Netanyahu and the art of deflection

Balance of Power From FOLLOW US SUBSCRIBE   If anyone thought Israel's main focus ahead of the Sept. 17 repeat election would be campaign debates, then missile barrages and rhetorical firebombs put that assumption to rest. With just two weeks before voters deliver their referendum on Benjamin Netanyahu's rule for the second time in five months, violence flared along Israel's border with Lebanon and the prime minister started talking again about annexing more than 120 Jewish settlements in the West Bank. That long-shunned notion has gained currency in nationalist circles in recent years, eclipsing the land-for-peace mantra that once reigned. On Sunday, antitank missiles from Iran's Lebanese Hezbollah proxy, following a suspected Israeli attack on group operatives in Syria last month, touched off an exchange of fire with the Israeli military but stopped short of a major escalation. The Trump administration, whose long-promised peace plan is on hold until after the Israeli vote, voiced support for Israel as the threat of war loomed. It's not clear whether Netanyahu's annexation talk is more than a campaign ploy: He's scrambling for votes as polls suggest he's no better able to form a coalition today than when he failed after winning May's election.But with the Israeli military accusing Iran of helping Hezbollah build precision-guided missiles, expect to hear more reports of unrest along that combustible frontier. - Amy Teibel A campaign poster bearing Netanyahu's photo.  Photographer: JACK GUEZ/AFP Global Headlines German relief | In the end, it could have been much worse. Angela Merkel's Christian Democrats beat off a challenge by the far-right Alternative for Germany (AfD) in a regional election in Saxony, while her Social Democratic coalition partner squeezed out the same party in Brandenburg. The AfD surged in both eastern states but the establishment prevailed as voters defaulted to the safer option. For now the coalition lives on. Death spiral | Argentina's President Mauricio Macri imposed capital controls Sunday in a bid to contain an escalating financial crisis eight weeks out from what looks like a doomed bid for re-election. It's a desperate act for Macri, who's been forced to reintroduce the kind of interventionist policies he once excoriated. It may not be enough to defeat his challenger, Alberto Fernandez, but might just help Macri serve out the rest of his term. Kashmir anger | All is quiet in Kashmir, but it's far from peaceful. Businesses, schools and shops have been closed in the restive state since Aug. 5, when Indian Prime Minister Narendra Modi's government revoked almost seven decades of autonomy, Archana Chaudhary reports. With a heavy Indian military presence in the valley, the anger is palpable and Modi's stated aim of bolstering Kashmir's economy by taking direct control looks to be a tall order. Hurricane Dorian | The sheer violence of the Category Five storm that slammed Bahamas and is headed to the U.S. East Coast has surprised President Donald Trump. "I'm not sure that I've ever even heard of a Category Five," Trump said. Three Category 5 hurricanes have hit the mainland U.S. or U.S. territories, including Puerto Rico, during his term, causing about $165 billion in damage. Summer's over | British Prime Minister Boris Johnson is locked in a fight with the country's parliament over Brexit, and no one knows how it could end with Oct. 31 looming as the deadline for the U.K.'s departure from the European Union. One thing is certain: The rules of the U.K.'s unwritten constitution are being stretched to the limit. Lawmakers return on Tuesday with Johnson's opponents expected to push their plan to stop the U.K. from leaving the bloc without a deal — an option the government is keeping firmly on the table. What to Watch This Week U.S. Vice President Mike Pence will today meet with Polish President Andrzej Duda, after attending a ceremony in Poland on Sunday marking 80 years since the start of World War II. Hong Kong gets back to business after a weekend that saw some of the worst violence since anti-China protests began almost three months ago. Italy's acting Prime Minister Giuseppe Conte is due to present his government lineup to the president by Wednesday as he forges an unlikely coalition of political rivals. And finally... Brazilian President Jair Bolsonaro has been in the news a lot of late, from the burning of the Amazon rainforest to an acrimonious fight with France's Emmanuel Macron. This time it's over an operation to his knee that will take him out of action for 10 days. He's had three operations since he was stabbed in the stomach while campaigning in September 2018. Source: Bolsonaro's Twitter account. Photo is accompanied by a text reading: "Now in Sao Paulo with Drs. Macedo and Leandro. - Apparently I will enjoy some 10 days of vacation with them soon. - Good morning everyone."   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to sign up here.   Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022