Israelis see an existential threat

Israelis believe they face an existential threat [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. As the world recoils at the rising toll of deaths, injuries and homelessness in Gaza caused by Israel’s war, and responds with summits and cease-fire calls, Israelis [are living a different reality]( in which defeating Hamas feels like an existential necessity. Despite the loss of more than 200 Israeli soldiers in nearly four months — the [biggest single toll]( was 24 yesterday — there is a sense of unity and solidarity in Israel over the need for warfare both in Gaza and on the border with Lebanon. For a country that had been increasingly focused on startup culture, new regional relationships and some of the elements of the good life (fine wine and cuisine, clever content for Netflix), this represents a profound and sudden shift. “It’s become a kind of awakening from several delusions, especially one which says economic relations can win out over religious hatred,” observed Gad Yair, a sociologist who specializes in Israeli culture at Jerusalem’s Hebrew University. “Money won’t buy us peace. We are going to be a more militarized society.” Prime Minister Benjamin Netanyahu’s popularity has cratered due to the security failure of Oct. 7 — when Hamas operatives broke through a border fence, killing 1,200 Israelis and kidnapping 240. But opponents and supporters are so far standing behind his plan to defeat Hamas and push back Hezbollah in Lebanon. The 25,000 Palestinians killed in Gaza, according to the Hamas-run Health Ministry, have done little to dent that support because of the sense in Israel that other militias on its borders might try the same thing. The economy has taken a severe hit with hundreds of thousands of workers in the army reserves and tens of thousands of Palestinian staff barred from entry. But with the fighting expected to last for many months even if another break for a release of hostages can be agreed, Israeli public support for the war shows little sign of waning. — [Ethan Bronner]( An Israeli army vehicle patrols the border with Gaza on Jan. 19. Photographer: Jack Guez/AFP/Getty Images Global Must Reads The US and UK carried out their eighth round of attacks against the Houthis in Yemen yesterday in their effort to stop the Iran-backed group’s [assaults on ships in the Red Sea](. The US said the strikes, supported by Australia, Bahrain, Canada and the Netherlands, were the most significant since the original wave earlier this month. A far-reaching plan to channel Europe-Asia trade through the Middle East is [effectively on ice]( because of the Houthi attacks. The fallout from the Israel-Hamas war has halted progress on what’s known as the India-Middle East-Europe Economic Corridor — a project touted last year by Washington and key allies that envisages building new rail links across the Arabian peninsula. European Union leaders are ready to challenge Hungary if Prime Minister Viktor Orban continues to block a €50 billion ($54.5 billion) support package for Ukraine at an extraordinary summit next week, sources say. Member states are [poised to approve the aid]( at the Brussels meeting on Feb. 1 regardless of Hungary’s support. Javier Milei is turning into quite the pragmatist after rising to Argentina’s presidency by touting radical proposals and showing little willingness to negotiate with the country’s “political elite.” [In the latest about-face](, his government yesterday scrapped plans to privatize oil producer YPF SA, while proposing only partial sales of other state-owned firms. South African elections this year are expected to be the most competitive since the end of apartheid but [are unlikely to bring major change]( to how the country is governed. While the African National Congress, which has led the nation since 1994, will probably lose its majority, it will be able to form a coalition with minor rivals and retain power, according to the head of the Social Research Foundation, a polling and analysis company. Chinese authorities are considering a package of measures to stabilize the slumping stock market, sources say, after earlier attempts to [restore investor confidence]( fell short and prompted Premier Li Qiang to call for “forceful” steps. Turkey’s parliament is set to vote on Sweden’s entry into the North Atlantic Treaty Organization this week, [bringing the alliance]( to the cusp of completing its Nordic expansion. Iran executed a man accused of killing a security officer [in protests that followed the death]( in custody of Mahsa Amini in September 2022. Washington Dispatch As Donald Trump and Nikki Haley compete for [the Republican presidential nomination]( in today’s New Hampshire primary, Florida Governor Ron DeSantis is back in Tallahassee after quitting the race over the weekend. On the X social media platform, he announced the kickoff of economic development week, “celebrating our historic success in Florida.” He’ll only be 48 when his final term ends after the 2026 governor election, and questions abound about his future. Once seen by many Republicans as a formidable heir to Trump, he ended his troubled campaign after finishing a distant second in the Iowa caucuses — behind Trump. Yet American politics has seen many resurrections. Richard Nixon, considered to be finished after losing the 1960 presidential election and the California governor’s race in 1962, was elected president in 1968. And Joe Biden, who defeated Trump in 2020 and could well face him again this November, left the 1988 Democratic presidential race over a plagiarism scandal before primary voting even started. One thing to watch today: Biden and Vice President Kamala Harris will speak at a rally in northern Virginia [focused on abortion rights](. [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 South Korean chipmaker SK Hynix bought its Dalian plant in northeast China for $9 billion from Intel in 2020 to shore up capacity and expand into cutting-edge tech in the sector’s largest market. Instead, [the factory has ensnared]( the world’s No. 2 maker of memory chips in a complex web of US restrictions aimed at limiting China’s access to materials and equipment considered key to dominating the battlegrounds and industries of the future. And Finally The French government pledged a swift response to farmers who’ve [blocked a highway]( in the country’s southwest since last week in protest over rising costs and bureaucracy. New Prime Minister Gabriel Attal and Agriculture Minister Marc Fesneau met yesterday with union leaders who want help to offset the cost of EU environmental rules and competition from cheaper imports, as well as higher energy bills. “We have to listen, collectively, to the anger that’s being expressed,” Fesneau said. “And then we have to try to provide answers very quickly.” Protesters block an access road to the Golfech nuclear power station yesterday in southern France. 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