[ad_1]
Emerging markets in Asia could fall victim to US President-elect Joe Biden’s recent $ 1.9 trillion bailout, according to James Sullivan, former head of Asia-Japan equity research at JPMorgan.
Before the details of the latest bailout were announced, Sullivan said, “Most investors were very positive about Asia and emerging markets versus the United States. We have seen more than 18 consecutive weeks of flow of money to Asia, excluding Japan in the past two months. “
He added that it is “very likely” that funds will start to rotate from emerging markets in Asia and return to the United States due to the economic growth support of Biden’s plan, he said. told to “CNBC” and seen by “Al Arabiya.net”.
Biden on Thursday unveiled the proposed package, titled the US bailout, which includes measures to provide families and businesses with vaccines to be widely distributed. The plan includes stimulus checks as well as unemployment assistance.
Sullivan said JPMorgan previously forecast a 2 percentage point drop in U.S. gross domestic product due to a lack of fiscal stimulus.
“We have internalized our expectations for a $ 900 billion fiscal stimulus package, which has led to a 0.02% rise to 70 basis points in US gross domestic product,” he said. -he declares.
With Biden’s $ 1.9 trillion plan now more than double the amount projected by JP Morgan, this will be a “positive surprise” to the market as well as to overall levels of economic growth in the United States.
Sullivan expects Chinese markets to be among the first to be affected by this change.
Source link
