Business Leaders Weigh In on US Presidential Election
As the US presidential election approaches, business leaders around the world are trying to predict what the outcome will mean for their companies and industries. In Southeast Asia, where the region is trying to balance its relationships with the US and China, leaders are particularly interested in the implications of a Trump or Biden presidency.
DBS CEO’s Take on Trump’s Policy Suggestions
DBS CEO Piyush Gupta recently spoke at a Reuters conference, where he shared his thoughts on Trump’s policy suggestions. According to Gupta, Trump’s proposals paint a "pretty negative picture" for the global economy. The CEO pointed to Trump’s call for tariffs as high as 60%, which could lead to inflation and put pressure on currencies around the world.
A Possible Silver Lining to a Trump Presidency
Despite his concerns about Trump’s policy suggestions, Gupta saw a possible silver lining to a Trump presidency. The DBS CEO noted that Trump is a "dealmaker" who is not ideologically driven, and could be happy to "cut deals" with Chinese officials who also like to "cut deals".
DBS’s Focus on Asia’s Economic Development
Geopolitics aside, Gupta was optimistic about Asia’s economic development. He noted that the region is growing at double the rate of the rest of the world, with growth rates of between 4-5%. Under Gupta’s leadership, DBS is focusing on major economies like Greater China, India, and Indonesia, and has been investing in those markets.
DBS’s Investments in Asia
Last August, DBS acquired Citigroup’s consumer banking business in Taiwan, making it the largest foreign bank by assets in the country. On Tuesday, Gupta revealed that DBS now has a close to 19% stake in China’s Shenzhen Rural Commercial Bank, making it the largest shareholder in the Chinese bank.
DBS’s Plans for the Future
Gupta downplayed the possibility of any "earth-shattering, game-changing M&A" deals, instead saying that DBS will look for "bolt-on deals" that will build out its wealth management, SME retail, and transaction services businesses. The CEO emphasized that any large-scale acquisition would take too long and distract from the future.
Conclusion
As the US presidential election approaches, business leaders around the world are trying to predict what the outcome will mean for their companies and industries. While DBS CEO Piyush Gupta has concerns about Trump’s policy suggestions, he also sees a possible silver lining to a Trump presidency. Meanwhile, DBS is focusing on Asia’s economic development and investing in major economies like Greater China, India, and Indonesia.
FAQs
Q: What are DBS’s plans for the future?
A: DBS will look for "bolt-on deals" that will build out its wealth management, SME retail, and transaction services businesses.
Q: Is DBS’s investment in Shenzhen Rural Commercial Bank a significant move?
A: Yes, DBS’s close to 19% stake in the Chinese bank makes it the largest shareholder and gives it a foothold in the "Greater Bay Area" economic region.
Q: Is DBS concerned about the impact of Trump’s policy suggestions on the global economy?
A: Yes, DBS CEO Piyush Gupta has concerns about Trump’s proposals, which could lead to inflation and put pressure on currencies around the world.
Q: Will DBS make any large-scale acquisitions in the future?
A: No, DBS CEO Piyush Gupta downplayed the possibility of any "earth-shattering, game-changing M&A" deals, instead saying that the bank will focus on smaller, bolt-on deals.
Q: Is DBS optimistic about Asia’s economic development?
A: Yes, DBS CEO Piyush Gupta is optimistic about Asia’s economic development, noting that the region is growing at double the rate of the rest of the world.
Author: fortune.com
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