Administration impact your money . This is a special edition of nightly Business Report for wednesday, november 9th. Good evening, everyone, and welcome to the day after. America has spoken as it has in its peaceful solemn way, every four years since 1789. Yesterday, they chose donald trump. The result was a shocker. To many investors, what happened today was almost equally unexpected. Stocks rose, and not just a little. A lot. Bond yields spiked, crude oil jumped, a major dlag dollar ingesti index fell. So many of the confident assumptions, a clinton win, a violent market selloff, if she didnt, were turned on their heads. Not that it was all smoothsailing. Asian markets did sell off and at one point overnight, u. S. Stock futures signaled an 800point dow dive. By the close, the dow jones fell. The s p 500 was up 23. The phrma sector was one of the top performers today. Thats because Donald Trumps victory eased concerns about potential action on drug pricing and taxes. Pfizer and merck rose sharply. Megter held has more on whats ahead for that industry. Reporter the republican sweep of the presidency, house and senate, alleviates investor concerns over increased regulation of drug prices an issue that dogged the industry for the past few years. Increasingly into election day. Stocks soared today. It had been in the crosshairs of senator Bernie Sanders over pricing of its leukemia drugs. Investors now expect no major drug price reform in the new congress. According to a survey done by ever core isi. And the relief not just on the federal level. Prop 61 also appears to have been defeated. Attempted to match discounts on drugs for californias state agencies to what the federal department of veteran affairs seechd. But the drug industry and others outspent supporters by about 71. The other issue drug industry investors are focused on is tax reform. The industry has been swept in the series of socalled inversion deals, where american acquirers seek targets overseas to lower their Corporate Tax rates. Some have been successful, like mylans deal to move to the neglecter lands. Pfizers attempt on allergan. Investors expect not only a potential lowering of the u. S. Corporate tax rate but a potential tax holiday, as well. Where companies could bring overseas cash back into the u. S. At a lower rate than what they would normally pay. This, a potential boon to Companies Like amgen, which holds 34 billion. Gilead with 25 billion, and merck with 21 billion. According to evercore isi. But its not all smoothsailing. Donald trump has also said he would repeal the Affordable Care act, which could create a lot of uncertainty for the future of health care in america. For nightly Business Report, im meg tirrell. And a bill later in our program, well take a closer look at what might happen next to the Affordable Care act. Dow component caterpillar along with other industrial stocks also performed well today on trumps pledge to invest heavily in bridges, roads, tunnels and other infrastructure. Its not just a deeply divided populus the new commander in chief will have to repair. Infrastructure is on the agenda, as well. In his Early Morning victory speech, president elect donald trump vowing to make it a priority. We are going to fix our inner cities, and rebuild our highways, bridges, tunnels, airports, schools, hospitals. Were going to rebuild our infrastructure. Which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it. Its no secret americas infrastructure is crumbling. The American Society of Civil Engineers have estimated the backlog of projects could cost more than 3. 5 trillion by 2020. Trumps potential plan to dedicate 1 trillion to new projects, partly funded by revenue from a onetime tax holiday brought home from overseas. If passed, it could amount to fiscal stimulus, which could bolster Economic Growth and the industrial stocks that stand to gain. Policymakers are looking for ways to stimulate the economy. Donald trump has a twopart plan. One which involves Corporate Tax reform, the second which involves increased infrastructure spending, and so youre starting to see a broad rally in infrastructure stocks that will benefit from additional spending in that category. In trading today, shares of Construction Materials jumped. And at that time bill lar led the dow higher as investors anticipate demand for bulldozers and other heavy machines will increase. Wells fargo analyst justin ward says United Rentals and acom could enjoy a significant tailwind. Steel makers like u. S. Steel and nucore could be winners as well since trump promised to build with American Steel made by american workers. The prospect could also benefit transportation carriers, like railroads and truckers, which would not only reap the benefits of better roads, tracks and bridges, but be needed to haul the goods to make all of it happen. For nightly Business Report, im morgan brennan. And defense stocks also got a lift on trumps election victory and the republican sweep of congress. Trump has pledged to increase military spending which sent shares of lockheed martin, Northrop Grumman and General Dynamics high another. Jackie deangelis breaks down what investors should expect. Reporter candidate trump supported relaxing Energy Industry regulations. If President Trump can achieve those goals, that would benefit the drillers, the frackers and the infrastructure companies. But it can also increase supply. At a time when there is already a Worldwide Supply glut. Trump will open up the oil markets and make it more advantageous for exploration and production. The markets will regulate themselves. In other words, if there is too much oil on the market, and its not profitable for them to produce, then those wells will