Winners and losers. Sue is at the nyse as usual. Good to see you. Stoxx coming off of their lows on news of a meeting of key congressional leaders on both sides. Right now we are marginally positive by 4. 5 points on the Dow Jones Industrial average. The nasdaq continues to decline. It was the biggest percentage loser yesterday and its on pace for that same kind of record today. The s p is down. 2 of a percent. Amman javers has the latest on this marketmoving event. This is a possibly hopeful situation here on capitol hill. That has not seen a lot of hopeful situations in recent days. The news is that we had a bipartisan meeting of the top four leaders of the house of representatives just this morning, so thats nancy pelosi, steny hoyer on the democratic side with Speaker John Boehner and eric cantor, the republican leader. All four of them in a room at the same time talking to each other. What we dont know here is what was said in that room. Were trying to find out more information about whether theres some active negotiations going on or just Touching Base this morning. Guys, i also want to tell you a little bit of ground shifting here maybe politically as well. The coke brothers a Company Controlled by them, the billionaire conservative campaign donors, sent a letter to capitol hill in which they emphasized that they dont necessarily support using obama care to defund the government or defunding the government to defund obama care. They say they support shutting down obama care on its merits but not necessarily as a tactic here in terms of shutting down the government. Little wiggle room on the conservative side and this possibly encouraging meeting pfl well have to find out more detail about what was said. Tyler and sioue. Thank you very much, eamon reporting from the capitol with seven days, ten hours, 57 minutes until american will allegedly hit its debt limit. Can the white house and Congress Come together and get a deal done before them . A number of top leaders and ceos on cnbc saying to get it done now. You were elected to lead the country on all issues. All of the people in the country, not just your constituents. We need to basically listen to the will of the people, we need to stop fighting yesterdays elections, and we need to move on to solving tomorrows problems. Its an anathema to anybody in business where you make the stakes the end of the game. Where you put the whole institution at risk, its just absurd and frankly, shame on congress. Thank god i never got in politics. That is that is the worst business that you could possibly get involved in. All right. How can the democrats and republicans get a deal done . Joining us is Harvard BusinessSchool Professor and the renowned negotiator depak mallhowtra author of two books on dispute resolution. One is i moved your cheese and the other is negotiations genius. With us chris and republican strategist joe watkins. Lets do this exercise, depak, this way. Im going to ask chris and joe to tell you what they need in a deal and what it they might be willing to yield in a deal, and then you see how you can bridge the gap. Lets flip a coin. One or two is behind my back, chris, you call it. Is it a one or two. I say one. Its a two. Who would like to go first. Joe you have the choice. I would be delighted to go first. Go ahead. What do you need . A deal and be willing to yield . What i need in a deal is discussion. I need the chance to talk. I need to talk with democrats. I need to talk with the president of the united states. I need for the president to talk with me and with my colleagues to get this done. This is not rocket science. This is not a deal that cant get done. The president could very easily call together, call for a Super Committee made up of democrats and republicans, to help solve this issue and say that committee will deal with all the issues that were talking about, the republicans care about, whether entitlements, which comes under the broad framework of spending, or revenue or taxes in other words, or annual deficit. All those issue lumped in for the Super Committee to dial with. What would you be willing to yield . Lets talk. I would be willing to agree to a shortterm deal to open the government and likewise to raise the debt ceiling. All right. So that gives everybody wiggle room. Conversation and willingness to open the government and raise the debt ceiling. That sounds like some movement there. Chris, your turn, what do you feed in a deal and what do you say youre willing to give . What i think you need in a deal is the republicans to agree to the amount that they initially agreed to in terms of keeping the government open and funded which is actually the republican amount. Its the amount that the democrats actually compromised on. Democrats wanted over a trillion. Democrats republicans wanted 980. That was the greed aagreed amount until they added obama care as a stipulation to continuing to run the government. I think you need to take obama care off the table, on every notion, whether defunding, whether its delaying, that is not thats a nonstarter. I think at this point, considering how much time there is in terms of, you know, a big deal, listen, i think the president is open to some serious negotiations about dealing with the longterm debt and fiscal sheet. What