fallen from 9% in early october 22.6% now. accused of acting as south korea's so-called shadow president, under emergency laws. laws that say prosecutors want to know how much influence she has had. coleader, was a military dictator -- who ruled in the 1970's. fortune. of an illicit a visit to the town to survey the earthquake damage. there for aent message of sharing. they will do all they can to speed up the process of rebuilding but he warned it would take time. hourl news 24 hours a day by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ scarlet: we're 30 minutes from the close of trading in the u.s. u.s. stocks, the dollar, emerging-market currencies all extending declines sparked by improved odds of a trump victory. --ie: joe: the question is what did you miss? for ahe has been away while. presidential politics to federal reserve rate hikes and jobs data , anxiety surging. trying to predict how the u.s. presidential race will play out, the stock market has a clear-cut industry is at risk. earnings season is not quite over. one tech heavyweight to watch and that is facebook reporting after the bell tomorrow. look at how much instagram is adding to the bottom line. >> we will show you where the major indexes stand. losses, down by 200 points. it is still up substantially compared to the small group -- small moves. the nasdaq is the biggest loser. let's head to abigail doolittle. longest losing streak since the end of may. it is on pace for its worst decline in three weeks and lowest level in seven weeks to close. for nasdaq.dent much appears to be driven by technology. it is not entirely clear was behind this trading action. could be followthrough that some investors consider to be disappointing. down five days in a row. we reached out to sean, who has really been good on this. he is surprised by the degree of in the country is adamant returning to topline growth. overall, this should help support the stock. something interesting has happened today. itsstock dropped back below moving average. the last time, it bounced right back off of this. there is a reason to think we could see a continued weakness here in apple perhaps down to the 200 day moving average. the stock trading at a discount right0 but they support around 103 and 104. >> facebook off by 1.3%. what are you hearing? >> facebook put up tremendous quarter after tremendous quarter. they beat nine out of the nine last times. investors are looking for 97 and adjusted earnings on $6.9 billion. it is huge growth. .14% year-over-year growth the bar is once again high. some trepidation that this would be the time they missed. suggests that if there is a pullback, it would be brief. you see a beautiful uptrend. currently, it appears facebook is getting ready to break out to .he upside facebook looks to be in good shape. likely to be pretty strong support. >> good stuff. live at the nasdaq. federal reserve policymakers began a two-day meeting in washington today. officials projected holding the line on interest rates as they assess the impact of the decision to leave the european union. its decisionith earlier this morning keeping the policy unchanged and opting not to expand the stimulus. target forecast the 2% may not be reached until march of 2016. that is years later than originally forecast in 2013. she's equity strategist reacted to the boj position. obviously, you look at inflation versus the streets and 4 -- forecast, there is a gap between the two lines. time, people were not really expecting the banks forecast to be realized at least in the time the bank was predicting. the announcement is not really come as a huge surprise to anyone. >> you can see how little the yen has actually responded in reaction to this particular meeting. what about the functionality in the market in general? target.reducing the >> the reality is monitored policy meeting of the bank of japan, they are moving away from a quantitative mode of targeting the quantity of money to the yield curve, interest-rate targeting instead. it was very unlikely for them to augment their purchase operation steepening the yield curve for the benefit of the financial services industry. the yen, it has been september, it weekend and not strengthened, though there were some fears that was symbolic of tapering. we have seen the yen trade weaker closer to 100 and that combined with a fiscal stimulus , basically for the bank of japan, the ball is no longer really in their court. ats, the level of currency this range is not really worrisome for the bank of japan. that is urging the bank of japan to put their foot on the gas in this juncture. >> in terms of the way things develop from here, can you tell a trump victory would have on japanese assets, particularly equities? >> like risk assets around the world, if trump is elected, that would be a surprise, a negative .hock to asset markets globally i think the stock market in japan, the reaction probably would be negative for most equity markets around the world and will surprise the yen as a safe haven currency as well. hoping this will be the outcome. if it does turn out to be the case, it will be a risk off mode for at least the immediate aftermath of that result. >> a little bit more