Guests. The first served as u. S. Ambassador to israel during his long and distinguished career. Joins us from hes coming to us from the white house. We do have excerpts here. Does the president understand how historic this could be . I think he has had those discussions with a lot of key officials. Rex tillerson to the vice is they have all weighed in on this in the weeks and months now. Some extent yes, but how does playing out in the region and how does after that speech, it will be a major factor. Paragraphsve a few with excerpts and talks about on the one hand, jerusalem has been a place where christians and muslims as well as jews have been able to worship freely. Israel of israel. What does that mean . We are not seeing to stations between western and palestinian aspirations for the capital. Important with those subjects and remarks. Way for thea president to finesse this without inflaming tensions in the region . If the diplomacy is created and the speech is nuanced, it could help the Peace Process to you not only declares jerusalem as the capital israel, but declares jerusalem of a palestinian state once created and decides to move to westerners home the survey israel, and promises to establish the American Embassy be a balanced move that would strengthen the american position. Israel, and promises to establish the American Embassy to represent palestinians. That would be a balanced move that would strengthen the american position. When be doing something of use to both sides. Be a balanced move that would strengthen the american position. When be doing something of use to both sides. It will really take us out of the game. Announcement that is going to be so divisive with palestinians and the muslim world and many of our friends, if in fact they will not even do it. To think the announcement will process,ump the peace it is naive and does not understand anything about what we have tried to do unsuccessfully for the past 25 years. It makes no sense to make an announcement and then not actually do it. Where is the Peace Process at this point . Jared kushner has been reportedly conducting peace talks of some kind. Involved. Been what we know about where that stands . A lot of time was spent over the course of the first year of the Trump Administration going backandforth across many players, palestinians as well as israelis. And other countries in the region. It is not like any major progress is in an imminent. This would not be what is delivered today. Part of the white house fornistration explanation why it is ok is that it will be a while anyway. There could maybe be a summit by the end of the year, that really never took hold. The thinking, give everyone time to cool down and if there is a desire for peace, this would not be a roadblock and that is what they are saying. Remind us of major issues. Others have been here for many years, unsuccessful, sadly. It is not only a question of the capital, but you have a right to return. What are major issues . You have been involved. The core issues in the Peace Process are a question of borders, the for both sides, the Palestinian Refugee issue, economic and other relations, of jerusalem, the most question of all of becae it is both societies. Particularly talks held in 2008 between Prime Minister and without finding a way to bounce it with Something Else for palestinians, that is not going to advance the process at this time however difficult it is to seek this anyway. President donald trump to come in and make this announcement. We heard officials and leaders weighing in on the anticipated announcement. Among them, the turkish president threatening to cut off ties with israel and we see the president is approaching the podium. Lets move in to that statement on jerusalem. Trump when i came into office, i promise to look at the worlds challenges with open eyes and very fresh thinking. Solve our problems by making the same failed assumptions and repeating the same failed strategies of the past. All challenges demand new approaches. My announcement marks the beginning of a new approach to conflict between israel and the palestinians. In 1995, congress adopted the urging thembassy act federal government to relocate the American Embassy to jerusalem and to recognize that importantly, so is israels capital. Bipartisan, reaffirmed over six months ago. ,yet over 20 years, every previous american president has ,xercised the laws waiver refusing to move the u. S. Embassy to jerusalem or to as israelsrusalem capital city. The president issued their waivers under the belief that delaying the wreck action of jerusalem would advance the cause of peace. Some say they lacked courage but they made their best judgment based on facts as they understood them at the time. Nevertheless, the record is in. Decades ofthan two waivers, we are no closer to a lasting Peace Agreement between israel and the palestinians. It would be folly to assume that repeating the exact same formula would now produce a different or better result. I have determined it is time to officially recognize jerusalem previous president s made it a Major Campaign promise but failed to deliver. Am delivering. This to be in the best interest of the United States of america. This is a longoverdue step to advance the Peace Process and work toward a lasting agreement. Israel is a sovereign nation with the right of every other sovereign nation to determine its own capital. Acknowledging this is a fact death as a fact is a necessary condition for achieving peace. It was 70 years ago that the United States under president recognized the state of israel. Ever since then, israel made its , the Church People established it in ancient times. Seat oferusalem is the the modern israel he government. It is the home of the israeli parliament, as well as the israeli supreme court. It is the location of the official residence of the