you need is for the republicans to take the defunding or dismantling of obama care off the table as it regards the Government Shutdown and the debt limit. What would you be willing to yield . I think we would be willing to yield what we already yield, what we already yielded the amount to keep the government running. Now in terms of the debt ceiling negotiation, listen, i think the president and democrats are open to talking about it, but how do you talk about it when you have seven days to go . The reality here is, youve got to extend the game. If youre playing game teary and facing a suboptimal outcome the only outcome that makes sense is extend the game. You have three months maybe do an extension and negotiate during that interim. Depak, its over to you. Youve heard both sides say what they want, what they might be willing to yield, how would you bridge these gaps . Well, tyler, i think what weve heard from chris and joe is that the outlines of the deal is actually pretty clear. The problem right now isnt that we cant get a deal done. I agree with joe on that. I think this is not rocket science. Were at a point where a deal can and should get done. The problem the tactics used recently, although were seeing some change in that. Fundamentally whats going to get this deal done is president obama is going to have to give Speaker Boehner some facesaving way of backing down from the initial threats that were made against obama care and other things where the democrats and the president feel theres hostage taking going on. But the president does need to give some facesaving way for Speaker Boehner to back down. In the current conversations going on and what we heard from joe that facesaving tactic or concession may simply be some version of a Super Committee or the framework for talks or a negotiation about negotiations, et cetera. Tackically the problem is were having this conversation through the media. I think and what were doing right now adds to that in a sense. When the president offers a concession through the media, when thats the channel, Speaker Boehner has no choice but to reject that offering. It looks like Speaker Boehner is saying yes to something president obama said and is going to lose ledverage that wa. They need to stop talking through the media and get inside a room for one day, two days, three days and hash it out so when they emerge with an idea its an idea that president obama and Speaker Boehner jointly came up with. I think that the ideas that were talking about now are good ones but its not just a congressional leadership that needs to be in a room together. I think its going to have to be president obama and Speaker Boehner and president obama giving Speaker Boehner something he can take outside the room that allows Speaker Boehner to declare some level of victory when he offers a clean cr or when he offers to extend the debt ceiling for a certain amount of time. Im loving this conversation. We dont have more time, guys, to go into it. Depak, let me ask one other question to you. When i heard joe mention and ive seen in the papers the idea of a Super Committee, well raise the debt ceiling a little bit and reopen the government set up a Super Committee, we did that before and we didnt really get much progress as a result of that. It failed, the Super Committee. Why would you go back, depak, to that tactic in this context . Well, i think its very easy to criticize the Super Committee approach because it has failed in the past but the question always is what is the alternative . If somebody has a better idea i think everybody is all for it. Right now the only thing we can count on is to keep talking behind closed doors. So the two things that make it a little bit more hopeful are the following. One, is they can commit to some sort of a de tant so theyre having the conversation behind closed doors and the second piece now that republicans have tried this strategy of trying to defund obama care, trying to take it to the last minute, and have seen that this time president obama did not cave and did not make concessions on the basis of it, all of a sudden it makes it more likely people will negotiate on both sides in good faith because they now are even more clear that there are no other alternatives, these games and shen she nan begans that put the American People at risk are not going to work and not going to work politically hopefully as we go forward. I hope we can continue this, have the three of you back as we draw closer to the deadline because it really seems absolutely. Seems like a really fun and productive conversation. What i just heard you say, depak, is if the best you can do is kind of kick the ball down the road and set up a Super Committee, if the best you can do is buy time, buy time. I mean that seems to be what you said. Thats right. Thank you very much for coming on today. We appreciate your thoughts. Sure. Thank you. Sue . Good conversation, ty. Lets go to chicago now. Breaking news, the tenyear up for auction, how did they do this time around, rick . The great on the de mand at 1 00 eastern is a c, highly average. Talking about nineyear tenmonth securities auctioned on august 7th, the last reopening. The yield at auction, 2. 657. Which is right in between but leaning more towards the offer side. The one issue market which was 266. 