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As Starbucks aims to bring back customers and assuage investors with its turnaround strategy, it is also winning over its store managers with promises to add more seating inside cafes and promote internally.

Since CEO Brian Niccol’s first week at the company, he’s been pledging to bring the company “back to Starbucks” to lift sluggish sales. That goal was in full view at the company’s Leadership Experience, a three-day event in Las Vegas for more than 14,000 store leaders this week.

Starbucks unveiled a new coffee called the 1971 Roast, a callback to the year that its first location opened at Pike Place in Seattle. The finalists at Starbucks’ first-ever Global Barista Championships referred to “back to Starbucks” as they prepared drinks for judges. Even the Wi-Fi password was “backtostarbucks!”

To investors, Niccol has already presented a multi-part strategy that involves retooling the company’s marketing strategy, improving staffing in cafes, fixing the chain’s mobile app issues and making its locations cozier. The company also laid off roughly 1,100 corporate workers earlier this year, saying it aimed to operate more efficiently and reduce redundancies.

Starbucks shares have climbed nearly 20% since April and are trading just shy of where they were after a nearly 25% spike the day Niccol was announced as CEO.

While Starbucks has taken major steps to win back customers and Wall Street, it’s also trying to regain faith among its employees. Staffers have had concerns about hours and workloads for years, sparking a broad union push across the U.S.

To excite the chain’s store managers, Starbucks executives’ pitch this week focused on giving them more control. Before launching new drinks, like a protein-packed cold foam, the company is first testing them in five stores to gain feedback from baristas.

When the chain increases its staffing this summer, managers will have more input on how many baristas they need. And next year, most North American stores will add an assistant manager to their rosters.

“You are the leaders of Starbucks. Your focus on the customer is critical. Your leadership is critical. And as you return to your coffeehouses, please remember: coffee, community, opportunity, all the good that follows,” Niccol said on Tuesday.

Niccol’s “back to Starbucks” strategy centers on the idea that the company’s culture has faltered. Its Leadership Experience, typically held every couple of years, was the first since 2019 — three CEOs ago.

“We are a business of connection and humanity,” Niccol said on Tuesday afternoon, addressing a crowd of more than 14,000 managers. “Great people make great things happen.”

As more customers order their lattes via the company’s app, its cafes have lost their identity as a “third place” for people to hang out and sip their drinks.

To return to Starbucks’ prior culture, the company is unwinding previous decisions — like removing seats from its cafes. In recent years, the chain has removed 30,000 seats from its locations. Those renovations have irritated both customers and employees; the manager of Niccol’s local Starbucks in Newport Beach, California, even asked him to remove her store from its renovation list because she wanted to keep the seating, according to Niccol.

“We’re going to put those seats back in,” Niccol said, bringing a big wave of applause from the audience.

He earned more applause from the audience when discussing the chain’s plans to promote internally as it eventually adds 10,000 more locations in the U.S.

Although historically roughly 60% of Starbucks store managers have been internal promotions, the company wants to raise that to 90% for its retail leadership roles. Thousands of new cafes means 1,000 more district managers, 100 regional directors and 14 regional vice presidents for the company — and more upward career mobility for its store leaders.

Staffing more broadly has been a concern for Starbucks and its employees, fueling a wave of union elections across hundreds its stores. Past management teams have cut down on the labor allotted to stores, helping profit margins at the cost of burning out baristas and slowing service.

Under Niccol, Starbucks is changing the trend. The company is accelerating plans to roll out its new Green Apron labor model by the end of the summer, because tests have shown that it improves service times and boosts traffic. As part of the model, managers will have more input on how much labor their store needs.

And Chief Partner Officer Sara Kelly received a standing ovation from the crowd for her announcement that most North American locations will receive a full-time, dedicated assistant store manager next year.

“For much of the time, your store is operating without you there, and you share that even when you’re not in the store, you’re not able to fully disconnect, and it can feel like the weight of everything is on your shoulders. … It affects everything, the partner experience, the customer experience, the performance of your store,” Kelly said, addressing the store managers in the audience.

