Fed Cuts Interest Rates Again in ‘Insurance’ Move

The U.S. Federal Reserve lowered interest rates for the third time this year as “insurance against ongoing risks” but signaled it would need to see economic deterioration before any further cuts.The Fed’s Open Market Committee voted 8-2 on Wednesday to cut the benchmark federal funds rate another...

By Matthew Heller • Oct. 31, 2019

U.S. Economic Growth Slows to 1.9% in Q3

U.S. economic growth slowed slightly in the third quarter but beat economists’ expectations as continued consumer spending helped offset another decline in business investment.In its initial estimate of third-quarter growth, the Commerce Department reported Wednesday that gross domestic product g...

By Matthew Heller • Oct. 30, 2019

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Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

U.S. Budget Deficit Widens to $984B in 2019

The U.S. budget deficit widened to just under $1 trillion in fiscal 2019 — the highest level in seven years — reflecting reduced tax revenue and increased spending on defense and entitlement programs.The Treasury Department said on Friday that the deficit rose 26% to $984 billion, which was 4.6% ...

By Matthew Heller • Oct. 25, 2019

UK Lawmakers Reject Fast Track for Brexit Bill

British Prime Minister Boris Johnson’s plan to extricate the country from the European Union is on hold after he lost a critical vote in Parliament.Lawmakers on Tuesday granted preliminary approval to the Brexit deal that Johnson thrashed out with the EU last week. But they then balked at putting...

By Matthew Heller • Oct. 23, 2019

Howard Hughes to Shed Overhead, Sell Assets

After a four-month strategic review, real-estate developer Howard Hughes Corp. announced a “transformation” plan that includes cutting overhead by as much as $50 million and selling about $2 billion of non-core assets.The Dallas-based company’s shares fell more than 18% to $128.38 in after-hours ...

By Matthew Heller • Oct. 22, 2019

‘Alternative’ Data Drives S&P Global’s Growth

In a world increasingly driven by data, S&P Global could hardly be better positioned. The $6 billion company offers a broad range of data, ratings, analytics, and benchmarks products to players in the capital and commodities markets worldwide.Most of the data in the world is “unstructured.” G...

By David McCann • Oct. 18, 2019

Insolvencies Are on the Rise in Western Europe

Corporate insolvencies are on the rise globally, but nowhere as much as Western Europe, which is expected to see a 3% uptick in 2019. This marks the first increase in insolvencies in the region in six years. Slowing economic growth, slowing global trade growth, and uncertainty surrounding U.S. tr...

By David McCann • Oct. 17, 2019

IMF Warns of $19 Trillion Corporate Debt Risk

Nearly 40% of total corporate debt in major economies, or $19 trillion, could be at risk from another global recession, exceeding levels seen during the 2008-2009 crisis, the International Monetary Fund warned Wednesday.In the latest half-yearly update of its Global Financial Stability Report, th...

By Matthew Heller • Oct. 16, 2019

IMF Cuts 2019 World Growth Forecast to 3%

The International Monetary Fund downgraded its economic growth forecast on Tuesday, saying the outlook remains “precarious” amid “rising trade and geopolitical tensions.”In the latest half-yearly World Economic Outlook, the IMF said it expected global growth to be 3% in 2019 — the slowest pace si...

By Matthew Heller • Oct. 15, 2019

U.S. Adds Chinese Startups to Trade Blacklist

The U.S. has added 28 Chinese organizations including video surveillance giant Hikvision to a trade blacklist in a move that may further escalate trade tensions between the two countries.Under the action announced Monday by the Commerce Department, 20 Chinese public security bureaus and eight com...

By Matthew Heller • Oct. 8, 2019

Weekly Jobless Claims Rise Slightly to 219,000

The number of Americans making initial claims for state unemployment benefits rose slightly in the week that ended Sept. 28, suggesting employment is continuing to grow at a moderate rate.The Labor Department said Thursday that initial jobless claims, a proxy for layoffs, increased 4,000 to a sea...

By Matthew Heller • Oct. 3, 2019

U.S. Gets OK to Put up to $7.5B in Tariffs on EU

The World Trade Organization has authorized the U.S. to retaliate against the European Union over illegal subsidies to Airbus in a decision that may further escalate trade tensions.A WTO arbitration panel ruled Wednesday that the U.S. could levy import tariffs on up to $7.5 billion worth of Europ...

