Democrats Sweep on Election Night; Supreme Court to Hear Tariff Arguments

So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300,000 can use AI to fill their HR questions, resolving 94% of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM. When you're running a business, the best days are the ones where priorities stay on track. For mid-size and large companies, that isn't always easy. Risk can touch multiple parts of an organization at the same time, often in ways that aren't immediately obvious. It might involve property, liability, or cyber. It could stem from regulatory requirements or challenges tied to a specific industry or the scale of an operation. At that level, managing risk becomes an ongoing discipline, not a one-time decision. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. That means working with companies to identify where they're exposed, decide what matters most, and put practical standards in place, so risk is managed as part of day-to-day operations. And when losses do happen, The Hartford can pair that risk control work with insurance coverage grounded in underwriting, risk engineering, and claims experience developed over time. Learn more at thehartford.com slash risk mitigation. Wise is the smart way to manage the currencies you need around the globe. When you send money abroad using your bank, you could get hit with hidden fees and exchange rate markups. There's a better way. Try Wise. Wise uses the exchange rate you'd usually find on Google with no unwelcome surprises. Plus, most transfers happen in under 20 seconds, which means your money arrives in less time than you've been listening to me. It's simple and free to sign up when you download the Wise app. Be smart, get wise. T's and Cs apply.

Bloomberg Audio Studios. Podcasts Radio News. Good morning. I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, Election Night 2025 is in the books from coast to coast, and we begin this morning with results from two key elections in the tri-state area, starting in New York City. The Big Apple has a new mayor. Bloomberg's Lisa Mateo joins us in Manhattan with more on the historic win for Zohran Mamdani, Lisa. Nathan, New York City residents, they really came out in force, producing the highest turnout in more than half a century with more than 2 million votes counted. And in the end, it was Democratic Socialist Zoramundami, who came out on top receiving 50.4% of the votes. Tonight you have delivered. for change!

And Zohran Mamdani, he energized young voters with the campaign for a more affordable New York City. Former Governor Andrew Cuomo, who ran as an independent after losing to Zohran Mamdani in the primary, he garnered 41.6 percent with 98 percent of the votes counted. In his concessant speech, well, Andrew Cuomo said he is ready to help in any way he can. We will all have... any way we can because we need our New York City government to work. We want it to work for all New Yorkers because our city is the greatest city in the world. Macomo also said that the tally show almost half of New Yorkers did not vote to support government agenda that he said, quote, makes promises that we know cannot be met. Now, Republican Curtis Sliwa, he received 7.1% of the votes. When Zohran Mamdani is sworn in on January 1st as the 11th mayor of New York, the 34-year-old state lawmaker from Queens will be the youngest person to hold the office in a century. He'll also be the New York's first Muslim mayor and first person of South Asian descent. Nathan. All right, Lisa, well, it was a big night for Democrats as well in New Jersey, wasn't it? Yeah, sure. Mikie Sherrill, she has become the 57th next governor of New Jersey with 56.2% of the votes defeating Republican Jack Ciattarelli, who was actually backed by President Donald Trump. It was Jack Ciattarelli's third bid for mayor. But this is more than a local story. I mean, Cheryl's win is drawing national attention as a potential preview for what's to come in the 2026 midterms. She touched upon it during her acceptance speech in Eastman. Bronzwick last night. Here in New Jersey, we know that this nation has not ever been, nor will it ever be ruled by kings. And Cheryl? She is a former federal prosecutor, Navy helicopter pilot. She won the support of former President Barack Obama. She will replace Democratic Governor Phil Murphy, who was barred from law by seeking a third consecutive term. Her victory actually marks the first time in 60 years that one party has won three consecutive gubernatorial elections in the Garden State. Lisa Mateo, Bloomberg Radio. All right, Lisa, thank you. And another key race in New Jersey, former Governor Jim McGreevy and James Solomon will take part in a December runoff election in the race for mayor of Jersey City. With 92% of the vote in, Solomon received 29% while McGreevy got 25.4. They were the top two vote getters in yesterday's nonpartisan election, but needed to get to 50% to declare victory. Well, the Democratic victories, Karen, continued in Virginia. Abigail Spanberger is the Commonwealth's next governor. We sent a message to the whole world. that in 2025, Virginia chose pragmatism over partisanship. Abigail Spanberger defeated Republican Winsome Earle-Sears, 52 and a half percent to 42.3 percent, with nearly all the votes counted to become Virginia's first female governor. The former congresswoman and ex-CIA officer ran on economic issues and argued that President Trump's tariffs and government cuts have added to uncertainty in the state. We get more from Bloomberg's Joe Matthew.

