US elections are culminated with the victory of Barrack Obama.Winning of Obama marks innovation in the US is good for the US, but it is also good for the rest of the world, as computers, mobile phones and the internet, for example, demonstrate. Obama stands for inclusive growth, accommodation of immigrants and equality of opportunity, and Romney stood for the opposite.
Now it can be expected that the fiscal cliff($600 billion) i.e. combination of expiring taxes and overboard government spending cuts will be fixed by working on monetary policy,easing interest rates and quantitative easing(QE).As the president will do something to minimize the effect of tax increases and spending cuts.
All over the world markets and price of different commodities increased, Dow Jones
industrial futures up 0.1 per cent to 13,213 and S&P 500 futures adding 0.1 per cent to
1,426.90. Britain's FTSE 100 rose 0.3 percent to 5,899.13. Germany's DAX rose 0.6 per cent to 7,419.95. France's CAC-40 rose 0.8 per cent to 3,507.30. Crude oil jumped to $88.72 per barrel,the euro rose to $1.2845.
A win for Obama is a positive for the capital market as that would ensure flow of Foreign Institution Investors(FII) money into India by continuing the QE thing which allows buying of shares worth $40 billion per month ensuring enough liquidity.
Obama's victory means that the hope of disciplining global finance stays alive and that fiscal policies will be more responsible and supportive of near-term growth.
Obama's foreign policy, too, is more adaptive to the more dispersed nature of global power.
Below is a breakdown of the possible implications by sector:-
1.Alternative Energy: Obama has said he will continue to support development of renewable energy technologies such as solar and wind, but he will need the support of Congress to extend or renew tax breaks that have underpinned the growth of those industries.
2.Healthcare: Hospitals and health insurers will benefit from the phased-in implementation of Obama's healthcare act, which requires most individuals to have health insurance.
3.Rundown: Under a Democratic government the industries most likely to benefit include healthcare facilities and services, food and staples retailers, home-building and life sciences tools and services.
4.Education-Govt will back taxes to avoid education cuts,less college costs,easy funding in education/training programmes so that more people have an opportunity to be educated so that they can really be qualified thoroughly in their area of work.
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