Connect with us

Business

How will U.S. markets react to the midterms?

Published

on

U.S. stocks are likely to enjoy an impressive rally this week, as Republicans look set to take the Senate

On Tuesday, U.S. voters will elect representatives for all 435 seats in the House of Representatives and 35 seats in the Senate.

There are also a range of other positions like local governors and mayorships on the table.

Democrats may prepare for a watershed loss. However, investors are expecting a rally of U.S. markets.

Nigel Green from the deVere Group believes Republicans could take at least one chamber in these elections.

The deVere Group is one world’s largest independent financial advisory, asset management and fintech organisations.

“History teaches us that a sitting president’s party sheds some level of power during these elections, splitting the executive and legislative branches of the U.S. Government.”

“This typically results in gridlock as lawmakers are unable or unwilling to agree on major legislation, meaning that substantial laws are either not approved or significantly reduced in scope and impact,” Mr Green said.

U.S. President Joe Biden has urged people to vote Democrat amid rising inflation and cost of living pressures.

In September, the price of basic goods and services increased by 8.2 per cent when compared to the same time last year.

“This is not a referendum; this is a choice.  And the more people we get out to vote, we win. We win.”

JOE BIDEN, U.S. PRESIDENT

Mr Green said some sectors will be more impacted than others after Tuesday’s vote is complete.

“The status quo usually means that corporations can push on with their plans and investments without the risk of everything being upended by new laws and requirements.”

“Reforms to legislation on big tech can be expected to come to a halt due to the gridlock, which “represents upside for the tech stocks,” he explained.

Who is likely to be affected?

A Republican wave across the U.S. could be a win for major pharmaceutical and biotech stocks, which have already capitalised during the Covid-19 pandemic.

Democrats are pursuing a bill to lower prescription drug prices. Biden said the price of prescription drugs has been out of control for years.

“We pay the highest price for prescription drugs than anywhere in the world.”

“The prescription you have from a drug manufacturer in the United States you get at the local drugstore, you can get in a plane and fly to Paris, you can get the same exact drug for less—every other major capital in the world,” President Biden said.

A voter marks a ballot during the primary election and abortion referendum at a Wyandotte County polling station in Kansas City, Kansas, U.S. August 2, 2022. REUTERS/Eric Cox

Wall Street’s energy stocks could see gains if Republicans take either the House of Representatives or the Senate.

If this is the case, a Democrat-led windfall tax on oil producers could be blocked.

“I’ve released millions of barrels of oil from our Strategic Petroleum Reserve, keeping the price down. It’s down about $1.25 and going down,” the President said, as he conceded prices need to drop further.

The oil crisis has been spurred by the war in Ukraine, as major economies like the U.S. and Britain sanctioned Moscow for its so-called ‘special military operation’.

Russia is the world’s second largest producer of oil. However, the west’s sanctions have cut Moscow from the global supply chain, and sent oil prices skyrocketing.

In addition, the Organisation of Petroleum Exporting Countries and its allies (OPEC+), recently made the decision to cut its daily oil production by 2 million barrels.

The OPEC+ group is primarily run by Russia and Saudi Arabia. President Biden said “there will be consequences” over the recent decision.

The reduction has impacted around 2 per cent of global oil demand.

Oz Sultan is a former Republican candidate, who said U.S. markets will respond favourably if there is a sea of red on Tuesday.

“What we’ve seen from the Biden White House is an approach to green energy, which isn’t necessarily sensible.”

“A lot of what his [Biden’s] policy has been is too little too late, and it’s great thinking but if you don’t have sensible policy that affects the change that you want, it’s not going to happen.”

OZ SULTAN, FORMER REPUBLICAN CANDIDATE

Midterm elections have previously heralded positive stock market performances.

However, there are a suite of inflationary pressures and cascading events including the pandemic, conflict in Ukraine and global supply chain crunch, which investors are keeping a close eye on.

How can investors avoid the worst of it?

The U.S. President typically seeks to use the results of the midterms to boost the economy in the third year of their presidency, as part of their bid to get re-elected in the following year.

However, a divided government will make it harder for President Biden to pass his legislative agenda.

Mr Green from the deVere Group said investors should not underestimate the importance of a trusted investment strategy.

“Ensuring your portfolio is properly diversified is one of the fundamentals of successful investing.”

“Having a well-diversified portfolio across asset classes, sectors and regions means you are best-placed to mitigate risks and best-placed to take advantage of important opportunities.”

NIGEL GREEN, CEO OF THE DEVERE GROUP

The midterm report card is set to alter the course of U.S. domestic politics as the 2024 Presidential election looms large.

