Tick tock on debt clock, the Treasury Department theyre warning they will run out of money by this friday. Congress is split on what a deal should look like to get us there. John harwood with the latest. The house is preparing to vote on a bill tonight that has been adjusted from what house leaders described this morning. It was adjusted in ways that squeezed harry reid, democratic leader put more pressure on him. How did they do that . They provided a shorter extension of funding government when they reopened the government to september 15th. Thats what harry reid wanted, a very short one to negotiate changes in the sequester. They kept the february 7th date for the debt limit increase, which is also what harry reid okayed in his deal with mitch mcconnell. They dropped the delay in medical device tax, which is something democrats objected to. All those things are designed to put more pressure on reid and make it more difficult for reid to prevail with his deal with mitch mcconnell. On the other hand, still two provisions in there which are going to be impossible for democrats and the white house to accept. One of them would extend to not only members of congress and cabinet officials, members of the administration, but also their aides. The denial really pay cut, denial of employer subsidies for health care theyve been getting right now. It would take away that benefit. Secondly, it would strip treasury of the socalled extraordinary measures that they used when they get close to the debt limit. That is something that you cannot expect the Obama White House to sign off on. The plan actually moved closer to the democrats and made it more difficult for democrats to say no to. But theyre still going to say no in the state. Then the question is going to be, if it passes the house, and one member told me, i expect a substantial majority of republicans to vote for it, and some democrats are going to be afraid of appearing to protect their own subsidies, they expect to get some democratic votes as well, the senate will say no. Then the question is, do reid and mcconnell have a deal . Can they put that together quickly enough so they can get it back to the house and pass it . Ted cruz and mike lee, two senators who pushed the strategy of defunding obama care, do have in their hands right now the power to push us past the october 17th deadline if they choose to filibuster, but we dont know for certain they would do that, maria. John, thank you so much. We want reaction to this impact on wall street out of d. C. Joining me is Michele Perry higgins from california advisers, jim lowell from adviser investments. Good to see everyone. We feel like there is a reaction, a negative reaction from investors at this point. Up until now its been somewhat complacent. Michael, tell me how this plays out and what are the various scenarios with a deal, no deal, passing the debt limit . I think the u. S. Is not going to default on its debt. Its not going to have problems rolling over its debt and it will pay interest. I think this is political theater and theyll figure it out. They should have been doing it a month ago. Does that mean youre a buyer of stocks on the dip . For our equity fund, yeah, when we see opportunity, we think in the long term with the fed and the market. This keeps the fed in the game even longer, and as long as corporate earnings hold up, equities probably still have room to go from here. Okay. And Michele Perry higgins, whats your take on it . Same question. Yeah, i agree. I think this is a lot of political dysfunction going on right now. The market today being down 100 was quite impressive that it wasnt down more, so i still think the market is pricing in that we are going to see some sort of deal. But as ive said, its going to be the last minute and its really going to put some consumer lack of Consumer Confidence and lack of Business Confidence into sediment, and thats whats tough. We continue to see just declining sentiment around what will happen. What does that mean in terms of investing here . One of the most important thing for investors right now, and i sound like a broken record, but bonds and cash are critical portfolios right now. We see some downside risk, we need to have clients holding what i call a defensive barrier, which is their bonds and cash. Thats what got my clients through 2008. If we see some sort of dramatic downside risk, if theyre holding that defensive barrier, they will hopefully get through that without some sort of hitting the panic button, if you will. Jim lowell, your thoughts on this, what would you to want do right here in terms of investing in the face of all these uncertainties based on all the different scenarios that could play out . Well, listen, no question about the fact that the house and the senate ought not to be wearing suits and ties but should be wearing the tshirts that say, im with stupid. The reality is, i think a deal will be struck. As long as this market sells on fear not fundamentals, well be buyers, looks to the investors to step into the troubled water and pick out the bargains. The reality is the fundamentals continue to point toward slow growth, not no growth in the economy. I disagree with michelle. I think the consumer remains strong. I watch their spending, not what they say, but what they do. To me the consumer looks to be in reasonably good shape. How much of this uncertainty is weighing on things right now . We know the earning expectations wall street analysts have come down with their investments. Is this also impacting the consumer