You are just singing and dancing to taylor swift. Shake it off. Its so catchy. I will play it during the show. Lets get you the top Global Business stories of the morning. The big prize in todays Midterm Election is who will end up in control of the senate. Republicans need to pick up six seats to recapture the chamber. Calls it agton post near certainty. We know that this election will send a clearcut message that the republican way is the way we will create jobs in this country. House,rama about the republicans are expected to add to their majority and you can watch it unfold right here on Bloomberg Television. Our election coverage begins at 5 p. M. Eastern with a special edition of with all due respect her cup we may stay on with and we may stay on all night long. More money was being spent on average ties them. We heard from the alibaba vicechairman and what he was asked if the company intends to grow through acquisition. We always want to add more users and more user engagement. Any acquisition that helps us create that, we are very interested in. 50 hares of alibaba are up since the companys ipo on september. Looking at oil, it is now falling to a threeyear low. The price of west texas intermediate is dropping below 76 per barrel before bouncing back. The saudi arabias cut the price of the oil they sell to u. S. Customers and oil is down more than 20 this year. U. S. Ing of lows, the budget deficit is at its lowest point. At the end of september, it was billion was over 800 dollars. Downeficit will shrink it according to the Congressional Budget Office before starting to grow again in 2016. Tinderfounder and ceo of is stepping down. A former female executive it used the chief marketing officer of Sexual Harassment and she said rad ignored her claims and those are the top headlines. Lets talk about what washington could look like tomorrow and into next year with two d. C. Veterans. Kent conrad was democratic senator from north dakota and retired in 2013 and judd gregg served as the republican senator for New Hampshire for 18 years before retiring in 2011 and both are former chairman of the Senate Budget committee and both were fairly adept at working across the aisles. Gentlemen, thank you for joining us. Have been discussing the possibility of optimism for washington. Think aboutt you the comparison to today and 1996. After the previous government shutdown, congress got together and work with resident clinton. Is that possible with this congress and senator conrad, let me start with you. Its possible. It would certainly be desirable. There are a lot of things we need to get done this country. I think there are places they conserving make progress. Immigration reform, tax reform, and the program to rebuild america to focus on infrastructure, both sides support that and i think those are areas that would be ripe for bipartisan cooperation. Senator greg, what do you think . Can i Republican Senate with ted party peopletea coming and actually get together and work with the president to govern and lead and get things done this country . I think its actually not possible. I think its likely that a Republican Congress will realize that the American People sent them there to get something done. America is very frustrated with the gridlock and ineffectiveness of the government generally. A new congress which is republican based will recognize that it has to participate in the governing process if its going to win the respect and support of the American People. Does theuestion is, president want to participate on the legislative side of the policy activity in washington . He has not done that the last couple of years. If you look at the president , he has to think about legacies. Regulation is a temporary form of governing. Hopefully, he can step in and participate in reaching agreement on some issues which senator conrad just outlined which are very durable issues very durable issues. Republicans trying to set the president from putting together a legacy . I dont think that will be the issue. I dont think this will be a congress of retribution. It will be a congress which wants to proceed forward in a number of areas. Therell be significant disagreements especially over obamacare and how is rolled out. There are also places where agreement can be reached. Saidxample, senator conrad tax reform, Energy Policy also and hopefully immigration. We need an immigration policy. Thefiscal policy along lines of simpson bowls. The budget deficit is shrunk 2009. of gdp from 10 in republicans do not want to talk about it why arent democrats taking a victory lap here . I think sometimes this president does not get the credit he deserves. It would go back to what he walked into, we had a country on the brink of a depression, two intractable wars and our dependence on Foreign Energy was back, thed if we look deficit is down dramatically as you just indicated, unemployment is down dramatically, deficits are down dramatically, Economic Growth has resumed. When he stepped in, the economy was actually shrinking at a rate of nine percent. Now it is growing at a rate of four percent. It is hard for people to feel good when we live in a world in which there is so much chaos whether it is isis or ebola or ukraine. We also have the fact that we are recovering from a financial crisis. Thatow from past analysis it usually takes 10 years to recover from a financial crisis. We are in the sixth year. It is really remarkable how well we are doing. People dont yet feel it. Its hard to take victory laps on anything when people are not feeling very good about their lives. Point taken, the disconnect between the falling budget deficit and the Unemployment Rate falling and the fact that people do not feel this economy has improved for them, thats certainly one big obstacle. What can the said the Senate Budget committee address that economic