Was when the ceiling went. It is interesting to see reporter what is happening in the bond market. To see what is happening in the bond market. We have seen curve flattening throughout most of this week. We see a little bit of steepening today on the back of the payroll number. We see that ripple around the world, and that is reflected in the german 30 year. Twostens in the state basically back to where they were almost a month ago. Alix thanks very much. The s p now dropping like a stone. House Speaker Nancy Pelosi speaking right now. She is saying to everyone, be calm, be confident, be patient, but she did call biden president elect biden, having a strong mandate to lead. She says she is hoping republicans can come back to the table on stimulus. Moments ago, we also heard from larry kudlow as well that they also wanted to try to move forward on stimulus and come to some kind of agreement. Will they or wont they is really the big question, what the s p taking a nosedive as we are still trying to determine the race from the white house. The latest from arizona should be coming from Maricopa County that encompasses phoenix. Joining us for the latest, kevin cirilli, bloomberg chief washington correspondent. Where are we . What are we going to know today . Kevin first and foremost, joe biden has a 5500 vote lead against President Trump in pennsylvania, and theres about 30,000 votes left to be counted in the city of philadelphia, predominantly a historically democratic part of the state. Plus, additional mailin ballots to become did over the next couple of days not just in pennsylvania. Likely a recount in georgia, in nevada. Election officials saying those tallies will come in over the weekend. And in arizona, you mentioned Maricopa County. Bloomberg news has not called this race, but without question, if you look at the data, if you look at the Historical Information that we have before us, this is a Major Development as it relates to joe biden taking the lead from President Trump in pennsylvania. Secondly, the Trump Campaign has put out a statement. They said this election is not over. They went on to say they will continue to fight. The third and final point, into ours the House Republican caucus is scheduled to have a have a Conference Call in congress, where likely this will be the first time that the House Republicans have been able to gather to talk about the developments in recent days. It comes as publicly, senator pat toomey, a republican from pennsylvania, said earlier this morning that the president s comments at the white house yesterday were hard to watch. Privately, after conversations with multiple members of congress throughout the morning, i can tell you that the frustration is palpable amongst republicans that there does not seem to be a viable legal argument that has been presented this time. Guy on that note, Mitch Mcconnell over the last couple of minutes saying that there will be Court Decisions that will affect the election. , thaty that legal route legal challenge that some in the Republican Party are still focusing on, Mitch Mcconnell believes that is still a live debate. Thank, indeed. Lets carry on thank, indeed. Lets carry on the thank you very much, indeed. Lets carry on the conversation. Towas interesting listening the various comments that have been flying around over the last few minutes, rick. I focusing on what we got from larry kudlow, talking about a peaceful transfer of power. I have to ask you, do you think there is an exit plan for the republicans that thats point at this point . Do you think there is an exit plan for President Trump that is being actively talked about . If not, how big a problem could this be . Rick i do think President Trumps comments yesterday were putting a lot of republicans in disarray. I think they would have thought that president would have kept his options open, and to have that more of a transitional approach rather than a confrontational approach. Being said, theres a lot of questions being asked within the Republican Party. What do we do if the president isnt prepared to concede, assuming that the current status of these states that kevin bidenned stay, and joe has over 270 electoral votes that he needs to be president . The other questions being asked quietly this morning is if the president is reticent to look at a transition of power. Who goes and talks to him about it . This is not a president who has close personal advisors other than family members. So that will become an even bigger issue once this election is called, if it is called for joe biden. Apx i do want to say that right now has called the race for biden, saying that joe biden is elected president of the United States. Bloomberg is not calling that. We are falling ap that we are following aps we are following aps lead on certain states. Ap has called the race for joe biden. Legally, can the Republican Party concede for trump . Is that a thing . Rick donald trump is the only one who can concede, but a concession is almost irrelevant. There have been many elections, some of which i have been involved in, where the opponent never conceded. It didnt matter whether they conceded or not. If