
Trump admits defeat, markets react with relief, AI values under pressure
AI-generated summary
The Democrats won the US midterm elections and secured the majority in the Senate and House of Representatives. President Trump admitted defeat and spoke of possible cooperation, but reserved the right to veto.
The Democrats have clearly won the midterm elections in the USA. They won the majority of seats in both the Senate and the House of Representatives and will now control both chambers of the US Congress.
US President Donald Trump admitted the Republicans' defeat on election night and signaled that he could imagine working with the Democrats. At the same time, however, he made it clear that he would use his veto right in case of doubt.
His comparatively mild reaction to the election defeat brought relief to the markets and caused prices in Europe and the USA to rise. However, some AI stocks were under pressure amid concerns about increased regulation by Democrats and a slowdown in AI data center buildouts.
Carsten Brzeski, ING chief economist for Germany and Austria, explains in the podcast why the Democrats will not stop the AI boom either.
AI outlook — possibilities, not facts
Democrats will push forward legislation with their majority in both chambers.
Very likely · Within weeks
If in doubt, Trump will use his right to veto.
Likely · Within months

The defense company Rheinmetall has revised its expectations for 2026 downwards. Due to delays in major orders, including the boxer wheeled tank project “Arminius” and artillery ammunition, sales are now expected to be around 13.2 billion euros. The operating return is expected to fall to around 18.5 percent. The company nevertheless recorded significant growth in the third quarter.

The DAX gains 2.2 percent after the Democrats' victory in the US congressional elections and is approaching its August record. Heidelberg Materials and Continental increased, BMW lowered its forecast. Tech stocks came under pressure as the dollar fell.

Telekom boss Timotheus Höttges is pushing forward the merger with the US subsidiary T-Mobile US and is seeking the support of Chancellor Friedrich Merz and the federal government. The background is competition from Elon Musk's Starlink and a possible purchase of Boost by Echostar in the USA. T-Mobile shares fell by more than two percent.

The fashion retailer Peek & Cloppenburg (P&C) is losing its prestigious locations in Düsseldorf, Berlin and Frankfurt. The real estate company Midstad, owned by the Cloppenburg family, will rent the buildings to its competitor Inditex from 2027.

The Netherlands has nominated Klaas Knot as a candidate to succeed ECB boss Christine Lagarde. Knot is considered a supporter of a tight monetary policy and competes, among others, with the Spaniard Pablo Hernández de Cos.

After the Democrats' victory in both chambers of the US Congress, the markets reacted with a DAX high, but also concerns about AI stocks and trade conflicts. Experts expect a political standstill (“gridlock”) and continued customs policy.