By Matthew Heller • Oct. 2, 2019

U.S. Manufacturing Slumps for 2nd Straight Month

A closely watched measure of U.S. manufacturing hit its lowest level in August since the Great Recession, reflecting a plunge in exports due to trade tensions.The Institute for Supply Management said Tuesday its Purchasing Managers’ Index fell to 47.8% last month, the second straight monthly cont...

By Matthew Heller • Oct. 1, 2019

Business Leaders Wax Optimistic on North America Trade Deal

Will the new United States-Mexico-Canada Agreement, which was agreed to by the leaders of the participating countries last November, ultimately be ratified by the legislatures of all three participating countries? And if so, what will result from it?People who are interested in those questions pr...

By David McCann • Oct. 1, 2019

Consumer Spending Rises Only 0.1% in August

Consumer spending, the main driver of the U.S. economic recovery, rose only slightly in August but a pickup in incomes and a strong savings rate suggest a recession is not looming.The Commerce Department reported Friday that personal-consumption expenditures, or household spending,increased 0.1% ...

By Matthew Heller • Sept. 27, 2019

SEC OKs Rule to Extend ‘Test-the-Waters’ Tool

The U.S. Securities and Exchange Commission has voted to extend its “test-the-waters” accommodation in a move to encourage more companies to go public amid a 50% drop in listings over the past decade.A final rule approved on Thursday allows any company to gauge market interest in a possible publi...

By Matthew Heller • Sept. 27, 2019

Peloton Plunges in Another Tough Unicorn Debut

In another tough market debut for a unicorn startup, Peloton’s cult-like following among exercise equipment users did not spread to investors.Peloton shares fell 14.2% to $24.86 in the opening day of trading Thursday, giving it a market value of $7.1 billion. The initial public offering, which wa...

By Matthew Heller • Sept. 26, 2019

As Brexit Draws Near, Are Companies Ready?

With just weeks to go before the UK’s scheduled Brexit “leave date,” October 31, even the British government has the jitters about the potential for economic chaos.Cabinet ministers recently revealed part of the disaster plan if the Britain exits the European Union without a trade deal. The repor...

By David McCann • Sept. 26, 2019

After 21 Years and a Spinoff, Profitability Finally Arrives

Any startup company experiences a blissful moment upon first achieving profitability. It was no different for Ironwood Pharmaceuticals, which broke into the black in this year’s second quarter, except in one respect: The company was formed more than two decades ago.That’s right. Originally named ...

By David McCann • Sept. 24, 2019

Fed to Cut Rates Again This Year, S&P Predicts

While the U.S. Federal Reserve has signaled it will not lower interest rates again this year, S&P Global Ratings is predicting another cut in December if trade tensions escalate.The Fed on Wednesday lowered its benchmark rate by another 25 basis points to a target range of 1.75% to 2% — the s...

By Matthew Heller • Sept. 20, 2019

Most CFOs See U.S. Recession by Q3 2020

CFOs’ optimism about the U.S. economy has fallen to its lowest level in three years, with a majority now believing the country will be in a recession by the third quarter of 2020, according to the Duke University/CFO Global Business Outlook survey.The Business Outlook poll for the third quarter f...

By Matthew Heller • Sept. 18, 2019

Companies Need a Chief Liquidity Officer

Today’s businesses are competing in hyper-disruptive and volatile markets. To maintain financial performance, health, and resiliency, they need to take a holistic approach to unleash the $1.4 trillion worth of liquidity trapped inside companies’ accounts and operations.However, the concern of som...

By David McCann • Sept. 16, 2019

Autos Help Retail Sales Climb 0.4% in August

U.S. retail sales rose more than expected in August, suggesting consumer spending continues to be robust despite trade uncertainty and other headwinds.The Commerce Department reported Friday that retail sales increased 0.4% last month from July, driven by a 1.8% jump in spending on vehicles. Econ...

By Matthew Heller • Sept. 13, 2019

U.S. Job Vacancies Fall to 7.22 Million in July

U.S. job openings fell to the lowest level in five months in July, an indication of a cooling labor market that follows a weak non-farm payroll report last week.According to the Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS), the number of job openings declined by 31,000...

By Matthew Heller • Sept. 10, 2019

Shopify Buys 6 River to Boost Robotics Business

Canadian e-commerce platform Shopify has agreed to acquire robotics startup 6 River Systems for $450 million in a move to accelerate the growth of its AI-powered fulfillment network.6 River is best known for its Chuck autonomous vehicles that can move around packages in warehouses. Two of its fou...

By Matthew Heller • Sept. 10, 2019