CFOs will find out over the next few days how their companies did compared to their competitors and the overall economy. That will definitely have an effect on spending and investment plans for the second half.
But so will the overall performance of the U.S. economy. CFOs have been more confident in their own companies than the overall economy, but the U.S. most likely avoided a recession in the second quarter. The Atlanta Fed's GDPNow model estimates second-quarter GDP was 2.1%. The second-quarter earnings season, which begins this week, will provide some concrete data points on what businesses expect in the second half of the year.
Affecting that will be the sentiment of consumers and small businesses. Both the University of Michigan's consumer sentiment index and the NFIB's small business optimism index arrive this week and are expected to show continued weakness. Another variable is the trajectory of the Federal funds rate — if two more interest rate hikes this year appear to still be in the cards, CFOs may retain some pessimism about how robust earnings will be in the third and fourth quarters.
This week, CFO wants to highlight today’s National Town Crier Day. In a modern sense, this is what we try to be to the CFO community for you, so thanks for letting us be your information source. It's only Monday, but any day during summer is a good time to kick back and relax, so celebrate National Piña Colada Day. Also, don’t forget your free 7-Eleven Slurpee on Tuesday, 7/11!
Part 1: Taking a Proactive Approach to Navigating Economic Uncertainty
This week, reporter Adam Zaki covers a new Mckinsey survey that shows despite all of the uncertain parts of the economy that may be impactful to corporate finance, CFOs are still all systems go with their approach towards maintaining the longevity of their companies. According to findings, CFOs are getting increasingly more involved and proactive in their approach to how their companies are navigating the current economy. (7/12)
Part 2: Economic Calendar
Monday — The Fed’s vice chair for supervision, Michael S. Barr, speaks at the Bipartisan Policy Center, a think tank, at 10 a.m. His subject is bank capitalization rules.
U.S. President Joe Biden is scheduled to meet King Charles III at Buckingham Palace and visit with U.K. Prime Minister Rishi Sunak at 10 Downing Street.
The Federal Reserve releases its monthly totals on consumer credit outstanding and loan terms.
Tuesday — The NFIB’s small business optimism index is scheduled for release. The index is expected to record its 18th straight month below its 49-year average.
Wednesday — The Securities and Exchange Commission holds an open meeting to discuss and vote on changes to money market fund rules. The commission will also discuss amendments to broker-dealer customer protection rules concerning the calculation of reserve deposits.
The Bureau of Labor Statistics releases consumer price index (CPI) data for June. The year-over-year CPI numbers are expected to show inflation falling, but economists predict a monthly increase of 0.3%.
Thursday — Fed Governor Christopher J. Waller speaks on U.S. economic policy at an event held by Money Marketeers of New York University.
The Congressional Budget Office releases its monthly review of the federal government’s budget.
The producer price index, which measures the average change over time in the selling prices received by domestic producers, is expected to show a lower rate of inflation for the 12-month period.
Friday — The import price index for June is expected to continue its trend downward, after the large increases recorded just one year ago.
Consumer sentiment may be rising slightly. The University of Michigan’s Consumer Sentiment Index is expected to show a reading of 65 or slightly higher, up from 59.2 in May.
Earnings this week — Delta Air Lines, PepsiCo, Conagra Brands, Wipro Ltd., JPMorgan Chase, UnitedHealth, Citigroup, Wells Fargo, BlackRock, State Street, Ericsson, Experian, Fast Retailing, Burberry.
IPOs — Surf Air Mobility (NYSE: SRFM) plans to complete a direct listing this week or next, after terminating a 2022 SPAC merger, according to Renaissance Capital. Surf Air aims to become a major regional airline using small, low-emission electric planes.
Part 3: The 6 a.m. CFO — Combat Veteran-Turned-CFO
In our newest edition of the 6 a.m. CFO, Jonté Harrell, a former U.S. Army Captain and Bronze Star recipient turned CFO of Zenledger, shares his morning routine. While the cryptocurrency accounting fintech’s CFO has traded in Reveille-dubbed mornings for jogs on Miami Beach, his approach to his day is still very much strategic, calculated, and goal-orientated. (7/13)
Stat of the Week
$8 billion
The amount of annual revenue Meta's new social media platform, Threads, will generate over the next two years, according to Evercore ISI analysts.