they lost, they lost. I am not sure what situation the president is going to find himself in. I do think the comments mentioned earlier on this broadcast, that senator Mitch Mcconnell is looking at legal remedies that have been requested, and that that may change some of this outcome, i doubt it. If this is the approach the republicans are going to take, it is just a matter of time. The clock is going to run out. Ap it sounds like has made its announcement. They are the Gold Standard in election forecasting, and i think alix actually, let me interrupt you one second. We are confirming now that the tweet has now been deleted. It came from a fake account. So fair enough. However, you can see where the conversation is going. Rick the real ap is the Gold Standard. [laughter] alix the fake account is not. To your point, if we are headed there anyway, that is part of the conversation. Rick pennsylvania is the only state that biden needs to win to lock it up. Ts 20 electoral votes put him over 270, and it means the president has no longer any electoral options to try to win this election. Therefore, he would look at his legal options. We know what the various options are, and they seem incredibly limited. One of the big issues the president talked about even a week ago before the election were ballots coming in after election day that would be counted in places like pennsylvania. These are ballots that may be got mailed the day before the election, didnt arrive on time. According to pennsylvania election law, those ballots would normally be counted. That was the issue he took to the Supreme Court. The Supreme Court chose not to enter into it until after the election, if it got brought back to them. The reality is where the current election stands in pennsylvania, you dont need those ballots to change the outcome. Joe biden has now run ahead of donald trump in pennsylvania, and the likely votes coming from big urban areas like pittsburgh and philadelphia, counties like aregh and allegheny, decidedly heavily weighted towards joe biden. Once they call pennsylvania, they have called the election. That limits Donald Trumps options significantly. Alix fair point. Thanks very much, Bloomberg Contributor rick davis of stonecourt capital. Nelson, ubs is nick head of global and European Equity strategy. White a week if you were a tech investor, a European Equity investor. How did you interpret the equity action over the last few days . Nick i think we had written the report previous to the election, and we are all discussing that we have certainly noticed that european equities within a Global Portfolio have performed pretty well whenever you saw bidens odds improving. It seems to us that europe as a region was likely to be a beneficiary of a biden presidency, relative to the status quo. I think we were referring earlier to european equities perform well. To be fair, lets put it in context, they have massively lagged behind the u. S. All year, undery have been really relative performance, but given what it looks like the election might turn out to be, per our view, that looks to support european equities, a slightly better cyclical backdrop, maybe slightly better news on trade. That is what is driving us right now. Guy just taking a step back, i am trying to understand the narrative this week. I am trying to understand how we flip from focusing on the blue wave to focusing on divided government, and then the rewriting of the narrative on that. The only logical answer i have heard anybody come up with his stocks want to go higher. That is the narrative. How solid is that . People just want to buy stocks, and they can rewrite the narrative retrospectively to justify it. Nick i think the context i would say is up until monday, we had a pretty solid collection. Remember the peak in europe was october 12. Then the back half of october, 8 , 9 correction in the European Equity market commode is pretty much in line with what we would expect equity market, which is pretty much what we would expect. We are coming from an area where if the price action is where it was in the middle of october, i think things would be very different. Pause, and that allowed equities to do well. To your point about people having to buy equities, this is whether you want to call it financial repression or there is no alternative. Those arguments are still in place. When you look in particular at europe, european equities are pretty much the only major global asset class that give you a yield in line with the 30 year average. The dividend yields on european equities is just over 3 . That is pretty much bang in line with european averages. I dont see that for treasuries, for corporate credit. Bunds buns 10 year are negative. That does force people back into equities, so whenever we get these pullbacks, i think we will see people buying on those dips, and maybe that is partly what we saw this week. Alix but youve got the virus, meaning we are seeing more lockdowns. What do you do with that . Can september, i we were highlighting the fact that the market in europe was ignoring the daily new cases in terms of covid19 cases. We saw that reconnect quite aggressively