THE SHOW NOTES: Israel's Invasion, Nikki Haley Surges, & The UAW Strike

Welcome! A former NHL player died after a freak hockey accident.

NEW: Joe Biden won’t be on the ballot in New Hampshire. - Politico

OUT: Mike Pence dropped out of the presidential race.

MUST READ: The Decolonization Narrative Is Dangerous and False - The Atlantic

MARKETS LAST WEEK: Nasdaq lost 2.4% while S&P is down 10% from June highs.

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Israel

Prime Minister Benjamin Netanyahu said Israel has began the second stage of its war against Hamas with targeted ground invasions up to two miles inside Gaza. The northern Hamas stronghold of Gaza City has been targeted with relentless bombings and now has Israeli troops nearly surrounding its perimeter.

The problem: Hamas is known for the extensive tunnel network it has created across much of Gaza. Beyond a means of transportation for its fighters, these tunnels are believed to be where its military leaders live and where the majority of the 200+ Israeli hostages are currently being held. As a result, this weekend Israel launched 150 heavy munition strikes to penetrate the tunnels which could be felt as far away as Egypt.

Explain: A leader of Hamas was asked in this interview why Hamas built tunnels to protect its fighters but won’t build bomb shelters to protect civilians. He replied that protecting civilians was a job for the UN and Israel, not Hamas.

Netanyahu: The Israeli Prime Minister issued an apology over the weekend for blaming Israel’s security establishment for failing to prevent the October 7th terror attacks. “The things I said following the press conference should not have been said and I apologize for that.” The comments along with the intelligence failure and ongoing hostage negotiations bring to light larger questions surrounding Netanyahu’s ability to secure public support. Go read this Wall Street Journal (paywall) piece for more.

Civilians: As the humanitarian crisis reaches new lows in southern Gaza, the Egyptian government is precluding any Gazans from crossing into Egypt. 33 humanitarian aid vehicles were allowed to pass into southern Gaza delivering a fraction of the resources the 2.3 million people require.

Democrats: While all eyes have been on Mike Johnson’s first few days as Speaker of the House, House Democrats are increasingly at odds over how to handle Israel. Moderate Democrats are fully backing Israel’s invasion of Gaza while the progressive wing vocally opposes it. Tensions reached a boiling point when Democratic House Rep Andre Carson called fellow Democrat Josh Gottheimer a '“punk and coward” for supporting aid for Israel.

Reminder: Nowhere in the laws of war is there a prohibition on sieges that hurt civilian populations. - Twitter

Bonus: Israel Calls Out Hamas Health Ministry Video That Shows ‘Dead Body’ Fidgeting Under Sheet - The Messenger

Iowa

The gold standard in Iowa polling has Donald Trump 30 points ahead of second place with 43% of likely caucusgoers claiming they will support the former President.

New: Nikki Haley gained the most support in the crowded field surging 10 points into a tie for second place with Ron DeSantis at 16% each.

General: The Real Clear Politics polling average continues to give Donald Trump a slight edge over Joe Biden. However, Joe Biden performs significantly worse in a head-to-head matchup against Nikki Haley.

My take: Nikki Haley's rise is real. Her opponents have dismissed it so often, and so loudly they're now taking to airing attack ads against her. Her rise in Iowa complicates DeSantis's path because she outperforms him in New Hampshire right now, and it's more like Pence fans go her way. - Twitter

UAW Strike

The United Auto Workers strike is over after the union secured a labor deal with General Motors following weeks of contentious negotiations. As the final holdout, the deal General Motors secured with the UAW resembled the previous deals it struck with Ford and Stellantis.

Numbers: Ford claims the weeks-long strike cost the automaker $1.3 billion and will raise the price of new vehicles by $850 to $900. The cumulative rate of increased wages and added benefits gave union members the equivalent of a 68% pay increase for new workers.

Trending News:

• Mike Johnson embraces powerful McCarthy-aligned super PAC - Politico

• The Insidious Way the Biden Admin Forces Staff to Preach DEI - Daily Signal

• Why are some people so afraid of clowns? - MSN

• RUBIO: We have one word for terror supporters who abuse our broken visa system - Fox News

• Almost a Quarter of the World Feels Lonely - Gallup

• Media Confidence in U.S. Matches 2016 Record Low - Gallup

• Many are uncertain about their financial futures as household expenses outpace earnings - AP

• Witness to Maine Mass Shooting in Bowling Alley Says Robert Card Was ‘Relaxed and Methodical’ as Gunfire Rained - The Messenger

• COVID Lockdowns Were a Giant Experiment. It Was a Failure. - NY Mag

• Why it’s so expensive to be single in the U.S. - CNBC

• Federal office buildings are 80% vacant, government audit finds - Washington Times

• Antisemitic Comments Increase Across Chinese Social Media - WSJ (paywall)

• Maine Gunman Disclosed He Had Mental Health Issues, Gun Shop Owner Says - NYT (paywall)

• If Some Cold Medicines Don’t Work, What Should You Take for a Stuffy Nose? - WSJ (paywall)

Market snapshot: