In an interview with Bloomberg Television, Singapore’s state-owned investment firm, Temasek, cited potential economic risks if Donald Trump reclaimed the presidency. Rohit Sipahimalani, CIOTO of Temasek Holdings, said he fears Trump’s policies. However, promising tax cuts and less regulation may harm the global economy in the long run.
Speaking a week before the election in the United States, Sipahimalaniou discussed potential risks and their effects on American and global businesses of various degrees of dependence on the world economy.
The company’s attitude is somewhat contrary to some pro-Trump investor sentiment, as Standard Chartered recently predicted that Bitcoin could reach $125,000 if a Republican government comes into office. But in a clarion note of caution, Sipahimalani said that Trump could propel the dollar higher and interest rates, which are rhetoric to enemies of the emerging markets.
As for the political risks, Temasek’s management is worried about such policies as tariffs introduced by Trump, according to Sipahimalani. Some recent statements made by Trump, anxious about the potential benefits of the regulatory reforms, explaining that he will continue to promote the development of cryptocurrencies while they kept the Bitcoins of the U.S. government while seeking to replace SEC Chair Gary Gensler. The actual supporters of cryptocurrencies and partners have supported such a move since they think that Trump has a positive attitude toward the cryptocurrency market.
Singapore’s Temasek Musk’s Reforms vs. Harris’s Growth Potential
Introducing another angle into the debate, although Trump’s supporter, Elon Musk, has said that he would recommend Trump spend at least $2 trillion per year on federal spending, which he foresaw should Trump win. Musk, who has been rumored for some form of position in Donald Trump’s cabinet, has pointed to such cuts as necessary to rebalance the overheads and strengthen the economy.
His proposals repeat Trump’s economic reform plan, which, as economists opine, may involve increasing tariffs to increase federal revenues and prices for American consumers.
Sipahimalani observed, however, that this change might promote growth in emerging markets as envisaged by Democratic candidate Kamala Harris’s policies. Other corporate moguls, such as Mark Cuban, have backed Harris and claimed that her action could spur new development areas such as green technology and health. Still, Harris has not specified her position regarding the cryptocurrency business, which creates doubts about her vision of innovative-driven markets.
Recent activity of Temasek, such as the $30 billion U.S. investment plan, bears this out, indicating that U.S. policy remains crucial to the company’s operations on the global level. As with other directed themes of Temasek, such as ‘economic tail risks,’ it looks to the United States as a stabilizer and, concerning its trade policies, for the continuation of international economic growth. Two Temasek-related factors highlight the risks for investors and the global economy in the build-up to election day.
This news is republished from another source. You can check the original article here
