Obama returns to White House for four more years as battered Republicans begin scramble for new leader

President Barack Obama wasted little time yesterday as he headed back to Washington hours after celebrating his election victory in Chicago and securing a second term in the White House.
Fresh challenges lie ahead for the president as the stock market tumbled in response to his triumph at the polls over Mitt Romney and sabre-rattling from Republicans who demanded that he make good on his promise to work with both sides of the political aisle in the next four years.
Obama was joined by First Lady Michelle Obama and their children Malia and Sasha as they departed the Windy City on Air Force One. They arrived in Washington at about 6.30pm and returned to the iconic building which has been their home for the last four years - and where they will remain for the next four.
Last night, he called for unity after setting out an optimistic vision of America's future in a rousing acceptance speech.

Homecoming: The family has spent four years living in the most famous home in the U.S.

Not getting evicted: The First Family re-entered the house via a specially constructed walkway

Iconic: The White House will remain home to the Obama family, rather than the Romneys

I'm back: Barack Obama as he is driven in to the White House on Wednesday, after being re-elected for another four years as President

He promised 'the best is yet to come' and said the fierce battle with Romney had made him a better president, vowing: 'I will return to the White House more determined and inspired than ever.'
In a speech that saw a return to the soaring rhetoric he has become known for since his election in 2008, Obama said he had ‘listened and learned’ from the American people during his campaign.
With his voice going hoarse at times, he said: 'Progress comes in fits and starts' and the road is littered with ‘difficult compromises.' But he said he enters the next four years with an 'economy recovering, a decade of war ending and a long campaign is over.'

 

He paid tribute to his opponent and hopes they can 'work together in the coming weeks.'
The GOP has indicated that they will hold him to it.
Senate Republican leader Mitch McConnell was frosty in his post-election remarks. 'The voters have not endorsed the failures or excesses of the president's first term,' he said.
'Now it's time for the president to propose solutions that actually have a chance of passing the Republican-controlled House,' he continued, 'and deliver in a way that he did not in his first four years in office.'

Back in D.C.: The First Family walks off Air Force One upon their arrival in Washington

Heading home: President Obama and the First Family board Air Force One on their way back to Washington, hours after he secure re-election victory

Let's go: Obama was joined by First Lady Michelle Obama and their daughters Malia (second from right) and Sasha as they left their Chicago hotel room

Goodbye Chicago: President Obama and the first lady paused outside Air Force One to wave before heading back to Washington, DC

Republican House Speaker John Boehner added: Speaking to reporters on Wednesday morning, Boehner said: 'Mr. President, this is your moment. We want you to lead... Let's find the common ground that has eluded us.'
While soul-searching and recriminations over what went wrong with the Romney campaign will dominate Republican debate in the coming months, there will also be a more forward-looking discussion over who might be the party's 2016 candidate.
Senator Marco Rubio of Florida, Governor Chris Christie of New Jersey, Scott Walker of Wisconsin, Bobby Jindal of Louisiana, Susana Martinez of New Mexico, Representative Paul Ryan, the losing vice-presidential nominee, and Jeb Bush, former Florida governor, are all frontrunners.
The possible nominees for next time around are closely linked to the Romney postmortem.
Romney lost Hispanics to Barack Obama by 69 points to 29 and blacks by 93 to six. Against almost all predictions outside the Obama campaign, the black vote remained steady at 13 per cent and the Hispanic vote rose to 10 per cent. After being portrayed as an extremist on abortion and fertility issues, Romney also lost women voters by 55 to 43 points.
Stuart Stevens, Romney's top strategist, points out that Romney lost Florida, Ohio, Virginia and Colorado - his most likely path to a narrow victory - by just over 305,000 votes.
In the more immediate future, a package of huge tax hikes and spending cuts - known as the 'fiscal cliff' - is scheduled to take effect in the new year if the parties cannot come to a compromise.

Tired: Malia and Sasha Obama accompanied their parents on the trip from Chicago back to Washington

Cheers from the crowd: Before heading back to Washington, President Obama made a surprise visit to campaign headquarters to thank staff and hug campaign manager Jim Messina

Political foes: Obama pledged during his acceptance remarks that he would work with Republicans in the coming weeks, and Senate Minority Leader Mitch McConnell, left, and House Speaker John Boehner, right, said they will hold him to it

Looking ahead: Senator Marco Rubio of Florida and Representative Paul Ryan, the losing vice-presidential nominee, are two of the Republican front-runners in 2016

Jubilant: President Obama's daughter Sasha clutches an 'Obama' bag as the First Family boards Air Force One

The day after: President Obama's motorcade leaves his house in Chicago on Wednesday afternoon, after he celebrated his campaign victory into the wee hours of the morning

