Closing basis and the dow in their own intraday level. We continue with this rally was relatively modest as investors are waiting details on what the fed is going to do with its Balance Sheet unwind. Not expected to be announced when the fed concludes meeting tomorrow. Individual stocks we are watching, sprint and tmobile according to bloomberg reporting have been in talks since august on their combination, theres been talks about them being in talks for longer than that. They could be weeks away from coming to an agreement on some kind of all stocks deal in which Georgia Telecom would be the owner of the combined company. At t and verizon are also getting a lift as we watch that move. On the downside today, in terms of what we are watching, we have some big down movers envision health care is one of them, the Company Announced as chief Financial Officer was up and down and announced a buyback. On its give details forecast, and that could be responsible for some of the decline we are seeing. Security grant is downloaded downgraded and tim kaine is among the Health Insurers 17 centene is declining. Some of the insurers the cover the most at risk patients or have the most mitigate exposure have been hit. That stock is down by 5 . Julia President Donald Trump address the United NationsGeneral Assembly for the first time today. His speech ran more than 40 minutes long and was marked by tough talks for iran and north korea. Trump denounced kim jongun without saying his name. Man isnt trump rocket on a Suicide Mission for himself, and for his regime. Ready,ted states is willing, and able, but hopefully, this will not be necessary. Julia we should be thankful that the pool of candidates here is pretty narrow. With this in new york is margaret tell us and bill theories bill faries. Ministrations president s have not seen their efforts at appeasement and diplomacy work and critics would say this is not the path to diplomacy. This is escalation. Which is it . Margaret the initial reaction has been all over the map, the more hawkish section applauded to hear him talking tough on north korea and iran and democrats and antiwar groups thought this is talk of war. Reaction inside the yuan general simply broke down along the lines of which country they were. You saw the israelis Benjamin Netanyahu enthralled, great speech, amazing and japan very much on board for the tough talk and many others in the room either confused, curious, a little nervous. Our colleague said there was an [gasp] reaction when north korea was mentioned. Bill the u. N. Was a place that was created in the ashes of war, the whole purpose was to try to help the world find a way to avoid a war. Anytime you have a national leader, whether its the u. S. Leader or anyone talking about destroying a country, its not typically what diplomats in new york to work on. Scarlet i cant remember the last time a u. S. President have that kind of tone. Is there an example from recent memory . Covered if you president barack obama, that was not the sort of speech you would hear. There been times a real tension for the u. S. Over the last several decades, and 9 11 was one of those. But President Trump clearly trying to stake out his brand. And part of that really has been to suggest that you can take this America First approach that is the core of his campaign and somehow apply this idea that everybody is out for themselves to the notion of how the u. N. Can work. If everyone is out for themselves for collective reason, there can be action. All sortsrt of rifle of threats that are being dissected now. Its beyond a message to his base to mystically, is he trying to signal to the eu for the u. N. Itself, all these International Bodies the confounded him over trade deals and economic agreements, that he will select the kate with the exception advocate, with the exception of things like iran, for the usa. If its forced to defend itself or its allies, we will have no choice but to totally destroy north korea. Scarlet doubling down there. To the North Koreans hear their speech did the North Koreans hear that speech . Bill they were in a great place if they want to listen to it. Just by the way the u. N. Assigned seats, they had a front row seat just to the right of. He podium they were there for the opening speeches and it looks like they, for the most part left before trump took to the podium. Thats part of the internal politics of the u. N. , who stands up for a speech and who shows up in the room. Turkish president everyone walked in and the middle of it. Werent going to get a positive readout from the president , same as iran. In the North Koreans took advantage of the opportunity to get out. Julia i want to talk policy as well, because senator bob corser bob corker suggesting there has been quantitative decisions made about tax reform and the administration is also behind this latest lastgasp bid for health care. Can they get the votes and what are we hearing on tax . Margaret you are seeing a real flurry of activity, just precisely in the time President Trump has left, back at home, we saw Vice President mike pence cut short that trip for several hours to go back and try and rally the republicans to this and also tolth care talk taxes behind closed doors as well. You can argue the president leaving town may have given a little more airspace to discuss these issues, but theres a real understanding throughout the Republican Party that heading out to midterm season, a potential agreement with