According to official sources. China's economic slowdown has begun to hurt U.S. companies.
China as the world's second largest economy - and growing - the largest U.S. companies are considered a major source of revenue growth. But a country once boasted double-digit growth in a more moderate growth rate of 7.5%, the credit market was overheated real estate bubble concerns still exist.
Slowdown, the U.S. major name to get more revenue from Asia. Standard & Poor's 18 large exposure to China, where 12 the broader Standard & Poor's 500 Index poor performance. INX index so far this year, including Yum (YUM.N), and Intel (INTC.O), which states that the slowdown in economic growth in China as a headwind.
"China's influence is becoming increasingly important, said:" Over the years, because (U.S.) company's risk has grown up so much Robbert van BATENBURG, Newedge Strategy Director in the New York market.
These concerns led investors to reduce their global emerging market equity risk is lowest in 12 years, according to Merrill Lynch survey.
Industry, luxury goods manufacturers and companies in the consumer goods and services have been established China's huge risk.
On Wednesday, hedge fund guru Jim Chanos said his short Caterpillar (CAT.N),, shares fell nearly 2%. For a long time, Chanos said that China's economy is heading towards collapse, said the company was "tied to the wrong part of the product cycle, in the wrong." Caterpillar's revenue by about 25% from Asia / Pacific region, although it does not will pop up national income.
Bleak
Merrill Lynch Fund Manager Survey pegged to China from June issue most worrying factor.
Survey said fund managers identified as a major tail risk the prospect of a hard landing in China stand out, with 56 percent ranking it first on this measure, only one third of the respondents to its ranking compared to a month ago .
"China has gone from a very difficult transition, as they try to stimulate domestic consumption, inflation and credit crunch has produced a large, said:" The chief investment officer Omar Aguilar, Charles Schwab in San Francisco company's stock.
"I think a lot of people underestimate the effect of China and Brazil. (The future), they may be very conservative estimate, they will be reduced," Aguilar said.
Yum Brands, KFC and Taco Bell (Taco Bell) chain quarterly earnings fell 15 percent, an important market, Yum in China, KFC's sales have been in decline since the last week of December. Yum's revenue nearly 51% came from China, only 34 percent from two years ago.
, Of which about 16 percent of its revenue from China, Intel also lowered its full-year revenue forecast and said reduced capital spending, as it adjusted to a painful contraction in China's PC sales and the weak economy.
Chip maker Advanced Micro Devices (AMD.N) to obtain 58% of its revenue from China, 45% from 2010. The company's quarterly loss of 9 cents per share, ahead of the forecast of a loss of 12 cents. It did not mention China in its press release.
Analysts content without the Chinese People's Bank of China inject liquidity into the financial system, economic growth will continue to decline. Societe Generale bank expects the world's second-largest economy in the GDP growth in the low end of the decade four to five percent.
Aimed at the middle class
Some analysts said the company can afford to focus on projects funded by the central government, its purpose is to relieve the middle class segment of the population from the current approximately 40-41% to 45% or more later this decade, China's economy slowing.
If the company's goal is the middle class, they can enjoy a steady growth in sales in China, but if they continue to focus on export-oriented projects, cash-strapped local government funding, they will be disappointed, according to analyst Nicholas Hyman William Blair & Company in New York.
He noted that the United Technologies Corporation (UTX.N) Otis Elevator unit has been successfully grown in China for the elevator in the country exceeds supply needs.
Beverage companies also growing middle class in order to promote sales. Coca-Cola CEO Muhtar Kent (KO.N) said earlier this week that China is a huge consumer market, a very powerful new middle class.
"We are very optimistic about China's long-term prospects," Kent told reporters.
Nevertheless, the Chinese economic slowdown, particularly in the U.S. industry a bad time, continued weakness in the euro area, sluggish U.S. economic recovery
"China affects all industries, some more than others. Machine name is often more economically sensitive, more volatile, more leveraged, said:" Brian Langenberg, Langenberg research institutions and companies founder in Chicago.
"Caterpillar inventories are back to say the same, but your stock prospects depend what you expect implied growth rate from China," he said.
Caterpillar's revised outlook for 2013, it is possible to update the report earnings next week, reflecting the expected 50 percent drop in its traditional mining trucks and loaders for sale, as well as a 15% decline in sales of excavators by the Bucyrus, the Milwaukee-based company bought in 2010.
"Some companies have been hit, it's a lot of infrastructure, the world's caterpillars, Joy Global and some others. There may be some spillover? There may be, it will likely be the place this quarter will rise," Perry said Adams, Michigan Traverse City, in the northwest bank's vice president.
 



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