Donald's tax cuts come up Trumps for Michael Spencer’s Nex

Trump's tax cuts have also boosted UK firms
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NEX shares jumped 8% today after it said profits will be higher thanks to Donald Trump’s tax cuts.

The trading business, headed by City grandee Michael Spencer, had previously praised the surprise election of Trump as president for making markets more volatile, increasing its commissions. It said today that changes to US laws will see its tax rate fall from 26%-28% this year to 22%-24% next.

Nex cut costs last year following a profit warning that came on the back of subdued trading by clients.

It said today that markets have been “noticeably” more active since the beginning of the year. Sales in the third quarter grew 5%.

The shares rose 47p, 8%, to 640p.

Spencer said: “It is still too early to assume with any confidence that the previous and prolonged period of subdued market conditions has come to an end.”

Nex, which was known as Icap until the sale of its voice broking business to TP Icap last year, said its Mifid II regulatory reporting solution went live on January 3. It has already landed more than 380 new contracts, with annual revenue of over £10 million.

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