From las vegas, with two bigname interviews from the 20 conference. President obama is meeting at this hour with Federal Reserve chair janet yellen at the white house. This is the president s of first oneonone session with chair yellen from her senate confirmation. The white house says the focus is on the longterm outlook for the economy and the global economy. The president will be in beijing this weekend. Meantime, bill gross in his second Investment Outlook says deflation is a growing possibility. He wrote Central Banks around the world have made a dam find fueling inflation, but they are pushed up assets rather than prices in the real economy. He says they need money printing, but money spending more so as that must come from the fiscal side, from the dreaded government side, where deficits are anathema, and balanced budgets are increasingly invoke. General motors sales were basically flat, coming up short of estimates. Cadillac sales down a percent. Ford sales fell, but still did better than analysts forecasts. Yet and chrysler beat estimates. Buyers flocked to sportutility vehicles, led by a 50 increase bar for jeep. The automakers share engines, and a platforms, chairman. They forfeit 2 million in Greenhouse Gas emission credits. The Justice Department and epa say hyundai and kia will also be required to spend 50 million to set up independent tests to certify future mileage claims. The investigation into why Richard Bransons experiment is based give spaceship crashed will take months. Investigators say a lever was deployed early, and the spaceship disintegrated. Earlier, an interview on in the branson said the ntsb indicated it wasnt a problem with the planes engines. Ahead asold us to push fast as possible with the building of the next spaceship. And to get testing the new spaceship as quickly as possible. We are confident that there is no fundamental flaw. Our team will be working 24 hours a day to get back on track. Thats a look at the top stories we are following on this monday. Republicans are poised to make gains in u. S. Midterm elections tomorrow. But with several races still too close to call, it is anyones guess as to whether the gop will win control of the senate. In the house, republicans appear likely to expand their majority. Candidatesekend, made their last appeals as thousands of activists and volunteer canvassers worked overtime to turn out supporters and persuade undecided voters. Lets get some analysis. Joining me from washington, phil mattingly. And in new york, lisa lair. Phil, how tight are some of these races . Does the Political Climate favor republicans . Seen showsng we have the Political Climate is definitely favoring republicans. That said, extremely close. You have more than a halfdozen senate seats, senate races right now that are within the margin of error in the polling. You have an outlier here are there, but without underscores that in races around the country, there hasnt been any break towards the big republican wave. Candidates havent had the ability to separate themselves over the last couple of weeks. We are going into Election Night those 60s,ns eye not knowing how close they will get to it. With the possibility of it may go way over it. Lisa, speaking of up in the air, talk to us about Election Night math. Republicans need to win succeeds tonight, or tomorrow night. Three of them are pretty much in the bag. South dakota, montana, west virginia. They need to win three more from a pool of about seven. There is a lot more pathways for them to get to 51 seats than there are with democrats who were on defense. They are feeling confident but not all that confident. There are a few strategists think that we will have an answer Election Night. This could go on well into the rest of the week. It could be even into next year. There could be a runoff in louisiana, which what happened until december. It runoff in georgia would be in january. Dont even get me started on alaska, where polls are close until 1 00 in the morning. You have to get ballots from tribal villages above the arctic circle. These results could be outstanding for quite some time. Have democrats been running away from president obama, in fear of being linked to the administration and its policies . Absolutely. You havent seen the president on the campaign trail. He was in the trail for one in michigan, a race that has moved into the safe category for democrats. Democrats and had a difficult time during this election cycle trying to walk the line. On the policy side of things, they mostly support with the Obama Administration has done. But the Political Climate is so negative for this administration that candidates have had no other option than to try distance themselves. I think what you are going to seo the last couple of days as republicans over and over again hammering that president barack obama is on the ballot, and democrats trying to get away from that. If rand paul has said, this election is a referendum on the president will mr. Obama and Congressional Democrats get credit for the economy . Get credit for an Unemployment Rate under 6 , and credit for growth that has been above 3 for four out of the past five quarters . You are right. People dont vote on absent numbers though. Voters vote on how they feel. Wages have been stagnant. Part of why the employment rate has dropped is that these people have stopped looking for work. In terms of how voters are experiencing their economic lives, they are not feeling all that positive. They are still feeling awfully anxious. That anxiety is what democrats are worried they bring with them to the polls. Yes in a sense. I use this in the past, but it seems germane now that president obama is almost like kryptonite to these folks. Mr. President , we will stick with local issues so you are not as on the ballot with us. Thats right. Republicans are trying to nationalize this race. Democrats