financial i think there are concerns. we liked financials and we liked it because we think there is going to be better loan demand. we think regulation will stay somewhat low. changes, our outlook, that might have to change. overall, if you look at financial earnings, they are up 42%. financials have done well. our outlook is that they continue to do ok. >> there you have the closing bell. for theclosing higher sixth time in seven days. we are getting a bit of an extended relief rally here. closing at session highs. >> pretty impressive gains.

the only thing that happened is exactly what everyone expected. it was not some new catalyst that you would have expected to create such a boost. >> everyone was in the green pretty --. nasdaq is back on top. at the close, what were you watching? >> it was mentioned that the obamacare, any repeal efforts might be off the table. that gave a boost today to a lot of those stocks in the health care . you saw the s&p 500 managed care index up today. you had ballot measures in several states that expanded medicaid coverage which was an extension for a lot of these states of obamacare. that shows that the voters wanted to keep this program and

a lot of the states are willing to extend this. that will be good news for a lot of the companies. another group that benefited from a failed prop in california are that kidney dialysis companies. 70% of the market and california. there was a proposition that would have cap their profits at 115% based on certain measures. that failed so it is full speed ahead. there were similar ballot expected to come up in other states. you had the medicaid expansion and the sentiment in washington changing the obamacare may remain intact. that is giving a lot of rally behind these health-care stocks. >> i have been watching treasury yields all day. ae long and remains after

pretty soft thirty-year auction. the short end is selling off again at the two-year yield has climbed to 2.95%. that is the highest on a closing basis since 2008. really creating a sharp flounder in the curve today. there are two things going on. the divided congress after less mice election reduces the chances of aggressive stimulus on the fiscal side. that has kept the long and in check. becauset end is rising this risk on environment is solidifying people's expectations for another fed rate hike in december. futures are back to pricing at 78% chance of a fed rate hike in december. there is even a chance of a hike that tomorrow's meeting. that is a long shot but still interesting that there is pricing on that.

>> let's look at the technicals. on the close we do have the index closing above the moving average for the first time in three weeks. this is a three-year chart. we did have the s&p 500 with its moving averages. now we have this beautiful uptrend. ,his year's volatility earlier the 200 day moving average held. on the recent volatility, the s&p cracked below the moving average. in blue we have the 50 day moving average. the 200 day moving average is sloping down as well. >> let's bring you breaking news.

we just had qualcomm numbers. falling less than expected coming in at $.90. with some revenues down 2%. a first quarter adjusted earnings per share of $1.15. ahead of expectations. they are talking about the ongoing apple concerns. the dispute with apple and contract manufacturers that have been negatively impacted. >> that will be what will be the focus during the conference call. any resolution with the ftc forh would pave the way resolution with apple. >> this stock is down significantly since september. back,n this modest bounce it still has a long way to go. when we were talking about

the yield curve and how there is still a lot of pricing in rate increases not just for this year but next year, what are your thoughts when it comes to the fed meeting tomorrow? could we get a surprise announcement in any way they could move markets? >> i think we have had enough surprises. i think it is difficult for the fed to surprise more than they did. they are trying to find their way toward neutral. if they were to put an exact number on neutral or do a little bit more with respect to an inflation target that they are watching that can be is rise. the market has gone a long way to pricing in a december hike and likely three hikes within 2019.

unlikely that we get a huge shock from the fed. that said, the two-year treasury yields today is making a new high. the 10 year to date high. rates are on the rise and rising quickly. that remains a constraint on stocks. quickly do you have to start thinking about the 2020 presidential election and what that will mean to markets? >> you are going to hear a lot in the media. do, the market is going to this happened in the 35 plus years that i have been doing this. , midtermial elections elections, the market will trade off of that typically. then investors try to get back to trying to figure out what will happen with the economy and case, therea in this fed over the next 12 months. most presidents and new congresses, our economy is like

a gigantic ocean liner. it is hard to turn and it does not happen quickly. situationgridlock that the attention is back too, will the fed make a misstep? is global growth going to slow? risee going to see costs whether it is wages or other impact -- costs? cycles you would trade for the two to four weeks, i think we will be back to what is the economy doing over the next 12 months very quickly. talking aboutt trade coming back into focus. you just put out a report on where we might see weakness. what -- s&p, our best guess on where margins go with respect to tariffs is already priced into expectations.

