Within one of the largest asset managers in Europe, he is increasingly concerned that republican efforts to prohibit legislation supporting key industries such as clean energy could lead to the loss of its destination for investors' capital.
“For investors, the message is clear: the United States may no longer offer the reliable investment track it made a few months ago,” said Alex Bibani, a senior portfolio manager based in London at Allianz Global Investors, who oversees some $ 650 billion in assets.
The decision of the House Republicans to adopt a tax bill which will abolish numerous incentives contained in the law on the reduction of inflation of 2022 threatens to upset investment strategies based on the transition of clean energy. Even if the Senate votes to block some of the chamber's proposals, European asset managers still have to face a new level of uncertainty and volatility which could ultimately force them to turn elsewhere, said Bibani.
“The project economy, the commitments of the supply chain and capital flows can now rotate towards more stable jurisdictions like Canada or the EU, unless clarity is quickly restored,” he said.
This is the last corner dividing Europe, where the programs are discounts areanchoredand the United States, where the Trump administration has set up afull throat attackOn zero net policies. The bill agreed by the Republicans of the Chamber is even “worse than fears” for investors engaged in energy transition strategies, according to Jefferies' actions analysts.
If it is adopted by the Senate, an abrogation of IRA “would mark a net reversal in the American policy of clean technology,” said Bibani. This would inject “a significant regulatory and political risk on the market, undergoing political certainty and the financial predictability that has made the United States the world's main destination in the capital of own technology after IRA”.
The S&P 500 index dropped last week, while the 30 -year -old American treasures increased by 5.1% as markets digital news of the republican bill, in the middle estimates He will add thousands of dollars to the deficit. President Donald Trump then ended the week by injecting a new uncertainty in the markets while degenerating the tariff war with the European Union, even declaring that he is “Don't look for an agreement. “The dollar fell.
American hostility towards energy transition policies has already sent cooling through European investment circles, where these strategies are a major flow of flow. Amundi SA, the largest asset manager in Europe, said last month that he saw evidence that customers had “massively repositioned“To avoid the American market, in the midst of concerns about everything, from the lack of management to a degradation of key climate policies. The UBS AG group also said that it was aware of large flows in American stock market funds.
Tyler Christie, who previously invested in the climate and the energy transition to BlackRock Inc. as part of hisDecarbonization partnersVenture with Temasek Holdings PTE, said that concern is now that “extreme volatility in American policy is to create an uncertainty that collapses in the financial system”. At the same time, “European policy is undoubtedly more aligned and predictable than ever” because it takes up “existential challenges concerning energy, security and resources”.
The result is that asset managers, both in Europe and the United States, “begin to direct more capital to European projects where they can see that the policy is more consistent and reinforced by fundamental demand,” he said.
The “hammer” that the Republicans of the Chamber took to IRA “is only another example of the new volatility and uncertainty in American politics,” said Christie.
This story was initially presented on Fortune.com
