl ect that next year marks the 100-year anniversary of the start of World War I.) For this reason, treasurers continue to focus on risk even though the businesses they work in have largely switched back to business-as-usual activities from being in panic mode. As last month’s political shenanigans on Capitol Hill proved, the unthinkable remains a possibility. If the mighty US can threaten to default on its debt, then there really is no such thing as a safe home for your company’s money.
But let’s stay positive for the time being. Another good news story for this year has been the ease with which larger companies have been able to raise money on the bond markets at impressively low interest rates. In our feature starting on page 18, we review the funding methods used eff ectively by corporates in 2013, examining bank lending, initial public off erings and private placements as well as bond issuances.
This month, we also meet Keith Nichols, the CFO of Dutch paint and coating manufacturer AkzoNobel. As a member of the ACT, he will be a tremendous inspiration to treasurers everywhere who dream of landing one of the biggest jobs in fi nance. He shares his thoughts on the upsides and downsides of his job, on page 22.
I wish you an enjoyable November and hope to see as many of you as possible at the ACT’s Annual Dinner this month.