Controlled congress. Mitch mcconnell you Mitch Mcconnell of kentucky won reelection last night. Aestions because we have twoparty system, does not mean we have to be in protection perpetual conflict. I think i have shown that to be e in critical Time Critical times in the past. I hope the president gives me a chance to show that again. Democrats ran away from president obama. He is returning the favor. The white house saying itself from the losers, saying the quality of candidates determines the outcome. The president is holding a press conference and wants to meet with leaders on friday. Paul ryan said his party is willing to work with the white house up to a point. We should put bills on his desk we think he can sign. We will work on bills that will move our principles in the right direction. Yes, if there are certain issues we are so up sit on him a we should define ourselves in opposition by passing bills republicans picked up more seats as well. Easily one in illinois. In democrat, arkansas, maryland, and massachusetts very scott walker was reelected in wisconsin. The folks in washington like that is down approach old and artificial and outdated and says the government knows best, we believe you should build the economy from the ground up. That is new and fresh and organic and that is what were going to do. Of victory speeches. All of this in perspective. I want to ring in phil mattingly. You have been up all night as well watching election results. The republicans are planning down to push for what they want on the agenda. Corporate tax reform, immigration. Now that they have control of chambers of commerce price there are areas of agreement that Senate Republicans especially have with the white house. You mentioned tax reform and things like spending on infrastructure, potentially trade. Trade might be the Biggest Issue to move forward. Now the reality of it. It is a difficult process to see anything moving through. The Biggest Issue republicans have is within their own party. They will not agree and come to the table and negotiate with the white house. They want to repeal votes and push forward on major ideological issues. Big issues are still left to handle in their own party. You are at the white house all night last night. What has been the reaction from the administration and the president . The somber. The president was making calls last night, including two a senator elect, republican from arkansas. He tried to call Mitch Mcconnell and left him a message to congratulate him. He will speak today at 3 00 from the white house. He will knowledge what happened. He is very clear guide about what last nights results meant. Democrats lost big. He will try to push forward on areas where there might be agreement, but you also say he wants to maintain the power to move forward on executive action. That will not make republicans happy and will set up a difficult time going forward. Lawmakers face a country dissatisfied with the state of the u. S. Economy. The former republican governor put it this way. Lost 3 million fulltime jobs in the Obama Administration and replaced it with remotely and parttime jobs. No wonder income is agnes her work and middleclass able. Has beennistration great for wall street, but for main street, you cannot tell the recession is over. Someone from wall street or midtown manhattan at least a leader on wall street. Bob has been outspoken on issues he believes look at americas economy going again, including Corporate Tax reforms and immigration policies. Great to see you again. It was not surprising. I think the message is clear, the American Population wants to see something happen in washington and they have delivered that message. I hope, and i think with Speaker Boehner said is the right tone, he said this is not the time to celebrate. It is time to get to work and have solutions for the American People. One of the easiest things people can do to move the con the economy is immigration reform. That is number one. No taxes involved. Cbo did a study. A threepoint impact on gdp. No other governmental policy can add that dramatic impact without a direct costs associated with it. Given the victories you have seen with the gop, and they themselves said immigration would be important to get through, do you believe they had enough of a mandate yesterday to be able to push Something Like that through in the next two years . Mandate is to work with both sides of the aisle to come up with a proper compromise and get it to the system. That is the message of the system. I do not think either party got a mandate. Nobody is saying, we love either the republicans or the democrats. They hate the gridlock and need to solve that. Immigration. How do we get through the Border Security issue . Has beenot think that the entire lock up there, but i think there is a path. I do not think anybody really disagrees with that. Those other things negotiated and debated and settled on we move forward. I know you go to washington quite often and you lobbied on various issues including the jobs act. A great wayo . To go down, you get to do work while you travel there. When we go to washington, we have the advantage of representing in some material way 3000 listed companies. Great access to washington and we deliver the message. One of the technologybased companys key issues is that they cannot have enough qualified workers. They cannot find the the workers to hire. We need the Unemployment Rate to be lower but that is a general figure. Look at the details, there is a lot of the job market underserved i the people we need. In corporate test reform, i know you outlined in speeches that there needs to be Corporate Tax reform. That is something democrats and republicans agree on, but no one can figure out how to do it. A spirit ofto have come from eyes. Introduce amendments to bills, some way to create some dynamic for these organizations to work across the aisle. Test reform, everyone knows we basically have the highest Corporate Tax rate on the planet. It is not competitive and it is driving Economic Activity away from the united states. It is clear and present and real and everyone knows it is a problem and now we have to solve it. This election has to be both sides, and i tied back to a Speaker Boehner said, it is not a time to celebrate. It is a time to get to work. Lets hope with election results, the message is 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 and not vetoed by the president . I would say one, if you look of assets,ive amount u. S. Corporations have overseas, that they do not bring back because they do not want to pay what they perceive to be double taxation, if we could have a