Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Investing

Threats and opportunities for Europe from a Trump White House

Investing.com – The inauguration of President Donald Trump takes place later Monday, and marks a critical moment for Europe, creating both threats and opportunities, according to BCA Research.

“The first months of the second Trump presidency will be filled with uncertainty and will accentuate major headwinds to European growth and assets,” said analysts at BCA Research, in a note dated Jan, 20.

“However, this drag will soon subside as Trump’s fiscal proposals are curtailed and Europe and the US reach trade deals. Remain defensively positioned in European markets for now, but remember that a long-term buying opportunity is near.”

Europe is heavily exposed to President Trump’s trade war. However, uncertainty is the main vector of pain. It will eventually recede as Europe and the US have enough common ground to reach a mutually beneficial deal.

The coming administration’s stance on Ukraine will help Europe. However, its tough position toward Iran creates near-term risks to European growth and inflation.

President Trump’s fiscal proposals are a mixed bag for Europe. On the one hand, stronger US growth helps European exports. On the other, the strength of the US economy is causing financial market moves that drain liquidity away from Europe. Ultimately, financial markets will not allow President Trump to deliver his tax cuts fully.

The new administration’s deregulation program will put pressure on Europe to increase the pace of integration, which will generate a growth dividend for Europe over time.

President Trump’s immigration policy will remove a significant tailwind to US growth, which will help Europe attract more capital over time.

In the near term, the uncertainty stemming from tariff threats and the tug-of-war between tax cuts and bond market volatility will continue to dominate the performance of European assets, creating meaningful headwinds in the first part of 2025.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com