Jake Oubina, a senior economist at Piper Sandler, discusses the potential impact of the ongoing conflict in the Middle East, specifically the missile attacks from Iran against Israel, on the US economy. He suggests that these developments could tip the already slowing US economy into recession due to increased geopolitical tensions leading to disruptions in markets, particularly in oil and trade.
Negative
The current geopolitical tensions in the Middle East, particularly involving Iran and Israel, are likely to lead to increased oil prices due to concerns over supply disruptions. This could negatively impact the US economy by increasing inflation and slowing growth.
Positive
Investors should consider the defensive nature of utility stocks as economic uncertainty grows due to geopolitical risks. Utilities tend to perform better during economic downturns and could be a safer investment during this period.
Apollo chief economist Torsten Slok weighs in on a number of economic topics on ‘Barron’s Roundtable.’
Oct 11, 2024, 10:10 AM
The unchanged reading in the producer price index for final demand last month followed an unrevised 0.2% gain in August, the Labor Department's Bureau of Labor Statistics said Friday.
Oct 10, 2024, 8:09 PM
The government is investigating 37 companies - but has yet to hand out any fines, the BBC discovers.