While U.S. stocks mostly recovered from China's move to devalue its currency, Cuttone & Co.'s Keith Bliss says to expect lasting effects.
It was a rocky week for the markets with China devaluing it's currency. Markets seek to have mostly recovered but what lasting damage did it do. Here to discuss is Keith bliss director of sales and marketing for toning company hi Keith nice to see you. Thanks Judy good they review. All right so. How much did China's move earlier in the week rattled owners in the stock market. Well rattled quite a bit you could see that in the price action as soon as we saw the devaluation is not just on Monday but then again on Tuesday and actually a little bit. On Wednesday as well as we roll through the through the week and I think the I think the bigger damage to the market now always the uncertainty of what the Chinese Government has up their sleeve. As they tried to staunch stave off any kind of recessionary pressures that made you into the I economy in China have lots conversations with the economists and other investors they think China may already be in a recession the government just trying to. Keep that notification away from the headlines at the moment so I think that's the that's a larger game is not necessarily that it's gonna happen. This dramatic impact on anybody's. Exports into China and by the we're trying to. Is our third largest trading partner when it comes to exports a lot of people don't realize because we import so much stuff from China but they are very large trading partner of ours abruptly about a 125 billion dollars. We exported to China and 2014 sir I'm not sure that the valuations gonna have a large bid impact but I think it's it's more of a confidence factor. What the Chinese Government would do to markets how they would try to manipulate them for their own good it's particularly. I Jermaine as a comes on the heels of what they did inside the stock market Shanghai just a couple of weeks ago so. It's shaking investor confidence I think that's the largest impact that we have to look at right now. Well from the sounds of it seems that that confidence maybe a little bit afraid for some time. What would taking your mind to restore. Investor confidence. Well of Western Conference are trying to think mostly has to do with the Chinese Government perhaps coming out with a statement saying that they had to go to extraordinary measures that felt that it was time for them to do that they were. Against staving off maybe recessionary pressures may be some. Complete dislocation of volatility inside of their economy and the markets and now they're going to start moving out of the way. We hear in the in the in the west we did worry quote unquote free markets. Without a lot of government intervention at least in the day to day activities so I think it's at all. People get a good sense that the Chinese Government is not gonna step in and manipulate things to their. Two there are good at every at every we know about something bad happening in their economy or markets. His lawyers a stay out of way and now wool in engenders more investor confidence at least here in the west to get back in the markets but until then. My senses and again a lot of conversation that is that people are gonna stay away from those markets until until the government gets out of the way it stops are battling. We'll keep lists thank you so much we appreciate your time it's been my pleasure Jeanne. I've been speaking with people is he's the director of sales and marketing for toning company I'm Jeannie airman and this is Reuters.