So, just how has the US elections affected the UK
So, just how has the US elections affected the UK?
Trumping over the UK economy
by Tracey Jackson)
The world has been very involved in the recent American election battle between Hilary Clinton and Donald Trump, and two other candidates that no one knew about. Both parties had their strengths and their weaknesses.
The world has watched with bated breath for the outcome and with all the copious amounts of mudslinging and character assignations, almost like a car crash unfolding in front of us, who will be selected, how will this affect us in the UK? The World?
The Independent saw Clinton winning as a negative result for Russia but that China had a really good existing trade relationship that needed maintaining.
In the run up to the election, Business and financial institutions across the World were poised for a hard ride come election day, with either result could push the economy either way. It was by no means a done deal as opinion was divided, right up to the last vote being cast. In the end Trump won with 276 votes and was a clear winner.
In his victory speech, Trump promised to double the US growth and strengthen the economy. As a businessman, he says that in his experience, he has seen lots of untapped potential all over the world. As a President, he has vowed to bring together the US parties and have a united people.
He has a plan for see national growth and for the US to have the strongest economy in the world. He wants to build on relationships with the world.
Following the election, US markets dropped down 900 points, which in comparison to Brexit of 610 points, was considerably lower. Globally, our pound dropped massively following the vote, but by opening play of our markets had recovered its position. Immediately following the result, the Mexican peso dropped nearly 13%, the Austrialia ASX 200 went down 2.1%, Japan, Nikkei 225 down 6%, China Shanghai Composit – 1.0% and Hong Kong Hang Seng -3%. The UK markets dropped by 2% when they opened but then recovered up by 60 points at the end of the day. Banks in particular saw big profits by then end of the day.
Looking forward, predictions are for minimal growth and possible volatile markets for the first quarter of 2017. On the subject of whether the new President is a good thing for UK business and Finance, well with promises of closer business ties with the US, it remains to be seen.