Of the wide array of potential Democratic Party candidates to take on Donald Trump, one, in particular, stands out to traders. That candidate is Michael Bloomberg, owner of the eponymous media corporation.
The interest stems from the fact that he made his fortune around equity markets. He also continues to be a major factor when it comes to trading decisions.
Many pundits see his presidential candidacy as a long shot. Some argue that a billionaire is the last thing Democrats want to see. This is especially true given the polling for openly anti-wealthy candidates such as Elizabeth Warren and Bernie Sanders.
Others argue that Bloomberg wouldn’t have made the decision to run, and invested so much capital in the race, without having good reason to do so.
His chances of winning aside, though, the potential of a Bloomberg presidency would be more closely connected to the markets than any of the other hopefuls.
So, it’s certainly worth analyzing!
Bloomberg’s Information Machine
Just as his candidacy launched, the first major issue came to the forefront. That is, that Bloomberg Media has a significant following.
How would they handle their boss running? Turns out, they won’t.
The editorial decision not to investigate any of the Democrat candidates in order to not have to report negatively on the media company’s owner lifted eyebrows.
Presumably, this would leave a hole in presidential coverage for traders. Especially for those who would usually turn to Bloomberg (and their expensive terminals) to get important information! Would this continue in an eventual presidency? That’s not clear.
But, the potential means that traders might have to look for another source if they want unbiased coverage of what’s going on in Washington. That would be after navigating the potentially fraught waters where the media company continues to investigate their owner’s chief political rival, without providing comparative coverage of one side of the political aisle!
Good for the Markets?
Putting aside his media empire, many Wall Street denizens were enthusiastic about Bloomberg’s announcement.
The belief is that his broad knowledge of economics and the markets would help support the economy. Though, given the latest numbers, that doesn’t seem to be desperately needed right now.
Many, however, see him as a pro-capitalist counterweight to the increasingly anti-capitalist rhetoric from the Democratic hopefuls.
In addition, many in New York seem to have fond memories of when he was mayor. Those who do would like to see his widely applauded executive style in the White House.
On the other hand, some of Bloomberg’s more infamous measures, such as restricting the size of sodas that restaurants could sell, are considered symptoms of a “Nanny State”.
Bloomberg’s positions on the climate and China put him in the same territory as Emmanuel Macron.
A New Direction
Bloomberg argues his candidacy is necessary to take on the “grave threat” of a second term for Trump.
From what little is known of his potential agenda, interest in finance and the economy seems to be paltry. The focus seems to be more on political issues such as climate change and gun control.
Coming into the race this late, his plan appears to center around forming a consensus position after the major candidates wear each other out.
In fact, he doesn’t even plan to participate in early polling. This would suggest he will keep most of his presidential agenda under lock and key for a while now.
We’ll have to check back in the future to review the significance of his campaign if his late-comer strategy works!