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Rising food prices, fuel costs, and persistent inflation emerged as decisive factors in the U.S. midterm elections, with Democrats winning control of both the House and Senate amid widespread dissatisfaction with President Donald Trump's economic policies. At 09:00 EST, the Democrats had 54 Senate seats, compared to 44 for the Republicans, and 228 against 139 in the House. A national survey of more than 79,000 registered voters for the Asssociated Press and all the major TV and cable news networks found that approximately 90% considered the cost of living a crucial or major factor in their congressional vote, while roughly 60% were very concerned about food prices and a similar proportion about gasoline and diesel costs. Nearly two-thirds blamed Mr. Trump's policies for worsening inflation, while 75% described the economy as poor or not particularly good. Almost two-thirds believed Mr. Trump's tariffs had damaged economic conditions. In interviews as the results came in, the president said he believed the war with Iran had public support, but acknowledged that voters were unwilling to tolerate the short-term impact of higher gasoline prices.

 

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Billionaire financier Mark Walter has reportedly explored selling Delaware Life, an insurer with $71bn in assets under management, as part of a potential restructuring of his holding company, TWG Global. The discussions follow a federal investigation into more than $20bn in previously undisclosed investments linking Delaware Life and another Walter-controlled insurer, Clear Spring Life and Annuity, to affiliated businesses. Delaware Life, which manages more than 380,000 active insurance and annuity policies, has faced increased regulatory scrutiny following the disclosures. Mr. Walter has also agreed to sell stakes in the Los Angeles Lakers and Chelsea Football Club as he seeks to raise cash, and is reportedly in talks to sell part of his majority stake in the Cadillac Formula One team, with John Henry's Fenway Sports Group (FSG) among several potential bidders.

 

New York Times

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Yum Brands has reported a 4% increase in third-quarter revenue to $2.05bn, in line with Wall Street expectations, while adjusted earnings per share of $1.56 exceeded forecasts of $1.49. Net income rose to $1.62bn from $397m a year earlier, largely reflecting gains from the divestiture of Pizza Hut, which was completed during the quarter. Excluding Pizza Hut, group same-store sales were flat, with Taco Bell sales declining 4% following a cyclospora outbreak linked to contaminated lettuce. However, Taco Bell has since recovered, with U.S. same-store sales rising approximately 1% so far in the fourth quarter, including 3% growth over the latest four weeks. Meanwhile, KFC's global same-store sales increased 1%, supported by China and Europe, although U.S. system sales declined 6% amid intensifying competition and cautious consumer spending.

 

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Block has reported a 22% increase in third-quarter gross profit to $3.2bn, ahead of analyst expectations of $3.1bn, prompting the Square and Cash App owner to raise its full-year gross profit guidance to $12.6bn from $12.5bn. The company has also reached a $964m deferred prosecution agreement with the U.S. Department of Justice relating to alleged customer abuses, representing a net cost of $764m, significantly above the $526m previously reserved. The stronger performance follows a major restructuring program involving workforce reductions, cost efficiencies and investment in artificial intelligence products, alongside efforts to expand Square's merchant services and increase engagement with Cash App. However, third-quarter operating expenses rose to $2.8bn, and the company recorded a loss of approximately $230m on Bitcoin investments. 

 

Wall Street Journal

Corporate technology leaders have indicated that enterprise demand for artificial intelligence remains strong despite recent stock market volatility and investor concerns over rising AI infrastructure costs. According to the Wall Street Journal, chief information officers from companies including Grant Thornton, Smartsheet, and Bristol Myers Squibb expect organizations to continue investing in AI while placing greater emphasis on measurable business outcomes, cost efficiency, and shorter payback periods. Executives anticipate fewer experimental projects, more selective spending, and increased scrutiny of implementation costs and productivity gains. Although computing capacity, talent shortages, and organizational change remain significant challenges, businesses are prioritizing practical applications over speculative investments. Industry leaders suggest that the next phase of enterprise AI adoption will be characterized by stronger financial discipline, clearer returns on investment, and a continued focus on human oversight.

