deloitte cfo survey 2010q2

8/9/2019 Deloitte CFO Survey 2010Q2

1/12

The Deloitte CFO SurveyConfidence dips

2010 Quarter 2 results

July 2010


2/12

Contents

The Deloitte CFO Survey 1

CFOs less confident 2

Fiscal squeeze dampens sentiment 3

Credit conditions improve 4

Credit, cash, risk 5

Financial strategies 6

Market outlook 7

CFO survey: economic and financial context 9

This is the twelfth quarterly survey of Chief Financial Officers and Group Finance

Directors of major companies in the UK. The 2010 second quarter survey took

place between 11th and 25th of June. 125 CFOs participated, including the

CFOs of 32 FTSE 100 and 44 FTSE 250 companies. The rest were CFOs of other

UK listed companies, large private companies and UK subsidiaries of major

companies listed overseas. The combined market value of the 93 UK listed

companies surveyed is 446 billion, or approximately 28% of the UK quoted

equity market. The Deloitte CFO Survey is the only survey of major corporate

users of capital that gauges attitudes to valuations, risk and financing.

For copies of earlier CFO Surveys, see www.deloitte.co.uk/cfosurvey


3/12


The Deloitte CFO SurveyConfidence dips

For additional copies

of this report, please

contact Matt Gentle on

020 7303 0294 or email

[email protected]

The first quarter 2010 CFO Survey concluded with the

words, CFOs sees risks ahead. Our second quarter

2010 survey suggests that at least some of those risks

have started to materialise. Financial optimism has

dipped for the second consecutive quarter, taking it to

the lowest level in a year. Meanwhile CFOs have edged

up the probability they assign to a double dip from

33% in the first quarter to 38% today. Recent volatility in

financial markets and concerns about fiscal tightening at

home and abroad are clearly weighing on CFO sentiment.

One example of this process can be seen in CFOs attitudes

to financing. Recent financial market turbulence has madeCFOs much more cautious about financing their

companies using equity. Enthusiasm for corporate bonds

as a source of finance has also dimmed. These shifts in

preferences underscore the close relationship between

financial market activity and corporate attitudes.

Two of this quarters special questions set out to gauge

the likely effects of fiscal tightening on UK corporates

and reveals that CFOs see more direct risks than

benefits from the coming squeeze. Two thirds of CFOs

expect tighter fiscal policy to have negative effects on

their company in the short term while 69% foresee fewor no direct long term benefits.

There are, however, two caveats to this finding. First, in

answering this question CFOs focussed on direct risks

and benefits.

Contacts

Margaret Ewing

Partner and Vice

Chairman

020 7303 3323

[email protected]

Ian Stewart

Chief Economist

020 7007 9386

[email protected]

Key points

Financial optimism has dropped to a one year

low in the second quarter and CFOs see a

growing risk of a double dip.

Two thirds of CFOs expect tighter fiscal policy

to have negative effects on their company in

the short term. 31% foresee long term benefits

for their companies from the coming fiscal

squeeze.

Credit conditions are improving. CFO sentiment

about credit availability is now at the highestlevel since the CFO survey started in the third

quarter of 2007.

Cost control remains, as it has been in the last

two years, CFOs top priority.

Cash flow has receded as a major priority for

CFOs. Expansionary policies to raise revenue

and capitalise on growth have climbed up

CFOs priority list.

The clearly stated view of CFOs in our previous survey,just before the General Election, is that fiscal

consolidation is essential. In that Survey 85% of

respondents said that deficit reduction should be the

new governments top priority. Second, a substantial

minority of CFOs, about a third, expect few negative

effects from fiscal tightening.

But while the external environment is looking less

positive, the second quarter 2010 CFO Survey shows

that some pressures on corporates balance sheets are

easing. The cash crisis in the corporate sector has

abated significantly and corporates are more bullish

about prospects for their own cash flow than at anytime in the last two years. Financial risk appetite among

CFOs has not, so far, been dented by doubts about the

recovery. Crucially, credit conditions are getting better.

CFO sentiment about credit availability is now at the

highest level since the CFO Survey started in the third

quarter of 2007. In a process that partially unwinds the

effects of the credit crunch, bank borrowing has

regained its pre-recession appeal to CFOs as a source of

funding. CFOs see a more attractive and available

supply of bank credit driving growing demand for bank

borrowing over the next year.

