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Trump’s new world order

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America has spoken — and emphatically. The history of its democracy is studded with “hinge” elections where voters decisively repudiate the philosophy and record of the outgoing administration and opt for something new. Every now and then, however, there is a result that goes far further and presages inordinate and tumultuous consequences not just for the nation but the world. The 2024 presidential election is one of these.

In voting Donald Trump back into the White House the electorate appears to have concluded that his record as a convicted felon, his unpredictability and his reputation for disdaining the norms of democracy matter less to them than his crisp “America First” prescriptions on the economy, national security and the world. Many of his policies may sound glib, hubristic if not foolhardy to his opponents. Indeed many of them are.

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Yet unlike in his first term when Trump took office without a clear plan and was hemmed in by seasoned public servants, this time he knows exactly what he wants to do. He will also be flanked by true believers. For the global economy, America’s allies and the post-1945 international order, this poses huge risks — and, possibly, a calamity.

It is an extraordinary resurrection which speaks to a broader fraying of the appeal of liberal democratic values across the western world. The Democrats will rue their campaign and Kamala Harris’s failure to cut through. But Trump’s victory also points to an overall malaise, to the over-reach of the left’s progressive agenda, and to voters’ questioning the very purpose of democracy if it fails to deliver for them. Europe’s centrist leaders would do well to consider these sentiments as they too face off against the populist right. 

What is in no doubt is that Trump will bestride Washington as a colossus. For months the world has been transfixed by opinion polls suggesting the race was too close to call. Yet the so-called 50-50 nation broke decisively for Trump. He gained ground on the Democrats in 48 of the 50 states in the union. The Republicans may end up controlling both houses of Congress and the White House. This will give Trump far more latitude than in his first term. He will benefit, too, from a sympathetic Supreme Court. Fears of a lurch to American autocracy may be alarmist, but the temptation for him to abuse his power will be acute.

So how to prepare for the return of “Make America Great Again” populism to the seat of world power? At home, Trump’s demoralised opponents will have to do battle in the courts if he tries to force through his more draconian proposed policies. The two most egregious are the threatened mass deportation of illegal immigrants, and a purge of government agencies. America’s institutions emerged intact — just — from Trump’s first term. This time, they will be even more sternly tested.

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Trump’s Wall Street backers also face a test. They should not overlook the darker side of his agenda. Beyond the short-term enticement of his proposed tax cuts, they should consider the long-term inflationary implications of his threatened fresh wave of tariffs and the potentially cataclysmic consequences of a trade war. Trump is obsessed not just with raising tariffs on America’s strategic competitor, China, but also penalising countries that have a trade surplus with America.

For America’s allies, there are difficult days ahead. It has long been clear that Americans are tiring of their post-1945 role in policing the world. But it will be far harder now for America’s allies to anticipate the stance of their traditional security guarantor. Trump promises to be quixotic and transactional. The networks of alliances that Joe Biden continued to nurture are less important to him than bilateral ties. Knowing this, east Asian and European allies will court him individually. But the regional alliances, not least Nato, have to be sustained. If not, the winners will surely be Russia and China. Also, a waning of the US-led alliance networks could lead to nuclear proliferation as states long under the American umbrella might deem it prudent to look to their long-term defence.

This election throws so much into the air — and Trump likes it that way. For Ukraine, the uncertainties are especially acute. Trump has insisted he will end the war, but this would surely be on Moscow’s terms. The great fear for Kyiv and Nato is that Trump strikes an overhasty deal that leaves Ukraine without security guarantees and splits Europe. Taiwan, too, will be uneasy given Trump has mused openly over whether America should defend it against China — though his aides suggest this is mere strategic ambiguity. In the Middle East, Trump claims he will bring peace but has not defined what that means, and whether it involves deploying American power alongside Israel and against Iran.

Much will depend on who Trump picks for the big national security roles. But whoever he chooses, it is clear that for the next four years at least the nature of US leadership will change. Multilateral bodies will be disdained, and multilateral treaties all but discarded. Such an approach threatens dire consequences for the green energy transition and efforts to combat global warming. 

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One possible silver lining to Trump’s vaunted unpredictability is that it will keep autocrats in Moscow and Beijing guessing too. But his election will also have given succour to authoritarian leaders around the world, many of whom he openly admires. The US may be an imperfect world leader. But there have always been certainties about its leadership, regardless of which party occupies the White House. Sadly, as the Trump world order takes shape, those certainties will be no more.

