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Biden withdraws: what happens next?

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The US President Joe Biden, who was expected to be the Democratic candidate in the 024 presidential elections, has announced his withdrawal from the race.

Biden, who had long been under pressure from both mega-donors and key figures within the Democratic Party to withdraw, could not continue his resistance.
Biden, 81, said in a written statement on Sunday that it had been ‘the greatest honour’ to serve, but that his withdrawal was ‘in the best interests of his party and the country’.

Not only did the list of Democratic lawmakers reiterating their call for Biden to step down grow to at least 40 before Sunday’s announcement, but staunch Biden supporters such as Senator Joe Manchin also stepped up their public calls for the 81-year-old to end his presidential campaign.

Shortly before the withdrawal, Manchin appeared on ABC’s ‘This Week’ and urged Biden to ‘pass the torch to a new generation’.

Biden endorsed Vice President Kamala Harris for the nomination. I am honoured to receive the President’s endorsement and it is my intention to seek and win this nomination,’ Harris said in a statement.

Harris must win support of Biden delegates

Biden’s candidacy was due to be formalised at the Democratic National Convention (DNC), which takes place from 19-22 August. Now, delegates who previously backed Biden will have to choose the Democratic nominee by supporting Harris or other candidates who emerge.

Dozens of senior Democrats and big names immediately praised the decision, including former President Barack Obama, Senate leader Chuck Schumer and former House Speaker Nancy Pelosi.

Former President Bill Clinton and 2016 Democratic presidential nominee Hillary Clinton said they supported Kamala Harris as the party’s nominee for the November vote and would ‘fight with everything we have to elect her’.

While Obama said he had “extraordinary confidence” that “an extraordinary candidate will emerge”, he did not explicitly endorse Harris or any other candidate.

Two major Democratic donors, LinkedIn founder Reid Hoffman and Alexander Soros, son of investor George Soros, have publicly backed Harris.

It will also be interesting to see who Amala Harris chooses as her vice-president if she becomes a candidate. California Governor Gavin Newsom, Illinois Governor JB Pritzker, Pennsylvania Governor Josh Shapiro, Arizona Senator Mark Kelly, Michigan Governor Gretchen Whitmer and Kentucky Governor Andy Beshear have all been mentioned as possible running mates.

Poll results were influential in the decision

POLITICO wrote about the behind-the-scenes process of Biden’s withdrawal.

According to the report, the president’s decision came on his fourth day of isolation at his Delaware beach house, where he was quarantined while recovering from Covid.

Biden was initially accompanied by only a small group of aides and spent the entire time away from the public.

The White House, meanwhile, gave few details of Biden’s activities, saying there were only a few briefings with top aides and a congratulatory call to European Commission President Ursula von der Leyen.

But Biden was joined this weekend by one of his closest advisers, Steve Ricchetti, who travelled to Delaware to review recent polls and reactions from Democrats who want Biden to step aside, people familiar with the matter said.

Just hours before Biden announced his withdrawal from the race, his campaign was rocked by more bad news: a new poll showed Biden down 7 points in Michigan, more than double the margin he faced in the state he should have won going into last month’s debate.

The White House was unaware of Biden’s announcement.

Biden made separate calls to Vice President Kamala Harris, Chief of Staff Jeff Zients and Campaign Manager Jen O’Malley Dillon. He then called other senior White House and campaign advisers and publicly announced his plans to withdraw.

Biden’s message on X surprised most other White House and campaign staff, who had received no indication that he was reconsidering his candidacy.

Sources also told ABC that Biden’s own staff did not know the president was stepping down until a minute before he made his decision public on Sunday, and some members of the staff were blindsided by the decision.

Zients is scheduled to hold a conference call with the entire White House staff on Monday morning, as well as a call with executive branch officials.

Did the Obama family force Biden to withdraw?

Biden’s youngest brother, Frank Biden, told ABC that his brother’s decision to withdraw was a “close call” made after several meetings between several members of the Biden family over the past week, led by “first lady” Jill Biden, and that the family has always supported the president doing what he thinks is best for the country.

“The bottom line is this: this is about his overall health and vitality. It’s not an attachment thing. He’s a man of honour, it annoys him that he shuffles his feet when he walks,” he said.

Many people close to Den say he has a lot of resentment towards former President Obama.

According to the IOS news, many of Obama’s advisers pressured Biden not to run in 2016.

‘Obama already used this leverage in 2016 when his team lobbied him not to run,’ said a former Biden aide. ‘You can’t do that more than once,’ he said.

Obama’s strongest connection is with White House Chief of Staff Jeff Zients, who is influential but not as personally close to Biden as other top aides.

There is also tension between Michelle Obama and the Biden family over the Bidens’ treatment of Kathleen Buhle, the former wife of Hunter Biden and a close friend of Michelle Obama. It has been said that the book Buhle wrote after her divorce from Biden following a contentious process was not welcomed by the Bidens.

Obama a ‘puppet master’, according to Biden

Sources who spoke to the New York Times also claimed that Biden had become “angry” with party leaders, particularly former President Barack Obama, and that Obama was involved in discussions about the 81-year-old’s withdrawal from the Democratic nomination.