in the middle of october. We saw that it percent, 9 pullback. That was exactly to your point. It was the virus we were seeing, in cases, and more important for equity markets, we were seeing government responses to that. We do have renewed mobility restrictions here in the u. K. , but also in france and spain and germany. Of course, and europe in the last couple of weeks, we have seen that reflected in the macro data. We have seen weaker pmis in europe, and compared to the u. S. And china, europe is definitely lagging behind in terms of that macro recovery. We dont dispute that, and we do see some Downside Risks certainly to numbers across europe as we exit this year because i think those mobility restrictions in q4 will hit. I guess the point i am making is if we see some certainty out of the u. S. Around elections, we can then revert back to the evaluations we are looking at in terms of the relative call between fixed income and equities. I think that is what gives us the support which we had last friday. That was a level which i thought was quite a good support for european equities. Care haveand health been the big outperformers. Is that something you are comfortable sticking with . Do you think people should be rotating out of the weekly rally we have seen in those spaces . Do you think they should be rotating towards other areas . Is this something you would havent dissipated . That she would have anticipated you would have anticipated . Ask i think it doesnt look though there is a blue wave, and the senate is still obviously uncertain, but it doesnt look like you will necessarily get a democrat senate, so the blue wave that people were looking for is maybe not coming through. I think health care, depending on what a potential Biden Administration would do in terms of rules and regulations about that, was obviously a sector that was underperforming. Theur view, is it is one of most attractive sectors, so we would certainly be overweight health care relative to the consumer staples, the beverages. It does look cheap for the most part in the market. It does have relatively high dividend yields, so that is something we would certainly keep with overtime. In europe, it is not such a big sector, with software, semis to a degree. We just dont have the exposure we have in the u. S. We are neutral on that particular part of the market. Other areas we quite like. Autos, for example. I thing that is an area doing well, mainly because of corporate profits in the qc results that were very strong for that sector. A more maybe for. Rocyclical look. Guy it now appears as this we as if we will have a call between Boris Johnson and ursula von der leyen on saturday. We dont know if it is a makeup call or a breakup call. Nevertheless, if it is a deal call, short term, do you buy u. K. Assets . Nick i think we have highlighted the u. K. Equity market relative to europe as trading pretty much at 20 year lows in terms evaluations. It is incredibly extreme, and it is wrong to think that the u. K. Is full of cheap banks and energy stocks. It is about 2 3 of the sectors trading at larger discounts than they normally do to their european peers. I think there is a high degree of brexit uncertainty or discount priced into u. K. Equities. I would argue if you get a breakthrough in any form of trade deal, even a relatively revolves around goods, when services are a much bigger part of the u. K. Economy, any form of deal would be good news for u. K. Assets. If you get a strong rally in ofrling, member about 3 4 the profits from u. K. Companies come from overseas. Beasley a big move for sterling. Hat cap the ftse 100 move you, nick. O see thanks for joining us. Coming up, we are going to look at the strength of the u. S. Labor market. Constance hunter of kpmg is going to be joining us shortly. We continue to watch the count. Alix the latest numbers out of Maricopa County in arizona, where phoenix is, biden now leads trump by over 60,000 votes. You are looking at 50. 9 to 47. 7 . Votes. Has 11 electoral we will keep you updated on all of those scores. This is bloomberg. Alix the u. S. Labor market defying expectations for more subdued gains. Joining us now for more is constance hunter, kpmg chief economist. I have never been part of a jobs friday the felt more like an afterthought. What was your biggest take away from today . Remove thatets during the reference week, we were running at about 60,000 cases per day, and now we have an elevated case count close to 120,000 a day, so that is double. When i look at this jobs report, my first thought is this is some generally pretty good news in the private sector, not good news in the government sector. When i juxtapose it against what is happening with the virus, it gives me a lot of pause that these are trends we can trust Going Forward because the virus is really driving the bus on the economy. Guy in terms of the breakdown of the numbers, permanent job layoffs look like they are fairly steady at the moment. We have certainly seen some evidence within the data that the economic trajectory is leveling off. Is that another take away from this set of figures. Thetance sure, but again, increase