quick move, that money could come back into the country, if that is tied to some infrastructure they that sounds dead in the water. I do not think so. Lets be optimistic. Tying into an Infrastructure Bank is a good plan and there are ways to get there. Proceeds aree the accounted for. And help create jobs in the country. Thing you is another have spoken out about. You have not been happy on what the government has done to pull back on those deals. The ceo of chemical or came on our program yesterday and i want to play what he said. I think the administration can accomplish what they hoped to accomplish. The fact that you have not heard any outcry from republicans or democrats in the senate would suggest there is a pretty broad consensus that things have gone too far. You cried out about it. I did not hear it. Technical difficulties. Saying you have not heard an outcry from republicans. My concern is over the medium and longterm. When a company gets formed and we have an opportunity to meet a lot of these companies at the time of inception, they can make start the where to company. They can do it in canada and the u. S. And europe and anywhere. That former corporate charter does not in any way shape or form impact how they run their operations. You can incorporate in canada, still building your talent out in silicon valley. Successfully. When you put into too restrictive of rules regarding inversion, you create the Hotel California effect, where they checkin but they cannot check out. Magic checkin, you see these companies. You cannot possibly say that inversions are not able to do these inversions, deterrent for business and for growth. With inversions is, lets solve the tax problem. Inversions because the tax rate is not competitive and there is incentive to go to a lower tax jurisdiction. We operate in the markets and sweden is one of our main markets. Not the low tax environment. Not a low tax culture. They believe in government in the swedish environment where the Corporate Tax rate is 22 . My personal feeling is if you get our tax rate within five points of what would the the global average, people would recognize the benefits of being in the u. S. Outweigh the five point differential. We do not have to max tax rates of other people because we have so many different tax rates come into play. But you have got to be in striking distance. A huge tax disparity because those people do not want to do it. But corporations do not like that flexibility over time. You talk to ceos is all the time. People understand the value of option now the. Right there in right. ,e mentioned at the very top haley was saying wall street might have felt the gains over the last several years, but mainstream has not felt that. An interesting letter was disclosed by paul and elliott management. It. We got a copy of i thought it was interesting. He has taken out argentina and might have taken out the u. S. And he thinks Economic Growth is fake and he thinks no one can predict how long the government can get away with fake growth, fake money, fake jobs, fake financial stability, fake Inflation Numbers, and fake income growth. Your firsttart with comment with respect to the fact you have seen a lot of economic numbers improved, and yet the perception of the American People is not much better, that they are not better off. There is clearly a gap between reality and perception. Do not lie. People are in a better situation than they were eight years ago during the credit basis. Part of the dissatisfaction is tied to a general feeling of inertia in washington, a gridlock, that things are not getting done. Certainly, a real issue with respect to the recovery we have seen in the great credit crisis. Is alsoecovered but disproportionately awarding people higher on the end of the economic spectrum. Right. Paul singer causes points. Singers points. I was trying to ignore that one. I think the government is using the numbers up. Jack welch a he a few years ago and the jobs numbers . A long discussion on what economiccy has done to progress, not really structural, and will does it for disappear when it goes away, but i disagree and i had the advantage of seeing a great entrepreneur activity, great new companies starting, great activity in the marketplace, and that is real and it will harkin for better Economic Times going forward. I know youre getting back to business as usual today. Thank you for being here this morning. And we have breaking news right now. Employment numbers out. 230,000 jobs, a little faster than at better than estimated, were created. Scarlett has more. Jobse numbers are 230,000 according to this change number, better than what economists have been looking for. 10,000 better. The consensus we got in our survey was for 220,000. The prior month september rate also goes up as well. 200. 5 thousand for the month of september. , the adprelationship number has gone between undershooting an overshooting in the last month. It is hard to make a claim there will be a connection there. It is something to monitor. All right. Thank you so much. 200 30,000 private sector jobs created. Coming up, more news. And, chris is dreamy as well. Plus, marijuana. Minimum wage. A softer attacks. Those are some of the issues that won big at the ballot yesterday. We will tell you more in a moment. Moving and shaking this morning, voters who cast ballots on marijuana to minimum wage to abortion. Note medical marijuana use, but recreational use. A similar measure, an increase in the minimum wage so are, south dakota home and rest up. Tennessee voters gave their legislation more power to legislate and restrict abortion in colorado and colorado and north dakota rejected antiabortion. Much more on the elections ahead and what it tells us about 2000 esteemed. Group oftance of one voters in particular. We will talk to two former members of congress, the outspoken tom davis and martin. Plus, figure october was tough . You had it rough . You should see what happens at pimco in the first full month without bill gross. You are watching in the loop live on Bloomberg Television. Good morning. I betty liu. Here is a look at our top company news. Client polled 27 point 5 billion in funds in the first full month after the departure of bill gross. Million in september appeared a lot of money going out the door introductions. Out the door. A second Straight Year of for toyota. It also raises projections for fullyear operating profit and revenue. And crude and trading at a threeyear low after saudi arabia cut prices of crude exported to the u. S. The price were threatened the energy boom and could also lead to low gas prices, which could be good news for consumers and even the Holiday Shopping season and also as they are traveling across country. 