Reuters World News - Biden’s shock decision and Kamala Harris’ race for the White House

Episode Date: July 22, 2024

Following US President Joe Biden’s announcement that he was quitting the race for the White House, Vice President Kamala Harris is wasting no time launching her bid for the presidency. In this episode of the Reuters World News podcast we take a look at international and US reaction to Biden’s decision and what Kamala Harris will face as she seeks to nail down the nomination.    Sign up for the Reuters Econ World newsletter here. Listen to the Reuters Econ World podcast here. Recommended read here.  Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt out of targeted advertising. Learn more about your ad choices. Visit megaphone.fm/adchoices

Today, President Biden bows to pressure to end his re-election campaign. The challenges Kamala Harris will face as she moves ahead with her White House bid. And what the decision means for Republicans and for international markets. It's Monday, July 22nd. This is Reuters World News, bringing you everything you need to know from the front lines in just 10 minutes every weekday. I'm Tara Oaks in Liverpool. The United States of Joe Biden The nature of Joe Biden

The world reacting to the news that U.S. President Joe Biden is pulling out of the race for the White House. Biden's decision to abandon his presidential run dramatically reshapes a race that has already seen its share of shocking developments.

Biden, who said he would address the nation this week, has not been seen in public since testing positive for COVID-19. I called up our White House correspondent Jeff Mason late last night to get his take. Hey, Jeff. Hi there. Busy Sunday, huh? You can say that again, yes.

So what do we know so far? So it's a monumental seismic decision. I mean, I could throw out a whole bunch of adjectives, certainly historic, and it changes the race entirely because instead of having an 80-1-year-old, beloved Democrat at the top of the ticket, who faced a lot of calls over the last three weeks to step aside because of his port of bait performance against Donald Trump. There will now be potentially the first black woman if Kamala Harris is able to consolidate support within the Democratic

Party or someone else. And that decision is being made in a very, very short time line. What do we know at this point about how he came to this decision? I reported along with some colleagues on Thursday of last week that he was soul-searching and taking calls to drop out seriously. So it appears as though he continued with that soul-searching process over the last few days. And people like Senator Schumer and former Speaker Pelosi have been showing him polling and discussing that with him. So no doubt that played a big role in his final decision. This must have been a very, very difficult decision for President Biden. The big question, though, of course, going forward is, does this decision put Democrats in a better place to hold on to

the White House? That's the gamble that Biden took today, and he did it on behalf of his party. That's what he said. We'll see if it pays off. World leaders have paid tribute to Biden following his announcement. In Australia, Prime Minister Anthony Albanese had this to say. President Biden deserves today, I think, to be recognized for once again not putting him himself forward first, but giving his first consideration to being what he believes is in the interest of the United States of America, as he has done his whole public life. Ukrainian President Volodymy Zelenskyy took to X to share his thoughts, thanking Biden

for his unwavering support for Ukraine's fight for freedom. And in the U.S., American voters weighed in on Sunday's developments. In Biden's hometown of Scranton, Pennsylvania, he is Evan Spinner. I think he's on a great job. I think his policy has definitely led to improvements, but I think just him, just as faculty, he's not going to be up to it for the next four years. Alexis Brennan, a social worker in the battleground state of Michigan, said she was concerned about what this may mean for the White House race.

I think it's scary as someone who does not want Trump to be the president, just like throwing that uncertainty. into the mix makes me feel a little nervous. Makes me feel nervous. While in Atlanta, Tori Dorette is hoping Kamala Harris can reinvigorate the race. So any black woman that's running for President of the United States, I am supporting 100,000 percent.

So I'm praying and hoping and manifesting that people are going to get behind her and promote her so we can get her in offices like we did President Obama. But not everyone is on board with the Harris ticket. Here's Armand Dorsey, a real estate project manager, also in Atlanta. If it was in between Kamala Harris and Donald Trump, I would vote for Trump.

