How a Trump presidency will affect 15 industries - The Washington Post housing benefit law

How a Trump presidency will affect 15 industries – The Washington Post housing benefit law

For the first time in history, home builders and commercial real estate executives see one of their own entering the white house. And though while they await details, they are optimistic about trump pushing some type of stimulus their way, in the form of lower tax rates or improvements to roads, bridges, public transit and other infrastructure.

“we feel that the results, as surprising as they are, make sense when you think about the primacy of housing. Every voter is a housing voter,” said nela richardson, chief economist at the housing data firm redfin. Richardson said the portion of americans who own their own home is at its lowest since 1965, leaving millions of americans — particularly in areas trump carried heavily on election day — unable to build wealth.

“if america becomes more isolated and less open, it could actually chill international demand for U.S.Housing benefit law luxury housing,” she said, “so he is going to have to square his immigration policy with the reality that foreign buyers are a critical part of the housing market.”

“trump has campaigned on reducing regulation, using housing and energy as flagship sectors that are over regulated,” rao said. “this could mean that regulations around developers and home builders might be among the first on the chopping block, especially given the president-elect’s conversation about wanting to lift the homeownership rate.”

Only two months ago, the private prison industry was reeling. The justice department had announced a plan to end the use of the private facilities for its federal inmates. Stocks of the corrections companies nose-dived. The presumed next president, clinton, used the debate stage to advocate for an even broader move away from the facilities at the state level.Housing benefit law

But the election of trump has quickly revived the fortunes of one of america’s most controversial industries. Though trump does not mention private prisons or immigrant detention as a part of his official platform, he had pitched himself to voters as a tough-on-crime “law-and-order” candidate.

Investors are now betting heavily that, in trump’s administration, the private facilities will be an essential component in a mass-scale deportation plan. They also say that trump, given his background in private business, could push to undo the justice department plan. Trump’s new attorney general — rudolph W. Giuliani is one name that has surfaced — could take that step fairly easily, by continuing and extending contracts with the private companies rather than letting them expire without renewal, as the current plan calls for.Housing benefit law

In the hours after trump’s victory, the united states’ two largest private prison companies — corecivic and the GEO group — saw their stocks soar like few others on wall street. Shares of corecivic, known until last month as corrections corporation of america, jumped 43 percent wednesday and maintained those gains on thursday. (still, the price is down from the start of the year.) GEO’s shares bumped up 21 percent.

During the obama administration, the detention of immigrants has become an increasingly important part of the business model for GEO and corecivic. The U.S. Immigration and customs enforcement agency holds more than 60 percent of its 400,000 annual detainees at private facilities, and nine of the 10 largest detention centers are private.

Wall street breathed a sigh of relief after the surprise election of trump.Housing benefit law for more than a year, the industry has been preparing for a high-stakes battle with progressive lawmakers, particularly sen. Elizabeth warren (D-mass.). If democrats gained control of the senate and clinton took the white house, legislation to curtail the industry’s influence — and potentially hamper its profits — was likely to be among congress’ top priorities. High-frequency traders, for example, feared a proposal backed by democrats to charge a “transaction tax” for the thousands of trades they make in a blink of an eye.

Much of that agenda now appears to be off the table. With the election of trump, wall street can go on the offensive, industry analysts say. Instead of defending itself from new regulations, big banks can fight to soften the rules put in place after the 2008 financial crisis through 2010’s dodd-frank wall street reform act.Housing benefit law trump said during the presidential campaign that he would dismantle much of the law, though he has not offered specifics.

Among many of the industry’s targets may be weakening dodd-frank rules that forced financial institutions to hold more capital and undergo yearly “stress tests” to prove they could withstand another severe economic downturn without taxpayer help. Community and regional banks will probably renew their push to be exempted from many of these new regulations, arguing that their slice of the industry does not pose the same risks as big wall street banks. The consumer financial protection bureau, which was established under dodd-frank and has been a major target of republican lawmakers, could also be weakened, analysts say.

Trump’s win could also bring a victory for brokers and financial advisers.Housing benefit law earlier this year, the obama administration introduced rules that limit the advice financial professionals can give to retirement savers by requiring them to put their clients’ interests ahead of their own. The rule, which is set to go into effect in 2018, has long been a target of republicans and other critics, who call it burdensome and costly.

One of trump’s campaign advisers has said that he would move to repeal the rule, which has faced multiple challenges in court. Many firms would welcome the chance to stick with the status quo if the regulation is eliminated, says michael wong, an investment services analyst for the fund research firm morningstar. Still, some firms may be benefiting from the rule, which has motivated them to move some clients into fee-based accounts, where costs add up to a percentage of the assets invested, wong says.Housing benefit law those can be more lucrative — and come under less scrutiny — than commission-based accounts, where advisers are paid based on the type of product they sell.

David french, senior vice president for government relations at the national retail federation, said the trade group is optimistic that tax reform will be more of a priority for trump than it was for obama. NRF likes the sound of the lower 15 percent corporate income tax rate trump discussed on the campaign trail because it says this would spur its members to invest in their businesses.

But big retail is also opposed to consumption taxes, and the tax reform plan that house speaker paul D. Ryan (R-wis.) has put forward would be a shift toward that kind of taxation. If that plan becomes a blueprint for a sweeping reform effort, it might be hard for retailers to stomach.Housing benefit law

Retailers such as walmart, dick’s sporting goods, under armour and zappos co-signed a letter to members of congress earlier this year urging them to support TPP, so it’s a safe bet that they’re among the retailers that are closely watching what happens to this and other trade deals going forward.

If trump follows through on pledges to rip up deals such as the north american free trade agreement, that could be troublesome for retailers. Without strong trade agreements in place, they worry that high tariffs will hurt their balance sheets and threaten their ability to sell goods at competitive prices.

He accused carmakers, particularly ford motor co., of shipping manufacturing to mexico, and declared that as president he would impose tariffs or other penalties in an effort to keep those jobs in the united states. It was a promise that resonated with the white, working-class voters who ultimately ushered him into office.Housing benefit law

Trump’s fixation on auto manufacturers as poster children for trade policy failures could put the industry on the defensive under his administration. Ford already challenged his rhetoric earlier this year when it explained that plans to manufacture some cars in mexico would not result in job losses here because its american factory workers would be producing other vehicles.

Needless to say, how the trump administration handles trade negotiations and whether he fulfills a pledge to reconfigure NAFTA will have direct consequences for the industry. For example, trump could impose tariffs on imports, and potentially spark a trade war with countries such as china, which would not bode well for automakers at home or abroad.

It is also an open question whether trump will change emissions regulations imposed by the environmental protection agency and national highway traffic safety administration.Housing benefit law trump has pledged to roll back regulation, though he has not outlined specific steps for doing so. Nevertheless, trump has questioned the reality of climate change.

Finally, trump’s desire for wide-scale infrastructure spending could be a boon for automakers. Many in the industry have invested heavily in electric vehicles, connected cars and autonomous driving, often with financial support and encouragement from the obama administration. Whether that continues under the president-elect remains to be seen.