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.

Key Takeaways:

  • 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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