stay shut. And if it is, theyll come online. Reporter Infrastructure Projects are also in focus. Not only will the projects create jobs, but theyll continue to build out the domestic transport network we need to get oil where it needs to go. On coal, trump wont expand the industry, but he wont make moves to tamp down on it too quickly. The goal would be to keep Coal Companies and workers in business. Alternative energy was an area expected to thrive under Hillary Clinton. It may not see exponential growth under trump, but analysts are not expecting alternative Energy Companies to suffer dramatically, either. The problem that we had before was there was a jump to green when it was not economically feasible for Many Companies to be able to do that. Fossil fuels are what we use right now. The world does want to go to green but its going to be a slow process, not something that we could force on companies. Reporter meantime, experts say that none of these changes will be made overnight. Its going to take some time to approve and implement them. And when it comes to the Energy Industry, slow and steady wins the race. For nightly Business Report, im jackie deangelis. So what might a Trump Presidency mean for the Financial Markets and your money . Weve the chief economic adviser at allianz. Always good to see you. Nice to have you here. Thank you, sue. Whats your reaction to the whip saw that we saw in this market between the 800 points to the down side in the futures markets last night and then a rally to within i think 47 points of a record high . Absolutely remarkable. And like hours up when the chain started to happen. It reflected two things. Content and tone. On the tone, the president elects speech was conciliatory, was inclusive, was unfying and got reinforced during the day from what we heard from president obama, secretary Hillary Clinton and others. On the content, he stressed a pro growth component. Infrastructure, deregulation, and Corporate Tax reform. He did not go to the anti growth elements, which is protectionism. So put nice tone, nice content, and he got an amazing reversal. What i found today, mohamed, very interesting, was two things. Actually, over the last two days. Nothing that we thought or that the supposedly smart people thought was going to happen. The pollsters, the pundits, investors did happen. Everybody said if trump wins, the market is going to sell off. It didnt. What is an investor to do when what they think is going to happen just turns out to be dead wrong . And thats a big question mark about socalled expert opinion. And it reflects i think a misunderstanding of the politics of anger. The fact that when you run sophisticated market economies at low growth for a long time, and when the benefits of growth go to very few people, the reaction of that is to get improbables that become realities. We saw it with brexit. We are seeing it with this election, were seeing it with negative interest rates. I can criterite you a whole lis things. So i dont think we dont quite yet understand fully the politics of anger and what that produces. In terms of market reaction, i think we also underestimate how much money there still is on the sideline, willing to come in, because we have been conditioned to buy on the dips. And you saw that happen again. And its been something we have been conditioned to do for four to five years now. You know, mohamed, the old saying, the market likes gridlock and we dont have that now. So how do you view the market going forward, given the change in dynamic in washington . I think we come to an inflexion point. The road we have been on, which is low but stable growth, and Central Banks able to repress volatility. That road is coming to an end. If only because the politics is proving to be really messy. People want more than that. If the Political Class responds and if we get pro growth measures, then we can transition to higher growth, more inclusive growth and genuine final stability. But if we go back to gridlock and no political action, then low growth will become recession, and artificial Financial Stability will become unsettling financial instability. I really do believe that over the next two years, were going to come to that very critical t junction. This. Is the critical point youre making, mohamed, and its about growth and low income, low or zero Income Growth, and the fact that what growth there has been and what Income Growth there has been has been at one end of the spectrum. It is destabilizing. Are you optimistic about growth under a trump administration, and secondly, very briefly, if you wouldnt mind, what about bonds today . They spiked. The yields did. So bonds moved massively, 20 basis points, and what theyre telling you is the market is expecting higher growth, and higher inflation. Right . So responding two two things. Its feasible. This has never been an engineering problem. We know the economists know pretty well what we need to generate growth. Its always been a political issue. So if you are more optimistic on the politics, which some are, im yet to be totally convinced but some are. More optimistic on the politics, then you get more optimistic on growth. Mohamed, thank you so much. Appreciate it. Mohamed elerian with allianz. And things may change under a trump administration. Chinas president called donald trump to congratulate him on winning the u. S. Presidency. The relationship between the worlds two largest economies is not only important but also very complex. Eunice yoon reports tonight from beijing. Reporter investors in asia are worried about a rise in u. S. Protectionism and greater uncertainty. That uncertainty played itself out in the markets today, tanking the nikkei by 5 . Now