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Dow Jones hits record high on Trump bump - business live | Dow Jones hits record high on Trump bump - business live |
(35 minutes later) | |
3.44pm GMT | |
15:44 | |
Technology shares are suffering a Trump slump today, as investors calculate that Silicon Valley could suffer under the next president. | |
Shares in Amazon Netflix, Alphabet (Google) and Facebook have all fallen by at least 4%, and Apple and Microsoft are in the red too. | |
Trump’s criticism of companies who sent manufacturing overseas and hire large numbers of skilled workers from abroad, using the H1-B visa, could be bad news for the tech sector. | |
He’s also no fan of Amazon founder Jeff Bezos, whose Washington Post was pretty scathing of Trump during the election campaign. | |
$NDX $Nasdaq tanking, down nearly 2% against a flat $SPX. FANG stocks weighing heavily. $FB -4.5%, $APPL -2.5%, $NFLX -5%, $GOOGL -4% WM pic.twitter.com/u2pxcT101t | |
Updated | |
at 3.44pm GMT | |
3.32pm GMT | |
15:32 | |
JP Morgan: Don't judge Trump by the stock market | |
Investors large and small will be relieved that Wall Street hasn’t crashed since Donald Trump pulled off one of the most surprising election results of the age. | |
But obviously the market reaction plays second fiddle to the wider consequences of America’s choice -- as the protests in New York, Chicago, Boston etc overnight show. | |
Stephanie Flanders of JP Morgan says Trump needs to pass three tests, as the world watches him closely. | |
The first will be for him to build a strong cabinet, with respected figures in key posts of Treasury Secretary and Secretary of State. Second, he needs to continue to give voice to the calmer, more gracious version of himself that was on display in his election night acceptance speech. | |
No-one should expect him to repudiate everything he said in the campaign about open borders and trade deals such as the Trans Pacific Partnership Agreement. But the third test for the President-Elect will be to demonstrate that he does not plan to tear up the parts of the Washington establishment that are actually working quite well – notably, the US Federal Reserve. | |
Flanders points out that Trump’s economic plans will have major implications for the global economy: | |
The combination of looser fiscal policy and increased uncertainty over globalisation would be likely to mean a stronger dollar and potentially higher US inflation and higher interest rates. That is not a hugely helpful combination for the rest of the global economy, especially emerging markets. But that, too, is uncertain and could take time to materialise. In the meantime, my colleagues and I are not predicting a radically different path for the US economy following this result - or for US interest rates. | |
And remember, Trump’s success or failure won’t be measured in stock prices or foreign exchange rate. Flanders says: | |
This is about the kind of country that America wants to be. | |
At the heart of Donald Trump’s appeal was a promise to make it a nation that works better for the mass of voters who feel they have been left behind by globalisation and by the global financial crisis. For better or worse, that is the standard by which every developed country politician will increasingly be judged. Whether Mr Trump will actually deliver with on that promise is another matter.” | |
3.00pm GMT | 3.00pm GMT |
15:00 | 15:00 |
Analyst: Republican unity driving markets up | Analyst: Republican unity driving markets up |
Let’s be honest, most analysts had predicted heavy losses if Trump won the presidential election. And most analysts were wrong. | Let’s be honest, most analysts had predicted heavy losses if Trump won the presidential election. And most analysts were wrong. |
There are four pragmatic reasons to explain why stock markets have rallied since Trump won the presidential race, says Jim Cielinski of Columbia Threadneedle Investments. | There are four pragmatic reasons to explain why stock markets have rallied since Trump won the presidential race, says Jim Cielinski of Columbia Threadneedle Investments. |
Updated | Updated |
at 3.00pm GMT | at 3.00pm GMT |
2.57pm GMT | 2.57pm GMT |
14:57 | 14:57 |
Banks stocks are rallying this morning, with JP Morgan up 4% and Goldman Sachs gaining 2%. | Banks stocks are rallying this morning, with JP Morgan up 4% and Goldman Sachs gaining 2%. |
They’re benefitting from speculation that the Republicans could ditch Dodd-Frank, the legislation brought in to avoid a repeat of the financial crisis. | They’re benefitting from speculation that the Republicans could ditch Dodd-Frank, the legislation brought in to avoid a repeat of the financial crisis. |
Pharmaceutical stocks are up too, with Pfizer gaining 3.6%. Drug companies are boosted by Hillary Clinton’s defeat, as she’d promised to end price-gouging. | Pharmaceutical stocks are up too, with Pfizer gaining 3.6%. Drug companies are boosted by Hillary Clinton’s defeat, as she’d promised to end price-gouging. |
