Major corporations are already looking to the new president for a brighter future in business.
CEOs from over 1,100 US companies such as Boeing, Caterpillar, and Coca-Cola have come together to pen an open letter to the President-elect Donald J. Trump. The letter warns of what they call “the urgent need to renew faith in vital government and economic institutions” after the election.
As decision makers all over the globe worry about threats to trade following Trump’s victory, others perceive the election as an opportunity for new tax cuts and deregulation to become a reality.
In the letter, which was written to address whichever candidate emerged as the victor, they state that they have resolved to work toward the unification of the people, “after this especially arduous election cycle,” and warn that communities and businesses cannot flourish “in a distrustful and divided America,” according to the Financial Times.
Some of the CEOs who signed and approved of the content of the letter, gathered under the National Association of Manufacturers, count in their numbers the CEOs of Honeywell, Pfizer, Lockheed Martin, Cargill, and Eli Lilly.
During the drafting of the letter, Jamie Dimon, the Chief Executive of JP Morgan Chase called on staff, government officials, and business leaders and to collaborate on solutions to the problems of the politically and ideologically divided population of the United States’ problems as part of his response to the unexpected election results.
He wrote a memo to employees citing an “intense hope for change” and disappointment with the economy, resulting in the Republican candidate, Donald Trump, emerging as the winner.
“We must to listen to these voices,” Dimon wrote, rallying leaders across all non-profit sectors to unite.
JP Morgan will continue work on its economic and public policy problems globally, he said.
Businesses and industry groups in the U.S. have been broadly unsupportive of Donald Trump. None of the chief executives of the nation’s 100 largest companies gave monetary support to Trump’s campaign as of August 2016, the Wall Street Journal reported.
Companies such as Ford and United Technologies were heavily criticized by Trump as the campaign raged on for having moved their production processes out of the country and into Mexico and other parts of the world where lower labor costs allow them to work under lower overhead investments, and all business with international supply chains has become nervous about possible disruption to the boons they’ve gained under NAFTA- an agreement that has stripped millions of Americans of their jobs.
The cuts to federal business taxes proposed by Trump to 15%, from the current 35%, is expected to bolster businesses of all kinds, experts predict.
U.S. banks will probably view Trump’s victory as a good thing. He’s sent mixed signals about regulation, but he also said that he wants to push a policy that will come close to eliminating Dodd-Frank, the Wall Street reform act from 2010.
Dodd-Frank set up many tough rules for the banks, and it created the dreaded Consumer Financial Protection Bureau, which has taken banks to task when it comes to regulatory standards.
Many of the policy statements Trump has made thus far have been undefined and subject to interpretation. What’s got thought leaders nervous is the fact that he has seemed to soften his harshest stances (why is he being so nice to Paul Ryan) in the days since being election.
For many Wall Street professionals, a Clinton victory would have provided quicker clarity on the new business-related policies of a new administration. Despite the fact that during the campaign, she spoke out against big business- as “ripe for scrutiny.”
Meanwhile, Donald Trump has been much more outspoken about the pitfalls and vices of the many global trade deals that have been going on and has promised to unravel them completely. That has sent a shock of fear down the spines of the global executives and officials who rely on these deals.
“Trump says he’s going to abolish Dodd-Frank as well as Obamacare; I don’t think he’ll succeed at either,” said John Stadtler, head of financial services at PwC in New York. “Neither do I believe he will be able to take apart the CFPB, but he will definitely deliver some significant changes.”
This is a sentiment felt all over the world.
“We hope Trump, as president, will have more finesse than he did as a candidate,” said VP of the U.S.\China Business Council, Jake Parker.
This spasm of concern is, it’s fair to say, part of an effort to clean house, and to soften the blow of an administration that- by every indication- appears to be allied with the people- and not with global money interests.
~American Liberty Report
