networks. the dow down about 850 points now, be since the september 18 lts highs. it's another down day on the street as the shutdown rolls on. have a great rest of the day. follow me on twitter @scott womanper in cnbc and "power lunch" begins right now. >> "halftime" is over. the second half of your trading day begins now. >> thank you vef very much. if we hit deadline day on october 17th what will be paid for and what won't. who will get money, who will be in the cold? social security, federal salaries, defense contractors? we have the list. also, those obama care website glitches apparently not getting any better. the head of health and human services miss sebelius starting to feel a bit of the heat. jon stewart style heat. if sebelius worked in the private sector would she still have her job today? we'll tackle that one. and some rare comments from this

gentleman, the legendary investor john paulson, only on "power lunch" today. sue is at the new york stock exchange. hi, stew. >> ty -- hi ty, great to see you. all throughout our show the five browns, the famous players, they're playing steinway's for us at the famous steinway factory. ♪ listen to that. isn't that beautiful. the ceo of the company is on with us because john paulson just bought this company and they're going to play for us throughout the hour. five browns, welcome to "power lunch." when you think of the federal government these days, what music comes to mind? let's listen to what they come up with. ♪ >> a circus theme, that's appropriate for what's going on in washington. the five browns will be with us throughout the hour, picking different types of music as the

stories warrant. on day eight of the federal shutdown, president obama will make a statement and answer questions in one hour. we will, of course, carry that live here on cnbc. all of this as we approach that october 17th deadline. steve liesman will show us the map behind what will be paid for and not. first to eamon javers with a scary new report from goldman sachs on what that debt ceiling deadline means to me and you. >> that's right, sue. they are not hitting all the right notes in washington according to goldman sachs. take a look at some numbers they put out overnight last night. in their estimation now of what happens if we breach the debt limit, it could be a fiscal pullback between 75 and $175 billion. that is an estimate of all of the demand that will be sucked out of the economy. they say it could result in a meaningfully negative effect on economic activity if not addressed quickly. compare in your mind that 75 to

$175 billion to what we were talking about with the end of qe at $85 billion a month and we were talking about markets reacting to just tapering to $85 billion, scaling that back a little bit. this would be potentially removing 75 to $175 billion out of the economy. how would this all actually work? the treasury department has said that the deadline is october 17th here and so you can see what we've got is a list of all the different outlays that are prescheduled through the rest of the month and you can see on october 23rd, the big one is going to be a $12 billion payment there. the treasury has said after the 17th they'll have about $30 billion. it looks like they could probably make that $12 billion payment. look at november 1st. that's when they have $67 billion in payments that are due and that's everything from social security benefits, medicare advantage and part d plans, active duty military pay, civil service, military retirees, veterans benefit payments and supplemental

security income all of that due november 1st. we don't know what inflows will to be treasury but we can say what the outlays are going to be and that november 1st date is going to be tricky to make all the payments if they don't have the debt ceiling raised by then. sue and tyler. >> eamon, thank you very much. breaking news from the bond market right now. the three-year note went up for auction. the auctions this week are incredibly important because of what's going on in washington. not that we don't always pay attention to them but the tensions are higher this week. >> well, absolutely. especially when we saw 35 basis points on a one month bill that two weeks ago was 1.5 bases point. highest yield on one month bill going back to october 28th of 2007. all this is very important. on this auction, $30 billion, three years, i give it a c-minus. the wi was like a stair caste, kept rising all day for all the issues sue outlined. auction c-minus it tailed a bit. wi which i talked about rising

most of our time zone was at 72, priced at 71 basis points, a bit of a tail there, and the bid to cover at 3.05, 3.05, chasing every dollar worth of security available, below 3.35 ten auxion average. heavy on indirects which is interesting and made sense at 34.4 and directs on the screws at 19.7. all in all it wasn't a bad auction considering the question mark from a chronological or staff point plaguing money advisors and short bill auctions. back to you. >> thank you very much, rick santelli. eamon went through some of the numbers about what the outflows from the treasury would be, sort of day by day, the question for you, steve, is who gets paid and who wouldn't if we breach that debt limit. >> this is a very serious situation. don't want to make too much fun of this but we created the debt

