Olivia sterns follows the opening trade of citizens financial group. Lets begin at the white house with our chief washington correspondent peter cook. President obama is calling upon World Leaders to join the u. S. In dismantling the network of debt. Death. Ork of the president used his annual speech to the General Assembly to urge those countries to follow the u. S. Lead in trying to resolve a host of international issues, everything from the Ebola Outbreak, climate change, to the crisis in ukraine. He says one issue above all others threatens the Global Community the most and that is the threat of violent extremism. The rise of the Islamic State in the middle east. He called the group a network of death. He said there would be a much more forceful role Going Forward in the middle east. He urged other countries to join the fight. I asked the world to join this effort. Sold who have joined i should leave the battlefield why they can. Fore who continue to fight the hateful cause will find themselves increasingly alone. We will not succumb to threats and we will demonstrate that the future belongs to those who built, not those who destroy. The president directly challenged people in muslim countries to do more to stop this spread of extremism and sectarian violence. To young direct appeal muslims but the president s tough words were not only reserved for the middle east. He also called out russia by name for its role in the ukraine crisis. We will impose a cost on russia for aggression and we will counter falsehoods with the truth. We call upon others to join us ,n the right side of history for while small gains can be at the barrel of a gun, they can be turned back if enough voices make their own decisions. He said there was still an opportunity for russia to pursue a diplomatic path away from the ukraine crisis. He said if they did so, the sanctions would be lifted and russian would be welcome back into the international communities. Some very tough words from the president was basically taking the u. S. Off of a war footing. Only a briefed mention from president obama, was that a surprise . It was perhaps somewhat of a surprise. He had just a paragraph in his speech devoted to the Nuclear Talks that are ongoing, saying that it is a historic opportunity for iran to look at that. One reason theres so much sensitivity right now and the cooperation of might be happening with regard to taking on the Islamic State. Iran got the reef mention, china not even mentioned by name even thegh they didnt hint at issue of territorial fights in the asiapacific. An indirect message to china is not a direct one. Peter cook join us from the white house. The largest Ebola Outbreak on record is getting worse by the hour. The virus has spread to five west african nations infecting people. 00 the u. S. Centers for Disease Control and prevention says more than a Million People could contract the disease if the outbreak is not addressed immediately. Is entitledory ebola is coming. We were talking about how disturbing this story is. Congratulations. It is exquisitely written but it is very disturbing. The subtitle reads the u. S. Had a chance to stop the virus in its tracks and it missed. What happened. The pharmaceutical companies, small parts spend about 5 billion a year on developing drugs. A lot of it goes to research but some is to go to taking those ideas that come out of research treatment. Them into so, the antibody cocktail that we know might work, it is not really gone through Clinical Trial but it has been used on two aid workers who were were with ebola and they recovered. We dont know why. Were they lucky or did it work . We are not sure. What we do know is that this treatment was stalled in a contracting process in the pentagon for two years. The pentagon said, yes, we would like to turn this into a treatment that can be stockpiled and then it took them two years to get a contract written to pay the money. At theworking Pharmaceutical Company in the way the country has to work with a Pharmaceutical Company but we are very very bad at it. I dont even know what to say to that. Is zmapp the antidote . He might be the problem is we dont know. There is a problem in drug development. You can throw lots of research, money and researchers but then you have to take a promising idea and you have to get it past fda approval to something called emergency use authorization. This, theall inability to take research and turn it into an actual proved drug, the valley of death. It is very difficult for the government to do this. There is a civilian agency that is way under funded. That is a Pentagon Agency has some money to do this but it does not seem to be very good at it. This is about biological defense. That this other drug was basically in the pipeline for two years and you have all of these other competing agencies, doesnt that slow down the process more . The does. There are a lot of agencies involved in this. We tried to draw a chart on how terrorism is handled. We are not certain we got it right. With approaching this from a governmentwide perspective is that you need to make two decisions. You need to make sure that you spend money on gloves or drugs. These things are really important. They can be applied to any crisis. They can be applied to attacks, a natural outbreak. Actualmuch you spend on drug development. Then you have to figure out how much of this is for actual bio defense for troops abroad and how much is this for citizens at home . Is this something we saw starting to come to fruition during the anthrax crisis . Inkling of that . We did. Every president relearn this lesson. Hot zoneon read the and got very worried about a bioterror. The fires or was fired when george but you bush came in and then rehired after september 11. That adviser