How the Obama or Romney victory will affect some Swedish big companies
Wednesday, 19 September 2012
Some Swedish companies surprisingly will fare batter if there will be an Obama victor in the USA come November.
Construction company Skanska, is one of the Swedish company that is
gearing up to harvest from a Barack Obama victory in the U.S.
presidential election. But pharmaceutical group, AstraZeneca, and
fashion company, H & M, should rather hope Romney wins, according
to an assessment by the financial advisory firm Söderberg &
The choice between the two presidential candidates is very important,
even for the Swedish companies that are in the U.S. market. This is
because the two candidates' economic policies affect different
companies in a very different ways.
Construction group Skanska, with nearly a third of its sales in the
U.S., for example, will benefit if Obama's promised infrastructure
investments becomes real. The same applies for lock group Assa Abloy as
the housing market can shift into a higher gear with Obama.
"But the pharmaceutical giant Astra Zeneca would be disadvantaged by
health care reform, higher taxes and lower sales when smaller generics
companies can take a larger share of the market, "said Matthias
Gietzelt, chief strategist at financial advisory firm Söderberg &
Romney's broad tax cuts could benefit the consumer goods companies,
such as H & M, although the clothing group has only a small portion
of its sales in the United States. But it should also be noted that the
Romney tax cuts will affect mostly high earners and the low earners or
what is called there the middle class will see their tax rates go up
and this will affect their purchasing power.
Gietzelt also believes that the U.S. stock market will do best if Obama
stays in the White House as it has also ready been evident in the past
three years of his gvernement.
"There should be minimum of uncertainty, which is what is needed
in this phase of recovery for the U.S. economy, "said Gietzelt.
By Scancomark.se Team
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