Gamco's CEO says econ­omy can weather strong dol­lar, oil rout

The Pak Banker - - COMPANIES/BOSS -

WASHIGN­TON: Mario Ga­belli, chief ex­ec­u­tive of­fi­cer of Gamco In­vestors Inc., said a strong dol­lar prob­a­bly won't hurt U.S. eco­nomic growth, even as the green­back's rally drags earn­ings lower at com­pa­nies that sell their prod­ucts over­seas.

Speak­ing on the tele­vi­sion pro­gram "Wall Street Week," Ga­belli, 73, said there are a num­ber of pos­i­tive fac­tors, in­clud­ing ris­ing wages, growth in jobs and an im­prove­ment in state and lo­cal gov­ern­ment spend­ing, to counter any neg­a­tive ef­fects of a strong cur­rency and the rout in energy prices.

"You have the im­pact of the cur­rency on re­ported re­sults and the im­pact on ex­ports, and that is hurt­ing some of the re­ported num­bers," Ga­belli said. "But I'm not in the camp that will ar­gue that you'll have an eco­nomic slow­down in the next six months. I just don't see it." On Aug. 18, Wal-Mart Stores Inc., the world's big­gest re­tailer, re­duced its an­nual earn­ings forecast for the year, partly be­cause the strong dol­lar is cut­ting into over­seas rev­enues. Cur­rency fluc­tu­a­tions low­ered earn­ings per share by 4 cents in the fis­cal sec­ond quar­ter. The green­back has climbed 17 per­cent in the past 12 months against a bas­ket of 10 cur­ren­cies. Gamco, based in Rye, New York, over­sees $45.4 bil­lion. "Wall Street Week" is pro­duced by Sky­Bridge Media, an af­fil­i­ate of Sky­Bridge Cap­i­tal, the fund-of-funds busi­ness founded by An­thony Scara­mucci.

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