So the latest CFO Survey paints a picture of concernabout growth despite improvements in the corporate

credit and liquidity environment. Examining how CFOs

intend to finance their companies enables us to see how

corporates plan, in practice, to reconcile these pressures.

What is most striking is that cost control remains, as it has

been for the last two years, the top priority for UK CFOs.

With fears of a double dip increasing, CFOs are

maintaining a strong focus on costs. Yet cash flow is no

longer the central pre-occupation that it was, dropping

from second to fourth position in the list of CFOs

priorities. Crucially, expansionary strategies including capital

spending, expanding into new markets and launching newproducts and services, have shifted up the priority list.

A majority of CFOs expect M&A activity to rise over the

next year. 35% of CFOs included growth by acquisition

among their top 3 priorities for the next 12 months.

A recurring theme from the CFO Survey in the last year

has been uncertainty about growth prospects.

Uncertainties have mounted, yet, at the same time

some important factors are looking up. Shortages of

liquidity and credit are much less of a problem.

CFOs are focussing more on how to capitalise on

growth, no matter how unsure and patchy.

The last three years have been a period of exceptional

volatility. CFOs are not convinced the problems are over.

What emerges from this survey is that CFOs are alive to

the risks and looking for opportunities in what lies ahead.


4/12

2

CFOs less confident

The latest CFO Survey shows a decline in financialoptimism with the balance of respondents reporting

greater optimism dropping from 40% to 24%, the

lowest reading in a year and the second consecutive

quarterly decline.

The average CFO now attaches a 38% probability to

there being a double dip, up from 33% in the first

quarter 2010 survey. This decline in confidence is

consistent with a more cautious mood in financial

markets and growing concerns about renewed

economic weakness.

The readings from the CFO Survey often show a close

relationship between financial market conditions and

corporate sentiment. The decline in CFO optimism in

our latest Survey has occurred against a backdrop of

rising stress in the financial markets.

Within financial markets, investors have been movingfrom equities to less risky assets, such as US Treasuries,

in response to the Euro Area debt crisis and concerns

about the regions banks.

Our tracking of UK newspaper stories confirms a more

negative tone to corporate news stories in June. Stories

about the effects of public sector spending cuts have

contributed to the recent decline in our corporate news

flow index.

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

2009

Q2

2009

Q3

2009

Q4

2010

Q1

2010

Q2

Chart 1. Financial prospects

Net % of CFOs who are more optimistic about financial prospects for their company now than

three months ago

-80%

-60%

-40%

-20%

0%

20%

40%

60%

L

essoptimistic

Moreoptimistic

Jan07

Apr07

Jul07

Oct07

Jan08

Apr08

Jul08

Oct08

Jan09

Apr09

Jul09

Oct09

Jan10

Apr10

Jul10

Chart 2. Deloitte Financial Stress Index

The Deloitte Financial Stress index is an arithmetic average of the ratio of 3 month LIBOR to baserates, the ratio of yield on high yield bonds to yield on government bonds, the VIX index, theratio of total market return to banking stocks return and the ratio of yield on long termgovernment bonds to yield on short term bonds.

80

100

120

140

160

180200

220

240

260

280

300

Lehman bankruptcy

Euro areacrisis

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Chart 3. Deloitte corporate newsflow index

Corporate news flow index tracks major UK broadsheets for positive and negative news storiesfrom the UK corporate sector.

-600

-500

-400

-300

-200

-100

0

100

200

Lessgoodnews

Moregoodnews


5/12


Fiscal squeeze dampens sentiment

One example of the linkage between financial marketperformance and corporate behaviour can be seen in

CFOs changing attitudes to funding.

CFOs have become markedly less enthusiastic about

issuing equity. The balance of CFOs who believe that

this is a good time to issue equity has dropped at the

fastest rate since the Survey started in 2007.

CFOs still think, on balance, that this is a good time to

issue bonds but they have become somewhat more

cautious here too.

CFOs see more risks than benefits to their companies

from the coming squeeze on UK public spending.

Two thirds of CFOs expect tighter fiscal policy to have

negative effects on their companies particularly relating

to concerns about reduced consumer spending and job

losses in the public sector.

