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tv   Street Signs  CNBC  November 9, 2020 4:00am-5:00am EST

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own boss... >> our families think we're all nuts. [cheers and applause] >> than in your garage. i knew bernard was crazy when i hired him. now i'm convinced of it. >> [laughs] [engines revving] [cheers and applause] good morning welcome to "street signs." these are your headlines markets welcome president-elect joe biden's victory with the stoxx 600 rallying and u.s. futures signaling a higher open. as the senate race indicates the he may not have the mandate. >> i pledge to be a president who seeks not to divide, but unify. who doesn't see red states and blue state, only sees the united
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states >> biden prepares executive orders to undue a slew of orders and as president trump challenges the vote. and boris johnson amongst the first to congratulate mr. biden, while other leaders prepare to advance relations and biden prepares to name a covid-19 task force as infections hit record daily levels while mark meadows tests positive joe biden has called for unity the win means that donald trump becomes the first one term president since george bush sr. in 1993. after four days of intense counting, biden was named the
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projected win winner in pennsylvania and nevada. he has so far claimed over 75 million votes, that is the most by any presidential candidate in history. biden outlined the key issues his administration will face in the short term >> what is our mandate i believe it is this america has called upon us to marshal the forces of decency, of fairness and science and hope and the great battles of our time the battle to control the virus, the battle to build prosperity, the battle to secure your family's health care, the battle to achieve racial justice and root out systemic racist in this country. >> and kamala harris is the first woman to hold the office of vice president. harris says voters have welcomed in a new dawn. >> congressman john lewis before
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his passing wrote democracy is not a state, it is an act. and what he meant was that america's democracy is not guaranteed it is only as strong as our willingness to fight for it. when our very democracy was on the ballot in this election, with the very soul of america at stake, and the world watching, you ushered in a new day for america. >> but president trump has so far refused to con seed the race, repeatedly claiming that illegal votes stole the election trump's campaign has filed lawsuits in a number of closely fought states in a bid to overturn the results in a statement saturday the u.s. leader claimed that the election is, quote, far from over so even though the incumbent
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president is claiming that the election is far from over, all signs are pointing to president-elect biden about taking on as soon as january so how are markets reacting? a lot of green on the board for the stoxx 600, after a lackluster performance on friday we did have a strong week for ball street at a hole with the s&p and dow up 7%, nasdaq ending up 9& for the week alone last week so some of that optimism has transpired in the asian and european session but let's get into the individual markets and flush out more detail. the uchlts k foftse 100, up abo points and a lot of the housing stocks in this index are doing quite
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well beating some of the profit forecasts there. so giving a bit of life. and dax up 1.6%, 200 points higher we had strong german export data that is helping some of the trade or yechbtsed sectors within the german basket i'm referring to the auto stocks and tech stocks as well. and cac also a strong open for the italian index. but let's break it down in more detail you can see every sector in europe is trading in the green today. so a lot of positivity on the board. travel and leisure at the top, perhaps pricing in the possibility of a vaccination as soon as q1 of next year. basic resourcesle up lup 2.2 p%.