are doing their hardest to try and make it about local issues. In north carolina, that state education funding. Arkansas its the farm bill. You can see where president obama has traveled, democrats dont want him. They want former president bill clinton. They areying saying dont come to alaska, or kentucky. That is a damning indictments. How will they be greeted by wall street . Campaignon where their money has been going over the last two years, the Republican Senate is what wall street is looking for. The money is heading in that direction. If you talk to Financial Service lobbyists and executives involved in the political sphere, they look forward to the possibility of having a chamber run by republicans on capitol hill. There is a possibility that on doddfrank a mother and changes they want. Theres a possibility there is an end to gridlock on capitol hill. In the large scheme of things, everyone on wall street is keenly aware that 2016 as the election that really matters. Just that in the town only the groundwork for the results that will lead to this next campaign. The entrees yet to come. We might as well have already started 2016. Phil mattingly and lisa lerer , thank you. When the pull start to close tomorrow, we start the Bloomberg Politics election all minor. Join Mark Halperin and John Heinemann for coverage of races across the u. S. , starting at 7 00 p. M. New york time, and going all my long. In my going to 2015 as well. 2020g up, the money conference. Stay with us, bottom line, continues in just a moment. 20 conferences0 on its way in las vegas. They are discussing the future of money and global payments. Willem marx went to sweden ahead of the event, where alternatives to cash payment are popping up, and may even push traditional money out. Where could we have that, it must be here . Shopping for snacks in stockholm has gotten simpler. In part, thats thanks to cashless Payment Systems like the one developed by free for no. A lot of people want to use cash. In sweden, its lower and lower. 55 of u. S. Consumer payments are made with cash. In sweden, that no is down to 41 . We are committed to a cashless system. We also have the network. We are sitting on the mobile data networks. We are up. His firm operates in 30 different countries. Here in sweden, its just one of several Companies Competing to replace cash. Is a strong i. T. Digital entrepreneurship phase in sweden now. Challenge the old Banking Industry by providing this new innovative mobile payment services. The old Banking Industry has reacted with six of swedens largest banks banning together in 2012 to build an instantaneous mobile payment platform. We have the development calls, customers adopting the new Technology Like mobile payments. Need, were wes could replace cash. The idea that banks could cooperate to kill off cash might be unthinkable elsewhere. In it is not so surprising sweden, where bills and coins recently constituted less than 3 of the countrys domestic product. Thats compared to an average across the euro area of almost 10 . Many Bank Branches here no longer carry hard currency. Homeless magazine vendors like jimmy use wireless card readers to accept credit and debit card payments. Certain Cell Phone Stores hold signs saying no cash accepted. In sweden, which printed europes first banknotes 350 years ago, these new technologies have not stop the central bank from designing your notes for 2015. This is a security feature that will be on all of them. She may control the countrys fiscal currency, but says she herself never carries cash. We are quite neutral, even though we are the ones who provide the society with cash. We dont necessarily say cash is important when you look at efficiency. Where ever fewer retail transactions are carried out in cash, and everyone has access to the internet, the new currency coming out next year may be the last one the swedes ever need. Willem marx, stockholm, sweden. Erik schatzker is at the 20 conference in las vegas. Mark, thank you very much. When you are at a checkout counter, or perhaps sitting at the back of a new york city taxicab, and you swipe your credit card through a payment, you probably dont pay much attention to who makes that terminal. Chances are good that it is made by verifone. Im sitting with the ceo. Welcome. There is enormous change taking place in the payments industry. Apple pay is only one example. It presents challenges, and present opportunity. How do they look from your perspective . I think moore is going to happen in the next year in payments than maybe is going to happen in their last decade. This industry is attracting incredible talent and a lot of resources. With that, nation, you will see more innovation. Wise is attracting so much talent and resources . Because there is so much money to be made . It is such a fundamental activity. That happensvity at tremendous scale. If you look at a company like verifone, we have 26 million terminals in the field in 150 countries. Our gateways, those the process online and mobile commerce transactions, do three to million transactions a month. Put together, we process half of the worlds consumer card payments. With that kind of scale, we really are very excited about what we can do with innovation. Like what . A creditt think of card terminal as a particularly innovative piece of equipment. How do you make it innovative . Thats a good point. We are so excited about what we saw in the cell phone industry. If you think about what apple did with the purpose built cell phone. They turned it into a computer, connect it to an app store, and we cant live a day without it. We are trying to do the same for merchants. We are trying to take that purpose built terminal, but does a really great job of accepting a card payment securely, and have that device held merchants to track new consumers and drive more sales by connecting it to and creatingcons, an allnew