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Which sectors will gain from Trump win?

Wednesday, November 09, 2016 - 01:47

Donald Trump's victory in the U.S. election is sending shockwaves across global markets but, as Sara Hemrajani reports, investors are now looking at which sectors could be winners.

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First the market sell-off, then the re-evaluation. Investors have already begun picking apart the winners and losers of a Trump victory. London-listed banks were among the biggest fallers as stocks tumbled. But some top global banks could in fact benefit, with analysts pointing to Trump's more liberal approach to financial regulation. (SOUNDBITE) (English) BGC PARTNER, MARKET STRATEGIST, MIKE INGRAM, SAYING: "In terms of Trump's platform, I think banks, certainly U.S. banks, are likely to be the winners. For instance, he's said that he'd like to see Dodd-Frank legislation rolled back. Not necessarily good news of course for European banks because it means that you've probably got a more lax regulatory environment in the U.S. than we have elsewhere in the world. So it allows big banks, the global banks, to effectively arbitrage that away." Another sector with potential for gains -- pharmaceuticals. Hillary Clinton was likely to put pressure on drug pricing. Trump, on the other hand, was less critical. The only worry now is whether he'll push through with his plan to repeal the Affordable Care Act. (SOUNDBITE) (English) PANMURE GORDON, MARKET COMMENTATOR, DAVID BUIK, SAYING: "I think you'll see for the Glaxos, the AstraZenecas, the Shires, the Sanofi-Aventis, the Roches, they'll bounce. But don't hold your breath because the next thing in 6 to 8 months time is of course that if the Senate and Congress decides that they're going to repeal Obamacare, there's going to be a funding issue." Other industries set for a Trump boost - oil, defence and construction. But for those companies relying on open trade, the new Commander-in-Chief's preference for tariffs and tough immigration could spell a rocky four years.

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Which sectors will gain from Trump win?

Wednesday, November 09, 2016 - 01:47