ceiling play at home game. tyler, i want you to play. we call it hard choices. the debt ceiling play at home game. there's only one rule, for every $3 you're required to spend by congress in this case, you have to eliminate about $1. that's the debt, what you cannot -- you cannot borrow so you cannot pay it even though you're mandated to pay it. let's do a practice round, scenario number one. you can pay for social security, $49 billion, and medicaid of $69 billion for a total of $118 billion. remember the rule, eliminate a third, that's getting rid of 35. you have to get rid of food stamps and unemployment, military pay and retirement, veterans benefits, about 34, $35 billion. that's how you play the game if you will be the secretary of the treasury or the president in this case. >> you pay this. >> right. >> that's your total obligation. >> right. >> is $118 billion. you don't have that kind of money. you have to -- >> all of this goes away. >> that goes away. >> all of this.

>> this is easy. let's show you the next part that's hard here. put the serious stuff in there. if you pay social security, medicare, medicaid, interest on the debt, defense venders, food stamps, unemployment, military, the thing that will not get you thrown out of office, $211, get rid of $68 billion, play it at home. let's get rid of the department of justice, fbi and courts are gone, rid of all federal salaries for $24 billion, shut down the faa the planes $15 billion, that's how you get $68 billion out. here's great part of this story, tyler. we did this. we're not sure it's legal. rightp. there are constitutional scholars arguing if the congress appropriated it, can the president actually choose not to pay it. >> one thing or another. >> the treasury secretary says we don't really have that ability. we have no authority from congress. to be fair, congress some republicans in congress want to

pass a prioritization law, pay all this good stuff over here and don't pay some of this over here. it's a series of hard choices if we hit the debt ceiling, we're wired now to pay something like $3.5 trillion in spending an we only get $2.5 in revenue. >> a third has to go away. >> go away. >> if we don't authorize further borrowing. thank you very much. sue, down to you. >> houston, we have a problem as steve illustrated. all right. so if we do hit that debt limit what's an investor to do. advice from kenny on stocks, sharon epperson on commodities and jeff kill berg on the bond market. kenny you go first. >> i think you have to be -- listen, we've seen it. the market is getting weaker. people are expecting that to happen. i also think we're going to go to the edge and then people will come to their senses and we're not going over the ceiling. if we aren't this is a great opportunity. if we go over there's going to be more pressure on the market, you have to be patient and don't panic. the last thing that investors should do is start running for

the doors and throwing everything out. that's the wrong thing to dop. that's typically when the retail investor panics and makes the wrong decision always. >> sit tight. >> sit tight and you should add on on the weakness. once it's done, you knonoknow, will move higher. >> those i talk to on the floor think we're not going to see a default but if it happens and negative for stocks people will want to sell everything and that includes commodities. even though you may think gold may be the safe haven play it hasn't shown that this year not with the shoutedown we're seeing, not with syria. it hasn't reacted as many expected it to, down 20% for the gld. you may not want to be aggressively in gold as that safe haven. instead, bill kneale at logic adviser, some may want to take an options strategy in the gold market to protect from volatility. silver is a volatile place. that may not be the place to be either.

in terms of other commodities, in terms of oil and copper, dollar denominated commodities, if the dollar falls had they should do well. you may want to protect yourself there as well and get other types of commodities the yen to offset what may happen to the dollar and what may happen to the commodities. back to you. >> sharon, thank you. out to chicago, jeff killberg. what do you do in the bond market? >> still like owning treasuries. it's very interesting. once we saw the 3% get rejected in the ten year, we've been buyers, still buyers. obviously we are seeing this default situation. it's not a willing default. 535 knuckleheads in washington fighting playing the worst game of chicken ever. we think you can still own these treasuries here because on the ten-year note watch it go down to 242. saw in august 2011 we saw this counterintuitive trade. where are folks going to go. they're not going to sell treasuries. if we see equities come off like kenny my buddy said, we will see a deeper dive into treasuries.