channel experience. That is a commerce innovation. One of the barriers to acceptance for apple pay is the fact that there arent that many terminals in this country and s. Ewhere that except nfc you can wave your phone over the terminal and it wirelessly communicates with the software inside. Next to come americas moving to chip and pin technology. Some people know it either three letter designation. Is that an opportunity or a competitive threat . Many of the companies are right here at money 20 20 that want a piece of that action. It is very lucrative for us. We have a High Percentage of the market in the united states. Upwards of 70 . Attack,hants are under in terms of security. Is a critically important thing for the united states. We are driving emv terminals. They often come with nfc chips. You are getting twoforone. You are getting the emv security, plus you are getting the ability to accept a tap and pay. That is really important. The key is that regardless of whether you were swiping a card or tapping a card or phone, it is important that all of that Payment Information gets encrypted. If you dont encrypt that information, it becomes vulnerable to hackers. So come october of next year, what percentage of your terminals in this country do you expect will have been upgraded to emv . As of today, 35 of the terminals are emv capable. This time next year, it will be well over 50 . But only 50 . What is the barrier . Why dont more merchants want to make this upgrade . Theres a cost they are going to have to bear for not upgrading. Just as theres a cost for upgrading. Without a doubt. There are segments of merchants. There are certain segments, to your one merchants, who are practically at 100 emv. They are huge merchants and big brands. As you get smaller and, takes longer. ,nd the small momandpops they may take a year to upgrade their terminals. What about the product that bypass point of sale terminals altogether . Example, caught fire in new york city, catching fire around the globe. Terminal required there. Verifone terminal required there. I think its a fantastic job. Payments is not an or business, its an and business. Are stillhat coins going pretty strong today. We dont see an ecosystem that enables commerce, merchants want to accept all forms of payment. If there is a merchant that doesnt want to use a terminal, thats fine. But thats business you dont get. But im in the gateway business as well. I do ecommerce, i do mobile commerce. We left the hardware only business years ago. About 40 of our revenues come from services today. Which are not hardware enabled. The important thing for us is if we want to help our merchants, not just get a card payments, but attract a new customer and grow sales. Thank you. The ceo of verifone is here with me in las vegas. Back to you in new york city. Erik schatzker, thank you. We check in with julie hyman, we will have an on the markets update in a moment. We go back to erik with the president of visa, coming up. Its 26 minutes after the hour, which means bloomberg is on the markets. Im julie hyman. Lets take a look at where stocks are trading. We have had an decisive mixed day. All three major averages are in the green. The s p and dow close to records on friday. Investors now weighing whether they want to keep buying, given those levels. You take a look at movers today, lets talk about as for a moment. Isoratory corp. Of america buying the medical Research Firm for 6. 1 billion, making a company that performs routine medical tests and does research for Drug Companies as well. A lot of consolidation in the Health Care Industry as of late. More the markets in 30 minutes. More bottom line, next. Welcome back to the second halfhour of bottom line. I am Mark Crumpton. More now from the money 2020 conference in las vegas. Market makers anger Erik Schatzker is joined now by the president of visa. Thank you very much, mark. One thing that everybody is figuring out here, no matter how much innovation that is taking place in the payments business it usually goes back to a credit card. Chances are that credit card is a visa. Great to see you. You taken part in any conversation in new york city, you know it will negatively end up in one of two places. Schools or real estate. Apple pay or bitcoin. Lets start with apple pay. Is there too much focus on apple pay . People call it a game changer. What has it changed . I thought you were going to say the yankees or the mets. It could be the giants or the jets. Apple pay gets a lot of attention because it is a new payment experience that apple has designed a great experience for. If you step back and understand build a platform called digital solutions. We call it tokenize asian tokenization. Apple pay is the first. We are working with issuers and partners in the us to bring to market a whole bunch of payment experiences. Apple controls the environment of their phones. Allows android platform merchants and partners to do things with a lot of flexibility that will be exciting for consumers. What is the net worth . As the name of visa on my credit card that you run a network. What we get out of all the different mobile Payment Solutions are the opportunity to add more value to those ,ransactions and displace cash which is how people pay for things around the world. How do you add value . Safe, reliable, simple ways for merchants to accept payment. You would be surprised how much cash is around there. Pay as well as a whole bunch of other platforms are going to give consumers an easy safe way to ma those payments. A number of companies do not want to play with apple. They formed an exchange to develop an alternative currency. His currency d. O. A. . I dont know what currency is. They get a lot of talk. I havent seen what the Value Proposition is and how it will work. What we believe is great consumer Value Propositions are going to win. We build our platforms to be a