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| Dollar and Bitcoin soar as Trump wins presidency | Dollar and Bitcoin soar as Trump wins presidency |
| (32 minutes later) | |
| The US dollar has surged as Donald Trump is now projected to have won the presidency and will re-enter the White House. | The US dollar has surged as Donald Trump is now projected to have won the presidency and will re-enter the White House. |
| Bitcoin has also hit a record high while traders bet on potential tax cuts, increased tariffs, and rising inflation under Trump's second term. | Bitcoin has also hit a record high while traders bet on potential tax cuts, increased tariffs, and rising inflation under Trump's second term. |
| This election result will have a major impact on the global economy. | This election result will have a major impact on the global economy. |
| The Republican Party is also set to take control of the Senate, although there are still votes left to count. | The Republican Party is also set to take control of the Senate, although there are still votes left to count. |
| The dollar has soared by about 1.4% against a host of different currencies, including the pound, euro and the Japanese yen. | The dollar has soared by about 1.4% against a host of different currencies, including the pound, euro and the Japanese yen. |
| In Japan, the benchmark Nikkei 225 stock index ended the session up by 2.6%, while Australia's ASX 200 closed 0.8% higher. | In Japan, the benchmark Nikkei 225 stock index ended the session up by 2.6%, while Australia's ASX 200 closed 0.8% higher. |
| The major US stock indexes also look likely to open sharply higher. That came after the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed more than 1% higher on Tuesday. | The major US stock indexes also look likely to open sharply higher. That came after the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed more than 1% higher on Tuesday. |
| Why is Bitcoin going up? | Why is Bitcoin going up? |
| The value of Bitcoin has also jumped by $6,000 (£4,645) to a record high of $75,371.69, surpassing the previous high of $73,797.98 seen in March this year. | The value of Bitcoin has also jumped by $6,000 (£4,645) to a record high of $75,371.69, surpassing the previous high of $73,797.98 seen in March this year. |
| Trump has previously pledged to make the US the "bitcoin and cryptocurrency capital of the world". | Trump has previously pledged to make the US the "bitcoin and cryptocurrency capital of the world". |
| His approach stands in stark contrast with that of the Biden administration, which led a sweeping crackdown on crypto firms in recent years. | His approach stands in stark contrast with that of the Biden administration, which led a sweeping crackdown on crypto firms in recent years. |
| Trump had suggested that he would fire Gary Gensler, the chair of the Securities and Exchange Commission who has received a backlash online from advocates of the digital currency. | Trump had suggested that he would fire Gary Gensler, the chair of the Securities and Exchange Commission who has received a backlash online from advocates of the digital currency. |
| This is due to Mr Gensler's agency introducing new rules around environmental disclosures, which have been paused, as well as legal action against crypto companies. | This is due to Mr Gensler's agency introducing new rules around environmental disclosures, which have been paused, as well as legal action against crypto companies. |
| Trump has also said he plans to put billionaire Elon Musk in charge of an audit of governmental waste. | Trump has also said he plans to put billionaire Elon Musk in charge of an audit of governmental waste. |
| Mr Musk has long been a proponent of cryptocurrencies and his company Tesla famously invested $1.5bn in Bitcoin in 2021, although the price of the digital currency can be very volatile. | Mr Musk has long been a proponent of cryptocurrencies and his company Tesla famously invested $1.5bn in Bitcoin in 2021, although the price of the digital currency can be very volatile. |
| Tesla's Frankfurt-listed shares rallied over 14% at the open on Wednesday. Mr Musk, Tesla's top shareholder, has supported Trump throughout his electoral campaign. | Tesla's Frankfurt-listed shares rallied over 14% at the open on Wednesday. Mr Musk, Tesla's top shareholder, has supported Trump throughout his electoral campaign. |
| Experts predicted a turbulent day elsewhere on financial markets, however, as a response to global uncertainty and Trump's potential plans for the economy. | |
| US bond yields, the return a government promises to pay buyers of its debts, also soared on Wednesday. | US bond yields, the return a government promises to pay buyers of its debts, also soared on Wednesday. |
| A bond is essentially an IOU that can be traded in the financial markets and governments often sell bonds to investors when they want to borrow money. | A bond is essentially an IOU that can be traded in the financial markets and governments often sell bonds to investors when they want to borrow money. |
| Analysts have suggested this could be down to traders expecting that some of Trump's economic measures could lead to higher prices. | Analysts have suggested this could be down to traders expecting that some of Trump's economic measures could lead to higher prices. |
| Donald Trump has said, for example, he would dramatically increase trade tariffs, especially on China, if he became the next US president. | Donald Trump has said, for example, he would dramatically increase trade tariffs, especially on China, if he became the next US president. |
| Tariff impact | |
| Some economists have warned that Trump's proposals around trade would come as a "shock" to the UK economy. | |
| Ahmet Kaya, principal economist for the National Institute of Economic and Social Research (Niesr), said it could be "one of the countries most affected" under such plans. | |
| It estimates that economic growth in the UK would slow to 0.4% in 2025, down from a forecast of 1.2%. | |
| Katrina Ell, director of economic research at Moody's Analytics said: "Trump’s global trade policies are causing particular angst in Asia, given the strong protectionist platform on which more aggressive tariffs on imports into the US have been pledged." | |
| Trump's more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan against potential aggression from China. | Trump's more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan against potential aggression from China. |
| The self-ruling island is a major producer of computer chips, which are crucial to the technology that drives the global economy. | The self-ruling island is a major producer of computer chips, which are crucial to the technology that drives the global economy. |
| In mainland China, the Shanghai Composite Index ended the day down 0.1%, while Hong Kong's Hang Seng was down by around 2.23%. | In mainland China, the Shanghai Composite Index ended the day down 0.1%, while Hong Kong's Hang Seng was down by around 2.23%. |
| Trump's tax-cutting agenda has been broadly welcomed by large corporates in the US. | Trump's tax-cutting agenda has been broadly welcomed by large corporates in the US. |
| "We should see pro-business policies and tax cuts, in turn possibly driving up inflation and less rate cuts," said Jun Bei Liu, portfolio manager at Tribeca Investment Partners. | "We should see pro-business policies and tax cuts, in turn possibly driving up inflation and less rate cuts," said Jun Bei Liu, portfolio manager at Tribeca Investment Partners. |
| Investors also have other key issues to focus on this week. | Investors also have other key issues to focus on this week. |
| On Thursday, the US Federal Reserve is due to announce its latest decision on interest rates. | On Thursday, the US Federal Reserve is due to announce its latest decision on interest rates. |
| Comments from the head of the central bank, Jerome Powell, will be watched closely around the world. | Comments from the head of the central bank, Jerome Powell, will be watched closely around the world. |
| On Friday, top Chinese officials are expected to unveil more details about Beijing's plans to tackle the slowdown of the world's second largest economy. | On Friday, top Chinese officials are expected to unveil more details about Beijing's plans to tackle the slowdown of the world's second largest economy. |