5, offered at 265. 5. 258, 2. 58 bid to cover below 2. 75 and the directs and indirects were close to tenauction average. Tomorrow the 30 year e and were done for the supply for the week. Sue, all yours. Thanks, rick. Ill take it. What happened to stocks the last time there was almost a default . And more importantly, perhaps, what can you the investor learn from that. Dominic chu has answers. Some investors may have the summer of 2011 fresh in their memories. A lot of moving part, debt ceiling debate, eventual downgrade of americas credit rating, a spread of the european debt crisis, fed meeting, all kinds of things. On monday, august 8, 2011, the dow fell by 635 points or 5. 5 . That was the day after the debt got downgraded, a friday event to monday. Nearly 1800 points were shed from the dow, about 14 of its value in the two weeks leading up to that downgrade monday. Now heres where investors were creating the most action. In terms of the stock market, defensive stocks performed better on a relative basis. Theyre the ones that arent as depend on then the health of the economy. The best performing sectors in the s p 500 on a yeartodate basis utilities and consumer staples. Those were the only ones with gains on the year at that time. Really in the market. Now the single worst performing sector through midaugust 2011 the financials, down 24 . Worthy of note, one hot investment worth noting is gold trade. It was up 30 year to date through two weeks after the debt downgrade but for perspective, sioux, gold was 1850 back then. Today its only around 1300. Back over to you. Yeah. Thats very important point. Thank you very much. How do you play the debt limit deadline . Ken is here, cnbc contributors, jeff kill berg, jim are in chicago. Were talking putting in protection down here on the floor of the new york stock exchange. So put it in perspective for me, kenny, how do you protect yourself some. Depends on who you are. Longterm person the last thing you need to do is panic about it. We saw what happeneds last time. Yes, we sold off but rallied strongly. Typically what happens is when the retail public starts to panic they panic at the wrong time. So, i would sit tight, as long as you have the right portfolio on any weakness you have to add to it. Worried about it, look at the portfolio, take money out of some of the better performing names and keep it over here on the side waiting for the pullback. If you think its going to happen. Jeff killberg, what would you do in the instance that we run right up to that default deadline . Well, sue, we specialize in trading futures. When i was in engle cliffs we talked about shorting the market. That etf allows you to short the s p 500. We like being long. As you know theres no way to buy that spot volatilely index price. Jimmy explains why. Our model allows us to capture 30 spike in volatility allows us to deflect any downside. What i said before we were talking the vxx is the instrument i sometimes use. People complain about it because it has a decay element. Talking about a shortterm time period, matter of weeks here, its not a bad way to pro ekts it yourself. I also hold on. I dont think were going to default but take it right to the october 31st deadline, not the october 17th deadline. I should shock put him into the green room. No. Hes right about the default. This is the sequel, sue. It is what it is. It is what it is. It has decay and yes, its a sucker bet for the long term. Shortterm play its not awful. Sure. The strategies for traders kenny is talking about the investor. Thats the difference in this discussion. Listen thats great strategy if youre the trader actively. If youre the retail person you know, that stuff can get confusing as you are well aware, right. Sure. Trying to create not panic amongst the Retail Investor and the bigger view. Kenny, how about this, the market is starting to price in the potential for a default. And the stock market could fall precipitously. Im not ready to buy a break in the s p if im a longterm investor. If im a longterm investor i dont mind paying 30 ticks higher. Look at it as a compus, we saw 2020 right now nearly so we saw equities move up much higher. Use it as a compass and dont trade it like he does. Okay. You guys have got to get your own cable show. Well just go. I know you will. So will he. There you go. Thanks guys, very much. New dow member nike and former dow member hewlettpackard meeting with analysts today. Hp speaking to the upside by 5. 