i have no faith." i'm jamie colby. thanks for watching "strange inheritance." then, had weekends and good night from new york. >> announcer: from fox business headquartersman and new york city the new week. maria: welcome to "wall street week." i'm maria bartiromo. coming up in just a miewf moments, a legend in the silicon valley, cisco's chairman john chambers talk us about where the growth is now. america is reeling from the mass shooting in las vegas sunday night. 64-year-old stephen paddock killing 58 people and wounding over 500 others.

paddock's motive remains unclear. 17 weapons were found in his room as well as bump stocks, a legal device that makes a gun shoot more rapidly. even the nra has signaled it will not oppose it. president trump and the first lady visited the victims and thanked the first respondsers. >> we pray for the recovery of the injured and those injured officers who so:bravely threw themselves into danger when duty called. and we grieve the loss of the law enforcement personnel who were killed in this vicious attack. maria: the president also visited puerto rico tuesday, meeting with victims of hurricane maria. he caused a stir when he told geraldo rivera he wanted to clear puerto rico's massive debt. >> we have to work something

out. we have to look at their debt structure. they owe a lot of money to your friends on wall street. they will have to wipe that out. i don't know if it's goldman sachs or whoever it is. maria: the administration walked it back but not before the boonds other securities plummeted. the economy lost 33,000 jobs, declining for the first time in six years. that was worse than expected. some people believe it's the result of the hurricane season. the stock market hit another big week with more records. ending the week in the green. the former equifax ceo was grilled on disclosures the breach even hurt more than

originally thought. amazon reportedly developing its own delivery systems. and netflix announcing it will be raising prices on its u.s. subscription this month. it will go up $13.99 and the standard plan $1110.99. john levin is with us. this market has been incredible. it's up $5 trillion since election day. but you are sceptical. >> trump is good for the market so far. maria: would you buy new stock today? john: yes. many companies.

i think it overwhelming idea, it's men a momentum market for a segment of the market. good earnings, good product and things. many stocks have not participated fully and are down. i think it's a split market. maria: you mentioned earlier that the russell 2000 up deks is not seeing earnings growth. would you buy the russell? the small and mid cap companies are expected to be beneficiaries of the new tax plan. >> there is a smaller portion of companies that would benefit from a reported tax standpoint. there is a difference between cash flow and taxes. however, a little more than 2,000 companies because of takeovers and addition. we believe more than 30% of them

have no earnings. it's a momentum trade so people are buying without knowing what the index is. we think between 50 to 200 times earnings. it's not investing to buy that index. maria: how do you want to invest? we are on the doorstep of the third quarter earnings. the banks are kick things off this coming thursday. a lot of people feel the banks will do well on this prospect of a tax reform package. the s & p earnings are said to be up 4%. john: i would like one company at a time to invest in, its new products and what the executives are doing. there are plenty of examples. and plenty of stocks that are down a lot.

many of them have leverage or energy. the market remains split and opportunities exist. and some of the disappointment like citlike citicorp, there ars that are up that we think are interesting. maria: you said a lot, john. john levin joining us. we'll talk with cisco executive john chambers coming up. >> announcer: from a tighten tech corporation to a billion dollar startup. john chambers ex chains why he's

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end of this year. but he's joining the board of sprinkler, a $108 billion dollar unicorn. he will be knee deep in startups. i asked him about his move into the startup scene and his 20-year legacy at cisco. >> cisco was an exciting time. i joined the company coming just off $70 million in seats and bright to $50 billion. we moved to 70,000 people. we took the internet and instead of selling routers and switchers. we said it changes the way you work, live, learn and play. we did this by being customer driven, focusing not on competition but the transition of everything in the internet and combined those on products that focused on outcomes.

we called them architectures. we acquired 18 some companies while i was ceo and we had strong internal ability for innovation. in terms of where the market is going. the next generation of technology will in the digital world. every company in the world, retail, healthcare, government, et cetera, will become a technology company. you will move from connecting a thousand device to the internet to 500 billion in the future. this will allow to you ching business models and introduce huge levels of competition and productivity. this is where you see each country become a digital country like in france, and india. future startups is where all future growth will in the future. maria: tell me why sprinkler is

so important. >> you know if you look for the next decade or two, large companies will not grow. 40% of them will go out of business as digitization occurs. and 25% of what we do in our jobs will disappear. if we don't excel rate startups in this country across all states. my home in west virginia. cleveland, ohio, et cetera, as well as berlin and paris and tel aviv and new delhi. it will be the generation of all job growth. just like we did with the internet when i said it will change the future. i think you will see digitization change the future. the startups will seat inclusionary possibility for people to participate in this transition. when i look at a company like

sprinkler, is there a market transition going on. a parole mod until somebody she or he can bounce ideas off of. can they like we did at cisco become the number one or number two player. who are the lighthouse players. can i help a company dramatically grow. to be their business partner and advisor, that will be exciting. maria: one of the issues larger companies are facing, they can't possibly mine all the data out there themselves. sprinkler was able to mine a lot of date ar. talk to us about why this data is so critical. >> if you think about digitization, it isn't just the $500 million device it's getting the information to the right person at the right time to make the decision.

