Midterm Elections a Referendum on Trump; US-Iran Pursue Diplomacy

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That's why enterprises turned to Boomi to connect data, apps, and AI, helping them operate securely, efficiently, and at scale. Boomi turns a world of AI pain into a world of AI gain. As Boomi says, "We got you." Head to boomi.com. Bloomberg Audio Studios. Podcasts, Radio, News. Good morning, I'm Nathan Hager. And I'm Karen Moskow. Here are the stories we're following today. Karen, Election Day. It's here. After months of campaigning and hundreds of millions of dollars spent, voters head to the polls today to determine control of Congress, as well as a range of local issues, President Trump delivered his closing argument for Republicans in front of a local issue in the nation's capital, the Lincoln Memorial Reflecting Pool. Very proud of it. We went through a lot with vandalism. The vandalism was unprecedented. People don't like talking about it. Wearing a white USA baseball cap, the president spent about 20 minutes talking about the renovation before turning to attacks on Democrats. The Democrats want to blow all of this up by electing communist jihadists, and the United States Congress will not allow that to happen. President Trump's speech capped off nearly a month of rallies in mostly red states, including traditional GOP strongholds like Texas, South Carolina, Kansas, and Iowa, where Republicans are now playing defense. Well, Nathan, about 57 million Americans, cast ballots prior to election day, and the University of Florida election lab says, in the 27 early voting states that track party registration, 43% have been cast by Democrats, compared to 32% for Republicans. You know, school of management lecturer Gotham Akunda says he wouldn't make predictions on tonight's outcome based on the early vote. To the extent that we can decode data from the early vote, outside of Arizona, it is sort of somewhere slightly above Democratic best case estimates. It's like it's so good that Florida, which two days ago, I would have told you two days ago, I would have told you Democrats have absolutely no chance of a victory in Florida. Florida is starting to look like it could go either way. That's how big the swings are right now. >> Yeah, universities, Gotham Akunda is a columnist for Bloomberg opinion and the Cook Political Report projects Democrats picking up 12 to 25 seats in the House, and in the four seats Democrats need to flip the Senate all but one are in states president Trump won in 2024. >> In the 11th hour before the election, Karen, the Supreme Court rejected a Trump administration fight over mail-in ballots in California, but the broader dispute over voting by mail may not be over. Bloomberg's all over crook has more from our election night headquarters in New York. >> And the midterms are already the focus of legal disputes across the United States. The U.S. Supreme Court rejecting the Trump administration's effort to force thousands of California ballots to be set aside. The DOJ claims to have identified 20,000 likely non-citizens on California's voter rolls. California says the list is riddled with inaccuracies and accuses the president of trying to sow doubt in the country's democratic process. At the same time, a D.C. district court ruled against Democratic party groups in an effort to block the Trump administration from pressuring states to set aside mail-in ballots of people the U.S. claims are likely non-citizens. The judge held that the Democratic group had not presented evidence that any state had segregated ballots on the government's behest. The U.S. who have cast doubt on election results will be closely watched as President Trump still denies the outcome of the 2020 presidential election. In New York, Oliver Crook, Bloomberg Radio. >> All right, Oliver, thank you. In the closely watched Senate race in Michigan, Democrat Abdul Al-Sahead says his campaign raised a one-day record of $2.4 million. And as after his primary opponent, Congresswoman Haley Stevens reversed her endorsement and back Republican Mike Rogers. That move could blow back on Stevens when Congress returns in January. And Bloomberg's Amy Morris says that story from Washington. >> House minority leader Hakeem Jeffries called Stevens decision terrible, saying she's isolated herself from the House Caucus. But he deferred discussion about her potential punishment until after the midterms. How Jeffries handles Stevens' defection will preview how he could handle intra-party feuds if Democrats flip the House? Democrats were also weighing whether to punish representatives Marie Glucin-Campares and Jared Golden for breaking with the party on key procedural votes. In Washington, Amy Morris, Bloomberg Radio. >> Amy, thanks. The first polls will start to close at 6 p.m. tonight while street time in parts of Indiana and Kentucky. The final polling places shut down at one in the morning in remote Alaska. Our coverage begins at six with America