However, 31% foresee benefits in the long term for

their companies. Long term benefits cited by a number

of CFOs include a reduction in business red tape and

lower taxes.

Fiscal tightening is likely to slow the pace of the UKs

recovery, although evidence from other countries,

including Sweden and Canada, suggests it is possible

to shrink the public sector and sustain growth.

Such episodes have generally taken place in flexible

economies with governments that seek to bolster the

private sector, often with tax cuts. A weak currency and

strong overseas demand are also important in helping

offset shrinking public expenditure.

The UK scores reasonably well on these criteria and,

perhaps for this reason, the independent Office of

Budget Responsibility (the OBR) sees the Emergency

Budget slowing, not derailing, growth. In the light ofthe Budget, the OBR trimmed its 2010 GDP forecast

from 1.3% to 1.2% and its 2011 forecast from 2.6%

to 2.3%.

Chart 6. Factors supporting growth during fiscal consolidations

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

2009

Q2

2009

Q3

2009

Q4

2010

Q1

2010

Q2

Chart 4. Is it a good time to tap the capital markets?

Net % of CFOs who think now is a good time to issue equity or corporate bonds

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

Notagoodtime

Goodtime Bonds

Equity

Chart 5. Impact of fiscal squeeze

% of CFOs who anticipate significant/some orno negative effects in the short term on theircompany as a result of the fiscal squeeze.

% of CFOs who think their company will seesignificant/some or no benefits in the longterm from the fiscal squeeze.

34%

10%

56%

Significant negative effects

Some negative effectsLittle or no negative effects

5%

26%

69%

Significant benefits

Some benefitsFew or no benefits

Microeconomicflexibility

Globaldemand

Support forthe private sector

Source: Economics & Markets, Deloitte Research

Weakcurrency


6/12

4

Credit conditions improve

Despite recent uncertainties bank borrowing hascontinued to gain popularity with CFOs. Bank borrowing

is now seen as being as attractive as it was in early

2008, before the financial crisis took grip.

Meanwhile the two other major sources of external

finance for corporates, equity and corporate bonds,

have dipped in popularity with CFOs.

The growing attractiveness of bank borrowing to

corporates partly reflects an improvement in credit

conditions. CFOs now perceive credit as being more

available and the cost of new credit lower than at any

time since the third quarter of 2007.

The CFO Survey covers larger UK corporates and the

experience of smaller companies may be different.Nonetheless, our results suggest that the process of

balance sheet repair in banks has generated a

significant improvement in corporate credit conditions.

CFOs think the degree of excess leverage in thecorporate sector has declined markedly in the last

18 months. This fits with the idea that corporates have

focussed on strengthening balance sheets during the

downturn, partly by cutting leverage. This process

probably has further to run. Far more CFOs say they

plan to reduce leverage in the next 12 months than

to raise it.

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

Chart 7. Favoured source of corporate funding

Net % of CFOs reporting the following sources of funding as attractive

-60%

-40%

-20%

0%

20%

40%

60%

Unatractive

Attractive

Bondissuance

Bankborrowing

Equityissuance

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

2010Q1

2010Q2

2009Q4

2009Q3

2009Q2

2009Q1

2008Q4

2008Q3

2008Q2

2008Q1

2007Q4

2007Q3

Chart 8. Cost and availability of credit

Net % of CFOs reporting credit is costly and credit is easily available

Creditischeap

Creditiscostly

Creditishardtoget

Credit

isavailable

Availability ofcredit (rhs)

Cost of credit (lhs)

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

Chart 9. Leverage

Net % of CFOs who think UK corporate balance sheets are overleveraged

-40%

-20%

0%

20%

40%

60%

Underleveraged

Overleveraged


7/12


Credit, cash, risk

This quarters CFO Survey includes two new questionson the demand for credit.

A balance of CFOs say that their demand for credit has

fallen in the last 12 months, a finding which fits with

the sharp decline seen in the official credit data.

But looking ahead CFOs are more positive. Over the

next 12 months CFOs think their demand for credit is

going to increase

Despite a dip in optimism CFOs are increasingly positive

about the outlook for their own companys operating

cash flow. Expectations for an increase in cash flow are

now at the highest level in two years.

Most CFOs remain cautious about taking risk.

Nonetheless, renewed concerns about the economic

outlook have not, so far, affected CFOs risk appetite.