And construction and infrastructure companies are benefitting from Trump’s promise to rebuild American infrastructure. Caterpillar is up 2%. | And construction and infrastructure companies are benefitting from Trump’s promise to rebuild American infrastructure. Caterpillar is up 2%. |
Updated | Updated |
at 3.04pm GMT | at 3.04pm GMT |
2.42pm GMT | 2.42pm GMT |
14:42 | 14:42 |
New all time high for the Dow Jones index as investors continue to welcome Trump's apparent pro-business stance. | New all time high for the Dow Jones index as investors continue to welcome Trump's apparent pro-business stance. |
2.40pm GMT | 2.40pm GMT |
14:40 | 14:40 |
Dow Jones hits intraday record high | Dow Jones hits intraday record high |
Boom! The Dow Jones industrial average has hit a new intraday record high, as the Trump bump reached New York. | Boom! The Dow Jones industrial average has hit a new intraday record high, as the Trump bump reached New York. |
Shares have risen at the start of trading in Wall Street, adding to yesterday’s rally, and defying predictions that markets would slump if Republicans won the race for the White House. | Shares have risen at the start of trading in Wall Street, adding to yesterday’s rally, and defying predictions that markets would slump if Republicans won the race for the White House. |
The Dow is up 115 points, or +0.6%, at 18709. | The Dow is up 115 points, or +0.6%, at 18709. |
And the S&P 500 and the Nasdaq has gained at least 0.5% too: | And the S&P 500 and the Nasdaq has gained at least 0.5% too: |
Investors are still optimistic that Trump will deliver a growth-friendly fiscal stimulus scheme, despite the concerns flagged up earlier in this blog. | Investors are still optimistic that Trump will deliver a growth-friendly fiscal stimulus scheme, despite the concerns flagged up earlier in this blog. |
Indeed, there’s a remarkable u-turn underway, as Wall Street hopes that the billionaire businessman can metamorphose into a responsible president. | Indeed, there’s a remarkable u-turn underway, as Wall Street hopes that the billionaire businessman can metamorphose into a responsible president. |
Conner Campbell of SpreadEx says it shows how fickle investors can be: | Conner Campbell of SpreadEx says it shows how fickle investors can be: |
Before yesterday morning Trump was toxic yet now, following a vulgarity-free victory speech and back-peddling comments about Janet Yellen’s position at the Fed, he is the biggest turn-on the market has seen in months. | Before yesterday morning Trump was toxic yet now, following a vulgarity-free victory speech and back-peddling comments about Janet Yellen’s position at the Fed, he is the biggest turn-on the market has seen in months. |
Updated | Updated |
at 2.41pm GMT | at 2.41pm GMT |
2.27pm GMT | 2.27pm GMT |
14:27 | 14:27 |
FT: Beware Trumpflation! | FT: Beware Trumpflation! |
Never mind mere stagflation, the markets are being spooked by a new and scary-sounding beast. Trumpflation! | Never mind mere stagflation, the markets are being spooked by a new and scary-sounding beast. Trumpflation! |
The Financial Times has coined this term, to explain the big selloff in bond prices today. | The Financial Times has coined this term, to explain the big selloff in bond prices today. |
The fear is that bond investors might stampede for the exits if the new president drives up economic growth, inflation, and inflation expectations, with a debt-financed stimulus programme. | The fear is that bond investors might stampede for the exits if the new president drives up economic growth, inflation, and inflation expectations, with a debt-financed stimulus programme. |
Andrew Wilson, global co-head of fixed income at Goldman Sachs Asset Management, says: | Andrew Wilson, global co-head of fixed income at Goldman Sachs Asset Management, says: |
“Under a Trump presidency we are more likely to see fiscal expansion that drives growth and markets are reflecting that. | “Under a Trump presidency we are more likely to see fiscal expansion that drives growth and markets are reflecting that. |
“There was already latent inflationary pressures from the jobs market - Mr Trump’s election has added fuel to that. Long term inflation expectations are rising and that explains why bond yields are rising and the yield curve is steepening.” | “There was already latent inflationary pressures from the jobs market - Mr Trump’s election has added fuel to that. Long term inflation expectations are rising and that explains why bond yields are rising and the yield curve is steepening.” |
And if everyone tries to sell at once, yields could spike alarmingly and cause a bond crash. | And if everyone tries to sell at once, yields could spike alarmingly and cause a bond crash. |