According to the NYT report, Biden sees Obama as a “behind-the-scenes puppet master” when it comes to speeches about the president’s campaign.

Sources close to Biden, who requested anonymity, said the president ‘has been in politics long enough to assume that the media leaks in recent days were coordinated to increase pressure on him to step aside’.

According to a report in the Washington Post, Obama told allies on 19 July that Joe Biden should reconsider his re-election bid.

The paper quoted Obama as saying that he believed Biden’s path to victory was narrowing and that the 81-year-old should ‘seriously consider the viability of his candidacy’.

Trump and Republicans begin attacking Harris

An hour after Den’s statement, the pro-Trump super PAC campaign fund Make America Great Again released an ad attacking Harris, claiming she had ‘covered up Joe’s obvious mental decline’.

‘Whoever the left nominates now, there will be more of the same,’ Donald Trump said.

Trump’s son Donald Trump Jr. also posted on Truth Social, saying: ‘Kamala Harris has all of Joe Biden’s left-wing policy record. the difference is she is more liberal and less competent than Joe, which is really saying something. was held responsible for the border and we saw the worst illegal invasion in our history!!!’ he wrote.

Chris LaCivita and Susie Wiles, senior advisers to the Trump campaign, wrote in a note: ‘Kamala Harris is as much of a joke as Biden. Harris will be even WORSE for the people of our nation than Joe Biden. Harris has been Crooked Joe’s top aide all along. They have each other’s records and there is no distance between the two. Harris should be defending the failed Biden administration AND his poor record on liberal crime [in California],’ they wrote

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Microsoft urges Trump to address Russian and Chinese ‘cyber threats’

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Microsoft President Brad Smith has called on Donald Trump to take decisive action against cyber-attacks originating from Russia, China, and Iran, citing an alarming rise in state-sponsored hacking targeting U.S. government officials and election campaigns.

Speaking to The Financial Times (FT), Smith, who also serves as the company’s executive vice president and chief legal officer, emphasized that cybersecurity “deserves to be a more prominent issue in international relations.” He urged the incoming Trump administration to send a strong message to deter hostile nations.

“I hope the Trump administration will push harder against nation-state cyberattacks, particularly from Russia, China, and Iran. We cannot tolerate the level of attacks we have seen today,” Smith stated.

Rise in ransomware attacks

Smith pointed to a surge in ransomware attacks on U.S. companies, frequently carried out by criminal organizations that he said are often “tolerated … and in some cases, even facilitated” by the Russian government.

Adding to the concerns, U.S. law enforcement officials last week accused China of conducting a widespread cyber espionage campaign, infiltrating multiple American telecommunications networks ahead of the election.

According to Microsoft, its customers face more than 600 million cyber-attacks daily, underscoring the urgent need for robust defensive measures.

Progress under Biden administration

Smith acknowledged that the Joe Biden administration has made “tremendous progress in strengthening cybersecurity defenses.” However, he stressed the need for additional measures to deter and dissuade other nations from engaging in such activities.

A recent Microsoft study revealed that nation-state groups and criminal gangs are increasingly collaborating, sharing tools, and conducting joint operations to target vulnerable systems.

In his testimony before the U.S. Senate in September, Smith highlighted that Russia, China, and Iran have ramped up digital efforts to interfere in global elections, including those in the United States.

Microsoft faces security criticism

Despite its advocacy for stronger cybersecurity measures, Microsoft itself has faced scrutiny over its own security practices.

In March, a report by the U.S. Cybersecurity Review Board criticized the company’s security culture, describing it as “inadequate.” The report highlighted several “avoidable mistakes” that allowed Chinese hackers to access hundreds of email accounts hosted on Microsoft’s cloud systems, including those of senior U.S. government security officials.

In response, Microsoft CEO Satya Nadella pledged to prioritize security “above all else,” including linking employee compensation to improved security outcomes. The company has also begun implementing changes to its Windows operating system to enable faster recovery from incidents such as the global IT outage caused by a flawed CrowdStrike security update in July.

Call for exporting digital technologies to the Middle East and Africa

Beyond cybersecurity, Smith commented on the potential impact of a second Trump administration on the technology sector. He noted that anticipated changes to merger and acquisition regulations in the U.S. could be offset by heightened scrutiny in other regions.

Smith also renewed his call for the U.S. government to “help accelerate the export of key American digital technologies” to regions like the Middle East and Africa. This appeal comes in the wake of export controls imposed by the Biden administration on artificial intelligence chips over fears they could be diverted to China.

“We really need to standardize processes so that American technology can get to these other parts of the world as quickly as Chinese technology,” Smith stated.

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Biden plans to write off Ukraine’s $4.6bn debt ahead of Trump

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President Joe Biden’s administration has officially notified Congress of its intention to forgive Ukraine’s $4.65 billion debt, a move tied to ongoing efforts to support the country amid its conflict with Russia.