26 minutes past the hour, which means Bloomberg Television is on the market third of the site markets are pretty pleased and investors are pleased where republicans regained in the senate more than 60 in order to regain control of both chambers of congress. Got in the economy, we just payroll numbers. Josh and 30,000 jobs created in october. That was better than estimated. We are on the markets again in 30 minutes. We continue the analysis of yesterdays election, whichever have got crushed him a including in arkansas, were senator mark pryor only got 39 of the votes. The biggest and most serious problem we are facing in our nation today is the dysfunction of our political system. Words carrymber with me now is tom davis, the former republican townsmen of virginia. Also, his democratic counterpart and friend. They wrote the upcoming book the partisan divide. Let me start with you, the democrat, because several of the press got crushed in large part because of their affiliation with obama. Was this or was is not a referendum on obama is resident he and his policies . Offt is feared in the election, older and whiter. Overwhelmingly democratic seats. Republicans won and they ran a good, smart campaign. The real question will be whether there can see bipartisanship. That will be tax reform and immigration reform, both very tough issues. Tom and i have a book coming out in january and it has yet to be resolved whether you can have bipartisanship in congress. I hope you have solutions in your book. We do. Available january 12. Inoculate. I want to bring you in on this. Some of the four living area is full, 8 of the vote 80 of the voters said they are dissatisfied with the white house and 79 of the same thing about Republican Leadership as well in congress. Because ofy just against it a good job in the midterms that they have a good mandate here. That is right. 2016 is very much up in the air. Into 2000ything here 16 is premature. But you have to remember traditionally midterm elections are all about the president. President ial elections about the are about the future. Republicans have to put points on the board and come up with a vision forreate the future going into 2016 or i think there are negatives will hurt them in the president ial race. What will they put up that will get them through . Lets start with the budget. It used to be pretty routine. A tough vote in the house and the senate. They ought to try to take a look at what can get done with immigration. Fast form is heavy. Tax reform is heavy. They do not actually have to enact bills. The president can veto them. But they have to create a narrative or the American Public that they put exotic president s of nd are capable something that eluded them before. Test will be immigration reform. If the republicans have a chance of winning the president ial election im a they have got to get well among hispanic voters. Theyre not viewed very well among his back because of the obstructionism on immigration reform. Partiallyn at least solve it, that helps them going into the president ial election. They cannot, but is also a problem. Collecting these midterms show basicallyats that they cannot win 2016 just by playing up to africanamericans, hispanics, and women . Click sign agree with that. That is the obama coalition. Obama was able to increase turnout among blacks and young people among single white women. Up with antart advantage, but this thing is wide open. Get smart and can figure out how to change the dynamics on, and this is very much an open race in 2016, the democrats start with an advantage simply on history. Let me also say the shocker of the night to me, virginia is very close and is still being counted, but the maryland governors race, the size of the margin between africanamerican democrat come if there is any proof the coalition does not work in a blue state, that is proof right there. This was a nonpresident ial year. Whoever the democratic nominee is, man or a woman, lets be genderneutral and race mutual, has to motivate democratic voters the way obama does and then that person has to do a little better among white voters than the Democratic Party did in off year election. Democrats only got 39 of the white vote. That is not enough. In maryland, where you have a , ity after american vote just africanamerican vote, it just was not enough. Is it obama centric or Democratic Center . That will play out but it is much very much in the air. Democrats have to figure out in the president ial race how to appeal an economic issues. Keep going, but i have got to jump in, because it was something you had raised. I wonder if the president and democrats getting involved in such issues like ferguson and the Trayvon Martin case and the president publicly commenting come in the end if that ended up hurting the democrats. It did. L say what you saw in some of these states were at that played on black radio that all of a sudden plated out to the population at large, and it had a negative backfire effect. Obama is a unique clinical figure. The coalition he put together with his turnout models broke all the rules. It has not been there. In 2010, it was not there then. Republicans understand that a little bit. Can martin says, if they tackle immigration, to some extent, that would make it a little harder for the democrats years from now. Community,emocratic thinking a gender gap is the answer to all of our problems. If you look into the figures, democrats lose weight women. Withcarry the female vote majorities in the black immunity. The vote is heavily female. If you take all races and add them together, democrats win the female vote. If you just take weight women, democrats lose weight women. Let does that mean for Hillary Clinton . Hillary clinton maybe the exception. She may be the one that could improve the democrats showing him on among women. A wider gender gap. Clearly this point, she is the democratscandidate have. Hillary will have to work very hard i think she has a chance of winning the nomination. Since world war ii, there has only been a three term president before one party once. That was reagan, reagan, bush. Ever since world war ii in all elections, the presidency has flipped after eight years for that one. Except for Hillary Clinton generationally may not be the right choice for young voters. I think she will be a strong candidate there it is not a foregone conclusion. Thank you so much. Thank you so much for both of you for joining me again. Coming up, election coverage continues with a look at how businesses are reacting to the gop victory. Tesla back to earnings. Reporting their results later today. Coming off its record sales in september and what can we expect to hear from elon musks company . We will see those results. The gop has won control of the senate. Particularly hopeful about a republican congress. 