was fired when george w. Bush came in and then september 11. Ter barack obama is really focused on this. This is not something that happens often. You dont get a tax every year, you get breaks every five or six years. Every president is to understand this is important. Is this a race against time . It is. You have to get approvals for this drug in an emergency confidence. The one rate the mccain step is that you have to manufacture the struggle. It has grown in tobacco leaves that we can do this but it takes months. Because we did not have the approval in time, now we have to start growing this serum from scratch. Does this mean that the u. S. Forhis time is unprepared unable outbreak . Yes, as far as drugs go. As far as the gloves part of the occasion, we are doing ok. We have made a huge commitment, that is a big deal, but we got a lot wrong early on. Public Health Organizations know how to handle any bullet outbreak in an isolated village. There is a protocol for that. We missed that opportunity. There is no protocol going on right now. Had we applied just basic isolation practices, we could , the who believes that we could have beat this a long time ago. It is now in a position where we are really making this up as we go along. Glendon grilli, his story in the latest edition of the magazine, thank you. Title, ebola is coming. It is on your newsstands now. Coming up, the former u. S. National security advisor sandy berger discusses airstrikes against Islamic State militants in syria. On Bloomberg Television finishes continues in just a moment. Rose. Ht on charlie egypts sixth president sworn in back in june. For more on the u. S. Airstrikes in syria, im joined by the stonebridge group. Mr. Berger served as the National Security adviser to president clinton. Welcome back to bottom line. A pleasure to be here. Subway back. Is this a National Security at schumer is ebola a National Security threat . This have devastating effects not just in western africa. I think it is the National Interest of the u. S. To try to stem this terrible epidemic. Has the International Community been slow to respond . I think so. We have fun that are in International Institutions are really not adequate to deal with this kind of epidemic. I am glad that the president and the u. S. Has responded. Exploding and beyond where it is now. The world turns to the u. S. For leadership. We have responded. Lets talk about syria. The president did address the u. N. Assembly. He said the only language understand by killers like this is the language of force. What message to the airstrikes sent to the militants and to the world . I think two messages. I think it is actually nearly work with arabwe partners. This is not just a u. S. Strike. The president succeeded in putting together an arab coalition. This is not just to the u. S. Battle. This is a battle for the future of the middle east. We were there with five gulf states. This is about more than symbolism . Yes, for sure. I think this is rather bold action by the president , to do this quickly, strongly. I still wask that expecting this. This is before they had a chance to move their things into concealment. I suspect it has done some damage to them. They will have to spend some time protecting themselves, digging in, rather than spending that time advancing. Certainly not a decisive blow. Talk to me about the politics of the decision like this. A nationale in security circle, what goes into making a decision like this and how you ensure that you can have congress on your side . It is difficult. You have to but the politics aside. It is hard for people to imagine in this lyrically charged time. You could argue the politics of an easier way. I think that the American People are behind this. It will take a lot of patience for the American People. I think our patients will add and flow. This is the right thing to do. President clinton used to say, i will figure out what the answer is you coming with the answer is, i will figure out the politics. I sold was trying to cut a swath through iran. I think the president made a sound decision. We could not have airstrikes while maliki was my minister of the rock. Malik he has so offended, outraged, alienated the sunnis that they have basically let i so come in because they hated malik he more than they feared i so. They would have driven the sunnis into lastminute hands. Blogll airstrikes do the the job . Will there have to be Ground Forces involved . Not do thees will job and we will have Ground Forces that are ours. The president says he will not have a ground mission. He is reflecting not only the politics but the nature of this problem. If we take this on as our war, we will lose. This has to be an arab or against arabs. We can provide air support, we can train them. He is also reflecting a strategic judgment. This cannot be our fight. The president will chair a meeting of the Un Security Council this afternoon, the members are expected to adopt a would requiret all countries to prevent the covenant transport of foreign fighters preparing to join harris groups. How do you prevent Something Like that, is that possible . I think that we can tighten these borders up. The Turkish Border has been very much a sieve and it has allowed foreign fighters to come in freely. There has been no new restraints. It has also allowed foreign funding to come in. We have to tighten that border, i think that we can do that. The pressure of the International Community on these neighboring states i think will be very helpful in terms of getting them to crack down. Does iran have a role . There are reports that their military has been fighting alongside the rockies. Opening fore an some sort of cooperation between washington and tehran . Well, we share a common interest in getting red of ice