U.S. aerospace and defense industry welcomes Trump victory

Wed Nov 9, 2016 4:20pm EST
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By Alwyn Scott

SEATTLE (Reuters) - U.S. aerospace companies and lobbying groups embraced Donald Trump's presidential victory on Wednesday, setting aside fears that his policies would depress sales, shatter global alliances and roll back trade agreements.

Defense contractors in particular stand to benefit from a Trump presidency, given his pledges to beef up the U.S. military.

Boeing Co (BA.N: Quote), which is finalizing a deal to sell 100 jetliners to Iran, congratulated Trump and members of Congress and said it looked forward to working with them to promote global economic growth and protect workers. Trump has strongly criticized an Iran nuclear deal that made the sale possible.

The warm response from the world's No. 1 plane maker echoed friendly overtures from other U.S. manufacturers such as Ford Motor Co (F.N: Quote), which endured sharp criticism from Trump during the campaign for its growing operations in Mexico.

Manufacturers also pressed Trump on issues such as restoring the U.S. Export-Import Bank, increasing defense spending and pouring more investment into airport infrastructure.

Shares of aerospace and defense companies rose on Wednesday. The Dow Jones U.S. aerospace and defense index was up 4 percent in afternoon trading. Boeing shares were up 2 percent at $145.20 on the New York Stock Exchange. Among other major arms makers, Raytheon Co (RTN.N: Quote) was up 7.4 percent at $146.56 and Lockheed Martin Corp (LMT.N: Quote) was up 6 percent at $253.50.

NO "TREATY RIPPING"   Continued...

U.S. President-elect Donald Trump speaks at election night rally in Manhattan, New York, U.S., November 9, 2016. REUTERS/Mike Segar