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All thanks so much so FedEx shares surging CEO Fred Smith -- -- has promised for big changes that shipper announcing a quote.
Improvement plan mostly cross cuts intended to -- pretax earnings one point seven billion dollars in the next four years.
Investors seem to like the news but let's find out of our next guest is just isn't easy Astec.
Donald -- his senior research analyst at -- -- partners and he joins us on the phone right now.
From the aforementioned analysts' meeting in Memphis.
Thanks so much for joining us there was a lot of hype and buildup in to -- says Fred Smith said.
You know wait wait wait we're gonna tell you what we get together and have this two day meeting do you think he delivered.
On all the -- Well I think you get the last stand up -- that's -- the stock price is telling you today.
You know what's really interesting here is is that if you look across -- cyclical stocks the industrial stocks.
Or -- basis.
What you noticed that with but say it best.
Open nine to -- quiche tribal economic outlook for the domestic economy.
Decelerating economies in Europe.
Rates and growth in Asia.
Most of the kinds of companies like spread acts that are industrials were cyclically sensitive -- not very optimistic.
What they're basically saying look we're going to be able to deliver what is.
Three plus dollar share earnings improvement just on the current economy just aren't are not -- fuel.
Because of these initiatives that were objecting that certainly that'll -- Biggest through four years -- all of these measures to be put in place.
I need to -- -- -- -- -- on the screen right now mean you were talking about the global economy we can put that chart back up there's a really scary chart that FedEx put out relation to this call out about export trends right now.
And it is this dramatic downward trend for all countries I -- US China candidate UK Japan you name it.
They're all in there.
I mean was in that you know the chart that I'm talking about is it what does that say about the global economy right now I thought this is pretty staggering.
Well I idiot I think it's downright RJR frankly our view is that been an undoubtedly this is what the best athletes in the space.
And -- -- what they're talking about it we eat.
Flat economy quite slow growth economy what they're talking about is deliverable.
If the economy -- salary than what not only what they're talking about deliverable that they'll they'll blow away they'll exceeded -- but.
If you speed -- rates declined our average note rate to deploy continue it -- we're headed into a recession and although the cost cuts in the world.
-- -- -- -- -- -- -- Yeah yep let me ask you get his take unite to one of really one of their sacred cows -- -- -- the express air freight.
What do you think he's gonna do there is it enough what does it mean to you.
What it is not -- what he's doing is it's -- eight -- the girl they kindred they have split.
I wouldn't -- -- sacred cow what I would tell you is who's there's there.
What they're doing is reviewing that -- -- -- taking out there out 30s40 year old 740 sevens and replacing that would do.
-- that require fewer pilots to fly an -- much more fuel efficient.
It's just good business practice as part of the ongoing development you know this company start with little falcon jets.
And it obviously that was forty almost forty years ago there's obviously grown and developed and more.
Constantly sent -- to become who they are which is a dominant global supplier of transportation Serbs.
Okay Donald bond thanks some experience I we appreciate it you back inside that.
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