reality . I actually think they can do what we tried to do. We were almost successful which was to put together a process for reaching agreement on major deal which puts together a fiscal policy that will put the country on the right track and not allow us to grow at a rate that will burden our children. It ended up being called Simpson Bowles and is still viable. It controls the deficit and the debt by reducing spending significantly and by fundamentally reforming tax laws to generate more revenues. Thats a very doable events in the Budget Committee can be out on front on that and should be. Tax reform is one of the bright spots that American Voters have to look forward to. At least both sides want to do it. Why has congress historically not been able to conquer tax reform . [laughter] its hard. Indicated,greg just we were so close with Simpson Bowles. That is a good template. Congress on a bipartisan basis could pick it up and we could get america back on track. Already the deficit is down by 2 3 for what it was of the peaks of Good Progress has been made. Willroblem is is that it start going back up again in 2016 so there is a window of opportunity to get back on track. The way to do it is fundamental tax reform. We could actually lower tax rates and get more revenue if we clean up some of the garbage out of the tax system. It is unbelievable that people can send their money offshore and avoid paying taxes in this country. We know in the Cayman Islands there is a little place called udland house that is home to thousands of companies in a fivestory building. They are not doing business out of that building other than monkey business. There is a tremendous opportunity to clean up the tax code, get more revenue without a tax increase and to reform the entitlements which have to be done. I think that would engender a lot of confidence in the country if on a bipartisan basis congress and the president could act. Those are some hot button issues but thank you so much for your time. Former senators kent conrad and judd gregg. All day and all night here on Bloomberg Television for our election coverage. The polls will close and we will start the Bloomberg Politics all miter. Allill guide you through the big races starting at 7 00 p. M. Eastern and go throughout the evening. Definitely stay with us for that. That will be after you vote. And before surveillance begins. Coming up, we are just getting started. He has apple pay in his crosshairs and we will meet the guy who has powerful backers in the mobile payments business. Its not just television, the company you probably called Home Shopping network has gone digital. Well talk to the ceo Mindy Grossman about the way she is reaching her customers. Whether its apple pay, square were others there is a revolution going on in how we use our money. Thousands of people are in las vegas to examine that issue at the money 20 20 conference. Erik schatzker, take it away. I am with the ceo of the Merchant Customer Exchange which is a coalition of retailers trying to take control of mobile payments with currentc. Will be a competitor to apple pay but also to Google Wallet and other digital wallets. Good morning. Thank you, nice to be here. Good to have you. Lets make it clear what is the problem . Why is it the retailers dont want to let customers pay however they want . Togetherrchants came three years ago to create a solution for consumers that would bring more value to consumers. They focused on may the commitment to one another that they would focus on building currency as their First Priority a miss with their doing. Abouttc is more than payments, it brings value in terms overseas, coupons, offers to consumers when the shop and they pay. Its more than just about payments. Its an ecosystem that will require sex several successful players and currentc intensity one of those. But consumers are pretty happy paying with whatever happens to be in their pocket. Theyre happy paying with cash if they choose or credit or debit. They are happy paying if they are iphone users and decide to turn on apple pay. The list goes on. Case that to improve the experience for the consumer but the consumer is not really asking for a new experience, it is he . There is not a problem for consumers and payments. There is no consumer problem. Theres a problem for merchants with payments. But there is a real problem with consumers getting more value out of the shopping experience. If you have to fumble for coupons or loyalty cards, you dont know whether you are getting the credit and value from the consumers that the merchants want to give you. For us, its about bringing value together and more than payments. Thats what were focused on. Consumers want more value they also want to be able to use this on all sorts of phones, not just one phone. , itsur solution available to virtually every American Consumer, over 92 can use our solution. When . 2015 and we have launched with some merchants we are quietly launching. Were ready to go nationwide middle of next year. Is that january, february, march . Our competitors would like to know the exact date and for the sake of our conversation, i will not real the reveal the exact day. But middle of next year, many of our merchants will be launched nationwide. . What you think of apple pay so far apple is a Great Company. I was inspired by apple as an entrepreneur 30 years ago. Theyre one of the worlds most admired companies but theyre not the only ones that can innovate. Retailers innovate and if you look at what is happening in the mobile commerce space, i think hats have to go up to starbucks who has been the inspiration for many of us. The merchant combines payments and loyalty at the pointofsale. Apple is a Great Company and we admire them. Apple has made a success of near field to medications combining it with the biometric sensor and