Underscoring the challenges Niccol faces in recapturing the company’s brand, the two speakers who scored the most applause from store managers are no longer actively involved in the company.

Former chairwoman Mellody Hobson scored standing ovations during both her entry and exit onto the arena’s stage. Hobson, wiping tears from her eyes, thanked the Starbucks employees whom she said always made her feel welcome in their stores.

She stepped down from her position earlier this year, ending a roughly two-decade tenure that culminated with her becoming the first African American woman to become the independent chair of a Fortune 500 company. Hobson also serves as co-CEO of Ariel Investments.

Hobson ceded her position as chair of the board to Niccol when he joined the company in September. Niccol credited her with poaching him from Chipotle as Starbucks sought to find a leader who could turn around its flailing business.

“A quick conversation [with Hobson] turned into something really special for me,” Niccol said.

And Hobson’s longtime friend Howard Schultz also earned standing ovations from store managers.

Schultz, the three-time CEO who grew Starbucks from a small chain into a coffee powerhouse, made a surprise appearance at the Leadership Experience on Wednesday morning. It marked the first time that he’s appeared with Niccol publicly since the board tossed out his handpicked successor, Laxman Narasimhan, and selected the then-Chipotle CEO to take the reins.

Starbucks has long been plagued by questions about its succession, given Schultz’s former willingness to return to the helm of the company. But since Niccol’s appointment, industry analysts have thought that he might finally be the CEO who manages to escape Schultz’s lingering influence over the coffee giant.

The ghost of Schultz lingered earlier in the event. Niccol shared a story about being inspired hearing Schultz speak at Yum Brands, Niccol’s then-employer, back in 2008. The 71-year-old chairman emeritus also appeared in video form on Tuesday afternoon to thank Hobson for her service to the company.

During his conversation with Niccol on Wednesday, Schultz co-signed his plan to get “back to Starbucks,” saying that he did a cartwheel in his living room the first time that he heard about it.

He also asked managers to bring that energy back to their own Starbucks locations.

“Be true to the coffee, be true to your partners,” Schultz told the audience. “And I know we’re going to come out of here … like a tidal wave and surprise and delight the world and prove all those cynics wrong again, just as we did in 1987.”

This post appeared first on NBC NEWS

Rolls-Royce Holdings plc (LSE: RR.) has become one of the most closely watched stocks on the FTSE 100 after delivering an astonishing 909% return over the past three years.

What started as a dramatic post-pandemic recovery story in 2022 has now evolved into a complex mix of structural turnaround, strategic wins, and speculative momentum.

With shares climbing 9.1% in the past month alone, the aerospace and defence giant is now entering a new phase—one that tests whether the recent gains can turn into lasting value for shareholders.

Government backing adds momentum to Rolls-Royce’s growth plan

On 10 June, the UK government confirmed its support for Rolls-Royce’s small modular nuclear reactor (SMR) programme, a move that marks a significant development in the company’s transition beyond traditional aviation.

The SMR initiative has the potential to unlock new revenue streams, particularly as global demand for cleaner energy infrastructure continues to grow. However, success will depend on securing international partnerships to scale the technology.

This development follows shortly after a solid update on 1 May, in which Rolls-Royce reaffirmed its full-year guidance for 2025, projecting an underlying operating profit of between £2.7 billion and £2.9 billion.

That confidence was underpinned by several business unit highlights: large engine flying hours in the Civil Aerospace division rose to 110% of 2019 levels, Defence orders remained robust, and Power Systems continued to expand on the back of surging demand from data centres.

From debt risks to buybacks: Financial strength has returned

Once seen as a company under immense financial strain, Rolls-Royce has made notable progress in reducing net debt and increasing shareholder returns.

The group has already completed £138 million of its planned £1 billion share buyback programme.

This marks a sharp contrast to the pandemic-era concerns over liquidity and debt sustainability, which had weighed heavily on investor sentiment in 2020 and early 2021.

