每日英語跟讀 Ep.K482: CEOs Are Talking More About Recession
Despite a surprisingly resilient labor market, talk of an economic downturn is on the lips of corporate leaders.
James S. Tisch, CEO of Loews, the hotel, insurance and industrial conglomerate, said on an earnings call with analysts last week that his “fearless forecast” was for recession, but not one that would be as “cataclysmic as ’08 or ’09.”
And William J. Hornbuckle, CEO of MGM Resorts International, told analysts last week that he and his executives were “not blind,” and that they “remain keenly aware of the impact of inflation” and the potential that the economy was headed for a downturn.
Recession has been an increasingly hot topic. It’s customary for large public companies to hold conference calls with analysts after they report their earnings. Of the 409 companies listed on the S&P 500-stock index that have held analyst calls to discuss the most recent quarter, the R-word came up as a topic 165 times, according to Sentieo, a market data provider.
A year ago, “recession” was uttered on 42 earnings calls by S&P 500 firms for the third quarter. Discussions about a recession have been elevated throughout this year, with big year-over-year jumps in the first and second quarters as well.
Two weeks ago, Federal Reserve officials made a fourth supersize interest rate increase in an effort to tame inflation, heightening fears of an economic slump. The Fed chair, Jerome H. Powell, said he thought there was still a window for a so-called soft landing, in which inflation dissipates but the economy does not fall into a recession.
“Has it narrowed? Yes,” Powell told reporters. “Is it still possible? Yes.”
Some economic indicators released last week seemed to back Powell’s view. Last quarter, the gross domestic product rose at a better-than-expected annual pace of 2.6%. On Friday, the government reported that employers added 261,000 jobs to their payrolls in October, which was also above expectations.
Nonetheless, CEOs on 88 third-quarter conference calls said that the Fed’s raising of interest rates to fight inflation was either a major factor slowing their business, or that they expected it to be, according to Sentieo. Last week, Steven Roth, real estate developer and CEO of Vornado Realty Trust, told analysts that because the Fed was “deadly serious” in fighting inflation, “the economy is clearly slowing.”
儘管如此，Sentieo指出，在第三季88場電話會議上，執行長們稱聯準會升息抗通膨，不是自家業績放緩的一項主因，就是他們預期的一項因素。房地產開發商Vornado Realty Trust執行長羅斯上周告訴分析師，由於聯準會在抗通膨上「非常認真」，「經濟明顯正在走緩」。Source article: https://udn.com/news/story/6904/6776445