Greetham: Markets Willing to Look Through Trump Risk

The video discusses corporate reactions to a controversial policy, highlighting the swift opposition from Silicon Valley giants due to their reliance on immigration and personal connections to the issue. It examines market reactions to political events like Brexit and Trump's election, noting minimal long-term impact. The economic implications of policy changes, such as immigration restrictions and trade tariffs, are explored, emphasizing potential harm to company earnings. Finally, it considers the evolving relationship between big businesses and the Trump administration, with companies navigating campaign promises and policy implementations.

Why did Silicon Valley companies quickly oppose the political ban?

• They wanted to support the auto industry.

• They are heavily reliant on immigration for growth.

• They have a surplus of local talent.

• They were indifferent to the ban.

What was the market's initial reaction to Brexit and Trump's election?

• A prolonged downturn in stock prices.

• A short-lived panic followed by recovery.

• A steady increase in stock prices.

• No reaction at all.

How do markets generally respond to gradual political changes?

• They tend to focus on immediate, tangible impacts.

• They only react to changes in the UK.

• They ignore all political changes.

• They react immediately and strongly.

What is a potential risk for companies if immigration is curbed?

• Increased local hiring costs.

• A surplus of engineering talent.

• A boost in R&D efforts.

• No impact on earnings.

How are big companies trying to work with the Trump administration?

• By ignoring all policies.

• By focusing solely on domestic markets.

• By assuming campaign promises are just posturing.

• By opposing all trade policies.