FirstFT: Changing of the Guard

Good morning This article is an on-site version of ours FirstFT Newsletter. Sign up for our Asia, Europe/Africa or America Edition to get it straight to your inbox every weekday morning

Republicans will regain control of the House with a narrow margin, ushering in a new era of divided government in Washington after the Democrats retained a majority in the Senate after the US’s unexpectedly close midterm elections.

The Republicans secured the 218 seats needed to regain control of the lower house of Congress after the Associated Press declared Mike Garcia the winner last night in California’s 27th Circuit.

The size of the Republican majority remained unclear, however, with seven races still too close to call. The smaller-than-expected Republican majority in the House of Representatives reveals sharp divisions within the party’s ranks and raises doubts over Kevin McCarthy becoming speaker.

Earlier this week McCarthy won a secret ballot to become his party’s candidate for speaker by a margin of 188 votes to 31. But defectors from right-wing congressmen loyal to former President Donald Trump suggested McCarthy would face a rocky road until January, when he will need the backing of at least 218 lawmakers for the top job.

Senate Republicans held their own leadership election on Capitol Hill yesterday morning, in which Mitch McConnell, the longtime Republican leader in the upper chamber, was challenged by Rick Scott, who is leading the GOP campaign effort toward Midterms.

McConnell was easily re-elected, receiving 37 votes compared to 10 for Scott, who was backed by Trump and some right-wing senators.

Trump, who started his third run in the White House this week, is scaring off high-profile Republican donors who refuse to fund his reelection bid. Blackstone boss Stephen Schwarzman became the last financier to defect yesterday.

Joe Biden congratulated the Republican Party on securing control of the House of Commons and said he was willing to work with them “to deliver results for working families.”

While Democrats secured control of the Senate, the changing of the guard in the House of Representatives will hamper the next two years of Biden’s presidency.

GOP leaders have suggested they will use the debt ceiling as leverage to impose their own policy priorities, namely cuts in federal spending.

  • Opinion: It would be a mistake for Democrats to think the American octopus has just been killed. The mythical sea monster that represented America’s identity has not disappearedargues Edward Luce.

1. Scaramucci’s SkyBridge bought $10M worth of FTX tokens in exchange for an investment FTX founder Sam Bankman-Fried urged fund manager Anthony Scaramucci to buy digital tokens created by his cryptocurrency exchange as a condition for his 30 percent stake in SkyBridge Capital, according to three people with knowledge of the agreement. FTX’s bankruptcy rocked the cryptocurrency industry over the past week. Genesis Trading became the newest crypto broker yesterday stop customer withdrawals.

  • listen in: Asset Management correspondent Josh Oliver speaks on this episode of our Behind the Money podcast explains what caused the collapse of FTXand market editor Katie Martin tells us what she says about the future of crypto.

2. EY split threatens to weaken both sides of firm, say retired partners More than 150 former EY partners have written to the management of the auditing firm Objection to the radical plan to split its consulting and auditing business. in one three-page note According to the Financial Times, the retired US partners said the proposed plan threatened to weaken both halves of the company.

3. Elon Musk discussed possible successor as Tesla CEO, says James Murdoch Elon Musk had identified a possible successor as Tesla boss in the past monthsCompany director James Murdoch told a Delaware court during testimony in a case brought by investors alleging Musk was wrongly awarded an unprecedented multibillion-dollar salary package.

4. Yale and Harvard Law Schools avoid influential rankings Two of America’s most prestigious law schools have withdrawn from the influential US News & World Report ranking system. a blow to the credibility of a tool widely used by prospective students, alumni and recruiters. Yale and Harvard said the assessment — by focusing on test scores and not reflecting financial aid — undermines their efforts to admit students from low-income backgrounds.

5. France and Germany launch stalled fighter jet project The two partners are willing to do this move to the next phase of their flagship fighter jet project, to reignite Europe’s largest weapons program and to end a crucial nuisance in their bilateral relationship. An agreement could be reached in the coming days, said two people familiar with the talks.