once the dust settled and the reality sank in that trump had won, shindo abe contacted donald trump to say congratulations and also to say he hopes that u. S. china relations would be stable. Now as a message of the chinese president is telling, because if you believe the rhetoric around trumps campaign, when it comes to china, you would think that trump wants anything but that. Trump had called china a currency manipulator, a cheater, that steals american jobs. Hes also threatened to slap china with 45 tariffs on chinese imports. Now if those policies do go through, china could face a great disruption to its relationship with a very important trading partner. On the security front, though, a different story. Beijing could welcome a Trump Presidency, because trumps approach is isolationist. And under president obama, and his pivot to asia, the u. S. Has been increasing its presence in the region, economically, with a tpp, and strategically with greater patrols in the south china sea. But every indication has been that a President Trump would want the u. S. To withdraw from the region, and that could leave a void for china to more freely pursue its own economic and strategic goals for asia. For nightly Business Report, im eunice yoon, in beijing. But its not just the Transpacific Partnership trade agreement that is being questioned. President elect trump has also promised to look at nafta, and has suggested tariffs on chinese and mexican goods. Seema moda is here. What exactly has mr. Trump proposed to do . If he were wants to get rid of tpp, president elect donald trump, it would be seen as a big win for china, because it could likely redefine washingtons relationship with many of its allies in asia. And potentially, bring japan and south korea closer to china. So overall, big win for china, and elevates their economic china would fill the vacuum, basically. Exactly. What companies are going to be watching this closely. We saw a big rally in caterpillar. The multinational companies, specifically in technology that are so reliant on business overseas and the favorable trade agreements that could potentially be heard by any of these trade agreements that are taken off the table. Walmart in the retail space, another company to keep an eye on. They import about 50 billion of goods from china every year. So any type of added tariff could likely impact the companys bottom line. How could some of these suggested policies affect the u. S. Economy . Some people worry that it could throw the u. S. Economy into a recession. It really depends on what trumps economic policies are at the end of the day. But when it comes to trade, moody says that that added tariff of 45 on chinese goods could result in millions of americans losing their jobs. U. S. Economy could potentially shrink by 2019. At the heart of the debate is trade and impact on america. Thank you. Shares of two private prison stocks soar following Hillary Clintons loss. And thats where we begin tonights market focus. Investors of geo group and Corrections Corporation had a sense of renewed optimism regarding the future of the industry following the results of last nights election. Department of justice said it would phase out its use of private prisons and clinton was expected to adhere to that decision if she had become president. Trump, on the other hand, has expressed interest in keeping private prisons. Geo shares were up 21 to 28. 96 and Corrections Corp to 20. 31. At ts proposed 85 billion acquisition of time warner called into question today following Donald Trumps president ial victory. Mr. Trump an outspoken critic, saying he would not approve the deal if he became president , because the combination would result in too much concentration of power in the hands of too few. At t was up a percent to 37. 44, but time warner fell nearly 1. 5 to 86. 60. Norwegian cruise lines saw sales and profits rise as that company benefited from a larger inventory of ships and higher onboard spending. Earnings beat expectations while revenue was roughly in line with estimates. But the company did say it would lower the high end of its full year Earnings Guidance due to currency head winds. Norwegian dropped 9 to 35. 53. General motors said it would lay off 2,000 employees and cut production shifts as the Company Responds to slowing sales of its chevy and cadillac cars. The job cuts expected to happen early next year. Gm shares off about 2. 5 on this upday at 30. 96. The drug maker, mylan said strength in its foreign markets helped Quarterly Results when the Company Posted earnings and revenue that missed estimates. Shares initially fell slightly in after hours, but ended the regular session up nearly 5 . At 38. 92. One sector that did not do well today, the hospital stocks. Tennant and Community Health systems fell more than 20 . Universal health and health south also dropped. And the concern is that the new republican government will repeal the Affordable Care act. Which means that fewer people will likely be admitted to hospitals. But will lawmakers and president elect donald trump Work Together to keep the Affordable Care act, or, as many have promised, could we see the end of the Health Care Law under a President Trump presidency . Craig garthwhite at northwestern universitys Kellogg School of Management Joins us now. Good to have you back. What could mr. Trump do as he has promised on day one to cripple or gut the aca . On day one on his own, he has a decent amount of executive power with a set of subsidies at fairly low income people getting their insurance through the aca marketplaces. Those are currently funded by an executive order because congress didnt fund them in the aca and he could remove those by executive order and