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Harris calls Trump to concede US presidential election

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Harris calls Trump to concede US presidential election

Democratic vice-president expected to speak publicly in Washington later on Wednesday

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Pensions and Protection Podcast: Why Income Protection Matters for Clients

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Pensions and Protection Podcast: Why Income Protection Matters for Clients

Join Digital Content Manager Kimberley Dondo as she speaks with Shelley Read, Senior Protection Technical Manager at Royal London, on everything income protection (IP). Shelley answers key questions: What exactly is IP? Why is it critical for financial resilience? And how can advisers ensure clients are properly covered? From navigating underwriting to understanding client needs, this episode covers practical guidance for advisers on IP and reducing the risk of unpaid claims. In association with Royal London, tune in to explore how IP can safeguard lifestyles against income loss.

And if you’d like any further resources or support to help grow your business and deliver value for your clients, visit: adviser.royallondon.com/PeoplePowered

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German chancellor Olaf Scholz sacks his finance minister

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German chancellor Olaf Scholz sacks his finance minister

Departure of Christian Lindner marks the end of the country’s unpopular coalition government

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Four cash-saving ways to stop household essentials from cleaning out your wallet

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Four cash-saving ways to stop household essentials from cleaning out your wallet

IT’S a real chore parting with hard-earned cash for everyday household essentials.

But there are ways to stop these items from cleaning out your wallet.

Four cash-saving ways to stop household essentials from cleaning out your wallet

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Four cash-saving ways to stop household essentials from cleaning out your walletCredit: Shutterstock

Here’s how to save on life’s more mundane purchases . . . 

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BULK UP: It is usually the case that buying more of an item will reduce the overall cost per unit creating savings for you. For example, a 16-pack of toilet roll usually has a lower cost per roll than when you buy a four-pack.

Get into the practice of looking at the unit cost of an item rather than the price to help compare the true value of pack sizes. You can also save five per cent by buying in bulk at Wilko.

Selected toiletries, sanitary and cleaning products are included in the offer but the amount you need to buy varies by item. In some cases you need to buy six-packs to qualify whereas others it can be eight.

READ MORE MONEY SAVING TIPS

REFILL: If you buy cleaning products that come in spray bottles, look to keep the original packaging and buy a cheaper refill when finished.

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For example, Tesco’s antibacterial cleaner refill is 75p which can be used to fill any old spray bottle you have.

SUBSCRIBE AND SAVE: You can save by signing up for repeat deliveries through Amazon.

This is also a useful way of squeezing out extra value if you’re too short on space to bulk buy. To unlock up to 15 per cent off prices of items you will need to schedule five or more deliveries or you can get ten per cent off with up to four repeat orders.

The service is available on a wide range of items including pet food and fizzy drinks, as well as household essentials.

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THE PRICE IS RIGHT: It can be worth buying more of an item when it’s on a special offer and keeping it stored away, rather than buying simply when you run out, especially if it is an item that is rarely discounted.

  • All prices on page correct at time of going to press. Deals and offers subject to availability.

Deal of the day

Sausage dog mid-wellies, £25 at The Original Factory Shop

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Sausage dog mid-wellies, £25 at The Original Factory ShopCredit: tofs.com

MAKE a splash with these sausage dog mid-wellies, down from £45 to £25 at The Original Factory Shop (tofs.com).

SAVE: £20

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Cheap treat

Holy Moly’s new range of sauces and dressings, £1.50 at Sainsbury's with a Nectar card

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Holy Moly’s new range of sauces and dressings, £1.50 at Sainsbury’s with a Nectar cardCredit: Sainsburys

TRY Holy Moly’s new range of sauces and dressings, including peanut satay and smoky chipotle. They are £1.50 at Sainsbury’s with a Nectar card, down from £2.20.

What’s new?

BLACK forest hot chocolate and frappe are available in Costa from today as part of the chain’s Christmas menu which includes new snacks and treats too.

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Top swap

Sheepskin mittens, £45 from John Lewis

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Sheepskin mittens, £45 from John LewisCredit: John Lewis
Primark mitts, £5.50

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Primark mitts, £5.50Credit: Primark

KEEP your hands toasty with these sheepskin mittens, £45 from John Lewis. Or let less cash slip through your fingers by buying the Primark mitts, £5.50.

SAVE: £39.50

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Little helper

GIVE your household reminders, or even motivation messages, with this wooden letter board, £6 from Flying Tiger.

PLAY NOW TO WIN £200

Join thousands of readers taking part in The Sun Raffle

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Join thousands of readers taking part in The Sun Raffle

JOIN thousands of readers taking part in The Sun Raffle.

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Every month we’re giving away £100 to 250 lucky readers – whether you’re saving up or just in need of some extra cash, The Sun could have you covered.

Every Sun Savers code entered equals one Raffle ticket.

The more codes you enter, the more tickets you’ll earn and the more chance you will have of winning!

