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Global Trade Collapses: One Of World's Largest Logistics Companies Slashes Forecast; Blames Europe, US Trade
Listening to the iPhone and Alibaba infotainment channel, the name TNT Express has been mentioned exactly zero times today. For those who are unaware, Dutch TNT Express, which UPS tried to acquire in 2012, is one of the world's largest logistics companies competing with UPS, FDX and DHL. And the reason the name is important this morning, and thus why it is being avoided on this side of the Atlantic, is because earlier today it provided the latest confirmation of Goldman showed previously, namely that the global economy has not only hit a brick wall, but is now in reverse, when it warned that as a result of "weak growth in Europe and the US" it would not meet its overoptimistic full-year targets. The result: its stock plunged by 11%. And since global logistics and trade, or lack thereof, is universal, expect FedEx and UPS to follow shortly with guidance cuts of their own in the coming days and weeks.
From Expatica:
TNT Express shares slumped almost 11 percent on Wednesday after the Dutch courier company warned it is unlikely to meet its full-year targets due to weak growth in Europe and the US.
TNT said it was "no longer prudent to maintain our 2015 guidance -- which assumed an economic growth rate in Europe of between 2 and 3 percent -- of an adjusted operating margin of 8 percent" for Europe and the Americas.
The news sent its shares tumbling 10.5 percent to 5.03 euros on the Amsterdam stock exchange.
TNT also warned it was making a provision of 50 million euros ($64 million) to pay a fine resulting from a French probe into alleged anti-competitive behaviour.
Concerns have been mounting about weak economic growth in the EU, with a key survey on Tuesday showing business activity in the 18-nation eurozone slowed this month.
"Overall trading conditions in Europe have deteriorated further and competitive pressures have increased," the company said in a statement.
TNT said in July it was under investigation by the French Competition Authorities (FCA) and that it had cooperated with the probe involving several French and foreign delivery companies since it began in 2010.
"TNT is now entering into a settlement with the FCA with respect to the investigation of alleged anti-competitive behaviour in the French parcels delivery sector," the courier said.
The size of the fine is not expected to be known before the end of 2015 and so TNT "will be making a financial provision of 50 million euros in the third quarter".
TNT Express operates in more than 200 countries and maintains a leading role in the road freight network in Europe. It currently employs some 65,000 people.
Surprised? Don't be. Remember: in the New Abnormal central banks can print everything except trade, which is why yesterday the WTO cut its global trade forecast once again, saying trade in goods will grow by 3.1% this year, much less than the 4.7% the WTO forecast in April. It cited "weaker-than expected GDP growth and muted import demand in the first half," according to a statement. The WTO did the usual hockeysticking for 2015, when it said trade was likely to grow 4.0% in 2015 rather than the 5.3% expected previously, still far below the 20-year average of 5.2%. The excuse, aside from snow in the winter of course, "risks abound in the form of geopolitical tensions, regional conflict and health crises (Ebola)".
Sure enough, Ukraine and Ebola are now the global scapegoats for yet another year of central planning gone wrong: just as we said they would be over 3 months ago.
Finally, keep an eye on Trade, because it really is the most important indicator of what is truly happening with the global economy. It was in April 2013 when we presented "The Most Disturbing Chart From Today's IMF Outlook Revision", showing the collapsing sequential revisions of global trade.
Until such time as trade actually does pick up, there can be no reasonable hope of any regional or global economic growth.
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SANCTIONS BITCHEZ!
Decision Time for the Executive Office
Choice:
- War with increased spending of $170 B per year
- OR End the Sanctions that are damaging EU & the World
all ups and fdx have to do is buyback 11% of their stock
make that an additional buyback of 11%,
Bed bath stock is skyrocketing today
Evidently they used too much fairy dust in their projections.
Maybe the name "Baltic Dry" should be changed to "Baltic Drying Up" !
As I said in May 2013 right here on Zerohedge when yields were allowed to rise:
World is avoding and rejecting USD due to Quantitative Easing.
This won't stop until QE unwound or Saudis halt oil shipments or Military Complex and Saudis assassinate bank lobby insolvent hard heads.
Supply chains breakdown is under way worldwide.
Expect more wars and assassinations, or.................Triple Lehman.
Triple Lehman will fix a lot of things
Always enjoy your POV.
Keep posting!
thx
Triple Lemon I'll buy; but shaken not stirred.
Rhymes with "107."
Debt is what has gone parabolic...cash is King.
The number that makes no sense is the recovery number. We need at least ten to twelve percent economic growth to BE serious about paying down trillion dollar deficits.
With the dollar soaring I think the policy folks are really gonna have to put the "mean" in "means of production."
Guess that's why European Indexs rallied like fucking crazy this morning
Yeah, no shit. What's up with that?
All they need to do is buyback and cook the books and everything will be much better. Money is cheap and will stay cheap.
Wall Street and the government encourages ERON style accounting now.
Fraud and Federal Reserve printing to the max.
Like I said, tongue in cheek, the UPS incident reported yesterday, is about dystopia hitting the pony express services worldwide.
When the blue coats retrench into their forts, and the Apaches take over the territory, the pony express is in big trouble.
Where is John Wayne?
EVERYTHING IS AWESOME! Just say it damn it.
Everything is cool when you're part of a team................
pods
Sitting on the front row of the short bus.......
Used to be called Thompson International Transits.
They changed it when it became an acronym. Can't think why.
That above is TIT; no self respecting dutchman, especially the flying kind, would admit working for such an acronym.
"Trust you parcels to us TITS"....hmmm, not a good sales argument.
The dutch have a red light district for that sort of stuff.
"Trust your packages serviced and delivered by TiTs." would sell better.
Oh, man. All day now, I'm going to be thinking of short brown hotpants and tight brown button front shirts with the top two or three unbuttoned. Why didn't someone think of this sooner? I mean, even I will start ordering all kinds of unnecessary shit online just to have the TiTs van drop by the place. Kinda like Hooters on wheels. Man ... talk about jump starting demand.
Hey, have we had the TIT's pick up today?
What will Dragai say to pump up the markets....Price Stability....we will do whatever it takes.....we will buy everything....whats for lunch....
actually, Draghi's words are known to push down the EURUSD. stawks market highs are a fetish on the other side of the pond, here sov bonds and ailing banks are more critical
Per SCOTUS' obamacare decision, this whole trade slump can be rectified by the issuance of a Commerce Mandate to be enforced by punitive taxation.
It can be written as follows: Prove you spend 100% of your annual income plus that you increase your debt by 20% per year, or your tax rate will go to 100% for life.
It's constitutional per justice fuckhead roberts, and per the big govt cunts out there.
Since 2008 the world has experienced the inverse of a growth model
that was actually fixed, and rigged, to never go down previous to March 10th 2008 @ 11:00am Bear Stearns time, motherfuckers. How many more years will it take before you realize that these markets will never go up again? There is only one way out of the chaos that Alan Greenspan invoked for the world economies en masse, motherfuckers.
Grow the fuck up, USA!
On a more serious note :
Here is an interesting article about who could supply Germany with Gas if the Russian embargo has Putin turning the tap off.
http://www.dailystar.com.lb/News/World/2014/Sep-24/271821-eu-plans-for-i...