part of the industry . Have we already seen some of the damage already done, i guess is the short question . I believe we have seen a lot of the damage done. I think one of the key aspects to watch is not just consumers buying houses, not just consumers buying cars, but if they trickle back into retail, then i think we get the final sign post that the consumer, while everybody was writing them off, was basically staying the course. Obviously, if we see a default, a lot of things go out the win doeshgs even on a temporary basis, but thats a selling not buying opportunity. Appreciate your time today. Well see you soon. Earnings to look at intel and yahoo are out. Jon fortt, over to you. It looks like both companies have turned in solid quarters, but the devil will be in the guidance. We have it from intel already. Yahoo well have to wait for the call. Intel turns in a quarter 13. 48 billion in revenue. Slightly above expectations. 58 cents nongap eps, slightly better than the 55 cents expected. But the guide revenue wise a little weak, guiding to 13. 7 billion in revenue for q4, plus or minus a half a billion dollars. The street was looking for close to 14 billion there. Looking at segments. Pc client group, in line. Data center, a little bit light. Other intel architecture, again, just about in line. Gross margin was a little better than expected at 62. 4 versus 61. 1 expected. Guiding in q4 to 61 gross margin, just about in line. Moving on to yahoo revenue came in at 1. 089 billion, just about, again, in line with expectations. It looks like display revenue around 421 million extech. Slightly better than expectations. Ads sold up 1 . We havent seen that in quite a while from yahoo . Price per click down 7 . Search ads came in at 426 million, about in line with expectations. Paid clicks up 21 , but price per click down 4 . And well wait for the guide on the call. Thats going to be important because a big q4 for yahoo they expect a lot of the premium ad dollars to roll in. Thanks. Looking at stocks move higher in extended housrs, 4 on yahoo . With me is david garrity. Good to see you. Lets first talk about intel, which by the way the stock is trading higher in extended houshz. Whats your take on the numbers . I think intel is doing an excellent job of basically controlling their costs to preserve margins in the face of a somewhat weak environment. Obviously, the pc environments very, very poor. To the extent intels basically being efficient and taking costs out, maintains margins, it gives us a much better number on the bottom line than we expected. We think intel is arranged trading wise between 28 to 32. At the low end, the stock should be bought. You should buy it right here. Yahoo stock also trading higher. Whats your take on that quarter . Positive indications for yahoo is theyve seen an increase in terms of their average monthly audience. Up about 20 from about the summer of 2012. This is the first growth weve seen in a long time. Obviously, this kind of growth from the audience takes time to monetize but its moving in the right direction. We think management with Ceo Marissa Mayer on the call today will be talking basically what theyll do to improve that monetizati monetization. I would buy the stock here. What do you want to hear on these Conference Calls . Where do you think growth comes and where do you think the sticking points in terms of investors . For intel its a matter of saying, what can they do to be more of a factor in terms of mobile computing form factors, tablets and smartphones. Theyve not been there. They need to be there. Also see an excacceleration in terms of their server chip business, obviously geared toward cloud computing. Yahoo anything that can be given in terms of better indication on how to monetize their stake in alibaba. Its driven the stock all year long. Away from that its more a factor in talking about the growth in their own audience and the extent to which to capitalize on that by monetizing this bigger audience size. Thank you for your insight. Appreciate it. Well see you soon. Thank you. So, will the default crisis creeping closer to the edge, concerns are rising. Can they be quelled . Well talk with the president of the dallas Federal Reserve, richard fisher, about fed tapering, if all the d. C. Dysfunction will push it into next year . Robert wolf, head of obamas jobs council, hear what hes hearing from inside the white house and what could happen in the next 30 hours. Csx unloading earnings. Ill get instant reactions from the ceo. Youre watching the closing bell on cnbc. Can you live with a Government Shutdown. Even that gets resolved. But a debt ceiling really can have catastrophic results. Welcome back. With all of the tussles on the capitol hill between house and senate, what role the Federal Reserve could play in a possible del debt default has begun to be raised. A report by Capital Economics suggested the dp of treasury with the Federal Reserves help could avoid a default. For answers were joined by dallas Federal Reserve president richard fisher, joining me exclusively here. Thanks for joining us. Thanks. What role does the fed have in all of this . First of all, one of our responsibilities is to ensure financial stability, make sure theres notice financial chaos. We can provide stability. He can but we cant solve the problem. The problem is on the fiscal side. And this is up to our elected officials, elected branches of congress. We cannot fix this. What about money . What kind of transfer might take place . This is the talk and the buzz on wall