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Since taking over from Joe Biden more than four weeks ago, Vice President Kamala Harris has exceeded expectations in the presidential polls, performing impressively against Donald Trump. The Democratic Party, which had been deeply divided just a month ago, has experienced a resurgence of hope.
Last week, the Democrats gathered in Chicago for their Democratic National Convention (DNC). The atmosphere at the DNC stood in stark contrast to just a month earlier when there were widespread calls for Biden to step down from the race. Now, the crowd expressed gratitude towards President Biden for his decades of public service, his personal kindness, and, though with some discomfort, his “decision” to pass the baton to Harris. In a surprise appearance on the first night of the convention, the new Democratic nominee, Kamala Harris, took the stage, expressing her desire to begin the event by honouring President Biden before he delivered his own speech.
Biden’s address, filled with emotion, conveyed a passionate endorsement of Harris. Reflecting on his career, Biden declared that choosing Harris as his Vice-President was the best decision he ever made. He emphasised her readiness for the Presidency, asserting that she will be a leader children can admire and one who will command respect on the global stage, something he claimed she already has through her role as Vice President. While Biden expressed his love for his job, he underscored that he loves his country more, marking the closest he came to explaining his decision to relinquish his own campaign. The first night of the DNC also marked the return of a familiar figure, Hillary Clinton, eight years after she made history as the first woman to be a major party’s Presidential nominee. Clinton did not hold back, delivering sharp jabs at Donald Trump and accusing him of spreading lies about Harris, much like he had done to her eight years ago.
On the second night, Barack and Michelle Obama electrified the convention with powerful, back-to-back speeches that sharply criticised Trump and urged Americans to decisively reject the Republican nominee. Of the two, it was Michelle Obama who received one of the evening’s loudest and longest ovations. She revived the theme of her husband's 2008 presidential campaign, proclaiming that "Hope is making a comeback," directly referencing Harris's candidacy. The former First Lady spoke to the optimism that Harris has inspired since becoming the Democratic nominee, describing her as the ideal leader for the nation, given her extensive experience and strong character.
On Wednesday, the penultimate day of the convention, more prominent figures took to the stage. Television legend Oprah Winfrey delivered a rousing speech, while Bill Clinton added humour with jokes at Donald Trump's expense before Tim Walz then formally accepted his nomination as the Democratic Vice-Presidential candidate. Walz, a former high school teacher and football coach turned politician, seized the moment to rally the party with an inspiring pep talk style speech, emphasising the campaign's strong stances on reproductive rights and gun control.
Last Thursday, as is tradition on the closing night of the convention, Harris concluded the Democratic National Convention with a headline speech, formally accepting the nomination as the party’s 2024 Presidential candidate. Amid growing pressure to clarify her stance on key issues, Harris delivered her most definitive statement yet on U.S. foreign policy during her 40-minute primetime address. She vowed to ensure that "America, not China, wins the competition for the 21st century", pledged unwavering support for Ukraine and NATO allies and pledged to continue her efforts to get a hostage deal and a ceasefire in place in relation to the Israel-Gaza conflict, an issue that had divided Democrats and sparked protests in Chicago during the convention.
Beyond these key remarks, Harris’s speech was light on new policy proposals. Instead, she shared the story of her mother’s journey from India to California at 19, meeting her Jamaican father, and their struggles to afford a home in the San Francisco Bay Area. This personal narrative highlighted her middle-class background and underscored her promise to pass a middle-class tax cut if elected. Harris also spoke of how witnessing injustice in her own life fuelled her passion to become a prosecutor. This cautious approach, avoiding an abundance of policy proposals, may reflect her recent experience in North Carolina, where a rally just a week before the convention did not go as planned.
Speaking at that rally, Harris outlined several economic policy proposals that have since drawn significant criticism from economists and business groups. Her suggestions included raising the corporate tax rate from 21% to 28%, implementing a federal ban on price-gouging in the food sector, boosting housing supply, and offering more tax breaks for families with children and first-time homebuyers. However, these proposals have been met with concern, as critics argue they could lead to excessive government regulation and market distortions—policies that have a history of failure.
In the context of the ongoing presidential race, I think Mr Obama got it right when he said, "this will still be a tight race in a closely divided country." As you are aware, the political and economic developments in the U.S. have significant ripple effects on global markets. With this in mind, we want to assure you that, in the months leading up to the election, we are devoting extensive effort to ensuring that the inevitable Presidential transition in the U.S. is carefully considered when managing your portfolios.
Do have a good weekend.
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