The company’s turnaround under CEO Tufan Erginbilgic has focused on reshaping operations, improving margins, and building resilience across sectors.

With Civil Aerospace, Defence, and Power Systems all reporting steady growth, the group’s multi-pronged structure is proving beneficial amid changing macroeconomic conditions.

Valuation concerns emerge amid high expectations

Despite the strong financial recovery, analysts have flagged valuation risks. Rolls-Royce currently trades at a price-to-earnings (P/E) ratio of 44, suggesting high expectations are already baked into the stock.

Any signs of revenue softening or delayed project execution—especially in its SMR programme or Power Systems expansion—could prompt a market correction.

The stock’s performance is also vulnerable to macro shocks. The Civil Aerospace division, which remains a major profit driver, is tightly linked to global air travel.

Any downturn in passenger demand, oil price spikes, or geopolitical disruptions could impact engine sales and servicing revenue. Similarly, Power Systems could be exposed if growth in data centre investments slows.

Analyst ratings show mixed near-term sentiment

The average one-year share price target from 12 analysts stands at £859.6, suggesting a potential downside of around 1.5% from current levels.

However, the long-term sentiment remains optimistic. Of the 14 analysts providing stock recommendations, 10 rate it a Strong Buy, while two call it a Hold and two label it a Sell.

This divergence points to differing views on whether the company’s transformation is sustainable at its current valuation.

With its shares up more than 85% over the past year and nearly 10-fold over three years, Rolls-Royce has undeniably rewarded patient investors.

But as the company embarks on new ventures such as nuclear technology and continues to deliver on high growth expectations, the key question is whether it can keep delivering without a reset in investor expectations.

The post Up 909% in 3 years: can Rolls-Royce sustain its rally? appeared first on Invezz

The Vanguard S&P 500 ETF (VOO) crashed by over 1.10% on Friday as fresh geopolitical fears emerged. It dropped to a low of $548, down by 1.40% from its highest point this month. This article provides a VOO forecast and explores the top catalysts to watch.

FOMC and other central bank decisions

The first main catalyst that will impact the S&P 500 Index is interest rate decisions by some of the most important central banks. 

The Bank of Japan (BoJ) will be the first central bank to deliver its monetary policy decision on Tuesday. 

Economists expect the bank to leave rates unchanged at 0.50%. They have mixed opinions on the actions of the central bank on the bond market. Some believe that the bank will taper its bond purchases, while others see it maintaining status quo.

Historically, BoJ actions have had some impact on the US stock market because Japan is one of the biggest investors globally. Also, many American companies have a big presence in Japan.

The Federal Reserve will be the most important catalyst for the VOO ETF this week. The bank has already hinted that it will not cut interest rates this time as it observes the impact of tariffs on inflation. A dovish tilt after last week’s US inflation data will be a bullish catalyst for the stock market.

The other top central banks that may impact the S&P 500 Index this week are the Bank of England (BoJ) and the Swiss National Bank (SNB).

Israel and Iran war

The other top catalyst for the VOO ETF is the ongoing crisis between Israel and Iran that contributed to its plunge on Friday. 

This conflict will likely continue, with Trump warning that the US may be involved at some point. 

The two countries have continued launching missiles at each other in the past few days. 

The main impact of this war on the S&P 500 Index is that it will push crude oil prices higher. Higher oil prices will make inflation stickier and reduce the odds of the Federal Reserve slashing interest rates soon. 

The war could benefit oil and defense stocks like Lockheed Martin, RTX, General Dynamics, and Boeing.

G7 meeting 

The other potential catalyst for the S&P 500 Index will be the upcoming G7 meeting in Canada. This meeting brings together leaders of the most advanced countries globally.

Historically, the meeting has a minor impact on US stocks. This one, however, it may have an impact as Trump is preparing to meet with leaders and reach trade agreements. 

Potential deals with the European Union and Japan would be bullish for the US stock market. 

