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Temasek, a Singapore investment firm, is concerned about the potential impact of Donald Trump's presidential victory on the global economy.
According to a Bloomberg reportTemasek chief investment officer Rohit Sipahimalani argues that while Trump may appeal to markets due to his stances on tax cuts and deregulation, his policies could hurt international growth in the long term.
With the US presidential election approaching in a week, Sipahimalani suggests that Trump's policies could hamper both US and global companies, especially those with extensive overseas operations.
The Bloomberg report indicates that Temasek's assessment contrasts with some pro-Trump investor sentiment. In particular, Standard Chartered recently bitcoin-price-to-hit-new-high-post-election/” target=”_blank” rel=”nofollow”>provided a bitcoin (btc) rally to $125,000 if a Republican government takes over.
Although many see it as beneficial for stocks and bitcoin, Sipahimalani believes that a Trump victory could strengthen the US dollar and raise interest rates, which would adversely affect emerging markets.
Trump's trade policies, including tariffs, are also a concern for Temasek, as such measures often introduce uncertainty that could deter global investment.
In particular, the Republican candidate took advantage of the regulatory uncertainty surrounding the cryptocurrency market in the US. He promised to help boost the industry's growth by enacting policies such as withholding the country's btc holdings and firing the chairman of the Exchange Commission. and Values, Gary Gensler.
Meanwhile, Elon Musk, an avid Trump supporter, recently suggested that would reduce US federal spending by at least $2 trillion annually if Trump wins.
Musk, who is speculated to be absorbed into a Cabinet position by Trump, believes major budget cuts would streamline government spending and boost economic stability.
His stance aligns with Trump's vision for economic reform, including possible tariffs to raise revenue, despite the views of economists. warnings that this could increase costs for American households.
On the other hand, Sipahimalani says Kamala Harris' policies could benefit emerging markets. Some business leaders, including Mark Cuban, argue that Harris's approach could better support growth in innovation-driven sectors, particularly green technology and health care.
However, the Democratic candidate has not specified her plans for emerging markets such as cryptocurrencies.
Despite this, Cuban has expressed confidence in the potential of a Harris administration to stabilize and drive innovation in these areas.
Temasek's caution shows his focus on global economic stability and the potential ripple effects of US policies. With its recent plans to invest $30 billion in the United States, the company sees the importance of American policy in international markets.
However, it warns that significant “tail risks” could emerge in the coming years, depending on the election outcome, possibly creating turbulence for global investors and businesses.
