US elections: all eyes on Congress
Article Abstract:
The aftermath of US Nov 1996 elections is likely to be turbulent for financial markets. The value of the US dollar, shares and bonds, is likely to drop if the Democrats gain control of Congress. There is concern that the Democrats would seek tighter controls in areas like healthcare and tobacco. The Democrats are also perceived as less committed to a balanced budget and more likely to support protectionist measures against imports. Markets would be happier if the Republicans were to retain control of Congress.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Investment in the Blair era
Article Abstract:
The UK Labor party has similar policies to the ruling Conservative party, but there are enough differences for a Labor budget to affect investors. The Labor party would face a call from the Bank of England to raise interest rates to control inflation, but this would hit the manufacturing industry. The party could tighten fiscal policy in order to avoid raising interest rates. An increase in taxes would help share prices unless it involved a change in certain taxes such as advance corporation tax.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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