His debut at the United Nations and mincing no words about the need for reform at a u. S. Sponsored event. In recent years the United Nation has not reached its full potential because of bureaucracy and mismanagement. While the United Nations on a regular budget has increased by 140 and staff has more than doubled since 2000 we are not seeing the results in line with this investment. Shery he is speaking to the u. N. General Assembly Tomorrow amid tensions with north korea. Also on the agenda syria iran and climate change. Here with the latest is Kevin Cirilli at the white house. President trump saying he wants to make the United Nations great. Not again, just great. Whats on his agenda to help make this happen . Trumpheard from president earlier today. Hes trying to pressure u. N. Members and say this has not in a good return on investment for the United States. This is rhetoric we have heard from President Trump and candidate trump on the campaign trail and what she has been largely critical of the United Nations. The flipside of that this is all about north korea. He needs the u. N. Members especially china and russia to he wants with him as to pressure to denuclearize its military ambition. Inth korea will be sitting about the front row during president s speech tomorrow. The president has been working to stopki haley criticism against rick tillerson. Julia north korea very much at the heart of whats going on. Im going to interrupt because we actually are listening to a press conference with that the israeli Prime Minister and donald trump. Lets listen to what they have to say. We are giving it an absolute go. Think theres a good chance it could happen. Most people would say there is no chance whatsoever. Of the otherbility side i really think we have a chance. I think israel would like to see it and the palestinians would like to see it. And the Trump Administration would like to see it. We are working very hard on it. Well see what happens. Historically people say it cant happen. I just want to say its an honor to have you. Thank you very much. Its great to see you again. I want to say that under your leadership the alliance between america and israel has never been stronger, never been deeper. In ways that people see and ways that they dont see. I want to thank you for that. I look forward to discussing with you how we can address callher what you rightly the terrible nuclear deal with iran and how to roll back irans growing aggression in the region especially in syria. We can discuss the way see the opportunity for peace between israel and the palestinians and between israel. Forward to talking about how we can advance both. Were going to be speaking tomorrow at the u. N. I want to say that under President Trump americas position towards israel and the yuan has been unequivocal. It has been strong. Its got both clarity and conviction and i want to thank you on behalf of the people of israel and israels many friends around the world. Mr. President. This is the jewish new year this week. I want to wish you the Jewish Community of america people happy healthy new year. Thank you mr. President. Great afternoon. Julia that was the israeli Prime MinisterBenjamin Netanyahu saying the relationship between israel and the United States has never been stronger. Clearly pushing back on the Israeli Nuclear deal as well which you would expect from the israeli Prime Minister. I love how President Trump just didnt answer that question on the nuclear deal. Saying you will find out later. Obviously donald trump is going to be meeting the Palestinian Leader tomorrow. Anynecessarily expecting big announcements as far as the middle east Peace Process is concerned. Obviously the signoff from withess on whats going on the Israeli Nuclear plan and the disarmament talks going to be critical come october. The president is using the u. N. To its full effect as a place to convene bilateral meetings. You have the main events of the u. N. But where the business really gets done is on the sidelines. Be adnesday there will meeting of the joint commission that oversees the iran nuclear and thats really where the u. S. Is expected to present its case to the International Community to save this deal is not working for us. Thats a position that has faced an enormous amount of opposition from the other signatories of the deal. Iran has said the u. S. Would face detrimental effects if it were to back out of the deal. Youre really where going to see the u. S. Make its case and say we need to look beyond the deal and target iran for its malign influence across the middle east. Shery we have to keep a close eye on what happens at the u. N. A key issue whether european leaders will be happy with what President Trump does. We were almost going to ask about north korea as well. We are not seeing those leaders here in the u. S. But we are getting sideline talks with japan as well and south korea. We will keep a close eye on those talks. Lets get a check on where markets stand at the moment. Major averages and records again today continuing the winning streak from last week. The seventhp for straight session. All three major averages are at records. If the financials that are leading the way once again. Financials in the top spot up almost 1 . Fertilizer stocks have been strong. Utilities lagging and it has a lot to do with whats going on with bond yields. We have been seeing a recent leg down in bond yields in bond prices. Another three basis points seeing added to the tally to the. That is benefiting the financials. Bank of America Citigroup jp morgan moving in tandem with on yields hurting utilities as well. Thate watching the deal has been trying to get done for a couple of years. Rite aid and walgreens. Walgreens points to revive its agreement to buy individual righted stores. Its in talks with the federal trade commission to do so. Rite aid shares bounced today. The third party left out in the cold by the other two failure to merge here. It was supposed to buy some righted stores as part of walgreens attempt