To note, nearly all the funding for the committee and support of the band, Denver Kids versus Big Tobacco, came from Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent company of Bloomberg Television and Radio. McCarran, another major story we're following this morning is that deadly plane crash in Kentucky. At least seven people were killed. Nearly a dozen injured after a UPS cargo plane crashed and exploded shortly after takeoff from Louisville. Craig Greenberg is Louisville's mayor. I'd like to send my prayers to the families of the victims of this tragic crash. The aircraft was at UPS MD-11 with three crew on board. It just had taken off on a flight to Honolulu when it crashed in an industrial area close to the airport. Let's turn to Washington, Nathan. The government shutdown has reached a new milestone. It is now the longest in U.S. history at day 36, and the standoff with Democrats continues for Senate Majority Leader John Thune. I still don't know exactly what it is they want. We have... accommodated, a lot of their questions and concerns. They want to have a discussion about health care. We offered that up a long time ago. And Senate Majority Leader John Thune says he hopes this will be the week they can negotiate an end to the impasse. But even if they do, they'll face another funding fight. The stopgap spending bill, the House passed in September expires in a little more than two weeks. Meanwhile, military pay and partially funded food aid are likely to run out before the end of the month. The Congressional Budget Office estimates the shutdown will cut fourth quarter GDP by up to two. percent if it continues for eight weeks. In Washington as well, Karen, the Supreme Court is set to hear arguments about whether President Trump can use the International Emergency Economic Powers Act to impose import taxes. After lower courts ruled, he exceeded his authority. Bloomberg's Amy Morris has more from Washington. Earlier this week, on his way back to Washington, President Trump on board Air Force One said he would not attend the hearing, but called it an important decision. I think it's the most important decision in the history of our country. Without our being able to use tariffs, really would suffer tremendously from a national security standpoint. There are other ways the president can impose tariffs, but those come with more limits and procedural restrictions. And while Trump's Supreme Court appointees have generally backed the president, this case will be the first time the court will directly consider Trump's assertions of sweeping presidential power. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Let's turn to the markets now where futures are mostly lower following yesterday's sell-off on Wall Street. A global chip route saw roughly $500 billion erased and combined market capitalization from the Philadelphia Semiconductor Index and a Bloomberg gauge tracking Asia chip stocks. Well, one chip stock under pressure this morning, Karen, has advanced micro devices. Those shares are down more than 4%. The main contender to Nvidia in the artificial intelligence chip market failed to impress investment.

with its revenue forecast. AMD stock had more than doubled this year heading into that earnings report. Shares of super micro devices. They are down more than 8.5% this morning. The server maker missed reduced estimates for first quarter sales and profit. It also gave a disappointing earnings forecast for the current period, reinforcing concerns about its ability to capitalize on demand for AI equipment. Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Monica Ricks. Monica, good morning. Well, good morning, Karen, and we watched a lot of other key races last night in several states. Let's start in New York. Voters weighed in on six proposals in New York City, but the big ones were three housing proposals, props two through four on the ballot. The City Council had been very vocal about them leading up to Election Day, arguing that changes would weaken their control over neighborhood development. But advocates say the measure... were crucial for building more housing quickly, and New Yorkers agreed, passing all three between 56.8 and 58.3 in favor. New Yorkers also voted in favor of Prop 5, which would replace borough-controlled paper maps with a unified digital map of New York City. That won a favor of 73 to 27%. And Prop 6 was voted down. Voters did not want to hold local elections in years when presidential elections were held. The no votes took with 53% to 47. This would have moved local elections from odd number years to even numbered to increase voter turnout. New York State's ballot proposal won still tight. 89% of the votes are in so far with 52% of votes approving a measure that would amend the state constitution to authorize an expansion of the Olympic sports complex in Exx County. That's located within the state's protected forest preserve. The special election for New York's 115 State Assembly District, that's still too close to call, even though Democrat Michael Cashman has declared victory over Republican retired state police major and troop commander Brett Davidson. This district covers all of Clinton County, Franklin County, and a few towns in Essex County. The winner would replace Democrat Billy Jay Jones, who stepped down back in September after nearly a decade in office. So far, Cashman's leading with 52% of the vote. Democrats also scored big in mayoral races over around New York State Democrat Dorsey Applers won an overwhelming majority to become the first black mayor in Albany's history. Sharon Owens, also the first black mayor in Syracuse now. Sean Ryan won the race for Buffalo's mayor. And Mayor Malik Evans won a second term in a landslide in Rochester's mayoral race. Over in New Jersey, all 80 seats in the state's general assembly were up for grabs. And Democrats had held a 52 to 28 majority in the chamber heading into Tuesdays. election. A few races still close to call this morning, but it looks like Democrats will hang on to that majority. The current total is 49 to 19 seats. And Pennsylvania voters retained three state Supreme Court justices. They preserve Democrats 5-2 majority. The incumbents there surviving to keep their seats. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Monica Ricks and this is Bloomberg. Thanks, Monica. Time now for our Bloomberg Sports Update, and for that we bring in John Stashauer. Thanks, Karen. At the NFL trade deadline, the Jets traded maybe their two best players, cornerback sauce Gardner to Indianapolis for two first-round picks and defensive linemen Quinn and Williams to Dallas for first and second round picks. The college basketball season begins with...