‘Trumpflation risk' - not a phrase i'd ever have envisaged existing: https://t.co/6CB4RtZ4hG via @FT | ‘Trumpflation risk' - not a phrase i'd ever have envisaged existing: https://t.co/6CB4RtZ4hG via @FT |
Updated | Updated |
at 2.38pm GMT | at 2.38pm GMT |
2.05pm GMT | 2.05pm GMT |
14:05 | 14:05 |
Alan Greenspan, the former head of the Federal Reserve, fears America is entering an era of stagflation -- rising prices, but little real growth. | Alan Greenspan, the former head of the Federal Reserve, fears America is entering an era of stagflation -- rising prices, but little real growth. |
He’s been speaking on CNBC: | He’s been speaking on CNBC: |
Greenspan repeats his warning of stagflation: inflation will pick up and boost profit margins but that will be a "false dawn" @CNBC | Greenspan repeats his warning of stagflation: inflation will pick up and boost profit margins but that will be a "false dawn" @CNBC |
Greenspan also backed Donald Trump over one issue - the regulation of America’s banking sector - saying: | Greenspan also backed Donald Trump over one issue - the regulation of America’s banking sector - saying: |
“I’d love to see Dodd-Frank disappear. | “I’d love to see Dodd-Frank disappear. |
Former Fed Chair Greenspan says 'I'd love to see Dodd-Frank disappear' https://t.co/p3WoT0jb5t | Former Fed Chair Greenspan says 'I'd love to see Dodd-Frank disappear' https://t.co/p3WoT0jb5t |
1.58pm GMT | 1.58pm GMT |
13:58 | 13:58 |
Bond yields surge amid inflation fears | Bond yields surge amid inflation fears |
Ouch! A nasty selloff is underway in the government bond market right now. | Ouch! A nasty selloff is underway in the government bond market right now. |
The price of debt issued by countries such as the US, the UK and Germany is falling sharply, driving up the interest rates (or yield) on the debt. | The price of debt issued by countries such as the US, the UK and Germany is falling sharply, driving up the interest rates (or yield) on the debt. |
Investors appear to be betting that Donald Trump’s economic policies will drive up inflation, should he succeed in slashing tax rates and embark on that debt-fuelled programme of rebuilding America’s infrastructure. | Investors appear to be betting that Donald Trump’s economic policies will drive up inflation, should he succeed in slashing tax rates and embark on that debt-fuelled programme of rebuilding America’s infrastructure. |
As FXTM research analyst Lukman Otunuga puts it: | As FXTM research analyst Lukman Otunuga puts it: |
Pledges of massive U.S fiscal spending have heightened expectations of Trump implementing fiscal stimulus measures, including tax cuts which may bolster profit growth consequently boosting inflation. | Pledges of massive U.S fiscal spending have heightened expectations of Trump implementing fiscal stimulus measures, including tax cuts which may bolster profit growth consequently boosting inflation. |
So, bond prices are a sea of electronic red ink, as investors are less keen to hold low-yielding government bonds in a world of higher inflation. | So, bond prices are a sea of electronic red ink, as investors are less keen to hold low-yielding government bonds in a world of higher inflation. |
Mr Bond is in serious trouble pic.twitter.com/HxtLKDgkfd | Mr Bond is in serious trouble pic.twitter.com/HxtLKDgkfd |
Lower bond prices shows that governments must pay more to service their national debts. | Lower bond prices shows that governments must pay more to service their national debts. |
Longer-dated debt is also weakening: | Longer-dated debt is also weakening: |
Most scary chart for bond investors: Price of 30y German bonds have plunged by 14% since summer 2016. pic.twitter.com/v0XMgXQOPs | Most scary chart for bond investors: Price of 30y German bonds have plunged by 14% since summer 2016. pic.twitter.com/v0XMgXQOPs |
We should remember that bond yields have been driven down to record low levels in recent years, as central banks have hoovered them up through their quantitative easing schemes. | We should remember that bond yields have been driven down to record low levels in recent years, as central banks have hoovered them up through their quantitative easing schemes. |
So a return to normal levels wouldn’t be a disaster. | So a return to normal levels wouldn’t be a disaster. |
Except....a hefty bond selloff would suggest alarm in the markets, and inflict losses on those who have bought at the elevated levels recently. | Except....a hefty bond selloff would suggest alarm in the markets, and inflict losses on those who have bought at the elevated levels recently. |
And that may explain why the FTSE 100 is now negative, and other European markets are lower as this morning’s Trump Bump threatens to fizzle out. | And that may explain why the FTSE 100 is now negative, and other European markets are lower as this morning’s Trump Bump threatens to fizzle out. |
1.24pm GMT | 1.24pm GMT |
13:24 | 13:24 |
