How Will Donald Trump's Victory Affect The United Kingdom? View Full Report
Mr. Donald Trump is the new 45th president of United States after a fierce battle with Hillary Clinton, and its consequences are indeed enormous. Thousands of people came on streets to oppose Donald Trump’s victory.
Donald Trump is done and dusted. But what does this win mean for one of the powerful nation in the world, United Kingdom?
Donald Trump victory has been giving goosebumps to the whole world after Trump’s stunning win. Since he is an outsider with no political background, it is what makes him an unpredictable president around financial world and its effect on the United Kingdom.
The markets around Asia, European and UK initially fell down on news of America's surprising election result. Many of those markets have recovered. But if markets around the UK settle as lastly as they have on Wednesday, then the Bank of England could decide to hold their current rates at their current level.
The Pound effect:
But what of the pound? On Wednesday morning, sterling saw well off against the dollar, initially rising 0.3% and then going back above $1.24. But then it again fell back to where it was at the start of the day.
But what does it has in the longer term? The euro also raised in early trading, up to 0.4% higher against than that of the United States dollar. But the pound is still down by a huge margin where it was, thanks to the Brexit vote.
In his victory as 45th US president, Donald Trump's speech had an unfamiliar, placatory tone. He set out his visions straight for the United States at home as well as pledged to "get along with all other nations, willing to get along with us."
"We expect to have great, great relationships,"
He also stated that his country would "deal fairly with everyone."
"All people and all other nations. We will seek common ground, not hostility, partnership, not conflict."
UK Prime Minister Theresa May also stated that she was "looking forward to working" with Trump, in a compiled "trade, security and defense" partnership. The American Ambassador to the UK, Matthew Barzun did assure the special relationship between UK and US, as his boss Barack Obama had kept, stating it "unbreakable and unshakeable."
I would like to congratulate Donald Trump on being elected the next President of the United States. Full statement: https://t.co/7W2feuodUE— Theresa May (@theresa_may) November 9, 2016
It would be interesting where the relationship unfolds!
Trade and Growth:
United Kingdom’s relationship with the whole world is that because of trade. The pre-EU referendum, President Obama did send a warning to the UK that it would go to the "back of the queue" for a US trade deal if it voted out of EU.
But Trump was more positive about it as Trump stated that it would make "no difference" if the UK were in the EU or not.
But the main problem is that US growing relationship with China. Both China and the US have driven global growth towards world economy during the past quarter of a century while the UK is fading.