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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin in Washington, where the White House is preparing for the return of Donald Trump. Vice President Kamala Harris called the former president yesterday to concede her loss on election day. Now, she is urging her supporters to embrace a peaceful transfer of power.
Now.
I know folks are feeling and experiencing a range of.
Emotions right now.
I get it.
But we must accept the results of this election.
But Vice President Harris says accepting the results does not mean conceding the fight that fueled her campaign.
I will never give up the fight for a future where Americans can pursue their dreams, ambitions, and aspirations, where the women of America have the freedom to make decisions about their own body and not have their government telling them what to do.
Kamala Harris says accepting an election result as a fundamental principle of a democracy, even in a loss. President Biden also spoke with President elect Trump yesterday and invited him to the White House. The president will address the nation about the election outcome this morning at eleven am Wall Street Time, and we will bring you those comments live on Bloomberg Radio and television.
Well Nathan, Chinese President Xijhin paying congratulated Trump on his victory. He also called for stable tie between the world's two largest economies. The early fairly warm comments from Beijing contrast with the testy relationship Trump had with China during his first term. A trade war erupted in twenty eighteen, and Trump has threatened to hit Chinese shipments with sixty percent levies.
Well Karen Now, Democrats are pending their hopes on the House to avoid a full Republican sweep. GOP control of the Senate is assured. Republicans have a fifth the two seat majority. So far, races are still left to be called in Arizona, Maine, Pennsylvania, and Nevada. In the House, Republicans currently hold a two six to one ninety one seat edge. Thirty eight congressional races are still being counted.
Well. Among the key races that were called yesterday, Nathan Democrats Tammy Baldwin of Wisconsin and Michigan's Alyssa Slotkin both won re election. Five Democrats and one Republican won races for House seats in California. In Virginia, Democrat Eugene Vinman won the race for the House sea left open by fellow Democrat Abigail Spenberger, who's running for governor. It could take several more days to learn the complete balance of
power in the House. California alone still has six races to decide, and absentee ballot rules make that stay notoriously slow in counting its ballots.
And as Democrats did suffer big election losses, Karen strategists say the party will have to immediately analyze what went wrong. We get more from Bloomberg News Senior editor Bill Ferries.
Kamala Harris lost basically across the board. She in terms of how President Biden performed four years ago, she lost even where she won, I mean even in key demographics. She saw her support fall. In a state like Florida that Joe Biden lost by three percentage points in twenty twenty, Kamala Harris is losing by thirteen percentage points. So there's got to be a big assessment of what went wrong,
what message voters, you know, we're really looking for? And I think in the end, You know when you talk to looked at exit polls of people saying the economy was a problem, immigration was a problem, and broadly they didn't think the country was on the right track. As an incumbent vice president, that was going to be a very difficult race to run successfully.
In Bloomberg's Bill, Ferries ads that Kamala Harris even underperformed in traditionally blue states like New York, where Trump secured the highest percentage of voters of any Republican presidential candidate since at least nineteen ninety six, ninth.
And one more election. We're keeping tams on the race for mayor of San Francisco. The city is still tabulating results from Tuesday's election, but so far political newcomer Daniel Lurie is holding his lead over current mayor London Breed. After fourteen rounds of counting philanthropist and Levi's air, Luri has more than fifty six percent of the ranked choice votes, with Breed at forty three.
Turning the markets now, Karen futures are higher. Adding to yesterday's historic rally, the S and P five hundred registered its best post election day ever, surging two and a half percent. The Dow rallied more than fifteen hundred points or three point six percent, and the Russell two thousand index of small cap stocks gained almost six percent. And Nastasia A. Moroso is chief investment strategist at I Capital, the reason.
Why small caps in particular rallying so much is because they are typically more sensitive to Republican majority, and so that's helping sentiment. You know, they're also more sensitive to the domestic orientation and potential for lower taxes, and of course the sensitive to rate relief, and so you kind of have this perfect combination of factors.
And I Capital Xanastaja Moroso says, treasury yields climbed across the curve as well. US tenure yields advanced seventeen basis points to four point four to four percent right now the ten years giving some of that back, it's at four point four to two. Bitcoin, which rallied nearly ten percent yesterday, is down one and a half percent.
Well, Nathan, the rich got richer after Donald Trump's election victory and possible right as sweep. We get that story from Bloomberg's John Tunker. John, Good morning.
