“When we have an effective discussion with China, then Apple’s earnings and everyone else’s earnings will recover,” White House Chairman of the Council of Economic Advisers Kevin Hassett stated in an interview with CNN.
Hassett said Asian markets including that of China have been slowing a long time since last spring and China is”feeling the blow” of US tariffs.
“That’s having a direct effect on earnings and it is not likely to be only Apple,” Hassett said. “I presume there are a heck of a good deal of US companies which have a whole lot of earnings in China which are essentially going to be seeing their earnings be next year till you understand we receive a deal with China.”
Apple’s warning on Wednesday about feeble iPhone need from the holiday quarter was a gloomy omen for Wall Street bulls hoping to get an early present in 2019 after December’s steep selloff.
Factory action dropped around much of Europe and Asia in December since the US-China trade warfare and a downturn in demand hit creation in several markets, offering little reason for optimism since the new year starts.