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and tech also up the german chip maker giving life to that sector now, let's take a look at how u.s. futures are fairing as we head into today's session now that it is confirmed that joe biden is the president-elect, here you can see that the s&p, dow and nasdaq all pointed to open up in positive territory the dow up more than 300, nasdaq also tech heavy stocks seen opening up in positive territory yet again. so continuing with that momentum that we had from last week as we get to the u.s. session in a couple hours time. now, chinese state media has welcomed joe biden's victory expressing optimism about reconciliation between the two world powers the global times urged the biden
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team to work as 240r rowthorougt can. >> you get a sense that while china is expecting jared kushner -- joe biden to maintain a stuff stan tough stance, but this is a chance to get u.s./china relations back on track and it offers breathing room for the tense relationship and with biden expected to take a more scientific approach to the pandemic, it will be harder to continue the blame game with china, also hope with biden looking to rejoin the paris agreement on climate change that it may create an area that the u.s. and china will no longer compete on while he is wildly expected to be less confrontational, but state media does acknowledge that the u.s. is unlikely to ease pressure on china when it
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co comes to the sort of broader trade issues and the existing tariffs. but still businesses have welcomed the outcome and also cheering strong day it out of china which showed that exports continue to grow in oblgctober their fastest pace in 19 months. suggesting that exports have been a little bit more resilient in the face of the slowing global demand. and so this saw the trade surplus jump to $58.4 billion from $37 billion in september. and so it tells a lot about the resilience of the chinese economy. domestic demand is holding up well and also consumption is starting to pick back up. back to you. and speaking much chiof chis
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announce the restrictions as their number one concern this was conducted before the election and so now we've spent a good part of the last four years talking about the u.s./china trade war. what does a biden administration mean for u.s./china relations? >> well, as you mentioned, the biden administration may stay tough on china on a number of issues including hong kong and i think that there is bipartisan part for being tough on china in the u.s. and so things like technology rivalry between u.s. and china will remain, so we don't really expect any major changes on tech restrictions i think biden will continue to try to attract more jobs back to the u.s. as well but that said, the biden administration will likely be more of a rules based
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multilateral kind of approach so there could be more channels for discussion as you mentioned. maybe also they would focus less on numeric import structures and more on structural issues such as leveling playing fields in china. and probably incorporation and communication on issues such as climate change and pandemic controls as well so it will be a comprehensive approach in the longer term, i think challenges will remain, but in the short term, i do agree with the market that the uncertainty, the risk of trade war escalation will decline next year >> and you mentioned that you're expecting that the biden administration to stay tough on china, but is there any possibility that some of the tariffs get repealed by the
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biden administration or are the tariffs here to stay >> i think for the time being the tariffs probably are here to stay i don't really expect the biden administration to spend the initial few months focusing on u.s./china relations, more probably about pandemic control and reviving the u.s. economy. both sides may want to really negotiate a trade deal, but that will take some time. so for the time being, we don't expect any repeal of the tariffs in 2021. >> switching to china economics, we had trade data showing very strong resilience in china export, growing at the fastest pace in 19 months, smashing market expectations of where it would come in. is it fair to say that china is now benefiting from having dealt with covid earlier on in the year and that in a relatively positioned to the rest of the world, china is actually in a better position?
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>> yes, absolutely i think that china was hit hard. after the situation was more or less under control, then the production chain became, you know, coming back online so there is resilience and of course there is also a lot of production in china. so it has the complete -- in some of the area, it is resilient, facial masks and other areas are driving the exports. but i think that global demand has recovered somewhat as activities normalize so china's exports in traditional areas has also started to recover of course now the risk as europe is entering a new period of lockdowns, so there is a bit of
