Posted on 09/20/2021 6:43:44 PM PDT by blam
Some of the biggest names in business virtually attended the annual Morgan Stanley Laguna conference last week and warned about the complex nature of soaring inflation.
Much of the discussion was centered around the soaring cost of raw materials, labor, and logistical nightmares. Corporate leaders from 3M Company to Trane Technologies to General Electric Co., among others, all warned about increasing inflationary pressures, according to Bloomberg.
3M’s Chief CFO Monish Patolawala shocked attendees by calling inflation “unprecedented.” He said the impact of higher commodity prices and soaring freight prices would impact its 2021 earnings.
Trane Technologies Plc’s CFO Chris Kuehn told a very similar story: “Unprecedented is the word we’d use around the inflation side.”
At the virtual event, Morgan Stanley analyst Josh Pokrzywinski joked that everyone could check the word “unprecedented” on their 2021 bingo cards.
But what has become an increasing concern, pointed out by General Electric’s CEO Larry Culp, is that inflationary pressures are “increasingly getting structural in nature.”
David Petratis, CEO of lock maker Allegion Plc, said inflationary pressures might stick around two to three years. He said his company is preparing for more persistent inflation, adding “it’s not a transitory situation.”
Diversified power management company Eaton Corporation’s CEO Craig Arnold said supply-chain bottlenecks are fueling price increase this quarter. “Much to our surprise, and to the surprise, really I think of everybody in the industry, we’ve seen that things actually got materially worse,” he said. “I’m hopeful that by the time we get to the end of this year, things have settled a bit,” he added. “But I’ll acknowledge as well — we got it wrong. I think we all got it wrong,” he said. Eaton expects revenue guidance for the current quarter to miss because of part shortages.
Another company is Carrier Global Corp, which warned persistent inflation is ahead. So far, the home appliances corporation can’t raise prices faster than inflation.
Raytheon Technologies Corp said higher commodity and labor costs are beginning to impact the company financially. CEO Greg Hayes said, “I wish I could tell you exactly how long this transitory inflation was going to last.”
Hayes said August’s 5.3% year-over-year gain in the headline consumer price index is a huge number and should be closely monitored.
After listening to some of the biggest names in corporate America, it’s becoming more apparent that current inflationary pressure exists well beyond commodities and is also found in complex supply chains. There has yet to be relief in shipping container or dry bulk costs in a highly interconnected world, and congestion at ports continues to build. This is all affecting companies’ ability to procure supplies.
One thing that corporate leaders didn’t touch on is the increasing threat of stagflation. BofA’s Michael Hartnett recently told clients his macro backdrop for the second half is one of higher inflation, hawkish central banks, weaker growth, i.e., stagflation.
Not unprecedented for those of us who lived through the 70s.
Somebody supported these stupid Democrat sons of bitches.
Probably the same idiots who come here claiming the Republicans are in charge.
Blame the deep state!
This is a natural, entirely predictable effect of Leftist Policies. Last time our country went through this crap was the 1970’s. Jimmah Carter, the Peanut Farmer, was elected president. Dementia Joe and his controllers are Jimmah on drugs.
What? These fools all wanted Joe Biden! To bad the corporate boards will not discipline the foolish executives because they are all dominated by hacks related or controlled by politicians because they were giving out as favors to politicians.
Political incest is killing this country.
I hear that Mitch McConnell is a 4D chess player - for the other side.
“This is all affecting companies’ ability to procure supplies.”
Depending on foreign nations for supplies,can be problematic for the distribution companies and their customers.
The labor and material shortage problems aren’t going away anytime soon.
The United States has become a country that values the nonessential: Sexism, racism, gay pride, and climate change.
Instead of the essential: Agriculture, Industry, & Finance.
Went to the store Renyolds Aluminum foil.long tube heavy duty...7.49 dollars..bought the cheaper store brand...
Central planning causes a lot of pain and suffering. I also remember the news in the 70s showing long lines and bare shelves in the USSR.
The Fed and the Biden regime are doing everything they can to make this worse/ They are all chanting “transitory inflation” while pursuing policies that will only make things much worse
Another buckle up Ping!
So you support the Democrats?
You forgot mining.
Stolen elections have consequences.
No, I support patriots and the Republic as founded. The Republican Party as it stands is useless and ineffective even though Republican politicians are more patriotic than the scum in the Marxist Democratic Party. What I don't support is RINO's. If we cannot rest control of the party from the GOPe leadership in 2022 then I will walk away from the GOP.
If the GOP does not reform by then and McConnell and McCarthy are still in leadership then the game is up. After that I will just be hiding from marxists by registering as a Democrat and waiting for the shooting to start.
What does one expect when you elect the Village Idiot and Town Slut to run the country? Okay, we all know it’s not them actually making any decisions. It’s the Freak Show that surrounds them driving the agenda.
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