Reporting by William Schomberg, Editing by Kylie MacLellan
Finance
UK CFOs lose their appetite for debt after rates climb -Deloitte
LONDON, Oct 16 (Reuters) – Finance executives at top British firms are their most wary about borrowing than at any time since at least 2007, according to a survey which underscored how the climb in interest rates is weighing on businesses and the broader economy.
The survey by Deloitte, published on Monday, found the gap between chief financial officers who rated bank borrowing as attractive and those who saw it as unattractive stood at a net -37%, the widest since the survey was launched in 16 years ago.
A similar proportion said debt sales were unattractive while equity finance became more popular.
“Higher interest rates have flipped a decade-old consensus which was previously in favour of debt finance,” Ian Stewart, chief economist at Deloitte, said.
“Finance leaders are preparing for a period of high interest rates with predicted rates falling only slightly over the next year.”
Worries about high inflation were persisting although the quarterly survey also showed business confidence was running at above average levels and was up from three months ago.
The Bank of England raised rates 14 times in a row between December 2021 and August this year, before pausing its increases in September. Top BoE officials have stressed they are likely to keep borrowing costs high for a period and not cut them quickly even as the British economy struggles to grow.
The CFOs quizzed by Deloitte on average expected the BoE to cut Bank Rate to 4.75% in a year’s time from 5.25% now.
Other forecasts included one for inflation to be running at 3.1% in two years’ time – down from almost 7% now but still above the BoE’s 2% target – and wage growth to slow to 4.3% this time next year from 6.2% as labour shortages diminished.
The survey of 70 CFOs, 13 of them from FTSE 100 firms and 26 from FTSE 250 companies, ran between Sept. 19 and Oct. 2, before the escalation of the Israel-Hamas conflict which has threatened to worsen the global economic outlook.
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Finance
Indian shares likely to open higher; Bajaj Finance in focus
Finance
Wisconsin groups support next generation of STEM workers | Finance & Commerce
MILWAUKEE — Contractors, utilities and public officials this week had something to offer to local students interested in construction and science, technology, engineering and mathematics (STEM).
The construction labor shortage and age gap are continuing conversations in the industry and drives more contractors to find ways to add to the labor pool. In March, there were around 295,000 construction jobs open across the U.S, according to preliminary data from the U.S. Bureau of Labor Statistics. The median age in the construction field is 41.9, BLS data showed.
Meanwhile, different groups this week awarded scholarships, recognition and partnerships to schools and students interested in construction and STEM fields. One partnership between contractors and a school will create a new learning laboratory at a Wauwatosa high school, officials said. Here’s what groups did this week to support the next generation.
Plumbing and mechanical contractors partner with Wauwatosa schools
Wauwatosa East High School has partnered with mechanical contractors JM Brennan and TOTAL Mechanical, manufacturer representative Air Flow, the Milwaukee and Southeastern Wisconsin Plumbing and Mechanical Contractors Association and Sheetmetal and Air Conditioning Contractors Association to develop a learning laboratory to prepare the next building and construction trades labor force, officials said.
The partners will further develop the HVAC part of the technical training space at Wauwatosa East.
“At Tosa East we are very proud of our program,” said Craig Griffie, the technical education teacher at Wauwatosa East. “The students are building a really strong foundation and it’s all due to the partners we have.”
State awards “fab lab” grants to 18 school districts
Gov. Tony Evers and Missy Hughes, secretary of the Wisconsin Economic Development Corp., awarded $493,000 in “fab lab” grants to 18 school districts to train students in science, technology, engineering, arts and mathematics. The money is used to help create fabrication labs at local schools and equip them with computerized manufacturing machines such as 3D printers and laser engravers.
Lawmakers recognize national construction contest winners
State Rep. Clint Moses and Brian Westrate, staff for U.S. Representative Derrick Van Orden, recognized the University of Wisconsin-Stout construction team, faculty and staff. The team clinched a gold medal in estimating at the Associated Builders and Contractors National Craft Competition held this year in Kissimmee, Florida.
Madison utility awards high school scholarships
Madison-based Alliant Energy awarded scholarships worth $1,000 to 25 high school seniors in Iowa and Wisconsin. The scholarships are awarded to students who perform community service work, academic achievement and wrote an essay about community problems solved through science, technology, engineering or mathematical concepts.
Julie Bauer, executive director of the Alliant Energy Foundation, said “supporting workforce readiness and fostering young minds interested in STEM-based careers is critical to developing the future of a skilled and innovative workforce.”
Finance
Faegre Drinker Grows Dallas Finance & Restructuring Practice
Glenn Reitman has joined Faegre Drinker as a partner in the finance & restructuring practice in Dallas, the firm said Thursday.
Reitman represents lenders and borrowers in structuring, negotiating, and documenting finance transactions, according to Faegre Drinker. He has particular expertise with commercial, real estate, and energy projects and structured financing.
His finance practice includes private equity, venture capital, leveraged buyouts, structured products, loan workouts, and restructurings, said the firm.
This story was produced by Bloomberg Law Automation.
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