US Treasury Yields Decline as Democrats' Expected House Victory Raises Fiscal Gridlock Prospects
- US Treasury yields fell across maturities during Wednesday's Asian trading session. According to Tradeweb data cited by The Wall Street Journal, the two year yield touched an intraday low of 4.546%, its lowest level in two months, before trading at 4.604%, down 0.8 basis points. The 10 year yield declined 1.5 basis points to 4.934%.
- Swedish bank economist and Fed watcher Elisabet Kopelman said a change in congressional control could make fiscal policy modestly more expansionary while making large spending measures, including Trump's proposed $1.5 trillion Pentagon request, harder to pass.
- She said the outcome could support bonds given the already high US budget deficits, but is unlikely to deliver lasting fiscal discipline. Neither party nor the president appears focused on reducing the deficit.
- Industrial Bank chief economist Jiayang Groen said Democratic control of the House would have the biggest market impact among possible midterm outcomes.
- He argued that losing control of the House and budget authority would make it harder for the Trump administration to push further tax cuts or expansionary fiscal measures. This could limit additional fiscal deterioration and reduce upward pressure on long term Treasury yields.
- However, a narrow Democratic majority would face constraints from Senate filibuster rules and the presidential veto, limiting its ability to increase spending.
- Separately, MissionSquare CIO Shari Hensrud warned that US employment data could be weaker than headline expectations suggest. Three of the past four payroll reports were revised down by around 150,000 jobs in total, while average monthly job gains over the past three months stood at roughly 50,000.
- Hensrud said the impact of higher energy prices, with Brent crude briefly approaching $118 per barrel in October, may not yet be fully reflected in employment data. The effects could emerge in November and December, potentially outweighing any boost from lower borrowing costs.
India Targets Nearly Threefold Increase in Power Plant Coal Stocks Ahead of Next Summer
- India has asked coal mining companies and the railway sector to help nearly triple coal stocks at thermal power plants ahead of next summer to prevent potential power shortages.
- The coal, power and railway sectors have jointly set a target to increase coal inventories from around 18 million tonnes currently to at least 55 million tonnes by the end of the fiscal year in March 2027.
- The target is aimed at ensuring adequate fuel supplies during peak summer electricity demand and avoiding disruptions caused by coal shortages.
- The planned inventory would bring coal stocks at power plants roughly in line with levels recorded during the same period last year.
- However, the ambitious stockpiling target could increase pressure on coal supplies and logistics, potentially creating tensions with other coal users.
US Treasury Yields Fall as Expected Democratic Control of Congress Reduces Rate Hike Bets
- Expectations of Democrats gaining control of both chambers of Congress have raised the prospect of political gridlock in Washington, potentially limiting government spending.
- Investors also expect tighter AI regulation to weigh on US economic growth, which could reduce the need for further Federal Reserve interest rate hikes.
- US Treasury prices rose on Wednesday as a result, pushing yields lower.
- The 10 year US Treasury yield fell around 5 basis points to 4.90%, while the 2 year yield slipped to 4.5458%, near a two month low.
- US equities also advanced as lower interest rate expectations supported investor sentiment.
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RBI Constitutes Technical Consultative Committee for Financial Markets to Improve Market Efficiency and Liquidity
- The Reserve Bank of India (RBI) has constituted a Technical Consultative Committee for Financial Markets (TCCFM) to strengthen engagement with market participants amid rapidly evolving financial markets and infrastructure.
- The committee will provide a platform for structured discussions on policy and operational issues related to money markets, government securities, foreign exchange markets and their respective derivatives markets.
- The committee will be chaired by the RBI Deputy Governor in charge of the Financial Markets Regulation Department (FMRD).
- External members include former SEBI Whole Time Member and IIT Bombay professor Ananth Narayan, FIMMDA Chairman Shamsher Singh, Axis Bank Executive Director Neeraj Gambhir, ICICI Bank's Shailendra Jhingan, Citibank India's Aditya Bagree, Clearing Corporation of India's Nand Kishore and Morgan Stanley India's Ridham Desai.
