PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celiasaid today that as the yuan took a nose dive in the Chinese market, calls to renew trade talks were front and center.
“President Donald Trump indicated this morning that U.S.-China trade negotiations may be going somewhere,” Celia said. “He said Chinese representatives called the White House twice over the weekend and are looking to restart trade talks. Also this morning, by the way, at the open of the Chinese markets, the yuan fell to an 11-year low. I’m sure that didn’t hurt any in precipitating a call from China to the U.S. to start trade negotiations. The president looks upon this as good news, and let’s hope that the U.S. and the president hold their ground, keeping in mind that China needs us far more than we need them. If you look only at the Chinese banking sector, it certainly is in big trouble.
“I understand President Trump wants to increase trade with China, with China taking more of our goods, but do we really want that with a communist regime?” Celia added. “They could spend 10 years building up their imports from the U.S., thereby building up ammunition to create another trade war and possibly having some ammunition that could hurt us. We don’t need that. Let’s make sure we keep things as they are for now and negotiate a good trade deal for the U.S.
“Our focus must be on the American economy and trade with other nations that will be good for us,” he continued. “We need to think about other nations’ economies, the Eurozone, emerging markets and the currencies of our allies, and we need to understand that, by helping them, we will inevitably also help ourselves. We need to do what we can do to help these other nations—supporting them and helping them from falling into recession. I certainly don’t want this President to do anything for the sole purpose of getting reelected, but I believe that we can turn sentiment to a more optimistic tone with just a few small moves.”
Celia also talked to his listeners and viewers about this weekend’s G-7 Summit, not discounting the attitude Trump comes away with concerning trade.
“My hope is that he comes away with a much more optimistic viewpoint—and maybe even a desire to begin trade negotiations with our EU allies,” Celia said. “This alone would do more for the economy and markets than just about anything else. The president could make this optimism happen. Traders, consumers and business leaders need some positive sentiment—some hope that we are pivoting away from China and into negotiations with other nations to help their stability and bring more optimism to the United States. I believe this president has good business instincts and the ability to think logically and, hopefully, he will.”
Celia added that this week will also be interesting by way of important economic data, such as a second look at second-quarter GDP, which will hopefully hold at 2.1%. Consumer confidence and consumer sentiment numbers will also weigh on the markets. Other expected reports include durable goods orders, personal income, consumer spending and core inflation.
Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on about more than 650 radio stations and several television networks nationwide.
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