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Tesla and SpaceX lose $420 billion after midterms · Global Advisors Daily Business News

• 0:10
  Welcome to Global Advisors Daily Business News. I'm Sam. Today is Friday, the sixth of November 2026. Let's explore today's business headlines and what they mean for leaders. Please hit like and subscribe for daily updates if you find this useful.
• 0:29
  Elon Musk's business empire faced a sharp reversal in fortune immediately after the midterm elections. In just two days, the combined market capitalization of Tesla and SpaceX dropped by more than four hundred and twenty billion dollars. This massive loss of value reflects a sudden shift in investor sentiment, driven by the political outcome rather than changes in the companies' underlying operations.
• 0:51
  The primary concern for shareholders is regulatory. With Democrats taking control of both the House and the Senate, investors expect Musk and his companies to face increased scrutiny. According to market observers, this new political landscape could lead to formal probes and steeper hurdles for future ambitions, particularly in artificial intelligence and mergers.
• 1:11
  The fear is that a unified Democratic Congress will be less tolerant of the rapid expansion and consolidation strategies that have characterized Musk's recent growth.
• 1:26
  Democrats have reclaimed control of both houses of Congress in a decisive midterm victory. The scale of the shift is clear: the party gained at least 30 seats in the House of Representatives and secured a Senate majority of at least 54 to 44. This result hands the opposition a strong mandate to challenge the current administration.
• 1:44
  The political landscape in Washington is now poised for intense friction. Democrats have vowed to use their new leverage to rein in President Trump, a move that could lead to two years of legislative deadlock. Business Day TV notes that these results will reshape the balance of power, making it significantly harder for the President to push through his remaining agenda.
• 2:04
  President Trump has acknowledged the defeat, offering a candid explanation for his party's losses. He admitted that the ongoing war with Iran contributed to the unfavorable outcome, though he maintained his stance on the decision to engage in the conflict. This admission highlights the weight of foreign policy on domestic electoral fortunes, even as the administration faces a newly empowered opposition.
• 2:31
  The Bank of England has raised its key interest rate to four percent, marking the first increase since 2023. Governor Andrew Bailey spoke following the decision, which lifted the policy rate by twenty-five basis points after the November meeting. This move brings the Bank Rate to four percent, as confirmed in the central bank's latest monetary policy summary.
• 2:51
  The Monetary Policy Committee explained that while there is currently no evidence of second-round inflation effects, the recent energy shock has heightened the risk. This uncertainty motivated the hike as a precautionary measure. Alan Taylor, an economist, described the move as a risk-management insurance hike rather than the start of a new tightening cycle.
• 3:10
  He noted that the larger energy shock significantly increased the inflationary impulse facing the economy.
• 3:17
  Looking ahead, the path for interest rates remains unclear. Taylor suggests the next move could be up, down, or sideways, depending on incoming data. With telling economic indicators expected soon, markets are watching closely to see if this single step is enough to anchor inflation expectations or if further action will be required.
• 3:41
  Artificial intelligence stocks are cratering after Citi Research flagged a rapid rise in data center bans and pauses across the United States. The firm notes that these regulatory halts were virtually non-existent through mid-2025. However, the count accelerated sharply in 2026, topping 500 by October. This exponential growth in restrictions has raised immediate concerns about the future of A.I infrastructure buildout.
• 4:05
  The market reaction was severe. The Philadelphia SE Semiconductor index dropped 10.2 percent, hitting its lowest level in more than six months, driven largely by losses in major players like NVIDIA and Broadcom. CNBC reported that Micron Technology and Advanced Micro Devices were also down significantly during the trading session.
• 4:24
  This decline reflects growing investor anxiety that regulatory headwinds could slow the expansion of hardware needed to support A.I models.
• 4:33
  Adding to the uncertainty, UBS forecasts that potential pauses in new data center construction following the United States midterm elections could further weigh on the sector. This projection suggests that political outcomes may introduce additional delays to infrastructure projects, compounding the regulatory challenges already identified by Citi.
• 4:53
  Investors are now watching closely to see if these combined factors will lead to a sustained slowdown in the A.I hardware boom.
• 5:06
  Binance has detailed how hackers accessed its wallets ahead of an October twenty-ninth theft of six point three billion dollars in crypto. According to the exchange, the heist actually began months earlier, in June, when a wallet infrastructure engineer downloaded a tampered version of an A.I coding tool.
