Wall Street firm tells clients Senate will turn to Democrats as Biden rises

Democratic presidential candidate Joe Biden talks about reopening the country during a speech in Darby, Pennsylvania, on June 17, 2020.

Jim Watson | AFP | fake pictures

Financial advisory firm Signum Global Advisors is telling clients that it now believes the United States Senate will turn blue as presumptive Democratic candidate Joe Biden continues to outperform President Donald Trump in polls.

In a note to Signum clients, President Charles Myers and senior associate Lew Lukens said that while they were initially convinced that Republicans would retain control of the upper house, they have changed their minds and think Democrats will win it back.

“As Joe Biden’s leadership of Trump in national polls and on the battlefield has expanded, several races in the Senate have drawn near. We are changing our calling and now we predict that Democrats will take over the Senate,” they wrote. on Tuesday.

The firm has a massive policy and investigative arm, with all its experienced leaders ranging from working on Wall Street to government positions in Washington.

Myers was vice president of investment firm Evercore before founding Signum. He is currently a financial supporter of Biden’s campaign for president. Lukens was an ambassador to the United States under Hillary Clinton when she was secretary of state and also worked in national security under President George W. Bush. They have offices in New York, Washington and London.

The Signum change suggests that businesses on Wall Street and in the financial industry could begin preparing for the end of Republican control, both in the White House and in the Senate. Democrats currently have a majority in the House of Representatives.

Signum says his new prediction is based on current Senate and presidential elections, as well as historical trends. Biden is in the lead in most national polls, with an average of Real Clear Politics polls showing Trump by 10 points.

The firm believes that Sen. Doug Jones, an Alabama Democrat, will lose his seat in the Senate, but is convinced that Democrats can take the seats necessary to take control in the states of Arizona, Colorado and Maine, where the republican headlines. they face Democratic challengers. Then there are at least six other races in the Senate that Signum’s arguments are within the grasp of Democrats, including Montana and North Carolina.

“For us to call the Senate blue, we should trust that at least one of these six will turn blue,” the note says.