on the currency, do you have a sense that chinese authorities would drop u.s. assets and rebalance their portfolios? do you think the rebalancing could favor the yen in a big way as well? of thee is always talk chinese ownership of u.s. treasuries. of negative side effects that come with what you described. japan is not going to be immune significant moves of the nature. the yen is probably in a relatively comfortable zone as far as the japanese economy is concerned. rebounded,e production has been relatively stable. a huge shift in the holdings of u.s. assets, i do not think there will be a major implication for japan at this point. matt: the shares are searching right now after dow jones reported there is another bitter circling valeant unit. be -- according to dow it says another bitter is circling as well. you can see 19.4%. fund, outeturn bond in october. the first outflow since january of 2014. to give perspective, in terms of performance, you can see the fund, if thebond orange line had trailed, the bloomberg u.s. index, the aggie index has climbed 5%. 3.7% since the start of the year. 1 as ofthrough october yesterday. we will continue to monitor the headlines as the news develops. this is bloomberg. ♪ joe: what did you miss? by now, everyone on wall street has taken a stab at predicting with dock market will do after the election. what they are signaling about what the vote means, here is oliver to shed some light. oliver: i think basically what we have seen is a lot of speculation on the prognostication about what will happen in the market come whether or not -- trump or hillary clinton wins. what i've chosen to do here is the correlations for all 500 stocks in the s&p 500. plots and against real clear politics polling of hillary clinton and donald trump to see the trends that emerge. this is an imperfect way to assess this. you can look quarterly at whether or not it is there but here's what i will offer for several months of correlations, almost a two-way race. i want to draw your attention to the number of stocks strongly correlated. among the highly correlated stocks, 69 of them are due to strong correlation of clinton numbers. only 31 of them are due to strong trump members. these are with 100 strongly correlated stocks. a stronghey have correlation to one candidate, but an increase in the other. there is a pretty clear breakdown about a correlation. this is basically -- we do not have to get in with the math. it is a moderately strong correlation that one numbers do well, the financial stocks do well. then you have the industrial case, which is interesting. a lot of companies are industrial companies. they are both positive and negative. you that a will tell lot of these industrial companies will benefit regardless who wins. we have two clinton numbers. health care negatively tied to those numbers. alwayscks are not extremely negative. it'syears also, right now -- standing to benefit the most based on higher clinton numbers. that will be interesting to watch. let's take a closer look at what is happening with each candidate .nd let's start with trump all of these stocks have been strongly correlated with trump. these are the seven most correlated companies since march. orange lines are showing a positive correlation. morgan stanley with a correlation above .7, a strong correlation mathematically. if you others speak to the pattern as well, coca-cola, a more industrial kind of consumer but they have got industrial companies trading well with trump. i want to point out qualcomm. after you get past financials, a lot of tech companies for trump. they fit a pattern that is probably a little bit more interesting. let's bring it over to clinton. these are numbers that a lot of people are looking at. some of the strongest correlations are due to hillary clinton nominee moving out. they have an easier time determining what are actually pop -- actual policies with the. at a lot ofng retailers discretionary companies. consumer american stocks, these are companies that are more ifustrial that will do well she potentially does followthrough -- fall through the plan. then you have monsanto. just because this is an example where perhaps this is not a political correlation. it happens when you're dealing with master. there will be false positives here. basically, what you're looking it traded largely on the health care stuff. there is still a lot of questions that have to be answered. >> what i was surprised by is the weak correlation with health care shares given that hillary clinton has moved the entire thing with a tweet. >> it is true. you have to break it down from both sides. you talk about those who stand to benefit if she sticks with those already visiting. financials are fairly strongly correlated with hillary clinton. relief ift be a clinton does not get the election. is trump going to add anything already?cture avoid those who feel -- appear correlated? are there any ways to filter that out? i look across different time spans. youget to three months, will get more noise out of the wager. you have one week of strong moves and then throw it off. that is seven months where you have to have a strong correlation. the second point, i would offer a