Good morning, CFOs. Marguerite Bérard, CEO of ABN Amro, sees stagflation as a possible risk for companies; Baker Tilly’s latest move; plus, PCAOB proposes revisions to new rule.

When it comes to top worries or risks that companies may be facing right now, Marguerite Bérard, CEO and chair of ABN Amro, is brief.

“Can I say stagflation? Because it's one word,” she told the WSJ’s Emily Glazer at the CEO Council Summit in London on Tuesday, responding to a series of rapid-fire questions. She also noted that inflation is “worrisome.”

In Turkey, for example, “we see inflation rates that are slowly coming down to above 30%. It's really tough because inflation…the analogy with toothpaste, you know, it's very hard to get it back in the tube. So this is probably one of the main concerns on the back of energy prices.”

When thinking about where global capital is flowing, and overall corporate capital allocation, Bérard noted that AI is a good candidate as an area where capital may be flowing too fast currently.

The top five American companies right now invest the equivalent of 2.5% of U.S. GDP, she said.

“This is just enormous. Whether or not the return investments will be there will depend on the speed of adoption by the economy, by companies, just all of us.”

She continued: “Does it mean that the AI revolution is not the most important thing that we are going to experience and deploy in our lifetime? No, I truly believe it is. I'm just saying it's going quite fast in terms of investments right now.”

To hear the interview, click here. 

—Walden Siew

📆 Earnings

• Chewy
• Oracle

📈 Economic Indicators

The Bureau of Labor Statistics releases the consumer price index for May.

Baker Tilly agreed to acquire New York-based accounting firm Anchin, Block & Anchin, a move to expand its audit, tax and consulting operations in the state, the firm exclusively tells the WSJ Leadership Institute’s Mark Maurer.

The deal would effectively more than double Baker Tilly’s practice size in New York, and relocate its headquarters this summer to New York City from Chicago, said Eric Miles, chief executive of Baker Tilly. 

Background and context: Baker Tilly has about 11,000 people, including 1,000 partners, compared with Anchin’s roughly 600 people, including nearly 70 partners. Baker Tilly is the sixth-largest U.S. accounting firm, with $3.5 billion in annual revenue, according to a March ranking from Accounting Today. Anchin ranked 56th, with $157 million.

The acquisition would mark Baker Tilly’s fourth since merging with Moss Adams in 2025, following Sockeye, Kraft CPAs and Berkowitz Pollack Brant.

Baker Tilly’s mega-merger with Moss Adams made it the largest firm in the industry to be partly owned by private-equity investors. Baker Tilly, a year earlier, sold a stake to Hellman & Friedman and Valeas Capital Partners, one of many private-equity deals in the accounting space in recent years.

“If you look at our client base nationally, the number of connections to New York, our ability to stand out in that marketplace just makes us stronger throughout the U.S.,” Miles said.

—Mark Maurer

PCAOB Proposes Revisions to New Rule on Quality Control

The Public Company Accounting Oversight Board on Tuesday proposed major changes to a forthcoming rule on auditors' quality controls, in response to pushback from auditing firms that cited implementation challenges.

The auditing watchdog last year postponed requiring firms to assess the risks associated with achieving effective quality controls—such as maintaining accurate calculations of performance metrics—and design procedures to address those risks.

The proposal would rescind the requirement for the largest firms to set up an external oversight function. The proposal also applies to firms actively performing audits, removing the burden for inactive firms to design a system.

The move is in part aimed at reducing firms' compliance costs. The rule is expected to go into effect in December.

—Mark Maurer

Home sales in May posted the biggest rise this year, a sign that the housing market’s crucial spring selling season may be showing signs of life after a sluggish start, our colleague Nicole Friedman reports.

📣 Exclusives

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• White House Reins In AI-Testing Unit as National-Security Concerns Grow

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📈 Earnings wrapup

• Casey’s General Stores Profit, Revenue Rise, Helped by Pizza Sales
• Cracker Barrel Posts Surprise Profit, Lifts Outlook for Year

For more earnings news, click here.

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.