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Hedge fund manager Hintze says Trump unlikely to derail economy
[LONDON] Donald Trump's surprise victory in the US presidential election is unlikely to derail the economy and throws open the outcome of upcoming votes across Europe, according to CQS Investment Management founder Michael Hintze.
The Republican's victory means the proposed Trans-Pacific Partnership probably won't happen, said Mr Hintze, whose London-based hedge fund firm manages about US$12 billion. Mr Trump had been critical of the trade deal involving the US and countries on the Pacific Rim during his campaign, likening it to "a rape of our country" in a speech he gave in June.
"Trump was always an outsider. He had minimal support from the Republican party and therefore has minimal obligation to them," Mr Hintze said in an e-mailed statement. "More deregulation than at any other time since Reagan's presidency is certainly on the agenda." Mr Trump was elected on a platform of boosting infrastructure spending, cutting taxes and opposing trade deals. Mr Hintze says the election result should create some "attractive opportunities" for investment in credit markets as volatility increases. He tipped infrastructure and drug industries in the US as likely beneficiaries as the market recovers.
"Market attention will also now turn to Europe ahead of the Italian referendum, and the French and German elections - anything is now possible," Mr Hintze added.BLOOMBERG