Get those tweet-storm skills ready, Mr. President. 

Since the start of 2017, the U.S. dollar has nosedived about 10% on a trade-weighted basis. Against the euro, the dollar has plunged 17% over that same span. That prolonged stretch of weakness, despite a surging U.S. stock market and healthy economic backdrop, could be sowing the seeds of more foreign companies buying "cheap" U.S. assets.

"With a weaker dollar U.S. companies are relatively cheaper and from that point of view it makes sense to expect more foreign takeovers of U.S. companies and less foreign acquisitions by US companies," says Bank of America Merrill Lynch strategist Hans Mikkelsen. The strategist points to European insurance giant AXA SA revealing a deal this week for the U.S.-listed XL Group (XL) as evidence of the potential cross-border deal interest.

The only question here is whether the Trump administration will let such deals pass. Already, the administration has injected itself into the brusing takeover battle between Qualcomm (QCOM) and Singapore-based (and Action Alerts Plus holding) Broadcom (AVGO) .  

Source: BofA
Source: BofA

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