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a down side risk to exports in the next few months. >> and speaking of outside fiscal stimulus, you mentioned the possible european slowdown to come with the even you suing lockdowns. but what about come january, there is a runoff for the senate in the u.s still possibility that the senate could turn blue what impact could that have on the rest of the world and specifically china in the fiscal stimulus out of the u.s. is larger >> yeah, that is a great question i think that the fiscal stimulus in the u.s. really depends on whether the congress is controlled bring one party with the president. if a blue wave actually materialized, we expect $1.5 trillion of stimulus and that is huge
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and china's growth in that case would be above 8% in our expectation. if biden is faced with a split congress, there is still going to be a stimulus, but smaller. maybe half a trillion of u.s. dollars. and u.s. growth and global growth still would recover next year in that case, china's growth will be mainly led by domestic consumption, but also robust exports. so in that case we expect 7.5% growth so either way i think china's growth recovery will continue next year. >> china only recently unveiled their 2035 growth plan and their target is to double the economy by that time frame that equates to an average i believe economists are averaging about 4 pp.7 growth. is that achievable >> the been officially set president xi mentioned that some people proposed it and they will
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leave to the executive branch to set the target so it is a little unclear whether that is the total size right now 100 trillion rmb so to achieve 200 drill i don't think by 2025, that only means a nominal growth and that achievable but real times i think would be challenging. but i think the government is focusing more on sustainability, as well as, you know, quality and structure of growth. so i think that they will set a target that, you know, much more modest than previously >> thank you for your thoughts tao, we'll leave it there. >> thank you
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and also coming up on cnbc this week, we'll bring you more interviews from the ubs european conference including nile ferguson, and as well as the boston fed chair so stay tuned for those interviews also head to our website to find out why the china trade tensions won't go away under a biden administration and coming up on the show, after four tumultuous years of president trump, european leaders congratulate joe biden on his leelection victory
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trump administration bud biden adminisatration. trump administration
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welcome back to the show president-elect joe biden is preparing a draft of executive orders to begin undoing some of the trump administration's key policies during the campaign, biden promised to rejoin the paris climate agreement and he hopes to scrap the plan against muslim consumes and also support
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d.r.e.a.m.ers. he looked to rebuild trust across party lines. >> all those of you who voted for trump administration, i understand the disappointment tonight. i've lost a couple times myself. but now let's give each other a chance it is time to put away the harsh rhetoric, lower the temperature, see each other again, listen to each other again >> european leaders have largely acknowledged joe biden's victory in the elections boris johnson was amongst the first heads of state to congratulate the president-elect. ecb president christine lagarde wished all the best to the u.s. presidential team to tackle the challenges ahead and also europe will continue to engage the u.s. on international trade. and speaking to cnbc earlier this morning, the former italian
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prime minister says that this opens the door to a new stronger tran atlantic partnership >> never had such a crisis like the one we are experiencing without a trans-atlantic dialogue so we lack that kind of a sponsor solutions that we had in previous crises. so i think now that there is room to work and i hope biden -- president biden and u.n. leaders will meet as soon as possible. >> and we've heard from multiple leaders. boris johnson was one of the first to congratulate the president-elect. but is the feeling now one of relief and let's not forget that president trump was hanging tariffs over the continent for
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the last couple of years are they happy to see the back of him at this point >> absolutely. that is very much the feeling across the european union. and we saw that in the reactions that we got from the different leaders over the weekend normally welcoming this result in the united states and in fact in different conversations that i've had with different european officials over the last four weeks about this u.s. election, they all mentioned to me that biden victory would be more beneficial for the european union and they all mentioned the question of style and the way that president trump tweets about critical subject areas and how european officials have struggled to deal with that. so it is a question about style of politics, the way president trump does politics, that this result is welcome across the european capitals, but also a question when content and we heard from president-elect biden stating that he wants the u.s.