decides. Bloomberg's David Gura starts things off, followed by a special edition of Bloomberg Balance of Power with Joe Matthew and Kaley Lines. They take you through the numbers with the context that matters. Live election night coverage starts at six p.m. on Bloomberg radio and television and the Bloomberg Business App. >> Nathan Rising Energy Price is one of the key issues impacting investors. In fact, gasoline prices are up almost 35% since the war with Iran began. But in his closing message before the polls open, President Trump said oil prices were coming down. >> Oil prices are plunging now. They're plunging. A record nobody's ever seen a plunge like this, and they'll be down. I hope people realize that when they go into the voting booth, because we had to stop Iran from having a nuclear weapon. If we allowed Iran to have a nuclear weapon, this country could never function the same way. >> As for the war, some new developments, the Wall Street Journal is reporting the U.S. struck Iran's Kesha Myland in the Strait of Hormuz yesterday. And separately, a diplomat says Iran and the U.S. are reviewing the latest suggestions from mediators on how to bridge their divide. >> And in Ukraine, Karen President Volodymyr Zelensky says Russia carried out a massive overnight attack game primarily at power generation facilities and substations in the country's central, northern and western regions. The president says 29 people were killed in the central Zaporizha alone, and a post on social media. He said the Russians launched 289 attack drones, 17 ballistic missiles, and 59 cruise missiles. >> We turn to the markets now, Nathan. In futures, they are little changed to mix this morning after another tech-led sell-off on Wall Street. The Nasdaq 100 is now down 10% from its peak and has entered a technical correction, despite the sell-off. Jordan Jackson, global markets strategist at JPMorgan now said management says stocks are growing higher. >> So crisis of confidence is the way I would put it. And I think there's a growing kind of lack of confidence, or at least euphoria around a trade that has done very well for investors over the last three and a half to four years. And so I think a little bit of this consolidation is healthy. Once we get past the midterms, you've got another cloud of uncertainty that's behind the market. So we'll get a sense of what policies could look like on a go-forward basis. But I think, you know, all things point to a market that, you know, this is a buying opportunity. >> And JPMorgan now said management's Jordan Jackson, despite being up 11% this year that Nasdaq 100 index has suffered three corrections in 2026. >> Well, we're taking a look at Apple shares this morning, Karen. They are down in the pre-market about 4.5% despite delivering a forecast for the holiday season that topped Wall Street estimates. Investors are giving Apple a mixed first report card for new CEO John Ternis. Bloomberg tech host Ed Ludlow says Apple does face headwinds. >> This will be the first quarter where the iPhone duo shows up. And the state of play is very much that demand for the iPhone duo is running ahead of Apple's ability to supply. Memory pricing in particular is still in issue and so memory supply as well. And going forward, you know, they will ask when does that kind of imbalance demand running ahead of Apple's ability to supply change and reverse and that, you know, it is too early to tell. Apple acknowledging that it's dealing with a sharply high component cost. Bloomberg's ad load load notes John Ternis became CEO on September 1, putting him in charge for the final month of Apple's fourth quarter. We'll be in more big checker innings after the bell yesterday, Nathan, despite raising his annual revenue forecast, volunteer technologies issued a quarterly outlook that pointed to a potential slowdown in sales growth, and that has shares down more than 6% this morning. The AI powered data on analytics platform that counts the U.S. military among its chief customers, has risen almost 900% over the past three years. And now, Karen, some of Wall Street's biggest investors are weighing in on the pros and cons of artificial intelligence. We get that story from Bloomberg's John Tucker, John. And Pymco, CEO, Manny Roman, among a growing number of investment managers warning a bubble risks in the AI. Someone is going to lose. It's not a win-win situation for everybody. And more bullish sounding is Goldman Sachs, CEO David Solomon, who sees potential business from the hyper-scalers desperate to raise money. I can't tell you that it'll go without bumps in the coming years, but I can't say when you step back and you look kind of 5-10 years from now, I'm very excited. Well, the executives are gathered at the 2026 Global Financial Leaders Investments Summit in Hong Kong. The world's biggest alternative asset managers and securities firms have been pouring money into AI at unprecedented pace, betting that surging demand is going to underpin returns. But many of them are now on watch for ripples in the market after a painful downturn. I'm John Tucker, Bloomberg Radio. All right, John. Thank you. While job cuts are coming to Disney, Bloomberg News has learned the entertainment giant is moving toward eliminating thousands of positions. It's also asking some managers to target 20% in annual cost savings. Sources say some of Disney's operations, which include theme parks, TV channels, and the movie studio will be affected. Disney has cut billions of dollars worth of costs and eliminated thousands of positions in recent years. Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr, Michael Good Morning. Good morning, Karen. We're learning about some of the nine victims of Sunday's Learjet crash in Florida. The victims included a 20-year-old woman who got her pilots license in 2023 while still in high school and a technology entrepreneur and his family. Natalia Fagara was among nine people who died in the crash near West Palm Beach. Fagara's mother says her daughter was the co-pilot flying from Austin, Texas to the Bahamas. As for the crash itself, NTSB board member Tom Chapman talked about what the crew told air traffic control. While in contact with Miami Air Route Traffic Center, the crew transmitted that they were at 35,000 feet with moderate turbulence, with altitude deviations of about 700 feet. The crew reported the outside temperature was -47 Celsius, which is -53 Fahrenheit. And they were managing the ice, but were in moderate turbulence. The crash also killed Adam Robinson, his wife and their two young children, Robinson was founder of Retention.com. Three motions were presented to the judge overseeing the case against Lindsay Clancy. The Massachusetts mother accused of killing her three children. Clancy's defense attorney argued in a Plymouth courtroom Monday the case should be dismissed on the grounds of double jeopardy. Kevin Reddington also asked Judge William Sullivan to preserve jury records regarding the holdout juror. The juror's attorney Heather O'Connor spoke outside of court following the arguments. "I personally do not think that the threshold for the judge to even really consider any of the evidence that was presented was met whether they will or not. The judge will. I don't know." A hearing is scheduled for November 16th, with a potential retrial set for March. A child died of measles in New York State amid an ongoing outbreak in the state that has affected more than 170 people. According to Governor Kathy O'Connor, the death is New York's first measles-related death in 30 years. The death occurred in Lewis County located in northwestern part of the state. The U.S. is experiencing its largest measles outbreak in decades, with the CDC recording more than 4,050 cases in 2026. Global news, 24 hours a day, and whenever you want it with Bloomberg News Now, Michael Bar. And this is Bloomberg. Thanks, Michael, time now for our Bloomberg sports update, and for that, we bring in John Staschauer. Thanks, Guillermo. That I picked all in Seattle and Chicago got three touchdown runs from DeAndre Swift. The Bears beat the Seahawks 34 to 17 to go to six and two. The Seahawks last year won the Super Bowl when 17 and three, they've now lost three of their last four games. Quarterback change had Arizona after Gardner Minchoo came off the bench, replaced Jacobi Brissette, and led the Cardinals of that comeback when it Dallas Minchoo will get the start this Sunday, opening night in college basketball, and number one Florida opens the season with a win over Miami. That's your Bloomberg sports update. Stay with us more from Bloomberg Daybreak coming up after this. What lands well in Cape Town, where there's a lot of rugby followers, avid fans, versus what might work in Hong Kong or Dubai, is all different. 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She reports that the company culture is defined by Musk, and job candidates must understand that a commitment to SpaceX means adhering to this culture and exhibiting loyalty to Elon Musk. Prospective hires are told that the job will require stamina, including in job ads that candidates, quote, "must be willing to work extended hours and weekends as needed." In major perk for all that hard work, employees access to equity, either the right to buy shares or payment in the form of restricted stock units that vest over time. That's the Bloomberg Tech Minute brought to you by ChachiPT. Running a small business takes everything you've got, but with Chase for Business, you're not alone. They bring together local support and a broad range of resources to more than 7 million customers. With a deep understanding of your day-to-day needs, they provide products and guidance built to help you thrive. 