Bank Of England, UK And Britain discussed on Bloomberg Daybreak Europe


Look at this survey which is really interesting In good morning thanks for being with us Labor shortages are now really an ingrained problem for Britain Yeah they are And we still have a very large company and they rank labor shortages as a bigger issue than the well it's up there with the pandemic slightly ahead of inflation And it's expected to last really with no real relief till the very end of next year What about the inflation view Could you add some color for our global audience maybe with some numbers or just classifying the inflation anxiety Yes I mean obviously UK like Europe and North America has seen in patient surprise on the upside so far this year looked like a temporary shock to inflation into these morphing into something longer term and that's reflected in its survey we all CFOs about their inflation expectations And we find that just over half expected patient to be to be well above 2% so well above the Bank of England's target in two years time And I think that's of some concern because obviously the Bank of England story like the fed and the ECB has been that inflation expectations are well angered and inflation will order a significantly next year This survey of launch corporates is showing that they do expect inflation to be above the target at the end of the banks two year time horizon Yeah so that's perhaps including ideas about interest rate rises in the UK You spoke to 92 CFOs including 18 from the ftse 100 On climate change though as fascinated in this was the first time you really went in depth asking about climate change and the impact on CFOs They see it as an opportunity yes but also really as a huge challenge and they are worried about government policy The lack of it Yes I mean I think that they see a lack of clarity in government policy is one of the things that is holding holding back action I mean what surprise me or what struck me was that just how pervasive an issue is this is all the capital allocators in the UK economy and actually before asking the questions we held a series of one to one conversations with CFOs of our climate which confirmed our view that this was having a real effect on the way in which companies were being run in effect capital allocation funding costs the value of assets and as a survey showed brand reputation the ability to hire The expectation of this group is that climate will be a very big driver of the sort of shape of the business over the next ten years Yeah they're huge Opportunity but also significant challenges in the meantime And thanks so much for being with us taking us through Deloitte's latest CFO survey in Stuart their chief economist at Deloitte Let's get you a bit of a snapshot of what else is coming up on the program We're going to be looking at the fears about tapering What does that mean for the bond and the equity markets at the moment Upon sell off that's accelerating as infecting some of the sentiment levels across equity markets joining us next is Trevor Griffin He's the head of multi asset at royal London management

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