Shouldn't Somebody Be Looking Into This?

A week ago, I highlighted a report from the Financial Times, "FedEx Warns on US Recovery," in which the head of the U.S. transportation and logistics company expressed concerns about the health of the economy:

The nascent US recovery could falter because businesses are still reluctant to invest in new equipment and technology, the head of global delivery and logistics company FedEx has warned.

“Business investment went up somewhat in the fourth quarter but is far below what it ought to be in a cyclical recovery like this,” Fred Smith, chairman and chief executive of FedEx, told the Financial Times.

He added that companies were being held back by continuing “uncertainty” over the outlook.

During the downturn many companies, including FedEx, cut their capital expenditures in response to falling demand, moves that in turn intensified the drop-off in economic activity. The levels have yet to recover.

Boosting investment spending was crucial to catalysing a sustainable recovery, Mr Smith said, because it created jobs. When people were worried about unemployment, they tended to spend less, undercutting a driver of the economy.

Now, just seven days later, there appears to have been a miraculous turnaround, as the Associated Press reports in "Fedex Sees Economic Recovery Spreading":

FedEx says the global economic recovery is broadening, as Asia continues to show strong growth and the U.S. economy gains steam.

Fred Smith, CEO of the world's second-largest package delivery company, predicted a "relatively strong" first half as major economies emerge from the recession with steady economic growth in the last six months of the year.

FedEx expects U.S. gross domestic product to grow about 3 percent this year, led by the manufacturing sector, in line with economists' expectations.

I'm not sure if 1) somebody has been misquoted; 2) this is one of the most egregious examples of expectations management I've ever seen; or, 3) somebody forgot to take their meds (or took way too much), but either way, shouldn't an editor, a regulator, or a doctor be looking into this?

Comments

[Mark Oles]

I am glad you posted this update. As soon as I read the latter article, I thought of your original post. Something is very fishy, and it makes me feel like FedEx should be shorted....

[Mark Wolfinger]

It could be as simple as two different spokespeople with different points of view.
Not likely.

[sckofthismrkt]

so what else is new? this among other things, happens daily. Its countless lies, deceit, entrapment and fraud. That's what our economy is based on, that's what are lives are based on and our children will carry that mantra into the future.

Congratulations for NOT standing up and screaming for accountability.

[JohnS]

I feel the same, as soon as read this i remembered the previous financial Times post.
Probably spelling the truth was not good for some people so they asked him to change his speech, result is absurd.
This is what wall street is, full of lies. when things get wrong people easily lie.
I remember last week i saw Toll Brothers VP on the TV,Yes it was Kudlow report :) he said he is expecting the housing market grow 6% this year, its another clear lie, he knows this is a lie but just to delay his debtors he is picturing a bright future.

[Luke]

i am tired of the mendacity. It is growing old very quickly.
I don't believe any corporate bullshit artist or government con man.
They manipulate the figures to suit their purposes. I've watched all these corporate MBA whores totally destroy corporations and people's lives.
It's true and not true--simply Alice in Wonderland. Take the blue or the red pill.

[DavosSherman]

Fuck mainstream "reporting" stick with the blogs, they aren't on the advertising take.

[ARJTurgot]

From the data presented, I'm not sure there's that much inconsistency. One's talking about future projections and the other past quarterly results. I'd want to look at the whole statement first.

[Troy Ounce]

Well spotted!

[NowWhat]

I am sick of them telling us that its going to ruin our children and grandchildren.

Its ruining our lives now, not the future, NOW

[Bob Cramer]

Just got back from Hawaii. The Ala Moana shopping center(largest open air shopping center in the world) was PACKED with Japanese tourists, buying tons of luxury goods (Tiffany, Prada, etc.)
Don't know if the economy in Japan is better, or people are just tired of waiting for better times.

[Rick]

Ever heard the old accountant joke, about the business man that asked is new accountant about how things look, and the accountant replies; how do you want them to look?

[alex west]

hello mr Panzner,

thats too easy. you probably missed one.. :)

remember Mr Obama told 'he admires CEO of FedEx and etc'..
well I guess after first interview FedEx CEO received some kind of
call//TIP ( probably from Mr Rahm Emmanuel or else ) basically saying ' STOP BULLSHITTING RECOVERY OR UPS will get mr Obama nod of approval'.. see.. :)

well its only wild guess..
alex

ps
http://www.businessweek.com/news/2010-02-11/obama-admires-fedex-s-smith-among-ceos-who-give-economic-advice.html