that would really make it hard for these lowincome individuals to buy insurance and can set an avalanche of risk within the within the aca marketplaces. So if he does indeed do that, what where does that put the system . Do we go back to the old system . Its really were not exactly sure where we would go. Just that wouldnt take us back to the old system. He could then through a process of reconciliation in the senate which would require 50 votes, remove the subsidies and Medicaid Expansion. The states that have passed it. We can do that with only 50 votes. There is no way to filibuster that. If he did that in terms of the insurance expansion, we sort of ended most of the gain we have. That gain thats taken us to the lowest rate of uninsurance in the history of our country. So its really the targeting of the subsidies is where is the is the beating heart of the aca. Do i have that right, craig . Yeah. Its both the beating heart and the only thing you can really touch with less than 60 votes in the senate. Its clear, democrats filibuster any actual repeal of the entire legislation and so theyre left trying to take things away that have a budgetary focus and thats going to be the subsidies,ed Medicaid Expansion and that leaves us sort of holding one half of what trump has promised to do on day one, which is to repeal and replace the aca. And in replacement is really going to require some cooperation with democrats. I just dont right now see with the rhetoric thats happening were going to see that type of cooperation for some type of replace mode. I was just going to ask you, what role will congress have in all of this. And do we focus on, you know, what might happen or what could happen. You know . How do you view the argument . Yeah, i think right now we have to focus on what could happen. We have never had a president in modern history elected with such Little Information about what hes actually going to do in a policy sense. So we can focus on what could happen. What is for certain when it comes to congress that there are a set of powerful interests in the form of hospitals, insurers and pharmaceutical companies that you should taking big hits and theyre going to activate their lobbying and their political power to try and preserve in terms of insurance expansion. I dont think its a done deal. I think that, you know, if you were to remove the Medicaid Expansion, youre going to be taking insurance away from millions of people across the country. And thats not going to be politically popular regardless of what party youre in. As you point out, it may not be politically popular with drug makers or hospitals, and maybe even with some drug makers. Thank you very much, craig. Appreciate it. Craig garthwhite, northwestern universitys ankKellogg School management. Why donald trump will be the most conflicted president in american history. Donald trump is not only our president elect, but also businessman, of course, in control of a multibillion dollar empire with operations around the world. Robert frank reports on the potential conflicts of interest facing the next president. Donald trump will be the richest man ever to be president of the united states. There is no law preventing the president from owning or running a company from the oval office while ethics rules impose limitations on cabinet members and officials in congress, the president is exempt. So legally, donald trump and his family would be allowed to move the headquarters of the Trump Organization, his private company, to the white house. While the issue garnered little attention during the campaign, mr. Trump has said he would consider putting the company into a blind trust, and handing it off to his children. But any blind trust would be impractical, by nature he knows what assets and interests are actually in the company. People close to the trump family tell me that he plans to hand control of the Trump Organization to his children with ivanka running the hotel group, eric running the winery and golf properties, and donald jr. Running the real estate developments. The big question is whether they will expand the Company Without inviting the appearance or benefitting from access to the president. Mr. Trumps businesses are valued at up to 3 billion with 17 golf properties, over a dozen hotels, and more than 20 trump branded residential buildings. His interests span the globe from south korea to india, dubai, scotland and brazil. At a Republican Debate this summer, mr. Trump said, quote, if i became president , i wouldnt care less about the company. Its peanuts. That, of course, compared to being ceo of the united states. For nightly Business Report, im robert frank, new york. And before we go, heres another look at the post election day on wall street. The dow rose 257 points to close just shy of a record. The nasdaq added 57. And the s p 500 was up 23. It sure didnt feel that way about 11 00 last night. No, it did not. We were all on our devices, contacting sources. It was a dicey night for the market. Thats it for nightly Business Report tonight. Im ss. Thanks for watching. Thanks from me, as well. Im tyler mathisen. Have a great evening, everyone. Get some sleep. Get some sleep. Well see you tomorrow. Find out how the return of a feared predatort. Is altering a vast wilderness. Wirsing we live in a world where big predators are largely missing. Sethi . Why a movement to save seeds helps safeguard our food supply. And how a photographer captures the wild spirit of a changing landscape. Forsberg everything is connected to everything else. Announcer major funding for quest is provided by the National Science foundation. Sethi for nearly two centuries, scientists have been assembling collections like this one