fingerprint. Are you sticking with these qr codes . Weeks since two apple pay launched. We will see how that story plays out. I will presume it to be successful. Starbucks has been on the market five years with qr codes and we can do more than payments. You can bring loyalty together with payment. Viable ande a compelling way to go to market. We are technology agnostic. Its about solving consumer problems, not about whether you choose qr codes or otherwise. If you turn on nfc, that means people could use apple pay. Thats right. Explained the exclusivity provision to me. Doesnt mean that eventually retailers will be able to accept other forms of mobile payment . It is something the merchants agree to themselves when they formed mcx. It was an agreement that we will stick together and focus money and time and effort to build a compelling consumer solution. Beis shortlived and it will gone in a matter of months, not years. What is that mean . What does that mean . By middle of next year . Your arithmetic is about right. So that means the merchants can decide which one they want to use . From my perspective, we when in the marketplace by having an affirmative value proposition. Its like a sixmonth window. Its a short window, yes. What happens if a merchant chooses to break ranks now . Its their choice. If they do, we still welcome them and consider them part of mcx but we will not put our priority to get them launched now. Merchantscus on the that have kept the commitment. Its really just you end up at the bottom of the list, not a matter of fines or penalties . Thats correct. It has been reported that we would find merchants or could or customers and thats preposterous. You cannot build a great business by finding customers. I would never consider such a thing. That would be backwards. There are no fines. Thank you so much and its a pleasure staying with you at 20 20. People frame it as a battle but its a battle for the future of the mobile payment. Thank you so much. We will see you again in about 15 minutes when we hear from the man at mastercard in charge of new forms of payment. Market makers will be back in two minutes. Its time for bloomberg to go on the markets. The real action is in the commodity market. Crude oil is tumbling 2. 3 lower , below 77 per barrel. This comes after saudi arabia cut prices for experts to u. S. Customers. There a surprise because had been speculation that it would reduce output. Of the oil guys we have on have said it will not go this low. And yet it has. It was great to hear mark fibers say this is aber reflection of the global economy. Equity,ook at one Discovery Communications cutting its fullyear revenue forecast. That is brought the stock down about nine percent. Apparently, theres also some honey booboo action . Apparently, it is taking a right down. I have not seen it but its not just that but also of both sons of guns. It is kind of the overweight American Family . That part of it but i have not watched it. Its not available anymore. I will google it. Coming up, holidays on hsn and we will get an idea of what is hot and not from the ceo, Mindy Grossman. Welcome to market makers. Vegas so hen las has adopted west coast casual. Everyone thinks this is the way to go but frankly, it looks like he got off the flight and they misplaced his luggage. When you are at work, shouldnt you wear a tie . Matt miller still wears a tie. About it at eric the money 20 20 conference in las vegas. None of the people he has interviewed is wearing a tie. I just need to roll the way my guest role. Evan mclachlan from mastercard is not wearing a tie so why should i . I feel quite comfortable. Good morning. Good morning. You are the chief emerging payments officer at mastercard which is an interesting title. You have been experimenting with Payment Technology for some time. Absolutely. What have you learned . One of the most important things for us as we look forward consumers are moving their lies to connect to their lives to connected devices. Its how we interact with each other and entertain ourselves and also changing how we transact. Every device you have will be a commerce device. We are building the capability to allow you to take advantage of that. What kinds of things have you exterminated with . A we Just Announced yesterday company we are working with back and take a look at your ekg and use it for payment security. One of our big goals is to make sure that everything we do in moving to digital can be as or more secure than anything we can do in the physical world. Is that the future . People seem quite comfortable with the fingerprint sensor on the iphone and there are other Biometric Technologies like scanners that read your eyes, your voice. You guys of experiments with that and facial recognition. Is that a combination of all those technologies . There will not be one winner. It is a combination of all of that. What we need to know is that you are you and youve authorize that transaction. Anything which can do that credibly, we can take advantage of to make it more secure. Whether it is a physical biometric coming off of you with more information about your Shopping Patterns in who you are, all of those we used to make the system more secure. What does the mobile payment look like five years from now . I think mobile payment will not necessarily simply be on your smart phone. As you look out a few years, when youve got mobile, you did not throw out your pc. You bought a tablet a few years later. As we look at connected homes and cars, what we are seeing is a greater disaggregation of all the places you will shop and buy and mastercard will be incorporated into all of that. Do you believe in the prospects of the persistent identity idea that you can walk around and things will happen . You will walk out of a store with an item in your knapsack and you will pay for it without even t