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Global companies are feeling the impact of a slowdown in the Chinese economy.<\/p>\n
Why it matters: <\/strong>China is not only the largest consumer market<\/a> in the world, but it also remains a key component of global supply chains.<\/p>\n Driving the news: <\/strong>Chinese leaders held their quarterly economic meeting on Thursday and “all but acknowledged” that their annual GDP growth target would not be met, the WSJ reports<\/a>. <\/p>\n Details: <\/strong>Apple, which derives close to 20% from the “greater China region” (which includes Taiwan and Hong Kong) reported a 1% decline<\/a> in revenue from the area from the same period last year, which was better than feared. <\/p>\n The big picture: <\/strong>Goldman Sachs issued a new earnings growth forecast<\/a> this week for large and mid-cap companies in China of 0%, down from 4%.<\/p>\n What to watch: <\/strong>Jean-Jacques Guiony, CFO of Luxury holding company LVMH, noted on an analyst call Tuesday that while supply chain conditions have normalized, “the situation [in China] is quite uncertain.”<\/p>\n Our thought bubble: <\/strong>Because Chinese leaders did not signal any change to their zero COVID policy today, multinationals will likely continue to hit bumps until vaccination rates<\/a> in the country improve. <\/p>\n <\/div>\n\n
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