littlee might be less stature to the study than speculation about who would implement what rules and what agenda that might be. matt: thank you for joining a spirit i will break news that you will find interesting. that is that valeant has continued to surge. we last talked five minutes ago, it was up 14% and now it is up 33% that valeant may find a better $10 billion to cash in on the sale of its gastrointestinal drugs unit. was it just yesterday? bloomberg wrote a story that federal prosecutors are looking at fraud charges against j michael pearson, the valeant former ceo and you saw the stock plot. none of it really changes the long-term picture come the fact that valeant is still down about 80% year to date. >> this only getting us back to october 6 levels. it really shows how much they are still getting killed. it is only a one-month high. matt: we will continue to file -- follow this story for you. they fell and continued to drop throughout the trading day. bond yields are plummeting as well as investors little security there. this is bloomberg. ♪ scarlet: with the polls between donald trump and hillary clinton tightening, and five volatility is down at the highest point today in five years. that is your white line. the blue line is the mexican peso but i invert it. you are looking at the peso versus the u.s. dollar. the odds of volatility will and they're paying up for it. this is a premium of owning mexican options. to go further. >> it is all about the peso. volatility, i will look at interesting phenomenon related to the vix. the white line is in pride -- implied volatility. people paid to protect themselves. line is realized volatility. these are actual gyrations of the market. we see the gap where the market is valid -- not actively volatile on the realized sense. you can see the spread is one of the highest levels, 1% of the time in the last three years has the spread gotten wider. an unusual situation where the actual market movement is not volatility of people are paying up for protection. >> interesting stuff. i read studies that show mergers never make sense financially and companies always try them. i have not seen a study about how much sense a split up makes. thought that the two sums of his business were worth more than a whole. he was proven right today. the jet engine parts business and auto parts business, trading separately from the aluminum -- aluminum business. the combined market capital of these stocks is worth more than yesterday. >> up next, the market close. this is bloomberg. ♪ hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home and here's the best part... you still own your home. take control of your retirement today! scarlet: where moments away from the closing bell. stocks have fallen to places not seen since july. traders refraining from piling into riskier assets before the fed decision tomorrow and growth next week. i am scarlet fu. like to welcome our viewers who are tuning in live on twitter. you can wash the coverage live every weekend -- every weekday from 4:00 p.m. until 5:00 p.m. somewhere on twitter. scarlet: the dow declined more than 200 points but has cut the drop in half and now off by more than 100 points. about 105 points right now, and trading volume exploded, 30% above the 30 day average pending on whether you are looking at the dow jones, the s&p, and the nasdaq. i do not believe we have tracked this until now. the sixth straight day down for the s&p. though it was a very marginal move. >> still interesting. the dow was down nearly 200 today. starting to get real jitters in the market different energy stocks are doing different things because of different earnings we have seen, as well. take a look at my imac. you can see energy is the only green piece of the pie, everything is down. almost 2% asn well, telecom down a little more than 1%. take a look at the stocks. it must interesting i just highlighted, was alcoa. if you look at this this morning you see a down 20%. now you see it is up 7%. alcoa is now trading separately from archon. it used to because limited. i know it well from my hometown in ohio. it the owner of victoria's secret had sales. promising a new drug, but it turned out to not be promising at all in trials. its outlook, more importantly, then investors had anticipated. at government bonds around the world, greek 10 year yield, some progress continuing the bail out there. german 10 year yields also rising, the bond continuing around the world, let's look at intraday, there is some interesting action. on trump poll early pulling of clinton, at one point, everything was selling off, including trade rates. risk addedat classic to action and inserted itself. we saw the declining yields. currencies, it is about the safe havens. it is deteriorating against the japanese yen and the euro. dollar -- it is gaining grounds versus emerging-market currencies, including mexican peso. show that thels race is tightening. >> it is closing the access hollywood gap. that is when the tape came out of donald trump on the air. now it is almost completely erased it shows how much prospects have improved. meantime, the onshore u.n. has its first back to back again. not just the average economists >> the