(Stock Market): Trump advisor Kevin Hassett: 'Heck of a lot of US companies,' not just Apple, could see China troubles
Trump advisor Kevin Hassett: 'Heck of a lot of US companies,' not just Apple, could see China troubles
S E E D E D C O N T E N T
Trump Advisor Kevin Hassett (Photo Credit: Ashley Stringer)
Hassett's remarks to reporters outside the White House Thursday, came as Apple shares were getting slammed after CEO Tim Cook acknowledged a slowdown in fiscal first-quarter sales , in an investor letter released late Wednesday. Cook said, in a subsequent CNBC interview, that "trade tensions between the United States and China put additional pressure on their economy."
"Their economy, for them, you might call a 'recession.' It's slowing down in a way that they haven't seen in a decade."
Trump's trade war is having an ever increasing effect on the economy . . .
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.The trade war is starting to achieve its goals-- China's economy is in bad shape and getting worse.
And of course as Chinese consumers have less money to spend, this hurts not only Chinese companiess but also American companies such as Apple who sell a lot of products there:
Tim Cook and Apple see company lose tens of billions of dollars amid China tariff war
Apple shares have dropped by more than $70 billion after it revealed it would miss revenue expectations, the first time since 2002, amid a tariff war with China.
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Comments? Any NT users currently own shares of Apple stock?
Don't own any Apple stock, but I think that Apple is sending a huge warning that other companies will be following suit in regard to earnings.
I used to. It was a time when Apple stock stayed relatively flat, so I got impatient and sold it. (At more or less the price I paid for it-- a break even trade).
Then it started moving up and I felt I had made a big mistake!
There's more than one cause of movements in a stock's price-- but in Apple's case its due in large part to the fact that they sold a lot of iPhones in China.
China's always been a great potential market due to its YUGE population...as well as what had been its growing middle class.
American companies who succeeded in getting into the Chinese market had big rewards-- until thanks to Trump's tariffs the Chinese economy really started to go bad-- and the Chinese stopped buying so many iPhones.. . .
And as you mentioned, other companies with business in China will really start to hurt (if they aren't already) as the Chinese economy decelerates---- hurting the Chinese economy has been a big "success" for Trump's trade war