street. Obviously, we have two manages, you know. Price stability, assist employment. If we have financial chaos we cant achieve either one of them. Very swre to use whatever tools have made available to us to maintain financial stability. But the motion weve seen in the treasury markets the last couple of hours, the last couple of days, were not the cause of that. That is this whole business of do they default, not default . They reach a solution or not a solution. And yet the Federal Reserve has the credibility we are a limited tool, maria. Okay. Again, we have the credibility but this is the problem. Were the only people with the credibility. Thank you. Youre absolutely right. Let me get your reaction to something leon cooperman said this morning on cnbc. He said its a lopsided policy but its falling on the fed. Lets listen to this. Weve had no real fiscal policy initiatives because the people in washington dont get along. Its the entire burden of dealing with the severe recession is its fallen on mr. Bernanke and hes created environment of zero Interest Rates, crushed the savers, pushed up the stock market. A ul small crosssection of the population own stocks. So the rich have gotten richer, like myself. What about that . I think he just copied one of my speeches. I mean, ive been seeing this for a long time. So, it has fallen on the fed . Its fallen on the fed but, again, as mr. Cooperman just said, the wealth effect that we have helped create by pushing yields down, by washing discount factor change in stock market, rising stocks, rising bond prices, has benefitted a few. It hasnt been pervasive. My concern is how effective it is in terms of two middle income for working class of america. Weve seen job destruction in the United States. Why . Because businesses cannot plan. A businesswoman or man cannot plan if theyre unsure the value of a Treasury Security can be maintained. Right. We know the uncertainties and the realities we face. At the same time, the taper story is out there. Whether or not well see the Federal Reserve start winding down the stimulus. At this moment in time, can you even have that conversation to wind down the stimulus know theres chaos going on in washington . You know i havent been in favor of this from the beginning. I know. Our last meeting we had, it was a close argument. I argued for dialing back a but. Others said, lets wait. Speaking personally, for myself own, the next meeting f theres still this chaos in the marketplace, i just cant see arguing to touch that mechanism right now. Thats my own view. I dont know what my other colleagues will argue. But it does throw a big wrench into the works here of what would otherwise be an eventual normalization Monetary Policy. We dont want to upset the boat here. I dont want to upset the boat. The boat is very rocky if these horribly rough seas from washington and fiscal authorities. This is so important from you because you have been one of the few voices at the fed who said, maybe this is more harm than good. Maybe we should start dialing it back. But even you, expecting to see taper, you would liked to have seen that last month, or earlier, youre saying, we cant do it now. What im saying is, for this next meeting, it will be hard for me to make the case. Now, well see what happens and what kind of deal is cut and what is promised, but, maria, i dont think the world believes us anymore. Weve gone through 17 episodes now of shutting down the government of six president s. Weve had last in november excuse me, august of 2011, we came within two days of default. We keep kicking the can down the road. They want to see real solutions. Heres what i worry about, if we lose our credibility, you cant bank on the fed alone, central bank, to maintain it. Each step we take of buying security, we get closer and closer to some position where we cant go any further. Where that is will be decided by committee. So you cannot count on the central bank. We will work to maintain stability. We want to prevent financial disorder. We have the capacity to do that. As far as normal Monetary Policy is concerned, its very hard to conduct under these circumstances fiscal chaos. I understand. So, is it fair to say, knowing what we know, that perhaps tapering becomes a 2014 affair, not eeb this year . I think its too early to say that. I gave you my own opinion about the next meeting, which is coming up this month. How about the Government Shutdown and the fact we have no Economic Data were full throttle with the fed, jammed on the brake and smashing the Instrument Panel and in midflight. We have 12 Federal Reserve banks. Ears to the ground, eyes on the scene, out in the field. We dont have zero data, but the data we have will now be influenced going forward, just the catchup period involved. So, theyve destroyed the Instrument Panel, our reading of whats going on with the economy. Youre talking to business people, a lot of people to get your hand youve got yo ear to the ground as well. What are you hearing . Can you tell us already how much damage has been done . No. Okay. In certain sectors, yes. For example, the Defense Department and those defense contractors and so on. But i think damage has been done by the lack of credibility we now have worldwide. Imagine trying to plan a oneyear forward on your payables and receivables for xyz company if youre not sure whats going to happen to the treasury market one week forward . I dont hear it yet. I expect to hear it. And it depends on how soon this is resolved. Heres the bottom line the rose lu resolution is