Wall Street is highly anticipating the Trump presidency due to the possibility of an increase in deal-making. During his campaign, Donald Trump promised deregulation of financial services and a more business-friendly environment, which could set conditions ripe for mergers, acquisitions, and other types of business deals.
Following the announcement of Trump’s win, a sense of optimism swept across Wall Street as traders and investors anticipated a surge in corporate deal-making. Trump’s policies, particularly those related to tax, trade and healthcare, are perceived to potentially spur a wave of deals in those sectors.
Trump’s perspective on repatriation, or the encouraging of multinational corporations to bring overseas earnings back to the United States, could lead to the availability of large amounts of cash for U.S companies. This, combined with Trump’s proposed plans to lower corporate taxes, may motivate companies to execute deals that were previously unfeasible.
Moreover, there is an expectation that Trump’s administration will take a softer stance on antitrust regulations, contrary to the previous administration. This might usher in an era of megadeals and consolidation which was previously opposed by regulators in various industries.
However, much will depend on how these proposed changes are implemented and how international markets respond to these changes. There is uncertainty regarding Trump’s ability to enact these policies without significant resistance, and how foreign policy under his administration might influence global deal-making. Yet, the prospect of a more business-friendly environment has Wall Street hopeful for a thriving deal-making landscape under a Trump presidency.