3 . Jane wells at nike headquarters and john fortt in san jose. You go first, john. No new bad news is good news when it comes to hp. Well tell you what meg whitman had it to say after the break. Jane . John, 220 soccer cheeks as nike goes after brazil in the world cup. Ceo mark parker calls this a growth company. He highlights one area of underperformance, lululemon youve been warned. Back after power lunch swooshes through a break. The Wright Brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me . And you hear your voice . Oh, its exciting [ man ] touchdown confirmed. Were safe on mars. [ cheers and applause ] hi. [ baby fussing ] like two ships passing in the night nike put into the dow and hewlettpackard kicked out meeting with wall street analysts today. Jane wells is in oregon at nikes today. But we begin with john forth in san jose at hewlettpackards Analyst Meeting. Tyler, hp stocks spiked during the Analyst Meeting today when slides from whitman and her Team Appeared to indicate 2013, plus or minus 10 cents versus the 363, the street was expecting. That seems like particularly good news given whitmans cautious tone lately. And the deterioration in the pc and enterprise business. Whitman said the business is stabilizing on multiple fronts and now has the right executive team in place to grow hp. Hp Services Software chiefs gave presentations where they emphasized gross margin stability and the idea that customers are behind hp. Putting an extra positive spin on things, whitman said to expect growth to accelerate in fiscal 2015 and for hp to be an Industry Leader two years from now. Shes certainly set the bar for herself now. Sue . Indeed she has, john. Thank you. To jane wells now whos in beaverton, oregon, at nikes investor day. Hey, jane. Hey, sue. Nike is now projecting 36 billion in revenues by fiscal year 17, that is 10 billion more than right now and see ven though it wants to reset in china and capture brazil, north america is the Fastest Growing market. The Ceo Mark Parker points out one area of underperformance, women. Weve been growing our business, our womens business, actually faster than we have our mens business. At the end of the fiscal year 13 our womens business was over 4 billion in total. Thats wholesale. Well reach nearly 7 billion by fiscal year 17. So big growth opportunity. Now, that is still going to be less than 25 of total revenues. Also the Company Plans to grow overall apparel revenues from about 7. 5 billion to 10 billion by fiscal year 2017. Talk about this new fly knit technology supposed to cut down on materials and labor, its 160 and some analysts question whether people are going to pay that much for a shoe that doesnt have any visible technology on it. When can they scale this to the point where this new technology, this new way of manufacturing affects revenues. We will ask Ceo Mark Parker that today and a first interview in the closing bell. Thanks so much. Inside the mind of a teenager. I went shopping with a bunch of them to find out whats on their Shopping List this holiday season. The retailers that stand to cash in. Plus coming up, power pitch. Startups give us their 60 second pitch. Im nick evans cofounder and ceo of tile. We give you insight into the fastpaced world of venture capital. The problem theyre trying to solve is universal. I do worry about the product margins. Do these founders have what it takes . We need auto to find out whether you are in or out on tile. Stay tuned to find out. Can , but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. 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. In order to go visit my family, which means a lot to me. 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. Geothe last thing i want iswho doesnto feel like someone is giving me a sales pitch, especially when it comes to my investments. You want a broker you can trust. A lot of guys at the other firms seemed more focused on selling than their clients. Thats why i stopped working at my old brokerage and became a Financial Consultant with charles schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Hollister,. Time for the power pitch where we give founders 60 seconds to make their pitch and we see if they have what it takes to become the next big thing. Im mandy drury. We have a company thats developing this, a little piece of plastic that will help you to never lose anything again. Sounds intriguing right. Nick evans is the cofounder of tile. Before leaping into the world he worked as a programmer for green hills software. Take a look at his power pitch. Sn. Im nick evans cofounder and ceo of tile. Tile is the Worlds Largest lost and found. Attach tile to anything and using our app you can locate it. Tile works great on things like keys, wallets, purses, basically anything you can attach a tile to. When within 100 feet you can make a tile ring so that you can use sound to guide you there. But tiles most interesting feature is that every other tile user is extending your range. That means basically thousands of people are helping you find your keys rather than just you. This all happens silently in the background. Every other tile user is tracking everybody elses tiles and will send the owner of the tile its location so you can open the app, look on a map and see where your stuff is. This is already proving to be a strong business, selling 150,000 in units every day. But whats going on in the background here at tile is whats turning this into a billion dollar business. Okay. Nick is on the right side of your screen. He can hear us but cant react just yet. On our package today we have byron, a partner with Venture Partners focuses on mobile and Cloud Computing and made it on to the forbes list in 2012. And david, hes a partner with mavron a venture firm started by starbucks Ceo Howard Schultz focusing on early Stage Consumer Companies with investments like ebay and shutterfly. Great to have you on the show. Huddle up on tile. David, what do you think about this product . I think the problem theyre trying to solve is really universal. Some of the smartest and most