not kicking the can down the road. Well have a solution, im convinced, on the default issue. It will be postponing some very tough decisions. What happens in the interim, do we actually plan for real changes in fiscal policy, tax, regulatory policy, job creation oriented or not, that will give us a sense of where the economy is likely to go. How do we get through this . This has been the case, the two sides inability to come together and really make decisions on anything. How do we get does everybody need to just get replaced . In congress. How do we get through this . Weve seen this in texas where we rose from ashes because we had smart policy after that. But let me bring it home to new york. You saw it in new york in the 1970s. Felix, governor kerry did a masterful job. After the market gave them the back of their hand. At some point you have to act and you have to lead. Again, this isnt our job at the central bank. This is the people we elect to guide the purse of the United States. At some point they just have to act. At some point i assume were getting closer and closer and closer because the markets are about to give us the back of their hand, or put it the other way, other world leaders, you saw christine lagarde, who looks very tan, but she says every head of state is worried about the United States. Can we lead . What the hell has happened to america . Do you blame everyone . Do you blame congress and the president . Do you blame all above im an equal opportunity barber. I dont blame Monetary Policy here, obviously. I dont think anybody blames Monetary Policy. I blame both sides of the asooil. Theyve been kicking the can down the road for a decade or more now. My grandchildren and your family and everybody else will suffer. We have no choice. And you need leadership from the president. We need leadership from everybody. After all, the Purse Strings are controlled by the congress. Dont forget that. Thats their constitutional duty. We need leadership from the executive, upper house and lower house, and on both sides of the aisle. Janet yellen appointed by nominated, rather, by president obama. Does the tone change in the fed very much . Tell me how you think things may change under her leadership. She has a good example. Ben has been a very good leader. We work democratically around the table and hes encouraged fullthroated discussion. I dont expect that to change under janet. Have you to look at janet no longer as an individual. Whether head of the San Francisco bank, qul vice chair and just a governor. Have you to look at her as chairman of the fmoc. The vice chair of the fmoc is head of the Federal Reserve in new york. Its really a question of how she leads the table. We have a lot of governors leaving, by the way. We have two spots empty now. Two spots empty, mr. Bernanke and mr. Powell. Four out of seven seats that will be empty. Well have to figure out what the mix is, so we have new actors coming on the scene, is my point. Sandy is leaving cleveland and will be replaced. Its a question of how she runs the committee. I dont expect a great deal of change. I think something you said a moment ago struck me and you said, well have to play catchup, given we dont have any Economic Data. Whats the timing on that . How long dont know. Depends on how long this lasts. We do have surveys, a lot of data we get from ism and others, we have beige book and people who talk all the president s do this. Our own surveys, manufacturing indices from the fed, whether its the dallas fed and empire state or the philly fed, whatever it may be. Theres data for us. Were not flying completely blind but its not helpful we cant get the official data that would help us make decisions. Of course. Thank you for your leadership. Congratulations to you. 20 years. Thank you. And youre only 29 years old. Remarkable. Amazing, isnt it . Well be listen to your very important speech this week at breakfast thursday. Well see all the headlines in the news. Richard fisher, good to see you again. Thank you very much. President of the dallas fed. Lets get to jon fortt. Yahoo guidance is out, disappointing. Up 5 after hours at one point. Looks like up a little less than 2 because the revenue guide for q4 is at about 1. 2 billion even at the midpoint. Street was looking for 1. 253. The street was looking for right around 4. 5, 4. 48, i believe. Just getting a little more into it. Nongap operating income for q4 looking to be at around 240 to 260 million. And the street was looking for 331 million. But then at the same time, the contribution from alibaba continues to be impressive over at yahoo so theyre continuing to take in money there, funding the turnaround Marissa Mayer is trying to complete. Thank you so much. As you can see, stock on the move. Csx earnings out a moment ago. Great window into the Global Economy. Michael ward will give us the inside track after this short break. Find out how he plans to grow the railroad giants earnings and the stock. [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. With my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. I know what youre thinking. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Which is. Pretty much what weve always stood for. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Congressional democrats. No news to report. Well give an update, if anything is lets listen in for a moment. Government workers have been precluded from serving those trying to get veteran benefits, those wanting to get on social security, those who want to go into our parks. We are two days from according to secretary of treasury, not being able to manage our debt and stay a zero risk nation. The extraneous things the republicans are talking about do not serve our nation. And what the leader and i are saying, is our members are prepared to cooperate fully in getting those Congressional Democrats giving a brief press conference to some reporters at the white house. Well bring you the latest and any headlines out of that that we get. Washington once again impacting wall street. Dominic chu running through the shakers. Walmart, losing ground. At its investor meeting they said they see revenues between 475 to 480 billion. Thats a bit less than some analyst expectations. Walmart shares could be moving on that. Well take a look at that stock throughout the session. Green mountain coffee falling. In a letter David Einhorn saying they added to short position in green mountain. So betting on further declines in the stock. Utilities, worst performing sector on the s p 500 today, as Interest Rates rise on fears of a debt deal not getting done. Pg e, ppl, exelon, all down on that news. Csx, rail giants, revenue volumes are coming in, pricing gain as part of that picture as well. The Railroad Company says it expects full year earnings to be up absolutely from full year levels and moving higher in afterhours trading. Over to you. Thank you so much, dom. Joining me to discuss those earnings, were joined by csx ceo michael ward. Thank you for joining us. Good afternoon, maria. Its my pleasure. Great. Before we get to the earning, let me ask you about the Current Situation in washington. Tell me how you think this plays out and has this impacted your decisionmaking in any way . It has not, although weve weve not seen impacts yet but clearly if this continues, its going to start affecting a consumer and Business Confidence. So, i think it is important that our elected leaders get together, as mr. Fisher was saying, to resolve fiscal issues to allow us to move forward. Where we see the economy, it looks like its at a good position to grow from this point, maria. All right. So, what would your backup plan i mean, how would you change something at the company in terms of your own planning, if, in fact, we do not have a deal going into october 17th, this thursday . I think well continue on the path were a capitalintense business, as you know. A longterm business. Were investing record capital this year of 2. 3 billion. Well continue to invest for the future because we think theres a great opportunity for rail to participate more and more in this economy. As you saw in our Third Quarter results, we grew carloads 3 and revenues 4 . And thats a little bit deceptive because our coal business was actually down 7 this quarter. If we exclude that, we grew our other businesses, our intermodal, which is encouraging. What are you seeing from the global story . Where was the growth and where are the challenges . Well, were seeing broad indicator that are encouraging 37 purchasing Managers Index is at 56. 3 . The highest its been in 2 1 2 years. Inventory levels are down at 43 . The lowest in that same period of time. Were seeing Housing Market rebounding from 780,000 starts last year to 9 50,000 this year. The predictions are 1. 1 million this year. Automotive to 16 million light vehicles and forecast for 14. 6 million. We have all indications markets are growing. Thats impact our metals business, forest business, intermodal and chemicals were all up strongly in the quarter. In term of pricing, what is your expectation given the changes weve seen in so many of these commodities . What we saw overall in the quarter was a 1 gain in pricing. Once again, if we exclude the coal we averaged about 3 on our portfolio businesses, which is consistent with what weve said, that we can get pricing above real inflation because our Service Product is the best its ever been, and our customers are appreciative of that, allowing us to grow and take prices up somewhat. Well leave it there. Good to have you on the program. Thanks much. Well see you soon. Are we in for a messy day in the markets tomorrow if washington did not get a deal to raise the debt ceiling . Bob pisani with robert wolf offering his view from 1600 pennsylvania avenue. Youre watching the closing bell on cnbc, first in business worldwide. A default would ripple through the Global Economy in a way you couldnt possibly understand. Please, lets not shoot ourselves in the foot. Wall street reacting to every Debt Ceiling Development out of washington today. Bob pisani, more of the same tomorrow . Lets hope not because it would be considerably worse. Lets take a look at the markets. Lets not quibble about a point or two. Four to one declining advancing stocks. This did not improve much. Moderate, no panic, but give it time. Didnt matter what sectors you were talking about, whether tech or Consumer Discretionary or industrial stocks like 3m, they were all to the weak side. Intel, we got their earnings trading up even though guidance was a bit below consensus. Margins were still pretty good. The call wasnt as bad as some people were afraid. Intel moving to the upside. Interest rates continuing to move up. Thats curious. We see that at the highs for the last few days on Interest Rates. Interest rate sensitive stocks were on the weak side. Home builders and utilities had a tough time. Even though the vix was not a huge move to the upside, if were here tomorrow with the nasty commentary we saw in the senate today from senator reid, this volatility index will be well north of 20 