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Analysts forecast growth from Trump presidency

Analysts forecast growth from Trump presidency

Developed world companies are expected to profit from the impact of Donald Trump's presidency, according to research of 146 financial analysts at Fidelity International.

Among analysts who focus on the US, 72 percent saw corporate tax reform, income tax cuts, infrastructure spending, Mr Trump’s pro-fossil fuel stance, deregulation and steeper yield curves as all favouring companies.

Fidelity's European company analysts also saw benefits for their sector, with 39 percent seeing a positive impact and only 12 percent seeing a negative impact. While the majority of analysts covering Asia (67 percent) say their companies do not expect any impact at all. 

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But in emerging Europe, the Middle East, Africa and Latin America the impact is seen as moderately negative (64 percent).

Michael Sayers, director of research at Fidelity International, said the findings were a counterweight to sentiment that Mr Trump's protectionism and radicalism would be bad for investors.

"None of these political risks are seen as strong enough to offset upbeat cyclical forces that are evident in all regions and sectors," he said. "As a result, our analysts think core corporate indicators are improving in all sectors and all regions, and are more positive about the outlook for their companies.”

This view was backed by Peter Griffin, an investment director at Gale and Phillipson.

"We have a view that Mr Trump is going to be good in the short-term for US companies," he said.

"Traditionally you would expect if it is good for the US it will be good for the global economy overall, but it is hard to judge.

"We have gone underweight in the Far East and Asia on the back of more specific concerns for Australia and as the Far East is more export driven and Trump's protectionism looks to be a reversal of this more globalised economy."