- Key areas of focus: Improving market functioning, efficiency, liquidity and resilience; deepening and broadening financial markets; reviewing trading, clearing, settlement and reporting infrastructure; and addressing emerging policy, operational and regulatory challenges.
- The committee will also examine international and domestic developments, financial innovations, emerging risks and macroeconomic issues affecting Indian financial markets.
- Meetings will be held at least once every quarter.
Asian Tech Stocks and US Treasuries Face Shifts as Democrats Move Towards Congressional Control
- Saxo Bank analyst Charu Chanana said a decisive Democratic victory in the US midterms has raised concerns about tighter regulation of Big Tech, stronger AI oversight and reduced fiscal stimulus, putting additional pressure on Asian technology stocks, particularly in Taiwan and South Korea.
- She said weakness is spreading across the AI supply chain, but demand for advanced chips remains intact. This suggests a repricing of market expectations rather than a breakdown in the AI growth story.
- Chanana warned that further declines are possible and advised against indiscriminate buying during the dip. She recommended distinguishing companies funding AI infrastructure from suppliers of critical technologies, while allowing long term investors to selectively add exposure during weakness.
- US Treasury prices rose on Wednesday as investors anticipated tighter federal spending and political gridlock amid expectations of Democrats gaining control of Congress. Falling equities also increased demand for safe haven government bonds.
- Investors also assessed whether tighter AI regulation could slow economic growth and reduce the need for further Federal Reserve rate hikes.
- Markets were relieved that the possibility of Trump's previously discussed $5,000 payment to every US adult had diminished. The proposal would have cost approximately $1.2 trillion, equivalent to around 16% of the federal budget.
- Barrenjoey chief rates strategist Andrew Lilly said markets had previously assigned roughly a 5% probability to the payment plan, warning that its implementation would have triggered a catastrophic reaction in the Treasury market.
- House Democratic Leader Hakeem Jeffries is expected to become the next Speaker of the House. If elected, he would become the first African American Speaker in US history.
Democrats Projected to Win US House, Potentially Securing Largest Majority in Nearly Two Decades as Trump Blames Iran War for Republican Losses
- CBS News projects that Democrats have won control of the US House of Representatives, ending Republican control of both chambers of Congress. Democrats could secure their largest House majority in nearly 20 years.
- Regaining the House will allow Democrats to lead congressional committee investigations, increase oversight of the Trump administration and block parts of his legislative agenda.
- Speaking to The Wall Street Journal, President Donald Trump said the Iran war contributed to Republican losses but insisted he did not regret launching the conflict. He said he had tried for months to end the fighting and had complained to advisers that it had become a persistent problem.
- Trump blamed the biggest political damage on rising oil prices and higher US gasoline and diesel costs, rather than broader economic weakness or corruption allegations.
- He ruled out immediate personnel changes and defended Defence Secretary Pete Hegseth, who led the military operations, calling him “excellent”.
- In a Fox News interview, Trump warned that he would veto legislation he opposed, saying Democrats would submit “some crazy bills”. He suggested repeated vetoes could eventually bring Democrats back to the negotiating table, while adding that some Democrats had already contacted him.
- Trump also said it was too early to discuss potential candidates for the 2028 presidential election, but noted that there was a large pool of talent.
- Separately, Trump said he had discussed funding and support with Israeli Prime Minister Benjamin Netanyahu and that Netanyahu agreed with his position.
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Trump Says Iran War Will End When He Decides, Signals Willingness to Work With Democrats
- US President Donald Trump congratulated Democrats on their midterm victories and said he was willing to work with them on several issues.
- Speaking to CBS, Trump said he hoped he would not need to use his veto power but warned that he would veto what he described as “crazy bills” if Democrats refused to cooperate. He said he had an “absolute veto”.
- On the Iran conflict, Trump said the war would end “when I say it will”. According to The Wall Street Journal, he also said he did not regret launching the war.
- Trump acknowledged that the Iran conflict may have contributed to Republican losses, saying voters might be unwilling to accept short term increases in gasoline prices. However, he argued that Americans recognised his administration's achievements in dealing with Iran.
- Trump said he did not expect to replace members of his Cabinet and rejected the suggestion that the electoral defeat was related to his administration's personnel.
