US Post Election Analysis

Biden is declared the winner – although Trump hasn’t conceded; US Covid cases continue to spike

• While the Senate makeup has not yet been finalized, it is anticipated that it will remain in Republican control, meaning there will be a split government between Democrats and Republicans.
• The U.S. witnessed historic election turnout, with nearly 160 million votes cast. Though the results show that the American public remains highly divided on key issues.
• Most major foreign leaders recognize a Biden win, but President Trump has refused to concede, thus delaying the official transition. This may in turn impede the nation’s ability to more aggressively deal with the spike in Covid-19 cases.
• There is concern that without a smooth transition, and Trump’s purging of top administration officials, the government is unprepared for potential crises before Joe Biden is sworn in January 20, 2021.
• The U.S. stock market has rallied as it became clearer that Joe Biden would become the President, and a Covid-19 vaccine may be available in the near-term.
• The polarized nature of the American people will require businesses to navigate social issues and political engagement carefully and thoughtfully.
• Due to a likely split government, we anticipate seeing only a modest government economic stimulus program – further making a rapid economic recovery from the pandemic more challenging.