Davos CEOs more bullish in short-term, politics clouds future

Record ID: 164385

  • Title: Davos CEOs more bullish in short-term, politics clouds future
  • Date: 16th January 2017
  • Summary: DAVOS, SWITZERLAND (JANUARY 16, 2017) (REUTERS) PRICEWATERHOUSECOOPERS GLOBAL CHAIRMAN, ROBERT MORITZ, INTRODUCING HIMSELF REPORTERS (SOUNDBITE) (English) PRICEWATERHOUSECOOPERS GLOBAL CHAIRMAN, ROBERT MORITZ, SAYING: "The CEOs told us they're optimistic about growth but concerned about increasing risks, including government intervention and regulation. We also heard from the CEOs their willingness to invest and think about the opportunities in China five times at the rate of what they're doing with India." PWC LOGO (SOUNDBITE) (English) PRICEWATERHOUSECOOPERS GLOBAL CHAIRMAN, ROBERT MORITZ, SAYING: "What you see is a significant percentage, 38 percent of the CEOs being very confident in their ability to raise revenues, a slight increase from last year but nonetheless an increase, compared to the volatility we've had over the last couple of years. You also see a slight increase in their confidence in the economy on a broad scale basis." CAMERA CREW (SOUNDBITE) (English) PRICEWATERHOUSECOOPERS CHAIRMAN AND SENIOR PARTNER, TIM RYAN, SAYING: "Post-Trump presidency however from a business standpoint there clearly is enthusiasm. And the enthusiasm falls into three broad buckets (categories). Number one without a doubt the anticipation of tax reform. The U.S. has of the developed countries the highest corporate tax rate. Business leaders are very excited about that, including possible repatriation that can go into infrastructure. The second element people are excited about is regulatory reform and just the overall tone to its business, the anticipation that the Trump administration will make that better for actual regulation and tone of regulators in many different sectors. And the third one is the prospect for infrastructure and job creation that brings with it. So CEOs are excited about that." MAN SEATED IN AUDIENCE (SOUNDBITE) (English) PRICEWATERHOUSECOOPERS SENIOR PARTNER, NORBERT WINKELJOHANN, SAYING: "Of course the German economy relies to a certain extent on exports to the U.K. and the question is, do we expect a hard Brexit or is it more a soft landing. We are hoping the latter one will happen. But of course, German managers they are thinking about what they can do instead of that. China is a good market and future market. We are still investing there. We are not so sure what will happen in the U.S. with the U.S., if Trump is going more down to protectionism. Then there will be another problem." APPLAUSE
  • Embargoed: 30th January 2017 20:48
  • Keywords: Davos PWC confidence
  • Location: DAVOS, SWITZERLAND
  • City: DAVOS, SWITZERLAND
  • Country: Switzerland
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0015ZBWCW7
  • Aspect Ratio: 16:9
  • Story Text: Global chief executives are more confident about the economy and the near-term prospects for their companies than they were a year ago, although the impact of recent political upheavals tops their list of longer-term concerns.
    A PricewaterhouseCoopers (PwC) survey of nearly 1,400 CEOs released on Monday (January 16), on the eve of the annual World Economic Forum in Davos, found that 29 percent expected global economic growth to pick up in 2017, up from only 27 percent last year.
    The survey found 38 percent were very confident they could increase revenue growth in the next year, up from 35 percent at the same time last year, which was a six-year low.
    "You also see a slight increase in their confidence in the economy on a broad scale basis," Bob Moritz, PwC's global chairman, told reporters.
    Last year's outlook was particularly gloomy due to two years of falling oil prices and slowing growth in China, as well as uncertainty about the next U.S. president, Moritz told Reuters.
    Although Donald Trump's election is a dramatic shift, some bosses expect business-friendly policies like corporate tax cuts and lighter-touch regulation, and are more optimistic about their own ability to navigate the immediate unknown, said PwC's Tim Ryan.
    Norbert Winkeljohann, PwC senior partner, said that following the Brexit vote in Britain, German managers were starting to think about investments elsewhere.
    "China is a good market and future market. We are still investing there. We are not so sure what will happen in the U.S. with the U.S., if Trump is going more down to protectionism. Then there will be another problem," said Winkeljohann.
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