After the Federal Reserve cut interest rates by half a point on Sept. 18, President Biden called the move a “declaration of progress.” Inflation isn’t yet whipped, but victory is coming into view.
There’s some other progress that’s important for Democrats. Voters and investors are warming to Vice President Kamala Harris’s economic plan as the Democratic presidential nominee and her Republican opponent, Donald Trump, enter the home stretch of the campaign. Even better for Harris, voters seem to blame her less than Biden for the high inflation of the last three years, which sent Biden’s approval rating into an unrecoverable nose dive.
The Financial Times has now conducted two monthly polls in a row in which voters say they trust Harris more than Trump to handle the economy. When Biden was still in the race, Trump beat him handily on the economy. But Harris inched ahead of Trump in August and expanded that lead slightly in September.
That FT poll looked like an outlier back in August, but other data now shows Harris drawing even with Trump on the economy. The latest Morning Consult poll finds 46% of voters trust both Harris and Trump on the economy. On issues such as the cost of living, housing affordability, and jobs, Harris’s approval rating exceeds Biden’s by 25 percentage points or more. That’s a startling shift, given that Harris’s policies are quite similar to Biden’s and she is, after all, the incumbent.
Read more: What the 2024 campaign means for your wallet: The Yahoo Finance guide to the presidential election
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In a recent Quinnipiac poll of swing states, voters in the crucial state of Pennsylvania rate Harris higher than Trump on the economy by two points. She’s two points behind on the economy in Michigan and four points behind in Wisconsin, yet once again, she’s closing a large gap. In University of Michigan surveys, 41% say Harris would be better for the economy, while 38% say Trump would be better, and 15% think it won’t make any difference.
Finally, in monthly surveys of business executives by Oxford Economics, a Trump presidency ranks as the top geopolitical concern during the next year. Worries about the adverse effects of a Trump presidency have climbed for three months in a row, with 43% of respondents now saying another Trump presidential term would pose a significant risk to the global economy. That’s largely because of Trump’s promise to enact sweeping tariffs and deport millions of working migrants. A Harris presidency doesn’t register as a geopolitical risk, as it would, in many ways, represent a continuation of the status quo.
Democratic presidential nominee Vice President Kamala Harris listens as she joins Oprah Winfrey at Oprah’s Unite for America Live Streaming event Thursday, Sept. 19, 2024 in Farmington Hills, Mich. (AP Photo/Paul Sancya) (ASSOCIATED PRESS)
These improving views of a Harris economy and dimming views of a Trump economy aren’t happening in a vacuum. Forecasting firms such as Goldman Sachs crunched the numbers and concluded that Harris’s policies would be better for economic growth than Trump’s. Those types of analyses typically assume each candidate can get Congress to fully enact favored policies by passing legislation, which isn’t always realistic. Yet Trump’s most concerning economic policies — tariffs and deportation — are things he could do largely without congressional approval. Harris’s most disruptive policies — a higher corporate tax rate and a new wealth tax, for instance — would only be possible under a Democratic sweep of Congress and the White House, which seems unlikely.
Read more: Trump vs. Harris: 4 ways the next president could impact your bank accounts
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Harris, meanwhile, has focused heavily on pocketbook issues such as more affordable housing, healthcare, and childcare. The Morning Consult survey found such policies to be highly popular, and it also found that voters broadly associate those policies with Harris. Trump has few specific ideas for lowering everyday costs.
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None of this means Harris is cruising to victory. The race remains incredibly close, with the final electoral vote tally likely to come down to small pockets of swing voters in six or seven states. In the Michigan surveys, independent voters seem to favor Trump on the economy, which could spell trouble for Harris among the late-breaking swing voters she’ll need to win.
What Harris seems to be doing, however, is neutralizing what was once Trump’s biggest advantage. As ever, the economy is the top issue for voters, and when Biden was the Democratic candidate, Trump’s edge on the economy was beginning to look indomitable. Before Biden withdrew in July, betting markets gave Trump 66% odds of winning and Biden just 18%, with Harris and other potential Biden replacements making up most of the rest.
The same betting markets now give Harris 52% odds of winning, and Trump 47% odds. That says more about momentum than the actual likelihood of winning, but at the moment, you’d rather have Harris’s mojo than Trump’s. It’s too early for Harris to declare victory, but a declaration of progress would be fitting.
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Rick Newman is a senior columnist for Yahoo Finance. Follow him on X at @rickjnewman.