democrats on protecting undocumented immigrants really cant be there only a compliment on the board, so youre seeing a real push to try and get it across the line, even if its in on some of these plans terms of tax cuts and on health care. Julia to go to the point you said about donald trump, senator graham saying he gained a new appreciation for the president s tenacity during this health care push. You are learning, Vice President mike pence replied. What a great interaction that was. , thank Margaret Talev you for the rotatable spectrum. But get a check of the bloomberg first word news with mark barton. Mark Antonio Guterres this morning news World Leaders about Nuclear Weapons, saying the use of them should be unthinkable. He also address the General Assembly this morning. Even the threat of their use can ever be condoned. But today, global anxieties about Nuclear Weapons are at the highest level since the end of the cold war. Mark goodyear is the solution to north korea must be political and he stressed to leaders quote this is a time for statesmanship. Committee isdget considering 1. 5 trillion in tax cuts, Committee Member ron johnson said that is the minimum he would like to see. Senator johnson says the cuts would stimulate enough growth to pay for themselves. With that contrast majority leader mitch mcconnell, who said earlier this year a tax overhaul cannot add to the nations quote alarming debt. Hurricane maria claimed its first victim. Officials are reporting one death on the French Island of what bluebay guadalupe. And his retail big on the island of dominica. It will strike the u. S. And Virgin Islands and puerto rico on wednesday. The u. S. Navy top officer said although commanders are ultimately responsible for problems leading to two recent facial Fatal Shooting collisions, despite the Naval Operations combined with budget shortfalls and uncertainty, it made it difficult to do needing needed training and maintenance. The chief of operations testified before the Senate Armed Services committee today. Effort,irst molecule of our first team must go to safety. Safety is first. The matter what the situation, those charged with command must achieve and maintain the standard that ensures their teams are trained and ready to safely and effectively conduct assigned operations. Killed inailors were two separate ship collisions in the pacific in recent months, leading to the firing of six senior navy officers. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Scarlet coming up, do wall streets bond bureaus have the kiwi unwind all wrong . What history suggest about yields as the fed plans to train gets enormous plans to shrink its enormous Balance Sheet. This is bloomberg. Julia this is bloomberg markets, im julie chatterley. Scarlet im scarlet fu. The fed is expected to announce plans tomorrow to shrink or begin trading its 4. 5 trillion Balance Sheet. Once that big unwind begins, treasury yields may defy wall streets logic. Btv 2005, it g shows during each of the feds cycleses in purple qe in purple, yields rose when they were buying bonds and they fell after the central bank stopped. Where does that leave bond yields when this writ when the fed began striking its Balance Sheet . Joining us to discuss his paul landry. Is there conventional wisdom about bond yields and qe, and if so, how does that unwind . Mr. Landry it acted contrary to what Market Participants excited. I think giving the trends we are seeing globally and inflation as well as growth trends, that we should expect to see rates as the fed starts to unwind the Balance Sheet gradually. This could be also enhanced as well if there was a really good progrowth tax package that comes out of washington, which boosts growth into 2018 and 2019. Julia can you quantify that force . How much of a tick up in rates are you anticipating . Its tough, given every thing else and inflation in whatever it is. But the direction as high. Mr. Landry its difficult to quantify. I was a really depends on the future pace of growth. Growth does begin to pick up, economic growth, i think the long end of the curve will start to rise. I think that would be a good thing. I think it would indicate that investors are expecting better dconomic growth in the perio ahead. Julia give me a cap . What does it not go above . 3 . 3. 5 . Mr. Landry i would say 3. 5 would be a good target. Scarlet does it mean more foreign buying . If you look at japanese bonds and german bonds, they are not attractive compared u. S. Treasurys. As iry i think definitely think the demand as qb comes off, i think investors look to secure those yields as they go higher. We live in a yields starved world and as rates gradually rise, i think you will see more and more investors look to treasuries relative to other Asset Classes as well. Julia theres a few interesting things going on. Canada surprised investors by hiking a second time, and we have the bank of england now in the market 70 priced for november hike. Its gone from being the only central bank that was hiking were talking about hiking to having a better competition here. What defense does that make . Mr. Landry it is factor into the feds thinking as well. You are seeing generally across the globe better rates of growth and inflation starting to pick up. I think the fed, with the model they work from, a full of scarves framework phillips curve framework, and they see growth picking up, they want to get ahead of that and thats why i think that influences them, they want to increase rates as next gradually over the year and a half or so. Youret lets get perspective on equities. Julie was telling us about how its an eighth straight daythe dow off the euro closing highs if they were close of these current levels. Use equities, are they fully valid or overvalued . Mr. Landry weve been saying they are fairly valued, but as long as the u. S. Economy continues to move along at this 2. 