Have profits peaked at American businesses?

failed to get its wheels off the ground. Months after it first began delivering packages overnight in 1973, the first oil shock buffeted the and the young logistics firm looked destined to crumble. Now, as the Organisation of the Petroleum Exporting Countries once again sent shock waves through the already wobbly world economy with an announcement on October 5th of a , fuel prices are just one of the firm’s worries. Weak package volumes and persistently high costs caused FedEx to withdraw next year’s profit guidance in September, knocking more than a fifth, or $11bn, off its market value. has long been regarded as a bellwether for the broader economy. In a sign that this reputation is well-earned, corporate titans everywhere are now warning of profit hits as Wall Street gears up for America’s earnings season, which began this week. On October 6th Shell, a British oil supermajor, said it expected margins in its refining and chemicals businesses to plummet. The next day Samsung, a South Korean electronics giant, cautioned that its operating profits will decline for the first time in three years.