will isil. But that is where the interest we have to be cautious about a broader common interest. They have a different set of objectives than we do. They want an iraq very much aligned with iran. We should pursue the common interest we have now. We are trying to reach a Nuclear Agreement with them. We should be very wary of a broad alliance. He spoke a few minutes ago about the coalition that the thoseut together with arab states. I was speaking to a guest at other day, turkey is not part of the coalition. Turkey is a u. S. Ally and the only muslim member of nato and we have an air base there. This is a very good question. For a while, they had 49 hostages being held by i sold. I think they have had some reservations. I suspect you will see turkey moving more closely to the coalition, being more helpful. There are a lot of internal politics here in terms of turkey and saudi arabia, turkey and the uae. This is gaining some momentum, i think. I and that turkey will come on its own terms. The Prime Minister is a very independent man. We have about a minute left, you talked about how this could be a long protracted battle. Can you put a timeframe on this . How long will it take to get the job done . Since 2011. It is going to be an endpoint, certainly not going to be some ceremony on the battleship saying victory. I think that we will be fighting sunni extremism for a very very long time. 10this level, it will be years as some people have said, but at some level we will have a sustained battle against this new phenomenon, scary phenomenon of sunni extremism. The former u. S. National security adviser, sandy berger joining me in the studio. A pleasure. Thank you for your time. Appreciate it. Up next, well get an update on the markets. Mark halperin will be here to talk politics on the agenda comparing and contrasting. President obama and president george w. Bush. That and more when bottom line continues in just a moment. Welcome back to bottom line. We are approaching 26 past the hour. My colleague Olivia Sterns a standing by with the details. Markets showing some strength. Stocks are rising after falling for three Straight Days and they are trading pretty close to session highs. The dow is up 122 points and the nasdaq is up by about 37 points. We did get some better than expected economic eta showing that new home sales rose at the fastest pace in six years. That perhaps boosting sentiment. We are watching a couple of individual stocks that are moving today starting with citizens financials. The u. S. Subsidiary of the royal bank of scotland, those shares are up i about 6 after they started trading at their ipo price range of 21 and . 50 per share. This is the secondbiggest ipo of the year. Of course, after alibaba. Also shares of bed bath and beyond. They posted an earnings beat at its forecast and revenue for the year that will be higher than analyst estimates. The samestore sales grew faster than expected. We will be on the markets again in 30. Breaking news coming out of apple. Apple has pulled its mobile Software Update after dropped service. They are investigating reports. They have pulled their mobile software. They sell 10 million iphone 6. Apple pulling its mobile update. That does it for us. We have no update on american politics. The big story of the day, president obama speaking at the u. N. General assembly, giving a speech that was unusual by the standard of these things. How was this different than what we heard before . They have heard a lot of foreignpolicy speeches from the president. This one was distinctive, forceful. Couple of speak a weeks ago about this military campaign but today was wind ranging. Talking about all of the foreignpolicy challenges facing United States. Very straightforward, a lot of language that could come right from the mouth of george w. Bush. Theres a lot of news in the region today, one of the leaders an al qaedars of linked group, reported to been killed in one of the series strikes. Those up and going on for about 36 hours. Another beheading. This one, the first time outside of the region, algeria. A french forest who was abductive. While all that was going on, president obama giving a very tough speech, he talked a lot about different things, specifically on the question of isil. D of no god condones these terror, note grievance justifies these actions. There can be no reasoning, no negotiation with his brand of evil. The language understand by killers like this is a language of force. So, the United States and america will work with a Broad Coalition to dismantle this network. That is some very very tough language. You mentioned george w. Bush, our colleague who also writes for Bloomberg View is this specie couldve imagined for Hillary Clinton at her most pugnacious or from the mouth of john mccain. This is the not the kind of thing you would have heard from barack obama six years ago. Why this is tracking people as amazing and distinctive is this because is this pick not a great speech. White, this was lacking good and evil. And again, not just talking about events in the middle east but also across the globe. A battle between civilization, obviously he took haynes to say this is not a war against muslims or a war against religion but boy was he clearcut compared to some of what his critics have said about him in the past. The network of death. That is very striking phrase. This is a speech where one of the most striking elements is the way in which he said, the moderate elements in your committed the must not tolerate what we have seen from these kinds of extremists. Again, the kind of thing you think back when he first came back to office and one of his goals was to prepare relations with the muslim world. He is talking some very tough love, some of the language he was using. There