Newton Investment Management's Paul Flood, manager of its Multi-Asset Income and Multi-Asset Diversified Return funds, has rotated out of US financials in favour of non-American banks and alternatives, amid falling confidence in President Donald Trump.
Flood said an "isolated" Trump, who has this week seen Republicans openly distancing themselves from him and now has the lowest approval rating of any first-term President in history at just 34%, could lead to a dissolution of the business confidence that bolstered US markets upon his election last November. The manager said: "The recent show of a lack of confidence in the US President, with more members of the economic councils abandoning him, is a low for asset market confidence. It could lead to a decline in business sentiment if markets feel that this administration is going to strug...
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