ISRAEL: Report-Trump & Netanyahu Seek Swift Expansion Of Abraham Accords
Israel Hayom reports that, according to a source familiar with the matter, PM Benjamin Netanyahu and US President Donald Trump are seeking to move swiftly on reaching normalisation agreements with other Arab nations under the Abraham Accords. Given the major geopolitical and security upheaval in the Middle East over the past two years, the prospect of more countries being added to the Accords alongside Bahrain, the UAE, Morocco, and Sudan would at first glance seem unlikely.
- The source cites a call between Trump, US Secretary of State Marco Rubio, Netanyahu, and Minister of Strategic Affairs Ron Dermer after the US attack on Iranian nuclear sites.
- The four supposedly agreed that "The war in Gaza will end within two weeks. The terms of the end will include the entry of four Arab countries (including Egypt and the Emirates) to govern the Gaza Strip" Two sources tell Israel Hayom Trump is applying "heavy pressure" on Netanyahu to end the war in Gaza.
- The Abraham Accords would be expanded to include Saudi Arabia and Syria, among others.
- Article claims one of the aims being that "The US will recognize the application of some Israeli sovereignty in Judea and Samaria [the West Bank]."
- Saudi recognition of Israel would be a major political and economic development for the region, but is difficult to see happening while war in Gaza continues, or indeed if Israeli settlements in the West Bank expand further.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US DATA: Texas Manufacturing Activity And Prices Steadier In May
May's Texas Manufacturing Outlook Survey showed an improvement from April and overall steady activity in the month, with the production index, "a key measure of state manufacturing conditions... indicating flat output this month after modest growth in March and April", per the Dallas Fed.
- Indeed, production fell 4.2 points to 0.9. But the general business activity index rose 20.5 points to -15.3, a three-month best, with 6-month ahead production up 16.3 points to 31.1, highest in 4 months. New orders picked up 11.3 points to -8.7, which apart from March's 29-month low would have still been the weakest since November 2024. Employment rose 7 points to 3.5.
- From an inflation perspective, prices paid pulled back 7.7 points to 40.7, with prices received up 0.2 to 15.1 - both still elevated. There was a bit more of a deceleration in 6-month ahead expectations, with prices paid down 7.8 points (39.8, 5-month low) and received ticking 1.4 points lower (28.2).
- The majority of anecdotal comments in the Dallas report mentioned "tariffs", mostly in a negative way though a couple respondents noted that confidence would improve if and when deals were struck. Indeed there was scarce mention of the May 12 US-China tariff climbdown (survey data were collected May 13–21) and even then the confidence seemed tentative (a firm in Computer and electronic product manufacturing: "I would say the uncertainty has decreased in the very short term (up to 90 days) based on the U.S.–China tariff rollback").
- The most tangible impact on the survey was in the 34.4 point drop in the Outlook Uncertainty index, to 12.7.
- We get the Richmond Fed's manufacturing survey Wednesday, which will help shore up the degree to which confidence improved after the May 12 tentative "deal". Improvements so far have been seen in Philadelphia, Dallas, and Kansas, with Chicago activity and NY Fed's Empire State current conditions indices lower vs April.
FED: US TSY 13W AUCTION: NON-COMP BIDS $2.347 BLN FROM $76.000 BLN TOTAL
- US TSY 13W AUCTION: NON-COMP BIDS $2.347 BLN FROM $76.000 BLN TOTAL
FED: US TSY 26W AUCTION: NON-COMP BIDS $1.621 BLN FROM $68.000 BLN TOTAL
- US TSY 26W AUCTION: NON-COMP BIDS $1.621 BLN FROM $68.000 BLN TOTAL
