NOTE FROM THE CIO 10TH NOVEMBER
BY LONDON & CAPITAL INVESTMENT TEAM
WHAT HAS HAPPENED (IN CASE YOU HAVE BEEN LIVING UNDER A ROCK)?
Joe Biden has won the US presidential election.
The Senate will probably stay in Republican hands (all eyes are on Georgia for the results of the runoff in January).
Biden had an ambitious agenda with regards to major spending programmes (healthcare, clean/renewable energy, infrastructure, and education amongst others), but without a clean sweep there could be policy gridlock.
DOES THIS MEAN THAT PRESIDENT-ELECT BIDEN WILL HAVE HIS HANDS FULLY TIED?
Some key policies can still be achieved through executive action, like changing course on climate change:
- The US is set to re-join the Paris climate agreement
- Biden is to halt new drilling permits on federal land, BUT he pledged not to negatively impact US shale oil/gas production
- The importance of renewable energy will grow
- For other policies (like healthcare reform or corporate taxes), Biden will have to find compromise if Mitch McConnell (Senate majority leader) is to agree with him.