our estimate is maybe another 10 basis pound -- points if the on the goes up to 25% chinese goods imported to the u.s. if expand further, there is more downside risk. the narrative may start to shift a little bit and these stocks .hat have overreacted the narrative will start to shift toward these companies again as we start to price in what is the reality of tariffs versus our worst fears. we spent the last few months pricing our worst fears. us, we think there is not going to be a trade war. that is a low probability. emerging market growth is going to hang in there.

ago, we decided to stick our toe into emerging markets. most retail investors not just our clients but in general, retail investors they are underweight. everything international. emerging markets relative to our expected growth rate and of others, and a bunch different parameters, we thought it was an opportunity time after the steep decline to stick our toe in the water and that is what we have done. we upgraded to favorable emerging markets. we also like u.s. large caps as well. >> that is reflected today. thank you to our guests. newsve breaking earnings from kick to interactive. analyst estimates. higher than what was anticipated. the eps was higher than what was

anticipated. but the outlook seems a bit like to 52 to 60. wasconsensus estimate $2.63. the stock has been halted from trading. we can tell you that the outlook for this quarter is a little bit light than what have been anticipated. it's for saying quarter adjusted earnings per share is likely to come in at 12 to $.13. that is below estimates of $.15. payment volume up a whopping $.29. -- of paymentsny company on the frontier of growth. the forecasts are not living up to expectations.

>> that doesn't it for the closing bell. next is would you miss. this is bloomberg. ♪

what from bloomberg, i'm caroline hyde. here's how the u.s. stock market close in the green today as a relief rally post-midterm. the question is what'd you miss. jeff sessions resigns after

being the target of president trump's criticism over the russia probe. stocks getting a jeff sessions and midterm boost. gaining on gridlock, financial stocks getting a midterm bob. wall street bets on its slip in congress. let's talk about the green wave. three of four states for marijuana was on the ballot voted in favor of cannabis giving pot stocks a big boost. now cannabis companies are rallying again after the ouster of jeff sessions. how significant was yesterday

for the ongoing expansion of the legal marijuana market in the u.s.? results wereection critical. of the momentum that we saw in the 2016 elections were eight of nine ballot initiatives passed. we continue to see growing support among u.s. voters in favor of cannabis for medical and adult use permit test purposes. >> will me talk about the possibility of federal approval of marijuana, why with the removal of jeff sessions accelerate the process? it seems like the justice department has largely been opposed to it. >> jeff sessions has been pretty

vocal in terms of being anti-cannabis. that culminated in his whichment of justice memo was meant to give legal protections to operators at the state level. for jeff sessions, it is hard to imagine anybody that could be worse for the cannabis industry. >> you outlined how important certain leaders are for pro-pot. mitch mcconnell is a key opponent. nancy pelosi mean in terms of legislation? >> we see in democrats more broadly embracing cannabis as an issue.

nancy pelosi being a california democrat, she would be helpful. >> what of the publicly traded companies do you think have the best opportunity in the u.s. market specifically once the legal situation becomes more clear? cover any of the u.s. operators but of the canadian producers i cover, canopy growth would be in a good position. that gives them insight into the regulatory pathways that could create opportunities for them in the u.s.. specifically both companies have said when the farm bill passes that they will enter the u.s. have drive beverage market. with the passage of the states

it will decriminalize -- decriminalize cannabis, that will be the catalyst for cannabis to enter the u.s. market. right now, it is and pediment. that is why canopy growth will enter the u.s. market in the regulatory framework. constellation operates in the u.s.. they were not want to do anything that would