>> jeff, thank you so much. ty, up to you. >> thank you very much, sue. republicans and democrats are obviously having problems rising above our wealth editor found one business person setting an example. robert, give us this nice news we need it. >> this is really good news. like many of the wealthy, billionaire john is fed up with washington and doing something about it. arnold the 39-year-old hedge fund manager pledged up to $10 million to fund head start programs closed because of the shutdown. now the money will help reopen seven head start programs in six states. arnold said the shutdown has caused severe disruptions in the lives of many low income americans and we believe it is unfair that young children from underprivileged communities and working families have to pay the price for the legislature's collective failures. this money only enough to fund the programs through the end of the month. the government has to get it together since the private money cannot replace government commitments. he's not asking other wealthy

people to follow but maybe this could lead to more gifts to fund what the government is not. >> thank you very much. interesting idea from that individual. sue, going down to you. >> i'll take it, it ty, generous idea from that individual. we're calling it glitch gate. problems with the obama care exchanges persist unfortunately. a website developer gives the three most important fixes. plus, should health and human services secretary kathleen sebelius be fired over the mess? we'll talk about that. she isn't talking to us but did talk to jon stewart on comedy central last night and he really went at her. we'll have that for you. hedge fund titan john paulson is passionate about pianos, steinways in particular. he bought the piano maker steinway. the ceo joins us with the talented family called the five browns and they will take us out to commercial break. ♪

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♪ >> that is the five browns. they are playing live at the steinway and sons studios in queens, new yorkp. this is a family of five siblings and they were all admitted to the julie yard school of music at one time. the first time that's ever happened. they play beautifully. their first three cds went to

the top of billboard's classical musical chart at number one. beautiful music. >> wow. that is really an impressive sight. talk about impressive obama care and damage control. jon stewart tore into u.s. health and human services secretary kathleen sebelius on "the daily show" last night over the exchange glitches. take a listen. >> nice to see you. >> we're going to do a challenge. i'm going to try and download every movie ever made and you're going to try to sign up for obama care and we'll see which happens first. >> okay. >> how many have signed up thus far? >> fully enrolled i can't tell you because i don't know. >> let's just say it was not a pretty sight there with mr. stewart, who can be very clever. now exactly what did go wrong and how big of an issue is it to fix? joining us is john wet early,

developer with oria solutions. john, welcome to "power lunch." so what went wrong here? >> thank you. >> what's been happening? >> well, it seems like people have been having a lot of issues signing on to the site, even accesses the site at all. as you can see now we have the site up here. over the past couple days it's definitely gotten a lot better. but we're still having some errors. i created a log-in earlier today and still getting errors as you can see. >> you were able to log in to establish an account or not? >> i was. >> you were? because i tried last week and i wasn't, but admittingly that was last week. are the problems that arose here, obviously partly programming, but were they mostly driven by volume and couldn't you have tested against the volumes that they experienced? >> well, i mean you can assume that. it's kind of hard to tell.

with a site that's getting traffic like this, one would hope that they would test up to, you know, a very large volume. but they were only expecting 50 to 60,000 people and on day one 250,000 people tried to sign up at once. >> it feels to me like they should have gone back to the colin powell doctrine when asked about how many troops you need, take the number you need and triple it, so if you took the number of people you expected and then you tripled or quintupled it maybe you would have found out what the problems were. now let me transition here. if this was a client in the private sector, what would have happened here? would the company that designed the software be fired immediately? who would have taken the hit here? >> well, it kind of depends. i suspect that with a website like this, you can't really fire