- He added that he expected some Republican candidates to perform better and said he did not feel guilty about the election outcome.
Asian Currencies Rise as Democratic Gains Weigh on Dollar and US Equity Futures
- Asian currencies strengthened against the US dollar as Democratic gains in the US midterm elections increased the likelihood of the party controlling both chambers of Congress.
- Maybank analysts said tighter scrutiny of the AI sector under a Democratic-controlled Congress could weigh on the AI-led market rally and put further pressure on the dollar.
- They added that falling US Treasury yields reduce the dollar's appeal as a funding and investment currency for carry trades, creating additional downside pressure.
- USD/JPY fell 0.7% to 157.61, while USD/KRW declined 0.5% to 1,338.20.
- US Treasury yields moved lower during the Asian session. With equities also declining, the move may indicate increased demand for safe-haven assets.
- US equity futures pared some losses but remained lower. Nasdaq 100 futures fell 1.58%, S&P 500 futures declined 0.93%, and Dow Jones futures dropped 0.57%.
- Separately, a Fox News commentator joked that Trump may struggle to deliver his previously stated pledge of $5,000 payments to each US adult. Trump had linked the proposed payments to Republicans retaining control of both chambers of Congress.
Democrats Projected to Flip Texas, North Carolina and South Carolina Senate Seats as Trump Acknowledges Possible Losses
- President Donald Trump told The New York Times that Democrats are likely to win control of both the House and Senate in the 2026 midterm elections. He said he would accept the results and was willing to cooperate with Democrats.
- Trump said he did not regret endorsing Republican candidates, including Texas Attorney General Ken Paxton, who is trailing in the Senate race.
- Decision Desk HQ projects Democrat James Talarico to defeat Paxton in Texas, marking the first Democratic Senate victory in the state since 1988.
- US media have also projected Democratic victories in North Carolina and South Carolina Senate races. These gains would significantly improve Democrats' chances of regaining Senate control. They need a net gain of four seats to secure a majority.
- In his first public response to the midterm results, Trump told supporters to "pretend I'm on the ballot". He added that although he was not running, "If I were, we'd win by a landslide."
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US Equity Futures Fall as Markets Price in Democratic Gains in 2026 Midterms
- US equity futures declined as markets priced in a higher probability of a Democratic victory in the 2026 midterm elections, raising expectations of a potential Democratic “blue wave”.
- S&P 500 futures fell 1.1%, Nasdaq 100 futures dropped 2.0%, and Dow futures declined 0.7%.
- The latest results show Democrats leading Republicans in both chambers. In the Senate, Democrats have 45 seats compared with 36 for Republicans, with 16 of 35 races called. In the House, Democrats have 106 seats against 62 for Republicans, with 169 of 435 races called.
- Kalshi traders have pushed the probability of Democratic control of the Senate above 90%, indicating growing expectations of a significant Democratic outcome.
- Some Wall Street strategists warned that a larger Democratic Senate majority could put pressure on markets, particularly stocks linked to AI infrastructure.
- In after-hours trading, Microsoft, Amazon and NVIDIA shares declined. Data centre company CoreWeave fell 6% on Robinhood overnight, while Elon Musk's SpaceX was down 4%.
SBI Research Proposes Scrapping LTCG Tax on Equities, Raising STT by 50% to Offset Revenue Loss
- SBI Research, the research arm of State Bank of India, has proposed abolishing Long Term Capital Gains (LTCG) tax on equities and increasing Securities Transaction Tax (STT) by 50% to compensate for the revenue loss.
- The report estimates that scrapping LTCG tax would reduce government revenue by around ₹40,000 crore to ₹50,000 crore in FY28, equivalent to just 0.1% to 0.2% of GDP.
- SBI Research expects LTCG collections of approximately ₹1 lakh crore in FY26 and ₹40,000 crore to ₹50,000 crore in FY27, compared with around ₹1.29 lakh crore collected in FY25.
- To offset the potential revenue loss, the report estimates that a 50% increase in STT could generate an additional ₹45,000 crore in FY28. Under the proposal, STT on equity delivery transactions would increase to 0.15% from the current 0.10%.
