Noor Capital | Mohamed Hashad’s Interview on Dubai TV – May 19, 2025

Interviewed by Dubai TV, Mohamed Hashad, Chief Strategist at Noor Capital and member of the American Association of Technical Analysts, commented on the most prominent event in global markets: the downgrade of the United States’ credit rating. This downgrade, closely linked to rising U.S. debt levels, has raised numerous questions about the potential for widespread concerns regarding global debt levels.

Hashad explained that this downgrade resulted from several factors, primarily the continuous deterioration in U.S. financial metrics, a significant rise in government debt, and interest payments surpassing those of similarly rated countries. This downgrade comes at a time when markets are anticipating President Donald Trump’s new administration’s tax plan, which could cost the U.S. Treasury nearly $1.9 trillion, adding new financial pressures.

Hashad predicted several negative repercussions from this downgrade, including an increase in borrowing costs for countries heavily reliant on the U.S. dollar. It could also lead to a decline in the U.S. stock market, similar to what occurred in 2011 and 2023. He also anticipated that investors would demand higher yields on U.S. Treasury bonds, especially long-term ones, which would put additional pressure on American markets.

In a related context, Hashad discussed the impact of the U.S. administration’s move towards tax cuts. He believes that lowering income taxes will lead to increased spending, particularly consumer spending, and could encourage private investment by reducing the tax burden on corporations. However, Hashad emphasized that the success of these policies largely depends on the government’s ability to balance growth and deficit, as well as its capacity to control spending and increase revenues.

As regards the European economic landscape, Hashad commented on European Central Bank President Christine Lagarde’s statements about the euro’s rise being an opportunity for Europe, despite some countries moving to devalue their currencies, as seen with the U.S. and China. Hashad believes Lagarde’s speech was distinctive, despite the challenges facing the European Union, and likely aimed at sending a positive signal to markets and reinforcing the Eurozone’s economic standing.