flight to safety continues. crude oil following a little -- falling a little bit. continuing to push it higher. oranges, they love. at that is what they traded in "trading places." absolutelye, doing fantastic in a surge over the last few years. >> investors globally holding cash, occluding to black rock research. our next guest says, cash is once again king to hedge equity risk. >> cash is not returning much, but neither are bonds. think of all of the sips -- systemic trade. the challenge now is, if you look at the correlation between stocks and bonds, that raises questions. when durations are extended, so risk is higher. providing anot hedge, what can they do in the portfolio? >> they are not providing any income within the interest rates these days. >> you go through the processable nation. it goes back to cash. >> it appears donald trump's prospects have improved. equity markets, not liking the uncertainty, perhaps not liking a change from the status quo. what does the race picture look like under a donald trump presidency? the market does not have an idea about what to think about. maybe it is not the expected outcome. >> i am thinking the swiss franc, the japanese yen. >> i have not finished writing my access hollywood line. the key to this chart is, whenever hillary clinton becomes moremy popular, you see treasury yields rise. whenever donald trump seems to gain, you see treasury yields fall. is this true that they are banking on a clinton victory? >> not necessarily. it is really interesting. using a very popular narrative in the market, you are going to have a clinton victory with probably a republican house and a deal from fiscal spending. higher yieldld to expectations. it is not clear how that will happen. >> he probably will have a fiscal deal. >> a donald trump wins and he -- he would have a congress that would presumably do whatever he wants. and he cuts taxes, and really cranks up the spending, he said he would spend twice as much on infrastructure as hillary clinton would. let's say all that happens, what would you expect it to look like in the event donald trump gets his wishes? >> if he does what he says he will do, it will put pressure on bonds and push rates higher. you will have a pro cyclical .olicy environment is an where you are getting a mythical .andoff xo want to quickly give everyone a look at the square earnings that are coming out. it is really a tiny company, and you do not realize it until you look. million in the8 third quarter. that is better than the 174 they were looking for. but it puts into perspective how small the square is. most middle-class consumers have used it. but, it does not generate that much revenue. that compares to an adjusted estimate of two cents. i am not sure if this is a gap or adjusted loss. $177.8 million in revenue. >> electronic arts, the videogame publisher reporting a four-year profit, or beginning and outlook that tops annan's -- analysts estimates. they putting a lot of weight on the fourth quarter around the holiday shopping season. electronic arts, down 2.4% in after-hours trading at the moment. of asset allocation, you will stick with us after the break. ♪ >> i mark crompton. donald trump joined mike pence and delivered a major speech about obama care. >> i will ask congress to convene a special session so we can repeal and replace. it will be such an honor for me, for you, and everybody in this country. it has to be replaced. we will do it, and we will do it very quickly. it is a catastrophe. mark: donald trump spoke in the philadelphia suburbs. loretta lynch is said to have confidence in james komi. she has come under fire for disclosing e-mails that may be linked to hillary clinton's use of a private server. mey and her met friday. authorities say the school bus rear-ended a car, struck the entrance to a cemetery and veered into oncoming traffic. no children were reported as harmed. and a look at the earthquake damage today, he was accompanied by his wife. they came to send a message of like all normal italians are embracing the population hit by the earthquake. authorities would do all they could to speed up the process of rebuilding the area but warned it could take time. global news 24 hours a day powered by 2600 journalists and analysts. matt: thank you. we are back with the head of asset allocation of black rock. you mentioned cash. this is exciting. are holdingobally $50 trillion in cash. it's hard to get your head around the figure. how could that be and why? >> there are a number of things going on. we see this in the survey. you have a lot of people that were so traumatized that they are holding large amounts of cash in their savings. that is not necessarily the right thing to do but it is understandable. for professional managers, we are in an environment where people are sitting to ask will bonds be a good hedge going forward? matt: if it is the first problem, a generation fearful of investing, that may never come back into assets. >> you have to hope that it does. if you are a 25-year-old, and you have a long retirement because people are living longer, you can have a tough time doing that earning 0% or one point 1% a year. scarlet: their mindset is not to buy the dips. it