FEDEX.
IN A WAY WHAT THESE TYPES OF
REPORTS BECOME IN THIS DAY AND
AGE WE’RE SO RELIANT ON SHIPS
COMPANIES FEDEX, UPS, IN THE
MIDDLE OF A PANDEMIC.
WHAT IS YOUR TAKEAWAY HOW THE
COMPANIES ARE DOING?
>> THE FEDEX STORY IS INCREDIBLE
ONE.
THIS IS INCREDIBLE COMPANY FROM
THE BEGINNING.
FRED SMITH IS GOOD FRIEND OF
MINE, ONE OF THE GREAT CEOs
ALL TIME, HE WAS THE ONE CAME UP
WITH THE IDEA ALL THE PEOPLE IN
THE BUSINESS SCHOOLS SAID IT
WOULD NEVER WORK.
HE CREATED A GREAT COMPANY.
BUT WHAT IS SO INTERESTING IT,
WAS ONLY MAYBE A YEAR TO A
YEAR-AND-A-HALF AGO, CONNELL,
WHEN A LOT OF PEOPLE THOUGHT
THAT BECAUSE AMAZON WAS GETTING
INTO THE DELIVERY BUSINESS THAT
THEY WOULD WIPE OUT FEDEX,
REMEMBER THAT?
NOW YOU’VE GOT FEDEX WITH RECORD
EARNINGS.
IT’S A GREAT COMEBACK STORY.
AND IT IS, I THINK GERRI WILLIS
PUT IT VERY WELL.
THIS COMPANY IS SO
WELL-POSITIONED IN TERMS OF
THEIR LOGISTICS TO DEAL WITH A
CRISIS LIKE THIS.
CONNELL: TALK ABOUT AMAZON
TRYING TO WIPE OUT FEDEX, UPS,
WHAT ABOUT ONE OF THOSE
COMPANIES WIPING OUT THE POSTAL
SERVICE AT ONE POINT?
THERE IS PLENTY TO GO AROUND THE
WAY THINGS ARE GOING RIGHT NOW.
>> WELL, YEAH.
POSTAL SERVICE IS FACING SOME
PRETTY STIFF COMPETITION NOW
FROM ALL OF THESE DELIVERY
SERVICES THAT ARE MUCH MORE
EFFICIENT.
WE’LL SEE WHETHER THE POSTAL
SERVICE SURVIVES.
AS YOU KNOW, YOU REPORTED IT,
THE POSTAL SERVICE AS MAJOR,
MAJOR FINANCIAL PROBLEMS RIGHT
NOW.
LORD KNOWS WHETHER THEY WILL BE
AABLE TO COME OUT OF THIS
WITHOUT A MAJOR BAILOUT.
BUT YOU KNOW I HAVE NOT HAD A
CHANCE, YET, CONNELL TO READ
THOSE HUNDREDS OF PAGES OF THIS
NEW STEMLOUS BILL THAT BLAKE
BURMAN WAS TALKING ABOUT BUT IT
DOES LOOK AS THOUGH WE’RE
TALKING ABOUT NEAR TRILLION
DOLLAR DEAL.
I REMEMBER WHEN A TRILLION
DOLLARS WAS A LOT OF MONEY.
WE USED TO TALK ABOUT
100 BILLION-DOLLAR STIMULUS
BILLS.
THIS IS ONE TRILLION.
THIS IS ON TOP OF THE ABOUT
$1.6 TRILLION THAT IS ALREADY
BEEN PROVIDED IN GOVERNMENT AID
THIS YEAR.
SO WE’RE TALKING ABOUT THIS
YEAR, SO PEOPLE GET A SENSE OF
THIS, 2 1/2 TRILLION DOLLARS OF
FEDERAL AID TO DEAL WITH THIS
CRISIS.
INCIDENTALLY THAT IS MORE MONEY,
CONNELL, THAT IS RAISED EACH
YEAR FROM THE FEDERAL INCOME
TAX.
SO WE COULD, FOR THE COST OF ALL
THESE BAILOUTS WE COULD HAVE
ELIMINATED EVERY SINGLE
COMPANIES, SINGLE WORKERS TAX
LIABILITY ENTIRE YEAR CHEAPER
THAN DOING THIS.
