Midterms spark AI bloodbath, Rate hike reckoning & why Canva cut hard

Global markets face significant volatility following a sharp sell-off on Wall Street, fueled by concerns over AI-related debt and regulatory uncertainty. In Australia, the economic landscape remains strained as the RBA implements its fifth interest rate hike to combat persistent inflation, despite growing public frustration and calls for alternative fiscal measures. Corporate sectors show signs of distress, highlighted by David Jones entering administration and Canva initiating a major workforce restructuring to navigate the evolving AI-driven tech cycle. Meanwhile, the US midterm election results signal a potential shift in political momentum, raising questions about the future of populist policies and their implications for Australian foreign policy and economic strategy. These developments underscore a broader collision between an ongoing economic slowdown and the disruptive pressures of the AI boom, forcing businesses and policymakers to confront a challenging period of structural adjustment.