>> you are watching bloomberg television. this is a special election 2014 wrapup edition. i'm pimm fox. republicans take control of the senate. of the get a recap results and the look forward to the policy and economic effects of this big shift in washington. we have john heilemann. it is their world series. we will get their insight and analysis in a few moments. sununu.hnson and

president obama's postelection remarks. we will bring them to you live at 2:50 p.m. this afternoon. first, the top stories from bloomberg. investors are buyers. moving stocks higher. the s&p 500 with another record close following public and victories and control of the senate. -- republican victories and control of the senate. between presidential elections, people are often dissatisfied. they vote for the for your we can change what's not working. there is bit of general optimism that is in the markets. >> the u.s. dollar rising today. hitting a seven-year high again. some good news for the economy. u.s. companies add more workers in october compared to

september. job growth is still on track for the best performance in 16 years. -- up 6.5%. the maker of cadbury chocolate and ritz crackers and oreos. top third-quarter estimates. results were helped by cost-cutting measures. dallas federal reserve president richard fisher was speaking out on monetary policy on bloomberg television. closed the fed played attention to the latest economic reports when deciding when to end its bond buying program. conditional on the stick of the economy, making it clear if things moved sooner than we expected, we would have to exit earlier or liftoff earlier. if it took longer, we would have to delay. >> fisher also said he hopes

congress will not interfere with the federal reserve independence. nursing assistant who recovered from ebola was released from the hospital. edresa romero had thanks health care workers for saving her life. her dog was unnecessarily executed. those are today's top stories. it is a new world and washington, d.c. republicans will control congress and enjoy the biggest majority in the house since harry truman was president in 1948. president obama is trying to get off on the right foot. he is going to hold a news conference later this afternoon. we will cover that live. phil mattingly is in washington. what can we expect? pretty soothing

repudiation of the president. what you are going to hear from the president's day -- talking to officials all morning, he gets it. he saw the election results last night and knows what they mean. they will look for smaller items . there is not going to be slowing down right appeared they are planning to move forward a large-scale exec of come including immigration a couple of weeks. >> what about the president's relationship with mitch mcconnell? great.s not the president's relationship with most lawmakers is not really that good right now. that has been a problem for him throughout his six years in office. the one thing white house officials are planning to,

senator mcconnell and joe biden have a great relationship. they trust each other from their time in the senate. if you think about the two major fiscal deals that have occurred during president obama's term, it has been joe biden negotiating one-on-one with senator mitch mcconnell. pulling the u.s. back from overl tips -- fiscal clips and over again. there are some positive signs there. the one-to-one relationship between the president and mitch mcconnell, there's not a lot to work with. , thank you.ingly victory for the republicans could not be complete without a rallying cry. here's the best of election night three speeches. -- victory speeches. >> i would like to make an announcement that i think will be welcome news for many of you. -- no more campaign commercials. >> it's not your old man's ohio

anymore. >> the republican party of iowa has been revitalized. >> we are heading to washington. and we are going to make them squeal. washington like this top down approach that is old and artificial and outdated that says that government is best. we believe you should make the economy from the ground up. that is new and fresh inorganic. >> higher taxes, more spending, more debt and the slowest economic recovery since the great depression. >> big government has listed long enough -- lasted long enough. it's time to go in a new direction. it is time to turn this country around. i will not let you down. thank you so much. >> the rallying cries from its

mcconnell. likely the next majority leader. -- from mitch mcconnell. it was five hours of smart, insightful analysis. the managing editors of bloomberg politics join me now. i want to start off by talking about the senate races. tell me what you think will happen with mitch mcconnell and his role as majority leader. >> a lot of big decisions to make. the party is united for this pe riod. does he want to do deals with the white house were not? can he afford to do deals at the president adopts the posture of -- i want to work with you but not change the terms of the deal. >> what can we make from the various victory speeches of the republicans? they seem to all be speaking

with one voice? are speaking with one voice at this moment. except for ted cruz. he does not want to do what mitch mcconnell is saying he wants live. most republicans are saying let's break that and put bills in front of the president. say let'suz investigate the president and to the president and impeach the president. and balance, how mcconnell boehner manage the more fractious elements, it's always been a problem for republicans. >> what about managing the new senators coming in? iowa, we were listening to joni ernst. what will that be like for mitch mcconnell? will beis a group that

