Fund managers gird for long trade war after FedEx slide

A profit warning and muted outlook from package delivery company FedEx Corp (FDX.N) is prompting some high-profile fund managers to prepare for the trade war between the United States and China to last longer than many had originally anticipated.

Shares of the shipping company, whose business is often seen as a proxy for growth in the global economy, tumbled 13% Wednesday, a day after it said it planned to ground some planes and cut costs due to the effects of the trade war between the world’s two largest economies.

“We were hopeful of a trade deal and some sort of return to normalcy and that has not taken place,” FedEx’s chief executive, Frederick Smith, said on its earnings call.

Companies ranging from…

Read more posts about business or read the original

This content was imported with an automated system, without human intervention. You can report the removal of content by first reading our Legal Disclaimer