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to return to the paris climate deal, that the expectation that the u.s. will return to the multilateral trade table and those are very much the policy r50ir i priorities of the european union. and we've heard them talking about a renewed partnership. so let's take a look at some of the remarks over the weekend stating the policy priorities going forward. >> together we will address pressing global challenges the corona pandemic and its economic consequence, climate change and the loss of bio diversity, the necessary rule book for the difficultal economy and society. global security. and the reform of the rules based multi lateral system i look forward to driving this global agenda together with the
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next president of the united states joe biden >> so evch the reality is that don't expect things to change overnight and they also expect of course that president-elect biden will keep fighting for the interests of the united states and so the expectation for instance when it comes to digital taxation is that those conversations, they won't find a solution very quickly, but for the time being, this is a very welcomed result by the european leaders. >> and interesting because there wasn't a lot of conversation about foreign policy or what potential biden administration could mean for foreign policy in any of the presidential debates. now on the to charlotte for the view from chance mr. macron started off on a good foot and their attempt to build
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some form of relationship with president trump. and a trump impressed by the bastille day performance and over the last couple years, then things really deteriorated. >> that's right. it started with president macron to charm donald trump, his first guest of honor for bastille deal trying to keep them within the paris climate agreement, the iran nuclear deal agreement, and of course all the awkward handshakes and frosty joint conferences. so all these different work. and one of the very sore points in this relationship was a digital tax that france put in place on tech companies. that was a big point of discord between the two countries. so now on top of that, you have the sort of tariffs in the
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airbus, boeing subsidies dispute allowing the u.s. to put tariff s on some goods, in particular 25% trips on french wine and that was badly received in paris. so now there is a hope that they can reset their relation shshirp the paris mayor tweeting welcome back america and macron more neutral, just congratulating them and saying we have a lot to come to overcome the challenges and let's work together. and we heard from several voices in the french government saying that let us have no illusion that we will not change but there will be a less aggressive attitude from the u.s. and that is really the heart of the issue here is that the agreements
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still remain in particular as they want the european union to remain more independent, but the way to discuss will be different and there will be a more constructive relationship. and some key elements for example, they see some of the elements will help in having the conversation across the issues and we know the relationship with boris johnson will not be warm, angela merkel being on her way out, president macron hoping to present himself as a key partner for the u.s. and finally, good news because a lot of the populist parties in france have lost a champion with donald trump been voting out and so that is good news for president macron going ahead >> definitely another person there angela merkel in the
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defeat of populism and what that means for the french elections thank you to you both. stay with us, because coming up, germany hopes to forge a trans-atlantic rye set with treh the incoming biden adminisatration, but easier said than done.
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quell cowelcome to street s. markets welcome president-elect joe biden's victory with the stoxx 600 rallies and u.s. futures signaling a higher open as the senate race indicates that the incoming president may not have an absolute mandate >> i pledge to be a president who seeks not to divide but unify. who doesn't see red states and blue states, only sees the united states.
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biden prepares executive orders to undue a slew of key trump policies as the incumbent leader refuses to concede and challenges the votes world leaders welcome the vote with boris johnson amongst the first to congratulate mr. biden while other european leaders prefer to advance trans-atlantic relations and biden will name a covid task force while mark meadows tests positive welcome to the show. let's just take a look at how european markets are fairing you can see that all of the european indices are trading in the green territory. ftse 100 just shy of 6,000 and we're seeing a bit of a boost from the housing stocks.
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as well as a bet of optimism being expressed about yet again the possibility of getting a brexit deal over the line before the end of the year. as for the german index, that i also up. and autos are performing quite well today and also icac in france up about 1.5% and the italian index also having a nice rebound today. so good day for european markets. cyclicals are very much in the lead and switching to currencies, you can see that here yet again is a picture of dollar weakness we had some of that transpire toward the end of last week, that is continuing today the euro is just shy of 119,
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about 118.80 is the handle. the dollar is firmer versus the yen. but crucially we are to the down side and we have jumped a good three points in the last couple sessions and what about u.s. futures? after the stellar week last week, the u.s. indices had their best week since april. and today the picture is still positive we have the s&p pointing to open 46 points higher, so just shy of 47 points now. and the all-important tech in x index, also pointed to open up in positive territory. 200 points higher for the nasdaq if we open at levels angela merkel because amowa first leaders on congratulation