Prime Minister and the president. It is the headquarters of many government ministries. Decades, secretaries of state and military leaders have met their israeli counterparts in jerusalem as i did on my trip to israel earlier this year. Jerusalem is not just the decadt of three great religions. It is now also the heart of one of the most successful democracies in the world. The israeli people have built a country where jews, muslims, and christians, and people of all faiths, are free to live in worship according to their conscience and according to their beliefs. Today, and must remain, a place where jews pray at the western wall, where christians walk the stations of the cross, and where muslims worship at mosque. All of these years, however, president s representing the United States have declined to officially recognize jerusalem as its reals capital. We have declined to a knowledge any israeli cap at all but today, we finally knowledge the office the obvious. Jerusalem is israels capital. This is nothing more or less than a recognition of reality. It is also the right thing to do. It is something that has to be done. With thehy, consistent Jerusalem Embassy act, i am directing the state department to begin preparation to move the American Embassy from tel aviv to jerusalem. Immediately begin the process of hiring architects, engineers, and planners, so a new embassy, when completed, will be a magnificent tribute to peace. In making these announcements, i want to make one point very clear. This is not intended in any way to reflect a departure from our strong commitment to facilitate a lasting Peace Agreement. Want an agreement that is a great deal for israelis and a great deal for palestinians. Taking a position from status issues including boundaries of the israeli sovereign or the resolution of contested borders. Questions are up to the parties involved. The United States remains deeply committed to helping facilitate a peaceful agreement that is susceptible to acceptable to both sides. I intend to do everything in my such an help forge agreement, without question, jerusalem is one of the most sensitive issues in those talks. The United States would support a two state solution. If agreed to by both sides. In the meantime, i call on all parties to maintain the status quo in jerusalems holy sites, including the temple mount, also known as her rom out sharif above all, our greatest hope is for peace. The universal yearning in every human soul. My administrationss longstanding commitment to a andre of peace and security there will of course be disagreements and assent regarding this announcement. Ultimately, as we work through the disagreements, we will at a piece and a place far greater than understanding and cooperation. The sacred city should call forth the best in humanity, to what is tes not to what has become totally predictable. Peace is never beyond the grasp of those willing to reach. We call for moderation and for the voices of tolerance to prevail oval over the purveyors of hate. Our children should inherit our love and not conflicts. The message i delivered at the toric and historic historic summit in saudi arabia earlier this year, a region mixed enriched with culture and history. Its people are proud, vibrant, and strong. Future is held at bay. Vice president pence will travel to the region in the coming days to reaffirm our commitment to work with partners throughout to defeat east radicalism that threatens the hopes and dreams of future generations. Many whoe for the desire peace to expel the extremists from their mists. Is time for all people to respond to disagreement with reasoned debate, and not violence. For young and moderate voices all across the middle east to claim for themselves a bright and beautiful future. So today, let us rededicate ourselves to a path of Mutual Understanding and respect. Let us rethink all assumptions and open up our hearts and minds to possibilities. Leaders,he region israeli and palestinian, judicial and christian and muslim, to join us in the noble question for lasting peace. Thank you. And god bless palestinians and got bless the United States. Thank you very much. Thank you. Thank you. Thank you very much. Thank you. Thank you. Thank you. We have been looking at President Donald Trump speaking to us from the white house. And historic statement about the United States formal recognition of jerusalem as the v is real. He said it was time for a fresh approach. Many president s talking about doing this had not done it. He even suggested it was a lack of courage on their part and said was time. This is where it has its Prime Minister, and it was time to do it. He also said this was part of an effort to have a lasting peace. It was not as clear why, but he said this was not a prejudgment of any border issues. He very specifically said that. Did not refer to whether its anything about it capital for a palestinian state but did say the United States remains dedicated to a two state solution, something that will be remaining important. We also have the former ambassador of both israel and andt when he had a long distinguished career with the United States and we have margaret coming to us. Ambassador, you have spent a career listening to states like this and hear what is said and what isnt said. What struck you . There were two elements to the statement. To be looked need at. One is that he did not indicate u. S. Support for a two state solution. If the two sides agreed to it. There is backtracking with respect to traditional american policy. He also said while recognizing jerusalem asthere is backtrackis not take the position on where the old question of where the boundaries and exercise sovereignty would take place. It is a very small bone thrown to the palestinians, saying there is something subject to negotiations. The rest of the statement is an extraordinarily