Pavel Bandilov, Financial Analyst, Sofia International Securities (SIS), 24.02.2017
The different aspects of the impact of US President Donald Trump’s policies on the world economy and markets commented in the studio of Investbook with the leading Velko Kamenov financial analyst from Sofia International Securities (SIS) Pavel Bandilov.
“What Trump offers, and which for the first time will have a real chance to see, are fiscal incentives. Obama had similar intentions, but then the convention was highly polarized. But now we have a Congress that is dominated by the Republican Party, which gives a chance for such a programme to be adopted,” Bandilov summarizes.
“The second focus in the economic programme of the US President is the notorious tax reduction. Yesterday, we heard a statement from Finance Minister Steven Mnuchin, who commented on what they were planning to do. What did not like the markets is that the deadline was very short. The promise is that by August changes will be announced as a reduction in taxes by 15-20%, as well as a modification of corporate tax itself in a way that will stimulate exporters. Whether we will see this until August is in question, but such breakaway behavior helps the markets,” the studio guest further said.
There are risks and one of them is Donald Trump himself. “I have no concern about the market for the failure of some promises. What worries me are his foreign policy blunders,” the market analyst further said.
Look at the whole conversation:
