Global CFOs Wary of Asset Valuation
Survey of the CNBC Global CFO Council shows that they view the tech sector as overvalued and Bitcoin a purely speculative tool
LONDON AND SINGAPORE, 6 December 2013 – A new survey of the CNBC Global CFO Council released today, shows that chief financial officers from major international corporations are becoming increasingly wary of asset valuations.
The survey, which was conducted amongst Council members from across Europe and Asia Pacific, shows that more than 92 percent of respondents believe that U.S. stock valuations are high, with about a third of those surveyed saying that when looking acquisitions, valuations had been a deterrent to completing deals.
The survey also showed that 62 percent of respondents remain convinced that the Nasdaq Composite is not in a bubble, compared with 38 percent who believe it is.
The technology sector was also a particular area of valuation concern, with more than 83 percent of those surveyed saying valuations in the technology sector as being high, with over 8 percent believing that they are extremely high.
Finance chiefs have similar over-valuation concerns when it comes to virtual currencies with more than 85 percent of CFOs seeing Bitcoin as a 'purely speculative' tool for investors trying to cash in, whereas around 14 percent considered it a 'legitimate currency'. Nearly 64 percent replied that they thought the digital currency was currently in an economic bubble.
The survey also showed that for CFO Council members in Europe:
• 93% of those surveyed see modest improvements to global economic growth in 2014 and only 7% see modest declines
• 60% are planning modest increases to their spending plans in 2014; 33% have stable spending plans and 7% modest declines
• 47% are not worried about rising interest rates in 2014.
The CNBC Global CFO Council was recently expanded to include members from Europe and Asia Pacific. The CFOs represent companies with a total market capitalization of $800 billion for Europe and Asia Pacific.
The elite group, which represents public and private companies from a wide array of different industries, are able to present a global and regional picture of the state of the economy and market sentiment. Council members share their frontline insights and unique views on the key issues and challenges facing today's corporations and the broader business community.
Following the successful launch of Council in the Unites States, the new members make on-air contributions throughout the year to CNBC's flagship morning programme Squawk Box on its regional TV networks in EMEA and Asia-Pacific and online at cfocouncil.cnbc.com.
A full list of the CNBC Global CFO Council members can be found here.
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For more information please contact:
Hugo Foulds, Director of Communications, EMEA
D: 44 (0)20 7653 9398
Valerie Martinez, Manager of Communications, Asia Pacific
D: 65 6326 1123
The survey of CNBC Global CFO Council was conducted between 29th November – 4th December 2013 amongst 26 members in Europe and Asia Pacific. The CNBC Global CFO Council collectively manage around $800 billion in market capitalisation.
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