Chart 10. Corporate demand for credit

-5%

0%

5%

10%

15%

20%

25%

-2%

23%

Net % of CFOs who said their

companys demand fornew credit has increased

in the last 12 months

Net % of CFOs who said

their companys demandfor new credit is likely to

increase in the next 12 months

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

Chart 11. Operating cash flow

Net % of CFOs who expect their companys operating cash flow to increase over the next12 months

0%

10%

20%

30%

40%

50%

60%

Increase

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

2009

Q2

2009

Q3

2009

Q4

2010

Q1

2010

Q2

Chart 12. Is it a good time to take greater risk?

Net % of CFOs who think now is a good time to take greater risk onto their balance sheets

-100%

-90%

-80%

-70%

-60%

-50%

-40%

Notagoodtimetotakegreaterrisk


8/12

6

Financial strategies

This quarters Survey sheds light on the strategies CFOs are adopting for their business in what is generally expected to be an uncertain and

challenging environment.

Cost control, remains, as it was six months ago, the top priority for CFOs. This strategy has served CFOs well during the downturn and they

continue to see it as being vital for their companies over the next year.

But we can also detect a shift to more expansionary policies. CFOs responded to the credit crunch and the ensuing recession with a strong focus

on building cash flow. That was CFOs top priority in December 2008, at the low point of the cycle, and a year later, in December 2009, with the

recovery underway, increasing cash flow was still the number one priority. But in the second quarter 2010 boosting cash flow has dropped to

fourth position, below expanding into new markets and introducing new products or services. A reduced emphasis on cash is consistent with the

strengthening of cash flow expectations and improving credit conditions seen elsewhere in the Survey.

Increasing capital expenditure has also jumped up the league table, with the proportion of CFOs rating this as a priority almost doubling since the

start of the year.

This changed set of rankings paints a mixed picture. On the one hand doubts about the recovery mean that cost control is still king for most

CFOs. Yet cash flow is no longer the central preoccupation it was. Crucially, corporates are increasingly focused on growth strategies, such as

expanding into new markets, bringing in new products or services, growing by acquisition and raising capital spending.

Chart 13. Priorities for the next 12 months

% of CFOs who have selected the following factors among their top 3 priorities

0% 10% 20% 30% 40% 50% 60%

Raising new capital

Raising dividends or share buy backs

Disposing of assets

Reducing debt levels

Renegotiating current financing facilities

Increasing capital expenditure

Growing by acquisition

Increasing cashflow

Introducing new products or services

Expanding into new markets

Reducing costs 47%

45%

45%

37%

35%

26%

18%

17%

11%

8%

3%

2010 Q2 survey 2009 Q4 survey


9/12


Market outlook

CFOs have become more optimistic about the outlookfor UK equities even as the market has fallen.

Expectations for a strengthening of the FTSE100 index

are now at the highest level in a year.

CFOs views on asset valuations have shifted

significantly this year.

Government bonds are seen as being less overvalued,

a change which perhaps reflects the greater confidence

in UK fiscal policy and doubts about the outlook forgrowth. In the last 3 months equities have gone from

being seen as overvalued to undervalued. Commercial

real estate is now seen as modestly overvalued, a

change which may be due to the rise in values seen

so far this year.

CFOs remain positive on the outlook for corporate

activity. Most expect activity in the M&A and private

equity sectors to rise over the next year. As chart 13 on

the previous page shows, 35% of CFOs included

growth by acquisition among their top 3 priorities.