has been on the left and right an unwillingness to see this president for what he is and he has very much, he has extended and continued the policies of the previous president with which he was supposed to represent a stark break. Thisll get the biggest attention because of world events but the fact is that what he said today about vladimir putin, but the challenge from russia was equally distinctive and in some ways a bigger break from what he has said in the past regarding the russian. A cost on impose russia for aggression and we work we will counter falsehoods with the truth and we call upon others to join us on the right side of history. For while small gains can be one of the barrel of the gun, they will ultimately to be turned back if enough voices support the freedom of nations and peoples to make their own decisions. What do you think the point is avoiding until today . Why are we hearing the rhetoric about q2 now after weeks of what has been a series of events at the president is reacting to. His grace will say that all of this tough talk is him following the polls and seeing his Approval Rating dropping, leading us to stand taller against various american opponents, in the face of various american challenges. Others would say it has taken the president some time to get to the point of real clarity. He realizes that this is someone who cannot be appealed to in terms of logic, only in the a force. First he will turn his attention somewhat to politics as will a lot of people in the u. S. Because we do have the midterm elections coming up in new hampshire, in manchester. Scott brown now trying to win a senate seat in new hampshire, very aggressive in giving a long foreignpolicy speech about National Security, going hard after the democratic incumbent. Linking her to president obama. You and your have a running debate as to why National Security will be a big issue. Is this an issue that they think will spread . Scottre is no doubt that brown is really hard. Hes basically said, you have been complicit. If you look across the country, there is a lot of dispute within the republican party. You dont have a clean kill. It is hard to make the argument that president obama is a model of weakness while bombs are falling in syria. If he liked what you saw today, you can see our own show which starts on october 6. We look forward to seeing you there. That is only here on bloomberg. Mark crumpton will be back with in a moment. Line he will be speaking with european commissioner for Climate Action next. An update topulled its operating system for the iphone after the new software caused some people to lose their surface. Cory johnson is in san francisco. The most crucial feature of a smartphone is the phone and apples new update apparently disabled that functionality from certain users. Twitter kind of went nuts with a new phone update. The first sort of update that is supposed to fix a few bugs. The Health Care Fix was in but the fix was out for the phone itself and the phone service not working for some people, a lot of people complaining online. Apple very thickly turned off that release and they told us they are actively investigating the reports of dropped Cellular Service as a result of this new update. In order for the phone to work you have to be able for the phone to work. Johnson join us from san francisco. We will continue to follow this and bring you more details as we get them. A day after the Climate Summit at the wind, World Leaders must fulfill pledges to address climate change. The european mr. For Climate Action joins me in the studio. The european commissioner for Climate Action joins me in the studio. Welcome to bottom line. Climate change is getting worse as we speak. They must deliver something that is sufficiently and wishes to earth below the two degrees celsius increase in the average temperature. That is what leaders agreed to in copenhagen, now they have to deliver the answers. Sayse Obama Administration it was a politically binding pact that sidesteps the congress. Would a level like that be binding . There are so many issues to be sorted out. Something that is legally binding because that is how we are working on our daily life in the european union. How can you make the move in one direction . The u. S. Administration has a job to do to come up with a convincing case. If something is just politically binding, how can we be sure that when you have had jordan lacks the election or when the rest of the world has had their election that this is actually binding government. It is serious, what we are talking about. It means something. Isthis a nice intention or this something that we are going home to do . There is that cap that needs to be bridged between developed and developing countries on the issue of cutting emissions. How do you bridge that gap . Us, developing or developed countries, we will have to contribute to the solution. We have to ensure a more Sustainable Growth path. Of course, those of us who are developed will have to do more who haveer than those not become a developed country yet. China is the biggest innovator in the world. It goes without saying that if china is not doing its part of the listing it will simply not be possible to address climate change. All of us have to deliver something. Points towards india, the Prime Minister. He did not attend the u. S. Climate summit this week. Do you see any evidence that india is willing to join in these cuts . I just came back from a visit and it is still early days for the new government. They do want to sort of contagion this. There are millions of people without access. What we can see, how are they doing more in renewables . How are they pursuing a low Carbon Development strategy . That is what we should ask, not total cuts. There, the u. S. And