Trump: The great builder - AmpGFX

Greg Gibbs, Director at Amplifying Global FX Capital, suggests that the Republicans control all the parts that determine legislation – the Administration, the Senate, and House of Representatives which provides Trump with significant scope to push through his championed policies quickly and more fully. 

Key Quotes

“In Trump’s victory speech his first policy message was to boost infrastructure spending.  He said, “I’ve spent my entire life and business looking at the untapped potential in projects and in people all over the world. That is now what I want to do for our country.”…. “We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it.”

"This seems to raise to the top of his to-do list, infrastructure spending.  And as a property developer, he appears to see this as his strength and perhaps, hopefully, his most important objective. This message has resonated with the market, evidenced by a surge in construction-related stocks.  The S&P500 construction an engineering Index was up 9% on Wednesday."

"Construction materials (+10%) and steel sector (+11%) equities are up even more.  The surge in these US company shares may reflect the strong message in Trump’s campaign to “Put America First” embodied in his anti-free trade message.  The market is thus expecting less of the US infrastructure spending to spill over to imports of foreign-produced construction goods and services."

"Clinton was also planning to boost infrastructure spending, but she would have had to go through an obstructionist Congress.”