NEED TO KNOW

US “Blue tsunami” sweeps the US: Democrats scored a sweeping victory in the 2026 midterms, flipping control of both the House and Senate with net gains of more than 40 House seats and at least seven Senate seats, including longtime Republican strongholds such as Texas, Kansas, which elected its first Democrat since 1932, and South Carolina. The results produced multiple historic firsts: Abdul El-Sayed of Michigan became the first Muslim elected to the Senate, Chris Pappas of New Hampshire the first openly gay man elected to the chamber, Peggy Flanagan of Minnesota the first Native American woman elected to the Senate, and Deb Haaland of New Mexico the first Native American woman elected governor. VP Vance attributed the losses primarily to Republican voters switching sides over four issues: the Iran war, inflation, the need to put America first, and the country’s relationship with Israel. On Friday, President Trump announced that longtime aide and immigration hardliner Stephen Miller will replace Susie Wiles as White House chief of staff, effective Monday.

US Trump to end annual aid to Israel: On the day of the midterm elections, President Trump announced that the US will stop providing roughly $4 billion in annual military aid to Israel by the end of 2026, saying he and PM Netanyahu had agreed months earlier that Israel “no longer needs it.” Trump framed the move as eliminating a “bad talking point” used by Democrats, while adding that the US would still help Israel if necessary and continue selling it weapons. The current memorandum of understanding providing $3.8 billion a year does not expire until 2028. Israeli President Isaac Herzog described the announcement as “like a bolt from the blue,” and Netanyahu has not publicly commented.

US Volatility spikes after US midterm results: US stocks initially rallied on Wednesday after Democrats’ midterm sweep, with the Dow rising about 3% in a relief move driven by reduced political uncertainty after President Trump accepted the results and expectations of policy gridlock. The gains reversed sharply on Thursday as investors focused on the risk that a Democratic Congress and newly elected Democratic governors would impose tighter AI regulation and slow or block data-center construction. The Nasdaq fell 5.5% (its worst day since April 2025), the S&P 500 dropped 4.4%, and chipmakers and AI-related stocks led the sell-off, with Nvidia down more than 9% and AMD and Micron each falling around 15-17%, though many of those names partially rebounded on Friday. A stronger-than-expected October jobs report (+165,000 versus forecasts of around 65,000) later lifted expectations that the Federal Reserve could still raise interest rates in December.

UA Russia strikes Kyiv amid diplomatic efforts: Russia launched a major overnight attack on Kyiv and the surrounding region, firing dozens of ballistic missiles and more than 170 drones that damaged energy infrastructure, the Northern Bridge, and industrial sites, killing at least one person and wounding several others, including a child. President Zelensky accused Moscow of trying to plunge the capital into a blackout ahead of planned talks. Days earlier, First Lady Melania Trump hosted Russian and Ukrainian officials at the White House following a short localized ceasefire she helped broker in the occupied city of Oleshky, which allowed evacuations and aid deliveries. She called for building on that temporary pause toward lasting peace, in what the White House described as the first time a US First Lady had brought representatives of two nations at war together for diplomacy.

IS Eisenkot tasked with forming government: President Isaac Herzog has tasked Gadi Eisenkot with forming Israel’s next government after he secured recommendations from 67 Knesset members, including both major Arab parties, compared with 46 for Benjamin Netanyahu. Herzog informed both men of the decision on Saturday evening and Eisenkot now has 28 days (extendable by 14) to assemble a coalition. Briefly before Herzog’s decision was announced, Netanyahu called for a “national unity” government that would include all his outgoing coalition partners while warning that any government relying on Arab parties, whom he labelled “terror supporters” seeking to eliminate Israel, would endanger the country and fail to fight Hamas. Eisenkot still faces significant hurdles in turning the recommendations into a stable governing majority.

PL Six dead in rare mass shooting: Poland began two days of national mourning today after a 24-year-old man opened fire from a car in Krakow’s main market square on Saturday, killing six people and wounding 15 others, including two police officers. The suspect, who was wearing military-style clothing and held far-right and ultranationalist views according to Interior Minister Marcin Kierwiński, was shot by police and remains in critical condition. Three bodies later found at his family home were identified as his parents and sister. Prime Minister Tusk described the attack as far-right terrorism, and prosecutors are investigating it as a terrorist offense.

