As election results rolled in, global and futures markets responded to the surprisingly close contest by plummeting, with the Dow dropping nearly 800 points. Follow along here for continuing updates on how the world financial markets are responding to the election of Donald Trump as 45th president of the United States.
While the U.S. election was still being decided on Tuesday night, markets in Asia took a dive during active trading as Donald Trump pulled ahead of projected-winner Hillary Clinton.
But markets in Asia bounced back this morning: An hour into trading, the Nikkei is up 6 percent, wiping out losses from yesterday. Stocks in Hong Kong and Shanghai have also recovered: Both the Hang Seng and Shanghai Composite have soared pass yesterday’s losses. (An odd sidenote: a stock in China which sounded like “Trump Wins Big” rallied while another stock which sounded like “Aunt Hillary” tumbled as votes were still being counted.)
It’s worth watching how investors in China will react to the actual Trump presidency. After all, the candidate has suggested that China’s economic relationship with the U.S. might get a lot more complicated once he takes office. During the course of his presidential campaign, Trump accused China of devaluing its currency (a claim that has been debunked) and unfairly taking manufacturing jobs away from Americans. Trump has also suggested imposing a 45 percent tariff on Chinese-made goods in order to reduce the trade deficit and bring jobs stateside, which would create a trade war between the two nations and undoubtedly affect China’s economic growth.
Reuters reports that Chinese President Xi Jinping congratulated Trump in a message earlier today, stating that he’s looking forward to working with Trump to “uphold the principles of non-conflict, non-confrontation, mutual respect, and win-win cooperation." For now, stocks in China, like those in the U.S., seem accepting of the impending Trump administration.
At the end of trading hours on Wednesday, it certainly seems that investors have digested Trump’s surprise victory in the U.S. Presidential election.
The Dow, S&P 500, and NASDAQ all rallied back from precipitous drops in the futures markets, with each closing up by at least 1 percent. The reversal was swift and intense—for the S&P the bounce back was largest since the days of the 2008 banking crisis. The Dow closed up 257 points, after diving 800 points last night in futures trading. Many analysts are attributing the market’s fast recovery to the tone of Trump’s late night acceptance speech, along with the potential benefits for Wall Street a Trump presidency could hold. Though Wall Street was expecting a Clinton win, the numbers seem to indicate that it is just as welcoming to the Trump presidency.
Asian markets open in just a few hours, and their performance tonight will either validate election night panic in emerging markets (the Nikkei plunged 5 percent, while the Hang Seng fell by 2 percent), or evaporate in the face of U.S. investor confidence.
DeVry Education Group is up 9 percent in today’s trading; Apollo Education Group, the company that owns several for-profit institutions—including the University of Phoenix—is up 7 percent; Bridgepoint Education (which was forced to forgive $24 million in student debt by the Consumer Financial Protection Bureau) up 17 percent; and Strayer Education (one of the most successful for-profit colleges) is up 12 percent.
The premise for investor confidence is that for-profit colleges—which have come under intense scrutiny in recent years by The Department of Education for fraudulent marketing, bad results, and saddling students with student-loan debt—might enjoy looser regulatory oversight once Trump becomes President. Afterall, Trump University, which shuttered in 2010, was a for-profit education company. Before Trump is sworn in next year, he will appear in court just after Thanksgiving as a witness in a class-action civil trial over alleged fraud at Trump University.
Bloombergreports that the billionaire investor Carl Icahn—a long time Trump supporter—left the president-elect’s victory party in the wee hours of the morning to bet $1 billion on the U.S. stock market.
Icahn’s take was that the 100-point drop in the S&P 500 was a temporary and irrational reaction that would soon reverse itself. And it looks like he was right, near the close of trading, the S&P was up more than 1 percent—the largest reversal for the index since the 2008 crisis.
The companies are soaring as analysts reckon that Trump will row back on the Department of Justice’s ruling this summer to phase out privately run jails. The companies could benefit still further from Trump’s plan for the mass deportation of immigrants.
And what about oil?
During his campaign, Trump has pledged to implement what he calls an “America first energy plan.” That plan calls for total energy independence achieved by undoing President Obama’s executive actions meant to curb energy production or emissions in favor of more climate-friendly policies, more exploration of shale, oil, and natural gas reserves, and exploration of “clean coal”.
Conversely, Trump has said that he would reverse the current U.S. commitment to battle climate change, including pulling out of the Paris Agreement. My colleague Robinson Meyer wrote about the potential environmental consequences of a Trump presidency here, saying:
This could shatter the international consensus on reducing greenhouse-gas emissions, similar to how the second Bush administration’s withdrawal from the Kyoto Protocol effectively ended that treaty’s functional life within the United States. It could enable other countries to abandon their commitments and emit greenhouse gases at much higher rates.
While markets have rebounded broadly, there are still big winners and big losers today.
At the conclusion of this election, concerns over the diminished power of the second amendment have seemed to dissipate. With Americans no longer concerned that a Clinton presidency would mean stricter gun control laws, the sense of urgency causing some to stock up on arms may have eased, causing a drop in major gun manufacturing stocks, such as Smith and Wesson, which declined by more than 3.75 percent around 12:20pm.
