There’s always a sense of nervousness when running a conference which involves bringing together 1100 people! No, not the food (although sometime, yes, the food!) or the WiFi or even if the coffee is drinkable! It’s much more than that. What we at the ACT worry about most is that everyone gets the fullest benefit possible from 48 hours with their peers, their financial services providers (or at least as many of them as we can get to the conference) and the many other disciplines and organisations who are attending. We are trying to create a sense of community and
Two new(ish) worries for firms to ponder. Tax deductions on interest expense First, The Economist newspaper of last week has a leader and several pages of article advocating the ending of tax deductions for interest payments. This has been advocated by a number of academics for many years. And it received a boost when excessive leverage – more interest, and so more tax deductions – was seen as contributing to the financial crisis of 2007-8 and the separate euro-crisis since 2009. Politicians everywhere, trying to balance budgets, are likely to be very tempted by a new way of reducing “tax
What is the cost of all the cash and short-term investments of private non-financial corporations (PNFCs)? For UK firms, the Bank of England (BoE) gave us clues last week: not as high as it was, not as low as it has been. The BoE’s Statistical release on Effective interest rates for March 2015, reports its survey of 23 monetary financial institutions (MFIs) shows new cash deposits from PNFCs returning an average 0.48% while the rate on their new lending to PNFCs was 2.43%. So, maybe the cost of carry is 1.95%. That sounds a lot – but the average loan
As some of you will know, I used to work in Germany, for RWE AG. In Essen to be precise, a large industrial (post-industrial?) city close to Düsseldorf in the Ruhr region (the Ruhrgebiet) of North western Germany.
2014 It seemed to go much better this time. After a number of companies had to scramble to place sterling and euro cash at year-end 2012 and there being some pressure at end 2013, ACT Policy & Technical have the impression that more attention from all sides has meant 2014 year-end has seemed unremarkable.
The recent ACTME Annual conference was a tremendous success, not just in terms of the more than 400 delegates who attended but in terms of what it says about the growth of professional treasury management in the region.