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Global Gloom Spreads, Reduced Profits Forecast, Job Cuts Planned, Expansions Curbed

Globally, the economic prospects appear to be dimming. Bloomberg reported on Thursday more than a half-dozen large corporations were forecasting lowered profit margins, announcing job cuts or paring back expansion plans.

Just 10 days into a new year, the grim outlook and market volatility – on top of trade wars, a slowdown in China, and erratic stock markets – elicited negative reports from the likes of American Airlines Group Inc., Jaguar Land Rover, Macy’s Inc. and BlackRock Inc. Those dark reports joined previous ones from Apple Inc. and FedEx Corp., indicating less than glowing outlooks were ahead. Target may have been the lone positive story.

Bloomberg took a look at a few key industries affected by the current gloom, and found:

– Transportation: Demand threatens sector with American Airlines and Delta Air Lines Inc. facing reduced pricing power; while FedEx Corp. cut its outlook citing trade tensions, especially between the U.S. and China.
– Cars: Jaguar and Ford Motor Co. plan major cost-cutting programs encompassing thousands of layoffs across Europe.
– Retail: China’s economic slowdown is hurting luxury brands like Tiffany & Co. and Louis Vuitton owner LVMH, which are experiencing weaker-than-expected sales; Macy’s, J. C. Penney, and Kohl’s Corp. reported lower than expected U.S. holiday season sales. Conversely, Target posted strong online growth in November and December, as online sales for in-store pick-up surged 60%, and sales at stores open at least a year increased 5.7% and comparable online sales climbed 29%.
– Finance: BlackRock plans a workforce reduction, as does AQR Capital Management, and State Street Corp.
– Industrials: United Technologies Corp. halted the sale of its fire-safety and security business because of recent volatility.
– Technology: Apple Inc.’s sales forecast cut was a big surprise, since it was the first time in nearly two decades that the giant consumer tech company had lowered its outlook.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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