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Silver Lake and Shore Capital deal creates large chain of US petcare clinics

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Silver Lake and Shore Capital deal creates large chain of US petcare clinics

Merger of Southern Veterinary and Mission Veterinary sets up group valued at $8.6bn

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The Morning Briefing: One Four Nine makes 10th acquisition; MM meets Karen Barrett

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The Morning Briefing: Phoenix Group scraps plans to sell protection business; advisers tweak processes

Good morning and welcome to your Morning Briefing for Wednesday 6 November 2024. To get this in your inbox every morning click here.


One Four Nine makes 10th acquisition

Financial advice and investment management firm One Four Nine Group has acquired Nottingham-based Castlegate Capital, marking a “crucial step” in its growth journey.

The deal is the 10th acquisition for One Four Nine Group and the first of 2024 following a significant period of focus to integrate all firms into the business fully.

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The launch in late 2023 of One Four Nine Wealth was an important moment for the evolution of the business.


MM Meets… Unbiased founder and chief executive Karen Barrett

When I enquire of Karen Barrett what she likes doing outside work, her answer is somewhat surprising: “I love knocking down walls,” writes MM editor Tom Browne.

This, it turns out, is part of a wider interest in property renovation, but her response makes a change from ‘socialising with friends’ or ‘going to the cinema’. Then again, there’s a lot about Barrett that makes her stand out.

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The founder and chief executive of Unbiased, the UK’s leading platform connecting people to financial advisers, oversees a business that works with more than 27,000 advisers and manages over £80bn in assets.


Why income protection matters for clients

Join digital content manager Kimberley Dondo as she speaks with Shelley Read, senior protection technical manager at Royal London, on everything income protection (IP).

Read answers key questions: What exactly is IP? Why is it critical for financial resilience? And how can advisers ensure clients are properly covered?

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From navigating underwriting to understanding client needs, this episode covers practical guidance for advisers on IP and reducing the risk of unpaid claims.



Quote Of The Day

While over the long-term US elections have had a minimal impact on stock markets, investors will likely see a Trump presidency as a positive for the share prices of many of America’s companies.

Lindsay James, investment strategist at Quilter Investors, comments on the news that Donald Trump has been elected as President of the US.



Stat Attack

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Families are coming together following the government’s decision to add VAT on independent school fees from 1 January next year, new research from Premium Credit’s School Fee Plan has revealed.

54%

of relatives including grandparents, aunts and uncles and siblings who currently help pay for private school fees say they have offered to increase the amount they contribute.

 36%

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say they could afford to but have not been asked.

 40%

who have grandchildren, nieces, nephews or siblings at private school but who do not currently contribute to fees say they would be willing to do so.

23%

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of private school parents receive financial help from relatives.

58%

of them say they are helped by grandparents.

34%

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said they are helped by aunts or uncles.

86%

of private school parents questioned say they will be able to continue paying fees after VAT is added.

11%

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of parents say they are considering moving jobs for higher pay.

17%

are looking to take on more work or second jobs.

12%

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Around one in eight say they will look to get their children into less expensive private schools

11%

have asked grandparents and other relatives to start helping.

14%

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have asked grandparents and other relatives to increase the amount they already give.

Source: Premium Credit



In Other News

A two-decade long freeze on the inheritance tax (IHT) allowance could cost families almost £250,000 by the end of the end of the chancellor’s tax threshold freeze, analysis from AJ Bell shows.

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The main IHT exemption, the ‘nil rate band’, has been frozen at £325,000 since 2009. Amounting to £650,000 for a married couple, assets under this threshold incur no IHT.

However, the limit last increased in 2009 and isn’t due to be lifted until April 2030, with Rachel Reeves extending the IHT threshold freeze at last week’s Budget.

Although a new exemption, the ‘residence nil rate band’ (RNRB), introduced from 2017 means a married couple can leave a combined total £1m tax free if they leave a property to their ‘direct descendants’, AJ Bell’s figures show that the overall IHT threshold would actually be higher had the main nil rate band simply been linked to inflation and the RNRB were never introduced.

The nil rate band indexed to inflation would stand at almost £555,000 by 2029/30, meaning a couple could pass on an additional £110,000 tax free. It means tax bills could be £44,000 higher per family as a result.

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But if both the nil rate band and residence nil rate band were indexed to inflation the combined total would stand at nearly £1.6m, knocking up to £234,000 off IHT bills.


Tesla and US bank stocks jump and renewables slump (Financial Times)

Brazil set to double pace of interest rate hikes amid fiscal woes (Bloomberg)

UniCredit CEO pushes merger credentials as it outperforms Commerzbank (Reuters)

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Did You See?

Advisers have expressed concerns over insurer service levels – with 28% believing they have worsened in the last two years.

The results were revealed in the Association of Mortgage Intermediaries’ latest protection report.

It found that the speed of underwriting is advisers biggest problem, with 58% raising this as an issue.

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