United CEO Oscar Munoz downplayed fears of a recession, arguing the economy is sound and all signs point toward continued growth.
Speaking to Jim Cramer on CNBC’s Mad Money, Munoz was asked if a recession was looming. He quickly smiled and shook is head, adding:
I’ve never seen a wider gap between what is being discussed and trying to be pushed and the facts and the figures that we see. So the answer is no.
You can watch the full interview here:
He was also asked about the global economy. He mentioned that Hong Kong is weak, Asia is “okay” the rest of the world is doing well.
The topic shifted to United’s philanthropic impact, with Cramer distinguishing earnings per share from a what he coined “impact per share”.
It was a perfect softball question for Munoz to bring up all the work united is doing in communities across the US. I did like the phrase:
In a world increasingly divided, we choose to be United.
CONCLUSION
A CEO has to walk a fine line between between satisfying his shareholders, employees, and outside actors. In a contentious election cycle, any news on the economy, even if objective, may be construed as political signaling. It reminded me of President Trump putting Apple CEO Tim Cook on the spot this week about the U.S. economy. In any case, United projects a strong U.S. economy continuing. I guess it could not say otherwise…
An honest answer would have been preferable. Perhaps mentioning specific areas of concern such as trade wars that could provide the impetus for a recession. People respect someone who tells it like it is rather than handing out sunny predictions. I’d hoped for better from Munoz.
Is a recession the only possibility from trade negotiations?
Negotiations, no. A trade war would make a recession more likely, though. Bringing up possibilities doesn’t mean he thinks the sky is falling, just that he’s prudent.
So, new emojis here. So instead of a thumbs up, okay, sounds good.
…except in California where regulatory overreach has gone beyond anything imaginable, and coupled with a drive by the teacher’s union to remove Proposition 13 protections for commercial property…..WOW!
If you’re a business that can move or change operations to another business friendly state – by now, you should have already begun the moves. It’s not too late, but begin the moves for the health of your business.
The new whammy to hit companies is the upcoming regulation that makes most independent contractors as permanent employees , except with very few carve outs won by those who had large throngs of lobbyists/flaks hit the pols in Sacramento for their interests.
What happens on January 1, 2020? – I will not be using independent contractors in California and shift work to other states. Another smack in the face to California.
I already deal with b.s. from the city of L.A., If an employee of mine performs ANY work within the city limits of L.A. over a cumulative period of 30 days in a year, I have to give them 48 hours of sick time. Now to have to manage with independent contractors becoming permanent employees?….NO!
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