Quadruple witching

The final catalyst for the VOO ETF will be Friday’s quadruple witching. This is a key event that happens four times a year when stock index futures, stock index options, stock options, and single stock futures expire on the same day. 

Historically, this quadruple witching leads to market volatility and arbitrage opportunities.

VOO ETF stock price analysis

VOO stock chart | Source: TradingView

The daily chart shows that the VOO ETF stock bottomed at $442 in April and then peaked at $556 on June 11 as it formed a V-shaped recovery.

It has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. It 

The Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it is gaining momentum. 

Therefore, the fund will likely continue rising as bulls target the year-to-date high of $560, its highest point in February. A move above that level will confirm more gains by invalidating the double-top pattern. 

The other risk is that the VOO ETF has formed a rising wedge pattern, pointing to a retreat, potentially to $520. 

The post Top 4 catalysts for the S&P 500 VOO ETF stock this week appeared first on Invezz

Meta has officially announced plans to introduce advertisements to WhatsApp, nearly 11 years after acquiring the messaging platform in a $19 billion deal.

The company announced that businesses will now be able to run “status ads” within the Updates tab of the app—a space used by users to share disappearing content similar to Instagram Stories.

The move marks a shift in WhatsApp’s longstanding approach, which had until now avoided any form of advertising.

According to Meta, the ads are designed to initiate interactions between users and advertisers via the app’s messaging tools.

Meta executives said this strategy aims to avoid interfering with personal conversations, which will remain end-to-end encrypted.

More monetization plans for Meta

In addition to status ads, Meta also plans to monetize WhatsApp’s Channels feature.

Introduced in June 2023, Channels allow individuals and organizations to broadcast updates to followers.

Meta said it will enable search ads in the Channels directory and allow channel administrators to offer monthly subscription services.

While Meta will not immediately earn revenue from these subscriptions, the company plans to take a 10% cut in the future.

Organizations will also be able to pay to boost the visibility of their Channels when users search the directory, a model similar to app store search ads.

WhatsApp founders opposed advertising

WhatsApp’s founders, Jan Koum and Brian Acton, had publicly expressed opposition to advertising, reportedly leaving Meta after disagreements over the company’s efforts to monetize the platform.

Since acquiring WhatsApp in 2014, Meta has focused on growing its user base globally while keeping the platform largely free of commercial content.

Though Meta does not disclose WhatsApp-specific financials, analysts have estimated that it generates between $500 million and $1 billion annually, primarily by charging businesses to use messaging tools for customer interaction.

Nikila Srinivasan, Meta’s head of product for business messaging, said the new ads will be guided by limited targeting criteria, including a user’s location, language, device, and previous ad interactions.

“We really believe that the Updates tab is the right place for these new features,” she said.

Srinivasan also reiterated that personal messages and calls would remain encrypted.

CEO Mark Zuckerberg previously described WhatsApp as “the next chapter” for Meta and said that messaging between businesses and consumers should become a core pillar of the company’s growth strategy.

The post WhatsApp’s ad-free days are over as Meta begins monetization push appeared first on Invezz

Meta Platforms Inc. has once again captured the attention of Wall Street with its aggressive push into artificial intelligence, sending its stock up more than 40% from April lows and back near record highs.

The latest catalyst: a $14.3 billion investment in Scale AI, a data-labeling startup whose CEO will join Meta’s growing team focused on developing artificial general intelligence.

The Scale AI deal, finalized last week, comes on the heels of Meta raising its capital expenditure forecast for 2025 to as much as $72 billion — a figure that underscores CEO Mark Zuckerberg’s unrelenting pursuit of dominance in the AI arms race.

Despite the scale of investment, market sentiment has remained upbeat with analysts bullish on the company’s use of AI to drive revenue and accelerate growth.

Some analysts estimate that generative AI tools could add 1–2% to Meta’s annual ad revenue in the near term, and up to 4% by decade’s end.

However, some also fear that continued heavy spending on AI could make the company vulnerable as its impact on its earnings remains unclear so far.