Yeah, we're talking about a lot of money here, Karen, Good morning. The fortunes of the ten richest people in the world surged by a daily record after election Day. According to the Bloomberg Billionaires Index, the net worth of billionaires surged by sixty three and a half billion dollars. The biggest game was for the world's richest person, Elon Musk alone added twenty six and a half billion dollars to his pot. Amazon's Jeff Bezos and Oral Larry Ellison
were also among the top gainers. It's the biggest daily increase since Bloomberg's Wealth Index began back in twenty twelve. A bunch of the gains for the ulder rich. It came down to a surge in stocks. Musk, who campaign alongside with the President of lacked his pois to influence policy since Trump is found to give him an official role. Tesla shares in New York surged fifteen percent on Wednesday. In New York, I'm John Tucker, Bloomberg Radio.
Okay, John, thank you. Now that investors turned their attention to Washington and this afternoon's FED decision. We get a preview from Bloomberg's Michael McKee. The election results leave the FED little room for maneuver. Policymakers should go ahead with another quarter point reduction in the benchmark US lending rate, but the policy path they laid out at their September
meeting is now off the table. With interest rates rising on Trump policy inflation concerns, they will likely signal a pause in the rate cutting cycle until they have a better idea of how the current economy is performing and how far Trump will go with his tariff, tax and deportation proposals. There are no new economic forecasts coming out of this meeting. We'll get a statement on the policy rate, and most likely a lot of Chair Ja Powell saying
we don't know what happens next. Michael McKee, Bloomberg Radio. All right, Mike, thanks for full FED coverage. Stick with us for a special edition of Bloomberg's Surveillance The Fed The Sides with Tom Kean, Jonathan Farrell, and Lisa Abromoitz. It's coming up at one thirty Wall Street time on Bloomberg Radio, Bloomberg Television, and on the Bloomberg Podcasts YouTube page.
Well, Nathan, we also have a policy decision overseas. The Bank of Inland is expected to lower interest rates for the second time this year due to an unexpectedly fast slowdown in inflation in Asia.
Nissan has cut its annual profit outlook and announced plans to eliminate thousands of jobs globally as the carmaker looks to counteract deteriorating sales in major markets. Nissan says some nine thousand positions will be slashed globally.
Here in the US, Nathan Shares a quall com. They are up almost eight percent this morning. The world's biggest seller of smartphone processors gave a bullish sales forecast for the current period, pointing to bright spots in the mobile device industry.
Karen Lift shairs are lifting higher by the two twenty three percent.
This morning.
The right Hanling Company issued strong earnings guidance for both this quarter and the full year. Lift also introduced a new three dollars a month plan that allows commuters to avoid surging prices during peak hours.
And it's 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 German, Chancellor All off, Shoals called for a snap election after divisions over how to revive the lockluster economy triggered the breakup of his three party ruling coalition. The crisis came to a head with Shols's shock dismissal of Finance Minister Christian Linder late last night, saying that the chairman of the pro business FDP party had refused a proposal to suspend rules limiting
new government borrowing. Shoals called for a confidence vote in January, with a goal of pulling forward next year's federal election to March. From September, California fire officials are working to battle the growing Mountain Fire. It has already burned more than fourteen thousand acres, and evacuations have been ordered for several areas, including the city of Camarillo, Ventura County Fire Chief Dustin Gardner.
Every firefighter in the region, every law enforcement agency available, every helicopter, every fixed wing aircraft, everything we've been able to get a hold of is here fighting this fire.
The fire is fueled by dry conditions and Santa Ana winds gusting up to eighty miles per hour. Cuba is reeling after a powerful Category three hurricane ripped across the island and fierce winds knocked out the country's power grid. Forecasters had warned that Hurricane Raphael could bring life threatening storm surges, winds, and flash floods the Cuba after ravaging
parts of the Cayman Islands and Jamaica. UNSEF is asking for help to provide relief to a large group of children affected by a historic drought along the Amazon River. Antonio Merrow is an emergency manager with the organization.
This is basically the strongest drought in history in the last century, and unfortunately, there are no improvement expected in the coming weeks and months. Several tributaries of the Amazon River are literally drying up.
UNICEF Santonio Morro says they estimate more than four hundred and twenty thousand children are currently affected by this global news twenty four hours a day and whenever you want it with the Bloomberg News Now, I'm Michael Barrn. This is Bloomberg Karen.
