New week. We know exactly when the United States will run out of money. Treasury secretary sent a letter to congress this week saying unless Congress Raises the debt ceiling, the treasury will have 30 billion left by october 17th and possible expenditures of 60 billion on that date. Unless the debt ceiling is extending the government wont be able to borrow money and pay some of its bills. That has business cautious as John Chambers told me this week. We see opportunities and also challenges. You know whats going on at the fed and whats going on with the debt ceiling. The impact of orders coming out of federal being a bit more challenging and the retail sales. Most of my ceo counter parts and Industry Experts are cautious. The dow and s p 500 broke a losing streak on thursday. The markets fell on friday. Nike reported earnings this week and beat analysts expectations. Blackberry may be going private. The company considering a 4. 7 billion by a private bid by fairfax capital. They are announcing a loss of 1 billion dollar in the second quarter. Fall has arrived and so has fallen gas prices. Unleaded is nearing 3 a gallon, the lowest since january and more than 30 cents below last years record. The reason, record high demand rate and Falling Crude prices. Wall street has been holing its breath this week watching washington, wait to see what will happen with the fight. Theres reason to be optimistic. Keith banks is president of u. S. Trust. Its good to have you on the program. Good to be here. The market seems to be in pause mode. I guess were waiting on a number of things. The fight of the debt ceiling is expected to be a negative. Weve seen this movie before. Unfortunately. How does it play out . I think what you just described, especially the debt ceiling, we think that could cause a bit of a pothole, not a sink hole in the market. We could see a 3 plus percent pull back. Even though its going to impact peoples psyche, its not going to impact the fundamentals of the market or the economy and thats what people have to keep focused on. What are you seeing from clients now . Theyre nervous. Theres always been this wall of worry whether its syria, iran, qe3 ending and now its the debt ceiling. In some ways thats bullish. We have not had that flood gate open of funds flowing into equity. We think theres a lot of money that can and will move toward the equity market based upon the fundamentals we see. Theres a lot of potential for new money to come in. Were ending the Third Quarter and about to get a lot of earnings. We already got the final gdp on thursday. It was unchanged. The economy growing at an annualized rate at 2. 5 . Not great growth. Not great. How would you characterize the fundamentals . I think theyre improving. What we look for, which is the key in the markets, we see the economy doing much better. We see next year the economy and u. S. Growing over 3 the the u. S. Economy, the private sector has already been growing 3 to 4 currently. Whats taking that back down is the sequester to 1 to 2 percentage points. When that begins to neutralize as we go through the rest of the the year youll see the underlying activity. Thats why we think next year will be a positive surprise which means good things for profits. Lets talk Third Quarter. What are you expecting . Revenue wasnt great last quarter. Revenue wasnt great last quarter. We think this will be a transition. We see about 3 growth for u. S. Companies. Next year we think the rate could go up to 6 . Not only will the u. S. See an up tick to 3 in growth, well see an uptick globally. We have the Major Economies aligned for the first time in a long time, all in positive growth mode and growth we think will accelerate. China is stabilizing and we think improving as well. When you look at all those markets you are seeing it. Your client with the High Net Worth of client. Are they taking money out of bonds or putting it into stocks at the expense of bonds . So far the shift thats going on and we are seeing a shift finally toward equities. It initially came out of cash. Its slowly coming out of fixed income. We think that will continue but its not going to be a flood gate opening. Its not going to be all this money flows out of fixed income into equities. What are you recommending now . What should Retail Investors do . We still say you should be overweight equities. We like the u. S. Were under wait fixed income. Here is the concern of fixed incomes. Rates will go up. Theres such a small cushion right now from a yield standpoint that as prices begin to decline as rates rise, youll quickly eat through that yields cushion and go to negative returns, negative absolute returns in fixed incomes. When you look at it on a real basis, even worst. Keep moving money toward can he recollect the equities. We like the u. S. We like technology. We like financials. We like energy. A couple of interesting findings of High Net WorthBusiness Owners. They say Business Owners are more fulfill bid their work than those who work fror others. Any big surprises . Theres a difference between that reaction by the younger Business Owner thinking they can have a positive impact versus the baby boomer. When the baby boomer started their business, it