US riot: what the markets show
RATIFICATION: CONGRESS CERTIFIES BIDEN WIN AFTER TENSE STANDOFF
When rioters took over the US Capitol to stop congress certifying Joe Biden’s presidential win, many people wondered what the impact on the world markets would be. The answer: not much.
Prof Jannie Rossouw, interim head of the Wits Business School, says it is difficult to make a prediction for SA in particular, as this is unchartered territory.
Bloomberg said a consultancy producing daily commentary chose not to publish any analysis for the first time since 9/11. The news that Georgia had handed the Senate to the Democrats was greeted by a fall in volatility and a rally for the S&P 500.
According to Bloomberg, stocks ended higher for the day.
The recovery for banks was the most dramatic, with banks outstripping the rest of the S&P 500 by more than 30% in three months, gaining lost ground, in relative terms, since March. Banking and financial stocks also saw sharp recoveries worldwide.
One woman dies as Trump supporters storm Capitol building in unprecedented protest action.
Congress formally certified Joe Biden as the next US president yesterday, dealing a hammer blow to Donald Trump whose supporters stormed the Capitol hours earlier, triggering unprecedented scenes of mayhem in the seat of American democracy.
Lawmakers in the Senate and House of Representatives successfully beat back Republican efforts to deny Biden the electoral votes needed to win, prompting loud cheers when the certification was announced.
The affirmation of Biden’s 306232 victory over Trump in November essentially closes the door on the unparalleled and deeply controversial effort by Trump and his loyalists to overturn the results of the 2020 election.
The president immediately released a statement pledging an “orderly transition” but suggesting he would remain in front-line politics, amid speculation that he may run again in 2024.
“Even though I totally disagree with the outcome of the election, and the facts bear me out, nevertheless there will be an orderly transition on 20 January,” he said.
“I have always said we would continue our fight to ensure that only legal votes were counted. While this represents the end of the greatest first term in presidential history, it’s only the beginning of our fight to Make America Great Again!”
The certification came hours after a mob breached the US Capitol and sent lawmakers scrambling for safety. They were able to return hours later, shaken but determined to complete the task.
Egged on in an extraordinary rally across town by an aggrieved Trump, a flag-waving mob had broken down barricades outside the Capitol and swarmed inside, rampaging through offices and onto the usually solemn legislative floors.
Security forces fired teargas in a four-hour operation to clear the Capitol. Police said that one woman, reportedly a female Trump partisan from southern California, was shot and killed and that three other people died in the area in circumstances that were unclear.
One Trump backer in jeans and a baseball cap was pictured propping a leg up on House Speaker Nancy Pelosi’s desk, as throngs climbed onto risers set up for Biden’s inauguration.
Another held a banner that read: “We the people will bring DC to its knees/ We have the power.”
Biden called the violence an “insurrection” and demanded that Trump immediately go on national television to tell the rioters to stand down.
“Our democracy’s under unprecedented assault,” Biden said in his home state of Delaware.
“This is not dissent. It’s disorder. It’s chaos. It borders on sedition. And it must end now.”
Trump later released a video in which he called on the mob to leave but repeated his unfounded claims of election fraud.
“We have to have peace. So go home. We love you – you’re very special,” he said.
In a significant new crackdown, social media companies pulled down the video on charges it aggravated violence and Twitter temporarily suspended his account, warning the tweet-loving tycoon of a permanent ban if he does not conform to rules.
The chaos at the Capitol came a day after Biden enjoyed a new triumph, with his Democrats projected to win two Senate seats in runoffs in Georgia – handing the party full control of Congress and dramatically increasing Biden’s ability to pass legislation, starting with new Covid-19 relief.
For more than two centuries, the joint session of Congress has been a quiet, ceremonial event that formally certifies the election winner.
But Trump urged members of his Republican Party to dispute the outcome.