US-Israel divide over Gaza’s future

The future of Gaza divides the US and Israel [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Nine weeks into Israel’s war on Hamas, which has killed thousands of Palestinians and reduced entire Gaza neighborhoods to rubble, the US is sticking by its ally’s goal — destroying the Islamist group. But their ambitions for the day after are diverging. Washington’s [plan starts with the Palestinian Authority](, which governs parts of the West Bank, returning to Gaza. In an interview with Bloomberg in his West Bank office, Palestinian Prime Minister Mohammad Shtayyeh said his Authority is planning to go back to Gaza with US help and that Hamas might be amenable to abandoning its rejection of Israel after the war. WATCH: Shtayyeh says Hamas can’t be eradicated by Israel. Source: Bloomberg “Hamas before Oct. 7 is one thing and after it is another thing” and a changed Hamas would be welcome as a partner, he said. In 2007, Hamas and the Authority fought a civil war in Gaza which ended with the Authority being thrown out, leaving it only in the West Bank. The US says now is the time to restart the creation of a Palestinian state. The Israeli government of Prime Minister Benjamin Netanyahu demurs on all those points. It considers the Palestinian Authority to be weak and too similar to Hamas in its attitude toward Israel’s legitimacy. It rejects a Palestinian state and seeks the destruction of Hamas. To the Israeli authorities, Hamas — considered a terrorist group by both the US and European Union — is like the Nazis, requiring a root-and-branch removal and the creation of a new governing structure. The US says Israel can only be secure if Palestinians have dignity and freedom through a sovereign state. And the only way to get there is through revitalizing the Palestinian Authority. With the war far from over — Israel says it [needs months to destroy]( miles of Hamas tunnels — the discussion is just getting started. —[Ethan Bronner]( Palestinian children at a destroyed residential housing block following Israeli airstrikes in Khan Younis on Dec. 2. Photographer: Ahmad Salem/Bloomberg Global Must Reads The Kremlin is rallying support for Vladimir Putin’s election to a fifth presidential term by pitching him as the defender of [traditional Russian values]( against the “liberal” West, as the war in Ukraine grinds on. That’s translating into harsher persecution of LGBT people, growing calls for restrictions on abortion, pressure on women to focus on childbirth rather than careers and boosting patriotic education in schools. Joe Biden’s son Hunter was indicted on nine federal tax charges in a Los Angeles court in what could become a political headache for the White House and Democrats as the 2024 US election campaign ramps up. The development came after House Republicans announced a vote next week to [formalize an impeachment inquiry]( into the president revolving around Hunter Biden’s overseas business dealings. Hunter Biden, right, exits federal court in Wilmington, Delaware, on July 26. Photographer: Hannah Beier/Bloomberg Rishi Sunak backed the UK’s departure from the EU, fueling a rise that ultimately made him prime minister. Now he’s fighting to avoid becoming the latest Conservative leader consumed by the resulting [civil war]( in the governing party. He faces a crucial two weeks if he is to control feuding Tory lawmakers and lead them into a general election expected next year. Global investors are taking Africa more seriously. That’s the view of Kenyan President William Ruto, who announced that an [investment initiative for the continent]( he championed has allocated $2.6 billion for clean power projects in just three months. “The world is beginning to see Africa as an opportunity, and not as a problematic continent,” Ruto told Bloomberg TV on the sidelines of the COP28 climate summit in Dubai. Argentine President-elect Javier Milei is disappointing supporters as [he jettisons key pillars of his radical platform]( and shows a willingness to abandon close aides at a moment’s notice. Despite displaying pragmatism, those who know him say that as he tackles one of the greatest challenges in his country’s history, his laser focus on the economy to the exclusion of all else, without recourse to trusted advisers, could spell trouble after his Dec. 10 inauguration. A key ally of Turkish President Recep Tayyip Erdogan threw fresh doubt on NATO’s Nordic expansion after [conditioning his support]( for Sweden’s accession on “permanent peace” between Israelis and Palestinians. More than 280 million people are going hungry in Africa, as fallout from [climate change and Russia’s war in Ukraine]( deepen the region’s insecurity. EU negotiators are reconvening today as they try to hash out the most comprehensive [regulation of artificial intelligence]( in the western world. Washington Dispatch Bond traders, economists, lawmakers and presidential campaigns will be watching with bated breath today when the Bureau of Labor Statistics releases its jobs report for November. Many investors have bet that a [cooling of the American economy](, with inflation and job openings falling, means that the Federal Reserve will cut interest rates over the next year. That thinking persists even though Fed officials caution that any talk of cuts is premature. Today’s report is expected to show moderating employment and wage growth in November but no major deterioration in hiring. Voters have complained to pollsters about high borrowing costs that have prevented them from buying homes and cars. And while inflation has slowed and rate cuts next year would be good news for Biden, job losses that exceed forecasts could intensify fears of a recession, which is never good news for an incumbent. One person to watch today: Biden will travel to Las Vegas, where he will announce funding for railroad projects. Then it’s on to southern California for campaign fundraisers. [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 OPEC+ coalition’s grip on global oil markets [is looking less secure by the day](. Despite the group’s multiple attempts to shore up sentiment in the past week, prices have crashed 11% to a five-month low. Traders are doubtful that the Organization of Petroleum Exporting Countries and its allies will deliver enough production cutbacks to rein in a looming surplus. And Finally Genghis Khan and his heirs once conquered modern-day China to create the largest contiguous land empire in history. Almost 800 years after his death, the Mongolian warlord is emerging as a [new threat]( to President Xi Jinping, one that’s prompting Beijing to rewrite history, ban plays, and restrict what children learn in schools. Xi sees ethnic minorities in China’s peripheral regions posing as much of a risk to the Communist Party’s rule as democracy activists in Hong Kong and independence advocates in Taiwan. A guard dressed in traditional costume at the entrance of the Genghis Khan Mausoleum in November. Source: Bloomberg Pop quiz (no cheating!) Which African nation’s civil liberties have deteriorated so much that it now ranks alongside countries run by military juntas? Send your answers to balancepower@bloomberg.net. More from Bloomberg - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Listen to [The Big Take podcast]( how the war in Gaza, Senate Republicans and Donald Trump have many worried about Ukraine’s future. 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