Why the markets should be cautious about Trump | Why the markets should be cautious about Trump |
Investors may be taking a big risk by deciding that Donald Trump will become a new man once he crosses the seal in the Oval Office carpet. | Investors may be taking a big risk by deciding that Donald Trump will become a new man once he crosses the seal in the Oval Office carpet. |
The ‘Trump bump’ has been based on a somewhat breezy assumption that the new president will successfully implement the debt-fuelled infrastructure programme that many experts support, while ignoring the chance that we actually enter an era of painful protectionism and trade wars. | The ‘Trump bump’ has been based on a somewhat breezy assumption that the new president will successfully implement the debt-fuelled infrastructure programme that many experts support, while ignoring the chance that we actually enter an era of painful protectionism and trade wars. |
Duncan Weldon, head of research at Resolution Group in London, has just published a ‘must-read’ blog piece, analysing the impact of Trump. | Duncan Weldon, head of research at Resolution Group in London, has just published a ‘must-read’ blog piece, analysing the impact of Trump. |
Here’s a flavour: | Here’s a flavour: |
The markets seem to have decided that [aggressive deficit-financed state spending] will indeed now happen — stocks up, commodities up, bonds down. Indeed, the markets seem to have decided that President Trump will be a relatively normal President, even if candidate Trump was a deeply unusual candidate. I’m not so sure. | The markets seem to have decided that [aggressive deficit-financed state spending] will indeed now happen — stocks up, commodities up, bonds down. Indeed, the markets seem to have decided that President Trump will be a relatively normal President, even if candidate Trump was a deeply unusual candidate. I’m not so sure. |
To adapt a a phrase: “demagogues can stay irrational longer than you can stay solvent”. | To adapt a a phrase: “demagogues can stay irrational longer than you can stay solvent”. |
Still, as a base case a meaningful fiscal easing seems likely. Real estate developers like building stuff after all, Republicans are pretty keen on cutting taxes and this will be a lot easier to get through Congress for a Republican President. This is what incoming Republican Presidents do — they cut taxes in a meaningful way and many supposed deficit hawks useback of the napkin logic to tell themselves “these tax cuts will pay for themselves”. (Actually they won’t). | Still, as a base case a meaningful fiscal easing seems likely. Real estate developers like building stuff after all, Republicans are pretty keen on cutting taxes and this will be a lot easier to get through Congress for a Republican President. This is what incoming Republican Presidents do — they cut taxes in a meaningful way and many supposed deficit hawks useback of the napkin logic to tell themselves “these tax cuts will pay for themselves”. (Actually they won’t). |
But to simply assume that America gets higher economic demand, lower unemployment, a pick-up in inflation and a return to normal interest rates misses the big pictures, Weldon says: | But to simply assume that America gets higher economic demand, lower unemployment, a pick-up in inflation and a return to normal interest rates misses the big pictures, Weldon says: |
Implicit in that line of analysis are assumptions about the Fed’s reaction functions and about productivity growth that need to be questioned. And, crucially, it misses the biggest shift that Trump’s Presidency could bring about — a rejection of “globalisation”/economic openness. | Implicit in that line of analysis are assumptions about the Fed’s reaction functions and about productivity growth that need to be questioned. And, crucially, it misses the biggest shift that Trump’s Presidency could bring about — a rejection of “globalisation”/economic openness. |
And if productivity remains low, some economists fear that steady wage growth, solid corporate profits and moderate inflation is an ‘impossible trinity’ to achieve. | And if productivity remains low, some economists fear that steady wage growth, solid corporate profits and moderate inflation is an ‘impossible trinity’ to achieve. |
There’s lots more here: | There’s lots more here: |
Post: Political Economy & Trump’s Trilemmas https://t.co/Q2hVD1azfn - a long-ish read. | Post: Political Economy & Trump’s Trilemmas https://t.co/Q2hVD1azfn - a long-ish read. |
1.11pm GMT | 1.11pm GMT |
13:11 | 13:11 |
Hello.... the rally in European stocks is petering out. | Hello.... the rally in European stocks is petering out. |
The FTSE 100 has now shed its early gains and is now down 6 points, having been up 50 points at the start. | The FTSE 100 has now shed its early gains and is now down 6 points, having been up 50 points at the start. |
Not clear what’s prompted this... | Not clear what’s prompted this... |