PA Bank collapse triggers political crisis: Paraguay’s Central Bank seized control of Ueno Bank this week after the major digital lender, which served nearly three million customers (about 60% of the adult population) and held roughly $850 million in public deposits, fell into insolvency. Millions of account holders were locked out of their savings, triggering protests in Asunción, the resignation of the Central Bank chief, and criminal investigations into bank executives. Regulators found that the bank had engaged in excessive and poorly documented lending to companies linked to its controlling shareholder (Grupo Vázquez), with loans that exceeded legal limits and lacked adequate collateral. Some expenses had also been wrongly counted as assets. President Santiago Peña, who had held shares in the bank’s parent company until 2025, offered his resignation in an attempt to retain immunity as a former president, but Congress rejected it, impeached him in a unanimous Senate vote, and prosecutors placed him under house arrest.

EU Inflation jumps to 4%: Eurozone inflation rose to 4% in October, its highest level in more than three years and double the European Central Bank’s 2% target, according to Eurostat’s flash estimate. The increase from 3.8% in September was driven mainly by energy prices, which jumped 20.8% year on year and accounted for roughly half of the headline inflation rate. Italy saw the largest monthly increase, with inflation climbing from 4.2% to 5.6%, while Belgium, Finland, Greece, France, and Bulgaria also recorded faster price growth; Germany was the main exception, easing to 2.8% after a temporary fuel-tax cut.

EG Egyptian army officers killed in gold mining crackdown: Two Egyptian army officers, including a high-ranking border guard officer, were killed during a military crackdown on illegal gold mining along Egypt’s southern border with Sudan. Authorities also reported detaining 151 Egyptians and 540 foreigners during the operations. The campaign was launched in June to reassert state control over the Eastern Desert, counter illegal gold mining and protect national resources. It drew attention after the rights monitor Emergency Lawyers said in October that at least 72 artisanal miners had been killed in an airstrike in northern Sudan, close to the Egyptian border, and blamed the Egyptian Air Force for the strike. Artisanal gold mining has increased in northern Sudan since the civil war.

GOOD TO KNOW

Cyber- and hybrid attacks, bomb threats, sweep Europe

A wave of disruptive attacks struck Europe this week, beginning with cyberattacks on commercial refrigeration systems that forced dozens of supermarkets in Belgium, Luxembourg, Sweden, Ireland, the Netherlands, Estonia and Finland to discard millions of euros’ worth of spoiled food after freezers were switched into defrost mode and temperatures rose as high as 50°C. The same method used in an earlier October attack on hundreds of French stores also reached France’s blood bank network, where hackers altered temperature settings on cold-storage units at three French Blood Establishment sites, though rapid alarms prevented any loss of blood products.

In parallel, a series of hoax bomb threats disrupted at least 34 European flights, including 25 on Thursday alone, forcing diversions, precautionary landings and military escorts across 16 countries, though every aircraft landed safely and no explosives were found.

The campaign then expanded to media outlets. On Friday, bomb-threat emails warning that “the clock is ticking” and claiming an explosive device had been planted reached Irish broadcaster RTÉ, Britain’s Sky, Bulgaria’s Nova TV and several other newsrooms. Some of the messages were signed “Mikhail Andropov” and purported to come from the same group behind the flight hoaxes. No devices were discovered at any site. Authorities across multiple countries are investigating the incidents but have not publicly identified a perpetrator or confirmed whether they are linked. Russian involvement has also not been confirmed.

NICE TO KNOW

US Newsom empties California’s death row: California Governor Gavin Newsom announced he is commuting the death sentences of all 548 inmates on the state’s death row to life without the possibility of parole, the largest mass commutation in modern US history. Newsom said state-sanctioned killing is incompatible with California’s values and undermines the justice system. The move, which requires California Supreme Court approval for many cases involving multiple felonies, drew sharp criticism from victims’ relatives and prosecutors who argued it disregards jury verdicts, ignores victims’ families, and prioritizes politics over justice.

MY Google to invest $15 billion in data center expansion: Google plans to invest $15 billion in Malaysia during 2027 and 2028, according to Reuters. The spending will fund data-centre campuses, clean-energy projects, and water-security initiatives. The facilities, once operational, are projected to provide more than 9,000 local jobs per year, with wages averaging 45% above the national median. The company also announced plans for new programs that will upskill 800,000 Malaysians over the next five years.

###