to get this deal done. Shares are down once again today. Coming, theresa may versus Boris Johnson. The rematch. We will have details on what could be a brexit showdown. This is bloomberg. Shery welcome back. Im shery ahn. Julia im julia chatterley. President trump says bureaucracy and mismanagement have kept the United Nations from reaching its potential. He also said that no Member States should shoulder a disproportionate amount of the cost. The president made his comments at a u. S. Sponsored event on reforming the u. N. In the wake of last weeks terror attack the mayor says its not sustainable for the u. K. Government to keep Cutting Police budgets and expected to keep cities like london safe. On the day that Westminster Bridge attacked everyone responded. Additional two from normal police responded. The government making these cuts to london as theyve been doing since 2010 by the end of 2020 will have lost more than a billion pounds from the budget. The mayor added londoners will see what he calls an enhanced police presence. Russia is criticizing the latest report by you and investigators into syrias war as biased and is denouncing alleged war crimes committed by the u. S. Led coalition. Russian Officials Say the report doesnt contain a single word about war crimes committed by the u. S. Military and its Coalition Partners during the storming of raqqa. The report faults u. S. Forces for not taking all steps to protect civilians. President trumps childhood home in queens new york and had surprising visitors this weekend. Its ahead of the u. N. General Assembly Meeting this week. The Trump Administrations travel been still remains in effect. House through airbnb for 725 a night. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Boris johnson heading for a brexit showdown with theresa may. Aer the weekend he penned 4000 word essay about his vision for postbrexit britain that some saw as a thinly veiled leadership bid. With more details from london is executive editor for international government. Great to have you with us. Clearly Boris Johnson that the u. N. Meeting and he has made some comments. He has said there is one driver but the transition should not be too long and that people are barking up the wrong tree when asked if hes going to be resigning. What a debacle this is. He does seem to be softening the tone from a pretty punchy article that he wrote about what could and should look like and where we are headed right now. Were fleeing the scene of the crime. Clearly he is being a little bit disingenuous. He is trying to pretend like things are all well in the kingdom. Clearly this was a direct challenge to the authority of Prime Minister theresa may. Severely weakened after the election earlier this year. Of them might say that theresa may is in the driving seat. Clearly the divisions are very deep and Boris Johnson is making a play for a future world to perhaps be future role to perhaps be Prime Minister. Remains what theresa may will do about it. She was criticized for not firing him right away after the article over the weekend. Week is young. She is making her big speech on brexit and we will have to see how johnson reacts to that. Will he say when the Prime Minister lays out personal for the next stage of brexit talks. Isry how politically strong may to fire Boris Johnson . Shes not very politically strong. She is the Prime Minister in this is a foreign secretary who is not quite in open revolt but he has made very clear the fact that he disagrees with her and hes very happy to make that clear in public. She could do it. She is the Prime Minister. She could make the case that this is a time of national importance. What is Boris Johnson doing at this time. She could argue its irresponsible for him to be bolstering his own ambitions at this time of national crisis. Its possible there is a coherent argument you could make. A very cautious Prime Minister and its probably right now she doesnt feel like she quite has the strength to do it. Julia has he undermined his credibility in this process . Standoff with the statistics office, they have basically said the big slowdown he has of giving back or taking back the from the eu and giving it to the nhs hes actually by defending himself proved that that was not true and that he was telling porky pies. He has come a long way. He has made career in many ways withng slightly flexible what the statistics really say. For Boris Johnson hes not really going to be that bothered whether its a Statistics Agency says he used the wrong numbers are not. The most important thing for him is that he is very clearly planting a flag for the right wing of the conservative party saying i am the true voice of brexit. Brexit would not have happened if i hadnt thrown in my lot with the probe brexit camp. You should remember that when brexit is done. Canes only one leader who take us forward. That at least is the narrative he is clearly trying to leave. The question the fact hes being so blatant about this will this cause others in the conservative party to consider whether they really want someone as shameless as he is to be Prime Minister after brexit . Thank you, executive editor for international government. Secretary general of the organization for Economic Cooperation and development. He starts on President Trumps comments at the u. N. General assembly and the intensification of competition and Corporate Tax rate. This is bloomberg. Coverage continue our of the u. N. General assembly in new york city. President trump gave his first United Nations address thing hes committed to reforming the u. N. A specialis joined by guest for this weeks event. Shery im with angel gurria. Always great to see you. Thank you for coming in. We have to talk about President Trumps entrance at the u. N. General assembly. Its his first. Many people have labeled this the most tedious Cocktail Party in the world. Will he be able to navigate the institution successfully . I think he is requesting reform. The requestremember for reform of the United Nations is