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| A deadly attack on Israelis near a synagogue on the weekend has capped off one of the bloodiest months in Israel and the occupied West Bank in years.The violence adds to the social unrest facing Prime Minister Benjamin Netanyahu’s month-old government. Tens of thousands of Israelis have been protesting over government plans to overhaul the judicial system and economists have warned Israel’s democracy and economy are at risk. Key reading:Israel Mulls Punishing Attacker Families, Arming More CiviliansIsrael Vows Tough Action as Violence With Palestinians EscalatesFor a Change, Israeli Investors Are Unsettled by Political ChaosAttack on Iran Escalates Tensions as Blinken Starts Mideast TourWhat to Know About Israel’s New Far-Right Government US Secretary of State Antony Blinken starts a visit today against this volatile backdrop of inter-communal violence and deep shifts in the Israeli state.A drone attack on a defense ministry depot in Iran has also stirred regional tensions. There’s been no official statement by Tehran assigning blame, although it’s often pointed the finger at Israel for similar incidents in the past.Blinken will meet Netanyahu, members of his new right-wing government as well as Palestinian leaders who’ve severed security cooperation with Israel over a military raid last week on the West Bank city of Jenin in which nine Palestinians were killed.President Joe Biden has stressed his “iron-clad commitment” to Israel’s security after a Palestinian from East Jerusalem shot dead seven Israelis close to a synagogue.Netanyahu has said Israel isn’t looking for an escalation. But the policies his coalition is planning may make it hard to restore calm. Those include easing open-fire rules for some security forces and expanding the construction of Jewish settlements in the West Bank, a territory that’s part of the area the Palestinians seek for their independent state.Much of this reflects the growing trends in Israeli politics: increasing support for far right, nationalist and ultra-Orthodox politicians who were vital to the premier’s political return.They also support the push to change the legal system, which they say is biased toward a left-leaning elite. Netanyahu, facing his own legal battles over corruption charges, is sympathetic to that view.The repercussions of Netanyahu’s formation of a far right-wing government are already reverberating across Israel and beyond.— Sylvia Westall |
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| Limit talks | Biden agreed to meet House Speaker Kevin McCarthy on Wednesday to discuss raising the debt ceiling and avoiding a US default as Republicans seek a deal that includes government spending cuts. The meeting will pit the president’s refusal to negotiate over the limit against McCarthy’s call for reductions in expenditure as a condition of any agreement.China urged McCarthy not to visit Taiwan, raising the specter of a repeat of the showdown last year when his predecessor, Nancy Pelosi, went to the democratically run island.Aircraft divide | German Chancellor Olaf Scholz said discussing the possibility of sending fighter jets to Ukraine doesn’t help the country in the battle against Russia. “It’s strange that this debate is happening,” he told reporters in Chile. Ukrainian Defense Minister Oleksii Reznikov has said that talks with European and North American allies on the supply of military aircraft may lead to commitments.China hit back at a report that the US has confronted it with evidence suggesting some state-owned firms may be helping Russia, saying Washington should stop sending weapons if it wants the war in Ukraine to end.Russia’s invasion will accelerate the shift from oil and gas as countries prioritize domestic renewable energy sources to increase security of supply, according to BP. War economy | Russia’s hunt for weapons in its war against Ukraine could provide a lifeline for North Korea, where even a relatively modest arms deal would help boost Kim Jong Un’s cash-starved and stagnant economy. The US made fresh accusations this month that Pyongyang is supplying arms and ammunition to Moscow’s forces including the paramilitary Wagner Group. North Korea denies the allegations. |
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| Zahawi’s Firing Compounds Sunak’s Problems: Martin IvensBiden Needs More Technocrats in White House: Matthew YglesiasFrom K-Pop to TikTok, Globalization Won’t Die: Niall FergusonLithium race | Scholz is using a trip to Latin America to help Germany secure supplies of the lithium needed for electric vehicles from Chile, the world’s second-biggest source after Australia. Much of the South American nation’s output is usually taken by China, the dominant supplier or processor of many metals and rare earth elements that are key to the transition to cleaner and more technologically advanced economies. |
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| India’s Budget to Test Modi’s Fiscal Resolve Ahead of 2024 VoteHistoric Crash for Memory Chips Threatens to Wipe Out EarningsJapan to Lag Again on Diversity if Women Shut Out of BOJ RaceBack to school | Beijing has told students pursuing degrees at foreign universities to get back to campus, another sign that life in the second-largest economy is returning to normal after three years of harsh Covid Zero controls. Officials also said they were ending temporary rules allowing for degrees earned online to gain accreditation in China, which is necessary for landing a job at a state-owned enterprise or completing residency paperwork.Bloomberg TV and Radio air Balance of Power with David Westin on weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online here. |
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| Rishi Sunak is attempting to get his UK premiership back on track today with a plan to overhaul the crisis-hit National Health Service, after firing Conservative Party Chairman Nadhim Zahawi over his tax affairs.Donald Trump started his campaign for the 2024 election confronting the biggest challenges he’ll face in his comeback bid — fading enthusiasm among Republicans looking to move on from the former US president and rising rivals for the party nomination.Japanese voters want an election before any hike in taxes to fund Prime Minister Fumio Kishida’s plans for a record increase in defense spending and providing more support for families with children, polls show.Azerbaijan closed its embassy in Tehran and evacuated staff and their families amid spiraling tensions after a gunman stormed the diplomatic mission, killing the security chief and wounding two other guards.The Adani Group has cast its brawl with a US short seller as an attack on India and the issue could overshadow parliament’s budget session, with opposition lawmakers highlighting the ties between Asia’s richest man and Prime Minister Narendra Modi.Thanks to the 38 people who answered the Friday quiz and congratulations to Kate McCulloch, who was the first to name South Africa as the country that is planning naval exercises with Russia and China next month amid criticism over its noncommital stance on the war in Ukraine.And finally … France’s plan to withdraw its military from Burkina Faso is the latest sign of the former colonial power’s collapsing influence in West Africa. Last year its forces were kicked out of Mali where they spent almost a decade leading a losing fight against a growing jihadist insurgency. The pullout is being eagerly exploited by Russia, which has used the Wagner Group to gain a foothold in the region. |
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