Dan Celia: Latest Global Economic Uncertainty is a Major Concern
PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia said today that continuing issues with global economies coupled with drops in U.S. manufacturing numbers should be kept front and center.
“As we head into the last quarter of this year, we need to keep the European and Asia economies and markets very much on the front burner,” Celia said. “They are impacting our markets, and we are certainly impacting theirs a great deal. I’m particularly concerned about China falling into its first recession. In addition, there are a number of issues around the globe. In particular, major global indexes hit their lowest levels in a month. This is after U.S. manufacturing activity dropped considerably on Tuesday—well into contraction mode. Anything below 50 is contraction mode, and we’re at 47. This sparks worries that the fallout from the U.S.-China trade wars is spreading to the U.S. economy. Other than the perceived negativity coming from that, it is not actually a dollars-and-cents issue. The dollar is off its highest levels but still very stable, and I think it’s critically important that we maintain the strong dollar.
“A slowdown in U.S. economic growth would certainly remove any optimism about the global economy and the U.S. economy moving forward,” Celia added. “This comes when Europe has been about as close to falling into recession as it could be, and one would expect that by the end of this quarter, Germany, certainly the largest economy in the Eurozone, could easily be in recession territory. One of the things we have been researching here at Financial Issues is a possible recession—for the first time ever—in China, which could have a dramatic impact on economies around the globe, with defaults on nonperforming loans well over $10 trillion to even $15 trillion. This could have a catastrophic effect on all those doing business with China, but particularly those in the financial sector.”
Celia discusses these and other global and economic headlines on his daily, three-hour“Financial Issues” program, heard on more than 650 radio stations and several television networks nationwide.
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