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By Jason Stipp and Jeremy Glaser | 03-13-2014 12:00 PM

The Friday Five

China cools, Fannie and Freddie fall, and Amazon's wide moat backs a Prime decision.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to The Friday Five: Morningstar's take on five big stories this week.

Joining me with The Friday Five, as always, is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're welcome, Jason.

Stipp: Up first this week is China. We got some data points from them. Expectations were low for that data, and it didn't even meet those. What does this mean for the Chinese economy and the world economy?

Glaser: Anyone who was hoping that Chinese growth was going to power the global economy over the next few years was deeply disappointed by the data that we saw this week and that we've seen recently out of the country.

Although they're still growing at a more than a 7% GDP rate--and that looks great from a U.S. perspective--that's a big slowdown for them. What seems to be happening is the story that we have talked about for some time of this transition from an investment-led economy to more of a consumption-led economy, and some of the challenges that come along with that.

I talked to Morningstar director of economic analysis Bob Johnson about this earlier this week, and he expects that the impact on the United States in particular probably won't be enormous. But this is a story we're going to be talking about for quite for some time and one that is very important to the broader global economy.

Stipp: A bipartisan proposal this week to wind down Fannie Mae and Freddie Mac hit those stocks hard, as well as a few notable investors. What's the takeaway from this situation?

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