 

Wall Street Journal

CVS Health has announced plans to separate its retail pharmacy business from its insurance and pharmacy-benefit operations, reversing the strategy behind its near-$70bn merger with Aetna a decade ago. The restructuring, which is expected to complete in early 2028, will create two publicly traded companies, with existing shareholders receiving stakes in both. CVS Health, led by current chief executive David Joyner, will retain insurer Aetna, pharmacy-benefit manager Caremark, Oak Street Health, Signify Health and its specialty-drug business. The newly established CVS Pharmacy will operate approximately 9,000 retail pharmacies alongside its mail-order services, MinuteClinic healthcare providers and Health100 digital platform. The separation is intended to improve operational focus and management flexibility, following improvements in Aetna's performance and the stabilization of retail pharmacy margins.

 

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The U.S. labor market showed signs of renewed strength in September, with job openings increasing by 333,000 to 7.52m, their highest level in four months and above all economists' forecasts in a Bloomberg survey, according to the Labor Department. Layoffs declined to their lowest level since March 2025, while the voluntary quits rate rose to 2.1%, its highest in more than a year, suggesting improving worker confidence. Job vacancies increased across professional and business services, manufacturing, construction, government, trade, and transportation, with manufacturing openings reaching their highest level since late 2023. Hiring also accelerated, particularly in accommodation and food services, while the West recorded the largest regional increase in vacancies. The ratio of job openings to unemployed workers remained at approximately 1.1, indicating a relatively balanced labor market, compared with a peak of 2 to 1 in 2022.  

 

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The Commerce Department reported Tuesday that U.S. factory orders rose 1.8% in September, exceeding economists' expectations of a 1.2% increase and accelerating from an upwardly revised 0.3% gain in August. Orders increased 7.2% year over year, supported by strong demand for aircraft, machinery, and technology-related equipment. Civilian aircraft and parts orders surged 28.3%, while machinery orders climbed 1.5%, and computer and electronic product orders increased 0.8%, bringing their annual growth to 14.9%. Orders for nondefense capital goods excluding aircraft, a key indicator of business investment, rose 0.6%, while shipments increased 1.2%. Manufacturing activity continues to benefit from substantial artificial intelligence infrastructure investment and resilient consumer spending, although economists warn that higher interest rates and declining inflation-adjusted household incomes could weaken demand next year.

 

Reuters

3M has agreed to a $7.35bn settlement to resolve longstanding personal injury litigation involving exposure to PFAS, commonly known as "forever chemicals," potentially compensating up to 120,000 claimants. The agreement covers allegations of health problems, including several types of cancer, linked to PFAS-containing firefighting foam. Payments will be distributed over nine years, with 3M recognizing a $5.8bn pretax charge in the fourth quarter of 2026, representing the settlement's present value. Chief executive Bill Brown described the agreement as a significant step toward reducing litigation uncertainty. The settlement follows previous legal actions concerning PFAS contamination, particularly allegations involving drinking water and environmental exposure. 3M began phasing out the chemicals involved in the litigation in 2000 and discontinued all PFAS manufacturing in 2025. 

 

Bloomberg

Wall Street Journal

California's proposed billionaire wealth tax has fallen behind in early election results. Proposition 40 would introduce a one-time 5% tax on billionaires' assets, raising an estimated $100bn to offset federal healthcare funding cuts, with 90% allocated to healthcare and the remainder supporting education and food assistance. The proposal has divided Democratic leaders, with Gov. Gavin Newsom opposing it despite support from the state Democratic Party. Two competing measures designed to undermine the tax, Propositions 41 and 42, remained too close to call, following a campaign that attracted approximately $425m in contributions across the three initiatives. Meanwhile, voters approved Proposition 3, making permanent an existing 1%–3% additional income tax on high earners that primarily funds education. Supporters of the billionaire tax have indicated they could pursue another ballot initiative in 2028 if the measure fails.