• 5:23
  The breach started with a social engineering trick that could compromise any employee. An engineer was contacted through a legitimate job-hunting platform by an individual posing as a Project Director. This fake director then arranged interviews with an HR representative and another person claiming to be the C E O of a fictitious company, luring the engineer into downloading the malicious software.
• 5:44
  In response, Binance stated that ninety-eight percent of impacted tokens had been replenished. The company plans to increase investment in A.I-powered threat detection and establish a security research fund to better guard against these evolving tactics.
• 6:04
  Wonder, the food delivery startup founded by Marc Lore, has confidentially filed for an initial public offering. This move follows a period of aggressive expansion, during which the company raised more than three billion dollars in venture capital.
• 6:18
  That influx of cash allowed Wonder to spend at least one billion dollars acquiring various food delivery and restaurant businesses, a strategy that helped push its private valuation to nine billion dollars.
• 6:30
  The company's growth is built on a substantial physical footprint. Wonder operates numerous locations across the United States that host a wide array of restaurant brands. This model distinguishes it from pure-play delivery apps by controlling the production side of the equation, rather than just connecting customers to existing restaurants.
• 6:48
  While the confidential filing signals intent to go public, many key details remain under wraps. The company has not yet disclosed how many shares it plans to sell, what the expected price per share might be, or when trading could actually begin. For now, the focus remains on this strategic step to access public markets after building a massive private enterprise.
• 7:13
  China has blocked SoftBank Group's proposed acquisition of ABB Robotics' operations in China, creating a significant regulatory obstacle for the broader five point four billion dollar transaction. This decision highlights the increasing complexity of cross-border technology deals, particularly in sectors deemed critical for national security and industrial strategy.
• 7:34
  The blockage specifically targets the Chinese arm of the robotics business, forcing a reevaluation of how global tech giants navigate local regulatory landscapes.
• 7:44
  According to reports from Greg Bock and Suhasini Srinivasaragavan, SoftBank informed ABB that China's Office of the Working Mechanism for Foreign Investment Security Review prohibited the acquisition. This specific regulatory body is responsible for scrutinizing foreign investments that could impact national security.
• 8:03
  The prohibition is not just a bureaucratic delay but a definitive stop to the transfer of control over these particular assets, signaling a firm stance on foreign ownership in high-tech manufacturing.
• 8:15
  The impact of this decision is substantial, as it affects a major robotics operation that includes ABB's one hundred fifty million dollar Shanghai factory. This facility is a key component of ABB's global manufacturing footprint, and its exclusion from the deal complicates the logistics of the divestment.
• 8:32
  The blockage underscores the strategic importance of local production capabilities in the robotics sector, where physical infrastructure and supply chain integration are vital.
• 8:42
  ABB had previously signed an agreement to divest its entire robotics division to SoftBank. The Chinese blockage now threatens the integrity of this larger deal, potentially requiring renegotiation or restructuring. This situation illustrates the growing tension between global capital flows and national regulatory priorities, especially in industries at the forefront of artificial intelligence and automation.
• 9:10
  Toyota has announced a plan to return as much as eighty-nine billion dollars to shareholders by March 2031. This commitment, reported by Reuters, is more than double the amount returned in the preceding five years. The news caused the company's shares to rise seventeen percent in a single day, reflecting investor confidence in its financial outlook.
• 9:30
  The surge in returns is underpinned by strong recent performance. Net income attributable to shareholders jumped seventy-five point six percent year-on-year in the first quarter of fiscal year 2027. This profit growth highlights the resilience of Toyota's hybrid strategy, which relies on smaller batteries compared to full electric vehicles.
• 9:49
  By using significantly smaller power packs, Toyota reduces its exposure to volatile lithium and cobalt supply chains.
• 9:57
  Despite this profitability, the company faces significant headwinds from global trade policies. United States tariffs have cost Toyota billions in operating income, with projections indicating a continued drag on earnings for the coming fiscal year. Yet, even with these costs, the combination of hybrid efficiency and strong earnings has allowed Toyota to commit to this historic shareholder return plan.
• 10:19
  That's it from me, Sam. Thanks for listening. Follow the show on Spotify, YouTube, Apple Podcasts, Amazon Music, or your favourite podcast platform, and join our WhatsApp channel for free updates. Until next time.