Daily Management Review

Scandals around Trump are ravaging billionaires


05/19/2017


Scandals around the ties between US President Donald Trump and Russia cost $ 35 billion to the world's richest people, according to Bloomberg. At the same time, businessmen lost such a sum in just one day due to the US stock indices’ crush. Apparently, there is a frustration, associated with Trump's activities, brewing in the US.



Gage Skidmore
Gage Skidmore
The world’s richest people have lost $ 35 billion in just one day because of the latest scandals that are associated with US President Donald Trump. This is reported by the agency Bloomberg, counting Bloomberg Billionaire Index (the index calculates capital of 500 richest people).

Capital of Inditex’s founder Amancio Ortega (owns Zara, Massimo Dutti, Bershka) decreased by $ 355 million. For a day, Amazon founder Jeff Bezos lost $ 1,7 billion. Microsoft founder Bill Gates, whose capital amounted to $ 86.8 billion, lost $ 1 billion in a day. Shares of Microsoft fell by 2.8%.

Founder of Facebook, Mark Zuckerberg, suffered the greatest losses from political scandals associated with the US president. For one day, he lost $ 2 billion as shares of his company fell by 3.3%.

On Wednesday, US stock indices fell by 1.8-2.6%. In particular, the DJIA index dropped 1.78%, to 20606.93 points, and the high-tech NASDAQ Composite index - by 2.57%, to 6011.24 points. S&P Global BMI stumbled by 1.82%, to 2357.03 points. This drop was the highest for the indices since September 2016.

All this was caused by the US president's decision to dismiss Director of the Federal Bureau of Investigation (FBI) James Comey and beginning of the investigation of Trump's links with Russia.

On the eve of the fall of US stock indices, the US media accused Trump of pressuring the FBI. He allegedly demanded to stop the investigation into his ex-adviser Michael Flynn, who was allegedly contacted by a Russian diplomat in Washington.

In particular, according to Reuters’ sources, former National Security Adviser Michael Flynn and other participants in the presidential campaign of US President Donald Trump had at least 18 contacts with Russian officials and persons having connections in the Kremlin. At the same time, all contacts took place in the last seven months of the presidential campaign of 2016 in the format of telephone calls and letters, the agency said. According to Reuters sources, representatives of Trump's campaign headquarters communicated with Russian officials and people associated with the Kremlin, including the leader of the Ukrainian Choice movement, an alleged fellow of Russian President Vladimir Putin, Viktor Medvedchuk.

In May, it became known that Donald Trump had dismissed James Comey. As Bloomberg noted, Trump accused Comey of "inability to effectively manage" the FBI. "While I appreciate your reports, on three separate occasions that I am not under investigation, I still agree with the decision of the Department of Justice that you are unable to effectively manage the office", wrote Trump, making a reference to the FBI’s investigation of alleged links Trump with Russia. 

Donald Trump cannot get rid of scandals. One of the most widest of the troubles is discussed introduction of an additional tax in Palm Beach, Florida. The scandal is associated with costs that the authorities incur while providing security for the US president.

When the US president visits Palm Beach, local authorities have to spend more than $ 60 thousand a day. Basically, these funds are used to pay to additional employees of law enforcement agencies. In total, these purposes took more than $ 2 million from January to March.

As a whole, experts in the United States are disappointed Donald Trump’s activity as President. During the campaign, US presidential candidate Trump promised to raise growth rate of the country's economy to 4% a year, promising to bet on protectionism and protect interests of the American working class. However, in the first quarter of 2017, the US economy showed the worst performance in the last three years, as consumer spending fell sharply. According to the Bureau of Economic Analysis of the United States, gross domestic product - the total volume of production of goods and services produced by the economy - grew at an annual rate of only 0.7% in the first three months of 2017 after an increase of 2.1% in the last quarter of 2016. At the same time, according to the consensus forecast of analysts, growth was expected to increase by about 1.2%. As a result, the US economy has demonstrated the worst performance since 2014.

source: bloomberg.com, reuters.com






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