Mar
Banks and Markets on alert: Banks expected a predictable version of Trump to sustain their valuations but got the opposite. His confrontational style has fueled uncertainty, stalling investments and deals while increasing fears of a recession. In New York, financial executives are beginning to assume that his administration will reshape the economic landscape. Markets remain on edge, adjusting to potential policy shifts and economic disruptions.
A Second Term with Profound Changes
During his first term, it was advised not to take Trump literally, but that strategy is no longer viable. His new agenda will bring painful transformations, raising questions about the magnitude and duration of its market impact.
Trump Administration Ousts Two Democratic FTC Members
In a move that underscores the Trump administration’s ongoing push to assert its power over federal agencies, ousts two Democratic…
Investment Banking: Between Volatility and Uncertainty
Market instability has benefited banks’ trading operations. Goldman Sachs, JPMorgan, and Morgan Stanley have capitalized on this trend. However, if investors withdraw their capital, activity could stagnate, further impacting financial stability.
Mergers and Acquisitions in Retreat
The sector anticipated a boom in mergers and stock offerings after the elections, but uncertainty has delayed deals. In 2024, investment banking fees grew by 36%, yet new policies and international conflicts have sparked caution among businesses.
Elon Musk and His Impact on Consumption
Musk’s strategy of reducing government spending threatens consumption and key sectors such as tourism and automotive. If federal employees lose their jobs, spending could plummet, affecting companies like Capital One, Synchrony Financial, and American Express.
European Banks Weather the Storm Better
While U.S. banking stocks decline, European banks are experiencing an upswing. Deutsche Bank has risen 40% since November, driven by investments and economic strengthening measures in the region.
An Uncertain Outlook for the Global Economy
If Russia and Ukraine reach peace and the U.S. defines a clear trade strategy, markets could stabilize. However, relying on a swift resolution to these issues seems like an act of extreme optimism.
