>> i'm mark crumpton. this is "bottom line," the intersection of business and economics with a mainstream perspective. to viewers here in the united states, and those joining us from around the world, welcome. we have full coverage of stocks and stories making headlines on this monday. julie hyman tracks equities forest in today's on the markets update. we will have a reporter roundtable just one day before the midterm elections. and erik schatzker will join us

from las vegas, with two big-name 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 presidents of first one-on-one session with chair yellen from her senate confirmation. the white house says the focus is on the long-term 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 sport-utility 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 branson's 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 wasn't a problem with the plane's 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. >> that's 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 anyone's 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. let's 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 half-dozen 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 hasn't been any break towards the big republican wave. candidates haven't had the ability to separate themselves over the last couple of weeks. we are going into election night those 60's,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. don't 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 haven't 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 don't 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. >> that's 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 it's the farm bill. you can see where president obama has traveled, democrats don't want him. they want former president bill clinton. -- they areying saying don't 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 dodd-frank a mother and changes they want. there's 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 entrées 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, that's thanks to

cashless payment systems like the one developed by free for no. >> a lot of people want to use cash. in sweden, it's 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, it's 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 sweden's 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 country's domestic product. that's 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 europe's 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 country's 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 don't 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 don't pay much attention to who makes that terminal. chances are good that it is made by verifone. i'm 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 world's 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? >> that's 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 can't 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 all-new channel experience. that is a commerce innovation. >> one of the barriers to acceptance for apple pay is the fact that there aren't 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 america's 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 two-for-one. 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 don't 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 don't more merchants want to make this upgrade? there's a cost they are going to have to bear for not upgrading. just as there's 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 mom-and-pop's 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 it's a fantastic job. payments is not an or business, it's an and business. are stillhat coins

going pretty strong today. we don't see an ecosystem that enables commerce, merchants want to accept all forms of payment. if there is a merchant that doesn't want to use a terminal, that's fine. >> but that's business you don't get. >> but i'm in the gateway business as well. i do e-commerce, 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. ♪

>> it's 26 minutes after the hour, which means bloomberg is on the markets. i'm julie hyman. let's 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 mover's today, let's 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 half-hour 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. let's 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 don't know what currency is. they get a lot of talk. i haven't 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 able to work with our partners to do exactly that, burning new digital mobile solutions to markets. happens, i what

can't say because i do not know how it will work. >> people are talking about andrnatives to apple pay the guy from visa doesn't know what it looks like. is that only because credit cards are not part of that equation? what theye working on are working on and they have not shared it with us. apple pay has shown that if you create a simple, intuitive, safe opportunity for a customer to make a payment, they are going to get excited about it. of the reason the merchants do not like apple pay is because they are trying to in the some of the value relationships with the customers they have lost. that relationship resides in the bank. the bank owns the relationship with the customer, runs the loyalty programs. do you see a world in which the merchant is able to recover some

of the value in that relationship? a bunch ofe successful merchants that are very excited about apple pay. promoted,ce it, they they see it as a way to build a stronger link to their customers. our approach is to build a set of tools and capabilities that allow us to work with our to bring great experience is to market for consumers. it safe, simple, intuitive, it will allow us to give consumers the option to pay for things. >> safety is important. apple pay is one solution that offers security. what is the said doing with mastercard? what are they doing toh amex, with discover

raise the level of security standards in the payments industry. >> a very important topic for us. we have come together with and a broad group of different merchants big and , tol, device manufacturers collectively put out a roadmap on how we are going to continue to make progress and security in the u.s.. >> those answers are not in the near future. >> i big to differ. this group that represents a lot of what happens in the u.s. has now put out a press release. by the end of next year we will have half a billion chip cards in the u.s.. merchant50% of terminals will accept it. why not collaborate with all of the card issuing company's?

>> we collaborate with networks all the time. ifwouldn't it be simple there was one uniform set of standards? >> tokenization is a good we got. a year ago together with mastercard and american express. we figured out a common standard so it will work in a safe secure way for mobile digital transactions. we worked on that as an industry. >> i may as well ask you, could you care less about bitcoin? >> i come into work every day -- everyday paranoid about everything. bitcoin is in the category where it is unclear how it will be false. we study it hard. >> thank you very much.

he is the president of visa. i will send it back to new york. >> thank you so much. coming up we will take a look at president obama's agenda as we look for a shift in congress. crude oil is below $80 per barrel for the first time since june of 2012. ♪