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joe biden. but questions remaining over the two countries trade relationship and energy policy, particularly around the crusher of the new north stream pipeline. a lot to unpack. annette, i would say that there is no love lost between angela merkel and donald trump. >> no, exactly that relationship was a very complicated one with her eye rolling in public and him not giving her the hand when she was asking for a hand shake. just to remind you of two occasions where it was very public that those two characters didn't work well together. but with joe biden, this is different. angela merkel knows him from the time where he served under
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barack obama and so there is a hope that there will be a big revival of the trance application relati trans-atlantic relationships and so already kaurling for a new deal offering america a new reset of the reflgs ship and for example, also stugting that they could work together to find a common approach how to deal with china. for example, but also a common approach when it comes to energy politics the kcontentious issues like defense spending will stay on the table and also a biden adminisatration will not be in favor of the gas pipeline between germany and russia, but probably the discussions will be less aggressive going forward. but that of course remain as contentious issue and also
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defense spending very much so as well trump was threatening to withdraw 30% of all soldiers here on the ground in germany. that is crucial for some regional -- for some regions that are weak where they are stationed. so that will be one big question, whether joe biden will u-turn on that decision and whether he will stick on that and pult more pressure on germay to spend more on defense >> so many different and thes to consider and i'm sure we'll be talking about it in the coming months annette, thank you very much and let's get out to thomas klein, vice president of the bett germ german marshall fund do you also see it as an opportunity to reset the
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trans-atlantic relationship? >> of course it is and this is an opportunity not to be squandered for this country. one will have to get into a habit of day to day collaboration on international issues again which was absent part of the time of the trump administration in many respects. and one way to do that would be to join into the effort of the biden adminisatration to tackle the corona crisis international internationally. and that would be a great opportunity to start getting back into the habit of multilateralism and to also show including to the voters in the united states that cooperation actually works better than confrontation and threats. >> let's turn to the defense side of things because one area where the u.s. actually did see some success was getting germany to commits
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to that 2% spending target for nato is that likely to persist do you think under a biden adminisatration? will their commitment to putting more into their defense spending as a part of nato actually continue with this administration >> i don't see that as a success of the trump administration. germany's commitment to spending more on defense comes from a time before trump and it will continue after trump i would have to say germany increased its defense budget drastically in spite of trump. it has become very hard to make that case in order to do favors to an unpopular president here and so donald trump being gone, the argument can be made to the public much better if you have to be elected and
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reelected, that takes one burden off of you to made the case to the public that this is in the german interests and better mgen interests is the nato interests. >> let me ask you about the prospects of trade with the new administration before germany was clearly one of the major economies who were weighed down by the prospect of more trade conflict between the united states and europe. >> that i expect to be a more difficult issue because the biden campaign during the election campaign has -- had had a very similar tone to the one that donald trump had with respect to buy american and to trade protectionism. that could be a rather c contentious point.
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the goal of the german government will be to join in with the americans on a reform of the wto as we remember the united states did not allow for the wto process to move forward. that boycott of the wto process could end. that is the opening window that is important to have a joint approach to china. so wto will be front and center for the german government. >> and germany is in a unique position where they are a nato member, but they also rely quite heavily on russian gas imports and a one big thorn on the u.s. side has been there of the pipeline how do you expect to see it playing out and is there anything that the u.s. administration can do to convince the germans not to move
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ahead with that project? >> i frankly don't see that. the poisoning of the russian opposition politician that led to his departure and treatment in germany was one such moment to reverse course. and without mentioning even the u.s. pressure, if she hasn't done it at that point, why would she do it going forward. and so one will have to see this as another one of the sticking points and it is relevance evane how the united states will deal with this going forward. i clearly don't like the project. but one will also need to start thinking of moving beyond this project, looking at energy security in a larger sense and finding new ways to also address
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the concerns of centrale and eastern europeans who also oppose this project. this will be one of those diplomatic nuts to crack that the new administration will have on its plate with the german government >> that's right. and so it won't be smooth sailing all the way. we'll leave it there thank you so much for joining us, thomas just a reminder that we are still waiting for angela merkel to get up and give a speech in reaction to the u.s. election results. you can see the podium is all set for her to give a speech and this after tweeting last night via her government spokesman her congratulations and also mentioning that their trans-atlantic friendship is indispensable if we are to deal