12.53pm GMT | 12.53pm GMT |
12:53 | 12:53 |
Summers: Trump needs concrete plans and experienced people | Summers: Trump needs concrete plans and experienced people |
Larry Summers, the former US Treasury secretary, is cautiously hopeful that the infrastructure plan proposed by Donald Trump could help the US economy. | Larry Summers, the former US Treasury secretary, is cautiously hopeful that the infrastructure plan proposed by Donald Trump could help the US economy. |
He just told Bloomberg TV that he “welcomes and applauds” Trump’s pledge to renew America’s highways, bridges, airports schools and hospitals. | He just told Bloomberg TV that he “welcomes and applauds” Trump’s pledge to renew America’s highways, bridges, airports schools and hospitals. |
It could boost job creation in the short tun, and expand the US economy’s capacity for growth in the medium term, believes Summers - who has often called for more fiscal spending to fight ‘secular stagnation’. | It could boost job creation in the short tun, and expand the US economy’s capacity for growth in the medium term, believes Summers - who has often called for more fiscal spending to fight ‘secular stagnation’. |
But Summers also sounds deeply concerned, saying Trump needs to propose “serious and concrete plans” to address America’s economic concerns, and surround himself with responsible people with “considerable experience”. | But Summers also sounds deeply concerned, saying Trump needs to propose “serious and concrete plans” to address America’s economic concerns, and surround himself with responsible people with “considerable experience”. |
He says calling China a “currency manipulator” is unwise, while repealing the NAFTA trade deal would do enormous economic damage. | He says calling China a “currency manipulator” is unwise, while repealing the NAFTA trade deal would do enormous economic damage. |
And Summers, who served under Bill Clinton, suggets Trump cannot be as divisive in government as he was in the campaign. | And Summers, who served under Bill Clinton, suggets Trump cannot be as divisive in government as he was in the campaign. |
Unless there is a clear sense that all Americans are welcomed and part of his vision of a prosperous America, and all nations are part of his vision o f a prosperous world, I don’t think he’ll be successful in creating the world we all want to see, Summers concludes. | Unless there is a clear sense that all Americans are welcomed and part of his vision of a prosperous America, and all nations are part of his vision o f a prosperous world, I don’t think he’ll be successful in creating the world we all want to see, Summers concludes. |
12.22pm GMT | 12.22pm GMT |
12:22 | 12:22 |
Demand for gold hit a record high yesterday, which tells you a couple of things. | Demand for gold hit a record high yesterday, which tells you a couple of things. |
1) There was a massive flight to safe-haven assets as the shock election result rocked Asian and European markets. | 1) There was a massive flight to safe-haven assets as the shock election result rocked Asian and European markets. |
2) People are buying gold as a hedge against inflation (the price has risen by 0.3% today). | 2) People are buying gold as a hedge against inflation (the price has risen by 0.3% today). |
Somehow, it seems that yesterday was a busy day for #gold: COMEX aggregate gold trading volume hit a record high (h/t @EdVanDerWalt) #Trump pic.twitter.com/TC03csJ6Mw | Somehow, it seems that yesterday was a busy day for #gold: COMEX aggregate gold trading volume hit a record high (h/t @EdVanDerWalt) #Trump pic.twitter.com/TC03csJ6Mw |
12.15pm GMT | 12.15pm GMT |
12:15 | 12:15 |
Over in America, Donald Trump is preparing to visit the White House to meet president Obama, following a night of protests against his election victory. | Over in America, Donald Trump is preparing to visit the White House to meet president Obama, following a night of protests against his election victory. |
Our main liveblog is covering all the details: | Our main liveblog is covering all the details: |
12.11pm GMT | 12.11pm GMT |
12:11 | 12:11 |
OECD: Trump must spell out his plans | OECD: Trump must spell out his plans |
Catherine Mann, the chief economist at the Organisation for Economic Co-operation and Development, says Donald Trump needs to flesh out his economics plans, fast. | Catherine Mann, the chief economist at the Organisation for Economic Co-operation and Development, says Donald Trump needs to flesh out his economics plans, fast. |
Speaking on Bloomberg TV, Mann says Trump needs to set out policies to identify sources of growth in the US economy, and make sure the benefits are shared fairly between the American people. | Speaking on Bloomberg TV, Mann says Trump needs to set out policies to identify sources of growth in the US economy, and make sure the benefits are shared fairly between the American people. |