- The report also suggests alternative options, including increasing the LTCG exemption limit to ₹2 lakh from ₹1.25 lakh, applying a 5% tax on holdings between two and three years, and removing LTCG tax on holdings beyond three years.
- Fiscal deficit warning: SBI Research projects India's FY27 fiscal deficit at 4.7% of GDP, against the Budget Estimate of 4.3%. It estimates the deficit at ₹18.2 lakh crore, around ₹1.2 lakh crore above the budget target.
- The projected slippage includes ₹1.1 lakh crore in revenue losses from excise duty cuts, ₹90,000 crore in additional fertiliser subsidies and around ₹48,000 crore in petroleum and LPG support.
- SBI Research said expenditure cuts may be necessary to keep the fiscal deficit within the budget target. It added that the government's large cash balance could help avoid additional borrowing.
- Finance Minister Nirmala Sitharaman recently said the government would consider reviewing LTCG tax, while SEBI has also backed scrapping the tax for foreign investors.
GIFT Nifty Moves to 23.5 Hour Trading, Extending Market Access Across Global Time Zones
- NSE International Exchange (NSE IX) in GIFT City began 23.5 hour trading on Monday and completed its first trading session under the extended timings, Moneycontrol reported.
- Trading now runs from 3:15 AM to 2:45 AM IST, covering Asian, European and US market hours.
- GIFT Nifty, the dollar denominated Nifty 50 futures contract, now begins regular trading at 5:15 AM, 1 hour and 15 minutes earlier than before.
- NSE IX MD and CEO V. Balasubramaniam described the move as a major milestone for the exchange.
- The extended trading window aims to improve global access to Indian equity derivatives and provide overseas investors with greater flexibility.
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Democrats Projected to Win Control of US House as Republicans Face Midterm Setback
- Decision Desk HQ projected on Tuesday night that Democrats will regain control of the US House of Representatives, ending the Republican majority. The projection was called at 9:09 p.m. ET on November 3, while several races were still being counted and polling stations remained open in western states.
- Democrats recorded several House victories earlier in the evening, including North Carolina's 11th District and Pennsylvania's 8th District, both previously held by Republicans.
- In the Senate, Democrats held seats in Virginia and Georgia. Decision Desk HQ projected that Jon Ossoff won re-election in Georgia.
- In Florida, Democrat Jared Moskowitz secured re-election in a redrawn district that President Donald Trump had won by 9 percentage points. Democrat Pia Dandiya was also projected to win Florida's 22nd District.
- A White House official told Bloomberg that Trump's resolve to oppose the "Radical Left" would only grow stronger regardless of the election outcome.
- Another White House official argued that voters who backed Democrats could regret their decision if gasoline prices fall quickly following a resolution to the Iran conflict. Officials also said Trump had done more to promote several Republican candidates than the candidates themselves.
- The White House further pointed out that Trump was not on the ballot, arguing that his supporters are more likely to turn out when he personally contests an election.
Trump May Announce Fresh Tariffs After Midterms as Oil Prices Fall on Hopes of Iran War De-escalation
- Trump may increase tariffs: Goldman Sachs economists expect President Donald Trump to announce fresh tariff increases after the US midterm elections, potentially more than offsetting any tariff rollbacks by Democrats.
- Democrats face limits on tariff policy: Even if Democrats gain control of both chambers, they would remain short of the two-thirds majority required to override a presidential veto. Democrats could hold hearings and increase scrutiny of Trump's trade policy but may struggle to reverse tariffs.
- White House prepares countermeasures: The administration is reportedly preparing executive actions in case Democrats win, including possible new tariffs on critical minerals and wind turbines, Reuters reported.
- Trump's comments on Israel aid: Trump told Fox News that the US would stop providing $4 billion in annual military aid to Israel after this year, sending oil prices lower as markets assessed the implications for the Middle East conflict.
- Oil prices retreat: Brent crude fell to its lowest level in more than three weeks. Prices had previously risen following reports of US strikes on Iran's Qeshm Island, which officials described as defensive actions to protect shipping in the Strait of Hormuz.