successful people i know are constantly losing their things. Byron . I love the core concept and i love the crowd funding dynamic to it. However, i do worry about the product margins and the Distribution Capabilities here. As far as im concerned, i lose things all the time. I think it would be fantastic to put it on my children in a crowded space. My concern here is, that you can only use it, its only compatible with certain apple devices. Nick, youre in the hot seat now. Time for us to ask you questions. David, would you like to ask the first question. I feel like theres several competitors in the market. I can walk into brooksstone or open up sky mall or apple iphone has find my iphone built in. What do you think it is about tile thats captured this consumer passion . You need to make sure that design works for people and the ease of use is there. Byron, do you have a question for nick . I just worry that the find my keys market may not be large enough. Can this be embedded so the tile may disappear . The find my keys market is big enough. And weve seen that with the crowd Funding Campaign and weve barely started reaching out to people so far. Basically building out a gigantic internet of Things Network that will allow many different types of vee de vices to communicate with the internet. Whats your time frame when you will be able to expand to android . Waiting for google and the android team to pick up the pace on Blue Tooth Low Energy and give better support for that. Once thats in place we will be able to build a tile for android devices. Talk about the margin dynamics you anticipate in year one but longer it term. Each tile lasts one year. After that you purchase a new one. Well send you a new one in the mail. Up front we only have one Customer Acquisition cost where we have recurring revenues every year similar to a sass model. If someone were to buy one tile say for their keys, and then they get the product, they like how it works, they may decide then to buy one for their purse or for their backpack and well start seeing more and more tiles per person after still just one Customer Acquisition cost. Our margins on the first order are slim, but after that, we dont have to worry about the upfront costs for advertising. Talk about privacy issues. In your power pitch you mention something about other tile users in the area being able to help you find your lost cell phone or lost car or keys or whatever. Is there any possibility at all that those other tile users might be able to find your keys first . No. So you can only see your own tiles. And thats controlled by actually the cloud account. Everything, all the important data stored in the cloud. Were not storing anyones location data. Just the location data of different tile. You heard what nick had to say. We need to find out where whether you are in or out. Unfortunately, like most Consumer Product businesses, this one will probably fail. However, i like nick and i love the crowd dynamics of this market. Not only am i in but i brought a checkbook today and on behalf of my partners i would love to really be in. I dont think the technology is defensible but whats impressed me about tile is the ability to get a lot of consumer demand and passion up front. So i think theres really something here and im in. Yeah. Im in. I like this product, a product i would use. Its a product that i would logon to his website and order. Nick, whats your reaction . Thanks, guys. Were really excited about getting this in the retail and expanding the network. Thanks to nick of tile and also to our panelists, byron and david. Thanks to you as well. That is todays power pitch. I love that product. Big news and a cnbc first for power lunch power pitch. We learned both firms have backed up their in votes with cash. They wont publicly say how much but we can tell you its a six figure investment. Congratulations to everyone and the tile team. Go op twitter and tweet us your thoughts with the powerpitch. Toss to scott cohn breaking news on the madoff case. The madoff bankruptcy trustee is now appealing to the Supreme Court in hopes of holding some of the big banks that dealt with madoff liable for what he says was their role in facilitating the giant ponzi scheme, specifically were talking about Jpmorgan Chase which was madoffs biggest bank and ubs and hsbc. An Appeals Court barred him from going after the banks. Pick card says he should be able to saying in the words of the complaint that he wants to hold them responsible for taking millions in fees in exchange for facilitating the Worlds Largest ponzi scheme. We dont know if the Supreme Court will take the case, but its stake could be billions of dollars that pickcard wants to recover from the banks. Back to you. Scott. Fascinating development. Thank you. To andrea day on an update on another highprofile case. Andrea . Sue, its been in the works for a while but looks like Andrea Sanderlin has made a deal with prosecutors. The socalled pot mom telling a judge, quote, from 2009 to 2013, i operated a facility in which i together with others grew at least 1,000 Marijuana Plants and sold the productses from the plants. Sanderlin lived in scars dale new york where she rented a big house and cruised back and forth to her warehouse in queens behind the wheel of a mercedes