SINGAPORE (Reuters) – Here are the reactions of analysts and investors to U.S. President Joe Biden’s State of the Union address on Tuesday, in which he called on Republicans to raise the debt ceiling and back fiscal policies more favorable to the American middle class.
In his first speech to a joint session of Congress since Republicans took control of the House in January, Biden hammered at companies profiting from the pandemic and reviewed a wish list of economic proposals, such as: B. a minimum tax for billionaires, and a quadrupling of the tax on corporate stock buybacks.
DAMIEN BOEY, CHIEF MACRO STRATEGIST, BARRENJOEY, SYDNEY
“The main caveat is that you have to get out of this impasse in the House and the Senate.
“It’s particularly timely because you’re going to hit the debt ceiling in August. Clearly, Biden wants Republicans to understand that they want to work together. Most people assume it won’t be an easy promise when you get there.
“There’s also redistribution, where you force the rich to pay more taxes. It won’t help consumption much.
“So Biden’s whole talk is about lower inflation, but that’s not my problem because it’s here before I get here. But the risk is if you overstimulate when you have a tight labor market for short-term interest rates, this becomes a problem.
“When the yield curve is inverted again, does that change investment themes? People are still discussing the risks of a hard landing, portfolio managers worried that everything will come and go together? No.”
NAKA MATSUZAWA, CHIEF STRATEGIST, NOMURA, TOKYO
“I was expecting more aggressive comments on China. Biden should be clearer on how he will develop the supply chain outside of China. Trade with China is currently increasing instead of decreasing. meaning, he was not belligerent enough.
(Reporting by Rae Wee, Ankur Banerjee, Kevin Buckland, Stella Qiu; Editing by Lincoln Feast.)
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