- US-Iran diplomatic efforts: Qatar said mediation between Washington and Tehran had made progress. However, ING warned that it was too early to rule out renewed escalation in the region.
US Midterm Results Favour Democrats, Triggering Fall in Treasury Yields, Dollar and Global Stock Futures
- Democrats projected to regain House control: Election forecasting firm Decision Desk HQ (DDHQ) projected that Democrats would win control of the US House of Representatives, ending Republican control.
- Treasury yields decline: Following preliminary results favouring Democrats, the US 10 year Treasury yield fell from an earlier 4.97% to around 4.89%, its lowest level since early September.
- Dollar weakens, safe havens gain: The dollar fell to its lowest level since late September. The Swiss franc gained 0.8%, the euro rose 0.6% against the dollar and the Japanese yen advanced 0.5%, reflecting increased demand for currencies viewed as safe havens.
- US stock futures fall: US equity index futures came under selling pressure as investors assessed the potential implications of a Democratic victory for Washington's policy direction.
- South Korean stocks reverse gains: South Korean equities turned lower amid election uncertainty. SK Hynix's decline widened to 4.5%, while Samsung Electronics fell 3%.
- Rhode Island gubernatorial race: DDHQ projected Democratic candidate Helena Fox to win the Rhode Island governor's race. With around 50% of votes counted, she was leading independent candidate Ken Block by 56% to 28%.
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Qatar Pushes US-Iran Mediation as IRGC Puts Military Forces on High Alert
- Qatar continues mediation efforts: Qatar's Foreign Ministry spokesperson Majed Al Ansari said Doha will continue working to bridge differences between the US and Iran. Both sides remain willing to continue negotiations and review mediation proposals, although no concrete breakthrough has been achieved.
- Three-hour talks in Tehran: A Qatari delegation travelled to Tehran on Monday and held discussions with Iranian officials for approximately three hours. Communication between the parties is continuing, with Qatar coordinating efforts alongside Pakistan, the Gulf Cooperation Council (GCC) and other regional partners.
- Strait of Hormuz warning: Qatar said freedom of navigation in the Strait of Hormuz and the Arabian Gulf is non-negotiable. It condemned the attack on the Qatari gas carrier Al Mayeda, warning that attacks on vessels and further military escalation could threaten regional security and undermine negotiations.
- Regional diplomatic outreach: Qatar's Emir discussed the regional crisis and Russia's potential role in resolving it with President Vladimir Putin during his visit to Moscow. Doha is also maintaining communication with senior Iranian officials.
- IRGC raises military readiness: Separately, Iran's Islamic Revolutionary Guard Corps (IRGC) said on November 3 that it is maintaining a high state of combat readiness and implementing the Supreme Leader's orders under a policy of "maximum deterrence".
- Military preparations: The IRGC said its priorities include updating databases of potential enemy targets, bringing enemy assets within its operational reach and preparing to respond swiftly to threats of any level. It accused the US of seeking to overthrow Iran's government and divide its territory.
- Warning to adversaries: The IRGC said Iran's armed forces and people would determine when and under what conditions the conflict with its adversaries ends.
Iran Denies Reaching Agreement With US, Says Nuclear and Diplomatic Talks Show No New Progress
- Iran has denied reaching any agreement with the United States, with a spokesperson for the Iranian delegation saying negotiations have made no fresh progress, according to Iranian state broadcaster IRIB.
- Iranian Foreign Ministry spokesperson Esmaeil Baghaei said both sides continue to exchange information through mediators, as they have previously, but no new breakthrough has been achieved.
- Baghaei said Iran remains at the highest level of defensive preparedness and is ready to respond forcefully to any act of aggression.
- He also expressed doubts about Washington's sincerity in pursuing diplomacy, citing Iran's past experiences with the United States.
Goldman Sachs Warns of 'Hidden Bear Market' as 60% of S&P 500 Stocks Enter Bear Market Territory
- The S&P 500 is trading just 3% below its latest record high, but approximately 60% of its constituent stocks are already down at least 20% from their respective peaks, according to Goldman Sachs.
