US poll could help emerging markets
Setback for Trump may offer a reprieve from isolationism
Donald Trump's first two years as US president have to a large extent been an unrestrained reign. For emerging-market economies such as SA's, this week's midterm elections would determine whether he would have checks and balances imposed on a presidency that has pushed for increased protectionism and trade wars; or whether he would get greater licence to pursue his "Make America Great Again" strategy, which has proved isolationist. While Trump has been quick to proclaim a victory for his Republican party, as it increased control of the Senate, the party lost control of the House of Representatives to the Democrats. The loss "will be perceived to allow for additional checks and balances on President Trump", US-based economists Mickey Levy and Roiana Reid of Berenberg Capital Markets told Business Times. The rand is the most liquid of emerging-market currencies and rallied on the outcome of the polls, breaking through the R14/$ mark for the first time since August. Trump and his base ...
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