Bloomberg Daybreak: US Edition

Today's top stories, with context, in just 15 minutes.

On today's podcast:

1) Democrats won control of both chambers of the US Congress in a midterm election landslide that amounted to a rejection of President Donald Trump following widespread voter discontent with the economy and the war in Iran. The Democratic rout sets up the first real check on Trump’s power in Washington since he returned to the White House last year, as the party rode a wave of voter dissatisfaction driven by the cost-of-living. The incoming Congress is sure to investigate Trump, his administration and businesses and stymie his legislative agenda.

2) Democrats' control of Congress is weighing on the shares of Tesla and SpaceX Shares. A so-called blue wave in the midterms will fan concerns about tighter regulations around artificial intelligence and call into doubt a potential merger of Tesla and SpaceX. Empowered Democrats may be able to slow down the potential merger, with Congress unable to single-handedly kill a deal, according to First New York's Vikram Rai.

3) Democrats scored a landslide victory in New York, flipping a marquee House seat and making deep inroads into some of the state’s most reliably conservative territory. Governor Kathy Hochul cruised to reelection by a double-digit margin, outperforming her six-point victory from 2022, while Democrat Cait Conley ousted Republican Representative Mike Lawler in the Hudson Valley. The victories marked a reversal from the political forces that reshaped New York in 2024, when Trump made striking gains across the state, particularly in New York City and its suburbs.
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Today's top stories, with context, in just 15 minutes.

On today's podcast:

1) America’s referendum on President Trump’s second term is underway with the US midterm elections. Democrats are expected to take control of the House of Representatives, and winning the Senate is a real possibility, which would throw a wrench into Trump’s presidency. The election results may take weeks to be known due to individual states’ rules around counting mail-in votes and legal challenges, with the Justice Department already appealing a federal judge’s decision and the Supreme Court rejecting the Trump administration’s bid.

2) Apple delivered a mixed outlook to investors in its first quarterly report under Chief Executive Officer John Ternus, with tightening profit margins overshadowing an upbeat sales forecast. The company predicted revenue growth of 7% to 10% during the holiday season, but warned that gross margins would be thinner than projected due to higher memory costs and expenses related to the new Siri AI digital assistant. Total revenue rose 12% to $114.5 billion during the fiscal fourth quarter, with sales growth decelerating from a 16% clip in the previous three months, and the numbers from Apple’s iPad, China and wearables businesses were disappointing.

3) Iran and the US are reviewing the latest proposals from mediators on how to bridge their divides and avert another round of all-out war, according to a diplomat briefed on the matter. Qatari mediators flew to Tehran for more talks with Iranian officials, and Iran's parliament speaker said his country had "delivered a strong and rational response to the American side". The US overnight struck targets on the Iranian island of Qeshm, but oil prices tumbled around 10% on Monday on signs the White House is willing to allow more time for a diplomatic resolution.
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Representative Haley Stevens backed Republican candidate Mike Rogers, breaking with Democratic nominee Abdul El-Sayed. Stevens' endorsement of Rogers sparked anger from prominent Democrats, with some calling for her to be stripped from her committees. The episode highlights fissures between ideological progressives and moderate party members, particularly over support for Israel in its wars with Iran and Gaza.
2) President Trump is concluding his final electoral campaign with a whirlwind sprint across the country to turn out his most fervent supporters and thwart Democratic designs to curtail his power. Most surveys give rival Democrats strong odds of gaining congressional seats needed to take control of the House, and Democrats are increasingly optimistic that they have multiple routes to the Senate. Republican insiders describe a Senate map that’s still largely in toss-up territory or within reach for a win, and they envision a path to Senate control that involves holding seats in states such as Iowa, Kansas, and Nebraska.
3) Howard Marks said recent artificial intelligence related market stumbles have burst the bubble of infallibility around the sector. Marks stated that investors are showing less tolerance for tech companies whose core businesses are cooling beneath an unprecedented AI spending spree. Jody Jonsson said a disconnect exists between what AI companies expect and the pace at which enterprises can actually adopt the technology.
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From the worlds of art and creativity to international business and strategy, this episode explores how cultural fluency can become a competitive edge. Hear from Phyllis Kao, Vice President of Luxury and Auctioneer at Sotheby's; Alan Gilpin, CEO of World Rugby; Judy Liu, co-founder of Trinity Asia; and Maggie Ng, CEO of HSBC Hong Kong on how to feel at home across different cultural and geographical contexts.
This episode is sponsored by HSBC.
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Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.
In the US – a look ahead to the October jobs report, along with a focus on 3 stocks for the week ahead. They include: Apple, Palantir and Airbnb.
In the UK – a look ahead to the next Bank of England monetary policy decision.
In Asia – a look ahead to the next Reserve Bank of Australia rate decision.
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