Bloomberg Daybreak: US Edition

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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Apple delivered a forecast for the holiday period that topped Wall Street estimates, even as it failed to impress investors who have bid up the shares in recent months. Revenue will rise 7% to 10% in the fiscal first quarter, which runs through December, Apple said during an earnings conference call Monday. Analysts had estimated 6.1% on average, according to data compiled by Bloomberg.
The shares slumped about 4% in late trading, a sign of the lofty expectations surrounding Apple. After a rally added roughly $1 trillion in market value to the company since late June, investors were betting on a blockbuster report.

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with Bloomberg Intelligence senior tech analyst Anurag Rana and Bloomberg News managing editor for global consumer tech, Mark Gurman.

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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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Wall Street got a reality check as a bruising selloff in technology shares fueled concern the artificial-intelligence frenzy that has powered the equity bull market might be overblown. Disappointing tech results spurred the worst drop for stocks since June, with the Nasdaq 100 falling 3.5% and briefly crossing the threshold of a technical correction. Intel Corp. slid the most in over four decades as its outlook missed estimates. Amazon.com Inc. slipped 1.4% on greater capital spending. The S&P 500 dropped 1.8%, breaching its key 100-day moving average.

For a quick recap of a bruising trade for big tech and equities broadly, hosts Tim Stenovec and Jess Menton speak with Bloomberg Markets Live blog managing editor Kristine Aquino.

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

On today's podcast:

1) Just days ahead of the Midterm elections, President Trump canceled appearances in Kansas and Iowa and will instead hold "a large number of tele-rallies." The Republican National Committee said the tele-rallies "can reach more voters in the limited time left before polls close." The president has been campaigning nonstop — chiefly in states where Republicans are usually assured of victory — but this year faces robust challenges from Democratic candidates who have taken advantage of voter discontent over rising costs as well as the war in Iran.

2) Binance, the world’s largest cryptocurrency exchange, has suffered the industry’s biggest-ever hack, with $6.3 billion worth of funds affected and $3 billion in crypto frozen. The company will cover all losses and “user funds are safe,” it said, and withdrawals are expected to resume by Sunday as it works with law enforcement and completes a security revamp. Blockchain intelligence firm TRM Labs said North Korea was behind the heist, which it called “the largest crypto theft on record,” and attributed the attack to North Korea’s elite hacking unit, TraderTraitor.

3) Amazon shares dropped after the company reported greater capital spending than anticipated and the slowest growth in the core e-commerce business in three years. Intel shares also fell after its revenue forecast missed analysts' estimates, hurt by demand for PC processors and supply-chain problems with data center components. Overall, disappointing tech earnings accelerated a rotation out of the tech sector.

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Intel plunged in late trading after its revenue forecast missed analysts’ estimates, hurt by sputtering demand for PC processors and supply-chain problems with its lucrative data center components. The shares plunged in extended trading as much as 17%. The stock had gained 5.6% this year through Thursday’s close.

Meanwhile, Amazon shares dropped after the company reported greater capital spending than anticipated and the slowest growth in the core e-commerce business in three years.

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with Bloomberg Intelligence senior semiconductor analyst Kunjan Sobhani and Bloomberg Intelligence senior tech analyst Anurag Rana from Schwab IMPACT in Boston.

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

On today's podcast:

1) There are five days before the Midterm elections that will determine control of Congress. President Trump was campaigning in Ohio last night, where Republican gubernatorial candidate Vivek Ramaswamy is facing controversy over a political ad that features his Democratic opponent, Amy Acton's, estranged mother. While President Trump rallied Republicans in Ohio, former President Barack Obama hit the campaign trail for Democrats in Atlanta, Georgia. Meanwhile, the Democrat running for Senate in Alaska is facing a controversy. The New York Times is reporting Mary Peltola's team secretly recruited spoiler candidates to peel votes from Republican Senator Dan Sullivan, which includes a retired teacher with the same name. Peltola's campaign denies she was involved.

2) The Milwaukee Brewers are World Series champions for the first time in franchise history. The Brewers beat the Tampa Bay Rays in Game 5 on to clinch the franchise's first title.

3) Flávio Bolsonaro landed in the US after fleeing Brazil, accompanied by his wife and two daughters, and made a statement painting himself as a victim of a "politically motivated witch hunt." Bolsonaro's arrival in the US may add new strains to relations between Brasilia and Washington, and raises questions about his family's future as a force on the Brazilian right. The senator's departure from Brazil also raises questions about whether the Bolsonaro family can retain its leadership of the conservative movement Jair Bolsonaro built over the past decade.

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Alphabet reported quarterly sales and profit in the third quarter that fell short of expectations, a sign that the firm is failing to generate enough return to justify its massive investments in AI. The stock fell in late trading. Google’s parent company said sales, excluding partner payouts, were $111.2 billion for the three months that ended Sept. 30, just below the $111.3 billion that analysts had projected on average. Alphabet reported net income of $2.12 a share, falling far below Wall Street’s estimate of $2.99.

The company’s shares were down as much as 8.5% in after-hours trading.

