With the US midterms now done and dusted, many analysts have been reassessing what that means for both domestic and foreign policy, and whether a great deal has changed, now that the Democrats have retaken the House of Representatives. Capital Alpha, the DC-based policy research firm, have covered this extensively. They say the result creates a critical mass of new opposition to the president’s agenda, begetting headline risk and gridlock. But it was not unexpected, and will unlikely deter Trump’s deregulation or tax cuts. As for foreign policy the US-China trade wars, the consensus opinion is that Trump’s hardened message won’t change too much, but as TS Lombard point out, they may need to simmer a little, as the real costs of the next round of tariffs start to tilt from China to the US. This could be bad for both growth and inflation writes Suttle Economics, which will be sure to impact the reaction function of the Fed, who have shown no signs of relenting to pressure from the President to be less hawkish. We also highlight some interesting work from Cross Border Capital on the changing dynamics of global capital flows which expose European growth, while CreditSights make a reassessment of EM debt, a few months after the rout. Who has the market reopened for?