in virus cases really has me somewhat concerned about the future outlook. One area where we have seen a good amount of rebound is in leisure and hospitality. I concern is does that get to continue if we have cases doubling from the time that the survey was taken. I would say that there is a lot in the survey to suggest we have some fissures in the system. The other is what is happening with state and local government jobs. The concern was always that if we didnt get a fiscal package, we would start to see massive layoffs at the state and local level. That accelerated in october. I see no reason that wouldnt continue to accelerate in november and december without some kind of fiscal assistance. That there is a narrative on the headline, it is still pretty good. Constance thats true. Alix does that remove the doneus to get a stimulus conversation . Constance obviously this ties into the election outcome and the makeup of the senate, which we are not even going to know in december because we need to have those georgia runoffs. The odds of a skinny bill need to be fading. I would say that i joe biden a joe biden that presidency could mean Something Different than if it was another democratic when simply because he spent so long in the senate. He has a relationship with Mitch Mcconnell. It is possible that if there were a combination of divided senate versus white house makeup, that this is one that could lend itself to some sort of possible conversations about a skinny bill, but i think without a skinny bill, you are going to continue to see layoffs at the state and local level. The quantum difference here, in terms of the Economic Impact . Say say 500 billion or 1. 5 trillion, what is the multiplier between those two numbers . Trillion a significantly 500 billion . Than i am wondering how that works in terms of the magnitude of stimulus we will get. Constance i would say theres a couple areas where stimulus is needed. The first would be continuing unemployment step up and continued assistance for a pandemic, and then an extension of the length of time people are receiving benefits because that is about to run out. That has got a very high multiplier. Maybewe are looking at 300 to 400 billion that could carry us until the end of the Second Quarter of next year if we were to tap all of that up appropriately. Then you have to look at the assistance to state and local government, and to Health Care Infrastructure that is going to help us get a handle on the virus. Here, we are not necessarily talking about a large amount of money. If we dont get a handle on the virus, the negative multiplier is very significant. Alix lets say that we dont get something that the market is expecting or that we think we need. What does the fed do . Constance this is a great question. Here i dont think they would need to do yield curve control because i think there would be downward pressure on rates. Was very clear yesterday in the queue when day that they can only give loans to solvent companies in the q a that they can only give loans to solvent companies. Limited asis really to what they can do to assist those companies because they are on the verge of becoming possibly insolvent. I think here, and response to the pandemic, without fiscal assistance, that is why jay powell has crossed that line and spoken everything will time he has talked about the importance of fiscal assistance. In the face of the pandemic induced downturn, the fed is kind of limited in what they can do. They can maintain liquidity, and that helps large companies, but that the the survey small comedies are the ones hurting. Guy lovely to get your views. Constance hunter of kpmg, thank you very much, indeed. This is bloomberg. Up thee are wrapping week. What a week it has been. Lets talk about the session. The stoxx 600 negative on the day, positive on the week. Today a pause, a little bit of a recap, a review of where we are after the frenetic price action that we have seen. On the week, the stoxx 600 has been a huge upper former, particularly when you price u. S. Markets in euros, not dollars. If you do not put the currency overlay, similar performance. When you take a look at what is happening in euro terms on either side of the atlantic, what you are seeing is a massive outperformance of the stoxx 600 versus the stx over the last five days during this tumultuous week. We will move onto to that graphic in just a moment. There you go. Here is the week. That is not the currency overlay, nevertheless, what you see is a big outperformance of those markets. , 6 you see is a 5 performance in the states. 4 or 5 . 