WORLD BUSINESS EXPECTATIONS....DUE TO TRUMB LEAD US
The price of everything in America may be about to go up
The Us elections shows impact on world business ,the analysts thinking in different ways...
Wall Street analysts are trying to figure out just what the economy will look like under a President Donald Trump. And though many questions are still unanswered, they are nearly unanimous on one thing: Trump's policies will most likely bring about a significant uptick in inflation. In other words, the prices of everything in America may be about to increase because of heavy spending by the government on infrastructure, for example, and restrictions on trade and immigration. It was one of the dominant trades on Wall Street after Trump's surprise victory. Specifically, there was a "broad-based rise in inflation swaps" on Wednesday, according to Bruce Kasman, head of economic research at JPMorgan. A salesman put it more simply when asked what he was seeing early Wednesday: a "massive bid for inflation." "Donald Trump's platform has an inflationary bias: His fiscal policy is likely to be expansionary, and he leans toward protectionism, which is inflationary due to the effects of tariffs and curtailed immigration," Mark Haefele, the chief investment officer at UBS, wrote in a note to clients. Let's break that down in to its two constituent parts: increased government spending and trade barriers. Fiscal stimulus In the lead-up to the election, Trump's campaign laid out a plan for $1 trillion in public and private investment in infrastructure that would generate revenue through things such as toll roads and airports. According to analysts, the combination of a tight labor market and increased money supply in the economy would put pressure on prices. The US is already operating at near full employment, and Trump's commitment to tighten the borders and deport immigrants could potentially reduce the labor force further. "US fiscal stimulus (which is not currently built into our US ,would boost global demand...
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