is unlikely anyone is going to put money to work now in equities. you grewthe caution if up in 2008 or 2009. equities or not she. they are much more reasonable outside of the u.s.. we have put money to work in japan, do you think there are parts of the world who think there would be bargains to be had? >> the lasting scars of the crisis. an manuals ago we had german on talking about how the 1987 crash caused a permanent change in the way obstinate -- options are price. the impact of that is still on. it does raise the possibility something as dramatic as the markcrisis could leave a for some time to come. >> these phenomena have a demographic component. there was a very different investment culture then then the go-go years of the 80's and 90's. it is going to have a lasting impact and a scar. are not just holding stocks and bonds. there are other assets. do people diverse of five? there are certain characteristics that are helpful in the long run. to the exclusion of the others come you will never get the same risk-adjusted returns. the last five years have been a bad market for diversification. andle can buy the s&p 500 be very well. u.s. bonds are expensive. if you want to have the best risk-adjusted returns you can generate you have to be more diversified. so obviously cash, there a strong case for cash. a lot of people are in cash. what are the options people can get that diversification? investor thinkd of the franco the japanese yen? >> for most they are not going to take a specific position but what they should have these international exposure in the portfolio. the u.s. economy is on 20% of global gdp. u.s. equities are only 50% of the market cap. most have a massive overweight to the u.s.. it will not work as well going forward. another asset class, a credit. we talk about u.s. treasuries. those are parts of the fixed income market. place inich have some a broad diversified portfolio. scarlet: is this limited to u.s. investors? do we see that elsewhere? world,go to parts of the cash holdings can be higher. is if wel the answer are going into an environment in which monetary policy starts to tighten, that is an environment you're going to see slightly higher. that is going to be a better hedge and we see in the past. matt: how should investors think about specific event risks? >> for most investors you don't want to change her portfolio based just on the election considering this is a tough call. even if you knew who was going to win it's not clear what the market reaction is going to be. donald trump is going to win it's not obvious what u.s. treasuries are going to do. -- if we do have a surprise, you're going to see increase in volatility. usually in san francisco, investing in new york today, we wanted to catch up on some headlines. it will elevate the co2 the top to on june 1 of next year replace michael johnson. carl icon supports this move. johnson will remain head of the board. >> we are seeing a spike in the shares of cello. -- zillow. finally gilead you can see them up after hours. this is bloomberg ♪ >> i am scarlet fu, "what'd you miss?" it might be the day after halloween, but there are plenty of scary charts on china. -- ifief asia economist you look at just the revenue of these companies, it is just saw it -- shy of japan's gdp. gdp, almost what japan's bigger than germany's entire economy. with all this discussion about how china needs reform and they need to streamline it, cut workers, there are so many hundreds and thousands of jobs at stake. >> people might be underestimating this. manufacturing and consumption, there is a lot of employment and labor and money at stake. it came out last night at its strongest and highest levels since 2014. monthly year-over-year chart, it will be going back to the end of last year. it has been returning pretty nicely, now up 8.8%. it was going nicely with .ommodity rebounds an indication of animal spirits, but trying to get money out of china. a sign of the blood pumping through the waves of the global economy. >> i am seeing 2012, the big money on bacharach. -- back a rat -- baccarat. i am looking at shipping container throughput. shows you is, we have seen a recovery over the last year. a lot of lines here, but pay attention to the thick line. vacant, ration -- conglomeration of many countries. you can see the shipping container has arisen in 2016, but especially bolstered by what is going on in hong kong. a remarkable recovery, given all the pressures we are seeing in the china region. coming up next, tightening polls of donald trump and hillary clinton. we have all the different scenarios for you. i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. mark: i am mark crumpton, time for first word news. the ring you to focus on hillary clinton's e-mail may be rallying her supporters. in the past three days, she has raised 11.3 million dollars online, the most since she became the nominee. campaign manager says "the race has tightened in a way we thought it would tighten, but there is no indication the fbi story is having an impact." those donations came after director james comey said the bureau discovered files that may investigation of hillary clinton's e-mails. donald trump making an