Israel-Hamas truce stuck on a fence

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.A nine-mile desert stretch of fort [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 nine-mile desert stretch of fortified fence is snagging a Gaza hostage-release deal. On that, Israeli Prime Minister Benjamin Netanyahu and his critics agree — but not on who’s to blame. Netanyahu insists on keeping troops at the border between the Palestinian enclave and Egypt despite his defense minister arguing that it can and should be vacated to help bring about a cease-fire with Hamas. “The Axis of Evil needs the Philadelphi axis,” Netanyahu asserted in a televised address, as [demonstrations swept Israel]( over the slaying of six hostages who might have been saved by a timely truce. “For the same reason, we must control the Philadelphi axis.” WATCH: Netanyahu responds to mass protests calling on his government to agree on a cease-fire with Hamas. Dan Williams reports. Source: Bloomberg TV Also known as the Philadelphi corridor, the zone includes the Rafah crossing which, for almost 20 years, gave Gazans access to the Egyptian Sinai. It provided Hamas with a “windpipe” of smuggled weaponry, Netanyahu says, which Israel must now throttle so [the Iranian-backed group]( never rearms. Skeptical Israelis ask why their army took the corridor only [eight months into the war]( — and how Netanyahu can be so distrustful of Egyptian border security even as he looks to Cairo to broker a cease-fire. Many accuse him of stalling on a deal that could collapse his coalition government. At the outset of the war, Netanyahu may have been more reluctant to antagonize Egypt as he tried to get it to open the border to Palestinian refugees. Later, US remonstration held up Israel’s seizure of Philadelphi. His position puts him at odds with public opinion after hundreds of thousands of Israelis [protested for a truce]( on Sunday. It may also intensify frictions with the US, which is pressing hard for a deal between Israel and Hamas. President Joe Biden was blunt when asked by reporters yesterday if Netanyahu was doing enough to secure the hostages. “No,” he replied.— [Dan Williams]( Global Must Reads Venezuela ordered the arrest of presidential candidate Edmundo González, [an escalation]( of the government’s crackdown on dissent in the wake of the disputed July 28 election. The move is likely to draw further outcry from the US and others that have concluded González was the victor. Washington is already [laying the groundwork]( for new sanctions on officials in response to President Nicolás Maduro’s claim to have secured a third term. European officials expect Iran to deliver ballistic missiles to Russia imminently, a move that could prompt a [swift response]( from Kyiv’s allies. Meanwhile, Ukraine’s power grid operator dismissed its chief, local media reported, as the country grapples with [regular blackouts]( caused by Russian strikes on electricity facilities. An Iranian ballistic missile is test fired at an unspecified location in Iran. Photographer: Shaiegan/AFP/Getty Images Vladimir Putin was greeted by Mongolia’s president today despite calls to enforce [an arrest warrant]( for the Russian leader from the International Criminal Court over alleged war crimes in Ukraine. The Kremlin received assurances that Putin wouldn’t be arrested on his first visit to an ICC member state since the warrant was issued last year, sources say. Skirmishes between Chinese and Philippine ships in recent days have opened a new flashpoint in the South China Sea, [highlighting the difficulty]( in dialing down a longstanding dispute over the contested waters. At the center of the latest clashes is Sabina Shoal, a coral atoll in the Spratly islands, where the Philippines had deployed one of its biggest coastguard vessels since mid-April — a move Beijing has said is illegal. Outgoing President Andres Manuel Lopez Obrador is poised to overhaul Mexico’s judicial system, giving him control of the only branch of government that still eludes him and ensuring the dominance of his Morena party [for years to come](. Critics say that any move to subjugate an institution that has repeatedly blocked Lopez Obrador’s reforms — coupled with the landslide victory by his protege, Claudia Sheinbaum, and thumping majorities in both houses of Congress — threatens the basic tenets of democracy and poses uncertainty for investors. British Prime Minister Keir Starmer’s government drew criticism from Israel and the UK’s Chief Rabbi over its [decision to suspend]( some arms licenses due to concerns the use of British components in Gaza risks violating international humanitarian law. When President Xi Jinping welcomes African leaders to Beijing this week, he’ll be holding a smaller checkbook and will have a clearer sense of what China wants in exchange: [bigger returns and fewer headaches](. The United Nations said talks yesterday between Libya’s rival governments ended with “significant understandings” as efforts continue to resolve a crisis at the country’s central bank that has [triggered a blockade]( of oil production and exports. Washington Dispatch The proposed acquisition of United States Steel by Japan’s Nippon Steel continues to attract political heat in the US election. Vice President Kamala Harris yesterday came out [against the sale]( which has generated fierce opposition among labor groups. Speaking at a union meeting in Pittsburgh, she said the company should remain domestically owned, echoing Biden’s view, [who also spoke]( at the event. Donald Trump, her Republican rival, opposes the deal as well. WATCH: Harris joined Biden in declaring that United States Steel Corp. should remain domestically owned and operated. Source: APTN Seeking to bolster her standing with blue-collar workers in swing states, Harris addressed a rally in Detroit before heading to Pittsburgh. Nippon Steel’s Executive Vice President Takahiro Mori [told us last week]( that he planned to meet stakeholders in the US next month. “If it wasn’t an election year, this deal would have closed long ago,” he remarked. One thing to watch today: Trump’s Agenda 47 Policy Tour will hold events headlined by prominent supporters, including Texas Governor Greg Abbott in Arizona and Senator Rick Scott of Florida in Georgia. [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 remains the major foreign power with the biggest positive influence on Africa’s youth, [according to a new survey]( underscoring the limitations of a drive by the US to bolster its standing on the continent. Some 82% of young Africans consider Beijing’s influence positive, while 79% regard Washington’s standing in a similar way. While both countries improved compared with the previous poll in 2022, the findings highlight the obstacles the US and its allies face in trying to reengage with Africa after years of neglect. And Finally With South African homicides at a 20-year-high and the country suffering a spate of ransom kidnappings, those who can afford it are [increasingly employing their own guards]( and more police officers are quitting for private-security firms. About 600,000 people are active in jobs ranging from guards in stores to operatives resembling paramilitaries, according to industry estimates. That compares with the 150,000-strong national police force. A security officer on patrol outside Johannesburg. Photographer: Leon Sadiki/Bloomberg 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 Stay updated by saving our new email address Our email address is changing, which means you’ll be receiving this newsletter from noreply@news.bloomberg.com. 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