8 europe it has been 7 or depending on which market you are looking at. The ftse 100 absolutely flat. We have seen a positive pound. The dax and the cac 40 are down half of 1 . Again, huge outperformance this week from both of those markets. Let me show you what is happening with the pound because we have seen a pop in the pound as we got news we are good to see a call between Boris Johnson and ursula von der leyen of the european commission. Is it a makeup call or breakup call . Nevertheless, i think we will recap the progress that has been made. The trading a little bit higher. In terms of the sector story, let me give you the narrative. Everything is in positive territory. , the insurance sector is the upper former. Is the out performer. Financial services had a good week. Chemicals, construction, technology, the rotation towards europe has been strong. Now i was hoping i was going to nevertheless, rsa trading up strongly at the moment. Meticulous has had a negative day. Positive like other luxury stops it is benefiting from the china trade. Alix speaking of, lets get more insight into how european luxury stops are doing. Joining us on the phone from london is Bloomberg Opinion columnist andrea fells dead. Andrea felstead. Been importantas in the recent months because it has recovered strongly, whereas europe and the u. S. Have been weaker, although the u. S. Is also recovering. The question is will it hold up. Forecasting chinese consumers could account for half of all of the market by 2025. It is very important for those luxury groups. Guy in terms of the deal being done with alibaba, walk me through the significance of that in terms of delivering luxury to chinese consumers. It is increasing that investment, that focus on china. I think the other thing that is eresting, it could cooperate more in the future or even come together in the future in some way, not just in china but more broadly around the world. Brands do whaty they do in china elsewhere, whether through partnerships, or is there some kind of consolidation we can be looking at . Has happened during the pandemic is the gap between the big rams like louis vuitton, extended, thats has become much more significant all around the world. That has pulled ahead of some of the other brands. We are expecting when the Market Centers there could be a bit of a shakeup in some of those brands that have not prospered so well looking for deals or homes among those luxury conglomerates that have prospered. Guy what is the lockdown in europe in terms of the effect having on this sector . Is it going to mean there is a shortage of supply in terms of being able to manufacture . We are now potentially looking at not just one month but potentially longer towards christmas. How important will this be . Andrea this is going to be very important for all retailers, not just luxuries. This is a key period for gifting. Holidays are a big time. Elis interesting because rupert was saying this morning there are occasions including single day that are big occasions for luxury spending. Notwithstanding that, this would be very damaging to all retailers, including luxury ones. Alix how to luxury retailers manage their inventory versus more traditional retailers and was is that mean for them when theyre trying to sell their stuff what does that mean for them when they are trying to sell their stuff . Andrea one thing we have seen is pushing the seasons out more so they coincide with the actual seasons. In the past weve had a crazy situation where in january swimwear comes in and at the height of summer you get coats. They have had to hold onto their stock longer. There is been more of a harmonization of those seasons. We could see that continue into the future. Stock,dy has hibernated any stock that is more basic and not focused on fashion trends has been put away for the next year. That is the case across the board. Guy andrea, thank you for much indeed. E opinions andrea fel Bloomberg Opinions andrea felstedd. We are through the auction process. What a week it has been. The cac 40 up 8 . He dax up 8 the ftse 100 up 6 . Today we have paused a little bit, but nevertheless what a performance for european stocks. Significantly outperforming their u. S. Peers. We will carry on the coverage at the top of the hour. Clearly a focus on what is happening stateside. We will continue to break down what we are learning on Bloomberg Radio on dab digital radio. Jon ferro and i will be walking you through with the cable show. This is bloomberg. Thisy this it ritika is the european close. Coming up, jeffrey solomon at 2 00 new york, 7 00 in london. This is bloomberg. Lets check it on the bloomberg first word news. Joe biden is on the verge of winning the white house. He has overtaken President Trump in pennsylvania and has a slight lead in georgia. Pennsylvania has 20 electoral votes. , heiden were to win there would have more than the 270 Electoral College votes needed to be elected. Meanwhile, President Trump shows no sign of dropping his legal challenges. Last night he said the election was being stolen but has offered no evidence of voter fraud. The u. S. Labor market got stronger in october. Employers added 638,000 jobs, beating estimates. The Unemployment Rate fell 1 to 6. 9 . That was double the prior month decline. The number of longterm jobless americans surged and now makes up one third of those out of work. Russia is seeing its worst coronavirus numbers since the pandemic began. The country reported more than 20,000 new infections today. Nohorities insist there is need to impose a second lockdown or shut down of businesses nationwide. They claim the Health Care System is capable of handling a surge of infections, but Russian Media have reported and overwhelmed hospitals, drug shortages, and inundated medical workers. