Preview: The World this Week
The World this Week — America voted for Trump Administration 2.0, US stocks hit record high, and the Federal Reserve slashes rates further.
Welcome to a preview of "The World this Week" (not the latest version), where we don't just focus on negative news, but give at least as much attention to solutions and reasons for hope. To get an update like this every week, sign up here.
Top good news
🗳️ The US elections went off without a hitch, no small feat for the world's most significant event. Election Day was orderly, ballots were tallied quickly, and the results were decisive. Trump secured a fair victory, Kamala Harris conceded, and President Biden promised a smooth and peaceful transition. The world's greatest democracy voted and decided on its future in an orderly manner.
📉 The Federal Reserve slashed interest rates again, in good news for the US economy that never seems to end. This continues to demonstrate the economy is powering up while inflation eases. It was commendable of the Fed to wait until after the election to announce the rate cut, successfully avoiding the perception of election interference.
Trump announces decisive victory
It wasn't just a win, it was a landslide. It is not an understatement to say Trump has made one of the most historic comebacks in U.S. Presidential history.
- The scale of Trump's victory confounded expert forecasts and opinion polls, with Trump securing a majority in every battleground state, winning over Kamala's "Blue Wall" of Michigan, Wisconsin and Pennsylvania. AP
- Trump made serious inroads with traditional Democrats, including young voters, black men, Hispanics and the working class, while holding onto his supporter base. AP
- Republicans are on track to secure a "trifecta" government, meaning they are set to control the Presidency, the Senate and likely the House, in a strong mandate from the American people that will give the Trump decisive funding power to enact his agenda from the beginning of his term. The Hill
Why did opinion polls fail to read the moment?
Unsurprisingly, traditional opinion polls leading up to the election showed bias towards Democrat strength, predicting a narrow win for Trump, where in reality he swept to a decisive victory. Private betting markets more accurately read the moment, likely because betters' money was on the line.
What are Democrats saying?
Kamala Harris said "we must respect the results of the election" but promised to "keep fighting". Biden praised the "inspiring" Harris campaign, and Bernie Sanders said "Democrats have abandoned the working class". The party is likely to do much soul-searching on its defeat.
Trump Administration 2.0
America voted decisively to give President-Elect Trump a clear mandate. Here are some of the signature policies he declared on his 2024 campaign.
- End illegal immigration: Elected on the promise to end the massive surge in illegal immigration across the US southern border, Trump will immediately enforce tough border control and move to deport anyone who broke US immigration law to enter the country.
- High tariffs: Trump has previously said he will tax all foreign-made goods sold in America at 10% and promised to levy China with 60% tariffs. The idea is that this will encourage businesses to move to America and boost domestic production and jobs.
- Peace through strength: Trump has promised to end Russia's war on Ukraine "on day one" and he will likely re-apply the campaign of "maximum pressure" on Iran which he began in his first administration. His re-election is a worst-case scenario for dictators and terrorist groups around the world.
- Energy independence: summed up by Trump's slogan "drill baby drill", the new administration will unlock the red tape that prevents US companies from extracting its massive deposits of oil and natural gas. This will push domestic fuel prices way down.
In other news...
🛫 Boeing's workers ended their seven-week strike which cost the company at least $5 billion, with the 33,000 machinists accepting a pay rise of 38%. America's largest aerospace company will now get back to business. AP
🤖 Perplexity AI is poised to close a $500 million funding round, tripling its valuation to $9 billion, during a surge in interest for AI startups, despite facing legal challenges over content usage from media companies. WSJ
🇩🇪 Germany's governing coalition collapsed, with the Chancellor dismissing the Finance Minister, resulting in calls for an early election. The decision was made in the context of Germany's economic challenges and the U.S. election, and would likely see the return of a conservative government. ABC
Brighter horizons...
📈 The US stock market hit record highs following Trump's election victory, fueled by expectations of lower taxes and deregulation. The market saw a surge in "Trump trades," causing Treasury yields to rise, Bitcoin to hit records, and the US dollar to make its strongest gains in two years. Reuters
💻 The world's most advanced chip factory will open in America, as the Taiwan-owned TSMC invests heavily in mass producing its technology on US soil, a much more secure location than its headquarters in Taiwan which remains under China's shadow.
What in the world...
🕐 The year 2024 marked an unprecedented global trend where governments in all 10 major countries tracked by ParlGov, including Japan, UK, France, and the US, faced electoral defeats. This phenomenon is the first of its kind in nearly 120 years of recorded history. FT
🖼️ A botched art heist in the Netherlands resulted in the theft of Andy Warhol screen prints, with the robbers using explosives to break into the gallery. The thieves escaped with only two of the prints because the rest didn't fit in their car, and due to the damage inflicted these artworks are now considered irreparable. Smithsonian
🐵 Over 40 monkeys escaped a research lab in South Carolina, leading officials to warn residents to secure their homes and avoid contact. Efforts to recapture the monkeys include using thermal imaging and food bait, with the primates currently playing near the facility but not yet caught. CBS
🎮 Former Ukrainian gamers have become drone pilots, using their gaming skills to deliver precise explosive strikes against Russian forces. These tech-savvy pilots armed with affordable drone weapons are showcasing a shift in military power where tech skills can be just as effective as traditional soldiering. WSJ
Dive deeper
- Politico did a profile piece on Susie Wiles, Trump's newly appointed Chief of Staff, titled "The Most Feared and Least Known Political Operative in America", an interesting read for anyone wanting insight into the new White House. 🤓
- Time Magazine has released a list of this year's "best inventions", from a transparent TV, a straw water filter, a robotic lawn mower and AI image-detection software. 🏆
- The Wall Street Journal story "Trump's win cemented it: New Media is Leaving the Old Guard Behind" showed how real conversations are becoming more important than traditional news. 🗞️ ($)
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