As Donald Trump takes his seat in the White House, how will it impact the rest of the world?
The unsurprising, for some, results of the American election are in. Donald Trump is the next president of the United States of America with his policies that are expected to shake up America. Similar to Brexit, there have been shock waves sent through the currency and equity markets within Asia as an air of uncertainty looms.
Nicholas Holt, head of research at Knight Frank, Asia Pacific, has said, “Similar to the impact of Brexit, the result of the US presidential election is likely to cause further uncertainty in terms of the global economic recovery and is likely to lead to a rush towards safe haven assets. Along with gold and triple-A rated government bonds, prime real estate in key global city markets is likely to see an uptick in interest.”
Beating Hillary Clinton to the White House, Trump’s policies are strong on immigration, but for South East Asia as a region there are concerns as to what his planned tactics are for trade and international relations.
America is used as a model across the world but the tables may turn as Trump takes power. A business man and property tycoon, Trump may give China a chance to strengthen its position as the American fairy tale democratic system did not play out as expected. Ahead of this many Chinese commentators have argued that faith had already been damaged with the US thanks wars both in Afghanistan and Iraq.
Focusing just on property alone, Holt has identified that there could be some pockets of opportunity during the uncertainty. “It is also likely to mean that the monetary tightening cycle in the US will come at a slower pace – a lower-for-longer scenario. This will further enhance the attractiveness of prime property in the US and beyond.”