federal laws. right now, the current construct makes it very tough for a large established company to participate in the u.s. opportunity. after the states act, that would put those roles in the hands of the states. it would remove the federal risk. >> great to get your perspective. coming up, the split decision. maxine waters joins us for more on the midterm election outcome. this is bloomberg. ♪ ome. this is bloomberg. ♪

gridlock in washington. it democrats take back the house and republicans expanded their majority in the senate. withan interview congresswoman maxine waters. thank you for being here. how would your leadership look under the house initial services committee? >> as you know, we had a few

steps to go through before the committee assignments are finalized. i am very hopeful and pleased that i am in a position to be the chair of the financial services committee. it is no secret that i care a that iut consumers and was very supportive of the consumer financial protection bureau. that i have had to question some of our big institutions about their and i believe that my responsibility is to continue to make sure we have fair banking that people are not only treated fairly but that we get rid of any fraud that may be in the system that causes people to lose their homes. we went through this crisis in 2008 where we had all of these exotic products that were on the market. many people signed on the dotted line.

when the devil came do in the interest rates increased, they lost their homes. on that. focused the consumer financial protection bureau i think is one of the most important centerpieces of the dodd-frank reforms that we did. it has been under attack from the republicans and i have to do everything i can possibly do to undo some of the harm that mr. baldini has done. -- mr. mulvaney has done. >> it sound like you to will be butting heads. >> i think that he is going to >> i think that he is going to come to understand that he cannot just summarily dismiss the advisory committee. that is not going to work. this diverse group of people who were there to have that bureau carry out the mandate of the

reforms that would put in place, it is extremely important. additionally, it has been very successful. under another, he returned to $12 billion or more to 30 million consumers. they took care of over 1,000,000.3 complaints that came into the bureau. a clearll clearly be part of your tenure. presidentlso pressed trump on a host of different issues including his financial dealings with deutsche bank. gavel of thee house financial services committee, will you issue subpoenas and go after the tax returns? will you try to get more information about deutsche bank as well? the first thing we have to understand is that in this committee we have a lot of issues and concerns and i am not just focused on the president

and dealing with some of the concerns about deutsche bank and money laundering. that is just one piece of the business that we have to do. you know we have requested information from the treasury about everything from sanctions to deutsche bank. that deutsche bank is identified as one of the biggest money laundering banks in the world perhaps. they are the only ones who were amenable to providing loans to this president. we know -- we want to know some things about that. don't forget, we have housing. we have the national flood insurance. we have had. we have all of this. it is just one piece of the business. >> let it be clear, you will continue to investigate the financial dealings. will you issue subpoenas? >> we will deal with that will make him to it.

we have the power to deal with subpoenas but we are not just focused on that alone. if in continuing some of the work we have done looking at deutsche bank, if it becomes time to answer that question and deal with that, we will deal with that. >> another big bank that has drawn criticism is wells fargo. will you work -- look at them? >> we have recently found out about more problems with wells fargo. there was a big revelation about the fact that they were creating that consumers did not know about. they were fined for that. thatcreated insurance their clients did not need. now we are finding that there are other fraudulent activities. we will meet with them and understand what is going on. i have told the ceo that i would

be happy to meet with him. we will correct those things in the system to the best of our ability that is causing harm to our consumers. we will continue to look at those kinds of activities. you have gone after payday lenders. will you continue to do that as well? >> we certainly will. and automobile title loans. we are talking about products that are devastating and products that are causing the most vulnerable people in our society to have less ability to control their finances. yes, we are going to look at payday loans and these title loans and other kinds of activities that we think deserve to have some oversight. have the challenge of trying to balance the voter

unrest and frustration. the mistrust in financial institutions. while also recognizing that they as an engine for the economy. how do you strike that balance? >> it is not easy. i want you to know it requires experience. i am fortunate to have the experience having served on the committee for quite some time. i understand that you are correct that the banking services of this country are very important. we cannot do without them. we also must understand that they should not control the congress and they should not come up with products and services that basically rips off the consumers. >> i have covered you for several years in your work. i want to cut through the noise.

