FedEx’s performance in the first quarter fell short of expectations.
Jamie Dimon, CEO of JPMorgan expressed similar concerns a few weeks back.
FedEx CEO Raj Subramaniam predicted a worldwide economic downturn in an interview with CNBC’s Jim Cramer this past Thursday.
This forecast follows Subramaniam’s disclosure that FedEx’s performance in the first quarter fell short of expectations. Additionally, the corporation is no longer providing annual projections.
When asked by Cramer whether a global recession is imminent, FDX’s CEO said, “I think so. But you know, these numbers, they don’t portend very well.” In addition, he said that FedEx’s stock dropped 15% during Thursday’s extended trading session.
Global Recession Soon?
According to FedEx’s new CEO, the company’s decline in performance is due in part to global economic uncertainty. He attributes the revenue reduction in Q1 2022 to weaker worldwide demand. Later, he said, “We are a reflection of everybody else’s business, especially the high-value economy in the world.”
Subramaniam stated:
“We’re seeing that volume decline in every segment around the world, and so you know, we’ve just started our second quarter. The weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”
Jamie Dimon, CEO of JPMorgan expressed concern about the state of the American economy, saying that “something worse” than a recession is possible, a few weeks back. The CEO warned that “storm clouds” were brewing over the global economy because of rising interest rates, quantitative tightening, oil prices, the conflict in Ukraine, and rising tensions between the United States and China.
The prolonged crypto winter continues with almost all crypto back to their yearly lows. Bitcoin is trading below $20k and Ethereum has taken the worst hit post-merge, trading at $1429.50 as per CMC.