Obama wins historic US election

Democratic Senator Barack Obama has been elected the first black president of the United States.

“It’s been a long time coming, but tonight… change has come to America,” the president-elect told a jubilant crowd at a park in Chicago.

His rival John McCain accepted defeat, saying “I deeply admire and commend” Mr Obama. He called on his supporters to lend the next president their goodwill.

The BBC’s Justin Webb said the result would have a profound impact on the US.

“On every level America will be changed by this result… [it] will never be the same,” he said.

Mr Obama appeared with his family, and his running mate Joe Biden, before a crowd of tens of thousands in Grant Park, Chicago.

“If there is anyone out there who still doubts that America is a place where all things are possible, who still wonders if the dream of our founders is alive in our time, who still questions the power of our democracy, tonight is your answer,” he said.

He said he had received an “extraordinarily gracious” call from Mr McCain.

He praised the former Vietnam prisoner of war as a “brave and selfless leader”.

“He has endured sacrifices for America that most of us cannot begin to imagine,” the victor said.

He had warm words for his family, announcing to his daughters: “Sasha and Malia, I love you both more than you can imagine, and you have earned the new puppy that’s coming with us to the White House.”

Congratulations… You are about to go on one of the great journeys of life President George W Bush

But he added: “Even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime – two wars, a planet in peril, the worst financial crisis in a century.

“The road ahead will be long. Our climb will be steep… But America – I have never been more hopeful than I am tonight that we will get there.”

From red to blue

Mr Obama captured the key battleground states of Pennsylvania and Ohio, before breaking through the winning threshold of 270 electoral college votes at 0400 GMT, when projections showed he had also taken California and a slew of other states.

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Then came the news that he had also seized Florida, Virginia and Colorado – all of which voted Republican in 2004 – turning swathes of the map from red to blue.

Several other key swing states are hanging in the balance.

In Indiana and North Carolina, with most of the vote counted, there was less than 0.5% between the two candidates.

However, the popular vote remains close. At 0600 GMT it stood at 51.3% for the Democratic Senator from Illinois, against 47.4% for Arizona Senator McCain.

The main developments include:

• Mr Obama is projected to have seized Ohio, New Mexico, Iowa, Virginia, Florida, Colorado and Nevada – all Republican wins in 2004.
• He is also projected to have won: Vermont, New Hampshire, Pennsylvania, Illinois, Delaware, Massachusetts, District of Columbia, Maryland, Connecticut, Maine, New Jersey, Michigan, Minnesota, Wisconsin, New York, Rhode Island, California, Hawaii, Washington, Oregon.
• Mr McCain is projected to have won: Kentucky, South Carolina, Oklahoma, Tennessee, Arkansas, Alabama, Kansas, North Dakota, Wyoming, Georgia, Louisiana, West Virginia, Texas, Mississippi, Utah, Arizona, Idaho, South Dakota.
• Turnout was reported to be extremely high – in some places “unprecedented”.
• The Democrats made gains in the Senate race, seizing seats from the Republicans in Virginia, North Carolina, New Hampshire, New Mexico and Colorado. They also increased their majority of the House of Representatives.
• Exit polls suggest the economy was the major deciding factor for six out of 10 voters.
• Nine out of 10 said the candidates’ race was not important to their vote, the Associated Press reported. Almost as many said age did not matter.

LOSSES AND GAINS Key states Projected gains for Obama in former Republican states of Ohio, New Mexico, Iowa, Virginia, Florida, Colorado, Nevada Senate seats Virginia: Democrat Mark Warner replaces retiring Republican John Warner New Hampshire: Democrat Jeanne Shaheen unseats Republican John Sununu North Carolina: Democrat Kay Hagan replaces Republican Elizabeth Dole New Mexico: Democrat Tom Udall replaces retiring Republican Pete Domenici

Several states reported very high turnout. It was predicted 130 million Americans, or more, would vote – more than for any election since 1960.

Many people said they felt they had voted in a historic election – and for many African-Americans the moment was especially poignant.

John Lewis, an activist in the civil rights era who was left beaten on an Alabama bridge 40 years ago, told Atlanta’s Ebenezer Baptist Church: “This is a great night. It is an unbelievable night. It is a night of thanksgiving.”

Besides winning the presidency, the Democrats tightened their grip on Congress.

The entire US House of Representatives and a third of US Senate seats were up for grabs.

Democrats won several Senate seats from the Republicans, but seemed unlikely to to gain the nine extra they wanted to reach the 60-seat “super-majority”, that could prevent Republicans blocking legislation.

House set for fresh bail-out vote

President Bush has said the bill is the best chance of rescuing the economy

The US House of Representatives is preparing to vote on a $700bn (£380bn) plan to rescue the US financial sector.

Party leaders are hoping the House, which stunned global markets by rejecting the initial plan, will follow the Senate and back a new version.

The House began debating the deal on Friday morning and is expected to vote later in the day.

The Senate bill added about $100bn in new tax breaks in the hope of gaining more support from House Republicans.

The New York stock exchange opened shortly after the debate began and the Dow Jones Industrial Average jumped more than 100 points in early trading.

But earlier in Japan, shares fell to a three-year low. The Nikkei index closed down more than 1.9%, its lowest level since May 2005.

In Europe, shares were relatively flat. In early afternoon trading the UK’s FTSE 100 was down just 18 points, France’s Cac 40 was down nine and Germany’s Dax up seven.

The financial volatility continued on Friday as US bank Wells Fargo announced it would buy troubled rival Wachovia in a $15.1bn (£8.5bn) deal.

The US also reported its biggest monthly job loss in more than five years.

Bush plea

In Washington, House Speaker Nancy Pelosi, a Democrat, has said no vote will be scheduled until the party feels it will pass.

NEW MEASURES IN BAIL-OUT BILL Increased protection for saving deposits Increased child tax credits More aid for hurricane victims Tax breaks for renewable energy Higher starting limits to alternative minimum tax

“We’re not going to take a bill to the floor that doesn’t have the votes. I’m optimistic that we will take a bill to the floor,” she said.

When the House first rejected the plan on Monday – by 228 votes to 205 – legislators had concerns about both the content of the plan and the speed with which they were being asked to pass it.

President George W Bush has since urged the House to back his revised bill.

The package is aimed at buying up the bad debts of failing institutions on Wall Street.

Both the Democratic and Republican parties are pressing their members in the House to swing behind the revised bill and party leaders expect it to pass.

This thing, this issue, has gone way beyond New York and Wall Street President George W Bush

Some members have called for more amendments, which opens up the prospect of further horse-trading up to the point at which votes are cast.

Pressure will particularly be applied to the 133 House Republicans who went against party affiliation to reject President Bush’s bill, correspondents say.

Tennessee Republican Zach Wamp, one of those who voted against the bill on Monday, said he would now vote in favor of the measure despite ordinary Americans remaining “as mad as heck” at the situation on Wall Street.

“You have got to do what you think is right. I thought the right thing Monday was to vote no. And I think the right thing to do tomorrow is to vote yes.”

The bill successfully passed through the Senate on Wednesday after it was amended to raise the government’s guarantee on savings from $100,000 to $250,000.

It also now includes tax breaks to help small businesses, expand the child tax credit and extend help to victims of recent hurricanes.

Most importantly, it extends the tax break aimed at boosting the provision of alternative energy such as wind farms.

It also includes a number of so-called “pork-barrel” measures including tax cuts for rum manufacturers in Puerto Rico and the owners of racetracks.

The additional cost of these unrelated tax breaks – which could add $100bn to the bill – have worried some fiscally conservative Democrats in the House of Representatives.