United States

Donald Trump, the newly inaugurated 47th President of the United States, is wasting no time in implementing his agenda. Investors are on edge: what will this mean for the US economy?

Trump’s second term promises lower taxes, market-friendly policies, and bold trade moves, but risks with Russia, China, and inflation could shape global markets profoundly, write Han Dieperink in his latest column.

The Securities and Exchange Commission (SEC) has introduced new regulations requiring fund managers to disclose their investment holdings on a monthly basis, replacing the current quarterly reporting schedule.

With the United States facing another daunting budget deficit of seven percent of GDP this year, such alarming depictions of debt are proliferating.

Luxembourg is hoping its long, friendly relationship with China can help keep the superpower on a path towards more investment-friendliness instead of sable-rattling with the US. Levels of investment in China by Luxembourg-domiciled investment funds dipped during that country’s difficult Covid times. Some institutional investors are staying away due to darkening US-China relations. Hopes for a resurgence depend on peace.

The US national debt recently passed the 30,000 billion dollar mark. Since March 2020, the US national debt has increased by 7,000 billion dollars. All those “Treasuries” are ultimately part of one’s portfolio. Certainly now that some major buyers have dropped out this year, it remains to be seen whether enough buyers will remain.

Jay Powell was appointed by Trump. Trump denied Janet Yellen, the previous chair of the Federal Reserve, another term in 2018. Trump preferred to have his own pawn. He did not succeed. Powell and thus the Federal Reserve remained independent. Next year Powell can be replaced, but it will not be easy.