Trump tax reform survey results - Nomura

Analysts at Nomura explained that a lot rests on Q1 expectations of a tax package.

Key Quotes:

"It may be a product of low expectations or a market tired of waiting, but we had a low response rate to our survey (only 64 responses) but special thanks goes out to those who took part."

"Our survey respondents expect a higher S&P500 and USD/JPY on high hopes for a tax package, but against EUR it’s a mixed picture. The majority (52%) expects a package to be passed in Q1, while a quarter (26%) feels that a package could be passed by year-end. 

A large majority expects a 20-25% top corporate tax bracket to be achieved, while 43% expect a package that would increase the deficit by $1-1.5trn – a smaller package than that expected immediately after the election. It appears that Trump reflation is back, but not to the same degree."