the people right away, just because it's such a large endeavor, there's so much time and money already invested in this one website, to bring in a whole new crowd of people to fix it, you know, there's a whole ramp up time. it would -- it's kind of -- you can't really ask -- >> you have to dance with the girl that brung you, i guess is what you're saying. they're the ones that designed it and ultimately will be able to fix it fastest down the road. down the road there will be some consequence, i would think. thank you very much, we appreciate it. >> you're welcome. >> ty, the glitches we're talking about certainly make it feel as though it are a lot of losers in obama care right now, but actually that is not the case. there are some very big winners and bertha coombs has been following that part of the story for us. hi. >> goldman sachs today raised its rating on the urban mares

with acute care emergency departments seeing more of their patients covered by insurance should help reduce the burden of bad debt. united health's alan miller says more insured is definitely a positive for his company. >> the industry in acute care runs between 12 and 20%, as you know people present themselves in the emergency room must be treated. and so many of these people have no coverage. >> now they will have coverage, once they get enrolled. year-to-date hospitals have already outperformed the market quite handsomely despite tougher reimbursement rules. deutsch bank analyst says next year the industry should start seeing higher patient volumes and revenues. >> we've done a lot of analysis around this. we think there's about $3.5 billion of incremental revenue opportunity through the health care reform that should benefit

the sector. >> he and a number of other analysts say the higher volumes of insured patients even at lower medicaid rates should offset tougher reimbursement rules. >> thanks, bertha, very much. dominic chu has a market flash. >> a monster move for a major energy drink maker. monster beverage, appears to be connected with a bmo capital research note. they're citing data that monster beverage saw sales grow by around 10% last month. bmo has an out perform rating and a $67 price target on their shares. as you can see session highs for monster beverage. >> dom, thanks. health and human services secretary kathleen sebelius facing a lot of heat over the obama care glitches. what should she be doing right now? is the middle class the new poor? star of cnbc's "the profit" ceo of camping world, great to see him back on "power lunch." we'll get his take on all of that when we come back. jackie: there are plenty of things i prefer to do on my own.

but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. [ bagpipes and drums playing over ] [ music transitions to rock ]

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♪ all right. power rundown time. confusion seems to be the hot topic today. helping us sort out some of that is marcus, ceo of camping world and host of cnbc's "the profit". we'll see him again soon on cnbc with another flight of shows. jon stewart criticized health and human services secretary kathleen sebelius for problems with the rollout of the new health care exchanges. so should sebelius take some of the heat? what do you say, marcus? >> as a corporate executive you have to take the heat. at the end of the day what happens below you is your responsibility. roll up your sleeves and take responsibility. >> should she offer her resignation to the president sp? >> absolutely not. >> should the president ask for it? >> no. that's ridiculous. >> why. >> this is a herculean effort. lot goes into it. take ownership, be honest and if there's a mistake get it if

fixed. >> let's talk about as a corporate executive, you see the impasse in washington. how would you broker the two sides together? on the one hand, the administration says there are certain things that are just not negotiable. we're not going to negotiate with a side asking us to dismantle a prized piece of legislation. we're not going to negotiate. but on the other side they say we need to sit down and talk about it, they have legitimate issues. >> everybody will negotiate at the end of the kay. we will get back to the table. i'm more embarrassed as a citizen that my employees, these hired employees, although they have a contract and they're there, are acting this way. it's really putting us in peril and creating a lot of instability. >> is there a legitimate reason not to negotiate? >> no. >> is there ever a legitimate reason not to negotiate? >> yeah. there is. you don't negotiate with terrorists. okay. so when people get very extreme and start threatening, you want to put your pencils down. in this case, you're obligated

to sit down at the table, you're obligated to listen and obligated to compromise. when you say i'm absolutely not going to do it, then everybody just has a stalemate. >> the government shutdown is forcing the closure of hundreds of camp grounds and national parks around the country. has this affected your business? what have you seen? >> it has. i've gotten feedback from customers going out on the road trying to do things with their campers, show up at the state parks but the parks are closed and nowhere to go. it is a problem. >> are you seeing people are holding back? not spending as much in your locations or what? >> we're not seeing the spending go down but we are seeing use j and roadside assistance is a big part of my problems and the claims have dropped dramatically. >> former president jimmy carter says there's a clear indication from what he sees that the middle class today are really a new class of poor. that the middle class are living at a standard of living roughly

where the poor did when he was president. we know that incomes have stagnated in this country over the past 25, 30 years. what do you -- how do you react to that statement by president carter? >> there's still a class lower than that and that's the unemployed. we have the unemployed and what he's calling the poor, i'm calling the middle class, i'm struggling with some of those wages. they are stagnate. the economy has to get going again for the wages to move. i would not agree with him that there are two classes. >> that there's -- >> i would say there are three classes and unfortunately unemployed is still one of them. >> thank you very much. great to be with you. >> thank you. >> appreciate your opinions every time out. sue, down to you. >> great to have you back, marcus. to the bond market now. rick santelli tracking the action at the cme. we had a c-minus auction. how have we done post-action? >> you know first i would like to show a one month bill chart going back a couple weeks. granted that's the old bill. hovering just under 30 basis

points. new one went off at 35 basis points and i made an incorrect date, the high ceiling going back to 2008 not 2007. all short maturities are starting to reflect the dynamic of anxiety in the period that may have a glitch in flows which is what's going on with bills. whether you look at a two-year note, currently the highest yield, back to mid september, look at a three year which we auctioned about 30 minutes ago, you can see that it is affecting short maturities. when you go to the long end of the market, 10s and 30s, not seeing that dynamic there. we will monitor how alls this figures in and try to call as many money market sources as we can to see if we can handicap some of their anxieties to see how well or unfounded they may prove to be. sue, tyler, back to you. >> i'm sure that will be incredibly interesting. thank you very much. we're watching the stock market right now which is down 90 points on the day and the metals markets which are

starting to close. we've seen gold come off of its worst levels of the day, not by too much though. it's been a choppy session, down just a fraction on the day at 1324.80. everybody's kind of waiting to see what comes out of washington on an hourly basis. a reminder that the president is going to be making a statement in about half an hour from now. we rarely hear from him, but today, you'll hear from hedge fund legend john paulson talking ability one of his greatest plays. emphasis on play. plus, what happens when you give a bunch of high school kids $100,000 to invest in this market. the results might surprise you. and president obama as i mentioned set to speak at the white house briefing room. take questions about the shutdown and the debt limit. we'll carry it live at the top of the hour. stay with us. [ banker ] sydney needed some financial guidance so she could take her dream to the next level. so we talked about her options.

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in his final letter to shareholders, microsoft ceo steve ballmer says he took bold steps to turn the company around, quote, we are still in the early days of our transformation yet we made strong progress in the past year, launches devices and

services that people love and businesses need. as you write in this assessment, bring back marcus star and host of cnbc's "the profit" and cnbc's tech correspondent john fortt. how do you grade him, john? >> that's a tough one. i would say probably a b, b-minus given the enterprise side of the business did do quite well under his tenure, billions of dollars in revenue added that wasn't there before. the part that we tend to see, though, the consumer business, very much a mixed bag. xbox did well but that core pc business, very much overtaken by mobile. microsoft still struggling to come back from that. >> marcus, same question to you. from your viewpoint and from your observation of mr. ballmer's tenure over the past dozen or so years, how do you think he's done and is there a point at which a ceo kind of needs to move on? a point at which you've used every trick in your bag and it's time? >> i'm going to give him better

than a b-minus. the company is still profitable, stable. maybe he wasn't as innovative which is why he doesn't get an a. in any company there is a time when new ideas are needed. time to bring in flesh blood and people with new strategies and techniques and every company needs that once in a while. >> john, question for you in "the new york times" an interesting article about microsoft founder and former ceo bill gates, and what his future role at the company might be. some people think that having him around and involved in the decision making over who the successor would be is an impediment to the company's evolution. others feel that we really got -- would get jazzed if he came back and started running the company again because he's an inspiring figure. what do you see? >> tyler, i think the people who want to see bill gates step away are people who want to see microsoft broken up, maybe sold off for parts and not a lot of

