Why FedEx is a bellwether for the global economy

Justin Ho Dec 19, 2018
HTML EMBED:
COPY

Why FedEx is a bellwether for the global economy

Justin Ho Dec 19, 2018
HTML EMBED:
COPY

FedEx just reported its latest earnings numbers, right in the middle of the holiday shipping season. And while the company says it expects to ship a record number of packages this season, it also announced that it’s cutting earnings estimates for the year by around 10 percent.

On the company’s earnings call, FedEx CEO Fred Smith said “bad political choices” underly the company’s current problems. Examples he gave include Britain’s exit from the European Union, the “immigration crisis in Germany” and the tariffs imposed by the United States.

“You just go down the list, and they are all things that have created macroeconomic slowdowns,” he said.

As it turns out, shipping companies like FedEx can offer a lot of early clues on what the economy is facing now and in the future.

Click the audio player above to hear the full story.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.