Who are the winners and losers of a Trump triumph?

 
Lynsey Barber
Follow Lynsey
Republican Presidential Nominee Donald Trump Holds Election Night Event In New York City
Thumbs up for some... not for others (Source: Getty)

The election of Donald Trump by US voters to become the next President was almost entirely unexpected.

Here's our initial take on some of the early winners and losers emerging in the aftermath.

Winners

Nigel Farage

Trump fan Nigel Farage has found a kindered spirit in the new President. The Ukipper and Brexit supporter went with a surprisingly restrained congrats this morning though.

One lucky punter

Who'd have bet on a Trump win? This guy did, making himself half a million pounds in the process

Pharma firms

Pharmaceutical companies are breathing a sigh of relief at the result. Clinton had promised to scrutinise drug prices after controversies over price hikes. With that off the cards, top firms such as AstraZeneca and GlaxoSmithKline, are among the big FTSE risers this morning.

That might not last long-term, however, as drug makers have aired concerns during the campaign that a renomination of trade deals could damage the sector.

Mexicans

Trump's policies are not necessarily favourable to those from across the border – who can forget the wall? – and we've yet to see how that will pan out. But, there's one way many Mexicans might be finding a small benefit in the immediate aftermath of the shock election result.

Those working in the US sending money to family in Mexico will find their hard earned cash will go further after the peso hit an all-time low, making the dollar worth more.

The UK

And everyone thought Brexit was the surprise political event of the year. Who knew what 2016 still had in store.

Trump's trumped that and his arrival at the steps of the White House is an unintentional dead cat being thrown on the table, taking some of the heat (ie. attention) away from Brexit. Theresa May must be breathing a little sigh of relief.

The marijuana business

At the same time as the presidential race was being settled, the US were also voting on other matters. That's resulted in the legalisation of cannabis for recreational use in California, Massachusetts and Nevada.

As one wry Twitter user points out, it might come in handy under President Trump.

Wall builders

The Israeli company which built a fences on the country's Gaza border, Magal Security Systems, expressed an interest in building Trumps Mexican wall. Now, his win has sent Nasdaq-listed shares in the firm flying up seven per cent to at least a year high.

Prison stocks

Companies operating private prisons in the US, Corrections Corp and GEO Group, stand to gain from a Trump presidency. Analysts believe that he will reverse plans to phase out privately run correctional facilities

Corrections Corp shares shot up as much as 60 per cent while GEO Group surged as much as 20 per cent higher.

Losers

Gun makers

A tightening of gun controls under Clinton is off the table and it's fair to say that Trump's favourable to the US people carrying weapons.

Smith and Wesson shares shot up (sorry) as much as seven per cent in pre-market trading and Sturm Ruger and Company more than five per cent. However, they opened sharply lower – more than 14 and 13 per cent respectively.

In a twist to logic, its greater gun controls which increase sales as people rush out to buy them in the face of potential restrictions being brought in.

Mexico

Putting aside Trump's comments on the wall, trade ties with the country are at stake and some analysts are forecasting a recession for the country with all the uncertainty.

"Mexico's peso will remain the most volatile given the high degree of uncertainty surrounding US trade policy with Mexico under a Trump presidency," said BMI Research in a note this morning.

"While the extent to which a Trump White House will revise the US trade relations hip with Mexico will remain unknown for at least several months, the extremely high stakes for Mexico will result in sharp capital outflows and a likely recession for the economy."

Janet Yellen

A hike in interest rates by the Federal Reserve is now pretty much off the table and the future of Janet Yellen as the central bank's chair is now uncertain. Trump has attacked the institution during his campaign and it's clear he's no fan of hers.

"For markets, what happens to Fed Chair Janet Yellen will be crucial. The impact of her future will be felt globally," said UBS wealth management's Geoffrey Yu.

Tate & Lyle

The UK firms has a large exposure to the Mexican peso. A Trump win sent shares tumbling four per cent as markets opened.

Carmakers

It's a similar story for brands such as BMW and Volkswagen, Fiat Chrysler and Daimler all dipped by around three per cent: a lot of manufacturing of their cars takes place in Mexico.

Bank stocks

Shares in UK and Europe-listed banks were down this morning. Find out more.

Pollsters

Once again the pollsters did not call it correctly. They'll be taking another long hard look at themselves.

As CMC Markets' Michael Hewson said: "This [pollsters being wrong] has once again proved to be the case, begging the question what is the point of opinion pollsters."

Shares in the UK-listed firm YouGov were down more than three per cent in morning trading on Wednesday.

Pantsuit sellers

Poor Hillary. Such was the support (though clearly not enough) that pant suit sales soared in the run up to the election according to Lyst, rising 460 per cent since the start of the year and US shoppers have bought 79 per cent more pantsuits than other countries. That Clinton bump is unlikely to continue.

Bookies

Poor old Paddy Power too. It had already paid out on a Clinton win. Now it's having to pay out another $4.5m on a Trump win. Ooops.

Related articles