{"id":10773,"date":"2015-08-05T07:41:37","date_gmt":"2015-08-05T12:41:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10773"},"modified":"2015-08-05T07:41:37","modified_gmt":"2015-08-05T12:41:37","slug":"6-warning-signs-that-the-economy-is-in-trouble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10773","title":{"rendered":"6 Warning Signs That the Economy Is in Trouble"},"content":{"rendered":"<h3><a href=\"http:\/\/www.mauldineconomics.com\/connecting-the-dots\/6-warning-signs-that-the-economy-is-in-trouble\" target=\"_blank\">6 Warning Signs That the Economy Is in Trouble<\/a><\/h3>\n<div>On July 14, I wrote about the danger developing in the transportation sector, and things are looking even worse today. Here\u2019s what I mean:<\/div>\n<p><strong>Look Out Below #1:<\/strong>\u00a0Royal Dutch Shell reported its quarterly results last week\u2014$3.4 billion, down from $5.1 billion for the same quarter a year ago\u2014and warned that \u201ctoday\u2019s oil price downturn could last for several years.\u201d<\/p>\n<p align=\"center\"><a href=\"http:\/\/www.telegraph.co.uk\/finance\/newsbysector\/energy\/oilandgas\/11772343\/Shell-slashes-jobs-and-spending-on-prolonged-downturn.html\" target=\"_blank\"><img decoding=\"async\" src=\"http:\/\/ggc-mauldin-images.s3.amazonaws.com\/uploads\/newsletters\/Image_1_20150804_CTD.gif\" alt=\"\" \/><\/a><\/p>\n<p>In anticipation of tough times, Shell slashed its 2015 capital expenditure budget by 20% and is going to lay off 6,500 high-paying jobs (not Burger King-type jobs) this year.<\/p>\n<p><strong>Look Out Below #2:<\/strong>\u00a0UPS is a very good barometer of the consumer end of our economy: It\u2019s the largest component of the Dow Jones Transportation Average both by sales and market valuation.<\/p>\n<p align=\"center\"><a href=\"http:\/\/www.marketwatch.com\/story\/ups-fires-warning-shot-across-the-bow-of-the-stock-market-and-the-fed-2015-07-28\" target=\"_blank\"><img decoding=\"async\" src=\"http:\/\/ggc-mauldin-images.s3.amazonaws.com\/uploads\/newsletters\/Image_2_20150804_CTD.gif\" alt=\"\" \/><\/a><\/p>\n<p>And UPS isn\u2019t very confident about the US economy. Here is what UPS CEO David Abney said in a recent conference call with analysts:<\/p>\n<p>If you just look at in [sic] January, the GDP forecast we thought was going to be about 3.1%. Now the thinking in July is about 2.3%, so let\u2019s say a pretty significant decrease.<\/p>\n<p>Why so glum?<\/p>\n<p>The continued strength of the US dollar and I think this impending rate hike by the Fed appears to be holding back some US growth.<\/p>\n<p>Abney has good reason to complain: UPS\u2019s revenue fell 1.2% over the last 12 months. Not good.<\/p>\n<p><strong>Look Out Below #3:<\/strong>\u00a0Rolls Royce may be best known for its luxury limousines, but the heart of its business is making engines for jet airplanes. Along with General Electric, the company dominates the aerospace engine business.<\/p>\n<p align=\"center\"><a href=\"http:\/\/www.ft.com\/intl\/cms\/s\/0\/1318a16a-23aa-11e5-9c4e-a775d2b173ca.html#axzz3hNLwVb6b\" target=\"_blank\"><img decoding=\"async\" src=\"http:\/\/ggc-mauldin-images.s3.amazonaws.com\/uploads\/newsletters\/Image_3_20150804_CTD.gif\" alt=\"\" \/><\/a><\/p>\n<p>Business isn\u2019t so good. Rolls Royce just issued its fourth profit warning in the last year and a half and is shutting down its $1.56 billion share buyback, introduced a year ago, to conserve cash.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>6 Warning Signs That the Economy Is in Trouble On July 14, I wrote about the danger developing in the transportation sector, and things are looking even worse today. Here\u2019s what I mean: Look Out Below #1:\u00a0Royal Dutch Shell reported its quarterly results last week\u2014$3.4 billion, down from $5.1 billion for the same quarter a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7758,3022,7884,7883],"class_list":["post-10773","post","type-post","status-publish","format-standard","hentry","category-economics","tag-mauldin-economics","tag-royal-dutch-shell","tag-ups","tag-warning-signs"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10773"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10773\/revisions"}],"predecessor-version":[{"id":10774,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10773\/revisions\/10774"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}