AI momentum lifts broader market optimism

Meta’s rally is part of a wider resurgence in AI-related stocks, which have gained steam after first-quarter earnings helped allay fears that major tech firms might curtail AI infrastructure spending.

The Global X Artificial Intelligence & Technology ETF, which tracks companies like Meta and Amazon, has risen 32% since April 8, far outpacing the S&P 500’s 20% gain and the Nasdaq 100’s 27% over the same period.

Some attribute this resurgence to geopolitical developments, notably the temporary pause in US tariffs announced by President Donald Trump, which spurred a broad relief rally across equities.

Source: Bloomberg

Strategic pivot from metaverse to AI yields results

Meta’s rebranding and pivot from metaverse projects to AI-driven advertising and automation appear to be paying off.

A Bloomberg report cited how Allen Bond, portfolio manager at Jensen Investment Management, bought Meta shares for the first time in recent weeks, in part because of the company’s aggressive spending on AI.

“Using AI to optimize the data it has on users for revenue is a clear application, one that allows Meta to play offense while Alphabet is playing defense,” Bond said in the report, referring to concerns that the Google parent could lose market share in the lucrative search business to AI services like ChatGPT.

“While AI is expensive, there is good evidence that it is really paying off so far.”

In the first quarter of 2025, Meta reported a record 31% return on invested capital — more than double the levels seen in 2023 when high spending on metaverse projects dampened margins.

The company now uses AI extensively to improve ad targeting, boost engagement across platforms like Instagram and WhatsApp, and even automate ad creation.

Stock performance outpaces peers — but for how long?

META stock has shown remarkable gains in the past two years, rising 194% in 2023 and another 66% in 2024.

This performance marks a dramatic turnaround from the 64% plunge in 2022.

However, questions remain about the sustainability of these gains.

“It is still in the buy range, since you’re getting pretty strong growth for a pretty reasonable price,” said Greg Halter, director of research at the Carnegie Investment Counsel.

“Still, rallies like this don’t continue forever, and it certainly isn’t the screaming buy it was not too long ago.”

While Wall Street remains broadly optimistic — nearly 90% of analysts tracked by Bloomberg recommend buying — the stock is now trading close to the consensus price target.

META appears fully priced from valuation standpoint

According to Forbes, citing insights from Trefis, from a valuation standpoint, Meta appears fully priced.

Shares trade at 24.5 times estimated earnings, cheaper than other megacaps, but still above its own average over the past decade of about 22 times.

It is currently trading at 10.6 times trailing revenue — well above its four-year average Price-to-Sales (P/S) ratio of 6.8.

Trefis currently values Meta at $702 per share. Its current share price is $682.87.

Further, Trefis says, the long-term impact of AI on the company’s earnings remains unclear, making its continued heavy spending in this area a potential vulnerability.

Since 2023, Meta has already committed $77 billion in capital expenditures, with plans to invest another $64 to $72 billion this year, largely toward building AI infrastructure.

The post Meta’s AI push drives stock higher: is there further upside or is the stock fully priced? appeared first on Invezz

In 1823, President James Monroe drew a firm line in the sand: the Western Hemisphere would be closed to further European interference and, most importantly, America’s primary domain of industrial, political, and military control. The Monroe Doctrine, while audacious, proved effective and laid the groundwork for the Western Hemisphere as America’s stepping stone to the rest of the world. America was not yet a superpower and could not enforce it alone, however. Instead, America aligned British naval dominance with our interests to build a coalition of opportunity. America asserted its position, secured a partner through alignment against common rivals, and laid the groundwork for its emergence as a global superpower.

We find ourselves at a similar inflection point. The battleground isn’t about territory or shipping lanes, however. Today, it’s about computing power and associated techno-industrial dominance. Given the rate of change and speed of adoption, the stakes are higher than ever. 

Artificial intelligence turns data centers into industrial hubs for exponential innovation. Today, a country’s value lies not only in human capital and raw resources but also in hardware, the sovereignty to choose its own destiny, and control of the global AI technology ecosystem. 