that's where artificial intelligence and the cloud comes in. it allows you to mine the data and allow you or a machine to make the decision. the data is you and i are going to run in the new york marathon. you have don't many times. nike will see we are talking about social media and i'm talking about buying shoes. they will if you are out nike shows. here is what the temperatures will be. they also help you on what you should eat. there are different times of customer relationships. this ties to my overall position for all the startups i'm doing. you are seeing startup after startup to cast these market transitions. i do a lot of things i can do better. but i don't miss market transitions. we combine productsage outcomes.

if i do my job right you will see these 10 to 14 companies, perhaps 3, 5 or more go public. and so far each one of them is on a tremendous role. my ability to get market transitions right. part of them are in paris, germany and india, then say how do we create a startup nation again in the u.s. where we create 300 public companies. ipos are the tip of the iceberg. the more companies going out of business than into business. you know that means there will not be jobs if you will 5-10 years from now, especially in mid-america and the southeast where i am from. i see this in every location. maria: the number of startups going public in the u.s. has dropped in a big way. i want to ask you why you think that is. but let me stay with what you are doing.

you are investing in 10 to 12 to 14 startup companies around digitization, artificial intelligence, machine learning, all of these in your opinion are the growth stories of the next 10 years. when you were at cisco driving growth you came up with the idea of the smart home and connecting everything in your home. you drove business in terms of the cloud. this is where the business was, cloud, growth there big time. a smart appliances. all niece appliances talking to one another. there is real growth there. you are smiforting a little in terms of the growth -- you are shifting in terms of where the growth is. it's coming from different places. a little bit after pivot. john: that's right. we started off providing the internet just to large companies. we said this is how voice will be done over the internet with

voice will be free. and we got the transitions along the way. we are about to do it again. i love leading market transitions. my goal is an aggressive one of doing a startup nation, startups in every state in this country and a startup world. you will see me partner with israel and france and india, with prime minister modi in under yeah. and watch macron of france. france got it right in terms of startups. they used tontd worst place in the world to do business. literally in 2 1/2 years they moved from 120 to 130 start ups per year to 486. maria: they changed the labor laws. john: yes, they did. they said how do we partner to create the right environment for

entrepreneurs. maria: don't go anywhere. more my interview with john chambers after this short break. >> announcer: silicon valley icon john chambers says he this is what it's all about, jamie -- helping small businesses. damage your vehicle? we got you covered. [ glass shatters ] property damage? that's what general liability's for. what?! -injured employee? -ow. workers' comp helps you pay for a replacement. what's happening? this is carla. how's it going? and if anything comes up, our experts are standing by. ♪ boo!

>> announcer: welcome back to "wall street week." now more of mariann maria bartis interview with john claim befers cisco. maria: 20 years ago an article said robots will take over and replace humans in terms of jobs. what do you believe are the risks.

someone told me if you are not in machine learning, you are going to fall behind. but what is the downside risk? john: i think you said it well. i think the upside risk outweigh the downside risk. in the 90s the average american's household income went up. the last time america got a pay raise. every company, every job will have to have technology skills. it doesn't mean you have to understand artificial intelligence. but it means you have got to go upscale in terms of your skill level. and how schools k-12 train people for how they use technology going forward. i think the concern is is 30% to 40% of the jobs we do today going to be displaced?

the answer is yes. we as a society do not do our jobs if we don't change the education system and create a new generation of startups to absorb this workforce. maria: if we are going to see 40% of the jobs go away. that would be why we haven't seen the number of ipos we could expect. is it the bureaucracy of regulation? john: let's get back to 200 where we were on the nasdaq, then get up to 400. then say what do we have to do from availability of capital investment and coaching across all 50 states. is have my startups in atlanta and texas and illinois and west

virginia and silicon valley and say how do would make that happen? and how do we set a model those can follow for it. you asked a third question. maria: the third question was about the regulatory environment. is that one of the reasons we saw the number of ipos slow down? saying i would rather say private. i think that's one of the reasons the president has been trying to roll back regulations. john: if you look at the number one issue the entrepreneur faces, it's availability of capital it's also an issue in terms of the tax rates are non-competitive. as an entrepreneur if you have to pay tax rates with the regulations it's too hard to start. too often these entrepreneurs are just paying off their education bills for their children -- i'm sorry, for themselves. then they are thinking about

their children and how will they get their head above water to take the risk they need. how can the government and business work together? how about a delay in the repayment of your student loan if you create a startup and maintain 3 to 5 people in that startup. how do we partner with governors with the key universities to do that? i think it's doable. by the requires -- when i started at cisco, i outlined an audacious goal. to do this through innovation, not just like the old world technology companies. but reinvented ourselves. that saw you tie products together that produced outcomes. i'll try to do that on a startedup world and startedup nations and startup companies.

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maria: it's time for a look at the market events that could impact your money. stock market will be open columbus day and the bond market will be closed monday. the federal reserve minutes from the last meeting along with retail sales and consumer sentiment are the economic indicators to keep track of. big week for the banks in terms of earnings. all report earnings this upcoming week. next week on "wall street week" i hope you will join me. we are talking with the bond king himself, jeffrey gundlach.

catch me on fox news channel sunday at 10:00 a.m. eastern. thank you for joining me this week. see you nexte. then, have a spld weekends and good night from new york. >> announcer: from fox business headquartersman and new york city the new week. maria: welcome to "wall street week." i'm maria bartiromo. coming up in just a miewf moments, a legend in the silicon valley, cisco's chairman john chambers talk us about where the growth is now. america is reeling from the mass shooting in las vegas sunday night. 64-year-old stephen paddock killing 58 people and wounding over 500 others.