those people are stepping forward on the record and making their case. but look, i'll say this, when you look at the companies in tech right now, look at larry paige at google, stepping up into the ceo role at a critical time for that company during a mobile transition. michael dell, increasing his skin in the game, with dell, at a critical time there at intel putting brian in the ceo seat. his core competency in manufacturing is seen as their main differentiator right now. it's kind of a gaping hole for microsoft right now. bill gates is the one person with the technical know how and left to make change happen quickly there but doesn't seem to want to come back full time. >> marcus, you founded companies, ceo, is there a point which the founder needs to step off stage? >> absolutely not. >> absolutely not. >> in fact -- >> do you think that microsoft would benefit if he were more

involved? more engaged? >> i don't know that he needs to be more involved but to even make a statement, for anybody to make a statement he shouldn't be involved in the case, it's like asking walt disney to get away from disney world. even if it's for public or investor relations or confidence of consumer in the brand, people think of microsoft, they think of bill gates. a lot is marketing. >> all right. marcus, thank you very much. john, thank you very much. interesting conversation there. we appreciate it, guys. sue? >> gentlemen, you're going to look at the white house briefing room where president obama will speak at about 2:00 p.m. eastern time. he's going to make a statement. we're told he is also going to answer questions. we will bring them both to you live. we're watching the market. we're down triple digits off 100 points on the dow jones industrial average. "power lunch" returns in just a moment. americans take care of business.

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all right. watching the dow jones industrial average, which is off and on touching down 100 points. the s&p 500 is off 13 points on the trading session. that's down better than three quarters of a percent. the biggest loser percentage wise is the dmnasdaq. definitely a negative day on wall street. neiman marcus just unveiled its 2013 christmas book because there are 77 days until christmas. here are two of the many fantasy gifts available this year. at $150,000, a bespoke fall can caneny cam, everything you need including a 20 karat gold perch and exotic skin hoods. i'm assuming they are for the birds. but who knows.

for the first time ever an overnight stay at the glass house built by philip johnson. $30,000 lets you and ten friends experience one of the 20th century's most iconic structures in america. but, of course, in order to afford all of that you have to pay a lot of attention to your 401(k). and 401(k) auto enrollment is supposed to make it easier for you to save for your retirement but does it help you save more. a report finds some workers will receive less for their retirement if their employer uses that method. boston college's center for retirement research found that through auto enrollment in 401(k)s it raises participation but means lower employer match rates for workers. employers who are auto enrolling cover a larger percentage of their work force. aside from lower match rates lower default worker contribution rates and overall wage reductions could hit workers if employers need to offset their rising costs. something to keep in mind for sure.

let's go over to dominic chu, he has another market flash for us. >> hey, first it was janna partners now tpg and they're in on the action for outer wall shares. hedge fund tpg disclosed a 5.1% stake behind red box and coin star. you may recall acty witt manager janna took a 13.5% stake. outer wahl shares have risen 37% since mid september. back over to you. >> thank you very much, dom. steinway's near $500 million sale to hedge fund titan john paulson's firm is complete. the ceo of the iconic piano maker will join "power lunch" first on cnbc right after this short break. but first, the fab five, the five browns on five beautiful steinways. let's listen. ♪

we asked for your take 340% say he's -- 3% say he's right, 19% say he's wrong and 47% say the middle class is disappearing in this country. sue? >> ty, let's switch gears a little bit. when john paulson unexpectedly bought steinway last month many on wall street wondered why a

hedge fund manager was interested in musical instruments and a musical instrument maker? for the first time paulson explains why he considers himself the guardian of this american icon. >> i grew up in a family of pe yan mo players. both my sisters were serious piano players. they both as they became more accomplished players, aspired to buy a steinway and kept asking my father to buy a steinway. and we at that time they were playing on an upright piano. my father did his shopping. at the end of the day it's not something we could afford. he did do a big thing, he bought a baby grand piano and brought it home but it wasn't a steinway. i remember my sister crying at that time and i realized, you know, how powerful the draw was for musicians to play on steinway. steinway has found a home. i hope to be an owner for a long