That’s what got him to the White House , the fact that the gains aren’t widely shared. | That’s what got him to the White House , the fact that the gains aren’t widely shared. |
11.46am GMT | 11.46am GMT |
11:46 | 11:46 |
The deputy leader of Germany’s governing CDU party, Michael Fuchs, hopes that president Trump will be more responsible than nominee Trump: | The deputy leader of Germany’s governing CDU party, Michael Fuchs, hopes that president Trump will be more responsible than nominee Trump: |
just wait and see #trump- he already made a change of behavior now that the elections are over @flacqua @BloombergTV @bsurveillance pic.twitter.com/jeaTG1jbgE | just wait and see #trump- he already made a change of behavior now that the elections are over @flacqua @BloombergTV @bsurveillance pic.twitter.com/jeaTG1jbgE |
free trade is crucial for Germany and the world - I think #Trump will be pragmatic @flacqua @BloombergTV @bsurveillance | free trade is crucial for Germany and the world - I think #Trump will be pragmatic @flacqua @BloombergTV @bsurveillance |
11.21am GMT | 11.21am GMT |
11:21 | 11:21 |
Copper surges | Copper surges |
The copper prices has hit its highest level since July 2015, up 5% today, thanks to Trump’s promise to rebuild America’s infrastructure. | The copper prices has hit its highest level since July 2015, up 5% today, thanks to Trump’s promise to rebuild America’s infrastructure. |
And shares in two mining companies, Antofagasta and Vedanta, have both soared by 14% as investors anticipate a new fiscal boost next year. | And shares in two mining companies, Antofagasta and Vedanta, have both soared by 14% as investors anticipate a new fiscal boost next year. |
Ole Hansen, head of commodity strategy at Saxo Bank, says copper is the ‘big winner’ from Trump’s victory (which won’t be much comfort to those on the losing side). | Ole Hansen, head of commodity strategy at Saxo Bank, says copper is the ‘big winner’ from Trump’s victory (which won’t be much comfort to those on the losing side). |
He adds: | He adds: |
President elect Donald Trump’s pledge to spend more than $500 billion on rebuilding America’sroads, bridges and airports helped send construction and steel stocks sharply higher following his surprise election win. | President elect Donald Trump’s pledge to spend more than $500 billion on rebuilding America’sroads, bridges and airports helped send construction and steel stocks sharply higher following his surprise election win. |
Tom Albanese, chief executive officer of Vedanta Resources, also anticipates a boost. | Tom Albanese, chief executive officer of Vedanta Resources, also anticipates a boost. |
He says (via Blooomberg): | He says (via Blooomberg): |
All that we see for President-elect Trump is that he will focus on building, he will focus on the infrastructure. | All that we see for President-elect Trump is that he will focus on building, he will focus on the infrastructure. |
“That is what the market is reacting to.” | “That is what the market is reacting to.” |
Whopping gains for the copper miners today https://t.co/0ZBDERxcTG pic.twitter.com/SipIO5PAFq | Whopping gains for the copper miners today https://t.co/0ZBDERxcTG pic.twitter.com/SipIO5PAFq |
Updated | Updated |
at 11.31am GMT | at 11.31am GMT |
10.45am GMT | 10.45am GMT |
10:45 | 10:45 |
Trump’s victory is also driving up the shares of military and defence companies. | Trump’s victory is also driving up the shares of military and defence companies. |
BAE Systems have jumped by 6% this morning, adding to yesterday’s spike following the election result. | BAE Systems have jumped by 6% this morning, adding to yesterday’s spike following the election result. |
It’s a sign that the City expect Trump to deliver on his promise to boost spending on the US military (which he claimed had become depleted on president Obama’s watch). BAE is one of the biggest suppliers to the US department of defence, and makes armoured vehicles, ships, fighter jets and missiles. | It’s a sign that the City expect Trump to deliver on his promise to boost spending on the US military (which he claimed had become depleted on president Obama’s watch). BAE is one of the biggest suppliers to the US department of defence, and makes armoured vehicles, ships, fighter jets and missiles. |
And if Trump weakens the ties between Nato members, then European countries may feel compelled to boost their own armies. | And if Trump weakens the ties between Nato members, then European countries may feel compelled to boost their own armies. |
10.26am GMT | 10.26am GMT |
10:26 | 10:26 |
Here’s confirmation that inflation expectations are rising, via analyst Arne Petimezas of AFS Group: | Here’s confirmation that inflation expectations are rising, via analyst Arne Petimezas of AFS Group: |
Reflation trade is on pic.twitter.com/gmbUfq65VI | Reflation trade is on pic.twitter.com/gmbUfq65VI |