Trump Tweets and Causes (Another) Plunge For Pharmaceuticals On the Tel Aviv Stock Exchange
President trump tweeted he would work on lowering the price of drugs in the U.S., causing pharmaceuticals on the Tel Aviv Market to plunge- Teva, Prigo, and Milon all took a steep dive
- the Marker, Guy Erez
- י' אדר התשע"ז
רויטרס
President Donald Trumps’ Tweets have turned into the forefront of advancing his ideology and policies. Whether it be about internal affairs, politics, or on the international arena, Trump uses Twitter as his tool of conveying his policy’s and thoughts, leaving the world to deal with the fallout.
Today the pharmaceuticals earned a tweet, when the president tweeted that “I am working on a new system where there will be competition in the Drug Industry”. Which he claims, “Pricing for the American people will come way down!”
Donald J. TrumpVerified account @realDonaldTrump
I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!
In response to the tweet, large pharmaceuticals on the Tel Aviv stock exchange plummeted. Teva, Prigo and Milon, all large Israeli drug manufactures, registered significant loses: Teva plunged 3.1% (after it experience a loss of 3.3% yesterday) Milo 3.2%, and Prigo 1.9%. The companies are under the careful watch of American regulators lately, after the price of their products were drastically raised.
After Trumps successful election to the presidency, these three Israeli companies which are also traded on the NYSE, experienced a surge of 7%, and the general health care index on the NYSE rose by 8.9%. This was due to the great relief traders were experiencing with Clinton’s defeat in the elections, since she pledged to lower drug prices in the U.S.
Despite the relief, a month after trump was elected; in December of 2016 he was interviewed by ‘Time Magazine’ and said “I am hoping to lower drug prices, I don’t like what is happening with the price of drugs”. At the time, the statement shattered the salvation anticipated by the pharmaceutical companies.
This is not the first time Trumps’ Tweet’s have affected the trading market. In the past, his tweets negatively affected the stocks of Lockheed Martin, and Boeing, when he referred to the high prices these companies were charging the U.S. government for their planes.
His tweets also affected Toyota in Japan, when he tweeted an angry response to Toyota’s decision to construct a plant in Mexico and sell the cars produced there to Americans. In the past, he also threatened GM and Ford.
Translated by Eli B.
Today the pharmaceuticals earned a tweet, when the president tweeted that “I am working on a new system where there will be competition in the Drug Industry”. Which he claims, “Pricing for the American people will come way down!”
Donald J. TrumpVerified account @realDonaldTrump
I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!
In response to the tweet, large pharmaceuticals on the Tel Aviv stock exchange plummeted. Teva, Prigo and Milon, all large Israeli drug manufactures, registered significant loses: Teva plunged 3.1% (after it experience a loss of 3.3% yesterday) Milo 3.2%, and Prigo 1.9%. The companies are under the careful watch of American regulators lately, after the price of their products were drastically raised.
After Trumps successful election to the presidency, these three Israeli companies which are also traded on the NYSE, experienced a surge of 7%, and the general health care index on the NYSE rose by 8.9%. This was due to the great relief traders were experiencing with Clinton’s defeat in the elections, since she pledged to lower drug prices in the U.S.
Despite the relief, a month after trump was elected; in December of 2016 he was interviewed by ‘Time Magazine’ and said “I am hoping to lower drug prices, I don’t like what is happening with the price of drugs”. At the time, the statement shattered the salvation anticipated by the pharmaceutical companies.
This is not the first time Trumps’ Tweet’s have affected the trading market. In the past, his tweets negatively affected the stocks of Lockheed Martin, and Boeing, when he referred to the high prices these companies were charging the U.S. government for their planes.
His tweets also affected Toyota in Japan, when he tweeted an angry response to Toyota’s decision to construct a plant in Mexico and sell the cars produced there to Americans. In the past, he also threatened GM and Ford.
Translated by Eli B.
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