Industry Trend Analysis - Global Agribusiness Post US Election: Winners And Losers - FEB 2017
BMI View: We expect agricultural equities, represented by our modified Bloomberg Food Index , to outperform major equity benchmarks over the coming quarters as a rebound in earnings will see improved share price performance. Agribusiness companies will broadly benefit from some of the macro-economic implications of Donald Trump ' s presidency, but suffer from some of his other proposals, including stricter immigration enforcement and increased trade protectionism.
The agribusiness sector will outperform benchmark equity indexes over the coming quarters as the earnings downturn facing the sector will reverse.
Commodity Inflation Boost To Help Agribusiness Sector Commodity Prices, % chg y-o-y & World CPI, % Note: Brent Crude oil and S&P GSCI Grains Index. Source: Bloomberg, IMF, BMI
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