 

Los Angeles Times

The U.S. Drug Enforcement Administration (DEA) has issued its first federal registrations to more than 900 state-licensed medical marijuana dispensaries across seven states, potentially allowing businesses to claim previously unavailable federal tax deductions. The move follows the Trump administration's April 2026 decision to reclassify state-licensed medical marijuana from Schedule I to Schedule III, easing federal restrictions. Registered businesses could benefit from deductions for operating expenses, including rent, advertising, and labor costs, which have historically been restricted under federal tax rules. Nearly 7,000 additional cannabis businesses have applied for registration. However, uncertainty remains over future DEA compliance requirements, the treatment of businesses selling both medical and recreational marijuana, and how federal oversight will interact with existing state regulations.

 

Los Angeles Times

The FASB has proposed changes to accounting guidance for equity-linked contracts, including warrants, aimed at simplifying classification requirements, reducing compliance costs, and improving financial reporting for investors. The proposed accounting standards update would replace the complex fixed-for-fixed assessment with an acceptable variables approach when determining whether contracts are indexed to an entity's own stock and potentially qualify for equity classification. The FASB expects the changes to allow more contracts to meet the indexation criteria, addressing stakeholder concerns about inconsistent application, costly compliance, and frequent financial statement restatements. The proposal would also introduce annual disclosure requirements identifying variables that could, or did, significantly affect settlement amounts for equity-classified contracts. Developed following feedback from FASB's 2025 agenda consultation, the changes seek to provide more useful financial information while reducing unnecessary accounting complexity. Stakeholders have until January 4th to submit comments on the proposed update.

 

Accounting Today

CPA Practice Advisor

PwC has warned that rising infrastructure costs, outdated technology, and fee compression are putting sustained pressure on profitability across the global asset management industry. According to its latest research, profit per assets under management has declined 19% since 2018 and is projected to fall a further 9.1% by 2030. A survey of 150 asset managers and 50 infrastructure providers found that 29% of managers allocate more than 70% of their technology budgets to maintaining legacy systems, limiting investment in innovation. Although 67% identify artificial intelligence and machine learning as major investment priorities, fragmented data and outdated platforms remain significant barriers to adoption. Meanwhile, 58% of managers consider market data among their most expensive infrastructure components relative to value, and two-thirds report that fee compression restricts modernization spending. PwC also found that 44% favor hybrid infrastructure models combining internal capabilities with external providers, highlighting a growing shift toward more flexible operating structures as firms seek to protect profitability and improve efficiency.

 

Wealth Professional

European Central Bank (ECB) ​Vice President Boris Vujcic has said countries in the euro zone are integrating faster with the United States than with each other. Referencing ECB research, Vujcic said estimated barriers to cross-border equity investment between the euro zone and the U.S. have fallen by a quarter ​since 2014, more than twice as much as barriers ​within the euro area, and suggested that Europe's fragmented capital markets make the continent less resilient. "In a fragmented Europe, investment becomes the margin of ⁠adjustment ​whenever a shock hits," he said. "That ​is a resilience problem before it is a growth problem."

 

Reuters

India has defended its $1.2bn tax demand against German automaker Volkswagen in a Mumbai court, claiming the company never provided mandated information in time. Volkswagen, which has a roughly 2% market share in the world's third biggest car market, says the demand came years too late. India has since 2024 alleged the firm ​undervalued auto imports for years and paid below the full tariff rates. Volkswagen denies the allegations and has previously described the case as a matter of "life and death" for its business in India, and is "impossibly enormous." The carmaker is currently in talks with India's JSW to sell a stake in its India operations. 

 

Zawya EN

Meta has ​built a ‌prototype humanoid robot ​with Chinese ​startup company Fourier ⁠and ​is working ​on a second version, ​The ​Information reports, ⁠citing people familiar with the ​initiative.

 

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