From Breakingviews - Maersk recession pain could yet get more acute
of EBITDA in the three months ending September, beating analysts’ expectations, but also warned that a global recession will drive demand for containers down 2% to 4% in 2022, worse than the minus 1% to plus 1% Chief Executive Soren Skou previously predicted. The gloomy outlook is a reversal of fortunes for Maersk, which enjoyed record operating profit when supply chain bottlenecks drove up the average cost of shipping one forty foot container from A to B to $11,000 during the pandemic.
They have now fallen below $4,000, and a recession could drive them down further.. Before Wednesday’s 5% share price fall, the value of the company’s stock was off 30% since the beginning of the year. But there could be worse to come as the shaky global outlook creates a vicious circle. Falling freight rates and volumes could encourage Maersk’s clients, who have flexible contracts, to scale back on their shipping orders.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Pima County Supervisors approve $11 million in new grants for asylum seekersPima County leaders awarded more than $11 million in new grants at the Tuesday, Nov. 1 Board of Supervisors meeting to help care for asylum seekers.
Lire la suite »
Breakingviews - Axing the tweepsElon Musk isn’t messing around. Twitter’s he was starting with a quarter of the employee base. Writing up pink slips en masse will have a ripple effect across Silicon Valley.
Lire la suite »
Breakingviews - Blackstone strikes twice with Emerson carve-outWith corporate debt markets frozen, some of the private equity industry’s favorite tricks no longer work. Blackstone has found one that still does. The buyout firm on Monday announced it was acquiring a controlling stake in Emerson Electric’s heating and air-conditioning division in a deal that values the unit at $14 billion. The transaction employs an unusual structure similar to one Blackstone used successfully five years ago.
Lire la suite »
Breakingviews - Geely’s pricey cars can hope for some premium spinGeely Automobile is hiving off its young electric vehicle brand, Zeekr. The Hong Kong-listed group’s chairman and founder Li Shufu has a lot riding on how the deal is positioned as the valuations of its homegrown rivals crash.
Lire la suite »
Breakingviews - Hong Kong’s steep slide shows misplaced prioritiesHong Kong’s third-quarter GDP 4.5% from a year earlier as consumers and companies slashed spending. The government is trying to rally enthusiasm for its finance sector - as signaled by the flagship Fintech Week and Global Financial Leaders Investment Summit events happening this week. But it is mundane sectors like real estate and retail that are dragging performance.
Lire la suite »