US invites war criminal to address congress

Israeli Prime Minister Benjamin Netanyahu has officially been invited to deliver an address to Congress, reports The Hill.

Speaker Mike Johnson on Friday sent Netanyahu a formal invitation to speak during a joint meeting of Congress, and the invitation featured the signatures of all four Congressional leaders: Johnson, Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell and House Minority Leader Hakeem Jeffries.

“We join the State of Israel in your struggle against terror, especially as Hamas continues to hold American and Israeli citizens captive and its leaders jeopardize regional stability,” the letter reads.

“For this reason, on behalf of the bipartisan leadership of the United States House of Representatives and the United States Senate, we would like to invite you to address a Joint Meeting of Congress.”

The address is expected to take place as soon as the next eight weeks or soon after August recess. It would be Netanyahu’s fourth address to a joint meeting of Congress, following speeches in 2015, 2011 and 1996.

The invitation left Washington after weeks of delay from Schumer who, during a high-profile floor speech in March, declared Netanyahu had lost his way and called for new elections in Israel, drawing the ire of the longtime Israeli leader, Republicans and some Democrats.

Schumer, the highest-ranking Jewish official in the US history, and his office on a number of occasions said the Senate leader was supportive of having Netanyahu address Congress, despite his sharp criticism of the Israeli leader, but the New York Democrat did not sign the letter until recently.

Netanyahu’s visit to the Capitol — if it comes to fruition — is certain to spark intense anger among liberals in both chambers who have denounced the conservative leader’s handling of the Israel-Hamas war, especially as the number of humanitarian deaths in the Gaza strip continues to rise.

Those feelings deepened last week after a prosecutor with the International Criminal Court (ICC), which the US is not a party to, filed arrest warrants for Netanyahu and other Israeli and Hamas leaders, alleging that they bear criminal responsibility for a list of war crimes.

Some progressives in the House told The Hill last week that they would likely skip the speech if it materialized, taking aim at the Israeli leader’s conduct during the war.

“I think there’ll be a lot of people who wouldn’t go, just given the fact that he is pushing this war into a place that no one wants it to go into just to save his own butt, which makes Israel less safe and the region less safe,” said Rep. Maxwell Alejandro Frost, who added that he would “probably” boycott the event.

Rep. Jan Schakowsky, a Jewish Democrat who called Netanyahu a “menace,” said she “boycotted his last visit. I certainly will not attend this one.”

“It’s not going to help move us forward — it’s a detriment,” she added. “Should he come for any reason, in any venue, I am not going to be there.”

During Netanyahu’s 2015 visit to the Capitol, the Israeli leader used his speech to attack then-President Obama over the Iran nuclear deal, an extraordinary display that was denounced by Obama’s Democratic allies.

The formal invite for Netanyahu to address Congress marks the culmination of a weeks-long discussion over whether the Israeli leader would be given the opportunity to speak to lawmakers in the Capitol.

The idea first cropped up in March, when Johnson said he planned to invite the Israeli leader to deliver an address following Schumer’s controversial comments calling for new elections in the Middle East country.

Johnson said he sent Schumer a draft letter inviting Netanyahu to the Capitol in mid-March. Invitations for foreign leaders to address Congress are typically extended on behalf of congressional leaders. There are not, however, formal procedures for inviting foreign leaders to address Congress, according to the Congressional Research Service.

In late-April, the Speaker said Schumer had not yet signed the letter, telling The Hill “it’s been sitting on Chuck Schumer’s desk.”

Responding to Johnson’s remarks, Schumer’s office told The Hill that the Democratic leader “intends to join the invitation, the timing is being worked out.”

Johnson upped the pressure on Schumer to sign the letter last week, when he said the House would move ahead with an invitation on its own if the Democratic leader did not join his letter soon.

Schumer again reiterated that he would support having Netanyahu visit the Capitol, telling reporters “I’m discussing that now with the Speaker of the House, and as I’ve always said, our relationship with Israel is ironclad and transcends any one prime minister or president.”

 

Dr. Susan Saxton, Interim President, Middle East Institute

The Board of Governors of the Middle East Institute (MEI) has announced the appointment of Dr. Susan E. Saxton as interim President and CEO of the Institute, effective June 01, 2023.

Saxton, who joined MEI in January 2024 as Chief Operating Officer, is assuming her new role following the departure of Dr. Paul Salem, who is relocating to the region to pursue an international role for the institute.

Saxton brings more than 25 years of expertise in education and business, focusing on transformational leadership and corporate strategy, most recently in the Middle East and North Africa (MENA) region.

Previously, she served as Founding President at the American University of Bahrain, where she established a first-of-its-kind campus to deliver a unique style of education in the evolving Gulf-Cooperation-Council (GCC) market.

Dr. Saxton has held senior leadership positions within the Laureate Education network including Chief Strategy Officer, Chief Academic Officer, and Senior Vice President for the Global Products and Services Division; Chief Executive Officer and Senior Vice President for the University of St. Augustine for Health Sciences; and Chief of Staff for the ImagineAfrica Alliance, a public private partnership (PPP) supported by the Clinton Global Initiative, 4-H National Council, USAID, MasterCard Foundation, ImagineNations Group, DuPont, and Laureate Education, Inc.

In these positions, Dr. Saxton played a key leadership role in the acquisition and expansion of campuses, requiring extensive due diligence and regulatory negotiations, as well as the restructuring, transformation and scaling of institutions, and the development and growth of entrepreneurial initiatives.

She also served as Chief Strategy and Development Officer for the International Baccalaureate Organization (IBO) in The Hague, Dean of Students and Vice President of Strategy and Product Development at Kaplan University, and Founding Dean of the School of Business and Technology at Capella University.

Dr. Saxton has participated on the Boards of the American Chamber of Commerce (Bahrain), Glion Institute (Switzerland and UK), African Initiative for Agribusiness Research (Kenya), HSM (Argentina), Santa Fe University of Art and Design (New Mexico US), Touro College South (Florida US), and several other youth-oriented, business, and educational institutions. She served as a Non-Resident Senior Fellow (Rafik Hariri Center and Middle East Programs) for the Atlantic Council, and is a member of the Climate Action Committee for MENA 2050.

Dr. Saxton taught and mentored at the masters and doctoral level, and has served as Editor-in-Chief for the Journal of Teaching and Learning in Higher Education, on the Editorial Board of the Academy of Entrepreneurship Journal, and on the Editorial Advisory Board for the HLRC Journal; and is the recipient of the Distinguished Research Award from the International Academy of Case Studies.

She has published numerous works including: The Impact of Conflict Management on the World Trade Organization’s (WTO) Dispute Settlement System, Global Protection of Communities and the Trend Toward Harmonization of Law: A Historical Perspective and Best Practices for the Future, The International Baccalaureate (IB) Program: An International Gateway to Higher Education and Beyond, and Six Sigma and the US Army: A Potential for Excellence.  

Dr. Saxton holds the following degrees: PhD in Human Services, PhD in Organization and Management, LLM in International Business, MSBA in Finance, and BA in Mathematics. 

 

Israeli roadmap for Gaza ceasefire

President Biden announced the terms of an Israeli-led proposal Friday that includes a three-part roadmap toward an end to fighting and the release of all remaining hostages taken on October 07, 2023, giving the strongest indication yet for a potential end to the war between Israel and Hamas.

“After intensive diplomacy carried out by my team, my many conversations with leaders of Israel, Qatar and Egypt, and other Middle Eastern countries, Israel has offered a comprehensive new proposal. It’s a roadmap to an enduring cease-fire and the release of all hostages,” Biden said.

He said that while the proposal has been transmitted to Hamas via Qatar, he indicated the US-designated terrorist organization that runs the Gaza Strip had not yet formally accepted the plan.

“This is truly a decisive moment. Israel has made their proposal. Hamas says it wants a ceasefire. This deal is an opportunity to prove whether they really mean it. Hamas needs to take the deal,” Biden said.

Biden also pleaded from the White House podium for Israelis to back the deal, arguing the military has devastated Hamas since the war began on October 07, 2023.