On Monday, world markets surged ahead on the projection that Democratic candidate Hillary Clinton would narrowly capture the presidency.
U.S. indicators—the Dow, the Nasdaq, and the S&P 500—rose 2 percent on forecasts predicting a Clinton victory.
But as the tides began to change last night—with Donald Trump pulling an eventual upset to become the U.S. president-elect—the market began to react. For a variety of reasons, markets don’t always respond well to uncertainty. The market shifts were somewhat predictable: the peso plunged to a record low, U.S. futures dived, Asian markets—particularly the Nikkei which dropped 5 percent by close—also dived, while gold rallied big. Analysts noted that the volatility seen last night was much greater than following the surprising result of the Brexit vote earlier this year.
This is not the outcome investors anticipated, but U.S. markets have since recovered: all three indices are surging ahead gaining nearly 1 percent by noon.
So why are the markets worried? First of all, the policy statements of Mr Trump have been both vague and erratic—on issues such as trade, foreign policy, the independence of the Federal Reserve and even the commitment to repay Treasury bonds in full. What is hard to know is how serious his policy proposals might be, and how much Congress would allow him to enact. He has more freedom in foreign policy areas than in the domestic arena. That is why emerging markets might take the greatest hit.
The GOP can either defend the United States or serve the damaged and defective man who is now its president.
There are exactly two possible explanations for the shameful performance the world witnessed on Monday, from a serving American president.
Either Donald Trump is flat-out an agent of Russian interests—maybe witting, maybe unwitting, from fear of blackmail, in hope of future deals, out of manly respect for Vladimir Putin, out of gratitude for Russia’s help during the election, out of pathetic inability to see beyond his 306 electoral votes. Whatever the exact mixture of motives might be, it doesn’t really matter.
Or he is so profoundly ignorant, insecure, and narcissistic that he did not realize that, at every step, he was advancing the line that Putin hoped he would advance, and the line that the American intelligence, defense, and law-enforcement agencies most dreaded.
The country can no longer afford to wait to ascertain why President Trump has subordinated himself to Putin—it must deal with the fact that he has.
We still do not know what hold Vladimir Putin has upon President Trump, but the whole world has now witnessed the power of its grip.
Russia helped Donald Trump into the presidency, as Robert Mueller’s indictment vividly details. Putin, in his own voice, has confirmed that he wanted Trump elected. Standing alongside his benefactor, Trump denounced the special counsel investigating the Russian intervention in the U.S. election—and even repudiated his own intelligence appointees.
This is an unprecedented situation, but not an uncontemplated one. At the 1787 convention in Philadelphia, the authors of the Constitution worried a great deal about foreign potentates corrupting the American presidency.
The president found no safe harbor on his favorite network after his controversial press conference with Russian President Vladimir Putin.
When Donald Trump stood side by side with Russian President Vladimir Putin and announced he was taking Putin’s word over that of his own intelligence community, talking heads spun on cable news. And rightfully so.
On CNN, Anderson Cooper called Trump’s performance “disgraceful.” Cooper’s face was noticeably cringing and his voice was shaking. John King called the event “the surrender summit.” Dana Bash said journalists “asked the questions of Vladimir Putin that the president of the United States failed to do.”
All par for the course from CNN. The big surprise was going on over at Fox News, where the consternation and outrage were only slightly more restrained.
The day started with Fox and Friends’ Brian Kilmeade taking issue with Trump’s pre-meeting tweet, which read: “Our relationship with Russia has NEVER been worse thanks to many years of U.S. foolishness and stupidity and now, the Rigged Witch Hunt!”
Trump said nothing new in Helsinki—but his remarks clarified and distilled into a single frame his appalling disregard for an assault on America.
Even Fox News was appalled at President Trump’s performance at his Helsinki press conference alongside Russian President Vladimir Putin. The network, usually only too happy to cheer on the president, responded somewhat differently this time to Trump’s insistence that “President Putin was extremely strong and powerful in his denial” of Russian involvement in election interference. Neil Cavuto, a Fox Business News host, called the press conference “disgusting.” Appearing on Fox, Mary Kissel of the conservative Wall Street Journal editorial board said that “President Putin scored a great propaganda victory by standing up with President Trump on that stage.” Newt Gingrich declared that Trump’s comments were “the most serious mistake of his presidency.”
“I do not see any reason why it would be” Russia, he said when asked if he believed Vladimir Putin over U.S. intelligence agencies.
In an astonishing news conference on Monday, President Trump, standing next to Vladimir Putin, rejected the overwhelming consensus among U.S. intelligence agencies that Russia interfered in the 2016 presidential election.
“They said, ‘I think it is Russia.’ I have President Putin. He just said it is not Russia,” Trump said in Helsinki after a two-hour private meeting with the Russian leader. “I will say this: I do not see any reason why it would be.”
