Top bankers in Britain’s City of London are quietly hopeful that former president Donald J. Trump will be re-elected in November. They believe his economic policies will be far more beneficial to capital markets than a Kamala Harris presidency.
Despite some concerns over Trump’s protectionist stance on some industries and views on the Ukraine war, some in the City see advantages in his laissez-faire finance approach.
Speaking anonymously, a senior U.K. financial lobbyist noted that a Trump presidency might lead to a less restrictive regulatory environment, potentially boosting financial flows across the Atlantic.
The genuine concern in the City is a potential Kamala Harris presidency. Her economic plan includes targeting big businesses, which could be less favorable for the financial sector than Trump’s pro-business stance.
Under Trump, the City also benefited from appointments of industry veterans to key regulatory positions, like Steven Mnuchin at the Treasury and Christopher Giancarlo at the CFTC. This trend could continue, benefiting the financial sector.
A key opportunity for the City would be the inclusion of financial services in a U.S.-U.K. free-trade agreement, a possibility under Trump but unlikely under President Joe Biden or a Harris administration.
Chancellor Rachel Reeves has already signaled a willingness to strengthen U.K.-U.S. financial ties, regardless of who leads the U.S. And with Trump’s recent support for cryptocurrencies, the crypto industry in London sees potential benefits, despite his previous skepticism.
Trump has promised to create a strategic Bitcoin reserve and has earned millions of dollars of cryptocurrency donations throughout the 2024 presidential campaign.