Trumponomics How Does Wall Street Feel About Trump Now?
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Feb 19, 2025 Sridhar Natarajan, Bloomberg's chief Wall Street correspondent, and Hannah Levitt, finance reporter focused on J.P. Morgan and Morgan Stanley, dissect Wall Street's evolving stance on Trump's economic policies. They highlight a lingering optimism tempered by caveats regarding market volatility and deregulation. The discussion also covers the potential impacts of tariffs and the intricate dynamics of political influence on finance executives. Ultimately, they explore how shifting strategies could reshape the financial landscape.
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Wall Street's Cautious Optimism
- Wall Street’s initial reaction to Trump's return was positive, indicated by rising bank stock prices.
- Deal-making discussions are happening, but haven't fully converted into actual deals yet due to policy uncertainty.
Tariffs and Volatility
- Bank executives are optimistic but cautious due to uncertainty surrounding Trump's policies, particularly tariffs.
- Increased market volatility presents opportunities for bank trading desks, translating into higher revenues.
Volatility as a Revenue Source
- Banks have structured their businesses to profit from market volatility, regardless of direction.
- Higher volatility under Trump is expected to benefit trading businesses, which are major revenue sources for Wall Street firms.