appeal to voters who have already cast early votes for hillary clinton. you can recall your ballot and vote for him, that is according to "the wall street journal." laws in pennsylvania, michigan, wisconsin, and minnesota allow early and absentee voters to rescind ballots. a new nationwide poll shows mr. trump pulling into the lead over secretary clinton. tracking survey, trump has 46%, clinton 45%. it is the first time he has led in this polson's may. the survey has a margin of error of three percentage points. accused of acting as a south korea's so-called shadow president, jailed under emergency detention laws. that is according to the washington post, which shows prosecutors want to know how much influence it she has had over her friend of more than 40 years. she was a coleader that was close to president park's. she is suspected of amassing an illicit fortune because of her close ties to president park. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton, this is bloomberg. back to you. thank you very much, let's get a look at today's market actions. losses accelerated through the day, bouncing off their lows around 233. it still ended up down. the nasdaq down, two thirds of 1%. it could have been worse. at one point, the dow is down close to 200. sent to thes being -- surrounding the election. the wall street journal really shares.aleant if they could get from takata some shares. and, they sell gastrointestinal drugs, something interesting there. we had a scoop yesterday at bloomberg news that drove the stock down. abit of a seesaw for valeant, stock that got crushed so hard this year. sayingsla after the bell their acquisition will be for the company's balance sheet, to the tune of half $1 billion. at that is not moving the market very much. i think investors are a little skeptical. stock virtually unchanged. have beenstors skeptical since the get-go. they say it will add $1 billion to sales in the next year, we will see about that. if you look at teslas free cash flow, or cash burn is what it flowy is, only free cash in the last quarter -- the question is, can they turn this around? city to adding solar the mix, when maybe they need to 3's. on building model it may really distract them. now i will go to scarlet. facebook is said to report earnings after the closing bell on wednesday, mark zuckerberg says he wants them to be a video first company to field growth in mobile advertising. let's dig into them numbers don't lie. from the user break down over the last three years, you have daily active monthly active users, the orange bars, and total monthly active users, which are the blue bars. that amounts to 1.7 billion. mobile users are critical because facebook has 84% of its advertising revenue from handheld device in. they have gone from the biggest social network to the owner of popular mobile apps ranging from facebook to whatsapp, messenger, instagram. each has more than one billion users, except for instagram, which has half a billion. facebook is capitalizing on all of these. their average revenue per user rose 36% in the second quarter to $3.82. the metric for north america jumped almost 54% well europe grew 38%. facebook however, not immune from controversy. they said they overestimated the average viewing time over the past few years. this matters because they are dollars online, almost half of funding going to google and facebook alone. one specific area they are tracking money is instagram. facebook's photo dollars onlinet half of sharing app is expected to see a surgeon at revenue over the next few years. another potential revenue driver is a whatsapp. this made cap $2 billion in 2018. if it is able to crack the code, it stands to garner the largest revenue around the world. streamsstinct apps and of money allow facebook to ramp up its investment and more futuristic initiatives such as virtual reality and connecting the world to the internet. we will follow and breakdown facebook earnings after the closing bell. matt: turning to politics, "what'd you miss?" as of the election did not feel long enough, hillary clinton and donald trump having a possible post-election day showdown, deploying volunteer some lawyers across the country. here to talk about what to expressed is margaret from bloomberg politics. it cannot be over soon enough, let's be honest. but it will not possibly be completely over november 8? >> it might be over, but that wide a on how close or win it is. politically, it is much easier to argue for a recount or investigative action if everybody says, it is really, really close. but legally, it is much easier -- in some states you need a close margin. other states, a beast to be pretty close to make any kind of realistic argument before a court or through the recount methods to get a recount or challenge the results. joe: let's talk about what is , let's seeght now how close it is. the general gist is, it feels like trump is gaining momentum. obviously, the market seems to be doing that. lots of polls show it tightening. are they consolidating republicans, is he taking people who are on the fence? what is deriving these better poll numbers? to look are two tiers at, the national polls represent the mood and