This debt represents half of the $9 billion provided to Kyiv as part of the $61 billion aid package approved by Washington in April. Unlike other forms of assistance, this funding was issued as conditionally repayable loans, with provisions allowing the United States President to cancel up to 50% of the debt if deemed necessary.

In a statement, the U.S. State Department explained that the debt cancellation is intended to “help Ukraine win” and serves the national interests of the U.S., the EU, G7+, and NATO.”

According to Bloomberg, President Biden is determined to maximize aid to Ukraine before President-elect Donald Trump assumes office. However, the decision to write off the debt has drawn sharp criticism from Republicans.

Republican Senator Rand Paul argued that the Biden administration’s decision places undue financial burden on the American public. He pledged to demand a vote in the Senate to challenge the proposal.

Despite this, Bloomberg notes that any effort to overturn the debt cancellation would require approval from both houses of Congress, a scenario that appears unlikely given the Democratic majority in the Senate. Furthermore, President Biden holds veto power, making reversal of the decision even more challenging.

Earlier, U.S. Secretary of State Antony Blinken announced plans to exhaust all remaining aid approved by Congress before President Trump’s inauguration on January 20.

National Security Advisor Jake Sullivan emphasized that one of the administration’s key goals is to position Ukraine as strongly as possible—both militarily and at the negotiating table.

Pentagon officials reported that $9.3 billion in military aid is currently in the pipeline. Pentagon spokeswoman Sabrina Singh confirmed plans for weekly arms deliveries to Kyiv, with the aim of expediting aid distribution before the presidential transition.

On November 20, the Pentagon unveiled an additional $275 million military aid package for Ukraine, further underscoring the administration’s commitment to strengthening Ukraine’s defense capabilities.

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Donald Trump taps Howard Lutnick to lead Commerce Department

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Donald Trump has announced his intention to nominate Wall Street investor and campaign donor Howard Lutnick as the new head of the U.S. Department of Commerce, placing the billionaire at the forefront of implementing the sweeping tariffs promised during his presidential campaign.

Lutnick, who co-chaired Trump’s transition team, had previously been considered for the role of Treasury Secretary. He is also the CEO of Cantor Fitzgerald, a prominent investment firm.

In a statement on Tuesday, Trump declared that Lutnick would be “directly responsible” for leading the Commerce Department and overseeing the Office of the U.S. Trade Representative (USTR).

The USTR, established in 1974 to manage negotiations with U.S. trading partners, traditionally reports directly to the president. If confirmed by the Senate, the 63-year-old Lutnick will play a pivotal role in aiding U.S. businesses and executing Trump’s proposed tariffs on international trade partners.

Trump has outlined plans for a 60% tariff on imports from China and a global tariff of up to 20%, signaling a major shift in U.S. trade policy.

Lutnick, despite lacking prior government experience, has been a steadfast advocate for Trump’s economic agenda. During a New York campaign rally, Lutnick remarked, “When was America great? At the turn of the century, our economy was floundering! That was 125 years ago. We had no income tax and all we had were tariffs.”

While Lutnick has emerged as a major donor to Trump, he has also supported establishment Democrats and Republicans in the past, including Chuck Schumer and Jeb Bush. He contributed to both Hillary Clinton’s 2008 and 2016 campaigns, hosting a fundraiser for her in 2015. Lutnick maintains a personal friendship with the Clintons, noting their attendance at a Cantor Fitzgerald fundraiser in September 2022.

Lutnick has also maintained a long-standing relationship with Trump, even appearing on The Celebrity Apprentice in 2008. He disclosed to the Financial Times in October that he has donated over $10 million to Trump’s 2024 campaign and another $500,000 to the transition team, totaling approximately $75 million.

Treasury Secretary selection process still uncertain

The position of Treasury Secretary, one of the most significant roles in Trump’s administration, remains undecided. Lutnick’s name has been floated for the role, though he faces competition from hedge fund manager Scott Bessent, private equity billionaire Marc Rowan, and former Federal Reserve governor Kevin Warsh.

Marc Rowan, the CEO of Apollo Global Management, has emerged as a leading contender and is expected to meet with Trump to present his case. Rowan’s supporters cite his extensive expertise in financial markets, though competition remains fierce.

Forecasting site Polymarket currently lists Warsh as the favorite for Treasury Secretary, followed by Bessent, Rowan, and William Hagerty. If unsuccessful in his bid for Treasury Secretary, Bessent is reportedly vying for the chairmanship of the National Economic Council.

Trump names Mehmet Oz to run Medicare and Medicaid

Trump also announced on Tuesday his nomination of Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS). Describing Oz as “one of the most talented physicians” capable of “making America healthy again,” Trump expressed confidence in Oz’s ability to reduce waste and fraud within the nation’s largest government agency.

Dr. Oz, a former heart surgeon and Columbia University professor, rose to prominence as Oprah Winfrey’s health expert before hosting his own popular talk show. However, his career has been controversial, with critics accusing him of promoting scientifically dubious theories and unproven treatments.

Oz’s political experience includes a 2022 Senate race in Pennsylvania, where he was endorsed by Trump but ultimately lost to Democrat John Fetterman.

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