US President Donald Trump's administration has only just taken over, but already a small parade of S&P 500 companies' chiefs have voiced optimism that his promised tax cuts, stimulus spending and deregulation will boost corporate profits.
In the days ahead of Friday's inauguration, senior executives from Morgan Stanley, Delta Air Lines and other major US corporations said the Trump White House had already sparked a brighter outlook for business.

"There is certainly more reason to be optimistic as we enter 2017 than there was at the beginning of 2016," Morgan Stanley CEO James Gorman said on Tuesday after his bank reported fourth quarter profit had doubled. He pointed to factors including a surge in consumer confidence after the November 8 election and lower taxes promised by Trump.

Just under way, fourth-quarter earnings reporting season is providing a glimpse of what major large companies expect under Trump, and their take is largely positive so far.

More than a dozen S&P 500 companies reporting results in the past week have signalled optimism about potential tax cuts, infrastructure spending, employee benefit costs and reduced regulation.
With corporate earnings already on the mend after a slump in oil prices and a strong US dollar in 2016, S&P 500 companies are expected on average to grow their earnings by 6.3 per cent in the December quarter and 13.6 per cent in the March quarter, according to Thomson Reuters.

Since the November election, the S&P 500 has rallied six per cent to record highs, in part due to expectations Trump will pass policies that stimulate the economy. Banks have led gains, with investors betting Trump will roll back regulations passed by President Barack Obama following the 2008 financial crisis, which many investors say went too far.

After United Continental Holdings on Tuesday posted lower December-quarter profits, airline president Scott Kirby told analysts on a call: "It feels like we are on a really good path. It felt to me like there was an inflection point after the election for business demand".

Also, upbeat Delta Air Lines Chief Executive Ed Bastian told analysts this month that he was excited about potential infrastructure spending promised by Trump, as well as a chance to make his case about unfair competition from Middle Eastern airlines heavily subsidized by governments.

Vince Delie, CEO of F.N.B., which own First National Bank, said on a quarterly conference call on Thursday that he saw more confidence among commercial customers and a potential pickup in lending.

"There are at least conversations occurring about larger capex opportunities within our customer base, which didn't happen before," Delie said.

Not everyone is over the moon, however. Kansas City Southern's CEO on Friday bemoaned an uncertain environment after the cross-border railroad reported lower quarterly profits, hurt by a slump in Mexico's peso since Trump's election.
"Obviously, the political and economic uncertainty is probably first and foremost on most of our minds, and the irony of us reporting earnings on the Inauguration Day of the 45th President is not entirely lost on us," Patrick Ottensmeyer told analysts.

Indeed, some business leaders and lobbyists in Washington who were initially enthusiastic about Trump's victory have begun to exhibit some hesitance over his agenda amid confusing messages on healthcare, taxes and trade.

Still, while Trump's views on immigration and a range of other issues are at odds with many Americans, most small businesses and consumers do see a brighter future as he launches his presidency.

An index of small business confidence in December hit a 12-year high, according to the National Federation of Independent Business.
The US consumer confidence index in December hit its highest level since August 2001, a month before the September 11 attacks.
Following strong stock gains in November and December, many on Wall Street are concerned that Trump may fail to deliver on all of his promises. A Republican-controlled Congress might baulk at infrastructure spending or tax reductions that significantly widen the federal budget deficit.

Other investors worry that Trump could follow through on campaign-trail threats to tear up global trade deals and crack down on illegal immigrants from Mexico who provide low-wage labour in agriculture, restaurants and other industries.

"Folks are potentially underestimating the degree to which Trump is serious about real reform on trade and immigration," warned Jon Adams, senior investment strategist at BMO Global Asset Management. "Investors, in general, are hopeful Trump will take a more pragmatic approach on those issues."

Over the past two months, Trump has publicly targeted and threatened a range of multinationals, including Ford Motor, General Motors, Boeing Co and Lockheed Martin. That may have left CEOs wary of publicly disagreeing with his policies.
"You don't want to step on a mine. So the best course of action is to be somewhat optimistic; positive but also somewhat noncommittal so you're not trapped one way or another," said Robert Pavlik, chief market strategist at Boston Private Wealth in New York.

:AAP

Lol still holding onto trickle down economics.

Long term investment depends on business optimism.
Growth and jobs depend on long term investment by business.

trump has shown himself to be a thin-skinned bully. of COURSE business are saying what he wants to hear.

let's wait until - or IF - he actually does something.

Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time.

Of course they're happy.

