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Obama digs in even as he vows to work with Republicans

– ‘Red flag’ on immigration –

That sets up a potential firestorm with congressional leaders, McConnell, who just minutes before Obama spoke expressed an eagerness to cooperate with the president but warned against such a unilateral move.

Taking executive action on immigration, without votes in Congress, would be “like waving a red flag in front of a bull,” McConnell told reporters in Kentucky.

Despite Obama insisting he was optimistic about America’s future, exit polls Tuesday confirmed the pessimistic mood that several Republican winners had capitalized on.

Voters are convinced the nation is headed in the wrong direction and are sceptical of the abilities of the president and his Democrats to turn things around.

At least one senior Democratic official, Senate Majority Leader Harry Reid’s chief of staff, suggested Obama came up short in encouraging voters to back his own party.

Instead of providing a direct mea culpa for the election losses, Obama noted that Americans of all stripes have grown frustrated with Washington, “and as president they rightly hold me accountable to do more to make it work properly.”

“Obviously Republicans had a good night and they deserve credit for running good campaigns,” Obama said. “Beyond that I’ll leave it to you and professional pundits to pick through the results.”

The tone was a world away from president Bill Clinton’s acceptance of “responsibility” the day after his Democrats lost control of both chambers of Congress 20 years ago.

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While Obama said he would “measure ideas, not whether they’re from Republicans or Democrats but whether they work for the American people,” he reiterated he would use his veto powers on any bill that repealed his landmark health care reform that he insists has begun to work well for millions.

“Efforts that would take away health care from the 10 million people who now have it and the millions more who are eligible to get it, we’re not going to support.”

But he acknowledged he would study Republican proposals to make “responsible changes” to the law.

Obama’s occasionally aloof 70-minute press conference earned a swift rebuke from the Republican National Committee, which suggested the president was “in denial” about the election.

US financial markets closed at fresh record highs after the elections lifted hopes for pro-business policies. Europe’s leading stock markets and the dollar also rallied.

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