Sorry, Michael barr Thank you time now for the Bloomberg Sports Update, brought to you by tri Estate Audi. We bring in johnstone Shower, John, good morning.
Good morning, carry on the end to a four game road trip for the next They won the first two but lost the last two. Trip ended in Atlanta Hawks. The Knicks had a five point lead and possession with three minutes left. The Hawks won on a thirteen to one run. Atlanta won one twenty one, one sixteen and Preston game for Hawks rookie Zachkarry resa Chet first pick of the draft. The Frenchman scored thirty three points. Carl Anthony Tams led the Knicks with thirty four Warriors won
in Boston one eighteen one twelve. Jason Tatum thirty two points in the loss. He was facing Steve Kerr, his Olympics coach who bench Tatum a couple of times last summer in Paris. Cleveland off to its best start every now nine to zero with a win at New Orleans Hockey. The Capitals on Alex Ovechkin third period goal beat Nashville three to two, and for Ovechkin career goal number eight sixty one eats thirty four more to break wings Reski's
all time record. College hoops Columbia up sat Villanova in ninety to eighty. High hopes this season for Rutgers.
A couple of big time freshmen.
The Scarlet Knights opened up seventy five fifty two over Wagner Baseball General manager meetings going on in San Antonio and in town. The uber agent Scott Boris his client, his biggest client, Free agent Wan Soda.
I'm getting an opportunity to acquire a player at this age, with this skill, with this character, with this experience, with so much performance gradient established that they understand the surplus value of it.
Many expect Soto's decision to come down to staying with the Yankees or joining the Mets. John Stashemer, Bloomberg Sports can.
Nathan Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning.
I'm Nathan Hager. Washington and the world are preparing for the return of Donald Trump to the world's most powerful office. Vice President Kamala Harris says she is committed to a peaceful transition.
While I conceive this election, I do not seed the fight that fueled this campaign.
Vice President Harris says accepting an election result as a fundamental principle of democracy even in a loss for more. We are joined by Lindsay Newman, geopolitical risk expert and columnist at G zero Media. Lindsay, welcome back. Did we hear from Vice President Harris an implicit rebuke of former president now President elect Trump, who still has yet to concede his loss four years ago? Good morning, Good morning.
Yes, we certainly heard what she was saying about, you know, the fight she carries a fight forward. I think the big question, Nathan, is what is the fight that the Democratic Party is caring forward? In the sort of postmartum that we're all doing this morning and yesterday? The question is did the Democratic Party and did Kamala Harris's campaign?
Was the strategy a flawed strategy, particularly focusing in on these points around freedoms and democracy and turning the page when it seems very clearly that the question that voters really had in their minds was the one Trump was asking, which was are you better today than you were four years ago?
Out?
So, how does the strategy change as Democrats reassess what they did wrong this time around?
Well, if you're in the Democratic leadership, you definitely have to be doing some soul searching and asking yourself, what do we need to do differently. This is not just a we can roll into twenty twenty six and do more of the same. There are some deep flaw there's some deep divisions within the party, intered party, divisions around the future of the policy, the message of the policy.
There's a progressive wing, there's centrists. This is not a united party, and that really hurt them yesterday on Tuesday and really helped the Republicans. You see the map turn red across the board, and it's because this is a mandate for Donald Trump. He did not just win, he won convincingly. He'd beat expectations, pulling and betting markets. He's now for the first time, not only won the electoral college, but he won the popular vote. So this is not
a small loss for the Democrats. This is a time for them to really look at what they're going to do differently.
By contrast, are you saying that the Republican Party is more unified than the Democrats and what could that mean for policy making under a Trump two point zero?
Republicans are clearly more united than Democrats are, and as we've seen in the demographic analysis, they are picking up. They're widening the umbrella. They are reaching wider swaths of the American population than they had in twenty twenty and in midterm elections going into January twenty and twenty twenty five. Trump and his key allies around him, his advisor around him, are clear had four years to prepare for this moment.
This is not a twenty sixteen redo. They are clear, whether it's Project twenty twenty five, what their policy agenda is. Believe what he's been saying on the campaign trail around tariffs, around trade policy, around corporate tax reductions, around potentially sealing the border. You know, bigger question marks around these promises to end the war in Ukraine immediately, even before stepping into office. There's a lot of combing through what that
could actually involve in since his victory on Tuesday. But absolutely Donald Trump and his advisors are ready and prepared and know what their intentions are.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg dabray