Don Argus calls for ‘new way’ of leading

Corporate leaders suggest Donald Trump will be too smart to implement his contentious election campaign policies.

Election news on the floor of the New York Stock Exchange. Picture: AP

Former National Australia Bank chief executive and ex-BHP Billi­ton chairman Don Argus believes that globalisation will continue, despite the trend running into some “choppy waters”.

As Donald Trump was swept into the White House this week on an anti-globalisation movement and a rising tide of populism, Mr Argus said politicians needed to develop “a new way of communicating and leading”.

Mr Trump’s surprise victory on Tuesday has also been linked to the same forces that were evident in Britain’s vote to exit from the European Union.

“The expansion of global markets is not a popular cause in some regions of the world and is beginning to experience a political backlash,” Mr Argus, who chairs the Australian advisory board of the Bank of America Merrill Lynch, will say in a speech on Monday.

“Brexit and the emergence of antitrade sentiment in the US presidential race are testament to the unease emerging.”

Mr Argus believes the trend towards a global economy will continue although there will be “bumps in the road”.

His comments come as corporate leaders are taking a wait-and-see approach to the new Trump administration in America, with some suggesting the US president-elect will be too smart to simply seek to implement the contentious policies he trumpeted during the bitterly fought election campaign.

Commonwealth Bank director and former AMP chief Andrew Mohl said Mr Trump had been “misread and underestimated’’.

“He ran a stunningly effective campaign to win against all odds by targeting key swing voters,” Mr Mohl said.

“His policies and rhetoric may be a serious concern but it would be wrong to assume he will implement them as president.

“He is a lot smarter than we think.’’

But legendary fund manager Howard Marks told the Hearts & Minds conference in Sydney yesterday that he was in the “I don’t know camp” about Mr Trump.

“I wouldn’t rush to a conclusion — his appointments will be important. We’ll see what kind of people he can attract to work in his administration and see what he tries to move forward,” said the founder of Oaktree Capital Management.

“The jury is far from out, it’s barely in. He has a slim margin in the Senate, and that includes people who said they wouldn’t support him. I don’t think it will be a rubber stamp. On paper he should be a pro-business president, more of a pro-business president than Hillary Clinton would’ve been.”

Stockland director Carol Schwartz said the Trump victory would have all sorts of implications for businesses globally “and it will be fascinating to see which of his promises he keeps and which he allows to just fade into the background”.

CBA director Launa Inman said while the market had reacted well to Mr Trump’s acceptance speech, “we really need to see how things unfold. Undoubtedly a strong economy in the US is good for Australia and the financial markets.”

Primary Healthcare and Adelaide Brighton director Arlene Tansey, who was born and raised in the US, said Mr Trump’s victory speech was surprisingly astute. “It was reaching across the political divide to appeal for unity, echoing president Kennedy’s ‘what unites us is far greater than what divides us’,” Ms Tansey said.

“Trump’s comments and more measured approach appeared to calm global markets.

“As to the consequences of electing Mr Trump as president, the ‘Apprentice’ starts the real work now.”

Bruce Buchanan, the New York-based CEO of the James Packer and Lachlan Murdoch-backed digital advertising group ROKT, said the result showed that the bottom 90 per cent of the US population was now “sick of a system where big business and politics work together to reward the top 1 per cent”.

“Generally in US business today, since the result, I think there is an anxiety around the unknown,” Mr Buchanan said.

“My belief is as a businessperson Trump will make it easier to do business in the US, which will be positive for jobs, wages and the economy

“As a business in the US this will be positive.

“However, he will be tough on international trade and this could have much broader implications on international economic activity and hence our business — the key will be how this is executed.”

Graham Bradley, who chairs HSBC Australia, a significant financier of trade flows in the region, said Mr Trump’s trade policies were unlikely to affect Australia’s relationship with the US, which was governed by a free-trade agreement and ran at a deficit in favour of the US.

Additional reporting: Sarah-Jane Tasker, Andrew White