60 of them feel more Economic Uncertainty under president obama. What about big is this . How did they feel about this . I want to bring in chris, the president ceo of hotels. You are doing business as usual because you have an announcement you have unveiled this morning. Before we get to your latest news, i want to ask you just as the ceo operating a major global business, how do you feel about last nights results . A from our standpoint as global business, what we want to see is a focus on the issues you are talking about. The economy grow, immigration, all the important issues that affect our business. The reality is right now, the u. S. Market is actually very strong relative to pretty much everywhere else in the world. From the standpoint of our business, we saw stronger u. S. Thanowth in the anywhere else. For the sixth straight quarter we saw a record occupancy levels. Business travel is very good and there is confidence in the economy. Lets hope this gives us more. I do not want to take it too far, but i could possibly say hurtock certainly has not your business. If we saw another two years of gridlock, that would not matter to you . I am not so sure about that. When the Government Shutdown when there was uncertainty about what would happen to the u. S. Budget, we did see a drop in demand. The other thing is the rest of the world is watching the u. S. For the u. S. To look stronger than the rest of the world, we need a political system that works there it it does affect us. It could be much better. The great thing is americans are hard workers. We have great capital markets. We continue to find entrepreneurs, bringing people in from the rest of the world. The u. S. Is a great place to do business. The top of your list will be what that you would like to see out of washington . From our own standpoint, tax reform, fixing entitlements, is probably the biggest opportunity we have. Ok. Business as usual, i know you were unveiling a new mobile system where you are allowing customers in some of your hotels to use their smart phones in order to enter their rooms, not only checkin and checkout, but on lock their doors. Keyless entry . That is right. The whole idea is not business as usual in that sense here for the first time in the history of the industry, you can book your room, which you could do before. You will now get a confirmation with your room number and use your mobile device to go straight to your door and unlock it and get into your room. That frees the associates in our hotels to take better care of their guests and sets us up to have a dialogue because we all know our mobile devices, our remote controls for our lives, we can order things, you can order things from us, we can deliver better services. A winwin. The hotel sells more and our associates are happier because theyre working with guests, and we will have better experiences with the hotel. It is frustrating when mikey cries getty magnetized because i put them next to my credit card. But this sounds very convenient, but what about the security risks . What if someone hacks my phone in my system . First of all, because i did Keyless Entry here in downtown new york, i was going to my pockets and thinking about where to put my room key so would not be next memo to vice, and then i realize my mobile device was my key. In terms of security, what technical people will tell you is the keys on your mobile devices are double encrypted and very hard for people to come into. If you think about it logistically, when you have got the card key and someone wrote the room number on that key and you left it lying around, you are much more vulnerable than when you lost your cell phone. You check your mobile device every six or seven minutes. You will know right away. You probably have a password on your smart phone. To make sureer way someone cannot use your mobile devices as a key. Beingnk this will end up a safer way for people to have an experience on property and a better way for us to get to know you. I will tell you for sure this phone is practically glued to my hand at all times. If it ever were lost, i would know in 30 seconds. I know a lot of hotel chains are doing this, going mobile. Theyre putting a lot of their Services Online and on smart phones. Is a lot of this to do with attracting more of my meals . Are you getting feedback from younger customers who say that this is what they want . First. Is another i know other people are talking about this. As of today, we are doing it here and by next year in the first quarter, we will have. Eyless entry around the world what is interesting is we have been testing this for a while. This is not something we thought of yesterday. We worked with people who are 25 and 65 years old. The reality is as soon as you get used to this and see how simple it is, you do not want to go back. I know you are based here in the u. S. But many of your properties are internationally focused, overseas. Are you going to launch this feature, are you going to launch it in your hotels overseas and how will that play out . We are rolling out now to test and make sure we can do this right in the middle east and asia and in latin america. But the idea with the 150 hotels is they are part of our global footprint and they are everywhere around the world. This is absolutely a global will seeor us that we early next year based on the expansion we are already doing starting today. Meals,ecome you about my many of them are choosing alternatives to staying in hotels. I am talking about airbnb. One of your colleagues in the Hotel Industry of choice hotels, we had him on a few weeks ago and he had some pretty nice things to say about airbnb. I wanted you to be a part of that conversation first. We think it is a very interesting idea. They have very smart people there. The ceo is an Excellent Hotel person. Ofthey will have to do some the things we all have to do. Pay taxes, worry about life safety. A lot of what theyre doing, we do not have much of an interest in. Our customers are not interested in sharing a room or an apartment with somebody else. They want to know it will be a clean, comfortable, safe state. Would you agree . I know our guests not only one account, but a great room to go with it. The reality is, whether it is thingsor uber, all the happening today, they are bringing mobile technology to the travel experience, are just creating more travel. If you look at the expansion in demand for hotels that is coming with a more mobile society, it is a huge Growth Engine for us here at is airbnb a force in the industry . Absolutely. An extraordinary amount of confidence in the growth of our business and the nine brands across . Absolutely as well. You have not seen any market share taken from you by airbnb. No. In fact, i mentioned this. We are at 78 occupancy in the last quarter, the highest we have ever been. We have seen growth in demand and our revenue was up 7. 