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-- thank you very much Scott Davis is a former chairman of the federal reserve bank of Atlanta a member of the president's export committee he is also a member.
-- of the fix the debt commission there is a great deal that this man has accomplished but most important he is this CEO.
But United Parcel Service and he joins us for this exclusive interview now.
From Atlanta he's live I -- at world -- in Louisville we thank you for being here mr.
Davis -- want to get right to a question.
A lot of investors have about the economy not only in the United States but globally.
We heard from your competitor FedEx about cutting capacity in Asia UPS is already done that.
Slowdown in China would signal for most of us bad news looking forward for the economy what can you share for us.
As what you believe will happen with the economy in the United States and globally.
Wladimir is great to be here and thank you for spending the day at world port today.
The economy is about -- I think we thought it would be at the start of 2013.
You know we think it's slow growth US economy.
Growing about 2%.
Europe may be it feels like -- -- in the bottom still no growth maybe slightly negative.
You know and developing world still fastest growing markets for us I think China.
Rather than point 8% may be growing closer to six or 7%.
But the important thing is is not getting any worse and I do see global trade cross border trade increasing.
Okay that's a good sign if we see trade increasing -- UPS's guidance in the first quarter you're still saying I earnings per share growth.
Of roughly six to 12% the target.
I think is ten to 15%.
Has that changed as we get ready for your earnings report in July.
-- we'll update that adamant at the latter part of July but that the biggest drag we had this year was was currency was hurting us.
And we had higher pension expense because of -- a low discount rates at the end of last year.
Take that out we'd be pretty close to our.
Long term ranges we don't see any reason looking into the future that we shouldn't hit that ten to 15%.
So let me bring up an issue you just touched upon the currency.
Exchange that you have to deal with -- -- global player 220 different countries.
We have -- FOMC meeting where we're going to find out what they think is happening with this economy -- just a few minutes we'll have that on fox business and then we'll hear from Ben Bernanke.
You who are an alumni of the Federal Reserve System.
What do you expect to hear from mr.
Bernanke and how is the policy at least the monetary policy a cheap dollars.
Hurting or helping UPS.
Well first -- -- it I think chair Bernanke is done a great job of getting us through the financial crisis.
We get -- to where we are today.
Values as somewhat like teaching a child derided by.
Yeah hold on too long the child -- -- You let go too quick he crashes into the -- the job that the chairman has today is is that balance when the right time.
I think that.
He -- is a better view of that than anybody else out there I would expect him to hold on the child a little bit longer.
But we do see tapering come in down the road.
Currency for us is this something that that we know we had your currencies are broader -- exposure is as Europe.
You know we look twelve months ahead.
And try to -- that to protect our earnings over there.
So I wouldn't say has a dramatic impact.
Over the long term is somewhat of a zero sum game.
So let's talk about not only monetary policy but fiscal policy right -- at home.
We see out congress that essentially has failed to act on tax reform.
Several CEOs like yourself have called on congress to reform the tax code and simplify how is it hurting UPS that this is not.
Been done as of yet.
Well to that point Adam Foley as a said the monetary policy has been a stimulus but tough fiscal policy has been dragged.
For all businesses -- -- not this in the US but from around the world at this point in time.
The last couple years that congress the administration will not make decisions.
There will not compromise.
Within -- -- UPS frankly is our customer base.
Although it -- multinational customers we have the backbone is small medium sized customers they fret they're not gonna invest or not gonna hire people.
Until they understand what the policy is.
And we need energy policy certainly we need tax policy.
We need to understand health care policy.
And all those they're not understood at this point in time.
So that the best thing we could do for our economy.
Is make decisions play like decisions and don't like decisions.
Certainty you'll allow people to to make those investments and hire people.
And let's talk about when you you mentioned congress and decisions they the issue of the dead it used to get a great deal more attention.
A lot of friends since economists it's -- -- win over the New York Times as we pay too much attention.
Two the national debt you would disagree with him I think you believe that we need to fix that that do you not.
Absolutely -- we're heading for a train wreck we cannot just kick the can down the road six months at a time.
I think there's a little bit of that feeling right now in congress -- the trends of change somewhat.
Of a deficit so we're okay.
-- two answers were not okay we need to make decisions.
That'll give us 510 year horizon and right now we're not doing that.
We have at -- six months of visibility out there.
So -- we have a debt problem and we have to solve a debt -- not by looking at three to six months at a time.
I want to ask you couple more questions about not only the trade talks the president has announced.
But more importantly UPS -- future let let me get back to UPS review.
There -- -- talk about a succession.
Story just two weeks ago that the average CEO here is about five and a half years and then moves on.
You have to -- five and a half years are you prepared -- -- may be lay out for the future the succession plans or how much longer you intend to serve in this role.
Thought prefer saw out of my I enjoy the job and we as you know we have a great company so I'm I'm more than pleased to serve us as the CEO of UPS.
But I UPS there were always -- -- succession planning you know from the day I step into this job.
Our board of directors -- look at who's the replace Scott Davis who's next.
And we take a very -- and -- from my job and all the leadership positions in this company.
And I would say what we -- got a great pipeline we've always had great pipeline and UPS.
But I'm not raise my hand to step down today.
That I will take that as we're not going to answer the question partially because.
We'll set the Teamsters -- the the union is voting right now on a new contract the vote will come to an end towards the end of this week next week.
Any indication as to what you expect the outcome today.
Well -- first of all I think that that you know it's it's a good proposed contract for both our employees and for our customers.
And I think that that the Teamsters union leadership unanimously.
Support of this agreement.
The voters out right now ratification is going on we hope to hear.
As early as next week the results of the vote we're very optimistic that the that the contract will be ratified.
Scott Davis we appreciate you joining us on the Fox Business Network I apologize that we've run out of time and I can't ask you about the trade talks with -- because it is so important to the future of this company but the nation but I want to show you something.
This is an original die dad this is the device in 1989.
That your company helped introduce and that they've actually brought -- -- UPS.
Back in the mid eighties so.
-- -- you get a -- -- seeing this antiquated device because as we go forward and I introduced people.
To a Dave Barnes will be talking about the technological future for your company all the best you sir and thank you for joining us thanks -- have -- that --
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