So far, Republicans have adamantly refused to raise taxes, even on America's richest people, as part of a deficit-reduction package. Obama and other Democrats maintain that such tax hikes must be part of the deal.
The president's administration is optimistic about an agreement.
Vice President Joe Biden told reporters on Wednesday that he and Obama are anxious to move forward on a bipartisan solution to the 'fiscal cliff,' but a compromise will hinge on Republicans.
'What is the takeaway going to be on the part of our Republican colleagues? What judgment are they going to make?' Biden told reporters on Air Force Two, as he flew from Chicago, where he watched election returns Tuesday night, to his home in Delaware.
'I know it takes a little time to kind of digest what's going on. But I think people know we've got to get down to work and I think they're ready to move,' Biden said.
Biden said he believes there are at least six Republican senators who are prepared to compromise on fiscal issues, adding that Democrats 'are going to have to compromise too. It's not like we're going to go in and say: "This is our deal. Take it or leave it."'
Another challenge for Obama lies in the stock market, as the Dow Jones industrial average plummeted 200 points within minutes after the opening bell and it continued falling, down 354 points two hours later.
In late afternoon trading, it was down 323 points, or 2.5 per cent, while index futures also plunged after the European Union slashed its growth forecast for next year.

Working toward compromise: Joe Biden, pictured on Wednesday with his wife Jill outside Air Force Two, told reporters that he and Obama are anxious to move forward on a bipartisan solution to the 'fiscal cliff,' but a compromise will hinge on Republicans

Four more years: Barack Obama delivered a powerful acceptance speech early on Wednesday morning in Chicago

Together: Michelle, Sasha, Barack and Malia Obama celebrate the President's victory on stage

Helping hand: Obama embraces Vice President Joe Biden on stage at his Chicago headquarters

Team: Obama called Biden 'America's happy warrior' as he paid tribute to his role in the election campaign

Meanwhile, the dollar rose and the Labor Department announced that the number of job openings waiting to be filled declined by 100,000 to 3.56 million from the prior month.
The figures show that the October jump in private payrolls, which was the biggest in eight months, may be difficult to sustain.
Before the president departed from Chicago's O'Hare International Airport, he stopped at his campaign headquarters to formally thank his workers.
A source told Politico that Obama entered the room to a massive reception, with campaign workers giving the commander-in-chief a standing ovation
Broadcast networks called the 2012 election for Obama at 11:15pm as he swept the map with wins in the swing states of Ohio, Iowa, Wisconsin, Pennsylvania, New Hampshire and Virginia. The Florida count is still not official, though an Obama victory there is all but certain.
With 100 percent of precincts reporting, Obama had an advantage of 46,000 votes - though news outlets were hesitant to declare him the winner in the Sunshine State, which has a notoriously close election history.
Big names in the Republican Party, including House Speaker Boehner and Majority Leader Eric Cantor, held on to their congressional seats easily as the party was set to keep control of the House of Representatives.

Devotion: Michelle Obama clearly never lost faith in her husband's political skills

Pride: The whole Obama family congratulated the President after his landslide election

Says it all: Michelle Obama was visibly fired up by her husband's election success

Staying put: The young First Family will stay in the White House until January 2017

Confetti: The Obama victory rally was showered in coloured paper as the President emerged to speak

Paul Ryan was also re-elected as a congressman following a campaign he conducted at the same time as serving as Mitt Romney's running mate.
However, the Tea Party appeared to have lost its political strength, as conservative icon Allen West was unceremoniously booted out of Congress and former presidential candidate Michele Bachmann also appeared to be in danger of losing her seat.
On the Democratic side, controversial congressman Jesse Jackson Jr cruised to re-election despite spending most of the year in rehab following a struggle with depression, and declining to appear at any campaign events.
The Kennedy family also looked set to return to power as Joseph Kennedy III took the House seat in Massachusetts formerly held by long-serving congressman Barney Frank.
The Democrats also looked set to hold on to control of the Senate, as hard-fought races in Massachusetts and Connecticut led to victories for Elizabeth Warren, who unseated Scott Brown, and for Chris Murphy in his battle against former wrestling boss Linda McMahon.
Two of the most controversial GOP Senate candidates, Todd Akin in Missouri and Richard Mourdock in Indiana, lost their races following highly publicised remarks about rape.

Akin claimed that victims of 'legitimate rape' could not get pregnant, while Mourdock argued that pregnancies resulting from rape were 'something that God intended'. The former lost to Claire McAskill, while the latter was defeated by Joe Donnelly.
In addition to the congressional races, a number of divisive ballot measures were also voted upon - same-sex marriage was legalised in Maine, Maryland and Washington, while marijuana was decriminalised in Colorado and Washington.

Victory: Barack Obama tweeted this picture of himself with his wife Michelle shortly after being declared the winner of the 2012 presidential election

Yes we could: Barack Obama and Joe Biden congratulate each other with their wives in Chicago