uncertainty. , areecond, more important the battleground state polls. indisputably, i tightening in this race. how much because of the fbi revelations or because trump went to the bottom on his groping scandal and is moved on -- the question for the clinton campaign, you are starting to see this because now they are going into states they thought ads safe, doing six-figure like colorado and virginia, the margins are tightening enough in some of those important battleground states that it gives them cause for concern. if not panic. trump is trying to seize on this and get voters who are either not hyper pensive the voters or like clinton only because they do not like trump. if you are hard-core clinton fan you are likely to vote, they are gone. most have decided to they prefer. do the people who marginally prefer clinton, are they as motivated to go to the polls? that is to trump is going after. scarlet: what is the best way for trump to motivate them? talking up clinton's alleged crimes, or talking policy? to slam obamacare because she would be carrying on his legacy? >> you are smart to point that out. we saw him in pennsylvania today, bringing up a obamacare. hitting on this notion that if he is president he will have a special session and somehow repeal obamacare. that is the policy front he is hitting. he wants to show he is serious about policy and understands it. thatfers a vague notion unsettles many people who like hillary clinton. , thatea of clinton drama that would be carried over. donald trump is certainly testing that. been such a crazy election season, the fbi news was shocking, but not as shocking as we have come to expect it. is there one more shocking twist in the next week? one more final shoot to drop? to drop? >> the clinton campaign were expecting three to five more counts against her, her health, bill clinton's record as president. certainly, we have more to see. speaking of bill clinton, a quick question. what do you think about the fbi tweeting up the release of its mark rich investigation. he part in that super bowl you narrow after his wife gave so much money to the clintons. >> 15 years ago, right? this seems to be timing more than anything else. we saw documents about donald trump's father. but talk about a pile on, the timing could not be worse. thank you. not only thep, politicians or planning for their post-election era, media networks trying to focus on how to keep the audience is watching once the polls close this election season. ♪ matt: the twists and turns of the 2016 election has delivered blockbuster ratings to cnn and fox news. but can they hang onto viewers after november 8? let's ask jerry smith, who cowrote a story on this. a lot of people have said this is the greatest reality show ever. plus, the future of western civilization is arguably at take. either way. what we do when we go back to normal, why would they watch those networks? >> yes, what do you do for an encore? it has been a huge ratings bonanza for cnn, fox news, msnbc. cnn has made some real inroads. joe: in terms of gaining shares. >> yes, the younger demographic has started to gain and narrowed the gap a little with fox. now, november 9, they have to figure out how to hold onto as much of the audience as they can. we have seen historically, most of those viewers have a lot of trouble hanging onto. scarlet: can we presume the networks will spend more or spend less? they probably had to ramp up on staff. will they cut staff right away or higher different people after the election? >> in some ways, time warner's executive said cnn might be in some ways more profitable next year because they did not spend quite some much money on all these correspondents. you see cnn and fox being number one and number two. they are going in different directions, post-election. cnn has focused on more original series. they have a show "parts unknown ." this is an original show. is trying to do, when the news is not hot, how do they balance out the highs and lows? contrast --e in contract talks with megyn kelly, who has been a rising star during the political season. doesn't fox, because of its political situation, have a win-win situation? if hillary wins, they can hate on her for the next four years, if trump wins, they have exclusive interviews. isn't it easier for them? cnn just has to wait for some air crash, because what else will they be covering? , when thee seen that ideological cable news network, the ratings are better. analysts have said, if hillary wins, stocks will probably do better in the ratings. of: what is your assessment the prospects for a trump tv network in the event he loses? do you think something like that is likely to happen, and could it lead voters away from fox? >> i think it would be very hard for trump to launch a cable network now, for various reasons. the cable industry is really in decline, and they are not that interested in having more cable channels. if trump does decide to launch a media company, it is more likely to look like something glenn beck did, a video service. you have to have subscribers. week, trump'sthis camp has been adding a lot of data on voters that he could use to monetize and create a media network later. matt: voters do not