You know, with her is just so many great areas about her character, her personal life, you know, what she's staying firm on and what she believed in. But even if not all voters are convinced, after Biden's endorsement, it looks like any sense that there would be a messy

inter-party scramble for the throne has abated. Harris's campaign officials and allies have already made hundreds of phone calls locking in delegate support for her presidential nomination. ahead of the Democratic National Convention in August,

while seeking to block any would-be challenges. Many prominent lawmakers and key donors quickly rallied behind the vice president, as did would-be opponents, including California Governor Gavin Newsom and Transportation Secretary Pete Buttigieg. And online, Harris's social media team have been quick to launch, with the ex-handle for Biden HQ, rebranded as Carmelah H.Q, complete with a green banner referencing singer Charlie XX's hit Brat album. But the president's historic withdrawal leaves his replacement with less than four months to wage a campaign.

Turning back to you, Jeff, just a couple of hours before Biden's announcement, you had a piece out saying Harris would be a historic gamble for the Democrats if she gets a nomination. Yeah, and the reason we use the language of a historic gamble is about the United States history, When in the country's more than 200 years of being a democracy, the only time a black person has been elected president was Barack Obama, and a woman has never been elected. And so it is certainly very historical to have a black woman at the top of the ticket, if that's where Vice President Harris ends up.

And she would, of course, have to deal with some challenges that are historic and are with regard to racism and sexism. she will also have to overcome or convince people that she is overcoming some of her own missteps as a political candidate and as vice president, many of which will no doubt be held against her on the political stage by former President Trump and by Republicans, and perhaps by some Democrats as well. Donald Trump said to CNN shortly after Biden's announcement that Harris would be easier to beat than the sitting president. What does this change mean for him and the Republicans? No doubt he will turn some of his political fire against Harris

because she's the frontrunner for this job, but that it won't be quite as easy for them as having had Biden in the race because that's former President Trump was already very well versed in his arguments against President Biden. So what does Biden's exit from the race mean for markets? Kamal Crimmons is here to tell us. Investors have been betting on the possibility of a Donald Trump victory for weeks The question now is, should they stick to those trades? They've been buying up small caps and energy shares on hopes of tax cuts and regulatory easing. And they've been easing out of long-term government bonds

over concerns about inflation. So you might see some of those bets paired. Right now, though, the market seems to be taking Biden's decision in its stride. U.S. stock futures are pointing up and treasuries are up too. The bottom line, though, is this move increases uncertainty and risk as we head into August, which can traditionally be a volatile month for markets. And if you're interested in risk, do check out the latest edition of my podcast, Reuters Econ World. We take a deep dive into the risk surrounding middle income countries. You can download it on the Reuters app or wherever you listen to your podcasts. It'll be a tricky week ahead for visitors to Washington, D.C., including Israeli Prime Minister Benjamin Netanyahu.

He's under pressure at home to end the Gaza war and bring home the hostages. and under pressure from a US administration, which needs to shift attention from the upended presidential election. A meeting with Biden is scheduled for Tuesday, and he addresses Congress on Wednesday. It's his first visit to Israel's most important ally since Netanyahu was re-elected in 2022. The Israeli military Cesar intercepted a missile launched from Yemen after Israeli jets bombed the Yemeni port of Hadaa on the weekend. The port bombing was in retaliation for a Tel Aviv drone strike claimed by the Houthis last week. Bangladesh's top court has ditched most of the quotas on government jobs. The quotas triggered student-led protests which turned deadly.

More than a hundred people were killed. The Bangladeshi Attorney General has said the job should be open for candidates based on merit. And Taiwan has kicked off its annual war games. This year, the aim is to mimic actual combat and practice fending off a Chinese attack. China views Taiwan as its own territory and has staged regular exercises around the island in a show of pressure. Before we leave you, it's time for today's recommended read. It's a story about a small dairy in Tasmania, producing what they say is the first milk from cows who munch on seaweed, a diet which means they emit less damaging methane gas.

Yes, it's a cows passing gas story, and you can find a link to it in today's pod description. And for more on any of the stories from today, check out Reuters.com or the Reuters app. To never miss an episode, subscribe on your favourite podcast player. We'll be back tomorrow with our Daily Headlines show.