tomorrow, i can assure you. Stocks will have another rocky day at the close. Back to you. Bob, thank you so much. Thursday is the day of reckoning for the debt deal. Up next, robert wolf, economic adviser to the president on what the white house might do to save the day. Wait until you see how he sees the battle in washington playing out. At farmers we make you smarter about insurance, because what you dont know can hurt you. What if you didnt know that its smart to replace washingmachine hoses every five years . What if you didnt know that you might need extra coverage for more expensive items . And what if you didnt know that teen drivers are four times more likely to get into an accident . sup the more you know, the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum [ male announcer ] eeny, meeny, miny, go. More adventures await in the new sevenpassenger lexus gx. Lease the 2014 gx 460 for 499 a month for 27 months. See your lexus dealer. For 499 a month for 27 months. Anbe a name and not a number . Tor scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back. Breaking news out of washington. John harwood, take it away. Weve heard from House Republican aides that the house will vote tonight on the alternative proposal to reopen the government and raise the debt limit theyve been talking about all day and have come out with specifically. We think that vote will come quite late, perhaps 10 00 or 11 00 tonight. Not sure yet, because it has to go through the rules committee and a couple other steps. The House Republicans are describing their plan as, in effect, an amendment to what they call the emerging senate agreement. So, theyre casting it as a way to work with the senate agreement. If you favor what reid and mcconnell were trying to do in the senate, theres one reason you might hope for this house bill to pass tonight. Why is that . Because if it passes the house, then goes to the senate, it cannot be filibustered. Ted cruz, as you and i discussed earlier, ted cruz and mike lee right now if the bill originates in the senate, can filibuster it beyond october 17th. If it comes from the house, it cannot be filibustered. Its a privileged motion. That might be a route to swifter action and one of the keys as we get down to the end game of getting this done before the deadline. So, this is a clean vote, then, john, or does this come with, you know, we will reopen the government and extend the di debt ceiling if these things are done . The latter. Its not a clean bill. It has several providings, including some the administration could absolutely not accept, like restrictions on treasury secretarys inability to limit money. This is not going to become law in the form its proposed but by moving it they could expe died the process of the senate kicking it back and getting action by october 17th. Okay. At a minimum were dealing with this tomorrow. At a minimum. To the minimum, it goes right to the deadline. Thats a certainty. Thank you, john. Our next guest offers a unique view of how wall street views the dysfunction in washington and how the Obama Administration is handling the tough negotiations with congressional republicans. Joining us now in an exclusive is robert wolf, ceo of 32 advisers and the former chairman of ubs americas. Hes currently on the president s exports council which includes ceos of disney and boeing. Good to see you. Thanks to see you. Wow, what a day you decided to come on the show. Were seeing this certainty unset investors. Some declines in the equity markets. Selling government bonds in case we hit the deadline, like fidelity. How bad do you think this gets . Well, i think today showed that you had a tail on the bond auction, on treasury bills, which tells you people are concerned. Theres obviously going to be stock market volatility. I heard what john said, the idea that that bill going anywhere from the house is ridiculous. To not give the treasury extraordinary provisions when needed is ridiculous. Its never happened before. Theres no way that the treasury cannot handle not having extraordinary measures. I know half the country blames the republicans, half the country blames the dems, and both of them. Youve been an adviser to the president on on a number of fronts, including your current role sitting on the exports council. What advice do you want to give the president in terms of leading . Well, i think were kind of past partisan politics. To me we have to pass a clean resolution and a debt ceiling immediately, even if its for january february timetable. I like the idea of getting senator murray and congressman ryan together to work on the budget reform. Wait a second. We have breaking news right now. I need to you react to. Dominic chu from Rating Agency trouble has begun. I mean, maria, youre getting the first rumblings of whats happening in Credit Ratings market with regard to the debt crisis. Fitch rating put United States on a longterm ratings watch negative, so further downgrade in the future. Some thing they said is u. S. Authorities have not raised the federal debt ceiling in a timely matter before treasury exhausts extraordinary measures. Treasury would have limited capacity to make payments, it would be exposed to volatile revenue and expenditure flows. This is first tine, fitch, putting u. S. Credit rating on ratings watch negative. Thats a warning for some investors whether theres a possible downgrade in the future. Well bring you more details as they become available. The headline is ratings watch negative, a negative outlook has been applied to