|IVCA Feature: Financial Press Speculate on the Era of President Donald Trump|
IVCA Feature: Financial Press Speculate on the Era of President Donald Trump
January 18, 2017
With the inauguration of a new presidential administration this week, investor and business entities have their sights set on the possibilities of the commerce environment under President Donald Trump. The incoming president is a lifetime businessman, with few ties to the legislative bureaucracy in Washington, beyond his contributions to various candidates. The IVCA searched the internet for financial articles that speculate regarding the new era of President Donald Trump.
MercuryNews.com, ‘Trump’s Impact and Other Tech Predictions’
The soon-to-be Republican-controlled FCC is sure to reconsider the limitations on internet service providers in offering content to their subscribers. Look for a free-for-all when it comes to providers offering free or discounted premium content, which will be a short-term benefit for consumers with possible long-term downsides if it means that providers also will be able to discriminate against other services – even if only through price wars that put non-partners at a competitive disadvantage.
Fortune.com, ‘Trump White House May Defy Predictability, But with Congress under GOP control, Expect These Early Moves’
Congress will change the corporate tax code to encourage (or compel) companies to repatriate trillions in overseas cash at a low tax rate. The revenue generated by that deal will give Congress cover to pass some of the deficit-swelling income tax cuts that Trump and the GOP have backed.
Money.CNN.com, ‘Trump Stock Market Rally: Likely to Keep Going in 2017’
"Corporate tax cuts could easily add 5% to 7% to profits annually going forward," writes Jonathan Golub, chief equity strategist at RBC Capital Markets. He projects U.S. stocks will soar 10% from where they are now. Business and consumers seem more optimistic. If that translates into more spending at stores and on new equipment, Golub argues that it will be an even bigger boost to the economy and profits.
NewYorkTimes.com, ‘2016’s Winning Investors Talk About 2017, and Donald Trump’
Now [SkyBridge Capital Founder Anthony] Scaramucci is in the Trump inner sanctum as a member of the transition team, in a position not only to predict the future, but also to help shape it. Not surprisingly, he’s bullish on the economy and stock market for 2017. He expects the kind of high-dividend, value-oriented stocks his fund invests in (some of its biggest holdings last year were Best Buy, Caterpillar and Boeing) to do well unless “we get to hyper-growth, in which case there will be a rotation to growth stocks.”
CBC.ca (Canadian Broadcast Corporation), ‘Wildcard Trump Could Affect Markets, Economic Outlook in 2017’
The incoming U.S. president is a "wildcard," said Marshall Auerbach, research associate at the Levy Economics Institute at Bard College in Annandale-on-Hudson, N.Y. "You don't really know what he's going to do. You don't really know the extent to which we should take his protectionist threats seriously, and obviously that's going to have a significant impact on Canada if he does," Auerbach said.
Forbes.com, ‘OECD: Donald Trump’s Win So Yuge It’ll Grow the Global Economy’
I have to admit that I would file this in the "speculative and unproven" box rather than the "this is what will happen" one but the OECD (Organization for Economic Co-operation and Development) is predicting that the election of Donald Trump will lead to faster growth in both the the US and the global economy. This is, of course, rather in contrast to the predictions emanating from many economists inside the United States.
TheAtlantic.com, ‘Donald Trump’s Conflicts of Interest: A Crib Sheet’
At his press conference on January 11th – his first since June 2016 – Trump and his lawyer Sheri Dillon laid out the plans that they claimed would resolve the questions about conflicts of interest that have dogged the president-elect since he was elected. Instead, what they announced were piecemeal steps that, though designed and packaged to mitigate the appearance of conflicts of interest, do almost nothing to substantively address concerns that his business entanglements will undermine his ability to faithfully execute the office of the presidency.