FedEx Is Pointing to a Global Recession

By: Curtis Wayne   3/20/2019

FedEx is pointing to a global downturn, unlike anything the world has seem since the financial crisis of 2008-2009.

The following can be found on zerohedge…

“For the second time in three months, FedEx has slashed its revenue forecast for this year.  In an attempt to explain why revenue is declining, FedEx’s chief financial officer placed the blame squarely on the faltering global economy.”

“The use of the word “trends” implies something that has been going on for an extended period of time, and obviously FedEx doesn’t expect things to get better any time soon if they have cut profit projections twice in just the last three months.”

Shipping companies are usually to feel the an economy slowdown. FedEx has cut its forecast twice in just the last few months.  The last decade of low interest rates have led international companies to refinance their debts and take on even more debts.  This has helped many businesses continue to grow, employ more people and increase wages. 

But it also makes companies more vulnerable to a recession because they have more debts and less profits margins to work with.  A slowdown in income will cause many businesses to lose money, forcing them to make major changes or file for bankruptcy like the retail industry has been doing.

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