#BHP Billiton#infrastructure#Donald Trump #Macquarie#QBE Insurance Group#James Hardie Industries #President Barack Obama#Deregulation

These Australian shares could win from Trump’s Presidency

Harry Allan
|Nov 15|magazine6 min read

Donald Trump shocked the world (and probably himself) when he won the US Presidential race and, since then, there has been an unheard of level of speculation about what the wider implications will be for business and society at large.

While exact policies are currently hard to come by, businesses can expect drastic cuts to both company and personal tax rates, as well as massively hiked infrastructure spending. Deregulation will likely be another cornerstone of the Trump Presidency, which has the potential to benefit Australian companies that have assets in the USA.

Finance-based companies such as Macquarie and QBE Insurance Group could very well benefit from reduction in regulation costs and higher interest rates respectively. Infrastructure spending could very well provide lucrative but given Trump’s protectionist tendencies, it could very well be the case that only American companies see a tangible benefit.

Companies like BHP Billiton and James Hardie Industries could very well benefit form a construction boom, as demand for materials and services could very well spike if Trump’s infrastructure construction plans go ahead as promised. Once again, it remains to be seen if foreign companies will have a stake in this.

Editor’s comment:

Donald Trump is new to the Presidency and has not held any political office before – outgoing President Barack Obama is likely to stay on longer than usual in order to assist him into the role. But with no clear outline for free trade or project developments (apart from his infamous Mexico wall) uncertainty reigns. Australian businesses will certainly have a clearer picture in the coming months and most will have to wait and see if any benefits can be reaped.

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SOURCE: [Motley fool]

Image credit: Bastiaan Slabbers / Getty