>> it is time for the latin america report. president fernandez says bacteria entered the blood and will require four days of interview -- of intravenous treatment. he disappeared for three months to remove a blood clot room --

blood clot close to her brain. centralomes after the bank boosted rates for the first time since april. analysts raised their estimate 12% from 11.5%. raisedakers unexpectedly a key interest rate last week in an effort to curb inflation still hovering above the government set target. that is your report for this monday. the electionsin tomorrow, several midterm elections remain too close to call. poised to make you speed the senate majority is at stake. trish regan joins me now with what could happen after the midterm elections. let's start with the wall street influence. the keystone pipeline could be at stake. what do wall street investors want to see after the elections

tomorrow? think wall street would like to see the movement when it comes to both sides being willing to work together. problem been the big throughout all of the years. we have not seen republicans and democrats working together to get anything done. the fed has had to go this alone. they have been pushed in a corner where they had no choice. no one else was there really helping. from wall street perspective, without getting overly political, people would like to see both sides work together. they are willing to work with republicans to get things done. think about the lame duck president. what does that mean for the administration? buildn think back to

ally he didn't have a choice. tomorrow what of the close races are going to be in the home state. early, wels close will have a good indication on whether or not republicans are making some ground. jeanne shaheen has been there for many years area they painted scott around as this carpetbagger coming from massachusetts. this is a guy who has had a many yearshere for and lived the first three years of his life in there. it will be very close predict it could be a good indication on how things will shape up over all. fodor is going to be

joining so you can anticipate some reports from him. we are going to talk to him about the market, the economy, janet yellen, gold prices, and midterm elections. , we will see you at the top of the hour. when bottom line continues, herbalife stock is down 30% so far this year. we are looking at what investors are watching. johnson joins me from san francisco. we will be back in a moment.

them herbalife will be reporting third-quarter earnings after the bell. cory johnson joins me from san francisco. this is a company that on friday agreed to pay 15 million dollars and settle a lawsuit by former california distributor and which

last quarter missed earnings expectations for the first time since 2008. what are analysts expecting? the settlement, they pay $15 million to settle this class action lawsuit. of theirit is with one own people. one of their own sales guys said you are running a pyramid scheme and i have to pay so much to guys who are trying to sell this kind of product. that guy was willing to settle his suit. a $15 million payment where the company admitted no wrongdoing saw a lead to a in the stock price. money well spent if you are trying to get the share price up. i think the way this story has been told so much is that wall street titans go head-to-head. bill ackman versus carl icahn.

nobody is focusing on the object of their desire and how the company is performing. >> allegations that herbalife there is an official rate of currency exchange. eight 10-1 exchange rate. the other is 50-1. on the street it is 50-1. using thehas been most liberal, it is not a function of truth. the chief financial officer of twoalife asked about those very different official rates of 10-1, compared 50-1.

most companies have non--- have not gone to see it. we have actually had more dollars received over the last 12 months. it is possible that the facts and circumstances change. these two different rates of exchange, they are going with the cheaper one that makes their numbers look a lot better. they may have to change things going forward. companies change it. companies like avon, like brinks. if we use the principle we are using now, this is what our prior numbers would have looked like. >> we have 30 seconds left.

the settlements of class actions, it is not going to end legal troubles. what is this going to mean for the company if it is burning through cash to deal with litigation? >> the company is spending a lot of money to fend off attacks. it has in the attack line item on their adjusted income statement. fundamentally this is a business that has been slowing down dramatically. that this the thing they are going to have to fix. it suggests there are some problems. >> cory johnson joining us from san francisco. we are going to have more on the herbalife story after the bell. another check on the market on the other side of the break. bottom line continues in just a moment.

who who is >> get the latest headlines at

the top of the hour on bloomberg radio and streaming on your tablet and bloomberg.com. i am mark crumpton in new york, thank you so much for joining us read on the markets is next. -- joining us. on the markets is next. >> bloomberg television's on the markets. let's take a look at where stocks are trading. like the s&p -- not close at another record. we have seen stocks bouncing around.

very indecisive today. utilities have been gaining along with technology. we have seen telecom declining. virgin america, the airline partially owned by richard branson, is ready to go public. leslie covers the ipo market for us. interesting timing here for this going on. a coin to dental timing as the virgin galactic accident happened. >> this was set in stone after the virgin galactic disaster happened. also the selloff to the experience recently with concerns of ebola. this is according to sources on the deal. they know it is domestic air

travel. the ebola concerned shouldn't impact them. they decided to go for the fact that the earnings were stronger and their oil prices would contribute to additional earnings in the future. it could be up to a $1 billion ipo. details one us some the range we are talking about and how big it can value the company? at just undering $1 billion at the high-end of the range. there are 60 venture capital atked private company valued $1 billion. avone surface of it it is ready reasonable valuation. that high-end range is still a discount to other u.s. airlines. that is necessary to encourage investors to buy shares of an ipo.

you mentioned the product the -- the profitability of virgin america. --t about some of the air some of the other airlines? >> they are absolutely a smaller carrier. they only go to big cities in the u.s.. to maintain that growth to make sure they get to that profitability. at is been their strategy all along. contain that growth so they reach profitable levels. they said they can use some of the proceeds to invest in more airplane leases and more travels. , what is the timing we are looking at the? at?ooking >> it is set to price on november 11, next week. it will start trading the next day, which is typically how ipos

work in the u.s.. sooner or later if the market happens to surprise them. >> talk to us about >> welcome to the most important hour of the session. i'm trish regan and this is "street smart." down to earnings right now from aig and herbalife. me is outspoken investor marc faber. a quick look at the market,