was no safety net. There probably wasnt a lot of money. Their primary focus was how do i feed my family and make sure this business doesnt fail. The gen x and y are coming from a safety net and a little more wealthier background. What about obama care . Well see it go live next week. Is that having an impact on Small Business . A lot of people talk about the Health Care Legislation as being an issue. Many in your survey cited concern over taxes as well as health care. Number someone the uncertain uncertainty. Were not going to no for a year whether this will work the way it was intended to work. The key will be whether young l healthy uninsured sign up. If they do costs will come down. If they dont, it wont. They want to manage that Health Care Cost risk by going that route and when theres more certainty theyll make the decision as to how to play it from the standpoint of hiring. Good to have you on the program. Always great. Up next, none other than bill clinton. The former president sounding off on everything from debt ceiling drama to dealing with iran and russia. Does he see a resolution to any of this soon . Well find out. Business School Students making the grade with Innovative Solutions to addressing food and security. You wont believe what they have come up with. Its actually quite simple to do. As we take a break, take a look at how the stock market ended the week. Back in a moment. When former president bill clinton speaks we all listen. I caught up with mr. Clinton at his annual Clinton Initiative in new york. He wasnt afraid to talk politics. He said it would be disasterous for washington if they permitted a government shutdown. When you do it now people are hoping to goodness these Market Trends are positive and looks like were really coming out of this. Investors from overseas will think were three bricks out of a full load. If you were an investor in asia or europe, youd be more reluctant in the future to invest in our country if we pull a stunt like this. What do you think the deal should be . What should president obama give on . You cant allow the full faith and credit of the United States to be messed with. If i were in his position id be taking the exact position hes taking. Not negotiatable . No, not that. I would say we can still negotiate a long term budget deal and id like to do it and put more budget cuts on the table for you. We can do that, but the place to do that is when were doing it. Once we vote to spend the money you cant say were not going to pay the bills. We just spent the money. We have an opportunity, if you believe what youre reading, iran wants to be diplomatic. Do you believe this . How do you think this plays out with iran . I dont know. I think it ought to be tested. Anything we do with iran effects the security of the people who are struggling in syria. It effects the syria of lebanon. It darn sure effects the future of israel, and therefore it effects the United States. I would keep the door open. Id keep testing the russians and syrians on this chemical weapon thing. The president is right about this. Syria should be settled with a negotiation because its so complicated. Should he have handled it differently . The president was criticized over coming out, setting that red line and then saying lets wait for congress. In retrospect what could have been doing better knowing that the people do not want war. He could have used air power sooner but it turned out for whatever reasons it may have all worked out for the best. At least weve got russia and syria now in a public arena of accountability. If this turns out to be a scam, they cant blame it on anybody else. Its right out there for everybody to see. I think the pressure on them to deliver is high, and if they do deliver and they get rewarded for it which they should. People should say that a boy, then the pressure will build to go back to the peace process. This is messy, but we got some leverage here. We just need to keep pushing. Is putin out front. If you do any military action ill be backing the syrians. Hes already backing the syrians. Hes putting weapons in there all the time. He thinks its in his interest. I think what happened was for several years hes been on automatic. Its whatever makes america mad is good for us. If i can make them look bad, i look good. If i can make them look frustrated and weak, i look strong. I think he may be rethinking some of this strategy. Hes milked this antiamerican cow for as long as he can milk it. Theres not much advantage of being wrong sided in syria and ignoring the threats to russia from chemical weapons slashes around in his region. Thank you for moving the needle on girls and women. Peter sands Just Announced his commitment. Why is this so important to cgi . In an interconnected world where brain power and back power count, it is not only dumb its dumb to leave half the world out of the equator. Because theres no place in the world where women enjoy equal participation and equal renumeration in the economy and equal involvement in the political life of the country after all these years we know that were a long way from paying. The average woman earns about 77 cents. The empowerment of women and girls is important. My thanks