Trump's Twitter was referenced by the media, it was studied by analysts and financiers, investors and traders were guided by it
US President Donald Trump's Twitter account was permanently suspended by Twitter the social media giant on Jan 8, 2021. (Screengrab: Twitter/realDonaldTrump)

MAXIM - US President Donald Trump has been active on social media during his tenure. Trump's Twitter was referenced by the media, it was studied by analysts and financiers, investors and traders were guided by it, and Trump's opponents several times sought to temporarily freeze their account and, after an attempt to seize the Capitol by supporters of the 45th president, were blocked forever. Forbes recalled Trump's most famous and controversial tweets and how they influenced the markets.

With his statements, Trump crashed and raised oil prices, twice brought down the stock exchange, increased and decreased the fortune of entrepreneurs. Despite mistakes and misprints in words, disregard for historical facts and rather caustic attacks towards his opponents, Trump actually showed how a word can respond, and that, as is known from the Russian proverb, “not a sparrow”. 

On January 9th, Twitter permanently blocked his account with 88 million followers. This was reported in the official blog of the company. This decision was taken by the Twitter leadership in connection with the events in Washington on January 6, when Trump's supporters stormed the building of Congress and tried to disrupt the approval of the presidential election results. 

“After thoroughly reviewing the recent tweets of @realDonaldTrump and the context around them - in particular, how they are perceived and interpreted on Twitter and beyond - we have permanently blocked this account due to the risk of further incitement to violence,” says in the message of the social network.

Facebook and his Instagram also did not stand aside and froze Trump's personal pages "for an indefinite period." Mark Zuckerberg F noted that the incumbent will not have access to accounts, "at least until the peaceful transfer of power is completed," stressing that he considers it unacceptable to use social media to "incite rebellion against a democratically elected government."

The value of shares of companies after the Trump blocking began to decline rapidly. At the close on January 8, Facebook traded at $ 267.57, at the close on Monday, January 11, they were worth $ 256.84 (a drop of almost 4%). Twitter shares on January 8 at the close of trading were worth $ 51.48, on Monday they traded at $ 48.18 (down 6.4%).

The fortune of the founder and CEO of Twitter Jack Dorsey on Monday, January 11, fell by $ 843 million. According to the Forbes Real-Time rating, which is updated in real time, it was $ 12.1 billion. The fortune of Mark Zuckerberg, who lost $ 3.9 billion According to Forbes Real-Time, the founder of Facebook is now worth an estimated $ 94 billion.


Trump Index

Analyzing Donald Trump's Twitter account, analysts from the American bank JPMorgan Chase concluded that the president's tweets containing the words "China", "billion" and "goods" were most influenced by the president's tweets. They calculated a special index that tracks how the yield on US government bonds changes within five minutes after Trump's tweets, writes Bloomberg. It turned out that of almost 4,000 Trump messages, 146 had an impact on the markets, and most of all - on the yield of two and five-year US Treasuries. In addition to domestic influence, Trump's tweets have had an impact on global markets. For example, the announcement of the US President on the introduction of new duties on Chinese goods led to a sharp drop in the American and Asian indices.

Forbes recalled the most famous and controversial tweets of the 45th President of the United States, which affected the markets.


The F-35 [fighter] program

What Trump wrote:

“F-35 [fighter] program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20"(December 12, 2016)

How the market reacted

The US military-industrial corporation Lockheed Martin, which builds fighters, fell 4.2% and its market capitalization fell by $ 3.5 billion. F-35 program curator Jeff Babillon, in response to criticism of Trump, then said that the corporation has invested heavily to bring down the price of the F-35. In June 2017, Bloomberg reported that the F-35 program cost the US budget more than $ 400 billion.


Trump vs. Amazon and Twitter

What Trump wrote

"Amazon is taking a huge toll on retail stores that pay taxes honestly." (August 16, 2017)

“Long before the elections, I had complaints about Amazon. Unlike other [companies], they either do not pay at all, or they pay little taxes at the state level and below, make our postal service their own courier and drive thousands of retailers out of business! " (March 29, 2019)

“I'm right that Amazon costs huge amounts of money to the United States Postal Service, which it has on its parcels. Amazon should pay for these costs (additionally), not impose them on the US taxpayer. Many billions of dollars. Post managers do not even suspect (or do they suspect?)! " (March 31, 2018)

How the market reacted

Trump has spoken out about Amazon's online retailer Jeff Bezos F many times, but the three presidencies have caused the biggest damage to the company. The first tweet cost the company a 1.2% drop in quotations and a decrease in market value by $ 5.7 billion, the Independent wrote. The second dealt a more significant blow: in a couple of days, the company's shares fell by almost 9%, and its capitalization decreased by $ 66 billion.

