What can emerging markets expect from a Biden presidency?

In the wake of the transition of power to President Joe Biden in the United States, emerging markets around the world are closely watching for the potential impacts on their economies. The promise of stimulus packages and a shift in global dynamics have brought a mixture of hope and uncertainty to these markets. Simon Quijano-Evans, Chief Economist at Gemcorp, sheds light on the implications of Biden's presidency for emerging markets in a recent interview on CNBC Africa. Here are the key takeaways from the discussion: One of the pivotal points highlighted by Quijano-Evans is the importance of US-China relations in shaping the economic landscape for emerging markets. With China's growing influence in the global economy, the dynamic between the US and China will play a significant role in determining the trajectory of emerging market assets. The tension between the two superpowers remains a key factor to monitor. Another key aspect discussed in the interview is the resilience of Sub-Saharan African assets in the face of the COVID-19 pandemic. Quijano-Evans pointed out that despite initial skepticism, Africa has demonstrated its ability to effectively manage the crisis. This resilience has positioned Sub-Saharan African assets, including bonds and equities, as attractive investment opportunities for global investors. Moreover, the conversation delved into the central banks' dovish stance and the potential challenges posed by rising food and oil prices in 2021. Quijano-Evans emphasized the necessity for central banks to maintain accommodative monetary policies amidst the volatility in commodity prices. The spike in food prices and the uncertain outlook for oil prices further add to the complexity of the economic environment facing emerging markets. In discussing the outlook for oil prices, Quijano-Evans expressed caution regarding the current levels of oil prices, highlighting potential mismatches between demand and supply dynamics. The success of vaccine distribution and global cooperation among G20 nations will play a crucial role in shaping the future trajectory of oil prices, with implications for both oil-importing and exporting nations. As the world navigates through the challenges posed by the ongoing pandemic and economic uncertainties, the role of global leadership and cooperation becomes increasingly vital. The interview with Quijano-Evans underscores the interconnected nature of economies and the importance of collaborative efforts in addressing shared challenges. Moving forward, emerging markets will continue to closely monitor the developments under the Biden administration and adapt their strategies to navigate the evolving economic landscape.