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Am ritika gupta. This is bloomberg. Guy thank you very much. Lets get a business take on the election. Joining us is stephens president and ceo. Joe, we will talk about the company in more details. Have to get your take the Financial Markets are pricing in divided government in the United States. There was even a few days ago and expectation we would see a green revolution. What does the new lay of the land look like for you and what you think it means . To tell the results and we may take some time given the narrow results. Is the like to hear United States would come back to the Paris Agreement if Vice President joe biden would win. On the other hand, we should not overestimate the impact of what is currently happening. They are customers. Last year they gave us 26 trillion business and we continue to be close to them with 50,000 people working for us in the u. S. We should wait and see and not get overly excited and anxious about what the government will look like. We have had are good moments and the current government and im sure we will have good moments with a potentially new government. I think we should wait and see over the short term and then look what that could potentially mean for our company in the United States. Alix we have the volkswagen ceo on bloomberg yesterday and he told us a joe biden presidency or democratic policies and the u. S. Are more aligned with their strategy. Do you feel the same way . Joe as i said, we have had good moments with the current government and im sure with the other one. At the end of the day we are selling to customers in sectors and not governments. That is why i agree it is important to see what the sectors do and how those sectors can benefit from government policies. Agree, or bothll of us agree the world needs help in terms of co2 reduction. Be freer topic would and open trade on a multilateral environment certainly has helped to bring millions of people out of poverty. Continue with all parties on the table, United States, china, and europe, that would be helpful to business. The other thing is that on the verge for the fourth industrial revolution, or the internet of things, we need to be able to connect more things, and connecting all things means global trade, data security, but also the free flow of data. There a lot of tasks we have for companies and governments to prepare the world for the next decade, if not the next century. That means the internet of things and a sustainable world. We are in for that. I am sure any government in the United States, we can work well together as weve done in the past. Guy final question from me on the election. Do you think the United States havebe less green if we not had the blue wave . Again there is the government and certain policies but there is also International Companies in the United States are in sectors which show the world how things are working. No matter which companies ive been talking to about customers and investors, they all say sustainability is economically feasible. Sustainability is the play of the future. Look at the oil and gas sector. Ive been talking to companies. They all say we have to go down with our emissions. Help us how we can make the oil greener with less omission. Create fuels . They are all after sustainability in an economically feasible and responsible way. That is important big sometimes activists tend to push us into very quick changes. But the fact of the matter is the world is the world we have. Shareholder investors need to be responsible. Responsibility as a Global Company leader that we are responsible to act for todays world, for a Better Future world and keeping people out of poverty. That is a responsibility. Have,he government we this would be the trend. The world is going green. Is how responsibly and how quickly this will be. We are fully buying into that. Alix lets talk about siemens business a little bit deeper. You agreed to wait sale of slender. I wonder as you went through this transformation, at what point do you want to be revisiting things like acquisition for software or automation . Joe i think acquisitions are not on the table. To seteen looking hard up siemens for the next decade. We have three very strong companies. Aeg which isemens an industrial core of automation and software, including mobility , which leads to smart infrastructure component. That has been shaking the product spectrum for the future, with this buildup of energy that was one of the most relative , late Industrial Company with slender, weve been making major progress on a clearcut sale, so the new companies, all three of them, they need to look a bigactively save acquisition, a 16 billion acquisition. Hnology comes together this will change the world of health care treatment, cancer treatment. They are busy doing that while they keep the shareholder value out of that transaction. Energy is very busy. Renewable energy will be a quite quite a restructuring phase and thenthe future, industrial has everything it takes to speed up growth and become a Technology Growth