To maintain dominance in this new era, America needs a new Monroe Doctrine, for AI: one founded on realism, committed to fostering hemispheric stability, and laser-focused on expanding our technological sphere of influence to secure the future.

Three Core Operating Principles for a Monroe Doctrine of AI

1. Flood the world with American AI Hardware

Export controls have become the default tool for U.S. policymakers attempting to contain China’s rise in AI, but they are backfiring. Instead of crippling China, they have harmed America’s most important tech company: NVIDIA. Its market share in China has plummeted from 95% to 50% in just four years, not due to superior Chinese competition, but because U.S. policy rendered the sale illegal. 

This created a vacuum in the world’s second-largest AI market. Into that vacuum stepped Huawei, offering not only rival chips but also building an entire AI ecosystem from the ground up: rare earth mining, chip design, infrastructure, and models. They aren’t just catching up. We’re handing them the advantage.

Rather than making ourselves an unreliable trading partner for countries eager to buy our most critical export, the U.S. should saturate the free world with American chips, which are hardened at the hardware level for security and compliance. This isn’t merely about defeating China. It’s about becoming the system that others rely on. The goal is to make our stack, our chips, our software, our standards, as indispensable as the dollar. Power comes from ubiquity, not scarcity.

2. Re-anchor the Western Hemisphere

The Western Hemisphere remains America’s home-field advantage. Leaders like Nayib Bukele in El Salvador and Javier Milei in Argentina are discarding outdated anti-American orthodoxies. They are pragmatic, growth-focused, and receptive to deeper cooperation. Now is the time to act.

Nearshoring involves more than just mitigating supply chain risks; it represents an industrial strategy. The U.S. should concentrate on high-end manufacturing: data center infrastructure, power systems, and semiconductors. Meanwhile, our neighbors in the Americas can handle lower-margin but crucial production that supports AI infrastructure at a lower cost than China, along with enhanced trust and transparency. Mexico is among the most affordable locations globally for manufacturing and assembly.

Artificial intelligence turns data centers into industrial hubs for exponential innovation. Today, a country’s value lies not only in human capital and raw resources but also in hardware, the sovereignty to choose its own destiny, and control of the global AI technology ecosystem. 

Re-anchoring our hemisphere to America’s AI ecosystem is how we create a foundation for the AI age, a Marshall Plan for computing, chips, and code. Let China maintain its Belt and Road of low-cost spyware. We’ll develop a hemisphere of excellence and trust.

3. Protect the Indo-Pacific Front, The Ring of Fire

Japan, South Korea, and Taiwan are the front lines of U.S.-China tech competition. Their fabrication facilities, standards, and developer ecosystems shape the global AI ecosystem. If we don’t support them with open access to U.S. technology and customers for U.S. products, China will. China is willing, and increasingly able, to fill any vacuum we leave behind.

And it’s not just the big three who are part of the Ring of Fire. Singapore, Malaysia, the Philippines, and Vietnam are all in play. Each has a tense, complex relationship with Beijing and is actively seeking deeper tech and trade ties with the U.S. The window is open, but not forever.

That means rethinking how we deploy tools like export controls and tariffs. Tariffs misalign incentives, punish allies, and raise the cost of the very inputs we need to reshore advanced manufacturing. Export restrictions that limit friendly access only help China’s competitors build alternatives. Export controls and tariffs should hamper our adversaries, not our companies and platforms.

Let’s be clear: the primary goal isn’t to slow China down. China is going to China. The goal is to stay ahead and play to our strength: open markets that scale. That’s how we win.

The Strategic Moment

With America’s AI lead established and our exports increasingly central to global tech supply chains, it’s time to seize the moment, not squander it. If the goal is to contain China, rather than ceding market share and fueling anti-American resentment, then we need to reassess what AI means to us and the world.

With America’s AI lead solidified and our exports increasingly anchoring global tech supply chains, now is the moment to act boldly, not cautiously. If the goal is to contain China, not cede ground or fuel anti-American resentment, we must rethink what AI represents, not just as a tool, but as a geopolitical weapon of alignment.