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

Chart 14. Outlook for UK equities

Net % of CFOs who expect FTSE 100 to be higher in a years time

0%

10%

20%

30%

40%

50%

60%

70%

Chart 15. Valuations

Net % of CFOs who think the following asset classes are overvalued

Undervalued

Overvalued

Government

bonds

UK equities

UK commercialreal estate

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

2010Q2

2010Q1

2009Q4

2009Q3

2009Q2

2009Q1

2008Q4

2008Q3

2008Q2

2008Q1

2007Q4

2007Q3

Chart 16. M&A and PE outlook

Net % of CFOs who expect M&A and PE activity to increase in the next 12 months

Activitywilldecrease

Activitywillincrease

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

2010

Q2

2010

Q1

2009

Q4

2009

Q3

2009

Q2

2009

Q1

2008

Q4

2008

Q3

2008

Q2

2008

Q1

2007

Q4

2007

Q3

M&A activity PE activity


10/12

8

CFO Survey: Economic and financialcontext

1990-1991

1993-1994

1996-1997

1999-2000

2000-2003

2005-2006

2008-2009

2011-2012

2014-2015

UK public expenditure/receipts as a % of GDP

35%

37%

39%

41%

43%

45%

47%

49%

Source: Emergency Budget forecasts, HM Treasury

The comingfiscal squeeze

UK governmenttotal managed

expenditure Treasuryforecasts

UK governmenttotal receipts

Financial market rankings of major UK risks

1. Sovereign risk and/or public debt

2. Economic downturn

3. Regulation, taxes on banks

4. Funding and liquidity problems

5. Financial market disruption

6. Property price falls

7. Tight credit conditions

8. Household and corporate defaults

9. Election uncertainty

10. Financial institution failure/distress

Key risks to the UK financial system as ranked by financial market participants

in the Bank of Englands Systemic Risk survey, May 2010

UK corporate capital gearing

Debt net of liquid assets relative to the market value of capital

Source: Bank of England Financial Stability Report, June 2010

15

20

25

30

35

40

20102008200620042002200019981996199419921990

UK corporate gearing declines

Evolution of 2010 consensus GDP growth forecasts

Source: The Economist poll and Deloitte calculations

United States

Japan

UK

PeripheralEurope

NorthernEurope

Optimism on US, Japan:pessimism on Europe

-2

-1

0

1

2

3

4

Jun 10Mar 10Dec 09Sep 09Jun 09Mar 09

Spanish and German 10 year bond yields

German bond yields

Spanish bond yields

2

3

4

5

Flight from peripheral to coreEuropean bonds

Jun2010

May2010

Apr2010

Mar2010

Feb2010

Jan2010

Dec2009

Nov2009

Oct2009

Sep2009

Aug2009

Jul2009

UK year on year GDP growth

Source: ONS, Office for Budget Responsibility and Deloitte calculations

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0

0.5

1.0

1.5

2011Q3

2011Q1

2010Q3

2010Q1

2009Q3

2009Q1

2008Q3

2008Q1

2007Q3

2007Q1

2006Q3

2006Q1

OBR forecasts continuingUK recovery

Forecasts


11/12

Net Balance -53

Q4 2008%

-59

66

27

7

-27

47

33

20

16

24

36

40

58

8

26

66

-24

49

26

25

35

3

59

38

-45

66

13

21

-46

66

14

20

-33

62

9

29

94

1

495

-98

99

0

1

Less optimistic

Unchanged

More optimistic

Compared with three months ago how do you feel about the financial prospects for your company?

Net Balance

Decline

No change

Increase

Volume of acquisitions by private equity in the quoted equity market will

Net Balance

Decline

No change

Increase

Levels of M&A in the UK will

Net Balance

Lower

Broadly unchanged

Higher

In a years time, FTSE 100 will beNet Balance

Low

Normal

High

Cash return to shareholder ratios (including share buybacks) are

Net Balance

Underleveraged

Appropriately leveraged

Overleveraged

UK corporate balance sheets are

Net Balance

Unattractive

Neither attractive nor unattractive

Attractive

Equity raising, as a source of funding, is

Net Balance

Unattractive


Attractive

Corporate debt raising, as a source of funding, is

Net Balance

Unattractive


Attractive

Bank borrowing, as a source of funding, is

Net Balance

Cheap

NeutralCostly

How would you rate the overall cost of new credit for corporates?

Net Balance

Hard to get

Neutral

Available

How would you rate the overall availability of new credit for corporates?