we talk about a lot of these issues and you would get pushback from republicans, but i have also covered you with the jobs act, your bipartisan work. is that something you want to continue, something like the jobs act where you move these legislative packages through committee with bipartisan support to help free up capital to try to get banks to start lending again? rep. waters: absolutely. this is why a lot of people don't understand, because they don't get the kind of coverage in the media because we are not talking about sexy issues. i have worked with the opposite side on a number of issues. i believe in small businesses. i believe in creating opportunities for access to likeal and i have worked on the jobs act or my colleagues on the opposite side of the aisle and i will continue to do that, because i think that small businesses create jobs. as a matter of fact, it is so important for us not only to

understand that, but to do everything we can to make sure they are able to operate in society. a better term, this is a unique term in political history. the president has criticized everyone, yourself included. he has also gone after the chair of the fed. is it appropriate for the president to be criticizing the chair of the fed? presidents: the should not interfere with the federal reserve. the president should not try to dictate how they make decisions about interest rates, how they make decisions about monetary policy. the president doesn't understand. he isn't a dictator and he cannot interfere. as a matter of fact, he could cause problems in the markets by just saying things he shouldn't say, because he does not understand the complexity of how they make those decisions. powell and powell

came with a good reputation about being fair. he should leave him alone and let them do their work and not continue to try to make them do what he would have them do. >> when i interview republicans, particularly in the midterm elections, they talk about the jobs added last month, but from do perspective, what exactly you identify as the biggest potential risk for the economy in the short term? we have as: i think big risk in the economy if we don't understand the housing crisis that we're in. we have a housing crisis. one half million people are on the streets every night with no place to go peeping -- with no place to go. we have people who do not have the first and last months rent in order to get into a rental unit, that don't have the money for a down payment. we have to understand the role that housing development plays in this economy. kevin: so what is your message

to the secretary? rep. waters: my message is, don't hurt the most vulnerable people in our society by trying to increase the rent that they pay, whether you are talking about public housing or disrespecting the real problem that they have dealing with the private sector. i don't think that the secretary really does understand what we must do in order to ensure that we continue to have public housing, with investment in public housing, again for vulnerable people and that the rent they pay is there and does not exceed 30% of income. he has a lot to learn about how hud should be operating. kevin: congresswoman maxine waters, talking exclusively to bloomberg. any thoughts on jeff sessions resigning? rep. waters: i'm just learning that he has entered his

retirement or firing or whatever you want to call it, but we also know the president has said over and over again that he wanted to get rid of him. he is mad at him because he recused himself and he wanted him to be his attorney, to protect them from an investigation. i guess the president is going to continue on this trail that he has created to get rid of mueller and that is really appears to be going and that will create a problem. kevin: we will have to leave it there. appreciate it. rep. waters: thank you. a fantastic interview. be thank you. from housing to the federal reserve, a covered a lot of basis. >> it has been quite wild. a wild day and it should be a wild couple of years in financial services. >> we still have a lot of other things to do with other than politics. there is a lot more going on. the fed is meeting tomorrow in washington and we will get a

rate decision. most people don't expect any movement there, but we may get some insight into what the future holds. michelle myers is the head of u.s. economics and merrill lynch. she is joining us now to talk about it. my first question is, since we don't expect the fed to change their rate policy tomorrow, are we going to get enough insight into whether they will stay on the path that powell put them on? we are probably not going to get much information. maybe a few changes to the statement, housing has looked a bill that softer. places running close to target. i don't think we will see anything to significant that will allow the market to adjust their expectations for the fed. frankly, the minutes of the meeting will have to be much more informative. that is what we'll hear about the debate within the fed, whether the fed is talking about

