“When we have an effective negotiation with China, then Apple’s sales and everybody 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 markets including that of China have been slowing quite a bit since last spring and that China is”feeling the blow” of US tariffs.
“That’s having an impact on earnings and it is not likely to be just 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 basically going to be seeing their earnings be downgraded next year till 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 present in 2019 after December’s steep selloff.
Factory activity weakened around much of Europe and Asia in December as the US-China trade war and a slowdown in demand hit creation in several economies, offering little reason for optimism as the new year begins.