While adding he knows there are Israelis who may not agree with the negotiated deal, he warned against allowing for an indefinite war.

“I know there are those in Israel who will not agree with this plan and will call for the war to continue indefinitely. Some are even in the government coalition. They’ve made it clear they want to occupy Gaza, they want to keep fighting for years, the hostages are not a priority for them,” he said. “I urge Israel to stand behind this deal, despite whatever pressure comes.”

When questioned if Biden meant that Israel has effectively won the war against Hamas, senior administration officials on a call with reporters after Biden spoke said Israel has had success in “degrading Hamas’ military capacity.” 

The official added that the offer wouldn’t have been possible three months ago.

Biden laid out the proposal in three phases:

1- An initial phase would include a six-week ceasefire, then a withdrawal of Israeli forces from all populated areas of Gaza, and the release of all remaining hostages taken from Israel on October 07.

2- It also includes parameters for internally displaced Palestinians to return to their homes.

3- Reconstruction efforts of the devastated coastal enclave.

According to the arrangement, each of the three phases would be about 42 days long, a senior administration official outlined.

Yemen targets US aircraft carrier

Yemen's military spokesman says the country's armed forces have targeted US aircraft carrier USS Dwight D. Eisenhower in the Red Sea in response to deadly overnight attacks by the United State and its allies on the country.

“The missile force and the naval force of the Yemeni Armed Forces carried out a joint military operation targeting the US aircraft carrier ‘Eisenhower’ in the Red Sea,” said Yahya Saree in a televised statement. 

“The operation was carried out with a number of winged and ballistic missiles, the hit was accurate and direct, thanks to Allah,” he added.

Saree said this was a response to aerial strikes by the US and Britain on several targets across the Arab country, which he said targeted civilians in a “blatant violation of all international laws and a full-fledged war crime." 

The US and British warplanes attacked the Yemeni capital Sana’a as well as the governorates of Hodeidah and Taiz.

Yemeni officials say the attacks on Hodeidah targeted the Radio building and the Coast Guard facility and several commercial ships, killing at least 16 people and injuring 41 others.

United States and Britain target Yemen

The United States and Britain carried out a series of strikes against Houthi targets in Yemen, according to US Central Command.

In addition, the US unilaterally destroyed eight aerial attack drones over Yemen and the Red Sea.

The coalition strikes targeted 13 Houthi targets in parts of Yemen controlled by the Iran-backed group.

This marked the fifth round of coalition strikes against the Houthis, who have repeatedly attacked US Navy ships and commercial vessels in the Red Sea and the Gulf of Aden. The two waterways, separated by the Bab-el-Mandeb strait, are critical to international shipping routes.

The last round of strikes occurred on February 24, as the US and Britain targeted Houthi weapons and radar sites.

The US has tried to disrupt the Houthi’s ability to target commercial vessels and US warships by going after their primary weapons, including anti-ship cruise missiles, ballistic missiles and one-way attack drones. The US has also destroyed maritime drones and underwater drones. The resumption of strikes follows an uptick in Houthi attacks over the last week.

During this past week, the US destroyed Houthi missile launchers in Yemen and intercepted aerial attack drones.

On Tuesday, three Houthi anti-ship ballistic missiles struck a Greek-owned and operated merchant ship in the Red Sea, according to US Central Command. There were no injuries, according to Central Command, and the M/V Lax was able to continue its voyage.

The US spearheaded Operation Prosperity Guardian in December to protect international shipping, banding together with other nations to intercept Houthi attacks.

The aircraft carrier USS Dwight D. Eisenhower and a number of destroyers have patrolled the waters of the region to intercept Houthi launches.

The USS Carney, a guided missile destroyer that recently returned from the Middle East, had 51 engagements in six months, which Defense Secretary Lloyd Austin said last week was “the most direct Navy engagement with a foe since World War II.”

Pakistan Stock Exchange remains under pressure

Pakistan Stock Exchange remained volatile throughout the week, with early correction leading the benchmark index to dip below the psychological barrier of 75,000 points. However, the bulls staged comeback on the last trading day, gaining 1,000 points.

