Donald Trump’s Win Hammers Carlos Slim By $5-1-B
Mexico’s wealthiest person lost $5.1-B in the wake of Donald Trump’s upset victory over Democratic rival Hillary Clinton. Carlos Slim, who is 5th-richest in the world, shed 9.2% of his fortune after the Mexican Peso’s deep dive on the news.
Mr. Slim led declines of $41-B on the Billionaires Index at the start of US trading Wednesday.
The Standard & Poor’s 500 Index was down 1.1% at 10:00a in New York. Stock markets across the globe wavered on news that the Donald Trump would become the 45th US President.
The index decline almost reversed the $57-B increase the world’s richest saw earlier in the week when markets rose on expectations that Hillary Clinton might prevail.
The 10 Mexican billionaires on the index dropped a combined $6.5-B in early trading. Eva Gonda Rivera, Mexico’s 4th-richest person, followed Mr. Slim with a $487-M loss while Lorenzo Servitje Sendra, the 5th richest, shed $397-M.
US billionaires, who account for 33% of the index wealth ranking, had the biggest dollar loss, falling $9.3-B. The combined net worth of the billionaires on the index fell 0.9% to $4.4-T at the start of trading in New York.
Donald Trump’s vow to amend the NAFTA trade agreement with Mexico, and to tax money sent home by migrants to pay for building a wall on the southern US border, have made the Peso particularly vulnerable in here.
Very hard times are coming to Mexico.
Mexican President Enrique Pena Nieto said he was ready to work with President-elect Trump, calling the neighboring countries friends who “should continue to work together for the competitiveness and development of North America.
Foreign Minister Claudia Ruiz Massieu reiterated that the Mexico would not pay for Donald Trump’s proposed wall along the US border. The vow that Mexico will pay for the wall was a Key feature of Donald Trumps pre-election speeches.
Ratings agency Fitch said Donald Trump’s victory may add downside risks to Mexico’s economic growth, while Moody’s warned the government may not meet its goals of cutting its budget deficit if flows of trade or foreign investment wilt under the Trump Administration.
An economist at Banorte, predicted Donald Trump’s victory will pare 0.3% from Y 2016 economic growth, and said the Peso could suffer for months as the market tries to figure out what Donald Trump might do in office.