The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
A.P. Moller-Maersk A/S, the owner of the world’s biggest container shipping line, saw its shares fall on Wednesday as the outcome of the US presidential election fanned concern there will be a shift toward policies that are hostile toward global trade.
Maersk sank as much as 5.6 percent to trade 3.4 percent lower at 9,215 kroner at 11:29 a.m. in Copenhagen.
The company’s Maersk Line unit commands almost 16 percent of the global market for transporting goods by sea. Executives at Maersk have already signaled alarm at the prospect of a world in which some of the biggest political powers adopt a more protectionist tone in their trade policies.
“The risk of increased protectionism may derail a recovery in global trade,†David Kerstens, an analyst at Jefferies International, said in a note. He listed Maersk as one of the companies “most affected†by the threat. Investors woke up to a mass selloff across markets amid panic and confusion over what a White House led by Donald Trump will mean for trade and geopolitical stability. The Republican nominee’s victory confounded expectations built on pre-election polling.
A Trump presidency would also be bad news for the Danish economy, where Maersk is the biggest company by revenue, according to Danske Bank. About one-third of Denmark’s current account surplus is directly dependent on the US and global sea trade, “so an anti-trade policy will clearly be a problem,†Las Olsen, chief economist at Danske in Copenhagen, said in a note.
Speaking to reporters in Copenhagen after the results were clear, Danish Prime Minister Lars Lokke Rasmussen said Trump’s victory puts into question the future of US-European trade relations.
“It’s uncertain what the fate of TTIP will be,†Rasmussen said. He went on to underscore his nation’s reliance on well-functioning trade relations. “Denmark is a country that has generated all its wealth through trade with others.†According to Helge Pedersen, chief economist at Nordea in Denmark, Trump’s victory may trigger a US recession in connection with the trade war that could ensue from his policies.