HERE WE ARE.
WALL STREET LOVES IT.
I AM SOMEWHAT SKEPTICAL THIS IS
GOING TO RESCUE ALL EVER THESE
BUSINESSES THAT ARE FACING SUCH
A TOUGH TIME RIGHT NOW WITH 40%
OF THE RESTAURANTS NOW FACING
CLOSURE BECAUSE OF, YOU KNOW THE
FACT THAT THIS IS OBVIOUSLY
BETWEEN THANKSGIVING AND
NEW YEAR’S IS THEIR BIGGEST
SEASON AND SO MANY OF THESE
RESTAURANTS PANNED STORES ARE
CLOSED DOWN.
CONNELL: TALK ABOUT THAT A
LITTLE BIT, STEVE.
ONE WORD OR FEDEX.
IT DID NOT PROVIDE A FORECAST
FOR NEXT YEAR.
MAYBE THAT IS WHY THE STOCK IS
LITTLE BIT LOWER.
EVERYTHING LOOKS GOOD FROM THE
COMPANY’S EARNINGS REPORT.
IF YOU LOOK AT ECONOMY, JOBLESS
CLAIMS FOR EXAMPLE, CAME IN.
THEY WERE CLOSE 900,000 FOR A
SINGLE WEEK.
885,000 PEOPLE APPLIED FOR
UNEMPLOYMENT.
THAT WENT UP FROM A YEAR, A WEEK
AGO AND THERE IS AN ARGUMENT TO
BE MADE I THINK, MANY ECONOMIST
EVEN MADE IT IF WE DON’T GET
SOMETHING DONE ON STIMULUS, THAT
WILL ONLY GET WORSE THE JOB
MARKET.
THOSE BUSINESSES MANY COME ON
THE SHOW, A LOT OF THOSE SMALL
BUSINESSES WHATEVER THEIR
FEELINGS ARE ON THE PHILOSOPHY
BEHIND STIMULUS, LISTEN I NEED
SOMETHING, IF YOU FORCE ME TO
SHUT DOWN, I NEED SOMETHING
SOON.
WHAT DO YOU SAY TO THAT
ARGUMENT.
>> CERTAINLY THE BUSINESSES ARE
GOING TO NEED SOME HELP SO THE
GOVERNMENT SHUT THEM DOWN.
MY HEART BLEEDS FOR THEM,
PROVIDING SHORT-TERM ASSISTANCE
FOR THOSE BUSINESSES CERTAINLY
MAKES SENSE.
PROVIDING AID FOR INDIVIDUALS.
I’M NOT A HUGE FAN OF HELICOPTER
MONEY, HAVING HELICOPTERS DROP
DOLLAR BILLS OUT THE WINDOW.
BUT THAT IS WHAT WE’RE GOING TO
DO.
LET’S BE CLEAR MY MODEL, MY
FRIEND CASEY MULLIGAN DID A
STUDY CAME OUT EARLIER THIS
WEEK, BY EXPANDING UNEMPLOYMENT
BENEFIT $300 A WEEK, ON TOP OF
THE NORMAL BENEFITS THAT WILL
COST THE ECONOMY 3 TO 4 MILLION
JOBS.
HALF THE WORKERS COLLECTING
UNEMMOMENT BENEFITS GET MORE
MONEY FROM THE UNEMPLOYMENT
BENEFITS WITH THIS ADDITION THAN
IF THEY GO BACK TO WORK.
THAT IS A DUMB POLICY.
REMEMBER WE FOUND THIS OUT BACK,
REMEMBER IN JUNE AND JULY WHEN
YOU FINALLY HAD A RECOVERY
COMING IN THE ECONOMY, REMEMBER
THAT, CONNELL?
ALL OF SUDDEN BUSINESSES SAID
THEY COULDN’T GET PEOPLE BACK TO
WORK BECAUSE THEY WERE PAYING
$600.
I’M GLAD THEY DIDN’T GO TO $600.
$300 ON TOP OF NORMAL BENEFITS
IS PROBLEMATIC.
CONNELL: WE TALKED ABOUT THAT A
NUMBER OF TIMES.
LOOKS LIKE THEY’RE GOING
FORWARD.
WE’LL SEE WHAT THEY COME UP WITH