Purdue ranked number one. The Boilermakers had an easy season opening win. Duke beat Texas 75 to 60. Oklahoma City Thunder defending NBA champs and 8-0 this year. They beat the Clippers in L.A. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions, buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S&P 500. Or, if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by Public Investing. Brokridge services by Open to the Public Investing, Inc., member FINRA and SIPC. Advisory services by Public Advisors LLC, SEC registered advisor. Complete disclosures available at public.com slash disclosures. Innovation is what gets your business to market, and Wasabi is designed to give every business a shot at competition. How? Break free from skyrocketing storage costs and unpredictable egress fees from old and top-heavy legacy providers. You know, the big guys. Wasabi is the world's hottest cloud storage company and the go-to provider for professional and collegiate sports teams and leagues around the world. And here's why, innovation. From Wasabi's AI-enabled intelligent media storage, Wasabi Air, to the industry's only cloud storage service with triple protection against cybercriminals, data deletion, and ransomware, the world's top companies trust Wasabi. Remember, Wasabi is up to 80% less than market competition and doesn't charge us sent for businesses to access their own data. Wasabi, another championship story. Check them out for free at wasabi.com. Wasabi Hot Cloud Storage, proud partner of IHeart Podcast Network. Amazon Health AI presents painful thoughts. I can't stop scratching my downtown. Yeah, but I'm not itching to go downtown and tell a receptionist I'm here to talk about my downtown. Some things you'd rather type than say out loud. There's no question too embarrassing for Amazon Health AI. Chat your symptoms and get virtual care 24-7. Health care just got less painful.

Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. And good morning. I'm Karen Moscow alongside Nathan Hager, and election night 2025 is in the books. And it was a democratic clean sweep in the major races in New York, New Jersey, Virginia, and California. A great night for self-described democratic socialist mayor-elect Zohran Mamdani. Tonight you have delivered. And again, that is Zohran Mamdani in New York. We're joined now by Bloomberg, daybreak editor Mark Perrier. Mark, good morning. Let's start in New York. I can't get past this 2 million people coming out to vote and us saying it's the highest turnout in more than half a century. So a lot of people came out to vote in this election. It was a big deal. What did it for Zohran Mamdani? Good morning. Definitely a resounding victory. New Yorkers waking up to a different political landscape in the city. I think the lure here was the cost of living. He definitely appealed to a younger electorate, really hitting on wanting to bring change to the city. And that definitely appealed to the wider electorate in the city. Affordability and change, though, those are big undertakings. Can you do it? Lots of challenges ahead. His populist approach definitely will have a lot of challenges. He's got to find the funding to cover these bold plans of his. And he cannot forget Wall Street. I mean, that's a fact. I mean, he's got to, in my opinion, reach out to Wall Street and make it work. So interesting last night, late last night that Bill Ackman reached out. through Twitter, through X, saying, you know, I'm here for you, if you need be. Very interesting. I think there's potential there to work. But again, very strong populist message, but there has to be coalition building here. Yeah, well, there are also wins for the Democrats in New Jersey and Virginia. We also saw that redistricting vote in California that passed as well. Does this tell us anything about the midterms coming up?

I think it does. I think we're seeing a platform strategy forming within the Democratic Party that will hit on the cost of living. That's certainly proved to be beneficial to the Democrats in Virginia and New Jersey. So I think we're going to see them hitting. on that. But again, within the Democratic Party, you have fraction and debate, you know, between a younger, more progressive, you know, more progressive activists and a more moderate wing. They need to work on that. They need to be on the same page moving forward. And, but when you look at the bigger picture, when you talk about the same page moving forward, I mean, these were not major battleground states, obviously New York isn't, New Jersey, isn't California, isn't. So is there a really a bigger takeaway from this, or is this mostly what we could have expected in terms of election victories? It's what we were expecting, but I think they needed to see, the Democrats needed to see. positive headlines this morning, hitting every major newspaper in the country. And that's what they've achieved. It's a good look for them this morning after, you know, suffering a lot, you know, a major loss to Trump last year. So I think it's all about re-energizing the party and then moving forward with bigger victories. All right, Bloomberg Daybreak editor Mark Perrier joining us this morning. Mark, thank you. Nathan. All right, Karen, thank you. And for more analysis on Election Night 2020. We are joined now by Terry Haynes, the founder of Pangea Policy. Terry, as we've been saying, it was a Democratic sweep on the states of New York, New Jersey, Virginia, California. Is this a Democratic springboard into 2026? Good morning. Good morning, Nathan. It is a little bit of a moment of clarity for Democrats, that's for sure. To add on to a point that was just made earlier, Democrats winning races, they should win as the bare minimum test. Democrats passed it last night. Reviving Democrats nationally is going to take a lot more than doing the minimum. And you've got two approaches here. You know, you've got a kind of this jarring juxtaposition between New Jersey and Virginia centrists who focus on, as Governor-elect Abigail Spanberger in Virginia said, pragmatism and problem-solving versus Zohran Mamdani, who has taken this sort of pie-in-the-sky approach. emphasizing things that by and large you really can't deliver uh... so you know democrats by and large have a choice here and uh... on paths