5 in the last quarter. So we are seeing strong growth in overall travel demand. Just 15 years ago, they were single hotels. In about 24 months, those two grass together will be 100 properties, the equivalent of an entire four seasons and growth in just 15 years. Thank you. The president and ceo of starwood hotels. One of his hotels in manhattan at the w hotel. Coverage continues. A look at some of the lighter moments from yesterdays voting, including this nature of a big arms down to Mitch Mcconnell as he voted at the polls. He won, souter not feel sorry for him. So do not feel sorry for him. Here is a look at the top tech stories in our digital radar. Signing his first ever major labor deal, it is different than most licensing agreements. See ads on some of its songs and share the revenue with sound flat sound cloud. We are essentially having a range of Advertising Products platform, andhe then the first half of next year, we will also be you can actually pay and get additional futures. A new boss may need a new strategy for Cable Networks tbs and at t. Evin riley taking over most successful programs have been acquired shows and broadcast networks reruns. Governments around the world want to know more about facebook users. The social Network Company says the government request for user thermation were up 24 for First Six Months of the year. Facebook has gone to court to try to invalidate the requests to by the government. With our election coverage. We bring you not only the serious, but some of the lighter moments. Voters showed more than just their american spirit. Take a look at this one. The photo has all of america buzzing. Up at thecking tweet. He had to go there. We will be back. It is 56 minutes past the hour. Bloomberg television is on the markets on this a day. Equity futures trend a just a bit higher. Investors pretty pleased with what happened last night. 80 p, those numbers coming in better than estimated. 230,000 jobs created last month. On the markets again in 30 minutes. And much more ahead, we are joined with the reaction to republicans sleeping victory, as well as a look at todaytop corporate stories as the county down to the opening bell, including his thoughts on tesla ahead of todays Earnings Report out after the close. We will be back. Welcome back to in the loop. Stocks are getting a past election postelection bounce. They will be hire at the opening bell. Turning now to the election, republicans made it a campaign with one issue. President obama. They capitalized on voter discontent by swamping the democrats. Republicans added to their majority in the house. Tosident obama will have deal with republicancontrolled congress. Likely tonate leaders be that guy, Mitch Mcconnell of kentucky. He easily won reelection last night. A just because we have twoparty system does not mean we have to be in perpetual conflict. I think i have shown that to be true. Me ae the president gives chance to show it again. Will getew hours, we president obamas reaction. He is holding a News Conference at 2 50 p. M. Eastern time. Meanwhile, the president wants to meet with congressional leaders on friday. Paul ryan says his party is willing to work with the white house but is willing to draw the line as well. Workingnk we should be veth him on bills that mo are principles in the right direction. It if there are issues we are so opposite on, we should define ourselves with our actions by passing bills he may veto. Governorsto the race, republicans pick up more seats as well. Arkansas, maryland and massachusetts. In florida, rick scott was elected to a second term. The most expensive race of the midterm. Another winner, wisconsin Governor Scott walker. The folks in washington like this top down approach that is old and artificial and outdated. We believe you should build the economy from the ground up. That is new and fresh and organic and that is what we will do. We are under 30 minutes away. Rom the start of trades the top 10 headlines thing our radar before the bell. Matt miller is joining me. Our guest host for this halfhour is robert nardelli. Heads a loan consulting firm, accelerate. What we thought we would do is count down 10 headlights. Lets count down those that had to do with what we saw at the bell. At number 10, focusing on one measure. Minimum wage. We had south dakota come arkansas, nebraska approving raising the minimum wage. Also raising minimum wage in illinois. Its a great day for america. The shareholders of this country voted with the mandate. It is not a partisan statement. Im excited about the opportunities going forward. On minimum wage, lets see how that plays out. Was running a company, if i had to raise the minimum wage to be competitive, i would do that. I did not need a mandate. It does not make a of economic sense to have the government setting a price floor for any good. It flies in the face of economics. On the other hand, i cant imagine paying anyone less than 10 an hour for almost any kind of work. It doesnt seem right. Leaders need to take the position themselves in a free country. You dont need the government telling you how to run your business. The government feels like they have to step in because companies are not doing it themselves. Ben is for coke and pepsi. Bad news for coke and pepsi. Berkeley passing a law taxing sugary drinks one cents an ounce. Maybe this will work . Have someone very close to us here who tried to do the same thing in new york. This is another case of on the one hand, nobody wants to be told what to do or have laws set to tell them whether they can consume something or not. On the other hand, there are so many overweight people. This is another case of where if for private companies and not going to do something about this, the government feels like they have to step in. There is no organization more responsible and more focused on trying to reduce some of the issues that are facing our youth today. Only recently have they spoken out. When ist 10 years ago was on the coke board, they were looking at soft drinks that were lower in calories. If you look at their proliferation of brands and products, they are taking this very seriously. We do not need another