LIVE MARKETS-Trump deregulation: the payoff is yet to show

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TRUMP DEREGULATION: THE PAYOFF IS YET TO SHOW

President Donald Trump's deregulation drive has generated some eye-catching numbers, but the benefits for corporate America have yet to show up clearly.

Jefferies strategist Aniket Shah says the administration has cut roughly $1.6 trillion in regulatory costs, rolling back Biden-era rules that added $1.9 trillion.

So far, however, compliance costs have not meaningfully declined. Selling, general and administrative expenses as a share of sales, which Jefferies uses as a proxy for regulatory burden, were largely unchanged or higher across most sectors through the third quarter.

Banks tell a similar story. Despite reforms to the enhanced supplementary leverage ratio (eSLR), five of the eight US global systemically important banks (G-SIBs) have increased their capital ratios, rather than releasing capital. But Jefferies says the real test will come later when regulators finalise the still-pending Basel III endgame and G-SIB surcharge rules.

The most tangible benefit so far has been in dealmaking. Antitrust agencies reinstated early termination of merger reviews in February 2025, and 265 deals received accelerated clearance in 2025. Deal sizes have also increased.

So, what does all this mean for investors?

Shah says the impact on fundamentals has been limited, but notes the faster M&A clearance "is marginally positive for equities, particularly for investment banking names".

He also believes that financials and utilities stand to benefit most from the SEC and EPA pipelines, "though these gains depend on proposals being finalized largely as written."

(Danilo Masoni)

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