But that path is going to have to involve actually solving problems rather than expressing solidarity with the problems themselves. To that point, Terry, there was a focus from Zohran Mamdani and the gubernatorial or the governors elect now in New Jersey and Virginia on economic issues, whether they expressed it in different ways. Does that... point to a strategy for Democrats in red states next year. It does, yeah, absolutely. But the Democrats are going to have to do more than express solidarity with the struggles of people. They're going to have to not only show how they're going to solve it, but you can look at the kind of the petri dishes of Virginia and New Jersey is offering the first tests in whether those Democrats can be successful. uh... mom done he's got his own problem and then that problem is as i say is in part that his uh... reach exceeds his grasp and that he needs uh... albany to help uh... but he's also got a choice does he become a builder and a change agent to to solve what he can and bring along with him uh... by doing the hard work of negotiating and persuading uh... with the rest of uh... new york state uh... democrats including national leader Chuck Schumer and uh... or does he become kind of uh... bill de blasia redux and uh... in merely promise without uh... delivering uh... and that's uh... that's the thing to watch in new york because if that doesn't happen with the kind of spotlight that man downy now has on him if that doesn't happen uh... his failures could actually read out to the benefits of trump and republicans in the midterms Does Mayor-elect Zohran Mamdani have a problem with President Trump as well? We saw the president on Truth Social last night during Zohran Mamdani's victory speech, saying, and so it begins. He's threatened to cut off federal funding. He's threatened to deport Mayor-elect Zohran Mamdani. What's in store for New York City now?

Zohran Mamdani should be careful what he wishes for because in this particular time of politics, both parties have shown that they're entirely capable of using whatever levers are available to them. So I would take as serious Trump's threat to limit or even eliminate, if possible. funding to new york city and uh... you know just that by the same token uh... you have a situation in uh... in washington where National Democrats have decided that it's worth keeping the government shut down and causing delays to all kinds of services, whether it be SNAP, whether it be air traffic, whether it even be the data that markets and the Fed need in order to keep going for the sake of political gain. So there's a situation here where... you know, the kind of the bare-knuckleness of politics is kind of reaching a new dimension here. I'm curious whether the election results, these victories for Democrats, could lead to a shift in strategy from either of the parties on the government shutdown now. I told markets last night, and we'll tell you this morning, I think there are two negatives and a positive from the situation. The first negative is shutdown. Shutdown just got a lot more difficult to solve at a time where its effects are finally starting to bite. Democrats just got emboldened and got more difficult convinced that they should compromise with the immovable object, bad orange man. uh... and you've got the distributed you know more new york city centric you've got these jitters about uh... and about monday and what uh... and what he might do and how you might be able to to to work with him uh... if you're a wall street the market's positive is that it increases even more trump and republicans urgency to put in place as much as possible of their markets friendly economic and geopolitical agendas in the next twelve months so to the extent that markets like economically what Trump and Republicans are trying to do, which by and large they very much do, expect more of that and more quickly. This is Bloomberg Daybreak, your morning podcast on the stories 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 929 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. When you're running a business, the best days are the ones where priorities stay on track. For mid-size and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting. risk engineering, and claims experience. Learn more at thehartford.com slash risk mitigation. Policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut. I love the little everyday moments with my dog, especially treat time. But dental care, not always so fun. Until we found Greenie's dental treats. These are more than just tasty. They're vet recommended and designed to support the four areas vets check the most, plaque, tartar, gums, and breath. Their unique texture cleans down to the gum line and supports cleaner teeth after 28 days when fed daily. It's a simple daily habit that supports their health and gives us another moment to enjoy together. Greenies make health a treat. Shop now at greenies.com. This is Tony A.O. from The Real Report with Tony A.O. and Uncle Murder. You haven't noticed how everything keeps going up, rent, streaming, even extra social at your favorite burrito spot. But with Boost Mobile, you don't have to play the Willis Go Up soon game. Boost Mobile offers an unlimited talk, text, and data planned at a price that'll never go up. It's the same price you'll pay for life. Switch now for unlimited wireless at a price that'll never go up only at Boost Mobile. After 30 gigabytes, customers may experience slower speeds. Customers will pay $25 a month as long as they remain active on the Boots Unlimited. plan.