Nick Fletcher | Nov 11, 2016
Coal, pharmaceutical companies and mining groups can all expect to benefit, while renewables are out in the cold.
Winners
Pharmaceuticals, Infrastructure companies, Mining groups and steel companies
The chance of a clampdown on drug pricing, as promised by Hillary Clinton, has now disappeared, benefiting global pharmaceutical companies such as Pfizer and GlaxoSmithKline. Trump promised to spend around $500bn to improve America’s transportation, water, telecommunications and electricity systems, which would benefit construction firms such as Caterpillar. The infrastructure spending plans should help mining companies and steel specialists, which would also benefit from any moves that boost US economic growth. Precious metal miners are in demand as investors buy gold and silver as havens for their cash amid the uncertainty….
Losers
Renewable energy, The Mexican peso, US healthcare providers, hospitals and insurers
Remember “climate change as a Chinese fiction”? Trump has already said he would cancel the Paris agreement to cut emissions, leaving renewables companies out in the cold. The prospect of a physical wall between the US and Mexico has already hit the country’s currency and other losers will be businesses with substantial earnings in the country, such as Tate & Lyle and the Spanish bank BBVA. Any renegotiation of trade deals is also likely to hit Mexico. Trump has promised to repeal the Affordable Care Act – Obamacare – which would cause massive uncertainty in the sector and a probable fall in the number of people insured…
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