All Eyes on CPI, Fintech Nexus and CFO-Controller Partnership: Trial Balance

The season for business events is heating up, and so is the rhetoric about raising the US government’s debt ceiling. We’re keeping our fingers crossed that Congress does its job, as Janet Yellen said. Meanwhile, the consequences of the turmoil in the banking system are becoming apparent.

The consumer price index (CPI) numbers are the big economic data, but economists do not expect evidence of much cooling in inflation.

The notes: Warren Buffett is not optimistic about the US economy, expecting lower earnings this year at Berkshire Hathaway companies.

For more evergreen tidbits of wisdom other than Buffett’s, livestream a college commencement — ’tis the season for some interesting choices for commencement speakers.

Keynote speakers include Wynton Marsalis of the College of the Holy Cross; Patton Oswalt at the College of William and Mary; Tom Hanks at Harvard; and John McEnroe at Stanford University.

Business leaders donning the mortar and pestle include Hayes Barnard, founder of GoodLeap (University of Texas at Austin); Randall Stephenson, former CEO of AT&T (University of Oklahoma); and Charlie Barker, co-founder of Tripadvisor (Bentley University). In total, 13 current and former CEOs will share the benefits of their experiences with future members of the workforce.

If Congress fails to raise the debt ceiling, this quote from 2011 by Conan O’Brien at Dartmouth College may come in handy:

“There are few things more liberating in this life than realizing your worst fear.”

(The Trial Balance is the CFO’s weekly preview of stories, statistics and events to help you prepare.)

Part 1: Reporting from BrokerFair and Fintech Nexus

This week, reporter Adam Zaki attends BrokerFair on May 8 and Fintech Nexus on May 11 in New York City.

BrokerFair, a commercial finance event, brings together two parties of people: brokers, whose clients are SMEs seeking financing; and financiers, those who secure financing for the clients. This highly competitive, sometimes unforgiving industry involves intense negotiations between brokers and their clients and between brokers and financiers for commissions on the loans they sell.

Managers from this industry should give good tips to CFOs who want to negotiate more favorable deals.

Fintech Nexus, a fintech trade show, will draw companies of all sizes to showcase their latest fintech offerings. As fintech’s role in corporate finance has increased, this event should serve as a good benchmark for the offerings, people and energy surrounding the industry.

Here are a few more upcoming events that should be on the radar of CFOs and their teams.

Part 2: Financial calendar

monday – The Federal Reserve releases the spring edition of the Senior Loan Officer Survey on Bank Lending Practices (SLOOS). Banks said they had tightened lending to businesses and commercial property in the January survey, and business demand for loans had fallen. The SLOOS results for the first quarter are likely to reflect a similar attitude from US banks.

Tuesday – The National Federation of Independent Business (NFIB) releases its Small Business Optimism Index for April. The index has seen 15 straight months of falling below its 49-year average, with small business fears continuing to focus on inflation and hiring plans.

Wednesday – The AICPA & CIMA CFO conference starts today and runs through Friday. This event for CFOs, Controllers and CFOs is located in Salt Lake City and features sessions on key CFO topics. A virtual attendance option is available.

Fintech Nexus (see part 1) starts at the Javits Center in New York.

Will the economy’s resistance to monetary policy be reflected in the consumer price index for April? Economists predict that last month’s CPI numbers will show inflation rolling along, with headline CPI and core CPI 5% holding above year-over-year.

Thursday – The FASB is holding an investor advisory committee meeting to discuss topics such as the statement of cash flows, accounting and disclosure of crypto assets, tax disclosure improvements, and other emerging accounting issues. Remote attendance is available.

The House Financial Services Committee’s Subcommittee on Oversight and Investigations will hold a hearing on the Government Accountability Office’s preliminary review of the regulator’s oversight of Silicon Valley Bank and Signature Bank.

At the Current Challenges in Economics & Finance conference in Madrid, Fed Governor Christopher Waller will talk about financial stability and climate change.

Will producer price inflation continue to decline, as it did in March? The BLS releases the producer price index (PPI) and core PPI data for April. PPI is based on around 100,000 monthly price quotes reported voluntarily online from more than 25,000 selected suppliers.

FRIDAY – Fed Governor Philip Jefferson appears on a panel on monetary policy strategy at the Hoover Institution Monetary Policy Conference at Stanford University.

The University of Michigan publishes its preliminary consumer sentiment index for May. The index has not been above 70 since December 2021. The last time the index fell below 70 before that was December 2011.

Earnings this week — Tyson Foods, Six Flags, Coty, Warner Music, Apollo Global Management, PayPal, Tempur Sealy, Wendy’s, YETI Holdings, Krispy Kreme, Airbnb, Disney, Softbank and others.

Part 3: How controllers can upgrade their CFO support

A critical factor in a CFO’s ability to navigate our uncertain economic environment are the corporate controllers who support their finance organizations. Bryce Armbruster, a controller at Rho, offers five proactive tips for controllers to position themselves as a CFO’s most valuable ally. (May 11)

Quote of the week

“The incentives in banking regulation are so messed up and so many people have an interest in messing them up – it’s absolutely crazy.” – Warren Buffett