No end in sight to Israel-Hamas war

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.A cease-fire between Israel and Ha [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. A cease-fire between Israel and Hamas remains as elusive as ever, with US National Security Adviser Jake Sullivan saying [“there’s still miles to go”]( in long-running talks. The fighting in Gaza, meanwhile, grinds on. The Israeli military told all Palestinians in [Gaza City to leave]( on Wednesday, several months after clearing Hamas units from the enclave’s most populous center. The militant movement’s fighters have regrouped, casting doubt over Prime Minister Benjamin Netanyahu’s oft-repeated war objective that they be totally eliminated. Talks center on the three-phase peace plan presented by President Joe Biden in May, a blueprint neither Israel nor Hamas have appeared willing to accept in full. The most recent breakthrough was that Hamas reportedly dropped a demand that Israel agree to an immediate and permanent cease-fire. A pause in hostilities would still allow for the release of hostages taken during the Oct. 7 attacks, in exchange for Palestinian prisoners. But Netanyahu’s insistence that Hamas be destroyed looks hard to square with a long-term peace deal. And the ambitious nature of the goal has met with resistance within Israel, with up to 200,000 protesters taking to the streets every week to demand fresh elections. Some senior Israelis have spoken out, most notably Benny Gantz, who resigned from the war cabinet last month. He criticized the prime minister for his handling of the conflict, suggesting that Netanyahu’s true priority is his political survival. Israel’s expansion of illegal settlements in the occupied West Bank also drew one of the more [severe condemnations]( from the Group of Seven nations yesterday since the war in Gaza erupted. Netanyahu said in June the most intense fighting with Hamas will be halted “very soon” and some forces redeployed to the north of Israel, where tensions with Lebanon-based Hezbollah remain high. No one should hold their breath. — [John Bowker]( Palestinians flee as smoke rises following Israeli airstrikes in the south of Gaza City on Wednesday. Photographer: Ahmad Salem/Bloomberg Global Must Reads Biden vowed to stay in the race for the November election despite two embarrassing gaffes in the span of two hours deepening concerns [about his mental acuity](. He mistakenly introduced Ukrainian President Volodymyr Zelenskiy as Russian leader Vladimir Putin yesterday at an event in Washington and in a response to a question about Vice President Kamala Harris referred to “Vice President Trump.” WATCH: Biden incorrectly referred to President Zelenskiy as President Putin at a meeting in Washington. The US announced a new $225 million weapons package for Ukraine at the NATO summit in Washington, aimed at [shoring up]( the country’s air-defense systems against Russian missile and drone strikes on its cities. Latvian Defense Minister Andris Sprūds said an initiative to deliver [a million drones]( to Ukraine by the war’s three-year mark in February is moving ahead as contributions from allies pile up. Just two months ago, Kenyan President William Ruto was flying high, becoming the first African leader to be [treated to a state dinner]( at the White House in a decade and a half. Since then he’s presided over a police crackdown on protests that left at least 41 dead, withdrew a signature tax law and yesterday fired almost all the members of his cabinet. US security services uncovered a Russian plot to assassinate the head of German weapons manufacturer Rheinmetall, sources say, a major escalation of [Moscow’s hybrid warfare]( against Western countries aiding Kyiv. Armin Papperger, whose company produces arms and ammunition for Ukraine, now has special protection after Washington passed on the information to German authorities, who foiled the attempt. Paul Kagame is seeking to extend his 30 years in power in Rwanda in July 15 elections after never winning by less than 93% of the vote. While the president has won plaudits for the developmental transformation of the African nation, [it’s come at a cost](. Interviews with dozens of opposition members, human rights workers and lawyers, along with US court documents illustrate how opposition to Kagame has been systematically suppressed during his rule – with political foes and longtime allies alike arrested, exiled, disappeared or assassinated. The left-wing parties that banded together to win the biggest number of seats in France’s snap election are struggling to unite to [come up with a candidate]( for prime minister. Japan replaced the head of its navy and punished more than 200 defense officials [after a string of scandals]( that include mishandling of classified information and overclaiming on pay. Ukraine seized a cargo vessel that it claims ferried “looted agricultural products” procured from its [Russian-occupied territories](, the first such action since Moscow’s invasion in 2022. Hungarian Prime Minister Viktor Orban traveled to Florida to meet former US President Donald Trump in the latest stop on his [self-styled “peace mission”]( on Ukraine that has angered Western allies. Washington Dispatch With Trump’s third Republican presidential nomination days away, the legal problems that threatened to shadow his candidacy all the way to November have largely evaporated. And he moved yesterday to [cast aside]( his conviction in a New York court over hush money payments. Trump asked State Supreme Court Justice Juan Merchan, who presided over the trial, to throw out the conviction now that the US Supreme Court has ruled that presidents have at least some immunity from criminal charges. According to a filing that was provided by his lawyer Todd Blanche, the guilty verdict was tainted by testimony and other evidence that shouldn’t have been allowed at trial under the new standard set by the high court’s landmark decision stemming from Trump’s unrelated election-fraud case. The 52-page filing explains in detail arguments Trump first raised in a letter to the judge last week. Merchan has already delayed the former president’s sentencing to Sept. 18 from this week to allow time to consider the request. One thing to watch today: The University of Michigan consumer sentiment index for June will be released. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day China’s trade surplus soared to an all-time high in June, with a jump in exports offsetting an unexpected decline in imports and [raising the risk]( of heightened tensions with international partners. The growing imbalance has already prompted some nations to impose additional tariffs on Chinese imports, including electric vehicles. Ties have deteriorated in recent months between the European Union and the government in Beijing, which this week opened a [tit-for-tat probe]( into the bloc’s barriers to commerce in what could bring the economies closer to an [all-out trade war](. And Finally London hosts a community that numbers somewhere in the low thousands of people known as mudlarks, who spend hours [sifting through sand and sludge]( in search of discarded junk from the city’s seaport heyday. The pastime requires a devotion to tide charts to find items thrown, dropped or washed into the river over centuries — from Bronze Age axe heads to human skulls and Tudor buttons. Increasingly, though, the mudlarks are finding the foreshore a crowded place, where the eureka moments are rarer and the goal for some is to go viral online. Copper alloy brooch of a lion with pin still in place. Source: Museum of London Pop quiz (no cheating!) What is the profession of Iran’s new president? Send your answers to balancepower@bloomberg.net. 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