Following the drastic scenes at the Capitol Building last week, US financial markets open low as the fallout raged on, impacting diplomacy, the economy and corporate-PAC sponsorships.
Twitter shares down after banning Trump
After Twitter announced it was suspending Trump’s account indefinitely last week, share prices in the company plummeted 10 per cent. This comes as conservative American’s leave the site to join alternatives, leaving to what some, including Secretary of State, Mike Pompeo, described as “dangerous” and “un-American”.
One attractive alternative to Twitter was the app Parler, a social media app dedicated to conservative voices. Citing the lack of moderation for content that might potentially promote violence, both Google and Apple removed the app from their app stores. Then on Monday, Parler went offline when Amazon took a similar step and ejected it from their web hosting service.
Demand for Parler continues to be evident, on Monday the unrelated app, Parlor, became the second most downloaded free app on both Apple and Google’s App store.
Facebook also banned Trump, and also opened down on Monday, reflecting an overall dip in US markets, with popular indexes S&P 500, NASDAQ, and the Dow Jones Industrial Average opening down. This comes in the wake of concerning pay-roll figures released last week that show that a loss of 140,000 jobs in December.
Bitcoin also experienced losses after its record-breaking end to last week.
Drive to remove Trump from office early gains urgency as trade-war continues
Trump is not concerned with the preservation of US diplomatic ties ready for his successor. On Sunday, he drew the ire of China by reopening diplomatic ties with Taiwan. China’s state media lashed out at the move, describing it as “seeking to maliciously inflict a long-lasting scar on China-U.S. ties.”
On Sunday, the trade war that wrought havoc on the economy during Trump’s presidency threatened to reignite into Joe Biden’s tenure as China introduced new laws to fight Trump’s sanctions. The laws allow Chinese courts to punish companies that comply with US sanctions.
This comes as action continues to be taken against Chinese companies, with three being removed from the NYSE following Trump’s executive order in November.
The riots last week have concerned many, who believe that Trump is getting increasingly erratic and reckless, and that he might do irreversible damage before he leaves office, including to US diplomatic ties.
Democrats proceeded with attempts to force Donald Trump out of office prematurely on Monday in an attempt to avoid this, charging him with “incitement of insurrection”.
More businesses cut ties with Trump allies
According to the BBC, “several major US corporations announced over the weekend that they are withholding donations to lawmakers who have been blamed for stoking last week’s unrest at the Capitol.” The Professional Golfers’ Association (PGA) has also announced that they have changed plans to host their 2022 competition at a Trump-owned Golf Club.
Companies to cut off donations to Trump allies include BlueCross BlueShield, Citigroup, Commerce Bank, and Marriot Hotels Group. They will suspend funding to those Republicans that voted against certifying US electoral votes. They include Senator Ted Cruz and Senator Josh Hawley amongst others.
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