*November 11, 2024 – London, UK* – As the possibility of a second term for Donald Trump as President of the United States looms on the horizon, analysts are beginning to assess how his policies and leadership style could impact global markets. While many businesses and industries have faced uncertainty during his first term, there are a number of companies—particularly those listed on the FTSE 100 index—that could stand to benefit from the continuation of Trump’s economic and trade policies. From tax cuts to deregulation, the incoming political climate in the U.S. could provide a significant tailwind for some UK-listed companies.
While the future remains uncertain, investors are keeping a keen eye on stocks that could see substantial growth if Trump’s policies of tax cuts, deregulation, and a robust “America First” approach to trade continue into the next presidential term. Below are two FTSE 100 stocks that could potentially soar during Donald Trump’s second stint in the White House.
### 1. **AstraZeneca (AZN): A Pharma Giant Positioned for Growth**
AstraZeneca, the UK-based global pharmaceutical company, is one of the FTSE 100’s top performers and stands to benefit from several of Trump’s policy initiatives if he is re-elected. As one of the world’s leading biopharma companies, AstraZeneca has a strong presence in oncology, respiratory, and cardiovascular treatments. The company has also gained significant attention for its role in developing a COVID-19 vaccine, which further established its prominence on the global stage.
Under a second Trump presidency, AstraZeneca could see substantial growth thanks to the continuation of policies that have supported the pharmaceutical and healthcare sectors in the U.S. In particular, Trump’s approach to deregulation, tax cuts, and promoting domestic production could benefit large pharma companies like AstraZeneca, which are major players in both research and manufacturing.
**Tax Reform and Drug Pricing Policies:**
One of the most notable aspects of Trump’s first term was his push for lower corporate taxes, which led to a more favorable business environment for large multinational companies. The Tax Cuts and Jobs Act of 2017 reduced the U.S. corporate tax rate to 21%, giving companies like AstraZeneca more room to invest in research, development, and expansion. Although Trump’s tax policies were initially controversial, they have proven popular with corporations, and another term could result in further tax breaks for companies in the health and biotech sectors.
Additionally, Trump has repeatedly expressed opposition to government-mandated drug pricing controls, which could be beneficial to companies like AstraZeneca. While other countries have pushed for more stringent pricing regulations, Trump has argued for free-market solutions to healthcare, which could help ensure that pharmaceutical companies continue to operate with less interference in the U.S.
Furthermore, Trump’s focus on “America First” policies, including boosting domestic manufacturing, could bolster AstraZeneca’s ability to ramp up production in the U.S., particularly for key drugs and vaccines. As the company continues to expand its presence in the U.S. market, particularly in cancer treatments, the favorable business environment created by Trump’s deregulation policies could create a strong foundation for long-term growth.
**Global Expansion and Trade Policy:**
AstraZeneca’s global footprint also positions it well to benefit from Trump’s policies on international trade. Although Trump’s protectionist trade policies have led to friction with China and other trading partners, AstraZeneca’s focus on research and development (R&D) gives it the ability to capitalize on the growing demand for pharmaceutical products worldwide. Trump’s stance on trade deals, especially if he re-engages with international partners under terms favorable to U.S.-based businesses, could benefit AstraZeneca as it seeks to expand its share in key markets.
### 2. **BP (BP): Oil and Gas Giant Set to Thrive**
Another FTSE 100 company that could see its fortunes improve under a Donald Trump presidency is BP, the British multinational oil and gas company. BP has long been a major player in the global energy market, and its position is especially significant as the world continues to grapple with energy security and the transition to renewable sources. However, in the near term, BP is likely to benefit from a continuation of Trump’s pro-fossil fuel policies, which include deregulation of the energy sector, increased oil drilling, and support for domestic energy independence.
**Energy Policies and Deregulation:**
During his first term, Trump made it clear that he was committed to making the U.S. energy sector as robust and self-sufficient as possible. Under his leadership, the U.S. became the world’s largest producer of oil and natural gas, thanks to policies that encouraged fracking and reduced environmental regulations on energy companies. If Trump were to be re-elected, these policies are likely to persist or even intensify, leading to increased demand for global oil and gas companies like BP.
The potential for higher oil prices, driven by increased production and global competition, could significantly boost BP’s profitability. Trump’s deregulatory approach has often benefited the energy sector by reducing restrictions on oil exploration and drilling, especially on federal lands. For BP, which has a strong presence in both the U.S. and global oil markets, this could lead to more opportunities for exploration and extraction, potentially translating into higher earnings and improved stock performance.
**Geopolitical Factors:**
In addition to favorable domestic energy policies, BP could also benefit from Trump’s foreign policy stance. His administration’s emphasis on energy independence and its criticism of OPEC’s influence on global oil markets could create a more favorable environment for BP’s operations in the U.S. and beyond. As Trump looks to reduce reliance on foreign oil imports, BP’s operations in North America could be in a strong position to capitalize on any growth in domestic energy consumption.
Moreover, Trump’s focus on supporting U.S. energy companies could give BP an edge in securing lucrative contracts and partnerships in the U.S. market. With rising global demand for oil and gas, combined with a more favorable regulatory environment under Trump, BP could see its stock price soar, especially if oil prices experience a sustained rally.
**Diversification into Renewables:**
While BP is traditionally seen as an oil and gas company, it has increasingly been shifting toward renewable energy sources, such as wind and solar power, in recent years. Although Trump has been more focused on fossil fuels, his policies on energy independence could encourage further investments in cleaner energy technologies. BP, with its focus on diversifying its energy portfolio, stands to benefit from both fossil fuel and renewable energy initiatives.
### The Bottom Line: A Trump Presidency Could Fuel Growth
As the possibility of a second Trump term grows more likely, investors will continue to evaluate which sectors stand to benefit from his policies. For FTSE 100 investors, stocks like AstraZeneca and BP represent two clear opportunities to capitalize on his pro-business, pro-energy, and pro-healthcare policies. Both companies are poised to thrive in a market environment that emphasizes deregulation, tax cuts, and energy independence, while also leveraging their global reach to navigate the complexities of international trade.
While Trump’s policies may not be universally popular, there’s no denying the potential for significant upside in certain sectors. For investors who are carefully positioning themselves for the next chapter in U.S. politics, these two FTSE 100 stocks could represent strong growth opportunities in the coming years. As always, however, it’s important to carefully monitor the evolving political landscape and consider the risks that come with investing in such a volatile environment.
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