u. S. Rating. Negative revenue usually portends the next move is a downgrade. August 20 11 markets moved 15 to 20 . Im not predicting that because you have offset with quantitative easing going which is liquidity, liquidity, which fisher just said east not a fan of continuing. Its time we do something. Type is not our friend. Whether its one day, two days, one week, whatever it is, we need to move forward. You have sba loans not being done. That hets individuals, that hits business. Youre talking about Small Business administration Small Business administration is taking no new applications. You have situation with mortgage origination, you have the bills actually treasury bills, Interest Rates moving up, that impacts everyone. The exm bank, we fund our exports, 100 million. Weve gone past the partisan side. Youre saying weve already seen an impact to the economy. We will in a couple of weeks but business has stopped. Everyone thought this would happen for a couple of weeks but people felt good this weekend rally on thursday and 100point plus friday today were talking about ending treasury extraordinary measures, which is just silly. Talking about obama care stuff again. That debates been had. I think at the end of the day you need someone like ryan and murray together to pass that and Start Talking real budget reform, which is what everyones for. Thats where i want to get your insights for, the real budget reform. Once we get past this emergency moment, and weve got to get past it. Now youre hearing from ratings agency, perhaps this will put a fire under them to get something done, but how do you approach the issue of debt and how do you approach the issue that spending does need to come down. Do you agree with that, by the way . First of all, i definitely agree we have to have the debt come down. I look more at the deficit, which has shrunk dramatically. Everyone talks about debt but its debt as a percentage of gdp. Its a percentage of debt to gdp, which we need to be around 65 to be at aaa. We those make no sense. We are smarter as a country than to have plunt objects. Or Something Like medicare. And on the flip side we will have to make sure its revenues are involved. Do you think when revenue needs to be included how does revenue come into play . When we look at the deficit its receipts versus spending. Now its close to the four. We need Corporate Tax reform. Its clear that we have to rid loopholes. Do you think the president believes that . Absolutely. The president would be for cop a rat tax form. He would be for manufacturing a better rate to get manufacturing boosted. Remember, we talked about it two years ago. I want to show you the board here. The Dow Jones Futures are down 113 points. Its indicating a decline of about 113 points on the dough. This is all because of the news we just got from fitch. Putting the u. S. On negative watch. What do you do as an investor here . I think unfortunately, you had it down today and possibly down tomorrow. All of the sudden we are talking about, you know, markets are going to be ridiculously volatile. That put people on the sideline. I was listening to cnbc today. People are saying buying dips. Get to the sidelines, wait for a big dip. Buy on the dip. Long term were okay. Robert wolf joining us. Be up next to tell us how to prepare for it. Even when we cross our ts and dot our is, we still run into problems. Thats why Liberty Mutual insurance offers accident forgiveness if you qualify, and new car replacement standard with our auto policies. So call Liberty Mutual today. And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back. As we have been reporting Fitch Ratings agencies on negative watch. 30 seconds on the clock right now for each of our next guests to tell us what kind of an impact we might see. Tim, you have 30 seconds. What are you expecting tomorrow. I think you can actually change the name of the segment to tomorrow in five seconds. Because the only legitimate topic is really the debt ceiling negotiation. As we see, the ambiguity around the insolvency of the United States creates a lot of anxiety. They dont invest or inquire. Tomorrow you will be seeing there is the fed beige book coming out. It is really going to fuel the fire. All right. Looks like were in for a rough day. Thank you so much. We will see you soon. Stay with us on closing bell. Bny mellon combines Investment Management investment servicing, giving us unique insights which help us attract the industrys brightest minds who create powerful strategies for a countrys investments which are used to build new schools to build more bright minds. Invested in the world. Bny mellon. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. But at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. Your Financial Advisor should be thinking about your retirement at least as much as you do. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Welcome back. Its been a hectic afternoon. Just about 30 hours before the debt default deadline to recap the latest. The u. S. Credit rating is put on negative watch. House republicans are planning to vote tonight on a bill to reopen the government and lift the u. S. Debt ceiling and negotiations are still on hold as the senate is awaiting to see any details of the house bill. The market closed down and the futures are indicating a decline in the morning. I will see you tomorrow. This is fast money, americas post market show. Earnings full threottle. Stay tuned for updates from earnings calls that are starting right now. Ebay, buy it, sell it, street fight it