period of time. i'm under no pressure in terms of meeting any particular financial goals or earning goals. my goal in owning steinway is to first of all preserve it and to ensure the greatness is continued in the particularly the quality of the instrument. >> let's meet the man behind the deal, the ceo of steinway, michael sweeney joins us. such a pleasure to have you here. welcome to "power lunch." >> well, thank you for having me. i wish you could join us out at the factory today. >> i wish i could have too. next time around, i'm there for you. you know, it seems as though thin this is kind of a financial match made in heaven. john paulson, obviously, is passionate about the company. he's passionate about the brand. he wants to preserve it for future generations.

this was not simply a financial deal for him. it seems as though that's the perfect match with your company, is that a correct read? >> i think it is, sue. we were delighted that john was the ultimate buyer of steinway. our selling shareholders received a full and fair price, but steinway now has a steward, an owner, who understands and cares passionately about our mission, that is the perfect combination for us. >> you know, he says he wants to be an owner for a long time, but i also got the sense in reading some of what he said at the time of the deal, that although he's going to be actively involved he won't be involved in the day-to-day operations, that he will leave that to you and your team. >> well, i hope john will be involved. i mean he certainly has a large pool of assets that he's responsible for and steinway, i know, is important to him. we hope he'll be deeply involved with us. but he does have a management team here at steinway that's been intact for quite some time

and we're making good progress in the business but we look forward to his advice and counsel as well. >> what are your hopes for the sfwhis we're in a challenged economy, albeit getting better, still a challenging environment, a steinway is a major investment for people but they tend to keep it in the family for a long period of time. so as you look out over the next five to ten years for steinway, what are your hopes? your goals? >> you're right, sue. a steinway piano does last for a long time d holds its value and a key part of the steinway for many years. but there are large parts of the world that have not really had access to steinway yet. we are expanding our business quickly in china, brazil, russia, and other developing countries. giving people in those communities that are creating new wealth access to the highest levels of our culture and that's a big part of our mission. >> will that be, do you think, ultimately the lion's share of

your revenue stream from emerged markets but perhaps outside of the united states? >> well, the american market is still our largest market by far and western europe is very strongly in second place. but, of course, the asian markets and the other developing countries will be a big part of our growth. but by no means are we reducing our focus in america and western europe. most importantly, our true focus is on the great artists that play steinway, the great players of the piano around the world will be our core market. >> have you ever seen anything like the browns who are, you know, been playing fors us throughout "power lunch." i've never seen five siblings all one, get into juilliard at the same time and play so beautifully and passionately together, it's quite extraordinary really. >> we haven't seen anything quite like the browns and i don't think the music community has either. five siblings that are that talented, talented enough to be in juilliard together.

we've grown up with the browns in many ways since 2005 w ef a we've been working with them and many of us from steinway will be at carnegie hall october 18th. >> we hope to be able to see that. has the labor issues at carnegie hall impacted your business at all? what do you think of what's going on? give yours opinion if you would. >> i'm delighted the strike has been settled. carnegie hall sits at the center of the musical community. they did a masterful job at finding a compromise to keep the music playing. we were disappointed the opening night gala was disrupted and i missed seeing the philadelphia orchestra which i was looking forward to. it was only one night, only one performance missed and the music goes on. >> indeed. we are glad they settled that perfect note, pun intended, to leave it on. thanks, mr. sweeney. nice to have you with us today. >> my pleasure. thanks for having me.

