Today, Fedex reduced its earning expectation for next year. Its excuses is the higher expenses because of strong business. I do not buy it. How can you have higher revenue but lower earnings? If marginal revenue can not cover marginal cost, then, stronger business is a negative.
BP is going to set up a 20 billion fund to pay claims. I do not believe the 20 billion is enough. The stock is having a rally but not its bonds. if you own the stock, you should switch to bonds.
The market is performing quite good among all the bad news. I do not think it can last much longer.
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