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"We do not expect to see a significant uptick in next-day priority services until we see a global recovery and not just a US recovery," Becker said in a note to clients. She said she remained "somewhat cautious" on the whole industry. Last month, FedEx reported a 45 percent drop in quarterly profit due largely to international customers trading down to cheaper forms of delivery and money that the company spent upfront in hopes of eventually reducing costs through, among other steps, offering buyouts for employees to quit. FedEx saw lucrative international priority shipments fall 2 percent during the quarter while less-expensive economy deliveries grew 11 percent. UPS, FedEx and other shipping companies are often seen as economic bellwethers because they make deliveries for a range of businesses in many industries. UPS is scheduled to release second-quarter results before the stock market opens on July 23.
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