Monday, December 19, 2016

New reality: Politicians talk, stock shares drop

At The Hill by  

Companies well -versed in navigating legislative and regulatory hurdles are increasingly finding their stock price under assault from Washington.

A growing willingness by politicians to call out particular companies — and for traders to seize on those comments to try and turn a profit — has created wild stock swings in recent months.

Nowhere has the phenomenon been seen more clearly than with Donald Trump. The president-elect has relished in his ability to directly challenge companies in a very public way, most often through Twitter.

On Dec. 6, Trump picked a fight with Boeing, saying he wanted to cancel a contract with the manufacturer to deliver a brand new Air Force One in the coming years because costs were “out of control,” exceeding $4 billion.

Boeing quickly responded that is only has a $170 million government contract to plan for new planes, and the company’s CEO contacted Trump directly to hash things out.

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