Crypto News: Stalled detente

It seemed like the dawn of a new era when then-President Donald Trump unveiled the Abraham Accords at a White House ceremony in September 2020 to normalize ties between Bahrain, the United Arab Emirates and Israel.

Trump's successor, Joe Biden, set a goal of extending the rapprochement to the region's main power, Saudi Arabia, custodian of Islam's two holiest sites.

Key Reading:
Arab States Sour on Israel in Blow to US Aim of Saudi Peace Pact
Israel Aims at More Targets as West Bank Fighting Persists
Israel's Political Deadlock Threatens Economic Growth, S&P Says
Israeli Supreme Court Won't Immediately Block Judicial Law

But fast forward three years, and the hardline policies of Israeli Prime Minister Benjamin Netanyahu's religious-leaning government toward the Palestinians have stoked increasing tensions with the two Gulf states and Morocco, which also recognized Israel that same year.

That's dampened hopes of a deal with Riyadh, which instead restored relations with Israel's arch-rival Iran under an agreement brokered by China.

The recent deadly raid on a West Bank refugee camp in the city of Jenin that Israeli officials said was needed to flush out militants is the latest incident to inflame Arab public opinion, exposing the UAE and Bahrain to a backlash for their recognition of Israel.

Netanyahu, who's yet to secure an invitation to the White House since being reelected amid criticism of his campaign to weaken Israel's judiciary, has also not been able to visit the UAE, though he'll probably attend the COP28 climate conference later this year in Dubai.

Yet trade ties between the UAE and Israel are still expanding, from a few tens of millions of dollars before 2020 to a predicted $3 billion this year. And more than a million Israelis have visited the UAE since the two countries established ties — though few Emiratis have traveled the other way.

For its part, Saudi Arabia is putting forward strict conditions for a pact with Israel, including defense guarantees from the US, access to top-notch American weaponry and a green light for its nuclear program including domestic uranium enrichment.

For now, Washington's dream of orchestrating a region-wide detente looks more distant than ever. —Henry Meyer

Residents survey the debris of a destroyed building following Israeli airstrikes in Gaza City on May 11. Photographer: Ahmad Salem/Bloomberg

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China's much anticipated post-pandemic recovery appears to have flopped, with signs of a significant slowdown after decades of supercharged growth and data flashing warning signs. Watch the Bloomberg Originals mini-documentary China's Great Slowdown to see the reality behind promises by President Xi Jinping and other top Communist Party leaders to revive the world's second-largest economy.

Beijing's efforts to spur the economy have stopped short of major monetary or fiscal stimulus, like cash subsidies to consumers to spend more or a ramping up of construction spending like it did in previous downturns.

Click to watch. Source: Bloomberg

The Rhine River has been a major trade route since ancient times, allowing for the transport of cargo from the shores of Switzerland through Germany, France and the Netherlands to the North Sea. But with shipping now regularly impeded by low water levels, companies like chemicals giant BASF that have developed along its banks are rushing to adapt, underscoring how the climate crisis is upending even advanced economies.

Ukraine said at least two people died and 20 were hurt in a Russian missile strike on Kryvyi Rih, President Volodymyr Zelenskiy's home city. Russia also hit Kharkiv and Kherson overnight as heavy battles were reported in numerous locations along the front line. Ukraine will open talks with the US next week on a bilateral security guarantee, Zelenskiy's chief of staff, Andriy Yermak, said.

West Africa's regional economic bloc threatened a military intervention to remove the leader of a coup in Niger unless the junta reinstates the nation's democratically elected president. The warning by the Economic Community of West African States came after thousands of people rallied in the capital, Niamey, yesterday in support of the junta and staged a protest at the French Embassy in the city. France, the former colonial power, said it will retaliate if any of its citizens are attacked.

Read about what we know of Abdourahamane Tiani, the general who declared himself Niger's new ruler.

A suicide bombing at a rally organized by a key party in Pakistani Prime Minister Shehbaz Sharif's coalition killed 45 people and injured another 135 yesterday, highlighting the growing threat of violence before general elections due in November. It came as former premier Imran Khan's political party has buckled under an army-driven crackdown and the government reached a bailout deal with the International Monetary Fund to shore up its flagging economy.

Check out the latest Big Take podcast on how the European Union is leading efforts to regulate artificial intelligence. Listen here and on Apple and Spotify.

Nigerian President Bola Tinubu ordered a special investigator to probe the central bank's operations as part of the government's fight against corruption, according to a letter seen by Bloomberg News.
Denmark will investigate if it can find legal grounds to block public burnings of the Koran as the Nordic country tries to defuse escalating tensions with Muslim nations.
Trump's political action committee spent $40.2 million on legal costs in the first half of 2023 to defend him, his advisers and others, sources say.
Spanish Prime Minister Pedro Sanchez's Socialist Party will ask the national electoral board today to review over 30,000 votes declared void in the Madrid region, after it lost a prized parliament seat.
The son of Colombian President Gustavo Petro was arrested on Saturday on accusations of money laundering and illicit gain, the nation's attorney general said.

Thanks to the 21 people who answered our Friday quiz and congratulations to Jude Chukwudozie, who was the first to name Burkina Faso as the country where about 42,000 people are facing the threat of starvation in towns and villages that are under siege by Islamist militants.

And finally ... There's a global race from Singapore to Miami and Lausanne to attract family office businesses, firms dedicated to managing enormous, secretive pools of generational wealth. From the perils of working for politically exposed persons to soft skills covering the vagaries of Swiss watches and fine art, David Ramli reports on the growing competition for trained staff to help the ultra-rich run their lives and their money.

The Hebe Haven Yacht Club in Hong Kong in 2022. Photographer: Bertha Wang/AFP/Getty Images

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