A sharp drop in Chinese economic growth will Reach on the profits of US firms but Earnings by Apple and other American Firms should Regain once Washington strikes a trade deal with Beijing, a senior White House adviser said on Thursday.
“When we have a successful discussion with China, then Apple’s sales and everyone else’s earnings will recover,” White House Chairman of the Council of Economic Advisers Kevin Hassett said in an interview with CNN.
Hassett said Asian economies including that of China have been slowing a long time since last spring and that China is”feeling the blow” of US tariffs.
“That is having a direct impact on earnings and it’s not going to be only Apple,” Hassett said. “I presume there are a heck of a good deal of US companies which have a lot of earnings in China that are essentially going to be watching their earnings be downgraded next year until you understand we receive a deal with China.”
Apple’s warning on Wednesday about feeble iPhone demand from the holiday quarter was a gloomy omen for Wall Street bulls hoping to get an early gift in 2019 after December’s steep selloff.
Factory activity dropped around much of Europe and Asia in December since the US-China trade warfare and a downturn in demand hit creation in many economies, offering little reason for optimism since the new year begins.