FedEx unleashes fear over bleak economic outlook

16 sep (Reuters) – Las acciones de FedEx se desploman el viernes en las operaciones después de que el gigante del transporte mundial retiró sus previsiones e hizo sonar la alarma por un debilitamiento de la demanda de los consumidores, lo que en golpeaba al the scientist.

The US company joined other major global logistics firms, such as Hong Kong’s Cathay Pacific Airlines and French carrier CMA CGM, who said consumers are saving up to buy essentials like gasoline and food because higher prices discourage buying of luxury goods.

If the losses continue into the session, it will be FedEx’s worst single-day percentage drop, greater than its 16.4% collapse on Black Monday in 1987.

Rival United Parcel Service stock fell 6.8%, XPO Logistics fell 11.2%, and e-commerce giant Amazon fell 2.8%. US stock futures fell overnight on the back of FedEx results.

Across the Atlantic, Germany’s Deutsche Post lost 6.3%, London’s Royal Mail fell 11.5% and Copenhagen’s DSV fell 5.7% on the news.

complex economic outlook

The weak results for FedEx underscore a challenging macroeconomic backdrop as high inflation and concerns about slowing global growth weigh on shipping volumes, said Victoria Scholar, chief investment officer at Interactive Investor.

However, some analysts believe FedEx’s poor first-quarter results are primarily a problem for the company.

“There is clearly uncertainty about the direction of the global economy, particularly in Europe and Asia, but we are struggling to see how that explains the failure of this entire quarter,” analysts at Stifel said in a note.

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(Reporting by Medha Singh, Bansari Mayor Kamdar and Kanaki Deka in Bengaluru; Editing in Spanish by Javier Lopez de Lleida)

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