“Apple CEO Tim Cook was notably reassuring when asked about the prospects of U.S.-China trade talks in a Tuesday interview with CNBC’s Jim Cramer,” Elizabeth Gurdus reports for CNBC. “In the interview, Cook cast the trade-related economic weakness in China as ‘temporary,’ saying it was in both countries’ ‘best interests’ to reach an agreement.”
“‘It is a very complex trade agreement and it needs to be updated, but as I’ve said before, I’m very optimistic that this will happen,’ Cook told Cramer. ‘That clearly will be good not only for us, frankly, but I think more about the world in general. The world needs a strong U.S. and China economy for the world economy to be strong,'” Gurdus reports. “In the interview with Cramer, Cook said he had ‘heard some very encouraging words’ from people with knowledge of the talks ‘very recently,’ and had shared his thoughts and concerns with them.”
“Cook and President Donald Trump have had a mixed relationship, but they’ve been in touch regularly over the course of Trump’s presidency,” Gurdus reports. “According to Cramer, host of ‘Mad Money,’ Cook said ”my information is basically real time,’ and real-time, he feels a lot better… about a possible China deal.'”
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MacDailyNews Take: Bottom?
[A U.S.-China trade deal] would be a big breakthrough and make people feel like they should be buying some Apple down here, [because] the stock is too cheap… I took [Cook’s remarks] as real upside and it made me feel like the stock is in the process of bottoming here. — Jim Cramer
Talks with China are going very well!
— Donald J. Trump (@realDonaldTrump) January 8, 2019
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
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U.S. Commerce Secretary Wilbur Ross: Apple’s earnings miss had nothing to do with U.S.-China trade talks – January 7, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019