CFOs see lending ‘drying up’

Economic growth, Financial Events, Leverage

A year ago, Tesco, the UK supermarket giant, were early to see problems ahead in consumer markets. Now, they see problems developing for corporate lending. Last week, Tesco paid €100m more than expected when borrowing €3bn. But Nick Mourtant, group Treasurer, still thought it a good deal.

He said ‘the company wanted to raise as much as possible while it could, and paid a premium to secure the money quickly’. He added that ‘relying on short-term funding does not feel comfortable in the current market conditions’. Shrewd chemical company CFOs will no doubt be following Tesco’s lead as fast as possible.

PREVIOUS POST

OPEC says oil market 'over-supplied'

10/09/2008

This morning, the blog is awarding itself a pat on the back. This is because, al...

Learn more
NEXT POST

Auto sales fall around the world

14/09/2008

August was a bad month for US auto sales. GM sales were down 20% versus 2007, To...

Learn more
More posts
‘Watch out below!’ as supply chain chaos comes to an end
14/11/2021

“What goes up, comes down” is usually a good motto when prices start to reach for the sk...

Read
Industry now needs to step up, if Net Zero is to be achieved
31/10/2021

Net Zero is clearly the key issue of our time. With COP26 about to start, 3 key elements need to com...

Read
The Fed’s stock market bubble is at risk as China bursts its real estate bubble
24/10/2021

The US stock market bubble just keeps rising. And every investor “knows” that the US Fed...

Read
EU patience starts to run out as UK threatens to break the N Ireland Protocol
17/10/2021

Unsurprisingly, it turns out that Brexit still isn’t “oven-ready”, despite the UK ...

Read
An end to the China bubble would risk a Minsky moment
05/10/2021

My letter in today’s Financial Times warning of the risk to Western financial markets from the bur...

Read
Xi aims to “bring order out of chaos” by bursting China’s property bubble
03/10/2021

China is at the start of its biggest economic shake-up since 1978, when Deng Xiaoping launched his p...

Read
The end of China’s real estate bubble will impact global supply chains, exports and growth
26/09/2021

“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually, then suddenly....

Read
An Evergrande default could reset the Chinese, and global, economy
19/09/2021

China’s economy has been ‘subprime on steroids’ since the financial crisis in 2008...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more