practically a constant. Theres also a question of looking at the costs which always a request and we have the secretary general who is committed to reform who understands the need for reform who is himself a leader and therefore understands the role of the United Nations. Those of us who have been foreign minister is very familiar with the United Nations and its workings and as head of the oecd for more than 11 years we understand. With but also for of United Nations. We understand the importance of having a United Nations that is is always and reform a necessity. Institutions always need to be their functionality and ideally reducing their costs. Im sure that is being considered. Shery we also have to talk about tax reforms. Has is one thing the oecd been working with. You published annual research on tax reforms carried out. Based on 2016 reforms implemented so it wouldnt really apply to President Trumps presidency. Given what you have seen from the u. S. Where does it stand . It wouldnt apply anyway because nothing has happened in the u. S. Have been statements. There have been comments and secretary mnuchin said in the next few weeks a few weeks ago he would give out the details of the proposed tax reform. So we are expecting. The market has reacted very positively so far and it has been doing that for a few months now. If you put together the elements rates, weion in the have been saying the United States has to reduce its tax rates. They are the highest in the world now for Corporate Income and reduce both the personal income tax and the security contributions and if you want to be tax neutral maybe you look at the property taxes. Have higher corporate as well as personal income tax. Shery how do oecd countries compared to each other . Are you seeing a trend of trying to compete in the front . Yes. Definitely. How far can countries go in bringing down their tax rates and at the same time keeping their deficits and public finances sound. Bidding on the fact that if you reduce the rates you would be getting more economic activity, more overall demand and therefore that would in itself reduce some compensation at least. Hereis a critical element even the United States. There was a proposed 15 . Always great to have you. Thank you very much. Julia this is bloomberg markets. Im duly as chatterley im julia chatterley. Shery and im shery ahn. The former National Security adviser is getting help from his family in setting up a Legal Defense fund. Feesoney will cover legal for the investigation of russian meddling into the 2016 president ial election. He is among a dozen former Trump Campaign officials who could face steep legal costs following the appointment of special counsel robert mueller. Allegedly misled Vice President pence about calls with the russian ambassador. He resigned weeks after President Trump took office. The u. S. Trade representative Robert Lighthizer gave his first major speech since being confirmed in may. He says chinas economic model represents a challenge to the World Trading system and it cant be addressed under current global rules. The sheer scale of their coordinated efforts to develop their economy to subsidize to create National Champions to force technology transport and distort markets in china and throughout the world is a threat to the World Trading system that is unprecedented. Added to theador problem with china is substantially more difficult than those faced in the past. The turkish army has begun military drills in a show against Iraqi Kurdish independence. The military exercise which takes place near the border comes ahead of next weeks independence referendum. The turkish government fears of a sovereign kurdish state would encourage its own turkish separatists. Turn he has called the referendum a matter of National Security. Excessive diesel emissions have caused more than 4500 premature deaths in europe. The tiny particles are hazardous to human health and contribute to four hundred 25 thousand estimated annual deaths from air pollution in the European Union norway and switzerland. Volkswagen was caught cheating on emissions test two years ago. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Julia the gop is only days away the boldestng rewrite of the nations tax laws in years. The tax overhaul is just another to do list item on a very long congressional laundry list. Says a budget plan has to happen before tax reform. He said no budget, no tax reform. Thats clear. That really needs to be completed by midoctober because that gives us the rules that allow us to land tax reform on. Heres congressman john delaney. Great to have you on. You are often quoted as tying tax reform to infrastructure reform. This to me sounds like something the republicans that would actually be very interested in hearing. How can you engage with anyone on the administration . Is there democratic buy in for bipartisanship . Theres a lot of things we can all agree on. Her International Tax system keeps all of these incentives to keep cash overseas and thats a missed opportunity for the United States. A we fix the system over trillion dollars would come back to the United States. Would be an opportunity of the federal government to earn revenues on overseas earnings. I have proposed pairing that reform with infrastructure. We fix the most important part pair it with and infrastructure. We have had over 40 republican support it. You want to see the money invested. If the money is back in the United States anything its used for is better than sitting in europe. Not prescribing what companies have to do with the money. If they give back to their shareholders or invest in new factories its better to have that happen in the United States inefit is sitting overseas some british bank account. Thats why im really focused on that. We just want it flowing back to the United States and invested in the u. S. Economy and we want to tie it with infrastructure. We think it would be incredibly stimulative for the economy. Right now u. S. Corporations have to pay the u. S. Tax or they have the option of deferring paying that tax and keeping the money overseas. Lower the rate on International Earnings to make it more consistent with our competitors and basically take away their ability to defer paying the tax. Shery were talking about singledigit. Probably teens. You do a different rate on the money thats over there. Its about 8. 