tax in this country. Why am i not surprised by that . I dont think anybody wants to see more taxes. Approvingvoters legalizing why would i like this . Selling marijuana for recreational use. It legaln d. C. Making to possess. I cannot believe its not legal to grow a plant. If you want to come in your own home. What country is this . The decadelong drug war it did not work. It has been a failure. Im totally against this. Against approval of this. Vehicle for the youth of america they are already using pot. Newsflash. I know. It does not mean we have to make it legal. I dont understand how you can legislate Something Like that. If i want to grow a plant in my own home and use it anyway i will like what else are you going to grow . Does that mean you could do cocaine or other drugs . You can Smoke Cigarettes and die from those and they are addictive. A different story for marijuana. Aid made as and rite plan to follow cvs and quit selling cigarettes. They do not have the Pharmacy Benefit Management card that cvs does. I agree with cvs they took a bold and brave move. Its a big part of the revenue. Applaud them for doing what they do. 50 of the revenue is the pharmacy management benefit. Cvsng said that, if i saw next way walgreens, i would go to cvs. My choices whichever one is there. Its all part of branding a part of creating the right halo effect on that business. I agree. I go to cvs. Had tould choose it if i make a choice. Taking aife, shares beating in the last few days after changes at the company hurt sales last quarter. The move was in response to activism investor bill ackman. He wanted them to make these changes. Their sales have dropped and shares have plunged. Yes. On this one, i tend to side with bill on the foundation and merits of this complete. I think there was some legitimacy in some of his issues with this company. Bill ackman is clearly right about most of the things he has said here. The question is, how much does it really matter . Is herbalife a scam . I dont know. Is it possible that these shakes are really healthy and everyone is making money selling them . Unlikely. You think other activist investors there is activist and active investors. We have to be careful we dont go too far either way. There are some legitimacy and whats being said. Holding these corporations hostage is not the right thing to do. Up, our countdown to the opening bell continues. Cars, tesla had of their earnings. We are staying on electric coverage renew the lighter moments we have collected. Mark udall and Michael Bennet taking things literally. Stump. N a tree stay with us. We continue to count down to the opening bell. We are halfway through. Its time for a deep dive into number five. Talkf our paper topics to about, tesla. Reporting earnings after the belt this afternoon. Investors want a fresh update on the 2015 demand and the launch of its new model x car. And matt miller, i think a lot of questions are around what are the Sales Numbers right now. There was some confusion and uments between elon musk he says tesla has hit record sales. Hes brilliant in what he has done and he deserves a ton of credit for bringing out this electric car. Many have tried and he has succeeded. We are starting to see some growing pains as we see in any startup type of company. How so . Orders were getting soft. You can read his announcement two different ways. One with a price reduction, he does not want to call it a discount. Hes saying its a restructuring of the leasing agreement. You are going to spend less money to buy a tesla model s now. They are doing that for a reason. Not just for the benefit of the customer. They want to get rid of these ars when they have the new models coming up. We see this at ford. They had slowing f1 50 sales. Out e iphone comes its normal. I want to display the tweet elon musk sent out. It sent the stock up over 8 . September was a record high worldwide. Truth to the idea from others who say if he is going to miss any targets its because hes not able to make as much . The demand is there. Hes having a hard time filling that demand. Retailer. He ultimate when you think about the buyback program, that is on his account not teslas account. Hes rolling out these new and exciting opportunities and he encourages people to reach deep into their pocket for these aspirational cars. Is 65 gain is one thing for tesla when you are going from 15,000 to 35,000. S as if have you ever been attempted to buy a model s . No. Interesting. Have you driven one . I have driven one and i love it. I am not there with the electric car shift. Up, oil still in a slump. We have not seen the west texas intermediate the slow in three years. Welcome back to in the loop. The most important stories you need to know before the bell. Matt miller and bob nardelli. Lets continue our countdown. Number four is the bgi crude trading at a threeyear low. Falling well below 80 a barrel yesterday. I know this is an issue you are all over. This all plays into so many other factors here. Independent y i am an Energy Independent getting our country into position to going independent. Is this drop in oil a game changer . Lower prices at the pump help the consumers. If prices go down, we have to put pressure on the administration. Lets start exporting. It will continue to grow independence in this country. Its a winner. Good news for chrysler factory workers. They will sell more cars. For wonder what this means whether this gop victory means keystone is back on the table. That . We not doing we have not done anything on it. Why wouldnt you do that . You will no longer be able to blame congress. The can will get kicked to the Examiner Branch for decision. Three, looking to inder ceo. E tender reports have come out about him. He sounds like a jerk with the diller led barry what did he call barry diller . He doesnt i have a lot of respect for barry. We were on the coke board together. I have an ongoing relationship with him. I hold him in high regard. Doesnt this underline the inherent risk you take when you support 25yearold ceos . And they end up acting likely fiveyearolds . Tinder is an absolute you can quickly have sex with somebody you dont know. You have to deal with these kind of people. Barry diller said he wants to bring in and eric schmidt like feel. Are you kidding me . October was a rough month for pimco. You guys have been watching this drama of old at pimco. Gross like bill absolutely. Its astonishing to see this thing unfold. The amount of withdrawals that have to can place in the last month after his official departure, i was shocked. Pimco sent is a chart last night of the withdrawals. The really slowed down into the end of october. I would say this drama has unfolded. We want to keep it alive as long as we can. It is pretty much done now. I do not think you will see another doubledigit billiondollar redemption month in november. They want to put it in context. Others have seen redemption as well. You see money flow into equity funds. The markets have gotten better. Bloomberg television on the markets. We have settled slightly higher. 6 . Q futures up our top story is next. Welcome back to in the loop. Matt miller and bob nardelli joining me. We have to get back to the big story of the morning. The elections and the aftermath. Our president obam president obama waking up to the reality that both houses will be run by republicans. I think a lot of leadership is saying that. They will blame a lot more people this morning. You think so . Yeah. This was a big victory for republicans. A big loss for the Obama Administration. You had somebody on harry reids staff on the record vocally criticizing the white house and how they failed to help anyone in the campaign. You will see firings. Who . The president should fire himself at this point . Two thirds of americans believe the country is on the wrong track. This was a mandate for action. People want action. They do not want the can kick down the road anymore. , tax reform,ne energy independence. Things that will stir gp. We also got mandates on minimum wage in several states and mandates on the soda tax. Those are very democratic issues. Im not sure if republicans actually got a mandate. There was a mandate for action. There will be some trade ups. There were prochoice mandates as well. Legalization mandates. A bunch of different mandates. There has not been a lot of action in washington. Thats what americans want to see. Look at the governor of ohio. He took a balanced approach and he becomes a big contender in 2016. Stocks start to trade. It will be at least bullish for now. I want to bring in gina martin adams. Give me your take on this. I know you were quite bearish before. We have wanted to approach the market with some degree of caution given the sensitivity to Interest Rate changes. As long as the fed continues to hold back on targeting Interest Rates, we are optimistic. With respect to the midterm elections, the market will trade higher on the prospect for potential Corporate Tax reform. Also, potential reform of health care legislation. Better prospect for defense spending. Is that a net positive for business . Possibly. All three branches have to work together. We will be set up for some big battles. Is moreess, business optimistic. They were talking about the price of oil. It surprised some people have dropped. R its quite frankly, in a grand scheme of things that we are now back near that low level. From elevated prices above 100, it feels very good for consumers. The consumer has more cash in their pocket. There is no guarantee they spend that cash elsewhere. Interest rates are so low. Hopefully they put it in the equity market. Perfect timing for the holiday season. It should help the broader economy. At least on the consumer side. In the longterm, you have to consider that oil prices and stocks are possibly correlated. Broad economic Earnings Base results could be damaged by the Oil Price Decline we have seen. Because it such a big part of the s p. Decline hasrfall resulted in 45 earnings revisions for the energy sector. I know health care is a big issue. Asope we do not get consumed the singular issue. We want to make some of the decisions you talk about taxes and so forth to get the economy more stimulated, creating jobs that can deal with the health care issue. That is a longterm structural issue that needs a lot of care and attention. I completely agree come in the short run, it does seem like Corporate Tax is the zero fix. Is the easier fix. Who knows what legislators will choose. That will be the easier firstround did you guys see this letter by pulsin paul singer . Here is a quote from this letter that he basically says thinks this entire Economic Growth is a fraud. Very austrian. The gueste he was host for zero hedge. A lot of people share this concern. They do not see big Inflation Numbers coming out of the fed. When they go to grocery stores, they are paying more for milk and bread and bacon. You cannot live without those three things, right . Over the long run, for 40 said thatsumers have their expectations are 5 for your. It has been somewhere between 22. 25 . Between whate consumers see and what is reported has always been there. This concept that fed intervention has created this false environment broadly is amplifying that concern right now. It has always been there. Our concerns are asset price specific instead of economically specific. The evidence has been that the economy has been growing at the 2. 5 growth pace since the recovery even with amplification of fed stimulus in the short run. The economy continues to turn along. Some prices have shown a make the average investor is being frustrated, not keeping up with even two point fo with 2. 5 . They are assuming more risk. The number one question i get in front of retail audiences is when our sabers going to henpping punished wi are savers going to stopping punished stop being punished . Thank you first thing with us. Thank you for staying with us. It has been a pleasure. Thank you so much. Obama gives his take on republicanss big victory. We bring you special coverage of the president s speech and his reaction. We are taking a break from all the election coverage to talk about payments. A free app from at t that combines a miss, offers and loyalty. The company has recently inked a deal with mcdonalds and subway. Erik schatzker caught up with the ceo in vegas. This is probably the most sensible and easy start. Apple pay, friend or foe . Been the surprisingly biggest tailwind we could ever hope for. Technology ine the context of payment. Where we struggled with has been Merchant Acceptance. Wave ofseen a huge emergence move over. The second part is consumer awareness. Category awareness is through the roof. We have a terrific product. The other 60 have android devices. How is top card different softcard different . We all use the same technology. Merchants. Yer on for deliverlows them to o offers and loyalty. It has been around for a couple of years. Aboutrstand your point awareness. Why hasnt the uptake been pastor . Whybeen faster . Hasnt the uptake been faster . Is re we are right now the overlap will be small. They are collapsing together very rapidly. That is why we are just at the beginning of this cycle. How do you get more consumers to choose your wallet . Simply have done putting the balance on the back consumers we see rs insistr use to get information about their card. Consumers will take a mobile first approach. They will pull out their phone and look at their card before actually pulling out their card. I met with one of your merchant partners. The company doing business with you. He described your product as clunky. You look at our User Experience, payments and offers, its relatively easy to use. One tap. Is it possible managing the quality over so many other phones . How many android phones are there . Does the experience change from phone to phone . We are on a different phones today. 