company in the industrial space. Alix thanks so much. Great to talk with you. You in february once you retire and do some other stuff. Kaeser,er, see joe siemens president and ceo. You are looking in a warehouse in Allegheny County in pennsylvania. Joe biden has taken a lead in the state. Pennsylvania has 20 electoral votes. This means if joe biden wins pennsylvania, he will have more than 270 Electoral College votes needed to claim the white house. This is bloomberg. Alix live from new york, im alix steel with guy johnson in london. This is the european close on bloomberg markets. Votesden at 254 electoral , trump 214. Joining us is david westin. What do we know, what are we looking for . David no credible source has projected the overall winner of the election and there are still a of important states. Pennsylvania is the one we are focused on. As youve been reporting it has swung in the boathouse in favor of joke it has swung in the vote count in favor of joe biden. The Associated Press came out with a piece saying we will not call pennsylvania because there were some problems with duplicate votes in pittsburgh, there a lot of votes left outstanding, over 100,000, and our overseas military people we not heard from. They said be patient. We thought pennsylvania might get called soon, does not look like it right now. Guy at some point somebody is going to call this election. If they call it for the former Vice President joe biden, do you think the president will be prepared to concede . Do we see any evidence of an exit plan. David no evidence whatsoever. Far be it from me to try to get inside of donald j. Trumps head , but what i would speculate is he will wait until the very last decision by the last court for the last recount. He will not give up easy. At the same time that we are starting to get Senior Republicans sending noises about lets pay attention, and if we have to get out, we have to get out. Roy blunt from missouri earlier today said one of the jobs of a leader is to think about when to leave. Alix that was striking, i thought. I am starting to hear things biden, it will be about Mitch Mcconnell and joe biden. Give me some perspective. David one thing we know for sure in this election is the blue wave did not happen. The country got together, they might disagree about a lot of things, but they said we want to government in the center. The question is how can you do that. As you suggest, joe biden has served with Mitch Mcconnell. Im not saying their friends, but they know one another. The question for a president bided, the question will be can he govern from the middle, can he reach across the aisle and get something done . His own caucus will be a little bit chastised because a lot of the more progressive members have been rejected, at least in their policies. Guy lets talk about the senate. Is it possible the senate will be seated before we know who will be in that leadership position . Will it be macconnell . David not just possible, it is likely. It looks like we are headed to two runoff elections in georgia. That happens in early january. We do not get an answer until late january. It is possible when the new senate convenes on the second day of the new year we will have open seats and will not know who is the majority. Alix we appreciate it. We know it is been a long week for you and debbie a long weekend. Thank you very much. That wraps it up for me and guy on this friday. What a week. It is almost over. Coming up, ian bremmer will be joining david westin on balance of power on Bloomberg Television and radio. It has been an interesting week in the markets. The s p pretty much flat. The nasdaq a touch lighter, but is the story of a reversal. Tech outperforming. Cyclicals taking a hit as a blue wave and a contested election got priced out of the market. The big action is what we saw in bond yields. Points,ow in 82 basis the selling continues, up five or six basis points on the 10 year pureed oils continues to get hit. That is a virus demand story. The 10 year. Oils continues to get hit. That is a virus demand story. You see that reflected in the oil price. This is bloomberg. Are you frustrated with your weight and health . 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David from bloombergs World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. We are now in day three of the 2020 election as votes continue to be counted in a handful of states. No clear projection of the overall race made by the Associated Press or other major networks. With joe biden gaining in georgia and pennsylvania, even as doubts remain about arizona and nevada. Joining us is rick davis, he is a partner at stone port capital and a manager of john mccains president ial campaign and also our political contributor. As we take a look at this, it emphasizes the need, we have to be very careful. The Associated Press is out with a report about why theyre not making a projection in pennsylvania even though it looks good for Vice President i did. Their issues with ballots in pittsburgh Vice President biden. There are with ballots in pittsburgh. Rick rick we are down to the five yard line, we see the goal posts in front of