 Overall, the KSE-100 index ended the week down by 105 points or 0.14%WoW, closing at 75,878 points on May 31, 2024.

Uncertainty surrounding the upcoming budget fueled volatility and profit-taking. With just a week remaining before the budget announcement, concerns have risen over the IMF’s high tax proposals.

Reports suggest abolishing all sales tax exemptions, except for some essential food items, and increasing the standard GST from 18% to 19%.

The budget announcement is expected to coincide with the upcoming Monetary Policy Committee (MPC) meeting, potentially causing delays as Prime Minister Shahbaz Sharif will be on an official visit to China.

May 2024 CPI inflation is projected to be 12.8% YoY. As the inflation outlook eases, the cut-off yields in the latest T-Bills auction dropped by 60bps for 3-month papers. Similarly, secondary market yields for 3-month papers fell by 118bps to 20.44%. The declining yields indicate a potential coupon rate cut in the upcoming MPC, which brought some positivity to the market.

However, with the budget’s impact still uncertain, an imminent interest rate cut in the upcoming MPC seems unlikely.

With an overall volatility in market, participation also decreased by 8.5%WoW, with the average daily traded volume falling to 511 million shares from 558 million shares a week ago.

On the currency front, PKR depreciated by 0.04%WoW to close at PKR278.33/US$.

Other major news flows during the week included: FBR announced plan to collect PKR1.296 trillion through duties, 2) Country borrowed US$7.142 billion during Jul-Apr period, and 3) Credit to private sector declined 39.7%YoY.

Top performing sectors were: Inv. Banks/ securities, Leather & Tanneries, Engineering were amongst the top performers, while laggards included: Transport, Woollen, and Property.

Flow wise, major net selling was recorded by Mutual Funds with a net sell of US$8.9 million. Insurance companies absorbed most of the selling with a net buy of US$13.1 million.

Top performing scrips of the week were: MUGHAL, FABL, FCCL, SYS, and SCBPL, while the laggards included: SHEL, PSX, BNWM, GLAXO, and YOUW.

Market performance is expected to hinge on the upcoming Federal Budget 2025, with the next MPC meeting also remaining in the spotlight.

Though, the possibility of a coupon rate cut is slim, however, any cut would likely boost positivity, especially in the cyclical sector.

Following the budget approval, the next IMF program will take center stage and become a key market trigger in the near term.

 

 

Gaza the most expensive war in Israel’s history

When Israel vastly ramped up defense spending in the 1970s to address security risks exposed in the 1973 Yom Kippur War, the economic side effects were devastating. Economists are now worried about a repeat.

The ongoing war in Gaza is the most expensive in the country’s history: The central bank has estimated the total cost of the conflict will run to 250 billion shekels or US$67.4 billion through 2025.

Defense spending before the war was at an all-time low of 4.5% of GDP. It’s set to double this year to 9%, according to Manuel Trajtenberg, a professor emeritus in the economics department of Tel Aviv University.

“The decisive test will be the government’s ability to lower the defense-spending-to-GDP ratio back to reasonable levels within several years,” he says. “Otherwise, we may slide back into another lost decade.”

Working in Israel’s favor is that its starting point was strong. Over the past 15 years, the nation’s per-capita GDP has risen above that of Britain, France and Japan.

But costs are apparent. When Hamas attacked and some 300,000 reservists rushed into uniform, Israel’s powerhouse tech industry suddenly found itself short of labor, while businesses in and around the Tel Aviv area lost some of their best customers.

With Prime Minister Benjamin Netanyahu having committed billions of shekels for spending demanded by his ultra-Orthodox coalition partners, many economists worry of a “spiral of collapse” — where Israel’s better-educated, high-earning citizens choose to emigrate rather than shoulder the fiscal burden of supporting large Orthodox families.

Scores of economists conveyed that message recently to the government, in a letter calling for an end to public support for schools that don’t train students for the modern labor market and requiring ultra-Orthodox to be drafted.

Israel already underinvests in areas such as education and health compared with developed economies. If policymakers look to free up funds for military upgrades by paring back those priorities, along with transportation and welfare, it’s the economy that may pay the price.