However, President Biden said there is also something else at stake: democracy itself. 
 
“I’m not the only one who sees it. Recent polls have shown that an overwhelming majority of Americans believe our democracy at—is at risk, that our democracy is under threat.”

“They too see that democracy is on the ballot this year, and they’re deeply concerned about it,” he said.

Costa is a news producer at ticker NEWS. He has previously worked as a regional journalist at the Southern Highlands Express newspaper. He also has several years' experience in the fire and emergency services sector, where he has worked with researchers, policymakers and local communities. He has also worked at the Seven Network during their Olympic Games coverage and in the ABC Melbourne newsroom. He also holds a Bachelor of Arts (Professional), with expertise in journalism, politics and international relations. His other interests include colonial legacies in the Pacific, counter-terrorism, aviation and travel.

Business

How to avoid getting scammed this holiday season

Published

on

There are fresh warnings for those wanting to score a bargain online as we head into the Holiday period

The silly season is well and truly here but as we all inevitably get caught up in the festivities, Australian authorities are urging residents to stay cyber safe.

Reports of online scams are on the rise as criminals stoop to new lows.

As we shop for Christmas gifts, the Australian Federal Police agency warns we need to be wary of fake delivery text messages.

AFP Cyber Commander Chris Goldsmind says one of the most common techniques used by scammers is called “spoofing”.

This is when criminals impersonate trusted brands, including legitimate parcel delivery services, to send messages designed to trick consumers.

They entice people to click on links containing harmful malware or providing personal information.

We know cyber criminals are more active in December because they look to prey on victims who may be more stressed or less attentive.

So how can you stay safe this Christmas?

Authorities say we should be on the look out for grammatical errors, requests for personal information, odd-looking links or an unexplained sense of urgency.

These are all signs of a scam message.

On top of this, most delivery services will NEVER text or email their customers to request personal or financial information.

And remember – If it doesn’t feel right, it probably isn’t.

Continue Reading

Business

Microsoft sued over its planned acquisition of Activision

Published

on

The U.S. Trade Commission is pushing ahead to stop Microsoft from buying ‘Call Of Duty’ maker, Activision

The U.S. anti-trust regulator says Microsoft has a record of buying valuable gaming content, which is then used to slow competition.

Microsoft is seeking to acquire ‘Call Of Duty’ maker, Activision for $68.7 billion in the biggest gaming industry deal in history.

However, the U.S. Federal Trade Commission (FTC), which enforces antitrust law, believes Microsoft has a record of holding onto gaming content.

Holly Vedova is the director of FTC’s Bureau of Competition, who said gaming rivals will be impacted if the deal went ahead.

“Today, we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

Brad Smith is the president of Microsoft, who said the company would fight the ruling.

“While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court,” he said.

A hearing will be held before an administrative law judge by August 2023.

The FTC decision led to a slump in Activision shares, which closed 1.5 per cent down at $74.76.

Meanwhile, Microsoft slipped from an earlier high but still closed around 1 per cent higher.

Continue Reading

Business

Excessive television viewing linked to gambling disorders

Published

on

Children who watch excessive television are at a greater risk of tobacco use and gambling problems in adulthood, according to a new study from the University of Otago.

The New Zealand research team worked out how television viewing in childhood
was related to the risk of having a substance use disorder later in life.

Dr Helena McAnally said excessive time spent in front of the television between the age of five and 15, may be a risk factor for the development of later disorders.

“People often talk of television viewing as an addiction; this research indicates that, for some
people, television viewing may be an early expression of an addictive disorder or may lead to later substance-related and other addictive disorders.”

The study found for tobacco and gambling, the associations were independent of other potential influences like sex, socioeconomic status, and measures of childhood self-control.

Professor Bob Hancox, who worked on the study, said television time has been linked with a range of poorer choice in adulthood.

“Public health agencies have put great effort into advocating for safer alcohol use and safe sexual practices; similar campaigns could be used to advocate for safe screen use,” he explained.

Professor Hancox added this research is among the first to assess how a common, but potentially addictive behaviour can be linked t substance disorders later in life.

“The study highlights the potential need for guidance on digital health and wellbeing,” he said.

The U.S. Academy of Pediatrics’ has recommended a limit of two hours of screen time per day.

They also encourage parents to avoid using screens as pacifiers, babysitters, or to stop tantrums.

It is also recommended screens are turned out at least 30 minutes before bedtime.

Continue Reading
Live Watch Ticker News Live
Advertisement

Trending Now

Copyright © 2022 The Ticker Company PTY LTD