>> ty, up to you. >> all right. thank you very much, sue. when it comes to high school academic clubs are a dime a dozen but one club in a texas private school is actually looking to make a dime or a few thousand giving wall street a run for its money. jackie has the story. >> >> industrial conglomerates have been up 11.5%. >> reporter: this is green hill school, a private school located just outside of dallas, where the student business club has taken mock investing to a whole new level. giving up on play money and using cold hard cash, thanks to large commitment from the school's investment committee. >> we asked for about $30,000. and that was eventually raised to $50,000 when we got a positive response from the board and that eventually became $100,000. >> reporter: hank and louis are seniors at the school and the club's copresidents.

>> a lot of research knowing what they're doing and what they're going to do. >> we want to know how, you know, syria will affect, you know, united technologies and stuff like that. >> reporter: it doesn't hurt that louis's father is clinch carlson of carlson capital and a member of the investment committee. >> that's one thing i've been impressed with, how much the students care about performance. >> reporter: and students involved have taken interest in subjects that they never thought they would. >> some might not think reading about coal plants is an interesting thing but it appeals to me. i don't know why but it does. >> reporter: the club is tracking the s&p in terms of performance so far but that isn't good enough for louis carlson who has his sights set on a different index, that of his father. >> i want to outperform the endowment that he manages. that's just like a goal i have, just, you know, to prove i can do what he can do, but better. >> reporter: in adson, texas, jackie deangelis, cnbc. >> it has been five years since

bernie madoff's ponzi scheme revealed and now some of his former employees are on trial. we'll bring you the latest right after the break. ♪ evto earn degrees in mathan stand science.ut but more than half leave their programs.

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hard to believe but it has been five years since bernie madoff's ponzi scheme was revealed and his former employees are on trial. senior correspondent scott cohen is live in manhattan at the courthouse with the latest. hi, scott. >> hi, tyler.

five years out this could be the clearest look yet inside the fraud that shocked the world. bernie madoff, to this day, insists he acted alone. the feds are out to prove once and for all that he did not. five former employees on trial, they include daniel, the former head of operations, who was a 40-year veteran of the firm, and annette, madoff's assist the and account manager, 40-year veteran, joanne, an account manager with the firm, and also jerome, and george, who both designed some of the software. all are accused in various ways of falsifying records helping to cover up the fraud, all have pleaded not guilty. picking a jury in a case that involves the most financial fraud of all time is no easy task. they started with a panel of about 400 people. they filled out questionnaires last week. that weeded out about 160 of them. they are slowly but surely questioning them not just about the household names involved in

the fraud like bernie madoff and members of his family but the household names who may have been victims including the likes of kevin bacon and zsa zsa gabor. we also learned outside the presence of the jury today that three of the defendants, krupp, o'hara and perez were offered plea agreements and they rejected them. we go ahead to trial now. it's likely to take five months and sue and tyler, this jury selection is likely to take the bulk of the week. back to you. >> understandably so. thank you very much, scott. >> president obama a reminder will be speaking at the white house briefing room in just a few moments. he's going to speak and then take some questions from reporters. we'll bring you the statement and questions live. power is back in two. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters.

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as the government shutdown continues and possible default looms we await the president speaking at the top of the hour from the white house briefing room and he will be taking questions at 2:00 p.m. sue, it's 111 points lower for the dow. it will be interesting to watch it over the next hour. >> yes. you know, the traders down here are watching and waiting to see the tone of the president's

remarks today, ty and the questions that are asked and the tone of the answers. they're looking for some sort of negotiation ors resolution. they would like to see both sides get together and right now, as the market is telling us, it doesn't look like that's happening. that will do it for us on "power lunch." >> we'll see you when you get home. "street signs" begins right now. >> you are looking live at the white house press briefing room. at any moment the president expected to make a statement on the government shutdown and expected to take questions from the press corps. welcome, everybody, to "street signs." kind of a special day here. mandy, we're going to be taking the president momentarily, although we know he's sometimes not at the time he's supposed to be on. >> how dare you suggest he could be tardy, the president of this fine country, we will get to him as soon as he comes out into the press briefing room. get to eamon javers at the white house to find out what exactly we are expecting him to say, eamon. do