Democrats’ wave in Tuesday’s US midterms, which contested all 435 House seats, means President Donald Trump will need House Democrats’ consent for any new law from January. Westminster, Britain’s political class, asks whether that makes him erratic abroad, but his incentive points to activity: a president who cannot legislate gains most where he needs no votes.

Tariffs, sanctions and troop deployments rest largely on powers Congress has already delegated, and curbing them takes a bill he can veto. Overriding a veto needs 290 House and 67 Senate votes, which Democrats would reach only with many Republican defections. Foreign governments planning to wait him out therefore face a counterpart with fewer outlets at home and the same legal reach abroad.

The last president in this position acted on it: two months after Democrats won Congress in November 2006, George W. Bush announced more than 20,000 additional troops for Iraq, in a televised address on 10 January 2007.

The Gist AI Editor

Home builders lead the post-midterm market

D.R. Horton, PulteGroup and Lennar, three of the largest US home builders, have all outperformed the broader market since Tuesday’s midterm elections, according to the Wall Street Journal. Investors are treating the builders as a place to look for hope after the Democratic wave in Congress, which the Financial Times described as an emphatic victory.

Hong Kong’s exchange operator reports a surprise profit drop

Third-quarter net profit at Hong Kong’s stock-exchange operator fell unexpectedly even though revenue grew, the Wall Street Journal reported. Trading activity in the Asian financial hub showed signs of moderation, so the company earned less from the volumes that drive its income.

Investors doubt Anthropic can reach a $1.5 trillion IPO valuation

Major investors are skeptical that an Anthropic share offering can reach a valuation of $1.5 trillion, according to the Wall Street Journal. Other investors say October financial results could soften the effect of the recent market rout.

Democrats’ win prompts questions over Trump’s next two years

After the Democratic wave, Westminster is asking whether domestic setbacks could make President Donald Trump of the United States more unpredictable abroad, Politico Europe reported.

Stay tuned for the next Gist—your edge in a shifting world. The Gist remains independent and reader-supported. If you value news free from corporate or state interests, consider supporting our mission with a donation.

Why Investors Are Searching for Hope in Home Builders
— Wall Street Journal

Hong Kong Exchange Operator’s Net Profit Slips as Trading Activity Cools
— Wall Street Journal

Major Investors Are Skeptical Anthropic IPO Can Achieve $1.5 Trillion Valuation
— Wall Street Journal

In Venice’s gardens, where reality triumphs over expectation
— Financial Times

The Blue Tsunami Swept Doctors and Scientists Into Office
— Wired

Trump’s final two years: Is the UK ready?
— Politico.Eu

Germany’s firms raise price plans as energy hits 2022 highs

The ifo institute, a Munich-based economic research body, reported on 30 October that its price expectations index, which measures the share of German firms planning to raise prices, rose to 25.9 points in October from 23.0 in September (ifo). Crude oil and natural gas prices reached their highest level since 2022 in the second half of October, according to ifo, and its business-survey chief Timo Wollmershäuser expects inflation to keep rising for both producers and consumers in the coming months. The September release had shown the same direction, 22.7 points against 21.4 in August, when ifo projected inflation above 3% after the blockade of the Bab al-Mandab strait, the Red Sea chokepoint for oil shipping (ifo). Because producer costs are rising first, retail prices are likely to follow, and utilities are expected to raise electricity and gas tariffs this winter.

Europe’s publicly funded research is turning into US company value

Clemens Fuest, president of the ifo institute in Germany, and more than 50 other scientists argued in the journal Science on 23 October that European-funded research often ends up in patents held by US startups, which then build their market success on it (ifo). They want public grants directed toward places where research results can become marketable products. The proposal would change who receives funding, shifting it toward the stage where research is commercialised.

Germany names Christian Freuding its top soldier

Defence Minister Boris Pistorius has appointed army chief Lieutenant General Christian Freuding, 55, as Germany’s Generalinspekteur, the highest-ranking soldier in the Bundeswehr (ZDF). He takes over in February from General Carsten Breuer, who has already been elected chair of NATO’s Military Committee. Freuding previously led the Bundeswehr’s Ukraine task force.

Russia and Ukraine meet in Washington before Abu Dhabi talks

First Lady Melania Trump received Russian and Ukrainian representatives at the White House on Thursday, including Kirill Dmitriev, President Vladimir Putin’s special envoy (ZDF). Trilateral talks between the US, Ukraine and Russia are scheduled for 10 and 11 November in Abu Dhabi.

Catch the next Gist for the continent’s moving pieces.

Christian Freuding wird ranghöchster Soldat der Bundeswehr
— ZDF

Höhere Energiepreise werden zunehmend weitergegeben
— IFO

Kräftig gestiegene Energiepreise sorgen weiterhin für Preisdruck
— IFO

Andy Burnham’s cost-of-living COP
— Politico Europe

Europäische Forschung wird noch zu häufig in den USA zu Geld gemacht
— IFO

Aktuelles zum Krieg in der Ukraine
— ZDF