Big Donger wrote on Jan 23^rd, 2017 at 1:57pm:

Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy.

And it will only cost 5 trillion dollars... a year.  Not exactly sustainable. It has zero chance of getting thru congress.

bogarde73 wrote on Jan 23^rd, 2017 at 12:20pm:

US President Donald Trump's administration has only just taken over, but already a small parade of S&P 500 companies' chiefs have voiced optimism that his promised tax cuts, stimulus spending and deregulation will boost corporate profits. In the days ahead of Friday's inauguration, senior executives from Morgan Stanley, Delta Air Lines and other major US corporations said the Trump White House had already sparked a brighter outlook for business. "There is certainly more reason to be optimistic as we enter 2017 than there was at the beginning of 2016," Morgan Stanley CEO James Gorman said on Tuesday after his bank reported fourth quarter profit had doubled. He pointed to factors including a surge in consumer confidence after the November 8 election and lower taxes promised by Trump. Just under way, fourth-quarter earnings reporting season is providing a glimpse of what major large companies expect under Trump, and their take is largely positive so far. More than a dozen S&P 500 companies reporting results in the past week have signalled optimism about potential tax cuts, infrastructure spending, employee benefit costs and reduced regulation. With corporate earnings already on the mend after a slump in oil prices and a strong US dollar in 2016, S&P 500 companies are expected on average to grow their earnings by 6.3 per cent in the December quarter and 13.6 per cent in the March quarter, according to Thomson Reuters. Since the November election, the S&P 500 has rallied six per cent to record highs, in part due to expectations Trump will pass policies that stimulate the economy. Banks have led gains, with investors betting Trump will roll back regulations passed by President Barack Obama following the 2008 financial crisis, which many investors say went too far. After United Continental Holdings on Tuesday posted lower December-quarter profits, airline president Scott Kirby told analysts on a call: "It feels like we are on a really good path. It felt to me like there was an inflection point after the election for business demand". Also, upbeat Delta Air Lines Chief Executive Ed Bastian told analysts this month that he was excited about potential infrastructure spending promised by Trump, as well as a chance to make his case about unfair competition from Middle Eastern airlines heavily subsidized by governments. Vince Delie, CEO of F.N.B., which own First National Bank, said on a quarterly conference call on Thursday that he saw more confidence among commercial customers and a potential pickup in lending. "There are at least conversations occurring about larger capex opportunities within our customer base, which didn't happen before," Delie said. Not everyone is over the moon, however. Kansas City Southern's CEO on Friday bemoaned an uncertain environment after the cross-border railroad reported lower quarterly profits, hurt by a slump in Mexico's peso since Trump's election. "Obviously, the political and economic uncertainty is probably first and foremost on most of our minds, and the irony of us reporting earnings on the Inauguration Day of the 45th President is not entirely lost on us," Patrick Ottensmeyer told analysts. Indeed, some business leaders and lobbyists in Washington who were initially enthusiastic about Trump's victory have begun to exhibit some hesitance over his agenda amid confusing messages on healthcare, taxes and trade. Still, while Trump's views on immigration and a range of other issues are at odds with many Americans, most small businesses and consumers do see a brighter future as he launches his presidency. An index of small business confidence in December hit a 12-year high, according to the National Federation of Independent Business. The US consumer confidence index in December hit its highest level since August 2001, a month before the September 11 attacks. Following strong stock gains in November and December, many on Wall Street are concerned that Trump may fail to deliver on all of his promises. A Republican-controlled Congress might baulk at infrastructure spending or tax reductions that significantly widen the federal budget deficit. Other investors worry that Trump could follow through on campaign-trail threats to tear up global trade deals and crack down on illegal immigrants from Mexico who provide low-wage labour in agriculture, restaurants and other industries. "Folks are potentially underestimating the degree to which Trump is serious about real reform on trade and immigration," warned Jon Adams, senior investment strategist at BMO Global Asset Management. "Investors, in general, are hopeful Trump will take a more pragmatic approach on those issues." Over the past two months, Trump has publicly targeted and threatened a range of multinationals, including Ford Motor, General Motors, Boeing Co and Lockheed Martin. That may have left CEOs wary of publicly disagreeing with his policies. "You don't want to step on a mine. So the best course of action is to be somewhat optimistic; positive but also somewhat noncommittal so you're not trapped one way or another," said Robert Pavlik, chief market strategist at Boston Private Wealth in New York. :AAP

no link..never happened. 8-)

gee .... company chiefs happy corporate taxes are going down. No kidding?

next you'll be telling me 16 yr old boys get excited when a pretty girls invite them to stay the night.

