NEW YORK—At first glance, Donald Trump is everything Wall Street likes a billionaire whose real estate empire has provided huge business for banks, and whose luxury towers house the rich and famous.
But his surprise success in the fight to win the Republican nomination for the US presidency has sent a chill over the heart of American capitalism.
The list of fears runs long: As president Trump could launch a trade war with China; he could increase the taxes on the rich; he could interfere with the Federal Reserve over monetary policy; the White House’s relations with Congress could break down completely.
“He scares the markets. He is a big uncertainty,” said Greg Valliere, chief strategist for Horizon Investments. “The market does not like uncertainty.”
Businesses are disconcerted by the off-the-cuff comments Trump renders about crucial business and economic issues almost daily since hitting the campaign trail last year.
On one side, he has denounced the huge salaries for chief executives, the greed of bankers and the tax advantages that benefit wealthy Wall Street fund managers.
He has menaced the huge population of undocumented immigrants that effectively keeps up the supply of low-wage workers for US businesses.
He attacks China and Japan for manipulating their currencies for trade advantage and threatens to start a trade war with China. At the same time, he has declared his opposition to two huge free-trade accords spanning the Pacific and Atlantic oceans.
He has even leveled attacks at the titans of US businesses such as Ford and Apple because they manufacture outside the country as well as inside.
But on the other hand, Trump courts US industry leaders with promises of business tax cuts. He also praises the skills of fellow billionaire Carl Icahn, one of Wall Street’s most successful activist investors, who stands out as one of Trump’s few vocal backers on Wall Street.
“He doesn’t fit into any particular economic mold, he’s not a traditional conservative like Ronald Reagan,” said Mark Perry of the American Enterprise Institute, a conservative think tank.
“His platform is really kind of a mixed bag of populist and isolationist types of policies that, he knows, will appeal to a lot of uninformed people.”