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For in the Senate, it seems like it could have been a tough map for the Democrats in the Senate just a few months ago. Where do things stand on this Election Day? Good morning, Nathan. Thank you for having me on. Yes, we're finally here at the Action Day. election day. Here's what we need to know about midterm elections. Incomments almost always fare poorly in them. In fact, since 2000, the only time in a midterm election cycle that the incumbent managed to hold onto both chambers of Congress was in 2002 and that was President George W. Bush after 9/11. So from a historical perspective, Democrats are positioned to do well tomorrow and add that to the fact that the latest polling and betting markets as you have alluded to have make it that the Democrats should be in a pretty good position to easily retake the House of Representatives. As you said, that's three seats only that they need to take up. Right now, they lead in congressional generic and congressional balloting by about just under 9%, and that should translate to a dozen or even more seats. And then the real question is the Senate, which is a closer call. Momentum seems to be very clearly moving in the direction that the Democrats should be able to defend their seats and then take up additional four seats. betting markets and polling has also put them in likely position to retake the Senate. But I think that's going to be a bit of a closer margin that we're going to see there. It's not going to be a landslide there. And I think where we need to exercise caution is what we make of the election results. So I expect us not really to see major surprises tomorrow. The surprise will be if we see surprises around the Democrats. And we're always sort of hamstrung by polling. But I think what we need to be cautious about is how much we read into even if we see a blue if tomorrow. Well, I have to ask how much stock we should take in prediction markets and polling. As you know, polling has been off in the past and Republicans are arguing in this cycle that they've been undersampled. Yeah, absolutely. I mean, look, we tend to think that in midterm elections, pollings are a bit polling is a bit more robust than in the case of national elections and presidential betting markets have performed better than polling in recent examples of midterm elections. And you know, the sort of conventional wisdom is people are putting their money behind it. But that does not mean that there aren't vulnerabilities baked into these systems. And exactly, as you say, there are instances where pollers are having to call multiple, multiple people who are registered as Republicans just to get a single Republican on their phone with them. So there is this perceived idea that there are less Republicans that are being reached by these polls, which could very well convert into realities of voting behavior tomorrow at the polling booths. Only about a minute left, but if the polls are right and we do get a return to divided government, at least one chamber of Congress, what does that mean for policy making in Washington? What could it mean for the markets? Yeah, I mean, this is a real issue, which is that the president is not a president with a vast legislative agenda, right? So even if we see a divided government, or if Democrats take back both chambers, we can't expect that Trump is going to be relying on Congress for any of the sort of ambitions that he has. He's going to continue to run his policy out of the White House, out of his office. As for Democrats, if they take both chambers, we know that Trump has already said he's going to be Mr. Vito. And it's very unlikely, Nathan, that the Democrats are going to see such a blue wave tomorrow that they're going to have a super majority in both houses, which is what they would need in order to overturn any of Trump's vetoes there. So we have to be very cautious about what this is going to mean about a radical, dramatic policy environmental change immediately after the elections. This is Bloomberg Daybreak, your morning podcast on the story's making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 991 in Washington, Bloomberg 92, 9 in Boston, and nationwide on Sirius XM channel 121. Plus listen coast to coast on the Bloomberg business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News now. It's the latest news whenever you want it. In five minutes or less, search Bloomberg News now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. If you're a business owner, you need a card that can keep up. With the Delta Sky Miles Reserve Business American Express Card, every day purchases transform into miles you can use towards future travel. So business as usual can lead to a well-deserved getaway. And for a limited time, card members can earn 200,000 bonus miles. The highest miles offered this year. Whether you're traveling for business or planning your next adventure, now's a great time to make every purchase go further. Apply today at www.delta.com/podcast. Offer ends November 4th, minimum spending requirements in-term supply. Quick question for you. How much of your day has spent typing? 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