Biden backs Gaza ceasefire while approving $735 million arms sale to Israel


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The Israeli offensive on Gaza Strip entered its second week on Tuesday, despite US and global diplomacy efforts to stop the bloodiest round of fighting between the sides since 2014.

The Israeli military said on Monday that it was fighting a “war of attrition” in Gaza and that a ground invasion remains possible.

While US President Joe Biden expressed his support on Monday for a ceasefire, telling Israeli Prime Minister Benjamin Netanyahu that Washington seeks an end to hostilities, the White House has approved the potential sale of $735 million in precision-guided weapons to Israel. Sources in Congress told Reuters news agency that the plan faced no objection from politicians.

It's the first time the Biden administration has publicly declared its support for a ceasefire, so far having blocked all UN efforts to issue a statement on a possible truce.

Gaza health officials have put the Palestinian death toll at 212, including 61 children. Ten people have been killed in Israel, including eight from rocket attacks. The toll includes two children and a soldier.

Around midnight, six shells were fired from Lebanon towards northern Israel but fell short of crossing the border, Reuters cited the Israeli military as saying.

The UN peacekeepers in Lebanon (Unifil) said it was intensifying patrols after it detected the firing of rockets from the area of Rashaya Al Foukhar, north of Kfar Choub in southern Lebanon.

The Israeli military said late on Monday that Hamas and other Palestinian groups had fired about 3,350 rockets from Gaza – 200 of them on Monday alone – and that Israeli air and artillery strikes had killed at least 130 militants.

At least 3,150 rockets have been fired into Israel since last Monday, while Israel has hit more than 820 "targets" in Gaza.

The strikes on Gaza have caused extensive damage to infrastructure, with roads leading to hospitals hit and sewage spilling out on to the streets in some areas, after pipes were destroyed.

Gaza residents said they are currently receiving only three to four hours of electricity daily.

The White House said that Mr Biden is speaking with Israeli and other regional partners to try to urge an end to the fighting.

“The president expressed his support for a ceasefire and discussed US engagement with Egypt and other partners towards that end," the White House said in a readout of the phone call between Mr Biden and Mr Netanyahu.

The move comes amid mounting criticism from the president's own Democratic Party that he is not doing enough to end the conflict.

Twenty-nine Democratic and independent US senators on Sunday called for an “immediate ceasefire” between Israel and Hamas, and last week 12 Jewish members of Congress made a similar request.

Yet, a senior Israeli official cast doubt on Monday on the possibility of a ceasefire, saying "there is no such thing right now. There is no negotiation. There is no proposal. There is nothing on the table".

Egypt was probably the most reliable mediator, the official said. "They seem most connected."

Egypt, which shares a border with Gaza, has mediated Israel-Hamas ceasefires in the past, along with Qatar and the UN. The General Assembly will meet to discuss the violence on Thursday.

File photo of U.S. Chairman of the Joint Chiefs of Staff General Mark Milley. AFP.
File photo of U.S. Chairman of the Joint Chiefs of Staff General Mark Milley. AFP.

Amid seemingly fruitless diplomatic efforts to stop the violence, the top US military officer, General Mark Milley, warned the violence could spread, Reuters reported.

"My assessment is that you risk broader destabilisation and you risk a whole series of negative consequences if the fighting continues," Mr Milley, chairman of the Joint Chiefs of Staff, told reporters before landing in Brussels on Monday for talks with Nato allies. "It's in no one's interest to continue fighting."

Meanwhile, Jordan promised on Monday to look into a parliamentary request to expel the Israeli ambassador as the authorities take a tougher diplomatic line on the war.

Prime Minister Bisher Al Khasawneh was quoted as saying the government will study the request “in accordance with our national interest".

Parliament “unanimously” presented a memo to the government on Monday demanding the expulsion of the Israeli ambassador in Amman, state television said.

Jordan was the main destination for Palestinians fleeing the 1948 and 1967 conflicts. They and their descendants comprise a large proportion of Jordan’s 10 million population.

Jordanian officials say the kingdom has begun intensive diplomacy to convince world powers to curb a disproportionate Israeli response against Gaza, which has been ruled by Hamas militants since a Palestinian civil war in 2007. Hamas, which is linked to the Muslim Brotherhood, was expelled from Jordan in the late 1990s.

On Monday, US National Security Adviser Jake Sullivan held a second call with his Israeli counterpart Meir Ben-Shabbat and with Egypt's Gen Abbas Kamel.

“The United States is engaged in quiet, intensive diplomacy and our efforts will continue,” he said in a statement.

In calls to his Saudi, Qatari and Egyptian counterparts on Sunday, US Secretary of State Antony Blinken had avoided using the term “ceasefire”, instead using softer language such as expressing hopes to “restore calm in Israel and the West Bank and Gaza”.

Mr Blinken on Monday spoke with Israeli Foreign Minister Gabi Ashkenazi, the US State Department said.

The two discussed the path forward, with Mr Blinken noting that the US would remain engaged with Israel, the Palestinian Authority, and other regional stakeholders to bring an end to the hostilities.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”