Misguided export controls and blanket tariffs don’t protect us—they shrink U.S. market share, raise production costs, and hand China the time and space to build behind a wall of protectionism. That’s not industrial strategy. That’s industrial retreat.

The solutions are simple. What’s required is political will. If China achieves independent AGI and exports its standards to our current allies, we won’t just lose influence; we’ll lose the framework that made us a superpower. But if we establish the U.S. as the default AI stack, flood friendly markets with our computers, and build a hemispheric manufacturing base around it, we won’t just hold the lead and we’ll lock it in for a generation.

The original Monroe Doctrine laid the groundwork for the American century. It worked because we had aligned allies and clear strategic priorities. In the AI era, we need the same: nearshored production, fortified Indo-Pacific alliances, and a trade regime that builds markets, not walls.

That’s how you make Beijing panic.

This post appeared first on FOX NEWS

On October 7, 2023, like many around the world, I awoke to news of the horrific attacks perpetrated by Hamas against more than 1,200 innocent Israeli, American and other civilians who that day were doing nothing other than going about their lives. The television newscasts were bone-chilling – pictures of mutilated babies; of fathers, mothers, sisters, brothers slain in front of family members; of peace activists murdered in cold blood; and of the taking of 250 hostages, some of whom more than 20 months on are still being held.  

Later that day, the United States called for an emergency meeting of the United Nations Security Council to address this mass terror attack, the largest murder of Jews since the Holocaust. As the American ambassador to the UN responsible for Security Council matters, I represented the United States at the October 8 emergency meeting and demanded the council issue a statement expressly condemning Hamas for the ruthless terrorist attacks.  

Unfortunately, Russia, China and a few other council members refused to endorse such a statement. To put it simply, their refusal to call a spade a spade was abhorrent and incomprehensible. Note: To this day, the Security Council has yet to formally declare Hamas a terrorist group. 

Going into the October 8 emergency Security Council meeting, there had rightfully been much global sympathy for Israel – and certainly an expectation that Israel would have to respond militarily. However, once Israel took measures to defend itself, a right enshrined in Article 51 of the UN Charter, many nations, most notably from the Global South, condemned Israel’s response as disproportionate and used it as a rallying cry to further isolate Israel in the multilateral system and beyond.  

To me and many of my U.S. government colleagues, this was not unexpected. Since joining the UN in 1948, there has been an unfortunate decline in support for Israel at the world body, a decline that began to accelerate following the period of decolonization in the 1960s. Many former colonies wrongly began to view the Israel-Palestinian conflict through the prism of their own struggles against European colonizers, with Israel viewed as a colonizer and the Palestinians as being colonized. 

Israel’s relationship with the UN reached a nadir in 1975, when the UN General Assembly passed a highly politicized resolution equating Zionism with racism, a document that was finally revoked by the UNGA in 1991. Regrettably, efforts by the Palestinians and their supporters to isolate Israel at the UN have not abated and in fact have intensified since October 7, 2023.  

During my two-plus years in New York as ambassador, I engaged in a great deal of difficult diplomacy on the situation in Gaza and cast the sole veto of two UNSC draft resolutions related to the war, both of which lacked a clear condemnation of Hamas, a direct linkage of a ceasefire to the release of hostages, and a reference to Israel’s Article 51 rights. 

Had these texts been adopted by the council, they would not have delivered an immediate ceasefire or a release of the hostages – but certainly would have given Hamas the time and space to rearm. Other council representatives privately agreed but nevertheless felt increasing pressure from their capitals to produce a council document calling for an immediate ceasefire. 

From the beginning of the conflict through the end of the Biden administration, the U.S. regularly proffered creative alternatives on ceasefire language, while most other council members insisted on an explicit reference to an immediate ceasefire. On rare occasions, the council was able to find common ground on Gaza wording when it focused on upholding the principles of humanitarian assistance and protection of civilians. 

