FedEx’s preliminary earnings announcement did not go over well. We covered it last night when it broke, but it’s worth rehashing, given it just had the worst single-day drop in its history as a public company. 😮
Last night on CNBC’s Mad Money, FedEx CEO Raj Subramanian told Jim Cramer he believes a global recession is coming. The loss in shipping volumes is wide-reaching, and the company has seen weekly declines since its investor day in June.
The company isn’t the only one concerned about the global economy. This week, the World Bank said it’s in its steepest slowdown following a post-recession recovery since 1970. It also noted that it expects central bank rate hikes to continue well into next year as they fight against inflation. Unfortunately, the price to win that battle is likely a further slowdown or loss of growth. 👎
Several famous investors are singing a similar tune. For example, Ed Yardeni expects the U.S. to experience a ‘rolling recession’ as the Fed aggressively raises rates to fix its ‘credibility problem.’
We’ll have to wait and see what the Fed does and says at its meeting next week. But for now, the global economy’s outlook continues to deteriorate as it has most of the year. 🔻