5 gdp growth rate and corporate earnings continue to advance, theres no reason why we cant see u. S. Stocks at least continue to rise at a modest low to mid singledigit rate of growth. Its really where you get to a period where there is a recession where you expect to see a big pullback in u. S. Stock prices. Right now, despite the valuation being pretty full, we still think you can get low to mid single digit returns. Graduate gradual rate environment . Mr. Landry that too. Julia robert landry. You can join us at 2 00 tomorrow , former fed chair and jeff rosenberg. Slumpahead, the trading adds to wall street. We dig into results on what they might call shadow for jeffers bigger rivals. From new york, this is bloomberg. Scarlet this is bloomberg markets, im scarlet fu. Julia im julia chatterley. A look at the biggest business stories in the news right now. Sprint and tmobile are hashing ,ut terms of a possible merger according to a person with direct knowledge of the matter. The Wireless Companies have tmobiles Parent Company telecom would have control. Tmobile restarted after spreads exclusive sprints negotiations expired. Walgreens have gotten the green light to buy assets from rite aid. The two drugstore chains of been trying to win approval for some sort of deal for two years. Walgreens will pay around 4. 4 billion for more than 1900 right it stores and three dissertation centers. J. P. Morgan chase is partnering with another rising tech firm to help clients reduce using paper checks. Its the largest u. S. Businesstobusiness payment network. Will lean on the assets established network of 2. 5 million users while they gain access to the client basis of the biggest u. S. Lender. Thats your business flash update. Isrlet wall street trading plaguing jeffries during the first quarter. Sees surgebanking 61 for record. Laura keller joins us from the bureau in los angeles. Laura, give us a break down of the results. Trading revenue was a drop, but how does equities and there with fixed income, for instance . Laura Jefferies Group is putting this drop in trading, reporting a 7 drop overall. Not as bad as some of the larger banks, and as you mentioned, equities were better at about 19 increase from last year. Dropid see a pretty good in fixedincome trading down 27 . Being generally more weighted to fixed income, so this is definitely something that is disappointing for all of our different wall street watchers who really look at jefferies to figure out what might be happening later next month when we see larger banks report. Julia weve already heard from the likes of jpmorgan and bank of america they are indicating their trading revenues are going to be down 15 to 20 . Laura bank of america and citigroup will saying probably about 16 overall trading down and jpmorgan signaling 20 down for the Third Quarter. Its important to remember what some of those executives of talked about is that september is an ever important month for these banks. Eriod,es has a different p they are looking at june, july, and august. Other banks will be looking more at the september period to drive the quarter. To the ideago back that what jeffries says could be a key indicator for what happens with bigger banks. Goldman sachs is Harvey Schwartz spoke with alix steel. Lets listen to what he said about goldmans performance so far. Of the Market Conditions have continued to the Third Quarter. Low volatility. In aggregate, the firm is performing well. But it remains a challenge for us. You mentioned the September Quarter is really critical for these big banks. How does it tend to set up the Fourth Quarter . Laura the Fourth Quarter is generally not the greatest quarter for fixedincome trading, its usually one of the best. Necessarily mean anything. The Third Quarter isnt always correlated what we will see in the Fourth Quarter. I want to pick up on what harvey mentioned about Goldman Sachs. Theyve talked a lot about how their fixed income debts have not been as well and their disappointed about that. Theres a note out today from a Thomas ResearchAutonomous Research and theyve driven the nail on Deutsche Bank, which is also a bank that historically had this really negative balance rating franchise. That note is really illustrated for us how important these fixed income trading apps are. Whether you are talking about Deutsche Bank or Something LikeGoldman Sachs. Julia i do want to talk about the good news, which is theyve been offsetting this trade and andness trading weakness for jeffers the fee increases pretty whopping. Laura without want to forget the positive, julie. Essentially, what jeffries is saying is yes, we generally well and advisories, which is quite interesting, because they are not known for doing that. And maybe that means that some of the other big banks will also have a pretty good quarter on m a deals. Julia laura keller, making reporter for Bloomberg News. Coming up, we speak with audacity founder and his plans to be thought the tech workforce. This is bloomberg. To beef up the tech workforce. This is bloomberg. Breaking news. A 7.