80 different phones today. We make sure there is a consistent User Experience on each phone so consumers can open the app and login. They can go over there offers and loyalty points. We have put together an Engineering Team to make sure its a hard thing to do. Is there a future for softcard on ios . Announced in a blog post that we will have an ios solution in 2015. What percentage of pointofsale transactions will be done using phone payments . The odds of the consumer being able to make a transaction no matterted states what wallet you are using, somewhere between 510 is what we estimate. By next year, we believe the odds will between 5 . Will be 25 . It will all depend on how many devices come and how many banks enable. You will see a dramatic increase in the odds over the next 1224 months. What is the bigger challenge . Consumer or Merchant Acceptance . Both. You look at the nationwide average, your activation rate will match your odds. Salt lakeen in s city for two years. The odds are about 25 . We see 25 activation rates into lake city. Insult lake city. In salt lake city. Up, toyota shifts into overdrive. Another year of record profits. That is next. Time now for the global outlook. More violence in jerusalem or palestinian were a palestinian drove his vehicle into two groups of people. Police shot and killed a man. One Police Officer was killed in the attack. 13 people were hurt. Hes described as a member of the militant group hamas. The russian currency fell to an alltime low against the dollar before rebounding. Russias Central Bank Says it will abandon its predicable intervention policy so it can better defend the ruble. For the second year in a row, toyota protecting it will make a record profit. Yen, helped by a weaker boosting the value of lexus luxury models and suvs sold overseas. Not everyone is celebrating last nights midterm results. Theres one thing we can all cheer for. No more political ads. I would like to make announcement that i think will be welcome news to many of you. No more campaign commercials. [applause] in his victory speech, Mitch Mcconnell pledged to turn around the country, taking stocks pimm fox is here. Mitch mcconnell was an early winter yesterday. That was not necessarily expected. I was talking with some colleagues about how if you read the new york times, Washington Post or listen to television and magazines and so on, you might have been forgiven for thinking this is a big surprise. Nunn lost in georgia. Stunning is the results in iowa. Joni ernst was running for the senate seat. Lets listen to a bit of her victory speech. Higher taxes, more spending, and the slowest economic recovery since the great depression. Tonight, we are taking the iowa way all the way to washington. [applause] she squeezed by. That was a close race. I like the way you used squeeze. She castrated pigs. That was part of her image. She will be joined in washington by new senators from colorado and montana. Also the governors race in florida with rick scott defeating charlie crist. Republican governors in massachusetts, maryland. The senate just more republican. Louisiana is still going to be in a runoff. As expected. Thank you so much. Be sure to watch Bloomberg Television for more coverage on last night election results. Pim will be hosting a special election 2014 wrapup today at 12 00 p. M. Eastern time. Thats it for today on in the loop. The former ubs american ceo and former staples ceo and Larry Silverstein tomorrow. It is 56 past the hour. Bloomberg television is on the markets. We are 30 minutes into the start of u. S. Trading in stocks making another run at a record high. The s p 500 up at the moment by. 3 . The high was reached on monday. Are about five points shy of that level. The dow industrials adding. 3 . Up nicely for the friday jobs report. Looking ahead to the easing policy meeting tomorrow. Pressure on mario draghi to do something similar. Prices. Mover is gold down by more than 2 . The dollar continues to strengthen. The backdrop to all this is the republicans winning the Senate Majority for the first time in eight years. Joining me is the chief global strategist we can get sectors afterwards. There are some a different upsets every four years. Some people would argue its a bit of confidence booster for the general public. If you are between president ial elections, people are often the the weand vote for can change whats not working. There is a bit of a general optimism in the markets. What we are seeing is consistent with that. The spider etf gaining about 8 . Sure. A lot of other factors going on. Central banks may be. Little details like that. The bigger important forces right now. What happened last night is still very relevant. It is interesting to point out that if you have a democratic president and the republican congress, that has been the best returns during those periods. Lets talk about sectors. Energy companies, medical device makers. Ceos of those companies are feeling a lot better today. , they the Energy Sectors need all the help they can get right now given whats happening with oil prices. Its also nuanced. The pipeline, keystone has a much better chance of getting through. That puts more oil into the gulf. You have the export ban. The dismantling will accelerate here. Quickly, we have to look ahead to ecb. What do inspector happen . Iswhat mario has to address this reuters story from yesterday about dissension among the ranks and managerial style. He and the bank have to come out very aggressively. That, thatl to do will leave a lingering cloud for the markets. It has a tendency to build up expectations to a point after the actual policy announcement is made. We will be back on the markets once again in 30 minutes. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. Wave of the future. Democrats get swamped by a republican sunotsunami. And the feds inflation president Richard Fisher wants to raise rates sooner rather than later. We will hear from him in a bloomberg exclusive. Crude under 80 a barrel. What does this mean for the energy industry