suv. Now she admits she financed that lifestyle with a pot empire. No word on the what the terms of her deal may be. Ill send it back to you. Thanks, andrea. We await word on what that deal is. Absolutely. To the bond market now. Thanks, sue. Even though we had an auction more eyes focuseds on the one month bill. You see a shortterm chart, fiveyear chart, last time rates were at the levels and a tenyear chart that gives you some perspective. As for that tenyear ax auction it wasnt terrific just like yesterdays three year but we are up several basis points. Lots of correlation of late with up stocks up rates. See if it moves outside of the 260 to 265 range weve established in the last 11 trading days. Tyler, back to you. Thank you very much. Is the embattled hedge fund steven cohen going to admit wrong doing at sac . The latest on a deal with prosecutors. Thats one of the sticking points. As we go to a break a look at how big name stocks are getting hit today. Look at tesla down 5. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. Some of the worlds top investors and policymakers are gathering in texas today for the annual barefoot economic sum in mitt tackling the macro forces moving the markets these days, the future of the fed and janet yellen. Our own david has been on location and has our special guest, prominent harvard professor author of a great number of books including the great degeneration. David over to you. Thanks very much. We are joined by Niall Ferguson and heading back to harvard fairly soon but you were able to be here and talk last night. We were both inside for the last presentation and ive been to this event for a number of years. It was similar to presentations ive heard in years past, doesnt make it any less real, which comes down if i can state simply and get your reaction, we have private and public debt, 345 of our gdp, our economy will never grow at a rate we might have expected post trend rate from 1790 because of that. What are we going to do about it . Yeah. I think we have two stories here that have been true actually since about 2009, if not earlier. Story number one on the fiscal side. The unsustainable level of debt and unsustainable level on top of that of private debt. Story number two has to do with Monetary Policy. What weve just heard you and i are two really quite worrying stories about inconsistencies in the two policies. We know from the recent Congressional Budget Office projections how bad the debt scenario is. Almost no scenario a ceo considers where the debt comes down. It goes up in one of their scenarios close to 200 over 25 years. Theres a debt mountain only growing and that, of course, is partly based on the low growth that we are having to get used to. We are in a new era of significantly lower growth from the u. S. Has been used to. Its hard to see a way out of that. How do you actually stabilize the long run fiscal position and prevent this debt accumulation from going on to the point at which far too many tax dollars are being consumed by Interest Payments on the debt even at these historically low rates. The second point to me, the more worrying point, and that is youre running out of options in Monetary Policy and theres a kind of desperate impro vieization within the fed as quantitative easing has entered a period of diminishing returns and Forward Guidance lost its credibility. That was mentioned. I thought that was interesting the idea they almost sacrificed something that had been somewhat techtive, one of the participants saying, that being the Forward Guidance, at the alter of qe to keep it going with no taper at all. Janet yellen is taking over. We can count down the months until shes running the fed. Is there going to be any change, any other levers that have havent been explored by her predecessor she will try to pull on to change that dynamic . I think in the eyes of the market, theres going to be more countntinuity than if larry sums had gotten the job as originally planned before the syria debacle changed everything. But im not sure quite how to read this if i look further down the road, though. I can see that janet yellen is in many ways on the same page theoretically as ben bernanke, but one of the arguments being discussed and we heard this morning is that covertly, janet yellen would really like to have a nominal gdp target. In other words go to a new level of policy innovation on the monetary side. The issue is whether she can get a majority of foms fomc members on board. I doubt very much if more than a handful of people on the committee share her radicalism in that sense. I think the way i would put it is this, we are going to have lower rates for longer than if Larry Summers had got the job, but when the adjustment comes, which were supposed to believe will be around 2016, 2017, maybe later, its going to be really very suts sudden and sharp, maybe one of the sharpest adjustments in short rates that weve ever seen in the history of the modern fed. Coming off that drug and the side effects will be severe. Were out of time. Thank you for your team. Niall ferguson from harvard, heading back there this afternoon. I get to stay and enjoy the beautiful weather and this beautiful spot. Back to you. Enjoy it, david. All righty. Sue, a new episode of secret lives of the super