Investing.com investing.com 30 Dec, 2020 19:00 am

The Biden Effect, Covid, Return to Travel and More

The Biden Effect, Covid, Return to Travel and More
The Biden Effect, Covid, Return to Travel and More: 7 Things to Watch in 2021

Antitrust War on Big Tech 2021 is set to be the year when the antitrust war on Big Tech cranks up big time.The International Air Travel Association expects the industry to lose another $40 billion next year, on top of the $120 billion this year, and only expects air travel numbers to return to 2019 levels in 2024.The Inflation Scare Watch out for the great inflation scare in spring.Central banks have promised to keep the lid firmly on interest rates, while governments are set to keep borrowing and spending high in order to ensure that viable parts of the economy don’t collapse before the health situation returns to normal Markets are forward-looking and the fact that stock markets in the U.

All the same, there’s a risk that some of the headline numbers will be enough to weaken conviction that central banks can run an ultra-loose monetary policy forever.The announcement of a new strain of Covid-19 that is more infectious – if no more dangerous – than the original version may knock some of the froth off markets between now and the new year, but 2021 is likely to start with a ‘Goldilocks’ scenario priced in – a scenario where the pandemic ebbs due to vaccine distribution and the arrival of spring, but authorities still keep the stimulus taps as wide open as possible, to prevent what the central bankers are calling ‘scarring effects.

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