President-elect Joe Biden is preparing to lead the US at an increasingly troubling time. Americans face a host of challenges, from surging Covid-19 infections and slowing economic growth to worsening inequality and deep political and social divisions.
The Biden administration will be under pressure from Day One and would have a better chance at getting off to a strong start if it were afforded a smooth transition. Mr Biden and his team will need to be able to take quick actions, and it would greatly help if they were taken with as full an information set as possible.
Mr Biden made it clear in his victory speech on Saturday evening that he is wasting no time in getting ready for the White House, especially when it comes to containing the pandemic. On Monday, he plans to appoint a 12-member task force that will work to create policies for dealing with Covid-19 that could start as soon as he is sworn in on January 20.
He is right to make the pandemic his first priority. Daily coronavirus cases have surged past 100,000, suggesting that the US is following the type of path that has forced most of Europe to reimpose various forms of lockdowns in the face of increasingly strained healthcare systems. But that’s only one of the many challenges he must deal with quickly.
Even before any new renewed Covid-19 restrictions, US economic data has continued to point to a deceleration. The inequality trifecta – of income, wealth and opportunity – is also worsening, adding to social tensions and an erosion in the country’s longer-term growth and prosperity potential. And the Congressional elections have done little to overcome deep political divisions that were aggravated by the recent disagreements over the nomination and approval of a new Supreme Court justice.
Having united the Democratic party, President-elect Biden now has work to do in dealing with a likely divided Congress and bringing together the American people as a whole.
His Congressional challenge involves quickly securing the support of enough lawmakers to pass a fiscal package that goes beyond the important objective of helping with Covid-19 relief. It should also be directed at improving the country’s ability to live with the virus in a healthier and economically-less disruptive manner, and at countering downward pressure on longer-term productivity and household economic security.
Mr Biden also needs to get enough of the country behind him in the collective fight against Covid-19 or risk the loss of more lives, greater disruptions to livelihoods, and longer-term economic, institutional and social scarring.
Mr Biden’s ability to do these things depends in part on how well the transfer of power takes place in the next few weeks. The experience of the last two transitions points both to the opportunities and challenges.
In November 2008, President-elect Barack Obama benefited from the cooperation of the Bush administration as he prepared to take over in the middle of the global financial crisis. Without the intense briefings that took place with then-current White House staff, it would have been very hard for the Obama team to prepare for the series of domestic measures and international interactions that proved essential to avoid a potentially devastating economic depression. It also allowed the Obama administration to hold on to some Bush officials for at least a few months to gain from their expertise.
The experience eight years later was less encouraging. While both the Obama administration and the incoming Trump administration blamed each other for the messy 2016 transition, their interaction was not conducive to a smooth transfer of power. And there was little appetite for any carryover in officials, even for the very short term. Fortunately, there was less at stake then, with the economy on the mend and the pandemic only a hypothetical (a remote or tail event). Not so today.
Many expect the 2020 presidential transition to be a repeat of 2016 rather than 2008. That would be unfortunate for America, with significant potential consequences in terms of lives and livelihoods. It is also avoidable.
Mohamed A. El-Erian is a Bloomberg Opinion columnist. He is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE, the parent company of Pimco where he served as CEO and co-CIO; and chair of Gramercy Fund Management. His books include "The Only Game in Town" and "When Markets Collide."
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
From Conquest to Deportation
Jeronim Perovic, Hurst
The five pillars of Islam
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
%3Cp%3EMATA%0D%3Cbr%3EArtist%3A%20M.I.A%0D%3Cbr%3ELabel%3A%20Island%0D%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Killing of Qassem Suleimani
Cinco in numbers
Dh3.7 million
The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
46
The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
3,000
The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
1.1 million
The number of followers that Michael Cinco’s Instagram account has garnered.
UAE currency: the story behind the money in your pockets
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Cry Macho
Director: Clint Eastwood
Stars: Clint Eastwood, Dwight Yoakam
Rating:**
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