under wants to not too nuanced show, basically saying to the palestinians he will have to learn to live with this and we are ultimately ready to help you if you are ready to live with it. The president has effectively taken us out of the game at least with his administration. I want to thank you for your time. Thank you for your perspective. Daniel is a former u. S. Asassador to israel as well to egypt. Now a professor in middle eastern policy studies at princeton universitys Woodrow School of international affairs. Still with us from outside the white house and also with us is chiefl arnold, the bureau for israel and palestinian territories. I believe michael is still with us if i could ask him a question. We have not heard debt heard from benjamin netanyahu. Statementus how this will be taken. An a comment that this is an historic statement by trump. Nt he has to be heartened by what he heard. Some things that struck me trum. He has to be, moving the embassy is a necessary condition for achieving peace. People at argument that it is a stumbling block stumbling and a refusal that they have any rights in israel. And it the argument certainly sounds like President Trump has adopted the mindset. What is the reaction likely as from west bank . What will the palestinian reaction be . Si and sorry, youre asking me . The palestinians will be curious about this. I was listening for some kind of a nod in jerusalem but i did not hear any. Threewas a mention of great religions, and he also mentioned this does not reflect where the boundaries him boundaries should be drawn. I was thinking there might be explicit comments about palestinian operations and there was not. From their point of view, i am not sure they would parse words and find a few things to hang hope on. I expect they will be furious about this and i expect we will see demonstrations across the west bank and gaza strip tomorrow. Given that, what happens next . We heard he would immediately start the process of finding a place pretty him to is hiring architectures and architects and engineers to build what he called a tribute to peace injuries alone. That said as we heard from michael, there is expected to be brought unrest. Have we heard anything about the next step in whatever negotiations might happen . There are next steps to keep. Our eye on the administration is telling us actual construction would likely take a minimum of three or four years. Do the math. He will continue signing the waiver for all of that time. In the meantime, there are other timeline points to watch. One is the Vice President pences Upcoming Trip to the middle east. He is mentioning that today. What climate he needsrrive in and how he to modify as a result. The second is a formal rollout of a Palestinian Peace plan longawaited from the Jared Kushner law in the two of them are traveling backandforth in many con conversations as well as israelis. Know, somet will point in 2018, that is inherently changed by what is happening today. The third thing to watch is a u. S. Relationship with the saudis. Part of what the administration is calculating is that palestinians, because he is to be the galvanizing point in the middle east. That changes the equation for peace. We are seeing the lefthand side of the screen, it is a projection onto the law with the american flag. Israeli government is happy with what they are today. We talked about the possible palestinian direction. What more broadly in the region, the reaction from muslim countries and arab countries, we already heard some reaction from the head of turkey as well as the king in jordan. What to expect from places like egypt. An interesting point. It used to be the galvanizing issue for the middle east. Now people are more concerned about iran and isis and terrorism. It will be interesting to see what extent beyond the palestinians and jordan, which has that population. It is certainly taking a very public and vocal stand on this it we have heard expressions of concern from saudi arabia. Those have been fairly muted. The extent to which any protests gathered steam and beyond the inner circle of the west bank of jordan. Likewant to ask what it is. We heard the u. S. State department has told officials to sort of brace for unrest and is recommending folks not do on essential trips there. Some level of habituation to unrest there. Has that been heightened in recent days. Not yet at least. Officials have been trying to temper any expectations of widespread violence. There have been attacks very frequently, a couple every month , jerusalem or israel in general. Expect there would be height and tensions in the next couple of weeks or we might not see summing happen immediately. The second, which broke out at the end of 2000, it is two months after the summit. Sometimes these things have a way of bubbling up under the surface before they explode. To ask one last question. Saudi arabia, the first two objectives, has the concern over a warmingerhaps even relationship between israel and saudi arabia, giving President Trump an opportunity to move forward in the region . That seems to be what the emerging strategy is. Will be enough to overcome on the palestinian issue. According to reports, they simply you have to agree with whatever plan trump puts forward. As not been confirmed but it seems as if the palestinian issue has left residents. He is to be when you went to saudi arabia, every home yuan o, people talk to known would talk about it. At least for them, their priorities have changed. Publicly, they will not necessarily admit that your they have to at least plato pay lip service. Many thanks to our senior white house reporter, coming to us from the lawn of the white house. And to michael arnold, bloombergs bureau chief for israel and the palestinian territories. Julie lets get the bloomberg first word news with mark crumpton. Mark 12 Senate