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with Bloomberg Tech host Ed Ludlow.

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Bloomberg's Tom Keene, Jon Ferro and Lisa Abramowicz discuss remarks from Fed Chair Kevin Warsh following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.

Federal Reserve officials left interest rates unchanged and reiterated their commitment to containing inflation without offering a clear signal they might raise rates at their next meeting in December.

But Fed Chairman Kevin Warsh, in a press conference that followed the decision, said officials have “made clear our readiness to act as circumstances require, and we have shown our willingness to act.”

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

On today's podcast:

1) Israeli Prime Minister Benjamin Netanyahu edged past opposition leader Gadi Eisenkot in the country’s tight election with more than 70% of the votes counted. Netanyahu’s bloc was projected to win 54 seats and Eisenkot’s 47 in the 120-member Knesset, with 19 going to Israeli Arab parties. The outcome of the election is still uncertain, with neither Netanyahu nor Eisenkot yet having a clear path toward forming a government.

2) Brazilian senator Flávio Bolsonaro arrived in Miami after fleeing his country following a defeat in its presidential election, O Globo reported. A senior State Department official said the US would grant visas to Flávio and his family, as he faces multiple criminal investigations in Brazil. Flávio Bolsonaro was ordered to surrender his passports to Federal Police but failed to do so, amid concerns he posed a flight risk, according to a police official familiar with the situation.

3) The Federal Reserve is expected to hold interest rates steady on Wednesday despite inflation data for September coming in hotter than expected. Fed Chairman Kevin Warsh could face pressure to explain policymakers' rationale for not acting now after they voted unanimously last month to raise rates to address burgeoning inflation. The Fed will release a post-meeting statement and Warsh will hold a press conference to discuss the decision and potentially address concerns about inflation and future rate hikes.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Israel is holding its first election since the 2023 Hamas attack, with Prime Minister Benjamin Netanyahu seeking reelection, saying his military campaigns have improved security. Polls forecast a razor-thin outcome, with neither bloc likely to secure enough votes to claim a parliamentary majority, potentially leading to complex negotiations and a possible second election. The Israeli Arab minority may end up as kingmakers, with the two Israeli Arab parties offering to support a government led by former armed forces chief Gadi Eisenkot, who is leading the opposition against Netanyahu.
2) The US Midterm election for control of Congress is now just seven days away. President Trump was in Mississippi last night urging Republicans to turn out and vote for incumbent Senator Cindy Hyde-Smith. Today, President Trump continues his red state campaign blitz in Texas. He's set to hold rallies this afternoon in Corpus Christi and tonight in Lubbock for Republican Ken Paxton, who's locked in a tight Senate race with Democrat James Talarico. The president has been trying to ease voter concerns about higher fuel costs from the wars in Ukraine and Iran. While in Texas, Secretary of State Marco Rubio is expected to join President Trump in Port Arthur to show off a newly-arrived oil tanker with Venezuelan crude. It also comes as the average price Americans are paying for gasoline under President Trump has overtaken the average during the Biden administration.
3) Flávio Bolsonaro abandoned plans to challenge the result of Brazil’s presidential election, while his Liberal Party formally conceded defeat to reelected President Luiz Inácio Lula da Silva. The Liberal Party recognized the election result in a statement, while criticizing the increase of public spending in the run-up to the vote and its potential impact on the race. Bolsonaro said he would now seek to have Lula’s ticket disqualified, citing what he described as false information and the use of public funds for measures announced in the final weeks of the campaign.

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

On today's podcast:
1) President Luiz Inácio Lula da Silva won Brazil’s runoff election with 51.8% of the vote, defeating Flávio Bolsonaro who received 48.2%. Lula's victory will likely lead to market uncertainty and a potential selloff of assets, as investors had been expecting a Flavio Bolsonaro win to fix the country's fiscal accounts. Early indications pointed to a major rout, with an ETF tracking Brazilian equities in New York sinking 27% in pre-market trading, and a currency derivatives contract showing the real at 5.55 per dollar. Bolsonaro called for the annulment of Brazil’s presidential runoff after losing the election to Lula da Silva. Bolsonaro accused the Supreme Court of changing the rules mid-game when it mandated a last-minute extension of voting hours on Sunday.
2) President Trump said it's "getting to be decision time" on whether he will make a deal with Tehran or resume attacks as Iranian and Houthi threats against Americans continue to grow. The US is reducing diplomatic and military staffing in parts of the Middle East amid growing threats from Iran and the Iran-backed Houthi militants in Yemen. Iran is preparing to retaliate across the Middle East, including against Israel and the United Arab Emirates, in the event of a fresh US bombing campaign.
3) Democrats are preparing to launch congressional investigations into the administration's handling of files related to Jeffrey Epstein if they regain power after the midterm elections. Representative Robert Garcia said the Epstein investigation is going to be one of the top priorities, alongside probes into the Trump family's business dealings and allegations of corporate corruption. Any probe would ripple well beyond Washington, with Wall Street and corporate America already bracing for a wave of Democratic investigations, and major banks that had ties to Epstein's financial dealings could be called to testify.