rich is tonight. Our wealth editor robert frank is here with a sneak peek. Tonight we are going to go to miami and show you some of the citys most expensive mansions and biggest infinity pools. These pools do go on forever coming up after the break. Acso 45 states and then District Of Columbia have voluntarily decided to raise the bar with consistent educational standards. Now, students in those states will have a better chance to succeed in college and careers and to compete in the global economy. Which means a Better Future for our students and our nation. Join exxonmobil in supporting the common core state standards. Lets solve this. If you want to buy or sell a mansion in miami, youre going to the gills, they like the stones or the beatles the rock stars of Miami Real Estate and robert frank got a peek at some of the star properties. We did. The gills named by the wall street journal as the Number One Team in the country for sales volume. 420 million in sales. They let us inside their top listings. Lets take a look. Its a little closer into the city. Its more miami beach. The property has 200 feet of water. The house itself is about 12,000 square feet. So this room from the moment you enter feels really so nice. Yeah. An look at your view. Wow. That is terrific. That is amazing. Look at the view. Extra little inif funnity pool. Now mansions like that are one reason miami is ranked number four in the nation for sales of 5 million plus homes and listings of homes, you know, its all that money pouring in and its just not slowing down. Its amazing. That was a lot of infinity. It goes on and on. Wake up and see the infinity pool. Dont miss tonights brand new episode of secret lives of the super rich at 9 00 eastern and pacific. Sue in. Cant wait, ty. A reverse mortgage cap be a jack pot for some retire yees. It allows them to tap into the equity of their home, pay back to the bank when they move out or die. However surviving spouses not on the loan could get stuck with repaying all of that. The aarp didnt like that and a District Court has ruled in its favor in a suit against the department of housing and urban development. The court ruled that a spouse that is not on a reverse mortgage must be protected from foreclosure. No time line has been set for the changes and cnbc was unable it to contact hud due to the Government Shutdown. All right. Coming up power shopping, exclusive results from my trip to the mall with a great group of teenagers. You will be surprised what their inspiration for fashion is. School i feel like is the fashion show of life for teenagers. So especially like when a new style comes into season you want to get those as soon as they come out and wear them to school. Its just 76 days until christmas. An exclusive look at how teens shop. I joined Piper Jaffray stefs whichnick on her fall taking stock with teens tour. Thank you so much for joining me. You said that you dont do all your backtoschool shopping at once, right . Yes. Why is that . I think that like throughout the course of the season, new styles come up so if you buy everything at once, maybe you wont maybe later on youre going to be like i want this and this. Does it have to do with checking out what everybody else is wearing . Definitely. Yeah. School, i feel like is the fashion show of life for teenagers. Whats the trend so far this year . I would definitely say that the trend is combat boots and seeing a lot of [ inaudible ] for boys. Guys, i think khaki long pants and yes, definitely. How important is price to you when you go shopping . I think its a factor, definitely, especially since were teens and we all like most of us have jobs or something so we are spending our own money but we also focus on the style. So do you shop the sales . Are sales important to you . Sales are important. I try not to pay retail but if its something that like i really want, then ill splurge for it. Raise your hands as to how much you spent, 100 back to school . 200 . Let me up it, 500 . Is that about right . Thats probably it. 500. Times have changed. I asked the kids if brands matter anymore and they told me no. Not when it comes to clothing. Lets bring in stef who joins us with the results of the national survey. Good to see you again. We had a good time doing that, thanks. We did. Thank you. Lets take get some of the Key Takeaways from the survey. One of which was they spend, but they spend selectively and not all at once which seems to be a changing trend. Absolutely. Were seeing less and less seasonality to the business in teen retailing and more of an editing, constantly editing. This is actually driven by what were seeing in teens in general. Theyre buying on demand when they want to buy and where they want to buy. What about you just mentioned on demand shopping which i think is key, but also the fact that theyre not necessarily interested in brands anymore. They want to be different. They dont feel that peer pressure they used to. Absolutely true. I think what were seeing in this generation of teens is this aesthetic and preference towards looking different. The prior generation of teens was looking into looking the same as their peers, thats how they were validated by wearing the same brands. Today as you mentioned, these teens are all about style and theyre wearing brands