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Republicans Gain Majority in US House

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hello to our viewers across China.

I'm Saijal Patel from CNBC and you're watching "Asia Market Daily".

America has seen its biggest shift of power in the House since 1994 - with Republicans winning the House of Representatives in a landslide mid-term election victory.

To give you a breakdown, 435 seats in the House of Reps were up for election, while Americans also voted on 37 seats in the Senate.

Republicans secured more than the 39 seats needed to gain control in the House, and also made massive inroads in the Senate. Although Democrats will likely retain a slim majority.

But what will all this mean for U.S.-China relations?

Political analysts say the GOP - or Grand Old Party - will have a more thoughtful attitude towards Chinese investment in the U.S.

Some Republican candidates, running for governor, are even focusing on boosting exports to China as a way of fixing trade imbalances.

For example, Texas Governor Rick Perry - who won another term today - recently supported a Texas and China Business conference, to improve economic ties between the state and the economic superpower.

Scott Paul, from the Alliance for American Manufacturing also sees a change in the US/China relationship - saying the Republican win will be bit more favorable for China.

(SOT) Scott Paul, Executive Director, Alliance for American Manufacturing:

“I think the Republican leadership will be a little friendlier towards China, a little less likely to confront it. But I do think that an awful lot of these Republicans are going to be elected hold the same view as many Democrats and I just look back at the China currency vote that we had a few weeks ago. We saw 99 Republicans support that bill, so this is actually one of the few things on which I think there's bi-partisan agreement that we need some improvement.”

In just a few hours, the U.S. Federal Reserve is expected to announce a second round of quantitative easing - or QE2 as it's been dubbed - to boost the troubled American economy.

Analysts predict the Fed will buy at least 500 billion dollars worth of Treasuries - over a six-month period, injecting some much-needed cash into the system.

The central bank is also expected to leave the door open for further monetary easing - if this round isn't enough to give the economic recovery a kick start.

But Christian Menegatti of Roubini Global Economics says he doesn't "think QE2 is going to do it" - because there's still so much uncertainty in the U.S. that's weighing on business confidence.

(SOT) Christian Menegatti, Vice President, Global Economic Research, Roubini Global Economics:

“If you look at it corporations are holding cash, banks are holding cash, the credit channel is not yet functioning property, it's not about just large corporations that can tap the bond markets, but it's about small corporations that still have a hard time getting credit.”

That brings us to the end of Asia Market Daily.

I'm Saijal Patel from CNBC, enjoy the rest of your night.

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