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Kayla faces down her harasser in court. In New Zealand, an investigator summons a global army of hackers.

For official transcripts and additional information on this series, go to bloomberg.com/levittown

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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 next monetary policy decision from the Federal Reserve, along with U.S tech earnings.
• In the UK – a look ahead to the UK's annual budget.
• In Asia – a look ahead to the next monetary policy decision from the Bank of Japan.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) President Trump traveled to Iowa on Thursday to boost Ashley Hinson, the Republican Senate candidate locked in a tight race with Democrat Josh Turek. Trump’s visit is the first of two he is expected to make to the state before Election Day on November 3rd. After reliably voting Republican for the past decade, Iowa has become competitive territory once again thanks to high fertilizer and fuel costs wrought by Trump’s war on Iran and shrinking export markets for farmers due to his tariffs.
2) With a fresh infusion of cash to his super political action committee in the first two weeks of October, Elon Musk has now given more than $445 million in the current election cycle and become one of the biggest-ever contributors to such groups. The world’s richest person put $77 million into America PAC, Federal Election Commission filings show, in an effort to elect Republicans in November midterm contests.
3) Stocks steadied at the start of the European session, offering global investors some respite after a rout in the artificial intelligence trade, while further gains in oil prices kept sentiment cautious. Meantime, a gauge of the inverse relationship between US government bonds and AI-focused stocks has strengthened to levels last seen a year ago. It’s a sign the deepening tech selloff is sending investors back into bonds for safety, reviving a haven role that had faded as inflation worries and higher interest rates weighed on Treasuries.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) President Trump returned to South Carolina on Wednesday to bolster Darline Graham, whose campaign for a 6-year US Senate term representing the conservative state has become unexpectedly tight ahead of US midterm elections on November 3rd. Elsewhere, final debates were held in two of tighest Senate contests - Michigan and Kansas. Meantime, the Senate contest in the historically Republican state of Mississippi is drawing fresh attention in the final stretch of the election cycle, with Trump planning a rally to boost the GOP candidate and control of the chamber.
2) The US ordered some diplomats and their families to leave Saudi Arabia because of the threat from Houthi militants, as the Iran-backed group carried out more strikes from Yemen. At least four people were killed by attacks on an Aramco oil site and an eastern airport on Wednesday. The moves come as tensions escalate across the Middle East, with the US and Israel drawing up plans for renewed strikes on the Islamic Republic, according to the New York Times, and Tehran saying it struck more tankers going through the Strait of Hormuz.
3) Barclays Plc said it’s cutting 5,000 jobs, or about 5% of total headcount, as part of a “technology-enabled” effort to reduce costs as it adopts artificial intelligence across the bank. The bank reported third-quarter earnings Thursday that missed several key estimates. Barclays’ bond traders suffered the biggest slump on Wall Street during the quarter, taking the shine off a strong performance on the equities desk.

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Meta Platforms boosted its capital spending outlook and announced plans for a new class of nonvoting stock, escalating its already-stratospheric bet on artificial intelligence. Capital expenditures will be $135 billion to $145 billion in 2026, the social-media giant said during its quarterly earnings report Wednesday, raising the bottom end of the range from $130 billion. The moves show that Meta has confidence that its spending on artificial intelligence will bear fruit. Chief Executive Officer Mark Zuckerberg has struggled to persuade investors to accept the company’s ballooning expenses for ambitious AI bets. But in recent months, Meta has made headway with its technology.

Meta shares rose in after-hours trading on Wednesday. They had gained about 6% this year through the close in New York.

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with Ed Ludlow, Bloomberg Tech co-host.

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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) A recent slowdown of the SpaceX’s Starlink satellite system that enables Ukraine to fend off deadly Russian aerial assaults came from an order by Elon Musk, the company’s chief executive officer, the Wall Street Journal reported on Tuesday. Musk restricted the speed of Ukraine’s access to the satellite system, which hampered the ability of the country’s drones to carry out defensive and offensive missions, the newspaper reported, citing unnamed American officials and others. Russian President Vladimir Putin’s forces have been carrying out relentless attacks on Ukraine, including striking civilian targets.
2) Secretary of State Marco Rubio defended the Trump administration’s support for Ukraine, saying the nation “would not exist” without US backing. “If it were not for the assistance of the United States, including under the Trump administration, there would be no Ukraine right now,” Rubio told reporters on Wednesday during a visit to India. “Ukraine as a sovereign state would not exist.” Rubio made the remarks while responding to questions about a Wall Street Journal report that said Elon Musk, chief executive officer of SpaceX, ordered a recent slowdown of the Starlink satellite system that helps Ukraine to fend off deadly Russian aerial assaults.
3) Elon Musk openly endorsed the prospect of combining SpaceX with Tesla Inc., in what would be the biggest-ever corporate merger uniting assets from electric cars to AI data centers to rocket and satellite capabilities.The world’s richest man said Tuesday the boards of both companies had formed special committees of independent directors to consider the idea of a combination. “There’s a lot of merit to combining the companies,” Musk said on a conference call after SpaceX announced earnings that beat estimates.

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