pretty well behaved. i don't think there is someone like a ted cruz of texas who is going to be a major headache for mitch mcconnell. their resumes suggest a group that is pretty thoughtful. they will be part of that surprisingly large conference. and democrats who meet regularly and talk regularly. the hope to break this cycle of gridlock. a lot of senators in both parties to talk across the aisle a lot more. want to get your thoughts on a couple of races. the race in colorado. what did you think about this? >> among all the races last nine, the two that are the most striking of the races in colorado and iowa. that was terrain may people were thought was getting bluer and blue are.

cory gardner was able to win in that race speaks to his strength as a candidate and speaks for mark udall being -- democrats were not able to do what they had to do. they did not get enough voters to turn out in large numbers. carolina and the battle between kay hagan and tom tillis. what does that tell us? >> the south is increasingly going republican. more and more states are trending that way. of aillis has been part republican effort to move the state to the right. voters in that state -- president obama won it the first time. did not when it the second time. you have a senator who had not really established herself as an

institutional figure that a lot of southern democrats had become in order to keep her jobs -- their jobs. year --ican >> what about arkansas? a lott is a state where of people thought was almost certain to turn red. there was never any indication -- republicans nominated an establishment candidate. arkansas has been becoming increasingly red. bill clinton and hillary clinton went down there to try to pull mark pryor. there was the surprise in mark tom cotton winning that

race. they can putstate back in to. about the electoral college. democrats see a state with an increase in african-american and hispanic participation. romney's worst or second-worst state. they came up short because of the year. if this had been a presidential year and the president or democratic candidate could register more people and generate more enthusiasm from that coalition, it might have been closer. .> we will talk more talk about who voted in the governor's races. we will have more coming up. teamloomberg politics news lob or complete coverage. president obama will be weighing

in on the results in a few hours. be sure to tune in for special coverage of the white house news conference. we will also be talking about gridlock in washington. will there be more or less? someone who knows all about gridlock, john sununu will be stopping by. narrow about the gop's loss in his own state of new hampshire. that is next. ♪

>> this is a special election 2014 wrap up on bloomberg television. i'm pimm fox. the granite state was the lone bright spot for the democrats in the senate races last night. jeanne shaheen defeated scott brown by four percentage points.

why did new hampshire go against the national trend? we have an expert. john sununu. great to have you here. what happened in new hampshire? where the a race incumbent started with a big double-digit lead, 10-15 points. scott brown closed the gap. brought it to single digits and kelly bit short -- fell a bit short against someone who is viewed as relatively i popular. gubernatorial candidate who was relatively unknown and outspend. he lost by low single digits. that made it a little challenging for the overall ticket.

it was a good night for republicans in new hampshire, but not the spectacular night that many were hoping for. >> a good night for republicans and statehouses across the united states. rick scott defeating charlie crist in florida. >> an outstanding night on the senate side. the gubernatorial race is even more surprising. rick scott holding in florida and winning governors races in illinois, michigan. >> illinois, the president's home state. paquin. a victory over why did that happen? partly because it's the president's home state, this is a case where this satisfaction with the president might have played into a state race. that was not a case in these other races. you were running on local

issues. believe up for what you , whether the voters agree or disagree with you. they were strong figures and that is the kind of leadership people want. >> you mentioned scott walker. he seems to be fighting for this job -- >> he is tough. he's not afraid to stand up for what he believes. that persuaded a lot of independents in wisconsin. >> also winning in illinois and maryland. >> the biggest surprise would be the maryland race. i don't know the dynamics of maryland politics. i cannot explain that one to you other than to say that republicans are excited and chris christie put a lot of time and effort into that race. it looked like it was breaking are moving toward a republican column.

republicans took advantage of that. massachusetts, where you had a great candidate in charlie baker nho put together a outstanding campaign. he will be very effective governing in massachusetts. >> chris christie went on the stump for these republican governor candidates. what does this do to his chances in 2016? >> i don't think it affects his candidacy. -- standing with his colleagues in the different state houses. he knows he has great allies and supporters in the state house. they are friends and colleagues. strong, committed allies who know he is going to fight for them. >> thank you for spending time with me. john sununu.

