With his policies, particularly protectionism, Trump is about to throw the US’ world leadership in the bin. He sold an illusion to his voters since the industrial jobs which disappeared with globalisation and technology will not return. What is clear is that the consequences will hurt us all.
This year may be remembered as either the beginning or the end of the golden age of billionaires. One has miraculously become president of the United States. According to Oxfam, the eight richest billionaires in the world hold as much wealth as the poorer half of humanity. One of those eight, Warren Buffett, has recently been canonized in a rather hagiographic HBO documentary that retraces Buffett’s career.
Mexico seems to be one of the countries most threatened by Trump’s protectionism plans. The prospects, however, for Mexican companies are better than many investors fear.
Germany’s external trade figures are an insult for the EU and the euro- it reaches the incredible figure of 300 billion euros, or 9% of GDP. It doesn’t look like the US would be too unhappy about getting rid of the single currency, with the help of Le Pen and others.
Mari Pinardo | As advisor to the Democratic Party for years, Juan Verde is still perplexed by Donald Trump’s victory. Fearful of what the new administration means for the US economy, he doubts that Trump has the capacity to develop the promised infrastructures plan.
Assuming that Trump’s getting US presidency has turned global establishment upside down, markets are under currents of diverging US, but not leaving aside domestic factors. In the case of Asian, on one hand, the likelihood of stronger US data leading to higher USD rates is pulling Asia rates higher, as reported by BoAML. On the other hand, flush local liquidity conditions, lackluster pick up in domestic demand and easing stance of Asian central banks are pushing Asian rates lower.
Reagan is a precedent for Trump as Krugman says. We can envisage what Trump’s early years will be like thanks to Reagan. And we could see a similar situation to what was known in the Reagan years as the twin deficits due to the size of the fiscal and external deficits.
In general, the economic policies announced by Mr. Trump champion “strong capitalism”, where success is awarded and the reverse, which should be a good thing. But Ahorro Corporacion does not agree that the protectionist measures announced, which in their view imply increased regulation, limit competition and so the efficient assignation of resources, are positive. Analysts have tried to quantify the possible outcome for Spanish companies.
Since Donald Trump’s victory in the US elections, the markets have seen declines in fixed income securities – bonds have lost 1.5 billion dollars – and rises in equities – with the value of global equities rising by 1.7 billion dollars. The emerging markets have retreated, while there has been an improved performance from cyclical sectors, particularly the financial sector. So we need to ask what will be the best bets for investors once Trump’s presidency begins.
Donald Trump is clearly interfering with corporate liberty, directly criticising on Twitter every investment the big companies make. But the question is that he functions by and for the cameras and hasn’t taken in what the rule of law is. So you can’t ask him to have respect for regulations and institutions. He will be sworn in today.