The day ahead

Retail Revenue Clothing retailer Gap and department store Macy’s will come under scrutiny today as investors seek further insight into changing consumer behavior ahead of the holiday season. The companies’ shares fell 6 percent and 8 percent, respectively, according to Target yesterday reported a “dramatic” drop in salesdriven by its discretionary items, including clothing, as customers rein in spending to cope with high inflation and rising interest rates.

Housing New home construction is forecast to have fallen to 1.41m units in October from 1.44m in September as slowing demand for homebuyers spreads through the housing industry. Mortgage rates in the 7 percent range have put many potential homebuyers out of the market. Building permits are expected to have fallen to 1.51m in October from 1.56m in the previous month.

unemployment claims New state jobless claims for the week of November 12 are expected to be steady at 225k from the previous week. The job market has remained relatively resilient despite the Federal Reserve’s efforts to cool the economy – labor demand rebounded in September after a steep fall in August, signaling tight labor market conditions.

monetary policy Fed Governor Michelle Bowman will address the Financial Literacy and Education Commission’s virtual public meeting on financial literacy and inclusion (You can view it here). Separately, Gov. Philip Jefferson will address an in-branch panel discussion moderated by Minneapolis Fed President Neel Kashkari on opportunity and inclusive growth Opportunity and Inclusive Growth Institute Research Conference 2022. Elsewhere, Atlanta Fed President Raphael Bostic will address the Metro Atlanta Chamber. Loretta Mester, President of the Cleveland Fed, will speak at her industry’s 2022 Financial Stability Conference, which will address policy challenges in the “new normal.”

UK annual accounts In the UK, Jeremy Hunt will present his belated but crucial financial report on September 23, aimed at restoring Britain’s tarnished economic reputation after its predecessor’s disastrous ‘mini’ budget our live blog.

What else do we read?

Australia’s defense dilemma: project strength or provoke China? The newly built dockyard in Osborne, a suburb 20km north of Adelaide in South Australia’s St Vincent’s Gulf, has the feel of a Hollywood set. But it is the symbolic heart of Australia’s burgeoning military industry at a time when China and the US compete in the Indo-Pacific drives the largest military build-up all over the world in the last 70 years.

Political dysfunction is catching up with Peru’s once-stellar economy As legal troubles mount for Peruvian President Pedro Castillo, his third finance minister of the year has admitted that the agitated political dysfunction is hurting the business climate in the Andean country. “If confidence isn’t there or it’s been eroded, then obviously the rate of investment isn’t going to move forward,” Kurt Burneo told the Financial Times.

Trade should play its part in saving the planet Environmentalists and free traders have been circling each other with mutual suspicion for decades. But this dysfunctional relationship misses a big opportunity: Increasing positive environmental measures in retailwrites Alan Beattie. Subscribe to his trade secrets Newsletter heredelivered every Monday.

Iraq reels from $2.5 billion in taxes ‘robbery of the century’ For almost a year, armored vehicles carrying hundreds of thousands of Iraqi dinar bills have been snaking through Baghdad’s busy streets every week. The trucks, loaded with taxpayers’ money siphoned off by state bank Rafidain, were alleged take off in broad daylight what has since been dubbed Iraq’s “attack of the century.”

Lula promises COP27 that “Brazil is back” in the fight against climate change Brazil’s president-elect has vowed to stand up for his country at the heart of the fight against climate change, telling delegates at the UN COP27 summit in Egypt that he would crack down on illegal deforestation and set up a special ministry to represent indigenous peoples’ interests. He also said he will ask the UN to host the COP30 summit in 2025 in the Amazon rainforest.


Fashion Matters, the first FT newsletter for the $2.5 trillion fashion industry, launches today. Fashion editor Lauren Indvik takes you behind the scenes of the fashion business and explains how to get involved. Sign up here.

© FT

Thank you for reading and remember you can Add FirstFT to myFT. You can also opt to receive a FirstFT push notification in the app every morning. Send your recommendations and feedback to

The climate graph: Explained — Understand the most important climate data of the week. Register here

To make it short — The biggest stories and the best reads in one smart email. Register here

Leave a Reply

Your email address will not be published. Required fields are marked *