stocks have performed well under president obama. that does not seem to matter for voters. it's all about the economy. we talk about the economic connection between stocks and politics. ♪

>> this is a special election 2014 wrap up on bloomberg television. time now for on the markets. julie hyman, markets taking a

midterm election move ahead. >> we are seeing a bit of a gainsay. we have seen gains in midterm years. there does him to be as some optimism coming out of a result of last night's numbers. we had an adp payrolls report showing better results than estimated. that is not hurting matters, either. 15.3%, this is what happens six months after the midterm elections. go back to 1944. after the midterm election, you see a pop of 15%. ofthey look at the numbers when you have a democratic president and republican-controlled congress. that is a much smaller sample size. i have some skepticism about the value of that.

you see gains following that sort of scenario. we will see what happens. >> having the house republicans and senate republican and president democrat, mathematically is the best recipe for an increase. this would be an annual change. >> this is where we see the disclaimer past performance does not predict future results. i do want to mention what we are asset another ca classes. treasuries, we are significant decline in prices. a gain in rates. if you look at oil prices today, oil has been such a big influence. we are seeing a rebound in oil prices. we did get the latest report on u.s. stockpiles which showed smaller supplies than have been estimated. >> we look forward to the

payrolls report this friday. we will have more with julie hyman later in the program. taking a closer look at the new republican congress and disconnect between wall street and main street. ♪

>> this is a special election 2014 wrap up on bloomberg television. i am pimm fox. let's get a quick check on today's top stories. republicans are celebrating a big victory, winning control of the u.s. senate. mitch mcconnell of kentucky is positioned to become the majority leader and set the legislative agenda for the rest of president obama's term. he's scheduled to speak to the nation at 2:00. race issiana senate still undecided. neither candidate got a majority of the votes so the runoff will

be on december 6. supporters of legalized marijuana pick up some major victories last night. oregon in the nation's capital approved recreational pot use. residents will be able to grow their own pot, but selling and would still be illegal. four states approved increases in the state minimum wage. those are the latest top stories. bloomberg politics up all night for election 2014 coverage. ony spoke to the rnc chief working with president obama. >> with a republican majority in the senate, he will have no other option than to work with republicans to get things done. we should have been doing that for the past five years. >> writes previous of the republican national committee. --reince previ

the president will come out and give the olive branch? >> i think he would be smart to fight for his presidency. we have a lame duck session with the current congress and then in january, the new congress sworn in. , one year of the year from now, people will be talking about the iowa caucus and new hampshire primary. unless he finds a way to get a head of steam up really quick. casual, ites to be will set him back in a big way. he has to come out and say that he has heard the message of these midterms. a "but"ere going to be in that sentence?

>> that is the way the president tends to speak. he needs to fight for his presidency. he wants to get things done. time becomeover very pessimistic about his ability to work with republicans. he wille places where only go so far. >> let's talk about taxes. any possibility for tax reform at the corporate level? >> it is very tough to get tax reform. there are winners and losers. major tax reform takes a strong president who is popular and persuadable -- persuasive. feared and loved on capitol hill. i don't see barack obama as that man right now. corporatelking about or individual tax reform or both, it's a once in a generation thing that happens. >> what about energy policy? think the president

would -- it's possible for something to get done on the keystone pipeline. the president has tried to keep his options open. >> i want to ask you about florida. an important state when it comes to presidential elections. rick scott over trolley crist. -- charlie crist. >> lots of people live in florida. ,he policies of governors failures and successes are looked at by other states and by washington. rick scott gets reelected -- he has not been a particularly popular figure. gets -- i think rick scott gets another chance. >> let's turn to wisconsin.