-19-9-24

56363140

41474743

3172217

-8-13-50-72

39457284

302365

31322212

221-22-44

26375365

27261614

48383121

3312250

16282530

35332540

49405030

-30-101630

4527165

39565260

15173235

27246-17

67622

61618173

3332135

-41-22-53-29

58517248

2420933

17291919

-548-250

68315333

17291933

14402833

-1673416

51402528

14131628

35475944

96886955

11310

210252697897264

-84-61-29

897755

6719

51626

Q3 2008%

Q2 2008%

Q1 2008%

Q4 2007%

-30

45

40

15

-5

34

37

29

41

15

29

56

53

12

23

65

-57

72

13

15

60

3

34

63

-18

45

28

27

-33

55

23

22

-34

61

12

27

83

3

1186

-92

94

4

2

Q1 2009%

22

15

49

37

19

21

40

40

81

2

15

83

58

4

34

61

-59

68

22

9

45

5

44

50

14

30

26

44

1

34

32

35

-23

50

22

27

79

3

1582

-59

72

15

13

Q2 2009%

38

8

46

46

44

6

45

50

92

0

8

92

26

13

49

38

-62

68

26

6

34

4

57

39

26

24

26

50

28

19

33

48

-22

48

27

26

69

7

1876

-63

73

16

11

Q3 2009%

44

2

52

46

52

6

36

58

91

0

9

91

31

13

42

45

-61

66

29

5

35

5

56

40

25

23

28

48

44

13

29

58

-12

43

26

31

62

11

1673

-50

69

13

19

Q4 2009%

23

12

52

35

49

7

36

56

78

1

20

79

45

10

35

55

-48

58

32

10

16

10

64

26

-7

37

34

30

26

20

35

46

23

20

36

44

40

15

3155

-20

50

19

31

Q2 2010%

40

8

44

48

48

7

38

55

83

1

16

84

36

12

40

48

-61

68

26

7

22

7

64

29

11

27

36

38

46

10

34

56

5

31

32

36

54

11

2465

-32

56

21

24

Q1 2010%

-31

63

6

31


A note on methodologyMany of the charts in the Deloitte CFO survey show the results in the form of a net balance. This is the percentage of respondents reporting, for

instance, that bank credit is attractive less the percentage saying bank credit is unattractive. This is a standard way of presenting survey data used

by, amongst others, the CBI and the European Commission. To aid interpretation of the results, this table contains a full breakdown of responses

to the questions covered in this report. Net balances have been rounded to the nearest whole number.

Data archive


12/12

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Below are Thomson Reuters Datastream mnemonics for the net balances for all the regular questions from the Deloitte CFO survey.

For a full breakdown of all the regular data from the Deloitte CFO survey, please search on Datastream under Deloitte and CFO. A pdf with

the data from the survey is also available each quarter at www.deloitte.co.uk/cfosurvey

Deloitte CFO survey question Datastream Mnemonic

How do you currently rate bank borrowing as a source of external funding for UK corporates? UKCFOFBBR

How do you currently rate corporate bonds as a source of external funding for UK corporates? UKCFOFCBR

How do you currently rate equity as a source of external funding for UK corporates? UKCFOFEQR

How do you currently rate UK commercial real estate asset valuations? UKCFOVRER

How do you currently rate UK equity valuations? UKCFOVEQR

In a years time do you expect the FTSE 100 to be: UKCFOFTYR

How do you currently rate UK Government bond (Gilt) valuations? UKCFOVGBR

How would you characterise the current level of short term market interest rates in the UK? UKCFOIRSR

How would you rate the overall cost of new credit for corporates? UKCFOCCCR

How would you rate the overall availability of new credit for corporates? UKCFOACCR

Is now a good time for UK corporates to issue equity? UKCFOIEQR

Is now a good time for UK corporates to issue bonds? UKCFOICBR

Generally speaking do you think UK corporate balance sheets are: UKCFOLEVR

Do you think cash return to shareholder ratios (including share buybacks) are, relative to normal levels: UKCFOCRRR

Over the next 12 months how do you expect levels of M&A in the UK to change? UKCFOMAYR

How do you expect the volume of acquisitions by private equity in the quoted equity market to change in the next 12 months? UKCFOPEYR

Compared with three months ago how do you feel about the financial prospects for your company? UKCFOOVQR

What is your aim for your level of gearing over the next 12 months? UKCFOGEYR

How has the level of financial risk on your balance sheet changed over the last 12 months? (Financial risk could include, for

instance, levels of gearing, uncertainty about the valuation of assets and interest rate and exchange rate sensitivity)

UKCFORVYR

Is this a good time to be taking greater risk onto your balance sheets? UKCFORTGR

Are you likely to issue bonds or arrange new credit facilities over the next 12 months? UKCFODCYR

Are you likely to issue equity over the next 12 months? UKCFOICYR

Deloitte CFO Survey now on Datastream

deloitte cfo survey 2010q2

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