Dumb Agnes doesn't understand what AAP is.
Rigor mortis is setting in.

There is always optimism when a new leader or team take the reins , nothing to see here

Big Donger wrote on Jan 23^rd, 2017 at 1:57pm:

Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy.

If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States.

More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo!

Trump is a businessman - America is a business! Why hasn't there been a businessman as pres before?

I guess its too large a step for Trump to abolish the Fed. Most could not get their heads around the idea of the Treasury issuing all currency at no interest and no debt. Such was first envisioned by the founding fathers and even Australia's Commonwealth Bank when it first started. Before being privatized - a fight that has been going on forever.

Richdude wrote on Jan 24^th, 2017 at 2:46am:

I guess its too large a step for Trump to abolish the Fed.

That's a pity, do you think he might rally the troops and demand an audit ? as Ron Paul has for years requested

Richdude wrote on Jan 24^th, 2017 at 2:46am:

Such was first envisioned by the founding fathers and even Australia's Commonwealth Bank when it first started. Before being privatized - a fight that has been going on forever.

Yeah we have the Reserve Bank of Australia (Bank of England), same as your Fed. It's classified "Top Secret" and has a strangle hold on Australia

"I don't care who make a nation's laws, as long as I control the money" ... sound familiar?

Bias_2012 wrote on Jan 24^th, 2017 at 3:09am:

Richdude wrote on Jan 24th, 2017 at 2:46am: I guess its too large a step for Trump to abolish the Fed. That's a pity, do you think he might rally the troops and demand an audit ? as Ron Paul has for years requested

An audit would not achieve much - just confirm what most of us already suspect - its empty. At least in what the gov has.
Stolen! Most has gone to pay the US bond holders ie the Fed, IMF and BIS. The fraud is more than a hundred years old. The US is owned and have the press, courts, congress and intelligence agencies in their pockets.

However the election of Trump is a sign that Americans are waking up and the elite fraudsters are going hysterical. Its fun to see - justice!

longweekend58 wrote on Jan 23^rd, 2017 at 2:19pm:

Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. And it will only cost 5 trillion dollars... a year.  Not exactly sustainable. It has zero chance of getting thru congress.

Doesn't he own congress?

Its time wrote on Jan 24^th, 2017 at 12:35am:

There is always optimism when a new leader or team take the reins , nothing to see here

fair point

Richdude wrote on Jan 24^th, 2017 at 2:46am:

Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo! Trump is a businessman - America is a business! Why hasn't there been a businessman as pres before? I guess its too large a step for Trump to abolish the Fed. Most could not get their heads around the idea of the Treasury issuing all currency at no interest and no debt. Such was first envisioned by the founding fathers and even Australia's Commonwealth Bank when it first started. Before being privatized - a fight that has been going on forever.

You don't even know what lefty means  ;D

Richdude wrote on Jan 24^th, 2017 at 2:46am:

Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo! Trump is a businessman - America is a business! Why hasn't there been a businessman as pres before? I guess its too large a step for Trump to abolish the Fed. Most could not get their heads around the idea of the Treasury issuing all currency at no interest and no debt. Such was first envisioned by the founding fathers and even Australia's Commonwealth Bank when it first started. Before being privatized - a fight that has been going on forever.

You're so right rich dude. Australia needs to cut its corporate tax rate to at least 20% if it is to have any hope if attracting business & capital to migrate here.
The trouble is the voters have been brainwashed into thinking business = rich people, when the truth is corporations are largely owned by pension funds which are the savings of millions of average people.

In fact, I would go so far as offering a tax holiday of 10 years to attract the right kind of innovative business. The payoff in jobs would be worth it alone.

Richdude wrote on Jan 24^th, 2017 at 2:46am:

Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo!

Good point, Rich. I have no doubt some business would grow and expand, but at who's cost? Trump's labour secretary wants to get rid of the minimum wage. It would seem Trump's vision for Amerika is that of low taxing, low service economies like Mexico or the Philippines.

The problem in Amerika is not so much economic growth, which is currently just over 2%. The problem is the massive disparity of income. The majority of US wealth now lies with a handful of hedge funds and private billionaires. This is what Trump's voters are angry about - they've been denied a share in the wealth while billionaires like Trump have gotten away with paying no tax.

Drain the swamp indeed.