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Baker McKenzie today announced that leading project finance lawyer Matthias Schemuth has joined the Firm’s Singapore office* as a Principal and Asia Pacific Co-Head of Projects in its Finance & Projects practice, alongside Partner Jon Ornolffson in Tokyo.
Matthias joins the Firm from DLA Piper, bringing more than 20 years of experience in the energy and infrastructure sectors across Asia Pacific. He advises sponsors, developers, commercial banks, multilateral lending agencies, and export credit agencies on the structuring and financing of large-scale projects. His practice also spans international banking, structured commodity and trade finance, with a strong focus on emerging markets. Matthias has been consistently recognised by Chambers Asia Pacific and Who’s Who Legal as a leading project finance practitioner.
James Huang, Managing Principal of Baker McKenzie Wong & Leow in Singapore, said: “We are excited to welcome Matthias to our team. His expertise and proven record in managing teams will be invaluable as we expand our regional and global finance offerings for clients.”
Emmanuel Hadjidakis, Asia Pacific Chair of Baker McKenzie’s Banking & Finance Practice, commented: “Asia Pacific is seeing strong momentum in infrastructure development, energy transition investments, and cross-border project financing, much of it centred in Singapore. Having Matthias on board will further enhance our ability to help clients seize opportunities in the region’s evolving energy and infrastructure markets.”
Steven Sieker, Baker McKenzie’s Asia Chief Executive, added: “Matthias’s appointment underscores Baker McKenzie’s continued commitment to investing in exceptional talent across key markets to support our clients in navigating today’s increasingly complex business and regulatory environment.”
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Matthias said: “I’m thrilled to join Baker McKenzie and contribute to its strong growth in Asia Pacific. The Firm’s global reach and local depth provide an unparalleled platform for delivering innovative projects and financing solutions to clients in this dynamic region.”
With more than 2,700 deal practitioners in more than 40 jurisdictions, Baker McKenzie is a transactional powerhouse. The Firm excels in complex, cross-border transactions; over 65% of our deals are multijurisdictional. The teams are a hybrid of ‘local’ and ‘global’, combining money-market sophistication with local excellence. The Firm’s Banking & Finance lawyers are ranked in more jurisdictions than any other firm by Chambers.
Matthias’s hire continues the expansion of Baker McKenzie’s global team. His joining follows the recent arrivals of Carole Turcotte in Toronto; Tom Oslovar in Palo Alto; Jenny Liu in New York and Palo Alto; Helen Johnson, Mark Thompson, Nick Benson, Kevin Heverin, James Wyatt and Michal Berkner in London; Jan Schubert in Frankfurt; Todd Beauchamp and Charles Weinstein in Washington DC; Dan Ouyang, Winfield Lau, and Ke (Ronnie) Li in Beijing, Shanghai, and Hong Kong; and Alexander Stathopoulos in Singapore.
*Baker McKenzie Wong & Leow is the member firm of Baker McKenzie in Singapore
The Federal Reserve gave investors an early Christmas present by lowering interest rates by 25 basis points (i.e., 0.25%) marking its third rate cut this year. In the past, a change like this in the “long end” of the interest rate yield curve has triggered a predictable, investable pattern. Typically, this pattern would be bearish for finance stocks, particularly banks—investors would buy bank stocks when rates rose and sell them as rates fell….
Dozens of protesters from the “Religious Zionist Reservists Forum” and the “Shared Service Forum” demonstrated Saturday evening outside the home of Finance Minister Bezalel Smotrich in Kedumim.
The protesters arrived with a direct and pointed message, centered on a symbolic “draft order,” calling on Smotrich to “enlist” on behalf of the State of Israel and oppose what they termed the “sham law” being advanced by MK Boaz Bismuth and the Knesset’s haredi parties.
Among the protesters in Kedumim were the parents of Sergeant First Class (res.) Amichai Oster, who fell in battle in Gaza. Amichai grew up in Karnei Shomron and studied at the Shavei Hevron yeshiva.
Protesters held signs reading: “Smotrich, enlist for us,” along with the symbolic “draft order,” calling on him to “enlist for the sake of the State’s security and to save the people’s army – stand against the bill proposed by Bismuth and the haredim!”
Parallel demonstrations were held outside the homes of MK Ohad Tal in Efrat and MK Michal Woldiger in Givat Shmuel.
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Representatives of the “Shared Service Forum” said: “We are members of the public that contributes the most, and we came here to say: Bezalel, without enlistment there will be no victory and no security. Do not abandon our values for the sake of the coalition. The exemption law is a strategic threat, and you bear the responsibility to stop it and lead a real, fair draft plan for a country in which we are all partners. It’s in your hands.”