75. Its probably closer to 15 on average. Weve had 40 democrats and 40 republicans supporting this framework. This is major tax policy and major spending policy. Julia do you see that being incorporated in what the republicans are talking about now . No. They dont want to do infrastructure as part of tax reform. They are not going to get a win on tax reform unless they focus on things we can agree on. Washington isth we focus on all of the things we cant agree on. In tax reform simplifying the code tax breaks for middleclass americans lowering the corporate rate and doing something around thoseational tax reform are all things democrats and republicans agree on. Julia the only way trump manages to get something done is some element of bipartisan agreement . Or do you think he passes something watered down . Tax reform has to be done on a bipartisan basis. To do things that really endure and those are bipartisan things. They may be able to jam through some tax cuts. Which i think would be a terrible idea. They could probably jam that through. If they want to do real reform and fix the problems with the tax code its got to be done through reform. Shery how much more complicated is the situation with budget reform on the table . The budgett resolution because they want to set the rules for how they do tax reform. Julia will the democrats sign off on tax cuts for the most wealthy individuals as long as the middleclass benefits more . No. The way we look at it theres no Economic Forecast of the future that shows that we can afford materially lower revenues. If you want to do the kind of americans that are struggling with things like the earned income tax credit its really hard to do that. If you fix the corporate system and make it more competitive than wealthy americans disproportionately benefit through that fix because they are largely the people who owned most of the investments in this country. Shery we also have to talk about your president ial bid coming up. You are the first democrat to come forward. What has been the biggest benefits and challenges of announcing your candidacy so early . A lot of people are running for president. They are just not telling people. One of the benefits is people appreciate the honesty and the transparency. Shery you raise more resources. I opened my office effectively in iowa last week. Was in North Carolina last week. I will be in South Carolina this weekend. It gives me an opportunity to introduce myself to the country listen to the voters and share with them my vision for the country. Julia whats the probability that your standing next to Hillary Clinton in 2020 . Do you think she will try again . She said shes not. Julia do you believe her . I do. Julia do you . Why . I think shes probably going to close that chapter is my debt. Bet. Are seeing Senate Republican lastditch efforts to revive the obama appealed repeal. Longterm we need a broader reform on health care that does three things. Universal access. Improving quality and cost. The thing about health care you cant talk about health care unless you talk about access, quality and cost. We need to Start Talking about. Uality and importantly cost shery the numbers are not there. The Affordable Care act is popular with the majority of American People. Most aspects of Representative Democracy are failing in this country right now. Senate if the majority of the American People do not want the senate to do something they are not going to do it. I dont think they will get it done. Julia congressman john delaney. , ray dalio has some advice for president donald trump. More from bloombergs conversation with him next. From new york, this is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Shery im shery ahn. Lets take a look at the shares of orbital. We are now seeing it rise more than 22 percent. Here to break it down is abigail doolittle. Was this deal expected . Is depends on who you talk to. I spent some time on the phone earlier with Bloomberg Intelligence analysts and he was surprised by that. Investors are very positive. Stock is hitting a record high. He said it makes a lot of sense them in theuts missile space. Plus lots of other missile technology. Companies are bidding for this Missile Defense system. The real reasoning behind mission isrategic the u. S. Is going to be replacing its Intercontinental Ballistic Missile system. By 2020. Its a huge deal. 85 billion. You cannot underestimate how big a deal this is. Has additionalp technology it will give them a big lead. We have the trump trade. There are some different pieces right now. We have stocks at alltime highs. Different pieces of it. If we look at the defense contractor piece overall we see really good gains. Boeing of 82 since november. Thats really extraordinary. The middle of the pack that some of the other names. 