- Goldman Sachs trader Bobby Molavi described the divergence as a "hidden bear market", highlighting the unusual weakness beneath the index's strong headline performance.
- Molavi pointed out that both major technology companies investing heavily in AI and companies receiving that investment are facing simultaneous stock declines.
- He questioned why both sides of the AI investment cycle are being punished by investors despite expectations that artificial intelligence could transform the economy.
- Concerns over the sustainability of massive AI spending have triggered a broad market rotation, with technology stocks facing significant pressure in recent weeks.
- Meanwhile, many other S&P 500 constituents have gained over the past month as investors move away from crowded technology trades towards defensive sectors and previously under-owned areas.
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Meta Launches $20 Billion Bond Sale as AI Spending Plans Raise Debt and Credit Concerns
- Meta began marketing a five tranche dollar bond offering on Tuesday as part of plans to raise at least $20 billion across US and European markets, according to Bloomberg. It is the company's first dollar bond sale in six months.
- The fundraising follows equity offerings totalling approximately $97.5 billion. On October 27, Meta increased its common stock offering to $25 billion and added $12.5 billion in mandatory convertible preferred shares. It also plans an at the market share sale programme of up to $60 billion, expected to begin after its non-voting Class C shares start trading in early 2027.
- Meta has guided for capital expenditure of $135 billion to $145 billion in 2026 as it accelerates investment in AI infrastructure.
- The company raised $30 billion through bonds last year and issued $25 billion of investment grade bonds in April. Demand for the April offering reached $96 billion at one point. Alphabet also sold €6 billion in bonds on Monday.
- On October 30, S&P Global Ratings affirmed Meta's AA- credit rating but changed its outlook from stable to negative, warning that rising spending could push leverage above 1.0x and keep free operating cash flow negative for longer.
- S&P warned that returns from AI investments could be delayed or fail to materialise. It expects Meta's capital expenditure to reach $140 billion in 2026 and exceed $225 billion in 2027, with free operating cash flow deficits of $22 billion and $71 billion, respectively.
Indian Seafarer Killed After Indian-Flagged Vessel Attacked Near Oman, 13 Crew Rescued
- Gujarat seafarer Gandhar Nahim Ajij died after the Indian-flagged dhow MSV Al Jusufi was struck near Limah, off Oman's coast.
- Oman's Coast Guard rescued the remaining 13 Indian crew members, Union Shipping Minister Sarbananda Sonowal said.
- The attacker and the weapon used in the incident remain unidentified, according to NDTV.
- The Ministry of External Affairs condemned the attack and called for immediate de-escalation and a diplomatic solution, ANI reported.
- The incident comes amid growing maritime security risks linked to US-Iran hostilities. The UK Maritime Trade Operations (UKMTO) had also reported a projectile strike near Limah on November 1.
$147 Million Leveraged Oil Bet Raises Stakes as Iran War Escalation Fears Support Crude Prices
- An anonymous trader opened approximately $147 million in 10x leveraged long positions in Brent and WTI crude on Hyperliquid on November 2, according to TheStreet.
- The positions were reportedly opened ahead of Tuesday's US midterm elections, indicating a significant bet on higher oil prices amid expectations of a possible escalation in the Iran war.
- Oil prices rose on Tuesday following reports of US strikes on Iran's Qeshm Island, reversing Monday's sharp decline driven by hopes of diplomatic progress.
- Goldman Sachs warned that Brent crude could reach $140 per barrel in 2027 if oil production across the Gulf remains depressed, according to The Economic Times.
FPI Ownership in Indian Equities Falls to Lowest Level Since 2011 as Domestic Investors Take Control
- Foreign Portfolio Investors (FPIs) held just 14.02% of 5,638 BSE listed companies at the end of September, the lowest level since December 2011, according to a Mint analysis.
- Foreign ownership declined by nearly 0.4 percentage points during the September quarter and by 154 basis points over the past year, despite FPIs turning net buyers with investments of ₹13,970 crore during the quarter. They had withdrawn ₹1.43 lakh crore in the June quarter.
