A shifting tone on Palestinian statehood

Western and Arab calls for a Palestinian state are getting louder [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Among Israel’s governing politicians — not least Prime Minister Benjamin Netanyahu — there seems [almost no willingness]( to accept a Palestinian state or start negotiations toward creating one. They believe Hamas’s savage attack on Oct. 7 underscores just [how dangerous a two-state solution]( would be for Israel. It would, in their view, create a neighboring nation over which Israel would have little or no security control. Yet for Arab countries and, increasingly, Israel’s Western allies, Hamas’s incursion and [the subsequent war]( in Gaza — still raging after almost [four months with estimates]( of close to 30,000 people dead on all sides — make a two-state solution all the more urgent. This week, UK Foreign Secretary David Cameron struck a more forceful tone with a speech in which he laid out how the British government and partners might accept a Palestinian state even before Israel has agreed to one, and involve the United Nations. “That could be one of the things that helps to make this process irreversible,” he said. Such words are anathema to Netanyahu and his coalition, the [most right-wing]( in Israel’s history. The US, by far the most important country when it comes to swaying Israel, says it hasn’t shifted its official stance regarding an independent state in the West Bank and Gaza. But its calls for one to be created eventually are getting louder. For now, Israel isn’t listening as it continues with its campaign to destroy Hamas and ensure Oct. 7 is never repeated. But the pressure is mounting, including from its closest supporters. — [Paul Wallace]( Pro-Palestinian demonstrators in Washington on Jan. 13. Photographer: Valerie Plesch/Bloomberg Global Must Reads Ukraine’s top general intensified a power struggle with President Volodymyr Zelenskiy over [military leadership]( at a critical time in the war against Russia. Valeriy Zaluzhnyi, who refused to step down as army commander-in-chief at a meeting with Zelenskiy on Monday, said in an article for CNN that bureaucracy is holding back Ukraine’s defense industry and “a new philosophy of training and warfare” is needed to cope with limited resources. Once a rebel leader who emerged from Sudan’s notorious janjaweed militia, Lieutenant General Mohamed Hamdan Dagalo has been received by a host of African leaders as his forces gain the upper hand [in a battle with the army]( that’s ripping the nation apart. At least 12,000 people have been killed, and both sides are accused of war crimes, including rape, deliberate targeting of civilians and looting. Joe Biden’s telegraphing of his intention to carry out multiple attacks on an Iran-backed group that killed three US soldiers last week [has exposed him to criticism]( he’s giving up the element of surprise. While the president wants to send a message to Tehran, Biden needs to avoid fanning the fallout from the Israel-Hamas conflict. President Nayib Bukele transformed El Salvador from one of the most dangerous countries in Latin America to among the safest, but at the cost of some civil liberties. The strongman tactics he used [to bring violent criminal gangs]( to heel in a tiny country of 6.3 million people are spreading through the region. El Salvador’s newly built Terrorism Confinement Center has capacity for 40,000 inmates. Source: Office of the President of El Salvador/Getty Images Hong Kong leader John Lee’s decision to enact a domestic security law risks undermining his year-long effort to [revive a business environment]( battered by pandemic curbs and China’s economic slowdown. The planned legislation is more expansive than some business leaders were anticipating and threatens to exacerbate tensions with the US. Senate negotiators are closing in on a US migration and Ukraine aid deal and plan to release it as soon as today, but [it faces major hurdles]( in the upper chamber and the House. North Korea fired its fourth barrage of cruise missiles in some two weeks, just hours after leader Kim Jong Un [called for stepping up]( “war preparations.” Ethiopian lawmakers voted to extend a state of emergency in the northern Amhara region that the government first declared in August [following clashes]( between federal troops and a rebel group. Washington Dispatch Nikki Haley’s quest to remain in the Republican presidential race now centers on South Carolina, where despite having been a popular governor, she’s running far behind in a [new poll]( and faces a phalanx of state politicians who have endorsed her opponent, former President Donald Trump. The Trump campaign says that several prominent South Carolina Republicans, including Representatives William Timmons and Nancy Mace, will be hosting press conferences today “highlighting the repeated failures of Nikki Haley.” In 2022, Trump called for Mace’s defeat in a primary after she had rebuked him over the insurrection at the US Capitol on Jan. 6, 2021. Haley campaigned with her and Mace won the primary, then went on to reelection. Haley will be in Lancaster today and in Charleston over the weekend. Trump’s plans haven’t been announced, but he’s expected to hold several rallies in the Palmetto State before the Feb. 24 primary. Asked on CNN about the fellow Republicans arrayed against her in South Carolina, Haley said: “I’ve never cared about being friends with the political elite. I care about making sure we serve the people.” One thing to watch today: The monthly jobs report for January will be released by the Bureau of Labor Statistics. [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 Land route from Gulf to Israel and Egypt Source: Trucknet Israeli software startup Trucknet Enterprise and one of the world’s biggest shipping lines are among companies that are opening up commercial trade routes running through the heart of the Middle East [to avoid Houthi attacks]( on vessels in the Red Sea. And Finally Angry farmers may have helped unlock vital European Union funds for Ukraine. When Hungarian Prime Minister Viktor Orban complained he’d [slept badly]( in Brussels ahead of crucial talks with fellow EU leaders, European Council President Charles Michel joked that he’d organized the farmers on purpose. They then chatted about soccer — a passion of Orban’s — before the assembled leaders convinced the Hungarian leader to abandon his veto of the funding deal within 90 minutes. A toppled statue during a protest by farmers in Brussels yesterday. Photographer: Cyril Marcilhacy/Bloomberg Pop quiz (no cheating!) Which country warned its students to be careful when flying through Washington Dulles International Airport after it said “many” were interrogated there by border agents? Send your answers to balancepower@bloomberg.net. More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [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 - [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? 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