Experts say Trump’s defeat, good for Nigeria and other emerging markets
By Modupe Shodeinde
Renaissance Capital (RenCap) analysts have predicted that victory for US Democratic Party presidential candidate, Joe Biden will attract investments to Nigeria and other emerging markets.
The Chief Economist at RenCap, an EM investment bank, Charles Robertson, in a report to investors titled: “Biden’s victory, trillions into EM and lockdown” said a Biden victory will, in the long run shift trillions of dollars to emerging markets.
“Our base case is that Foreign Direct Investment will stop being a net positive for the US due to Trump’s defeat, and portfolio flows will also go to EM, and together, these will drive the $ gradually weaker in coming years,” he said.
According to a report by Financial Times, the prevailing view is that a Joe Biden victory would be good for most developing countries and offer opportunities that have not yet been priced in.
Robertson stated that in the event of a Biden victory, a lot of money will be reallocated to EMs across board.”Emerging markets are going to do better out of a Biden presidency”.
Also, Timothy Ash, an analyst at BlueBay Asset Management, argued that due to the Trump’s administration’s protectionist stance, his presidency “has not been good for global trade growth”
“EM is a proxy for global growth and a Biden win means more global growth and trade,” he added.
Robertson said he expects Biden to clinch victory this evening (London time) with Nevada due to give him six Electoral College votes after 5pm London time.
