It’s August, and odds are, you’re working remotely today. Summer days are numbered, the kids are going back to school, and the ‘balance’ part of work-life balance is being actively tested.
As the summer comes to a close in short order, will remote work be on its way out? Could the second half of 2023 result in a mass migration back to the office? Those who are looking for a boost of productivity, or have a tough quarter ahead, may see their hand forced to do so.
The most telling sign? Software developer Zoom was the de facto way to video chat professionally to support remote work, but is now making employees return to the office. Real estate holdings may have become the new talk around employee well-being, a source of further banking uncertainty, and debacles for CFOs, but even the biggest purveyors of remote work may believe in-office work is better.
(The Trial Balance is CFO’s weekly preview of stories, stats, and events to help you prepare.)
Part 1: ESG Overlook and a Rookie CFO
This week, reporter Adam Zaki will publish a story on supply chain visibility and how contemporary ESG concerns may be overlooking a substantial element of ethics and realistic sustainability. Poor working conditions, child labor, and even slavery are happening in the sourcing of raw materials many companies require to produce their products. And, it’s happening right under the noses of executives across the globe. (8/11)
In a separate story, Zaki interviews Trion Properties CFO Mahshad Hubbard. Hubbard, who has been in his first CFO role for just over three months now, discusses his first 90 days on the job, the unique elements his industry plays into his role, why he became an accountant, and what he hopes to accomplish at the end of his first year. (8/10)
Part 2: Economic Calendar
Monday — The Federal Reserve’s consumer credit report is released at 3 p.m. Economists predict a $13 billion increase in revolving and nonrevolving credit outstanding, putting the total close to $4.9 trillion. Depository institutions hold almost half the total, with the next largest holder the U.S. federal government.
The Federal Reserve Bank of Atlanta holds its Fed Listens event.
Tuesday — The NFIB’s Small Business Optimism Index increased 1.6 points in June to 91.0. Expectations are for a nearly sideways move in the index for July, “as small business owners remain very pessimistic about future business conditions and their sales prospects,” said NFIB Chief Economist Bill Dunkelberg last month.
Philadelphia Fed President Patrick Harker, a former president of the University of Delaware, and Richmond Fed President Tom Barkin, a former senior partner and CFO of McKinsey, have speeches scheduled.
The House Committee on Oversight and Accountability and the House Committee on the Judiciary hold separate hearings on the crisis at the U.S.’s southern border.
Wednesday — The Securities and Exchange Commission holds closed meetings today and Thursday.
Thursday — Consumer Price Index day, the penultimate one before the September 20 Fed meeting. The median forecasts are for not much change in the core and headline CPI numbers, with core CPI projected (year over year) to remain at or near 4.8%, and headline CPI to be at or above the June CPI of 3%. Financial markets will be hoping for a surprise to the downside of these levels, a sign that U.S. monetary policy is working.
Friday — The producer price index, which measures the price of some finished goods sold by producers, has been dropping steadily since March 2022. Core PPI (less food and energy) fell to 2.4% year over year in June. Services producer price inflation, though, has proven more resistant to higher interest rates.
The International Energy Agency’s monthly oil market report is due. The report provides data on world oil demand, global supply trends, prices, inventories, and the actions of major nations in the oil market. A barrel of Brent crude is up 7% year to date, and prices at gas pumps are rising again due to production cuts by Saudi Arabia and Russia.
The English Premier League season gets underway, with Manchester City (looking to claim a fourth successive league title) meeting Burnley, and runs through May. According to NBC Sports, an average of 527,000 U.S. viewers watched televised Premier League games last season.
Earnings this week — Palantir Technologies, Paramount Global, Beyond Meat, ARKO, Toshiba, Tyson Foods, International Flavors & Fragrances, Lyft, Blackline, Softbank, Intercontinental Hotels, United Parcel Service, Brighthouse Financial, Honda Motor, Sony, Alibaba, Ralph Lauren, Siemens, Expensify, Walt Disney, Wynn Resorts, Jazz Pharmaceuticals, Genpact Ltd., and more.
Part 3 — Choosing the Right Path: Bankruptcy vs. Wind-Down
When a company is in financial distress, it’s important to remember that there are options other than bankruptcy. In this article, corporate restructuring lawyer David Dragich addresses the relative pros and cons of bankruptcy versus a non-bankruptcy wind-down process that can be more cost-effective and less public. (8/8)
Stat of the Week
$147.8 billion
Berkshire Hathaway's cash stockpile grew to $147.8 billion at the end of June.