- Domestic Institutional Investors (DIIs) invested a net ₹1.7 lakh crore in equities during the September quarter, taking their ownership in Nifty 500 companies to a record 21.3%, compared with 16.8% for FPIs, according to Motilal Oswal.
- Domestic mutual funds' ownership also reached a record 11.59%, narrowing the gap with foreign investors to 2.43 percentage points from 4.77 percentage points a year earlier.
- Foreign stakes are at multi year lows in nearly 70% of India's top 100 companies. Reliance Industries is at a 15 year low, while TCS, HCL Technologies and Maruti Suzuki have seen foreign ownership fall to levels not recorded in more than two decades.
- FPI ownership in Infosys dropped to 25.1%, its lowest since March 2001. At Axis Bank, foreign holdings declined to 38.1% from 49.4% since September 2024.
🔴 Breaking
Iranian State TV Broadcasts Nuclear Strike Safety Instructions to Citizens
- Iranian state television has broadcast emergency safety instructions for citizens in the event of a nuclear strike.
- People have been advised not to look at the intense flash, to take cover behind a barrier, lie flat on the ground and protect their head and face.
- After the blast wave passes, people should enter the nearest building, stay away from windows and exterior walls, and avoid remaining outside to watch or record the event. Cars should not be used as shelters.
- Citizens have been advised to shower with lukewarm water and soap, using regular shampoo without conditioner. If showering is not possible, exposed skin should be cleaned with water or wet wipes.
- People should use bottled water and packaged food and prepare to remain inside a shelter for at least 24 hours. If the building catches fire or risks collapsing, they should move to a safer shelter.
- The broadcast warned that conditions should not automatically be considered safe after 24 hours. Citizens should follow official emergency announcements for instructions on when and how to leave safely.
Japan, US, UK and European Nations Urge Households to Stockpile Food and Water Amid Rising Emergency Preparedness
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🔴 Breaking
Qatar Says US and Iran Mediation Talks Have Made Progress, Both Sides Reviewing Proposal
- Qatar's Foreign Ministry spokesperson said the mediation team that travelled to Tehran on Monday evening has returned to Doha, while negotiations between the US and Iran remain ongoing.
- Both countries are reviewing proposals put forward by Qatar, with efforts continuing to narrow differences and bridge outstanding gaps.
- Qatar said talks with both sides have made progress and that both Washington and Tehran remain committed to the mediation process.
- Regional and Gulf countries have reached a consensus to avoid further escalation, the spokesperson said.
- Qatar expressed hope that an agreement could still be reached, creating conditions for further negotiations. Doha is also working with regional partners and the international community to resolve the crisis.
US Midterm Elections Underway as Security Fears Rise and Investors Watch Treasury Yields and Dollar
- Election security concerns: Voting is underway in the US midterm elections on November 3, with concerns growing over possible unrest if Republicans suffer major losses. Pollsters and election monitors fear President Donald Trump could allege fraud and encourage supporters to take to the streets, raising concerns about a repeat of the January 6 Capitol riot.
- Security measures tightened: Some polling stations in battleground areas have installed bulletproof glass and other security measures. Local election officials are preparing for potential threats, while some have reportedly begun carrying handguns. Election watchdogs also report resignations among election staff due to safety concerns.
- Key political stakes: All 435 House seats, 35 Senate seats and 36 governorships are being contested. The results will determine whether Republicans retain control of Congress or Democrats regain control of one or both chambers. More than 57 million people had already voted early, according to Reuters.
- Markets in focus: State Street Investment Management advised Asian investors to focus on movements in US Treasury yields, the dollar and corporate credit spreads rather than treating election results as direct buy or sell signals. The key questions are whether US policy changes affect export demand, technology investment and global borrowing costs.
- Interest rate outlook: A clearer policy outlook after the election could improve market sentiment, but does not automatically mean interest rates will fall. Investors should also consider persistent inflation and fiscal risks, with the Federal Reserve continuing to describe inflation as elevated.
AdaniConneX in Talks for $1.5 Billion Offshore Loan From DBS, MUFG and FAB
- AdaniConneX is in discussions with DBS, Mitsubishi UFJ Financial Group (MUFG) and First Abu Dhabi Bank for an offshore loan of around $1.5 billion, Bloomberg reported.
