Skip to content Skip to footer
USA: 3 priorities for Joe Biden

USA: 3 priorities for Joe Biden

With the election of Joe Biden as the new president of United States, the economic and political scenario on a global level changes. Let’s look at the three priorities of the President.

Over the last weekend it became official: with the conquest of 290 electors and 75 million votes, Joe Biden is the new President-elect of the United States. The ordeal that kept the world in suspense seems to be over, although Donald Trump still threatens war on every front to re-establish, according to him, the truth about the correctness of the electoral count.

For many, Trump’s moves may not go very far, consequently most, but not everyone, around the world is focusing on how the new President will be able to change the US economy and the world’s balance. Basically there are three big priorities for 77-year-old Joe Biden from Scranton, Pennsylvania.

Pandemic plan: an investment of 7.5 trillion dollars

Covid-19 has resulted in over 20 million unemployed workers in the United States and a poverty rate that hasn’t been seen for decades.  So Joe Biden is already at work decongesting the US economy with a huge $ 7.5 trillion investment program to spread over 10 years. Of these, $2 trillion to be used immediately on infrastructure, clean energy, research and development, 5G, battery technologies and artificial intelligence.

To combat poverty, incentives for low incomes and for those who live in public housing will be inserted for $640 billion, $1.6 trillion will be provided for schools to the poorest and the minimum wage for workers will be raised to 15 dollars per hour. Obviously, the center of attention will be Healthcare, where Biden would like more assistance for everyone. For this reason, the new American administration plans to allocate $2.25 trillion for what will be called the Bidencare.

To cover this enormous amount of expenditure, is expected an increase in corporate taxes from 21% to 28%, increase taxation for those who exceed the income of $400 thousand per year, and higher tax on capital gains that exceed 1 million dollars. The plan should already be finalized by January 21, 2021, the first full day of work in the White House after the inauguration of President Joe Biden.

Green Economy: Restoring the Paris Agreement

Donald Trump’s last shot before his farewell to the White House was on November 4, with the official exit of the United States from the Paris Agreements to combat Climate Change. The outgoing President has concluded a long battle announced for the first time in 2017, as he has always considered this pact deleterious to the American economy and all to the advantage of China. Joe Biden’s goal now is to relaunch the alliance as an integral part of his grand $2 trillion project for climate change and thus for an increasingly greener world economy.

US-China: change of strategy to counter the rise of the Dragon

Joe Biden will move the front in United States ongoing fight with China. No more duties and direct clashes that penalized American companies, but  an attempt to reform the World Trade Organization with new rules that Beijing will have to comply with. Also with regard to the fight against Coronavirus, the United States will look to reduce conflict with the rest of the world by immediately re-joining the World Health Organization.

On the Chinese side, the first effects of Biden’s election were seen on commodities. In fact, the futures on Chinese grown crops have suffered a decline, with the price of corn hitting the lows of the last 40 days and soy recording the largest decline in two weeks now. Investors’ expectations of a greater push for imports from the United States with the new US administration and therefore a reduction in demand for Chinese domestic crops are probably pushing prices down.

Biden election: market reactions

The equity markets have largely discounted the election of Joe Biden to the White House and have been set to rise for some days.

Investors, on the other hand, have positioned themselves short against the US dollar as they expect that, with the strong support of the Fed and the huge spending plan put in place by Biden, rates will remain low for a long time.

A newfound confidence in the markets made oil jump, with Brent exceeding 40 dollars a barrel. For the moment, greater political clarity and recent positive news on the vaccine front have overshadowed the big concern about the drop in demand caused by the still increasing coronavirus contagion across the globe.

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com