US tax reform, interest rates top advisers' concerns2017-12-27 10:00 TFPMA
US President Donald Trump’s fiscal policy, interest rates in advanced economies and US dollar movements top list of concerns for Taiwan’s financial advisers next year, when almost all expect investment gains, a JPMorgan Asset Management Taiwan Ltd (摩根資產管理) survey showed yesterday.
How the Trump administration implements tax reform constitutes the biggest factor that might sway global markets in the next six months, the local branch of the US fund house said after a semiannual poll of about 1,000 Taiwan financial advisers.
Trump last week signed the tax reform legislation, making investment in the US much more attractive by cutting federal corporate income tax from 35 percent to 21 percent.
A total of 57.27 percent of local financial advisers said they would watch closely how the issue evolves, as the US plays an important role in driving the global economy, the survey found.
The legislation is favorable to the US economy and Wall Street, with the boosts likely to extend to the Asia-Pacific region, where contract manufacturers for global brands are clustered, it said.
While investment funds flow to the US, other economies could suffer and would likely take measures to avoid a crowding-out effect, it said.
The monetary policy stances of developed countries ranked as the No. 2 concern, with 42.84 percent of advisers saying that they would monitor how monetary policy decisions would affect global financial assets, the survey found.
The US Federal Reserve earlier this month raised policy rates by 25 basis points and indicated that there is room for three more hikes at the same pace next year.
It also plans to offload US$20 billion in assets.
The Fed decisions would have influence on central banks in Europe and Japan, with local advisers saying they need to watch how it pans out, the survey found.
The movements of the US dollar against emerging market currencies also carried significant weight, with 42.2 percent of local advisers deeming it a potential risk, the survey showed.
The US dollar softened by more than 8 percent against major currencies this year to its weakest level in a decade, and investors should pay attention to whether the trend continues next year, JPMorgan director Liu Ling-chun (劉玲君) said, adding that a weak US dollar allowed emerging market currencies and their bonds to gain value.
A total of 96.8 percent of the advisers said their clients made money this year and 94.16 percent remained upbeat about the coming six months, the survey found.
Nearly 70 percent said they expect the gain to fall within 10 percent next year.
- About Us
- President Tsai pledges to make Taiwan a global smart machinery hub
- <Import Values of Taiwan Food Machinery in 2017>
- <Export Values of Taiwan Food Machinery in 2017>
- 2018 Taipei International 5-in-1 Food Show Breaks Records of Scale
- Exports break yearly, monthly records
- Taiwan Machinery Became the Manufacturing Industry Flagship in Indonesia
- US tax reform, interest rates top advisers' concerns
- Statistical News: Export Orders up 6.9% in Septembert 2017
- <Import Values of Taiwan Food Machinery in 2016>
- <Export Values of Taiwan Food Machinery in 2016>
- Vitafoods Asia 2017 Well-Poised for Successful First Run in Singapore
- Vitafoods Asia 2017 (5-6 September)-The nutraceutical event for Asia
- Vitafoods Asia 2016 (1-2 September)-The nutraceutical event for Asia
- Taiwan's eminent food Industry delivered a thousand & one flavors! Fab 5 food-expo wraps up sizzling business! A record 7,500 industry buyers served!
- <Import Values of Taiwan Food Machinery in 2015>
- <Export Values of Taiwan Food Machinery in 2015>
- Fab 5 Food - Expo Wraps up Sizzling Business a Record 7,500 International Buyers Served!
- <Import Values of Taiwan Food Machinery in 2014>
- <Export Values of Taiwan Food Machinery in 2014>
- Successful Conclusion to 2014 6-in-1 Taipei Int'l Food Expo!
- Foodtech & Pharmatech Taipe 2014 is Comimg Soon!
- Taiwanese Documentary Wins Jury Award in Houston
- US-Taiwan Spring Business Networking Event Held in New York
- 2014 Explore Asia's super 5 in 1 Food Expo in Taiwan - E-letter Issue
- Bilateral Trade Between Vietnam and Taiwan in November 2013
- TLC's Samantha Brown Impressed with Taiwan's MRT System
- Business Alliance Conference Yields Record Investment
- Hong Kong's 'Taiwan Month' to Feature Art Shows From Taiwan
- Five-in-One Food Expo Successfully Concluded in 2013
- Foodtech & Pharmatech Taipe 2013 is Around The Corner!
- WTO Global Trade Report Shows Taiwan Trade Remains Steady
- Vertical Integration in Food Industries for More Business Opportunities
- Food Industry Continues Strong Investment in Taiwan
- Pride of Taiwan's Food Machinery Industry
- Global Economic Recovery Showing a Twilight of Taiwan’s Exports
- 「Foodtech & Pharmatech Taipei 2013」Will be Held in June, 2013!
- Contact Us