china will have to go. Without indias participation, will the talks mean anything . India has to be at the table. That is my depression with the new government. They dont want to isolate themselves. They want to come up with some contributions. I think that we should not treat china and india the same. It is very different, the admissions. It is much much different between those two bank. There is a certain expectation as to what the u. S. Will do, what china will do, the eu. We are preparing our targets for 2030. We know we have a big responsibility to be the front runner. India will follow later. He spoke about copenhagen. You understand the dangers of false expectations. What are the expectations going into paris . Theye leaders agreed that should deliver policies and agreements that could make the world below two degrees celsius. What is it that they have to deliver . Paris must deliver something that is sufficiently ambitious to make the world have a isdible belief that it possible to stay below two degrees. It is not just an agreement, we need something that is sufficiently ambitious. They can be too low. Youhere no expectations, get nowhere. The european mr. For crime in chains joining us in the studio. Forhe european commissioner climate chains joining us in the studio. The use of force is inadequate to resolve world conflict and that the unsecured council needs to be reformed. The brazilian president also said that developing nations need to have more say in decisions made at the imf and the world bank. Neither can we remain indifferent to the threat of the ebola virus in western africa. We support the proposal put forth by the secretarygeneral to establish United Nations mission for ebola emergency response. Favor will be utterly in of that mission. The president of argentina is speaking at this hour. A group of argentinas on holders might drop an effort to get investors to waive the securities clause that the country said was an obstacle to resolving its debt dispute. That is according to three investors with direct knowledge of the plan. The group had planned to start a consensus solicitation to waive the clause by the end of the month when a Coupon Payment on the overseas bond is due. That is your latin america report. We will continue to follow breaking news. Shares of citizens financial. Raising 3 billion dollars for the royal bank of scotland. It is the second initial Public Offering in the u. S. This year after alibaba. Bruce dan song will be speaking with my colleague trish regan, that is coming up at the top of the hour. Stay with us. Another check of the Market Movers is in the other side of this break. Latest headlines at the top of the hour and streaming on your tablet and at the bloomberg. Com. Thank you so much for joining us. On the markets is next. Will see you tomorrow sto bloomberg tv is on the markets. We have about an hour to go before stocks close. Stocks are trading close to session highs right now will stop you can see green on the screen. The dow, the s p and the nasdaq all trading higher. Head into the close. We did get some better than expected Economic Data showing that new home sales rose to the highest level in six years. Todays gains followed three days of losses that had some convinced that the longawaited correction could finally be here. The drop was reminded to investors of how quickly things can turn south. To look at some ways that investors can as their bets is our etf guru. Been doublingas down on the hedges against the s p. You say that its complicated. You found a lot of ways that the little guys can get in and hedge their bets. George soros is using derivatives, options. Nonderivative ways to try to hedge against the market. The first one is very boring. Holds asury bond etf bunch of long dated treasuries. At the rough patch, the market was down 2. 3 . This was up 2 . When you look at the 16 days that made up that patch, they moved in the opposite direction 13 of those days. This is a very noncorrelated way to offset your risk. You go back to 2008, the market was down big. It was down 37 in 2008. You almost offset all of your losses. Gold was only up 3 that year. Some people think that gold was up a lot more. Treasuries were like an inverse to the market. Good job of diverse affiant. You have an etf that will hedge if you think that gold will have a bit of a correction. Some people just have to have gold. The ishares gold is a less popular one. This one is interesting for investors because this charges last. It charges. 25 for year. That adds up. That Expense Ratio kind of nibbles away at your returns. Outpacing bylly about 1. 8 . Not a lot. In the vault, you might as well go the cheaper one. You have one from pimco who was having trouble on a totally unrelated matter. A pimco enhanced short maturity. This is like saying, im going to go on the sidelines. This is a Money Market Fund with a little kick. It is all Investment Grade and all with durations of a year or less. It has you a yield of just under 1 . It returns under 70 basis points. It does sound pretty good. What was the advantage of having these derivatives . Why do you want those . What you have to manage those positions and if you dont manage them right, especially in the futures market, you will roll from one month to the left and get killed by contango. Its my favorite word. We will havewe have to end it t. Thank you so much for joining us. Street smart with trish reagan starts now. Hello, everyone. Welcome to the most important part of the session. 60 minutes to go until the close. Coming up, apple pulls its mobile Software Update after reports of drop service. Pimco says they are cooperating in the total return etf. Plus new york citys most expensive apartment, not mine. Million,um of 130 street smart starts now