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The work begins for US President-elect Joe Biden to start making good on the policy changes he promised
The work begins for US President-elect Joe Biden to start making good on the policy changes he promised

Biden wins polls, but true test is yet to commence

The work begins for US President-elect Joe Biden to start making good on the policy changes he promised. Here’s a breakdown of how a Biden presidency may affect US industries and what might rise to the top of his agenda as he takes over from Donald Trump in January.

The work begins for US President-elect Joe Biden to start making good on the policy changes he promised. Here’s a breakdown of how a Biden presidency may affect US industries and what might rise to the top of his agenda as he takes over from Donald Trump in January.

How will consumption change under Biden?

Biden-era regulators may have a heavier hand than airlines felt under Trump. Debates over seat space could be revived, as could the levels of carbon emissions. His election also cuts both ways for car companies. The plan to renew and fund tax credits for EV purchases could empower manufacturers. Key watch items include concerns such as taxes and regulation, as well as trade—especially whether Biden will seek to improve global ties. He is expected to raise corporate taxes to 28% from 20% currently. His goal to raise the federal minimum wage to $15 an hour from $7.25 could reduce profit and lead to some job cuts.

What changes can we see in US agri, energy?

Any Biden roll-back of tariffs on Chinese goods could clear the way for more shipments of US farm products to Asia. But there’s concern a transition away from oil under Biden could erode demand for corn- and soy-based biofuels, which are mixed in with motor fuels. Industrial metals such as copper would be a big beneficiary from additional stimulus and infrastructure spending, according to Goldman Sachs Group Inc. and JPMorgan Chase & Co. Biden’s victory could end up reshaping the US energy sector, although the president-elect may have limited room to manoeuvre if Republicans retain control of the Senate.

Challenges galore
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Challenges galore

How is the healthcare space likely  to  evolve  under  Biden?

Biden’s win means new efforts to bolster the Affordable Care Act—and expand insurance coverage, subsidies to help more people afford it. He’ll roll back changes by Trump’s administrative that weakened the ACA. Creation of a public health-insurance option like Medicare that could compete with private insurers is likely. Biden also plans to double down on covid-19 testing.

Will Biden bring good news for Big Tech?

It’s likely ex-Google employees will be top candidates in Biden’s administration. That said, attitude toward Big Tech has changed considerably, and Biden may keep Google at arm’s length due to its monopoly. Democratic control over the White House and Congress could mean ramped-up antitrust scrutiny of Amazon.com. Biden’s victory could also hint a major win for Apple, since he’s less likely to maintain a trade war with China. Biden also has pledged to offer more H-1B visas to foreign engineers, in a win for Big Tech.

Are financial markets poised to benefit too?

Biden’s win could be good for Wall Street if he and lawmakers quickly pass a stimulus bill that boosts financial markets. But there’s a big risk for banks, hedge funds and private-equity firms if he concedes to demands that industry sceptics be appointed to key roles at the Treasury Department, Federal Reserve and Securities and Exchange Commission. In tax terms, VCs probably will end up taking a hit, as Biden has promised to increase corporate taxes and eliminate a preferential treatment of capital gains.

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