Implications of a Biden presidency on EMEA emerging markets: The MUFG Global Markets Podcast

This week heralds a new chapter in the world order with Joe Biden becoming the 46th U.S. president. A life-long pragmatist, he looks likely to govern as one. Stylistically, that signals greater predictability, higher consistency, with a less transactional and a more rules-based multilateral approach.

Notwithstanding the reduction in risk premia across global markets, Ehsan Khoman, Head of Emerging Markets Research (EMEA), believes that the implications of a Biden presidency for emerging markets (EM) in the EMEA region are likely to be more nuanced than they may seem at first glance. Granted, a pivot towards a mix of political realism, mutual interests and democratic principles will shape the incoming administration’s strategy towards EM EMEA, but Biden’s team will need to work under the same constraints as those under Trump – the result of which will be that changes could be more subtle and less abrupt than widely anticipated.

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