>> he was bloodied by the recall effort and survived that one. to scalp scott walker. it would have been a big offer democrats. he won by relatively comfortable margin and keeps alive. he can at least think about running. bit dubious about his ability to be a national player. >> you mentioned national player. chris christie went around on the stump for a lot of these republican candidates. >> as the chairman of the public republican governors association, he had a good night. he wins a bunch of big states away from democrats, including

maryland and massachusetts. he holds michigan, wisconsin, porter, ohio. -- florida, ohio. it is a big win for chris christie. you can go back to the donors and say if i run for president, i want you in my corner. >> speaking the language of bloomberg. that is the kind of thing people talk all about on this show. return on investment. >> thank you are much. forward to your bloomberg politics coverage in the future. we have more live coverage of the president's remarks coming up at 2:50 pm eastern. that will be right here on bloomberg television. and they have spoken don't seem to be happy about the economy. even though the gdp growth is good, stocks at record highs. why is there this disconnect? ♪

a special election 2014 wrapup edition on bloomberg television. after last night election, there seems to be a bit of a disconnect between investors and voters. all about their view of the economy. wages and incomes have failed to recover for most americans even as corporate profits hit records and stock prices have almost tripled. joining us now is david, the head of equities at asset management. joining me come a senior markets correspondent julie hyman. is there a disconnect between those who vote and those who own stocks? >> there is a disconnect because those who vote have not seen the wage gains you talked about.

been a perfect environment of good economic growth, but not too good. corporate profits increasing through cost cutting and revenue growth. andugh low interest rates low input prices. it has been a very good environment for corporations to increase earnings, gross earnings and grow their stock prices but the american public and the american worker have not seen that. >> the you think they are going to now see it? there has been this call for wages to increase at some point. we have already seen some improvement in job gains. how is that going to feed into the market? election plays into it from our point of view, the stock market continues to go higher either way with cooperation between the administration and congress, the market goes higher quicker because we should get

better economic growth and better wage gains. >> connect the dots for me. cooperation we see better economic growth, why? are areas of mutual interest between the administration and the republicans. the keystone pipeline, repealing the medical device tax, energy policy. they can work together to get some stuff signed and through, which could increase the confidence here in the u.s. and increase economic growth on the margin. that does help on the margin and confidence would be better. that would get the economy moving along a bit quicker. grows,ter the economy the more jobs, the more wage pressure and the better american worker. if they don't cooperate, we

continue in this 2.5% real gdp inflation,very low ok growth, good profit growth but not great, stock market continues to go up but the american worker does not see much in the way of increased wages. >> what about investing in defense stocks? what will happen to the defense budget? >> the defense budget has bottomed out here. we do like defense stocks. we have liked defense stocks. that was more geopolitical driven by ukraine and isis. that defense spending cut ease off will improve as time goes on. >> when it comes to things like the keystone pipeline or the , are youevice tax confident enough in the prospects of those various measures that you would be buying stocks ahead of that? stocks likethese

medical device stocks which we do own, it's based on the individual fundamentals of those companies. , theyical device stocks have benefited from more volume because of the affordable care act. there fundamentals have been getting better. they do generate a lot of free cash flow and their happen a lot of merger and acquisition activity. that has been positive for a spirit we have purchased these stocks and we do own them. something like this with the republicans taking over the senate in a strong way, that only helps those stocks. >> thank you very much for joining us. minneapolis.om and thanks to julie hyman. corporate america is also interested to see how washington takes care of business. , next ontive suite this special repetition of election 2014. electiondition of

2014. ♪

>> a special election 2014 wrapup edition on bloomberg television. i am pimm fox. we have heard from the politicians. what do the ceos have to say about coming change in washington? bob griese held for his number one issue. one of the easiest things people can do to help the economy move is immigration reform. >> that is number one on your agenda? >> there is no taxes involved. it could have a three point impact on the gdp. there is no other governmental policy that could have that dramatic of an impact without a direct cost associated with it. >> given the victories you have seen by the gop, they have said immigration is going to be

important for them to get through. do you believe they have enough of a mandate yesterday to be able to push something like that through? >> the mandate is to work with both sides of the aisle to come proper a compromise. i don't think either party got a mandate. you look at the information, no one -- they hate the gridlock. >> how do we get through the border security issue? >> i don't think that has been the entire lockup. there is a path there. we need secure borders as part of immigration policy. i don't think anybody disagrees with that. some of the fine details, there are some form of disagreement. those have to be debated and settled. >> what are you going to do? you've lobbied on various issues. what are you going to do? you get to do work while you

