Podcast: Why Shipping Packages Will Probably Cost You More in 2020
USPS is to raise shipping prices next year. Fedex and UPS could follow.
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Three numbers to start your day:
—over the past year. The post office reported its fiscal fourth-quarter numbers on Thursday.
The enormous loss comes with a simple explanation: People are sending less mail every year. But it actually wasn’t all bad news. Postal revenues managed to grow slightly thanks to Americans sending more packages. The USPS had also raised prices, which helped grow revenues.
And it plans to do so again starting in January. That gives FedEx (FDX) and United Parcel Service (UPS) cover to raise their prices as well.
The plunge came after the networking company issued a gloomy warning about its prospects for the current quarter. Cisco (CSCO) said it expects a decline in revenue and cited a long list of headwinds. They include slowing spending by telecom carriers, economic weakness in Europe, and trade war-related issues in China.
That negative outlook outweighed better-than-expected earnings for Cisco’s latest quarter. About a dozen Wall Street analysts cut their price targets on the stock as they incorporated Cisco’s guidance into their models.
That’s according to the Federal Statistical Office of Germany. It’s barely growth, but still better than what economists had been expecting: a 0.1% contraction.
Europe’s largest economy has been stagnant in recent quarters —with manufacturing and industrial production contracting. And even though the European Central Bank has continued to provide stimulus such as lower interest rates, it hasn’t been able to boost growth.
But the ultra-low interest rates have been good for stocks. The German DAX stock index is up 25% this year.
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