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where the challenges of our time and coming up, the pandemic surge continues to top the country's immediate currents and it is first on president-elect joe biden's agenda more on that after the break
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the united states has become the first country to record 10 million covid-19 cases this comes as global infections have topped the 50 million mark and meanwhile mark meadows has test the positied positive for 9 president-elect joe biden has pledged to create a task force to combat the pandemic >> our work is to get the pandemic under control monday i will name a group of leading scientists and experts as transition advisors to help take the biden/harris plan and convert it into an action blueprint that will start january 20 >> and a democratic strategist told cnbc that biden's plan for
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unity may not materialize in his first term >> this is a polarized country he made his great unity speech and he means that, he believes in this greater moral authority of the presidency and that is a great thing. but here is the truth of the matter the predictions were wrong they had predicted that it would be a throublue wave, that democ would pick up senate seat, beat congressional republicans. and it did not happen. they held their own. this is still a deeply divided nation joe biden and senator harris will have a lot of work to do to bring this country together. and i would dare say it may not happen within the next four years. >> let's get out to our next guest for a different view this is a former republican strategist howard, great to have you with us you were an aide to the late senator john mccain. and many people over the weekend have been circulating john mccain's 2008 concession speech
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mainly to draw contrast with the situation that we find ourselves in today where the consume be ie bent president is not conceding. how do you see it playing out? >> thanks for having me. it is unclear at the moment, but i think that the country moves that it is moving toward the conclusion of the election there was great celebration over the weekend when the networks declared the race for joe biden and kamala harris. so it feels as though the machinery of government is moving toward a transition but it doesn't seem as though president trump is planning on conceding and his language is very much leaning towards challenging the election results. it doesn't necessarily need a concession speech. president trump doesn't have to
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con seed t concede the race, but it would being unprecedented. and the country would benefit from the losing candidate to call for unity and to pledge support for president-elect biden. but we'll see what the days ahead have in store. >> so
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actually think that is possible given how you toxic the conversation is right now in the u.s. the country seems to be extremely polarized and there is a good chunk of the electorate who are believing the disinformation putting out by the incumbent president that the election was stolen from him >> yeah, i think unity might be too much to ask for. compromise might be the best we
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can hope for and there is still i think a critical period here that we'll go through in the next several weeks where the president is continuing to challenge the election results and unless there is some real evidence that there is some sort of fraud that can be exposed, there really isn't much there and it seems at this stage unlikely that there would be a great up rising to support that. that being said, we don't know how the next few weeks will play out. and there is an important distinction of the transition and whether or not the president will advise the administration to cooperate in that transition. take might s that might set the tone early on but look, i think that the president-elect put the right words out there to start a process of healing, of some unity. we do have as i mentioned before a large challenge in defeating this pandemic and americans are resilient and do come together
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with a large challenge so we'll see what the days ahead have in store. but the environment of the election and the last several years will certainly made it difficult for any type of unity to prevail >> all right, thank you very much for taking the time to chat with us, howard. interesting to here your perspective. and for more on today's market reaction on biden's win, head to but let's take a look at the u.s. furthers as we head towards the u.s. open. you can see that the three indices are pointed up to open in the green, s&p up about 50, dow up 370, nasdaq just shy of 200. last week was a stellar week for wall street, the best week for u.s. indicessince april and it looks like the momentum will continue a lot of questions about how the
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senate runoff race in georgia will play out and whether that will allow for the blue wave to come into fruition but for the time being, the market reaction has been quite positive and european equities as well. we're seeing a bit of a boost this morning particularly in some of the cyclical sectors stoxx 600 up about 1.4%, 370 points higher on the day today so all eyes on that u.s. open. and now that joe biden has formally been elected. that is it for our show today. "worldwide exchange" is coming up next.
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♪ it is 5:00 a.m. in wilmington, delaware top five at 5. stocks looking to add to last week's big gains as the markets look to president-elect joe biden's priorities and policies we dig into what matters to the markets and your money. a time to heal in america. biden making his first comments over the weekend doing his best to reach across the political isle reaction from washington coming up. president trump, though, still defiant refusing to concede the election


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