CEO briefing 2009: for corporate pioneers

January 2009

Introduction

Companies have been taking the strain as first the credit crunch and then a full-scale global economic slowdown have hit their balance sheets and their profits. As the effects of this situation are felt across the world, CEO Briefing examines how damaging the downturn has been so far, its probable impact during 2009 and how companies can position themselves to both weather the crisis and emerge positioned for growth.

This report presents the findings of an executive confidence survey, conducted during October and November 2008, the latest Economist Intelligence Unit forecasts from January 2009, and current Norton Rose Group insights on the key issues.

The world economy faces tough times ahead, with chief executives having to make the type of decisions they have not had to wrestle with for a generation. Without doubt, their mettle will be tested as they confront hard, unpalatable choices. There is light beckoning for some, however. Opportunities do exist for the right companies operating in the right markets – for those with strong stomachs and solid balance sheets. Corporate pioneers can exploit these.

CEO briefing 2009 is available in its complete form as a PDF (590KB).

Key findings

1. A steep fall in business confidence epitomises the transition to 2009.
2. Executives in financial services, transport and the retail and consumer goods sectors are most pessimistic.
3. Companies are wary of the risks of doing business in the US.
4. Cost control will be a key priority this year.
5. The value of M&A deals will decline sharply in 2009, but CEOs from stronger, cash-rich businesses will face good value M&A opportunities.
6. Most firms expect to continue investing.

Regional summaries

Asia Pacific (202KB)  (.pdf)
Europe (201KB)  (.pdf)
Middle East and North Africa (206KB)  (.pdf)
North America (202KB)  (.pdf)
Sub-Saharan Africa (201KB)  (.pdf)

Sector summaries

Financial institutions (209KB)  (.pdf)
Energy and infrastructure (206KB)  (.pdf)
Transport (206KB)  (.pdf)
Technology (206KB)  (.pdf)

What the experts say

Speakers’ slides from our London launch event on 20 January 2009.

• Robert Ward (320KB) (.pdf), Director Global Forecasting, Economist Intelligence Unit
• Dennis Turner (2455KB)(.pdf), Chief Economist, HSBC Bank Plc