From May 2016 until recently, the US dollar had been steadily strengthening against most other currencies; under Obama’s leadership corporate profits went up 166 percent and stockholders performed relatively well under his governance.
So in the wake of this month’s divisive election result, what’s next for the US economy? What are the implications for the rest of the world? How does this affect you, the business owner? And how does it tie in with the flexible office industry?
Uncertain times for business and investment
Financial short and medium term uncertainty is indisputable. Only time will tell what effect the result will have on the world’s economy in the long term. Very little is known about Trump’s economic policy, making it difficult for businesses to forecast what will happen in the future.
What we do know is that investors around the world feared what might happen to their portfolios if Trump were to win on the 8th; they had been looking for ways to ride out a potential period of uncertainty for some time.
Speaking to CNBC, venture capitalist Bradley Tusk explains the result could have a positive impact on startups if a less intrusive regulatory regime were to be implemented. On the other hand, he suggests the new administration might also feel inclined to protect legacy industries at the expense of innovation.
On the morning of the 8th, investors rushed to safe haven assets as the dollar lost ground and the Mexican Peso plummeted; at times, European shares also looked set to tumble. The UK sterling rose 0.3 per cent higher to approximately 1.24 as investors deserted the US currency.
However, fears of a British Brexit-style shock were overturned when the markets started to recover after Trump’s presidential acceptance speech.
Why is now the time to consider executive office suites and co-working?
In times of economic and political uncertainty it’s even more important for companies to be flexible – not tied down with long term leases and unnecessary financial commitments. With Trump supporting the imposition of tariffs on imported manufactured goods, experts have predicted the result could have a negative impact on US sectors like IT that rely on revenue from abroad.
In a turbulent economic climate, executive offices are the best option for higher risk start-ups and established companies anticipating the impact that planned trade policies may have.
Executive offices offer:
· Flexible agreements- no long term contracts and commitments
· The option to scale up or down as requirements change
· Full services- IT, telephony, reception, utilities + more
Co-working space is also proving to be popular with startup enterprises as well Fortune 500 companies. A co-working space is comprised of many companies and individuals under one roof in a shared working environment. Our Senior Vice President, Daniel Soffer explains:
“Co-working is reshaping the way we work. The diverse nature of a co-working space means people can learn from others, collaborate easily and work more creatively with the best technology at their fingertips. It’s an exciting and inspiring working ecosystem to be a part of.”
To secure your next workspace speak to one of our consultants who will guide you through the whole process.
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3. Looking Beyond Silicon Valley- Forbes
4. Follow the US dollar on Twitter for regular updates