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Business

Is Trump win Brexit 2.0?

Opening sequence

Opening sequence

Business

Is Trump win Brexit 2.0?

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COMING UP:Is Trump win Brexit 2.0?

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Transcript

00:00:00
>> The man himself called it Brexit plus plus plus. Even if the initial reactions suggested otherwise, longer term it may still be the case, says Reuters' chief markets correspondent Jamie McGeever.>> And that's what we're waiting to see who Trump nominates in his cabinet. The high positions of office such as secretary of state and treasury secretary, in particular how the Trump administration, how its relationship with the Fed will play out, last of crucial importance to the financial markets.
00:00:28
>> As are his policies, a rise in US treasury yields suggests traders are betting Trump will follow through with big spending on infrastructure, and that inflation will rise as a result. If that's the case, others could benefit too.>> If you think that he's gonna expand the US deficit massively and spend trillions of dollars on infrastructure projects, etc, US growth will get a bounce.
00:00:51
Therefore, if US growth rebounds, world growth should do not too badly particularly in emerging markets. But that's if markets get the Trump they want. Like sterling, the dollar could be vulnerable if they don't.>> If that rise in US yields is too sharp, too sudden, too soon, markets may take fright and start to worry about the implications of sharply higher U.S. borrowing costs, and uncertainty of the Fed and therefore, the dollar could suffer in that environment.
00:01:19
>> The time table may be more compressed than Brexit, two months rather than two years but markets are still faced with the same prospect, uncertainty.