differently in different categories. Less about apparel, bottoms and tops and more about accessories, footwear and some of the more aesthetically branded and accessory categories like handbags, watches, jewelry. I was also struck by the role that social media played in their Decision Making and where they went to shop and when they went to shop. What did they tell you about that . Its incredible how colorful social media is. In a consumer segment weve known word of mouth is a powerful tool to convince a customer to spend or shot. The other thing i would say is teens are visual. Were seeing more and more communication through pictures, through video, thats how they communicate with one another. Its powerful. Yeah. Instagram, everybody was doing instagram and getting different pictures of something at Pacific Sunwear which they call pac sun. Thanks a million. A lot of fun. You bet. Take care. Ty, up to you. All right. Steven cohen ready to resolve sacs capitals case with federal prosecutors and what will he or the company admit, if anything . When we go to the break, one sector that is doing well today. Utility stocks as investors look for safety in yield. Americans take care of business. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. All right. Take a look at Darden Restaurants a spike now up almost 6 in that stock to 49. 19. That is because barrington partners accumulated a 2. 8 stake in the owner of olive garden and red lobster clans. Pushing for a breakup of the company and darden for its part through a spokesperson says that they will evaluate and take a look at all ofs those proposals in due time. The stock now up almost 7 , ty, another activist investor taking a stake. Thank you very much. New reports that sac capital is leaning toward admitting criminal wrong doing and paying a record fine to resolve charges of Insider Trading and others against the company. Kate, how likely do you think it is that sac will reach a financial settlement, a, and b, admission of some responsibility or, quote, guilt . You know, tyler, based on what i know i would bet on seeing a settlement, although i think it may take weeks or another month or more to work out. I think its in sacs interest to get this behind them. Theyve indicated they want to continue operating as usual, not turning into a family office, for instance. They have said they would like to resolve this. Theyve said that to their employees. The will is there. The question is, the how. I think right now the bid offer on settlement fines is pretty wide. Im hearing it could be from about 1 billion to closer to 2 billion based on the governments offer. The government apparently indicating they would like to see an admission of guilt, wrongdoing, the charges securities fraud and wire fraud. How likely is that mr. Cohen or the company itself admits to wrong doing . My sense is that sac is seriously considering it and thats clearly a concession for them. Not only would it create reputation damage, theyre essentially acknowledging theyve broken laws here but it could open the door to private litigation. Thank you very much. You have your eye on it. Moments away from breaking news on the fed. 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And the financing to make it grow . Whatever your goal, it can change more than your business. It can change the future. Thats why, at barclays, our ambition is to always realize yours. [ 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. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. We are Just Moments Away from breaking news that may move the markets. The minutes of the last fed meeting about to be released. Keep in mind that was the meeting when the fed decided not to taper. So they are going to be parsing the language in that report very, very carefully. The dow is up 56 points, the s p up 4 but it ty that nasdaq is stubbornly to the downside. The nasdaq down about 2 yesterday. You look at that 56point gape in the industrials and you have to wonder does the market know something about whats going on in washington that we might not know. Thats right. Thats just me saying it. Im just saying. But the market is usually right. I think youre on to something. That will do it for power lunch. Well hand it over early today because breaking news on the fed, street signs begins now. We have got the fed minutes coming out just in moments. The street still on edge because the standstill and the president set to report a new fed chairman first woman ever likely to take that job as well. So you can say its a busy hour, but that might be an underestimate. Its beautiful outside and we are awaiting the fed minutes about set to cross right now. The Federal Reserve engaging in a heated debate, in its september meeting whether to or not to taper. Youve heard that publicly but we learned what happened in the meeting. Many were concerned about the Government Shutdown and debt ceiling debate. The two concerns were in the room while the fed made that decision. The hawks however, warned about the fedss credibility saying it was at stake but not tapering. The doves saying the june Economic Conditions laid out in the plan of that meeting were not met. All the voting members but one decided as you know said it was best to wait to taper. The fed was well aware what the ma