The beginning of Trump 2.0 is not what Wall Street expected

The beginning of Trump 2.0 is not what Wall Street expected.

Traded was the slowest month in January for over a decade. The valuable tax cuts for hedge funds and private equity companies have been threatened. And the big banks grilled about whether they “blame” certain customers.

These complications were not part of Donald Trump’s plan when he was elected in November. This is the event that sparked a round of optimistic predictions about a M&A boom for large Wall Street companies in Washington, more looser rules and a more favorable approach.

Instead, since the same month in 2014, bankers have concluded with the lowest number of M&A transactions announced in January and the lowest number of M&A transactions announced in the US, according to LSEG data.

Trump’s new anti-trust cop also makes free pass to a massive merger in the second week of the administration by blocking potential coalitions between Hewlett Packard (HPE) and rival Juniper Network (JNPR). I let him know that I won’t give it.

And the new uncertainty surrounding the president’s tariff plans makes us unsure of the time when many companies are making big moves and what directions will be costly to borrow in weeks and months.

“The uncertainty seen from a geopolitical perspective of visibility is uncertainty about tariffs. It creates a slight uncertainty that may undermine anyone’s ability to implement.” UBS held in Miami He spoke to analysts on Monday while speaking at the Financial Services Conference.

Elmotti also quickly pointed out that “it’s not a quarter or a month” to determine the year.

Certainly January can usually slower new trading times than the rest of the calendar.

Historically high level of corporate ratings could also play a role in the slow pace of deal-making to launch 2025, THL Partners co-CEO Scott Sparring told Yahoo Finance live.

“It was an unusual combination, and in itself may have suppressed some of the possible financial gains from certain types of M&As and certain types of transactions,” Sperling told Yahoo Finance live.

So far, the recession has not cut down large bank stocks.

Since the beginning of January, JPMorgan Chase (JPM), Goldman Sachs (GS), Citigroup (C) and Wells Fargo (WFC) have risen between 12% and 15% as of Monday. Stanley (MS) is up 6% to 9%. Everything surpasses major stock indexes in that period.

The big unexpected development of Wall Street in the early weeks of Trump 2.0 is a high level of political heat.

The story continues

Donald Trump’s first president has publicly confronted Brian Moynihan, CEO of the Bank of America (BAC) at the World Economic Forum on his claims that he has gained traction in his conservative circles.

The president also appeared to include Jamie Dimon, CEO of JPMorgan Chase, in the conflict. JPMorgan and Bank of America are the two largest banks in the country. The companies have denied claims that they cut off service to customers over their personal beliefs.

“I don’t know if the regulators order it for Biden or what, but you, Jamie and everyone else, you open a bank to conservatives because what you’re doing is wrong. I hope that,” Trump told Moynihan in his question. Answer session.

The GOP was in the spotlight last week on issues that would be removed during hearings before Senate and House committees. Massachusetts Democrat Sen. Elizabeth Warren even signaled her support for the topic, saying she agreed to Trump.

However, banks remain optimistic and once regulators relax some of the requirements for banks to emit specific customers, fixing that issue could ultimately turn out to be positive for them It has sex.

They argue that US rules, such as the Bank’s Secret Act, block banks from dealing with customers deemed high risk, and require clearer regulations in that respect.

Industry lobbyists are pressing for it to happen. “An important part of the solution is to modify the regulatory structure,” a spokesman for BPI, a banking industry advocacy group, said in a statement from Yahoo Finance.

Lobbyists for the private equity and hedge fund industry may be unexpectedly busy this year after Trump revealed he wants to close the tax credit known as the fateful interest deduction.

This allows investment managers to pay a lower capital gains tax rate on income they receive from their compensation work. That’s not a small problem, and while many capital gains charge a 23.8% tax, the tax rate on normal wage income could be doubled.

“The president is committed to working with Congress to accomplish this,” White House press chief Karoline Leavitt said last week.

David Hollerith is a senior reporter on Yahoo Finance, covering banking, crypto and other areas of finance.

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