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There’s a growing divide between the haves and the have nots. And economists are starting to take notice. The economy may be “K-shaped,” experts have warned, meaning some people are on a quicker path to recovery. There are signs that lower-income households are struggling, Federal Reserve Chair Jerome Powell said last month, while increased consumer spending may be driven by “mostly high-end consumers.” Executives at major companies have also warned about lower-income consumers pulling back. “In the U.S., we continue to see a bifurcated consumer base,” McDonald’s CEO Chris Kempczinski told analysts on Wednesday. This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here. FIRST UP Investors appear likely to approve Elon Musk’s potentially $1 trillion pay package today, with shares of Tesla trading close to an all-time high. It’s a bet that Musk can overcome the firm’s falling electric vehicle sales and his tarnished image by pivoting to AI-powered robotaxis and humanoid robots. “Tesla's current valuation only makes sense if you attribute magic powers to Elon Musk,” said Gautam Mukunda, a professor with the Yale School of Management. The Federal Aviation Administration will reduce flights at 40 major airports by 10% starting Friday, Transportation Secretary Sean Duffy said, a move that comes as the government shutdown has led to high wait times and staffing troubles at airports across the country. Such a reduction could affect between 3,500 and 4,000 flights a day, according to an NBC News estimate. BUSINESS + FINANCE In some positive labor market news, U.S. private sector employment grew faster than expected last month, according to a report from payroll processing firm ADP. That’s a turnaround from September’s largest single-month decline since March 2023, as the report remains one of the only available measurements of the U.S. labor market during the government shutdown. Boston-based fintech Toast, which makes software used by restaurants to accept payments and manage orders, is the industry leader and easily beat Wall Street’s expectations in its latest earnings report. But investors worry the good times can’t last forever, and the company’s stock is just 7% higher than where it ended last year despite consistently strong growth. WEALTH + ENTREPRENEURSHIP Billionaires are upping their donations to historically Black colleges and universities (HBCUs), including an $80 million donation to Howard University this week from billionaire philanthropist MacKenzie Scott—its largest single donation ever. Forbes identified at least nine billionaires who have made major contributions to HBCUs, giving more than $1 billion combined, though there’s still a major financial gap between HBCUs and predominantly white institutions. Trump donor and billionaire Jeff Yass gave $100 million to the unaccredited, “anti-woke” University of Austin, cofounded by Bari Weiss, the head of CBS News. The college, which says Yass’ gift is its largest single donation to date, is aiming to raise $300 million, and its contributors have also included billionaire Len Blavatnik and GOP megadonor Harlan Crow. TECH + INNOVATION Shares of Snapchat parent company Snap rose sharply in premarket trading Thursday after the company announced a $400 million deal with AI firm Perplexity and a $500 million stock buyback program. The announcements came after Snap released its third-quarter earnings report, which beat analyst expectations. MONEY + POLITICS President Donald Trump’s political comeback has become an engine of new business opportunities for him—but the Trump Organization hasn’t done much real-estate dealing in the U.S. That could change, as documents show two new businesses were quietly formed in Delaware this year that reference Nashville, and while the president’s business has not announced any official plans for a project in Tennessee’s capital, it has previously aspired to one. Supreme Court justices appeared skeptical of Trump’s ability to impose his sweeping “Liberation Day” tariffs, after the court heard oral arguments Wednesday in the cases challenging the levies. Trump has used a law that broadly allows presidents to impose economic sanctions during national emergencies to justify the tariffs, but two lower courts have already ruled against him. SPORTS + ENTERTAINMENT A new class action lawsuit accuses Spotify of operating a “pay-for-play scheme” through its Discovery Mode, which recommends songs to users—theoretically based on their listening habits. The company called the suit “nonsense,” though it acknowledges on its website that “commercial considerations” may influence songs recommended via Discovery Mode. DAILY COVER STORY The Asian Billionaires Riding The Data Center Boom The AI boom has sparked a frenzied global buildout of AI infrastructure, and while the U.S. has sprinted ahead, the Asia-Pacific region is catching up. Global tech giants including Amazon, Google and Microsoft are pouring an estimated $240 billion in the next five years to expand their hyperscale footprint in the Asia-Pacific. This massive outlay, together with investments by regional players, is expected to more than double data center capacity across the region to more than 29 gigawatts (GW) by 2030 from 12GW in 2024, according to Chicago-based real estate consultancy Cushman & Wakefield. By the end of the decade, the region could well be the world’s second-largest data center market, next only to the 32GW capacity that will be created in the Americas, it added. Drawn by the potential, several of Asia’s leading tycoons and conglomerates have jumped into the race. In India, for example, Gautam Adani’s flagship Adani Enterprises, together with Alphabet’s Google, is investing $15 billion over the next five years to develop what it claims will be the country’s largest data center campus. South Korea’s chip billionaire Chey Tae-won’s SK Group teamed up with Amazon Web Services to invest $5 billion to build a data center in Ulsan, an automotive industry hub south of Seoul. In Taiwan, Terry Gou’s Foxconn and Nvidia are investing $1.4 billion to build a 100 megawatt AI data center. The investment boom has sent shares of listed data center companies in the region spiralling upward. WHY IT MATTERS The sector’s potential has also sparked a flurry of dealmaking. Still, the biggest concern over this fast-paced buildout of what are essentially resource-guzzling complexes is the strain on existing supplies of electricity and water. MORE Billionaire Robert Kuok, Malaysian Tycoons Seek Profit From Data Center Boom FACTS + COMMENTS Tuesday’s election results could indicate that President Donald Trump’s 2024 gains with Latino voters have fallen away. The outcome was widely considered a rebuke of Trump’s aggressive second-term agenda and a positive sign for Democrats ahead of the midterms next year: 2 to 1: The margin by which the Democratic gubernatorial candidates in Virginia and New Jersey won with Latinos, NPR reported, citing exit polls 29: The number of New Jersey townships with a majority Hispanic population, all of which Trump gained ground in last year 25%: The share of Hispanic voters with a somewhat favorable or favorable view of Trump, according to an October poll, down from 44% just before he took office STRATEGY + SUCCESS Meetings are important moments to demonstrate to your team that you’re not just a manager, but also a leader. Be sure to make eye contact, put away your phone, and ask questions that encourage your team to solve challenges on their own. End your meetings by setting specific commitments and deadlines, which ensure accountability, and be sure to document them. QUIZ Soccer star Cristiano Ronaldo is the world’s highest-paid athlete, and in a recent interview he disclosed the most expensive item he’s ever purchased. What is it? A. A yacht B. A private jet C. A luxury watch D. An original Picasso Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