Trump has cunningly turned his voters' focus onto immigration, which adds to the US economy. Trump's next battle will be with Republicans who favour immigration, and in particular, illegal immigration, but this will be a distraction from the main game: rising income disparity.

Corporate tax cuts won't fix this. The big companies are headquartered offshore anyway. I doubt that a 15% tax rate will attract them back, but we'll see.

The European Union trade chief says the trade policies US President Donald Trump has set out are "doomed to fail" and that the world's biggest trading bloc remains committed to open borders and economies.

EU Trade Commissioner Cecilia Malmstrom said Tuesday that most countries still share the same vision of open trade and investments.

"Building a wall is not the answer. The success of the EU relies on our open societies," Malmstrom said.

"Those who in the 21st century think that we can become great again by rebuilding borders, re-imposing trade barriers, restricting people's freedom to move, they are doomed to fail."

Trump's decision to pull out of the Trans-Pacific Partnership on Monday was seen as an indicator to a more closed US trade policy.
:AAP

Edit: Ms Malstrom ought to go and visit her presumably-native Sweden and see what open borders has done for that.
They are utterly shameless these feudal barons of the EU, dictating to their serfs and peons how they should adapt to the horrible fate they have inflicted upon them with their welcoming of a Muslim invasion.
And it's not as if they can even point to economic success for their policies. The EU is a basket case.

Big Donger wrote on Jan 25^th, 2017 at 8:55am:

Richdude wrote on Jan 24th, 2017 at 2:46am: Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo! Good point, Rich. I have no doubt some business would grow and expand, but at who's cost? Trump's labour secretary wants to get rid of the minimum wage. It would seem Trump's vision for Amerika is that of low taxing, low service economies like Mexico or the Philippines. The problem in Amerika is not so much economic growth, which is currently just over 2%. The problem is the massive disparity of income. The majority of US wealth now lies with a handful of hedge funds and private billionaires. This is what Trump's voters are angry about - they've been denied a share in the wealth while billionaires like Trump have gotten away with paying no tax. Drain the swamp indeed. Trump has cunningly turned his voters' focus onto immigration, which adds to the US economy. Trump's next battle will be with Republicans who favour immigration, and in particular, illegal immigration, but this will be a distraction from the main game: rising income disparity. Corporate tax cuts won't fix this. The big companies are headquartered offshore anyway. I doubt that a 15% tax rate will attract them back, but we'll see.

The wealth is created by these very dynamic people .
Bill Gates or Mark Zuckerburg create billions upon billions of dollars of wealth...so lets not kill the golden goose. in fact, lets have more golden geese.
the other way that your thinking is wrong, is that rich people SPEND that money they create.
You will never go hungry learning to eat the crumbs that fall off the rich mans plate.

i know a young guy who was on minimum wage mucking out stable in the hunter valley...but a great smile and a great attitude.   he ended up as a groom for Kerry Packer polo enterprise.
Living on an estate with luxury better then loius XV1.
I have a picture of him on a luxury yacht at a party in the south of France.
it doesnt pay to hate on the rich and successful
it pays to hang around them, study their success, bring them some value and you will realise they are pretty regular guys, pretty humble and pretty grounded.
Dont hate the cool kids....learn to be cool yourself  ;)

bogarde73 wrote on Jan 25^th, 2017 at 8:13am:

Richdude wrote on Jan 24th, 2017 at 2:46am: Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo! Trump is a businessman - America is a business! Why hasn't there been a businessman as pres before? I guess its too large a step for Trump to abolish the Fed. Most could not get their heads around the idea of the Treasury issuing all currency at no interest and no debt. Such was first envisioned by the founding fathers and even Australia's Commonwealth Bank when it first started. Before being privatized - a fight that has been going on forever. You're so right rich dude. Australia needs to cut its corporate tax rate to at least 20% if it is to have any hope if attracting business & capital to migrate here. The trouble is the voters have been brainwashed into thinking business = rich people, when the truth is corporations are largely owned by pension funds which are the savings of millions of average people.

Very true, Bogie, but innovation now lies in online services, which are typically started up in homes and garages. Unfortunately, Australia doesn't yet have the infrastructure to facilitate a boom in this area, and it certainly doesn't have the consumer base.

Australia is a mining economy in transition. The US is an economy based on intellectual property - brands, patents, IT, pharmaceuticals, chemicals, agricultural products.