like donald trump or hillary clinton cash clinton, butes -- everybody likes ivanka. anythingody watch with ivanka trump on? >> you would have to think about what sort of people would show up. as much as it may seem like he is on tv all the time. see herd potentially with an hour, someone like rush ideasgh, those are the that are getting thrown out there. donald trump obviously says he is still focused on the election and does not have any interest in a trump tv network at this point. joe: thank you very much. scarlet: south korea's shadow president has been jailed. ♪ scarlet: the influence scandal rocking south korea. at the center of the case is her good friend, choi soon-sil, placed on emergency arrest, investigated for allegedly influencing the president's political decisions, gaining access to classified information, and securing preferential treatment for her daughter at an elite university. what does this mean for the president? will she need to resign, will she be impeached? we have gotten so far as the , butng of choi soon-sil what is next for president park? >> there are lots of different scenarios people are talking about. i think it is quite unlikely that she will be impeached, not only is that a difficult process to pull off, but a lot of the opposition, the liberal parties are not talking about that is a good option. there is a way that possibility she will be forced to step down. there are people in the streets, more protesting planned. pressure is definitely building on her to do something. but this is a person that has the personality, has always been stubborn and strong in the face of adversity like this. it is a real question about whether she will be able to hold up under pressure or decide to cut her losses. not for people who have been paying close attention, summarize this scandal. it is still opaque and hard to understand. what is the core of the issue that is bringing so much pressure on the president? >> basically, the friend of the who has evidently been in her life for a very long around the time when the president's father was assassinated, and before that, her mother was assassinated. she has been accused of essentially meddling in the government's affairs, being seen as influencing president park's decisions, and in the process, finding ways to financially enrich herself. in a nutshell, people are talking about this woman as a rasputin-alike character. someone who has only been in the shadows, pulling the strings for president park. and, has gotten in her head, so to speak. matt: has president park made any gains due to this? has president park been accused of doing anything seriously on ward?d -- unto usuallyals and korea revolve around corruption and politicians enriching themselves because of their power. this is a weird one. there is no clear indication that president park has gained financially at all from this relationship that she has. the woman involved, ms. choi is accused of enriching herself because of her access to the president. the scandal seems to revolve around the idea that park has .lmost been brainwashed that this woman has a some sort of control over her. and before she did, her father had control over park. so, where normally koreans are quite used to scandals involving money, this is one where people are actually questioning the judgment and maybe even the mental health of their president. scarlet: the president is unlikely to step down, and the opposition party is unlikely to impeach her. what is that mean for south korea's economy? her term does not and until early 2018. she does not step down and if she is not impeached, she will remain in office. at the likeliest scenario is that they will find a way to her, have the prime minister take on a bigger role for policymaking, for example. they may give her a ceremonial role or keep her in some capacity. but her political capital is essentially zero now. her ability to continue pushing forward on a lot of her reforms, they have been focused on labor reforms. that is not anything she will be making any progress on in the near term. -- it is funny. a lot of economists and people actuallyorea say it is not in such bad shape. the koreans themselves seem to have a much darker picture. the danger is too full. one, that the government will not be able to do a lot on policy. and two, that people will think that is baduation will get worse, given the politics and the government may be paralyzed. scarlet: thank you so much. joe: coming up, what you need to know for tomorrow's trading day. ♪ matt: a quick programming note. have you ever wondered what startingrange -- friday, we will deconstruct some jargon for you. but we need ideas from you. out, send tweeting as them to us on twitter. joe: john: i am john heilemann. mark: and i am mark halperin. with all due respect is 7-eleven , allegedly donald trump is a wawa man. ♪ we are just one very endless week away from election day. wisconsin,au claire, where donald trump is holding a rally tonight. questions swirl about whether his narrow after presidency is maybe widening a bit. they are making a final push for votes everywhere. trump announced today, he is a spending $25 million over the next few days for tv ads here