to president clinton. Up next, inside the Worlds LargestStudent Competition for social goods. Well hear from the young when was the last time you came up with a Million Dollar idea . For a winning team, finding a Business Solution to address food and security came down to what bugs you. Edible insects and changing the world one start up at a time. This year 11,000 students from 350 different universities and 150 Different Countries applied. Six finalists, teams of global mba students competed for the health prize, 1 million in seed capital. The answer is insects. Its about inspiring people to provide Food Security to people who live in the urban slums. We provide them with instafarms. Yes, bug farming. Its quite simple to do. It doesnt require a lot of maintenance. Defending their Business Plans to panel of experts, teams have spent the past year developing companies to address the needs of the 875 Million People around the world who may not know where their next meal is coming from. These are young people who are attending some of the best Business Schools around the world. They have the opportunity to go work for the institutions where they can make a great deal of money, but they chose to use that brain power to focus on how to make the world better and how to address the issue of food and security. Aspire. At the beginning it looks impossible, difficult. Thats the beauty of innovation. Youre breaking the world. I had no idea there was an intersection that existed between doing good and doing well. If we had more business students working on solving some of the toughest issues in the world we could crack them by bringing Business Ideas to the toughest challenges of the world. Lets talk about the winners here. This is the third health prize having been awarded 1 million in start up capital and given directly to the winning startup team. What do you think this team will be doing with that money . 100 all the money will go to the Student Winning Team to implement their start up. Two and a half billion people on the planet already eat insects regularly. Tell us about that. Its one in three people in the world consume 19,000 different insects and this startup, aspire food will create a tangible ecosystem. Why did you think this was going to work . People eat it, so this is nothing new. It can be done in easy way, why not . Were using whole insects. In addition were fortifying food with insects and so what that means is we would take Something Like a cricket and roast it to the point that its taken out about a powder to see the startup last. Im not making a joke here, bugs are Healthy Eating then . I hope so. This is what were told. Im not a medical scientist to find out. If i said to somebody 60 days ago i love this prize and im going to go give the prize this year to someone who wants to grow, process and sell edible insects to empower rather than devour urban communities, some people would laugh. Youre only part of your Creative Power is used in making money. Theres enormous capacity which is a capacity to solve problems. Is it difficult to sell products to the poor. What do you think is the secret sauce to ensure that the people who need the products are accessible to the products . When we say product, to me its whether its good for them. I bring the product and the service to the advantage of the poor people rather than to their advantage. I like the worms. I think you like the grasshoppers. Theyre delicious. If you try them youll know what i mean. Congratulations to the student who is competed for that prize. Up next, a look at the news this upcoming week that will have an impact on your money. Pink is the new black for diamonds. Youll never guess what this 60 carat rock is expected to feature at auction. Thats next after the break. I hope youll follow me on twitter and google plus. Look for maria bartiromo. Tuesday is a busy day. Well hear from automakers on their new car sales. Also budget cuts for fiscal year 2015 will take effect if congress doesnt extend the continuing resolution. Tuesday marks the roll out of obama care. The bureau of labor statistics will release the jobs report for the month of september. Thats typically a market mover. Finally, diamonds are forever or you hope when they are worth a Million Dollars a carat. On november 13th, a rare 59. 6 carat diamond will be auctioned dubbed the pink star for 60 million in geneva, switzerland. The grass pink sold for 46. 2 million back in 2010. The owner is not being disclosed. That will do it for today. Thank you for joining me. My guest next week is eric shmitz. Have great week. See you next weekend. Good morning. Breaking overnight, one step closer to a government shoutdown. Fireworks on the house floor. In a latenight vote, the republican majority passes a bill that will never get through the democraticsenate, nor pass president obama. So what now, and just how much pain will you feel if the worst happens. Were live in washington with the answers. Inside the massacre. Startling new pictures emerging this morning of the aftermath of the terror attack in kenya, giving us our closest look yet at the devastation after a weeklong standoff with terrorists. Happy anniversary lester. Hes been going strong for