are traveling on the amtrak. when we go to washington, we have the advantage of 3000 companies. we have great access to washington and we deliver the message. when you talk to a lot of technology-based companies, one of their key issues is they cannot have enough qualified workers. they cannot find the workers to hire. we need the unemployment rate below be lower, but that is the general figure. the job marketf underserved by the people we need. >> i know you have outlined in speeches and to congress as well that there needs to be corporate tax reform. that is something both democrats and republicans actually agree on. but nobody can figure out how to do it. >> you have to have the spirit of compromise and the two sites coming together to work together. one thing i did like that i heard from yesterday, they will

let the minority party introduce in the midst bills. -- amendments to bills. everyone knows we have the highest tax rate, corporate tax rate on the planet. it is not competitive and is driving economic activity away from the united states. everyone knows that is a problem. now, we have to solve it. the selection has to be that -- this is not the time to celebrate. it's the time to get to work. let's hope the message is delivered loud and clear. >> if you could wave a magic wand, what would be the one piece of tax legislation you would like to see pushed through? >> i had a wand, but it broke yesterday. if i had a wand back, i would say if you look at the massive that u.s.assets

corporations have overseas that they don't bring back because they don't want to pay double taxation, if we could have some so that money can come back into the country, that is tied to some infrastructure bank -- >> that sounds like a dead in the water issue. >> let's be more optimistic here. i don't think it is dead in the water at all. it's a good plan. there are ways to get there. feld of nasdaq. we have live coverage of president obama's news conference. at 2:50 pm eastern. you can connect by watching "with all due respect." detailed analysis of the winners and losers of election 2014.

you must go to bloomberg politics.com now. i'm pimm fox. thanks. ♪

>> are coming up on 56 past the hour. it's time for bloomberg television on the markets. i'm julie hyman. let's look at the markets. stocks halfway through the session. we have records from the dow and s&p today. each of them rising .5%.

seeing gains on the back of that. i want to look at oil prices today. something we happen watching quite closely. we are seeing a rebound in oil climbing on a smaller than projected gain and supply. -- gain in supply. couldight's gop victory have big implications for the energy sector. listinge supporters of -- lifting a ban on exports. joining me with a look at what companies stand to gain from this possible change in policy is isaac, covering energy for us. who is the ally we are talking about? murkowski from

alaska who is poised to take and the senate energy natural resources committee. she was the first to come out in favor of listing the ban -- lifting the ban. she has been the most local proponent of it. doesn't she have the votes to get congress to change the law? maybe not. it's not an issue the white house has been very active on. it certainly puts her in a key spot to make a lot of push. >> in the past decade, we have seen an explosion in production in the u.s. because of the shell revolution. what would be the argument against not exporting? >> the commercial argument as refiners would stand to lose. producers would benefit from having the higher overseas price. but the refiners would lose to a competitive advantage. the political liability is gasoline prices.

everyone is concerned. a number of studies have doesn'td it either matter that much or could make gasoline prices a bit lower. everyone is terrified that if , there could ban be huge political backlash. >> some energy companies are testing the waters. you can apply for specific exclusions to export. >> our exports are searching. there are some ways the ban is not complete or company itself. companies are finding new ways to get around it. there were a couple of licenses issued this year. they're going to go ahead and lightly refined oil come which is legal. they will do it without express permission. >> in terms of the energy sector overall, what is the other issue when it comes to what the election might have changed? >> it's a bit more geographic

nonpartisan. it could be an area of compromise between the republican congress and the white house. the other key issue to watch with regards to energy is fracking. we had a couple ballot initiatives for local bands. some failed and some past. the governor of pennsylvania is pro-fracking. >> thank you so much. giving us a tour of energy policy and what may change after the selection. we are on the market again in 30 minutes. "bloomberg west" is next. ♪

>> live from pier three in san francisco, welcome to bloomberg "west" covering innovation, technology in the future of business. first, a check of the top headlines. oil prices rising. gold plummeting a day after republicans won control of the u.s. senate. here is what t-boned pick him -- he can says it means for energy policy. >> you will have to address the keystone pipeline to the president has