Israel’s dilemma

The US and its allies have urged Israel to delay sending in troops [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. When Hamas killed more than 1,400 people in southern Israel on Oct. 7, the military mobilized for a ground invasion of the Gaza Strip to destroy the Palestinian militant group. Over two weeks later, with soldiers and tanks massed on the border, calls are growing both inside and outside Israel [for a rethink]( of the original plans. The US and its allies are worried the conflict will spread. The violence has inflamed tensions in the Middle East and fanned fears that Lebanon-based Hezbollah may launch a full-on attack of Israel from the north. Hezbollah, which like Hamas is backed by Iran and considered a terrorist group by the US, is exchanging fire with Israel on a near-daily basis. To the south, Hamas is holding dozens of hostages in Gaza. The US and its allies have urged Israel to delay sending in troops en masse to give time for negotiation efforts by Qatar and Egypt to win their freedom. Four have been released so far. Israel is also weighing the prospect of large military casualties if its soldiers storm Gaza. For now, it’s continuing small ground raids and intense aerial bombardments that authorities in the Hamas-run enclave say have killed thousands. The US, which has sent two naval battle groups to the region, and governments from Europe to China are urging Israel to focus on limiting civilian casualties in Gaza and are pushing for increased aid to be allowed to enter the Palestinian territory for its 2 million people. French President Emmanuel Macron touched down in Israel today to meet with Prime Minister Benjamin Netanyahu and was expected to call for the resumption of the Israeli-Palestinian peace process, the creation of a Palestinian state and a halt to Jewish settlement building in the West Bank. These are all difficult messages to deliver to a nation still in mourning and weighing how to respond. — [Sylvia Westall]( Buildings destroyed by Israeli airstrikes in the Gaza Strip on Saturday. Photographer: Ahmad Salem/Bloomberg Global Must Reads Chinese Foreign Minister Wang Yi will visit the US this week as Washington and Beijing continue a series of diplomatic engagements intended to manage tensions and discuss [differences over issues]( including the Israel-Hamas war, Russia’s invasion of Ukraine and North Korea’s weapons program, sources say. Treasury staff from the two countries held [the first meeting]( of a new working group dedicated to economic topics. Libertarian candidate Javier Milei was all set for a double celebration of his 53rd birthday Sunday by taking Argentina’s presidency in the first round. Instead, as Manuela Tobias reports, his second-place finish to Economy Minister Sergio Massa was a stark [lesson]( in the enduring hold of Peronism, the populist movement that has captured the imagination — and votes — of downtrodden Argentines for decades. Chorizo and beef patties sizzle on a grill during election-night celebrations in Buenos Aires. Photographer: Manuela Tobias/Bloomberg US House Republicans will try to choose a new speaker from among eight candidates today and end the chamber’s paralysis since Kevin McCarthy was ousted on Oct. 3. The lower house of the Congress [has been unable to act]( on any legislation, including emergency aid for Israel and Ukraine or an agreement to avert an impending US government shutdown on Nov. 17. Turkish President Recep Tayyip Erdogan’s decision to ask parliament to [ratify Sweden’s application to join NATO]( represents a major breakthrough for the military alliance’s push to strengthen its defenses after Russia invaded Ukraine. Bringing Sweden into the NATO fold would add a technologically sophisticated military that has participated in the bloc’s exercises for decades. Occidental Petroleum is leading the global charge to expand the use of [technologies]( that suck carbon dioxide out of the atmosphere and bury it underground. Its billion-dollar Stratos complex in Texas is attracting attention from businesses and government. Yet a Bloomberg Green investigation found that an earlier mega-plant named Century the oil giant built in 2010 never operated at more than a third of its capacity and was quietly ditched last year. Ukrainian President Volodymyr Zelenskiy will hold talks with the European Commission ahead of its expected decision to recommend [opening accession talks]( with Kyiv, sources say. Xi Jinping made his first known visit to the nation’s central bank since he became Chinese president a decade ago, sources say, [underscoring the government’s increased focus]( on shoring up the economy and financial markets. The UK economy lost jobs again in the quarter though August, marking the [longest drop in employment]( since the depths of the coronavirus pandemic. Washington Dispatch President Joe Biden today welcomes Australian Prime Minister Anthony Albanese to the White House. The official visit, which includes a state dinner tomorrow night, underscores Australia’s rising importance to the administration’s Indo-Pacific agenda. In March, the US, Australia and the UK announced an ambitious multibillion-dollar plan, as part of the so-called Aukus Partnership, for a new fleet of nuclear-powered submarines that will patrol the Pacific in an effort to blunt China’s growing assertiveness in the South China Sea and around Taiwan. Albanese, who plans to visit China next month, told Australia’s Parliament last week that strengthening its ties with the US on critical minerals and green energy would be on the agenda for the Washington visit. In May, Biden put off a trip to Australia and Papua New Guinea in order to return to Washington early from the Group of Seven summit in Japan because negotiations on the US debt ceiling had reached a critical stage. The president apologized, telling Albanese: “We have a little thing at home I got to pay attention to.” One thing to watch today: House Republicans vote again to select a new speaker. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day The world’s demand for natural gas is [set to be even lower than anticipated]( through 2040 as renewables take up a greater share of the energy mix, while Russia’s gas-market share is set to dwindle, according to the International Energy Agency. And Finally San Francisco is cracking down on unlicensed hot dog vendors and urging people living on the street to seek shelter as it races to prepare for the Asia-Pacific Economic Cooperation summit. Officials are looking at cosmetic cleanups [to improve its image]( such as scrubbing sidewalks and repainting fire hydrants ahead of next month’s meeting. San Francisco’s moment in the spotlight comes as it’s perceived in some corners as a symbol of urban decay. People sleep in a park in downtown San Francisco on Oct. 20. Photographer: Loren Elliott/Bloomberg More from Bloomberg - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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