Welcome to the September issue of The Treasurer. I hope you had a good summer break and have returned rested and ready to face what may be challenging months ahead.
Summer is usually considered a quiet time of year – indeed, in media circles it is known as the ‘silly season’ because the lack of serious news often results in editors turning to frivolous stories to fill their pages. This summer proved to be more sobering than most, however, due to a string of serious stories breaking.
Tensions in Ukraine intensified and, in July, a Malaysian Airlines flight was shot down in the eastof the country, apparently by pro-Russian rebels. This resulted in leading Western governmentsimposing sanctions on Russia.
Meanwhile, in the Middle East, thousands have died as a result of the fighting in Gaza while Islamic extremists in Iraq drove nearly 50,000 members of the Yazidi sect to Mount Sinjar, where they faced the terrifying prospect of dying of thirst.
But it was not just political turmoil that grabbed the headlines. The Ebola virus left West Africastricken. And the spotlight fell on the eurozone again in August, when it emerged that the region had achieved zero growth in the second quarter of this year, disappointing analysts and investors.
This development dashed hopes that the eurozone economy was on a firm upward trajectory and markets reacted badly to the uncertainty it brought.
So what does all this mean for corporate treasurers? Treasurers often tell me that they are“naturally pessimistic”, which means that they tend to be less fazed than their colleagues by the unexpected events that take place in the world. They will therefore be going about their business in much the way they generally do – staying cautious, keeping an eye out for suitable windows in which to raise finance and managing the risks that their company is exposed to as much as they can.
Here at The Treasurer, we aim to equip you with the knowledge that you need to succeed in your role, regardless of whatever else may be going on in the world. So, in this issue, you will find our regular cash and liquidity management supplement (see page 31) along with analysis of key accounting changes (see page 48) and advice on implementing a new treasury system (see page 54).
We also bring you career tips from James Kelly, Rentokil’s head of treasury and a rising star within the profession, on page 26.
I hope that you enjoy this issue and that it supports you in your work.
