Trump to Apple: Make the iPhone in the United States, not China

Apple warns that disappointing iPhone sales will cause a significant drop in its revenue over the crucial holiday season

Apple warns that disappointing iPhone sales will cause a significant drop in its revenue over the crucial holiday season

The Dow Jones Industrial Average soared 700 points in the latest twist in a wild three months for markets. "China is the biggest beneficiary of Apple, more than us, because they build their product mostly in China", Trump said.

Shares of Apple closed at US$148.26 apiece on Friday, down about 5.1 per cent this week. The tension has dragged on for almost a year, slowing business and dragging down stock indexes worldwide.

Meanwhile the Labor Department said US employers added 312,000 jobs last month, a far stronger result than experts had anticipated.

"The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it", Cook said.

Apple is now the highest-profile multinational corporation to warn that the economic slowdown in China could hurt its business. Analysts expect the United States added 180,000 jobs last month and unemployment held at 3.7 per cent.

"It's hard to square recession worries with the strongest job growth we've seen in years", said Alec Young, managing director of global markets research for FTSE Russell.

Stocks rallied on Friday after Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates. Fears that the Fed may be making a policy error by tightening too fast have contributed to the recent skittishness in financial markets, according to several market experts. The S&P 500 index was up 84.05 points at 2,531.94, while the tech-heavy Nasdaq composite was up 4.3 per cent or 275.35 points at 6,738.86.

Earlier in the week Apple Inc. plunged the most since 2013 after flagging slower iPhone sales, especially in China - a trend the company blamed on Trump's trade war. Technology companies took their biggest losses in seven years.

USA officials are heading to Beijing next week for the first face-to-face talks since Mr Trump and President Xi Jinping in December agreed to a 90-day truce in the trade war as they sought to strike a deal.

Technology, healthcare and industrial firms and banks made strong gains. Microsoft rose 4.9 per cent to $102.21 (U.S.) and Deere gained 4.8 per cent to $150.99.

Samsung said last month it would cease operations at one of its mobile phone manufacturing plants in China, after seeing its share of the Chinese market drop to 1 percent in the first quarter of 2018 versus 15 percent in mid-2013.

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Analysts are now taking a dim view of rising corporate earnings in light of the more challenging global environment marked by slowing global economic growth.

For much of the past year, the trade war between United States and China disrupted the flow of good worth hundreds of billion dollars and sparked fears of a global economic slowdown.

Most major benchmarks around the world were higher Friday, while other assets also reversed their moves from earlier in the week.

Also adding to investor concerns was a report that showed manufacturing activity in USA factories was slowing to its lowest level in two years.

Bond prices also changed course and moved sharply lower.

The rise in tech and media stocks come after the broader market was dragged down Thursday, in part fueled by Apple's announcement that it would miss revenue targets for the year-end 2018 quarter. That helps banks, as higher interest rates allow them to make bigger profits on mortgages and other loans.

European shares recouped losses from a day earlier, with Germany's DAX gaining 2.5 per cent and France's CAC 40 rising 2 per cent. Britain's FTSE 100 advanced 1.8 per cent.

In Asia, Hong Kong's Hang Seng jumped 2.2 per cent.

That same quarter, Apple would stop disclosing iPhone unit sales. Brent crude, used to price global oils, climbed 2% to $57.06 a barrel in London.

The dollar strengthened. It rose to 108.27 yen from 107.77 yen.

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