Market Update

Morning Round-Up

In the Middle East: There’s a lot of moving parts according to the papers…In Israel, Netanyahu has “reject[ed] outright the terms of surrender of the monsters of Hamas”. This was a proposal by Hamas to release hostages in return for an immediate ceasefire, a withdrawal of Israeli troops, and the release of Palestinian prisoners in Israel.

The US, Egypt and Qatar meanwhile are pushing both Israel and Hamas to start a phased process that would start with hostages being released and eventually lead to a withdrawal of Israeli forces. So far this isn’t being bought by Netanyahu, as he is adamant that a two state solution isn’t the answer, whereas other regional actors are.

The EU meanwhile has proposed that they set out the consequences for Israel of engaging or not engaging with their proposed peace plan. The EU doesn’t have the leverage that the US has over Israel, but it is the country’s largest trading partner, thanks in part to an association agreement that gives them preferential trade and investment benefits.

Iran has accused Israel of killing 5 Revolutionary Guard members in an airstrike on Damascus, whist it is also reported that commanders from the Revolutionary Guard are on the ground in Yemen and helping direct and oversee Houthi attacks on ships in the red Sea.

AfD Would Call Referendum

In Europe: Germany’s right wing AfD party have said that they’d call a Brexit style referendum if they weren’t able to make material reforms to the EU, if they were to come to power. The party want to see the “democratic deficit” of the EU removed, whilst the European Commission needs their powers curbing as an “unelected executive”. The party is ahead of all the parties that make up the current government, according to polls, and is eyeing regional elections in September to make a big impact.

Germany is traditionally staunchly pro-Europe and though the AfD are growing in popularity, support for EU membership is overwhelmingly favourable, so we’re not too sure what the AfD would gain by such a move – aside from stoking more pronounced division. The FT has the story, click here to read.