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Israel’s new unity government pledged to vary the “strategic reality” of a Gaza Strip managed by Hamas in an emotional tackle yesterday night, because it tightened its siege of the enclave ahead of an expected floor offensive.
Earlier within the day and in response to Saturday’s lethal assault by Hamas, Prime Minister Benjamin Netanyahu fashioned an emergency struggle cupboard and unity government with opposition chief Benny Gantz.
Netanyahu, Gantz and defence minister Yoav Gallant will lead the struggle cupboard, which is able to serve for the length of hostilities, whereas laws unrelated to the battle wouldn’t proceed, mentioned the prime minister’s Likud celebration and Gantz’s centre-right National Unity celebration.
The deal is an try and bypass the rift in Israeli politics brought on by a polarising judicial overhaul, ahead of what threatens to be a deeply difficult and extended navy marketing campaign.
The settlement got here because the siege introduced down Gaza’s energy provide, leaving residents alarmed they might quickly lose contact with the skin world. Meanwhile Israel has despatched tens of 1000’s of military personnel to the border with the enclave.
More than 2,000 folks have been killed on each side, with dozens of hostages nonetheless being held by Hamas. Here are the most recent updates on the struggle.
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Military briefing: A floor offensive to root out Hamas militants in Gaza will check the Israel Defense Forces’ city warfare expertise.
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Human toll: Dozens of our bodies — together with these of ladies and youngsters — line the streets of Kibbutz Be’eri, a farming neighborhood attacked by Hamas gunmen.
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Gaza Strip: Living situations deteriorated sharply as Israeli warplanes pounded the coastal enclave for a fifth day and the territory’s sole energy station ran out of gas.
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Hizbollah: Intensifying clashes on Israel’s border with Lebanon have raised fears that the Iran-backed group may be part of the struggle.
Here’s what else I’m protecting tabs on right now:
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Economic knowledge: The UK gives its gross home product estimates and the US releases its client worth index. Opec and the International Energy Agency publish oil market experiences.
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EU-China: The bloc’s chief diplomat Josep Borrell arrives in Beijing for high-level talks with Chinese international minister Wang Yi.
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European Central Bank: The financial institution publishes minutes from its newest rate-setting assembly.
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Gibraltar: Polls level to a knife-edge common election outcome within the British abroad territory.
Five extra high tales
1. US president Joe Biden ramped up diplomatic efforts to stop Israel’s anticipated floor assault on Gaza from spiralling right into a wider conflagration, telling the nation’s prime minister he should “operate by the rules of war” and warning different regional powers to not exploit the state of affairs.
2. More surveyors are reporting falling UK home costs than at any time since February 2009, towards economists’ expectations of an enchancment. Demand and gross sales volumes additionally contracted final month, in response to the Royal Institution of Chartered Surveyors’ home worth stability. Here’s why the housing market’s weak point is more likely to proceed.
3. Goldman Sachs mentioned it has sued Malaysia over disputed funds associated to 1MDB, arguing that the nation didn’t recognise $500mn in property offered below a 2020 settlement within the money-laundering scandal. Here’s extra on the most recent chapter within the multibillion-dollar embezzlement scheme.
4. Exclusive: China’s HongShan is plotting to develop globally after splitting from Sequoia Capital earlier this yr resulting from political strain. With the home financial system slowing down, the plans may see the enterprise capital group investing in international corporations concentrating on the Chinese market or these based by abroad Chinese entrepreneurs. Read the total story.
5. Steve Scalise narrowly received the Republican nomination to function the following US House Speaker, because the celebration races to find out who will lead the decrease chamber of Congress. Scalise mentioned his first act as Speaker could be to go a decision in help of Israel in its struggle towards Hamas. But he nonetheless faces a vote by the total House, which Republicans management by a slim margin.
News in-depth

Volodymyr Zelenskyy’s plea for extra weapons at Nato’s assembly in Brussels yesterday underscored a urgent concern: allied help for Ukraine is dwindling as consideration is diverted to the Israel-Hamas struggle and American backing turns into unsure. With the US’s important position in supplying arms, analysts say even a brief pause in its help may influence Kyiv’s struggle technique inside weeks.
We’re additionally studying and listening to . . .
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Global financial system: There’s a rising worry that the world financial system is being fragmented as geopolitical tensions gas a battle for uncooked supplies, however previous expertise would recommend in any other case, writes Alan Beattie.
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Luxury sector: Slowing gross sales at LVMH sign a retreat amongst aspirational consumers in Europe and the US, because the sector bids farewell to the “roaring” pandemic years.
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🎧 Rachman Review: Gideon Rachman talks to the historian and author Lawrence Freedman concerning the miscalculations that led to unprecedented carnage in Israel.
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UK financial system: If Labour forms the following government, it is going to want each good luck and political braveness to face Britain’s financial actuality, writes Chris Giles.
Chart of the day
The EU’s debt pile is ready to achieve €900bn by the top of 2026 because the bloc borrows to fund coronavirus restoration programmes and help for Ukraine, however buyers are discovering its bonds much less engaging than some of these of particular person European international locations.

Take a break from the information
The Rolling Stones’ new album Hackney Diamonds represents a danger. It requires us to imagine, opposite to proof, that the Mick Jagger-Keith Richards songwriting partnership is now not semi-defunct. But the report exhibits recent life for the band in its outdated age, writes FT music critic Ludovic Hunter-Tilney.

Additional contributions from Benjamin Wilhelm and Gordon Smith
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