Trump unleashes animal spirits to turbocharge US: But UK firms face 'slow death' under Labour
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Donald Trump has unleashed the ‘animal spirits’ in America while companies in Britain face a ‘slow death’ after Labour’s tax hikes, business leaders warned. As US stock markets hover close to record highs, City tycoon Sir Martin Sorrell said the President-elect has turbocharged business morale on the other side of the Atlantic.
And Goldman Sachs chief executive David Solomon welcomed the prospect of ‘a more growthy kind of playbook’ from the new administration. By contrast, corporate sentiment has tumbled in Britain after Rachel Reeves used her first Budget as Chancellor to announce £40billion of tax hikes.
Insolvency expert Ric Traynor, boss of restructuring group Begbies Traynor, yesterday warned of a wave of UK company failures in the coming months as firms are hammered by the tax raid. The comments underlined the stark difference in mood in the US and the UK following Trump’s election victory and the Labour Budget.
Trump effect: Donald Trump's election win has sparked a wave of dealmaking including this week's proposed merger of advertising giants Omnicom and Interpublic. Political and economic turmoil in Europe – with Germany and France in crisis and the euro tumbling – have further exposed the transatlantic divide.
Julian Jessop, an economics fellow at think-tank the Institute of Economic Affairs, said: ‘Trump and his new team have some real business experience and can sell an appealing narrative on the economy. ‘The contrast with Keir Starmer and the new government in the UK could hardly be starker.
