Sunday, November 13, 2016

Trump presidency good for the war business

Trump's win in the US presidential election boosted stock trading in the world's biggest arms manufacturers. The world's major arms manufacturers had a very good day on the stock market after Donald Trump's victory as it led to a surge in the prices of shares in arms makers, especially large American ones.

Northrop Grumman, Lockheed Martin and Raytheon all gained between 5.4 percent and 7 percent in the day following the Republican's victory. The British firm BAE Systems, which sells everything from warplanes to naval vessels around the world, saw its share prices rise between three and four percent, as did the French Thales Group, which specializes in remote weapons systems, and Germany's biggest military equipment supplier Rheinmetall, which saw its value rise by 2.9 percent.

One defense industry manager told "Die Welt" newspaper: "Now we have two good sellers: Vladimir Putin in Moscow and Donald Trump in Washington."

However, Sebastian Schulte, defence analyst and Germany correspondent for military magazine "Jane's Defence Weekly," thinks that the advent of Trump is not the direct cause of this increase in military spending. "What we're observing now with the President-elect Donald Trump is that the world is becoming more complicated and unpredictable - and Donald Trump is not the reason, he's a symptom of that," he told DW. "I would expect German defense exports to rise, regardless of what a specific political party has to say about it, because the demand is increasing globally," he said.

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