technical adjustments and the future of monetary policy. in the statement thursday, i don't think we should anticipate much will come out of it. as romain hinted at, it has been a while since we have been talking about anything but politics and this reminded us that there is this other world out there. has anything changed in the other -- in the underlying economy and i am thinking about the voluntary -- the volatility in the market that should change the fed's thinking at all, or when you look at the data, is everything basically in line with how the fed sees the world? michelle: whenever we have big market moves like we had in october, investors are looking for a reason. they are looking for a culprit and i always go back and say maybe the market is signaling something about the economy and we will start to see that in the data. i don't think that was the case this time around. we did not see evidence that the economy was slowing. it has continued to progress

whether you look at consumer spending figures, confidence measures, they are bumpy on a month-to-month basis, but generally, this trajectory has been found. from a fed point of view, i think it was par for the course. they are tightening financial conditions, hiking interest rates. we should be seeing some movement in the markets like we saw in october, but it is certainly painful for investors in the stock market. it wasn't broad-based and it wasn't something that changes course in terms of continued rate hikes. romaine: what do you think about how you factor in the housing market? tightness, they are adding to that witness. how does that factor into the fed's thinking? michelle: housing has been an area of slowdown. it is something we might see in that statement, that housing has become a headwind. it is really mod list -- it is

really modest at this point. you don't have much reason to be concerned about a collapse in housing because we haven't overbuilt. inventory is still pretty lean. ,ome sales are weakening depreciation is probably slowing, but we should anticipate a dramatic adjustment in the housing market even with interest rates ending higher. i think we're seeing the same peaks, though from here housing is turning into a slight drag for overall activity, but not a significant headwind. a major: we pulled fiscal initiative off the agenda, but what about the deficit, what about debt in the u.s.? where does that drive the dollar? michelle: the debt of these the is high. it is unsustainably high, if you listen to a lot of pundits. the graphics are not favorable and on top of that, we had this

fiscal stimulus most recently. at some point, the deficit will become problematic. it is not obvious that is a near-term concern. if you look at how markets are behaving, they are able to digest the fact that we have this large deficit of high debt. joe: one area you have done a lot of work on over the years and that is central to the andomic debate is housing the housing data has been bleak for the year. we have seen that show up in the homebuilders. what is going on here? how much is that affordability, how much are the tailwinds intact? what you see going forward for housing? michelle: affordability is a key factor when you think about housing demand and the imbalance in the market. affordability has started to become strained. mortgage rates are higher, prices are elevated in route income is rising, it is not enough to offset the fact that

you're seeing these challenges. affordability is a bit more dramatic. we have been heading modestly lower. haveur point, you do tailwinds and the new cohort is a big generation. you can make the case that there are pent-up formations we will see. it is youthink about have these short-term stories around the price of housing and availability of housing and the perception around that, then you see demographics. that offsets what could have been a bigger strain for the housing market. michelle meyer of bank of america merrill lynch. always great getting our perspective. now, and administration shakeup just hours after polls closed. attorney general jeff sessions announced his resignation. it's welcome bloomberg news national political news reporter. is this really a resignation? >> it appears by all indications

that the attorney general was pushed out. he made clear that that was the case -- he made clear that that was the case in his resignation letter. he said, at your request, i am submitting my resignation. joe: the idea of the fake resignation is not unusual, but it is rare they make it that clear what happened. sahil: it is very clear. he is making a very clear and we have seen publicly what has led up to this. president trump has been hammering his own attorney general publicly in statements for a long time because he is upset that jeff sessions recused himself from the mueller investigation. he has suggested that he believes sessions'role is to stick up for him. sessions of use that as in conflict with his role, which is to stick up for the just apartment. -- for the justice department. active -- the acting

replacement will be the current chief of staff at the justice department and he is viewed as a trump ally. he has been critical of the mueller investigation, so as you can imagine, there are a lot of of questions being raised by democrats as to what this new individual will do. rosenstein is currently in charge of the mueller investigation even the sessions was recused, but if sessions gets replaced by someone above rubenstein, -- above rosenstein, they would take control. not a single word has been said about the mueller investigation. they know how the president feels about it and they don't like to upset his voters. what type of oversight is the going to be over what occurred? an excellents question because democrats will control the house, which means they have subpoena power. they control the oversight committee and the intelligence committee. a democrat from maryland is in line to be in charge of the oversight committee and he has said they need to investigate the real causes of this