20 1 thats not a problem obviously shares are higher. Really lagging. This could be another reason there are looking to expand relative to the trump trade demographic or said this list to do with the trump trade and President Trumps agenda and more to do with geopolitical tensions and the possibility that Defense Budgets could be on the rise. Lots of scurrying around. Shery abigail doolittle, thank you so much. Ray dalio has some advice for President Trump, unified the country. The country. He spoke to bloombergs Erik Schatzker and gave his thoughts on what america faces today. The most important thing is to make sure that we understand what the countrys principles are that bind us together rather than those that divide us. Idea meritocratic Decision Making to try to come up with the best collective decisions. To bring the country together. In an idea meritocratic way. I think the period that we are 1937. Inds me very much of at that time it was after the financial crisis 1937. We had 29 to 32. They printed a lot of money. Asset prices went up. Interest rates went to zero and we had a large wealth gap which created populism. Bank begins to tighten Monetary Policy and then populism and a fall in the stock market. So we are once again at that precipice . We cannot have a tightening of Monetary Policy that is material. E have a very large wealth gap the top. 2 of the population wealth populations equals the bottom 90 of the populations wealth. Theres a polarity. Have both ofime we those things. You cant have an economic downturn because socially and politically we could not stand and economic downturn. Its a threat to our system. Its in many ways analogous to those tensions that conflict is in many ways analogous. Thats fearful to me. When you ask what i would recommend the president of the United States to do is to try to deal with conflict well. To bring people together. Cannot make one side in a battle and to haveer side idea meritocratic ways to get that the best decisions. Thats what i would recommend the president do. Julia that was ray dalio founder of bridgewater associates. Coming up come Hillary Clinton saying she made a mistake when she gave speeches on wall street after leaving government. Her old boss doesnt seem to share that concern. More on Barack Obamas transition to wall street next. This is bloomberg. Shery this is bloomberg markets. Im shery ahn. Julia im julia chatterley. President obama has made the well trodden transition to wall street. In new yorke spoke to clients of Northern Trust for 400,000. Next week the former president will appear at the Health Care Conference with the same amount. He will also be speaking to the Carlyle Group for an undisclosed figure. We kind of hinted that hillary nton said in her book that i did this washington to wall street thing and i regretted it. Its different for obama because she has plans to go back. I spoke to obamas friends on wall street. They all said that pretty consistently. Hes a private citizen. Giving speeches to successful people, no problem with that. Jeff hauser who is the head of the revolving door project. He pointed out that obama is one of the most important democrats in the country and hes not going to run for president but he has been an important supporter of their Redistricting Program that has to do with gerrymandering. He really put his thumb on the scales for tom perez to head the dnc. If he wants to play this Important Role hes going to have to act like it. Shery does this take away some of his credibility . Me ists interesting for the democrats are at this existential crisis. Theublicans are with clintons really embrace Corporate Power and the markets and have for years. On the other hand you got Elizabeth Warren and bernie sanders. You can feel this gravitational force. I thinkr your question if that becomes one of the biggest questions for the democrats in 2020 than obama is making more than a Million Dollars from wall streets reaches. Its going to come into play. Hes an influencer. If hes being effectively paid to make the speeches then you could kind of ties some kind of ribbon between the fact that these people are paying him and could use influence on him to influence how the party goes. It feels tenuous. I like the word influencer. Its a very 17. At the end of the day the mantle of populism which was taken by hemp to win the white house insulted Hillary Clintons ties to Goldman Sachs which was hetty ironic considering named senior Goldman Sachs executives to the white house. The democrats may want to take the mantle of populism back and say that we are the party who stands for workingclass america. Julia and obama stands in the way of that . Hes aligning himself with Corporate Power at a time when democrats may want to be turning away from it. Julia what about michelle . One day maybe she could make some president ial bid. What do we think about that . As she perhaps fallen in the same trap that hillary did . Shery 60 million is what we are hearing. That is their bidding war together. I guess i know less about the former first lady. Julia did anyone even bring it up . My reporting did not show that Michelle Obama is obama already spoke to the Carlyle Group. Few was just in the last days. Maybe these three speeches on wall street will just be a drop in the bucket and he will be giving a lot of other speeches to firms that have nothing to do with private would he. Which is Foundation Getting off the ground now and is responsible for raising money for the president ial center in chicago. Whos on the board is veterans of hedge funds, venture capital. I think its worth understanding obamas ties to the financial sector. Trump isknows the inextricably tied to wall street. Obama has his own connections. Is worth looking at. Some important questions to be asking. Also sign up for the balance of power newsletter. Get the latest on Global Politics in your inbox every day. Julia coming up, david gura will sit down with eu competition commissioner at 5 00 p. M. Eastern. You can catch all our interviews on the bloomberg with the function tv. You can find all of the breaking news charts related functions discussed on the programs. You can see it on the righthand side. Bottom left, you can ask questions. We will try to get it on. Julia perfect. From new york, this is bloomberg. It is 2 00 p. M. In new york, 11 a. M. In san francisco, and 7 p. M. In london. Welcome to bloomberg markets. Scarlet were live in bloomberg World Headquarters in new york over the next hour. A busy first day in the human General Assembly for president un General Assembly for President Trump. Dalio ready to share his Hedge Fund Secrets with the world. Artifacts ves at equifax could find themselves on the wrong side of the law. The Justice Department has launched a criminal probe into their stock sales before the massive data breach. The market is closing at about two hours time. That is get