Trump voters are largely those who've fallen foul of the decline in heavy manufacturing. The main reason this has moved offshore is the cost of wages, not tax. The US economy is no longer a production line, it's a service economy. Cutting wages, business tax (and imposing tariffs) is a lose-lose. This plan would see a drop in income (and consumer demand), lower state revenue (a mounting deficit), and higher prices (tariffs are taxes).

However, the big cause of manufacturing job decline is robotics. What we call manufacturing is not so much making things, but assembling them. Parts are made by machines and sent to China to be put together.

Manufacturing can return to the US, but at what price? Why not continue it's current model as a smart, service economy?

Richdude wrote on Jan 24^th, 2017 at 2:46am:

Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo! Trump is a businessman - America is a business! Why hasn't there been a businessman as pres before? I guess its too large a step for Trump to abolish the Fed. Most could not get their heads around the idea of the Treasury issuing all currency at no interest and no debt. Such was first envisioned by the founding fathers and even Australia's Commonwealth Bank when it first started. Before being privatized - a fight that has been going on forever.

aquascoot wrote on Jan 25^th, 2017 at 9:19am:

Big Donger wrote on Jan 25th, 2017 at 8:55am: Richdude wrote on Jan 24th, 2017 at 2:46am: Big Donger wrote on Jan 23rd, 2017 at 1:57pm: Trump plans to cut company tax by 50%, Bogie. He also plans to spend big time. Of course they're happy. If you cut tax by 50%. Business will grow - meaning more tax revenue which helps negates that loss. At the same time attracting more business to return to the States. More importantly the physical economy is expanded - more real production less for the parasites. Sorry lefties you miss out - boo hoo! Good point, Rich. I have no doubt some business would grow and expand, but at who's cost? Trump's labour secretary wants to get rid of the minimum wage. It would seem Trump's vision for Amerika is that of low taxing, low service economies like Mexico or the Philippines. The problem in Amerika is not so much economic growth, which is currently just over 2%. The problem is the massive disparity of income. The majority of US wealth now lies with a handful of hedge funds and private billionaires. This is what Trump's voters are angry about - they've been denied a share in the wealth while billionaires like Trump have gotten away with paying no tax. Drain the swamp indeed. Trump has cunningly turned his voters' focus onto immigration, which adds to the US economy. Trump's next battle will be with Republicans who favour immigration, and in particular, illegal immigration, but this will be a distraction from the main game: rising income disparity. Corporate tax cuts won't fix this. The big companies are headquartered offshore anyway. I doubt that a 15% tax rate will attract them back, but we'll see. The wealth is created by these very dynamic people . Bill Gates or Mark Zuckerburg create billions upon billions of dollars of wealth...so lets not kill the golden goose. in fact, lets have more golden geese. the other way that your thinking is wrong, is that rich people SPEND that money they create. You will never go hungry learning to eat the crumbs that fall off the rich mans plate. i know a young guy who was on minimum wage mucking out stable in the hunter valley...but a great smile and a great attitude.   he ended up as a groom for Kerry Packer polo enterprise. Living on an estate with luxury better then loius XV1. I have a picture of him on a luxury yacht at a party in the south of France. it doesnt pay to hate on the rich and successful it pays to hang around them, study their success, bring them some value and you will realise they are pretty regular guys, pretty humble and pretty grounded. Dont hate the cool kids....learn to be cool yourself  ;)

Strange. Bill Gates and Mark Zuckerberg have both campaigned to raise the minimum wage. Bill Gates and Warren Buffet have actively campaigned to increase the taxes of the wealthy.

All three live modest lives. Warren Buffet has an average-sized suburban home and two cars. All three eat the same as you or I. They've said so - this is their argument. How can their wealth possibly trickle down? They don't spend it.

The one billionaire who thinks differently is Donald Trump - a rich guy who based his brand on displays of excessive wealth and kitsch. When Trump settled his corporate bankruptcy, he was granted over $400,000 a month to live on. This money came straight from the investors in Trump casino junk bonds. Trump represents excessive affluence, gained from those he calls losers - I.e, investors and customers; those who fall for what he calls "truthful lies". This was Trump's pitch in the Art of the Deal.

So, on the one hand we have modest people who've done what they love doing and have made a fortune out of it. They have formed a lobby group to redistribute their own wealth. Despite their millions in charitable donations, they argue that only a raise in the minimum wage and increased taxation at the top end can make Amerika great again.

On the other hand, we have a corporate bankrupt who has not paid tax in years, despite his wealth and oppulant lifestyle. His plan is to make the wealthy richer, minimise their tax and lower their employees' wages.

Who to believe?