Report: GE chief slams China, Obama
The Financial Times says Immelt worries about Chinese protectionism and Obama's anti-business mentality. GE says he was misquoted. You decide.
He warned, the Financial Times said, that the world’s largest manufacturing company was exploring better prospects elsewhere in resource-rich countries, which did not want to be "colonized" by Chinese investors.
Immelt also had harsh words for President Obama, the newspaper said. Immelt lamented what he called a "terrible" national mood and expressed concern that overregulation in response to the global financial crisis would dampen a "tepid" U.S. economic recovery.
Business does not like the U.S. president, and the president does not like business, he said, making a point of praising Angela Merkel, Germany's chancellor, for her defense of German industry.
"People are in a really bad mood" in the U.S., Immelt said. "We are a pathetic exporter. . . . We have to become an industrial powerhouse again, but you don't do this when government and entrepreneurs are not in sync."
News reports of the speech were circulated widely and forced GE to put out a statement arguing that Immelt's statement had been taken out of context. Moreover, the company argued, the story was inaccurate.
Immelt's comments, the statement said, made at a private dinner, "focused on the relationship between business and government in general and did not single out President Obama." The statement also said Immelt discussed the attractiveness and importance of China as a market for GE.
GE was down 2.1% to $13.83 this afternoon. The Dow component's shares fell 11.8% in June and are off 6.7% this year.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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