- Title: European markets positive over Donald Trump's "pro-business" approach
- Date: 10th November 2016
- Summary: PARIS, FRANCE (NOVEMBER 10, 2016) (REUTERS) INTERIOR OF TRADING ROOM AT MONTSEGUR FINANCE COMPUTER SCREEN VARIOUS OF FINANCIAL ANALYSTS IN FRONT OF COMPUTERS (SOUNDBITE) (French) MANAGING DIRECTOR OF MONTSEGUR FINANCE, FRANCOIS CHAULET, SAYING: "It was a reassuring speech which brought calm to the markets. At that moment, markets actually remembered that Donald Trump is a pro-business person, that he is on the side of businesses, that in his program, there were fiscal cuts which could, if funded, have a positive impact on companies. And that's why marketplaces bounced back all around the world and are still bouncing back strongly today." VARIOUS OF COMPUTER SCREENS (SOUNDBITE) (French) MANAGING DIRECTOR OF MONTSEGUR FINANCE, FRANCOIS CHAULET, SAYING: "The main idea is that Mr. Trump's program leans towards, what we call, 'reflation', the return of an expansionist and inflationary policy, which is rather reassuring both for financial markets, which suffer from extremely low rates, and for public works, infrastructures, constructions. And we see all these heavy sectors significantly bouncing back in the light of an extremely bold program aimed at bringing American infrastructures up to standard." COMPUTER SCREEN (SOUNDBITE) (French) MANAGING DIRECTOR OF MONTSEGUR FINANCE, FRANCOIS CHAULET, SAYING: "The dollar was on a strengthening trend, simply because the American rates are expected to rise in the next few years. Therefore, investing savings in the dollar is way more lucrative than investing for example in the euro, when rates in Europe are negative or close to zero when investing in state debt." FINANCIAL ANALYST IN FRONT OF COMPUTER
- Embargoed: 25th November 2016 10:54
- Keywords: markets Donald Trump election U.S. finance business stocks dollar
- Location: PARIS, FRANCE
- City: PARIS, FRANCE
- Country: France
- Topics: Economic Events
- Reuters ID: LVA00157V31AF
- Aspect Ratio: 16:9
- Story Text: Markets have reacted positively to the election of Donald Trump's U.S. presidential victory as he has a "pro-business" approach, a Paris-based fund manager said on Thursday (November 10).
European stocks rose on Thursday following extraordinary gains in Asia and the United States, as exuberance shot through markets and reversed initial dives in reaction to Trump's win.
Managing Director of Montesgur Finance Francois Chaulet said Trump's victory speech had brought calm to the markets.
"At that moment, markets actually remembered that Donald Trump is a pro-business person, that he is on the side of businesses, that in his program, there were fiscal cuts which could, if funded, have a positive impact on companies. And that's why marketplaces bounced back all around the world and are still bouncing back strongly today," Chaulet told Reuters Television from his Paris-based office.
Investors focused on Trump's priorities - including tax cuts and higher infrastructure and defence spending, along with bank deregulation - and set aside for the moment longer-term worries about whether he will slap punitive tariffs on Chinese and Mexican exports, risking a global trade war.
European stocks hit a two-week high, with the pan-European 600 index up 1.3 percent in early dealings, and "safe haven" government bonds sold off after Trump suggested he would spend billions on infrastructure.
"The main idea is that Mr. Trump's program leans towards, what we call, 'reflation', the return of an expansionist and inflationary policy, which is rather reassuring both for financial markets, which suffer from extremely low rates, and for public works, infrastructures, constructions. And we see all these heavy sectors significantly bouncing back in the light of an extremely bold program aimed at bringing American infrastructures up to standard," Chaulet said.
Investors saw signs that Trump will ditch the budget austerity policies that Western governments have pursued since the 2008 global financial crisis after he takes over in January.
The three major U.S. stock indexes rose on Tuesday (November 8) and the dollar index against major currencies recovered from a trough of 95.885 plumbed on Wednesday (November 9) to around 98.778 on Wednesday morning. - Copyright Holder: REUTERS
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