termination. he is no fan of jeff sessions. jeff sessions is not exactly a progressive hero here. the left hates everything he stands for but they do like that he stepped aside on this investigation and he has tried to preserve its integrity. thanks for the perspective. ballotsp, clean energy and initiatives across the country were crushed. we'll take a look at what it means for fracking in colorado. this is bloomberg. ♪

caroline: time now for smart segment whereekly we dig into the numbers. >> during the is a senior trader. thanks for taking the time.

what a time, the volunteer the -- the volatility we have seen. >> we are coming out of this building the market is . i would be surprised if we go higher from here. one of the reasons it looks for a similar to what happened earlier this year, we had a big downside break and a bounce of seven percent but it took numerous months to get there. you see big spikes and big downturns and that -- we come back to the current environment, a big downside break, explosion in volatility and hopefully a lot of information, but i realized that we have had numerous corrections since 2009. >> it does seem of his volatility will ensue. there's something interesting in the charge for their a lot of

bearish elements. there is something head fakeish about this. i would be excited -- i wouldn't be surprised to see it is leg down. you have an interesting chart here, showing that the u.s. could be starting. frank: one of the major themes for the u.s. outperforming the world is starting to reverse. this is not a new theme. it has been going on for 10 years. on occasion, we see this ratio can get extreme and eventually it has to pull back. that is where we are now. i think that comes in more. another way to look at that is the bottom portion. this is the 14 week rsi line. persist for an extended period of time. i would think that this line comes in and hits the line sometime soon. >> in terms of trading, how would you position yourself? would you buy the all world

indexes or trade with the s&p 500? frank: i think they will be moving together. we can talk about that more on the next chart. maybe five parts all world and to s&p 500 until the ratio even doubt? frank: i think you want to position yourself to be more weighted to internationals than the past six months. >> now let's take a look at the dollar. something we look at charts on often. frank: this is the most important asset class right now. think about how this performance bifurcation works for the s&p versus the world. that started when the dollar started to rally here in april. since that point, it has ,eveloped numerous patterns which breakout much higher. that can have big applications hits,tional stocks to get as we've seen over the past few weeks and months.

world,are bullish on the you don't want to see that breakout of the dollar. >> sometimes, technicians will look at charts to see what pattern will be forming in the future and this looks a gay and this looks like it could be supporting your bullish pattern. frank: i don't know if this will get us there. i'm concerned at what would happen to the rest of the world equities in 2019 if that happens. >> it could bring more volatility, fitting to what were talking about. thanks so much for joining us for smart charts. back to you. caroline: -- romaine: let's now turn to the oil markets, where last night in the state election in colorado put caps on drilling rights there was struck down by voters. --l bring in our bloom berg our bloomberg managing editor for oil and gas. a $13 billion

industry in colorado. colorado has stuck -- snuck up on the u.s. states. that has seen a significant upswing in drilling in oil and natural gas, so much that we saw bp relocate its headquarters on short to denver just to give an indication of that. joe: there are companies for whom what happens in colorado is a huge part of their business. tina: they actually said last week they couldn't give 2019 outlooks because they need to wait until the results of his vote. what you're seeing today is a pause in those stocks. pdc energy is one. noble energy gave an update today. they were waiting to see what voters would do in colorado. caroline: do we need much more trilling in the u.s.? that ite issue has been tends to get clogged in places. we have seen that in west texas. we see it happening in the canadian oil sands and we have