On March 31, 2018, Trump again accused Amazon of misusing US Postal Service tariffs. As Bloomberg wrote, against the background of this, the capitalization of the retailer decreased by $ 53 billion.

What Trump wrote:

“Twitter has been shady banning prominent Republicans. This is not good. We will investigate this discriminatory and illegal practice immediately! There are a lot of complaints ”(July 26, 2018)

How the market reacted

Trump managed to bring down the shares of the social network by its own means of communication - after the president's tweet, the company's securities became cheaper by almost 14%. Simultaneously with Trump's message, Twitter published its financial report, which indicated a decrease in the audience in the second quarter of 2018 by 1 million people - these two factors greatly disappointed traders.

At the same time, in just three years of Donald Trump's presidency, the fortune of Twitter founder Jack Dorsey increased by almost 240%, from $ 1.3 billion to $ 4.4 billion.However, the bulk of Dorsey's income came not from Twitter, but from the Square payment system - at the time of Trump's inauguration Dorsey's stake in Square was worth $ 1 billion, but shares are up nearly 370% in three years. Now Dorsey's stake in Square is estimated at $ 3.6 billion and accounts for 80% of the businessman's assets.


Overpriced and a fragile world

What Trump wrote:

“Oil prices are getting too high. OPEC, please sit back and relax. The world cannot bear such price increases, it is fragile! " (22 February 2019)

How the market reacted

After Trump's tweet, the price of a barrel of Brent crude fell by more than 3% and dropped below $ 65, although before that it managed to rise above $ 67 for the first time since November 2017. WTI crude oil also went down: from $ 57.26 to $ 55.48.


What Trump wrote:

"I hope and expect that they will cut [oil production] by about 10 million barrels [per day] or perhaps more, which - if that happens - will be great for the oil and gas industry." (April 2, 2020)

How the market reacted

After the publication of the tweet, the markets reacted instantly: the price of a barrel of Brent crude jumped 21.52% to $ 30.38 per barrel. Moreover, at its peak, it rose to $ 36, which is 45.5% higher than the level of the previous close.

 

Trump and China

What Trump wrote:

“For 10 months, China has been paying the United States at 25% tariffs for $ 50 billion for high technologies and 10% for $ 200 billion for other goods. These payments partially explain our excellent economic results. On Friday, 10% will rise to 25%. $ 325 billion ... "(May 5, 2019)

How the market reacted

After this tweet, the capitalization of the global stock market fell by $ 1.36 trillion, and Chinese stock indices showed the maximum daily decline in three years, Bloomberg wrote. Each word out of 120 in Trump's tweet cost investors $ 13 billion.


What Trump wrote

"Trade negotiations are ongoing, and during these negotiations, the US will begin imposing small additional duties of 10% on the remaining $ 300 billion worth of goods and products that enter our country from China on September 1." (August 1, 2019)

How the market reacted

After another round of trade talks with China, Trump made a tweet that hit stocks again. American and Asian stock indices collapsed along with oil prices, while the dollar and gold rose in price. The S&P 500 fell 2.8%, Apple dropped 4.3%, Intel 3.4%.

According to Bloomberg estimates, as a result of the fall in the American market, the 500 richest people in the world lost more than 2% of their total fortune - $ 117 billion per day. Jeff Bezos lost most of all, having lost $ 3.4 billion due to the decline in the value of Amazon shares.


What Trump said:

“We are VERY close to a BIG DEAL with China. They want it, and so do we! " (December 12, 2019)

How the market reacted

The fortune of gambling tycoon Sheldon Adelson, the largest sponsor of Donald Trump's campaign, surged $ 1.2 billion after the US president on Twitter announced the imminent conclusion of a trade agreement with China. The US-China trade war hit Adelson's Macau gambling revenue, which accounted for a significant portion of Las Vegas Sands (the corporation that owns the world's largest casino in Las Vegas - Forbes). After Trump's announcement, Las Vegas Sands rose nearly 4%. (Forbes)

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