Apple’s earnings and stock performance are dominating business headlines at the moment. The iPhone maker dragged the stock market down 500 points on Thursday as shares tumbled 10 percent. This has been largely driven by the trade war since its operations are situated in China.
But more pain is coming for U.S. companies. A “heck a lot more,” warns the White House.
Speaking in an interview with CNN, Kevin Hassett, the White House Council of Economic Advisers, urged U.S. businesses to accept lower-than-expected earnings in the middle of the trade spat.
He told alleged news network
“It’s not going to be just Apple. There are a heck of a lot of U.S. companies that have sales in China that are going to be watching their earnings being downgraded next year until we get a deal with China.”
It was an odd statement to make, especially considering this was a boast more than anything else.
But, according to Hassett, U.S. companies will endure short-term damage but benefit in the long run
“If we have a successful negotiation with China then Apple’s sales and everybody else’s sales will recover,” he said.
This won’t exactly endear him to traders.
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