seen that in the back and most recently. what the colorado region does provide is a region that is not overwhelmed for production. caroline: that -- romaine: does it have the reserves? tina: it is one of the largest shale places. i forgive you for not really knowing it, but maybe you will come to know it. there is so much natural gas in the past fears that a pipeline that was meant to go from east to west had to be switched to go west to east. thatwas done with the idea the western region would need more gas and they are producing more than they need now. joe: what does this say what the politics of shale, that voters surprised investors by favoring it? tina: is interesting. this has been a one-way that environmentalists have been trying to slow down fracking, by asking voters to weigh in. it hasn't proven entirely

successful and i think what we have seen even today in colorado, we saw the ceo saying he looks forward to working with the new governor, a democrat as well as the new legislature. the house majority is democratic. there will be some adjustments, but they will have to come through regular legislative process. much -- how caroline: how much will be see the turning of the house affect this? tina: it depends on -- with nancy pelosi is the leader, you might see a revival of the climate committee she put in place last time there was a democratic majority. that could bring legislation and try to have some carbon tax or legislature passed. even the makeup of the senate and the president, it doesn't seem likely. oil and gas companies are expecting gridlock and that is not necessarily a bad thing. joe: we have seen a pretty genetic drop in the price of oil since early last month from the mid 70's to the low 60's.

today we have an opec meeting coming up. how does that swing affect their calculations? are: most oil companies basing their investments on 10 years, five years into the future. that is not necessarily going to change the calculations, but what is interesting is i read a note or an analyst with some of writing the fact that the called for people to go short in october. you could've recommended that people go long on oil in october, it just depends on which two weeks you are betting on. , we are eight-month low coming off a consecutive days of losses and even the bullish note from opec could do much to turn around what happened today. caroline: talking potentially about production cuts. breakdown in the oil markets. president trump woke up to a note -- to a new fiscal reality and the democratic controlled

house will be a check on the white house agenda. here's what it could mean for the president's trade war with china. with the go more hawkish because this happened? shery: that is one of the speculations. now that you could face more political gridlock, will the president returned to his foreign-policy power which has happened over the past two decades for different presidencies. you don't really get a cohesive narrative on trade, whether it is a rebuke of president trump's policies. we saw senator mccaskill in missouri losing her seat. she was against president trump's policies. we saw other people who backed the president on tariffs retain their seats like congressman mike on in illinois. given that we don't have a cohesive narrative coming from the midterm elections, there is a lot of speculation of what approach president trump could take. what did markets do, i am catching up, what did markets do

in the wake of the election and how are traders specifically reacting to the development? shery: we were discussing this last night. joe: that seems like a long time ago. i don't remember anything that happened. shery: basically, asian stocks rallied in the beginning when we saw that republicans would not be losing big-time and then we saw them curve act and fall a little bit. the asia-pacific gained ground for the second consecutive session, although tying this to be china conversation and the fact that president trump may have to rely on china when he comes to relationships with north korea, we saw that take a dive in the last few minutes, because we've heard that mike pao was not going to meet his north korean counterpart. that gives me pause to think that president trump does need china. romaine: we will talk about

their relationship. we heard the chinese vice president speaking at the forum in singapore who had sometime for words, saying they would be bullied. it makes me wonder what angle they will take in dealing with trump now that we've gone through this. shery: not only the vice president, but the president came out himself, calling out this law of the jungle. the key point remains that nobody right now expects china to give up their long-term policy. china 2025 trying to upgrade technologies, to be a competitive rival in the world stage. right now, it is just gauging whether those objectives of the chinese policymakers, how they line up with america's own goals. downine: breaking it all even we can't think back as far as 24 hours, it seems a long time ago. don't miss did break asia at 6:00 p.m. that is all on "what'd you miss?" romaine: bloomberg technology is

next. joe: have a great evening. this is bloomberg. ♪

emily: i am emily chang coming to you from seattle. the midtermis hour, elections are hour, but the security risks remain. we talk about the cyber threats that hang over a coming elections worldwide and why despite the outcry, facebook and google are the big winners of the night. plus, reid hoffman speaks out on facebook's handling of the elections and shares his prescription for