- The proposed facility follows an $800 million, 18 month loan secured in August, reportedly a day after a US judge dismissed charges against Gautam Adani.
- Pricing and the loan tenor, expected to be between five and seven years, are still under negotiation.
- The fundraising comes as the Adani Group and Reliance Industries step up investments in data centres and AI computing infrastructure.
US Midterm Uncertainty, AI Investment Concerns and Rising Oil Prices Weigh on Markets as Bond Yields Climb
- Eurozone bond yields rise: Eurozone government bond yields climbed, tracking higher US Treasury yields and a modest recovery in oil prices. Germany’s 10 year yield rose 2.1 basis points to 3.316%, while Belgium’s 10 year yield gained 3.2 basis points to 4.428% after budget negotiations collapsed. Markets are watching the US midterm elections, with the possibility of Democrats winning both chambers gaining attention. Analysts said Democratic control could support US Treasuries, although the market reaction to President Trump remains uncertain.
- Dollar weakens on AI concerns: The US dollar softened as investors questioned the sustainability of AI investments and assessed midterm election uncertainty. Apple warned that AI related operating costs could squeeze margins, while Anthropic reported an operating loss in Q3 following a costly data centre deal. OpenAI's latest funding round also reportedly raised less than half of its initial $30 billion target. The dollar index fell 0.12% to 101.684, after touching a one month low of 101.426.
- Oil and geopolitical risks remain in focus: Higher oil prices following the reported US strike on Iran's Qeshm Island provided some support to the dollar. Investors are assessing how the midterm outcome could influence US policy in the Middle East, the duration of supply disruptions and the geopolitical risk premium in crude. A Democratic gain in Congress could increase scrutiny of military policy and pressure for diplomatic solutions. However, greater pressure for negotiations does not automatically mean geopolitical risks or oil prices will decline.
White House Lists India Among Countries With Improved Trade Deals Despite Unsigned US Trade Pact
- The White House has included India in a 127 item document titled “Promises Made, Promises Kept, Results Delivered”, released on November 2, claiming President Donald Trump secured new and improved trade agreements with several countries.
- India is listed alongside the UK, European Union, Japan, China, South Korea and Southeast Asian nations. The document credits Trump's tariff policy with securing agreements covering more than half of global GDP.
- However, the interim trade pact announced by India and the US in February remains unsigned. The joint statement outlined a framework rather than a final agreement.
- A US Supreme Court ruling against reciprocal tariffs subsequently forced both sides to revisit the terms.
- Commerce Minister Piyush Goyal said most negotiations have concluded and the first tranche is undergoing final legal drafting. Commerce Secretary Rajesh Agrawal, however, said no signing date has been set.
Iran Says It Is at Highest Level of Military Defensive Readiness, Warns US Against Further Escalation
- Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Iran is fully prepared for war, with its “finger on the trigger”, and will respond to US actions with authority and rationality.
- He said Iran is at the highest level of defensive readiness across both battlefield and military operations, adding that the responsibility to prevent war now rests with Washington.
- Ghalibaf warned that any further US strategic mistake would trigger a completely new battlefield, leaving the US with even fewer options to find a way out.
- He said Iran's Supreme Leader has approved military strategies to counter possible attacks and that Tehran would respond unpredictably to any miscalculation by the US or Israel.
Iran Says It Remains Far From US Deal as Oil Prices Rise Over 2%
- A senior Iranian official said Tehran and Washington remain far from reaching an agreement to end the war. Iran is prepared to respond forcefully to any US strikes in the region and beyond.
- The official said mediators are working to narrow differences, adding that Tehran will not accept excessive US demands.
- Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran had delivered Washington a “strong and rational response” and that “the ball is now in the US’s court.”
- Qatari mediators held further talks with Iranian officials in Tehran on Monday. A diplomat said both sides are reviewing the mediators’ latest proposal.
- Oil prices rose more than 2% intraday, with WTI and Brent gaining. US stock futures turned lower, with S&P 500 and Nasdaq futures down 0.3%. Spot silver fell below $50 an ounce, declining more than 3%.