Trump’s apparent willingness to take Putin’s word on the alleged interference coincides with a decline in U.S. relations with its closest allies around the world. Trump has criticized Canada, Mexico, and Europe on trade, NATO on defense, the U.K. government on its Brexit plan, and Germany and Sweden on immigration and crime. European capitals, especially, will have watched Monday’s meeting and subsequent news conference closely. Trump’s meeting last week with NATO allies was marked for its rancor. He called the EU a “foe” on trade, and criticized British Prime Minister Theresa May for her “soft” approach toward Brexit and suggested it may cost her a free-trade deal with the U.S. (He since walked back those remarks.)
The president’s remarks casting doubt on Russian interference in the 2016 election drew rebukes both implicit and explicit from those close to, and within, his own administration.
“Surreal.” “Extraordinary.” “Disgraceful.” Lawmakers in the U.S. and abroad appeared shell-shocked on Monday following President Trump’s press conference with his Russian counterpart, Vladimir Putin, in which Trump again refused to condemn Putin for Russia’s interference in the 2016 election, even going so far as to deny the conclusion of U.S. intelligence agencies that Russia was responsible.
“I think we have both been foolish,” Trump said, when asked by a reporter whether he would hold Russia accountable “at all, for anything in particular.”
“We should have had this dialogue a long time ago, before I got to office,” Trump continued. “And I think we are all to blame.” Asked later whether he would denounce Russian interference and ask Putin to never do it again, Trump said he didn’t “see any reason why it would be Russia” that interfered, and began discussing the Democratic National Committee server that, according to the Justice Department, was hacked by Russian intelligence officers in 2016. “I really want to see the server,” Trump said, appearing to cast doubt on his administration’s conclusions. (The FBI obtained copies of the DNC server from the private firm hired to investigate the hack).
The comedian’s new Showtime series should be shocking, but its wildest stunts only confirm how trollish U.S. politics has become.
When Sacha Baron Cohen emerged as a comedy force in the late ’90s, the quality that powered his appeal was his shamelessness. Whether in character as the clueless white-boy rapper Ali G, the bigoted Kazakh journalist Borat, or the outrageous fashion reporter Bruno, Cohen delighted in asking questions far outside the realm of politeness and in tormenting the subjects (celebrity and non-celebrity alike) of his awkward mockumentary sketches. Sometimes, he’d dig deep enough to reveal the hidden prejudice or cynicism of whatever politician, etiquette coach, or random passer-by he was interviewing on camera.
When Cohen’s Da Ali G Show launched in 2000 in the UK, his brazenness was still exciting and novel to viewers. Who Is America?, which premiered July 15 on Showtime, is the comedian’s first TV series since Da Ali G Show went off the air in 2004, and it’s superficially similar. Though Cohen plays all-new characters, he’s pulling the same stunts, interviewing people (including politicians) under false pretenses and trying to goad them into saying something ridiculous (or at least nodding along in polite agreement as he does). But in the intervening years, shamelessness has become commonplace. The ongoing discourse in the United States, day in and day out, revolves around the dissolution of our political norms, and the best Cohen can do in his new show is loudly point that out.
A major new study questions the common wisdom about how we should choose our careers.
Carol Dweck, a psychology professor at Stanford University, remembers asking an undergraduate seminar recently, “How many of you are waiting to find your passion?”
“Almost all of them raised their hand and got dreamy looks in their eyes,” she told me. They talked about it “like a tidal wave would sweep over them,” he said. Sploosh. Huzzah! It’s accounting!
Would they have unlimited motivation for their passion? They nodded solemnly.
“I hate to burst your balloon,” she said, “but it doesn’t usually happen that way.”
What Dweck asked her students is a common refrain in American society. The term “Follow your passion” has increased ninefold in English books since 1990. “Find something you love to do and you’ll never have to work a day in your life” is another college-counseling standby of unknown provenance.
Come Inside My Mind, airing on HBO Monday night, is a thoughtful and wistful portrait of an elusive subject.
“Ladies and gentlemen, it’s time to pump neurons,” Robin Williams announces in voiceover, over a black screen. “We are about to enter the domain of the human mind.” In the two hours that follow, the director Marina Zenovich tackles one of the most explosively cerebral subjects in comedy.Williams was someone whose creative energy was so vast that it seemed to overwhelm his body in performance, his limbs jerking and his face contorting as they tried to keep pace with his frantic, restless brain.
Robin Williams: Come Inside My Mind, which airs on HBO Monday night, ticks all the boxes ofa standard biography, charting Williams’s childhood, his early days in improv, his quick and destabilizing success with Mork & Mindy, and his path into film acting. Zenovich’s primary curiosity, though, seems to involve the mechanics of Williams’s genius. She layers scenes of his standup shows and old photographs on top of interviews with Williams’s family, friends, and peers. “In my head, my first sight of him was that he could fly, because of the energy,” David Letterman says. “All I could reallydo was hang onto the microphone for dear life, and here was a guy who could levitate.” But Williams’s manic onstage energy had a flip side, as Zenovich explores: addictions to drugs, alcohol, and affirmation; a particular discomfort when he wasn’t performing; and a profound fear of failure and abandonment, even at the height of his success.