But when some members opted to abandon council unity and force votes on resolutions containing unacceptable ceasefire language, the U.S. was left with no choice but to exercise its veto. Before each veto was cast, we recognized the potential collateral damage to America’s international reputation; however, in our view the adoption of an unbalanced council resolution would have made a ceasefire neither practicable nor implementable given the highly charged and extremely complex situation on the ground.  

In the United States’ view, the establishment of a limited and credible negotiation channel was essential for achieving an effective, durable and sustainable end to the war. While the Biden administration didn’t achieve an end to the war on its watch, it did negotiate a three-phase diplomatic framework to pause the fighting and release the hostages, which was ultimately blessed by the council and backed by the Trump administration. 

To this day, one key factor hampering council unity on Gaza is Moscow and Beijing’s exploitation of the situation there for a clear geopolitical end: deflect international attention away from Russia’s savage war against Ukraine. In response to Russian statements in the Council on Gaza, which habitually condemned the U.S. for allegedly facilitating Israeli actions, I constantly reminded council members that Russia was in no position to criticize any country given the horrific war of aggression it was conducting in Ukraine.  

I also publicly warned Chinese diplomats that should they continue making false accusations about the U.S. concerning Gaza, I would immediately call out their country’s support to Russia’s military industrial base, refuting Beijing’s fictitious claim that it supports neither party to the conflict. Russia and China must end their politicization of Gaza and either contribute constructively to peace efforts or simply get out of the way. 

While I had expected Russia and China to take adversarial positions, I was extremely disappointed that three U.S. partners on the council, Slovenia, Algeria and Guyana, chose to regularly piggyback on Russian and Chinese political shenanigans to push for more urgent council action on the issue. Their aim was to shame the U.S. and compel it to change course from its steadfast support of Israel in the war with Hamas.  

All the while, the three had been keenly aware that Washington was conducting sensitive negotiations behind the scenes with Israel, Qatar and Egypt on steps to facilitate a durable end to the fighting and ease civilian suffering in Gaza. But instead of getting fully behind those steps and working with us in good faith, they preferred to ratchet up public pressure on the U.S. and ignore American concerns about how their actions would be manipulated by Hamas and other malign actors in the region – Iran, Hezbollah and the Houthis – to the detriment of regional peace and security.  

Given persistent council divisions over the war in Gaza, some UN member states continue to lay the diplomatic predicate for a future General Assembly resolution (non-legally binding) calling for sanctions, an arms embargo and other tough international measures against Israel. 

The recent U.S. veto of another council resolution on Gaza will certainly provide fuel for those efforts. As I write, the Palestinians and their allies continue to ponder additional pathways to go after Israel throughout the UN system. There is even discussion in some UN circles about suspending Israel’s voting rights in the General Assembly, an act that would deeply anger Washington and trigger severe political consequences for the UN.  

Since this tragic conflict began, I have been mystified as to why many UN officials believe that all the U.S. has to do is instruct Israel to end its pursuit of Hamas and then somehow a magical end to the fighting would materialize.  

On their part, I sense a genuine reluctance to treat Israel as a legitimate state with its own national security concerns. While the United States does indeed have influence with Israel, it is naïve at best for these colleagues to think America can simply dictate to Jerusalem what it should and shouldn’t do in response to what it perceives as existential threats.  

Russia and China must end their politicization of Gaza and either contribute constructively to peace efforts or simply get out of the way. 

Misguided pressure on the U.S., relentless efforts to isolate Israel, Russian and Chinese diversionary tactics, blatant antisemitism, and a reluctance by some states to compromise continue to stymie the Security Council’s ability to speak with one voice on ending the Gaza war. Until these unfortunate practices cease, the council will remain irrelevant to a resolution to Gaza and the broader Israel-Palestinian conflict. 

While no one can ignore the terrible tragedy that is now Gaza, it remains a fact that those UN member states that have influence with Hamas have made a strategic decision not to use it. The hesitancy of many countries over the years to publicly condemn Hamas as a terrorist group has only given it the oxygen it needs to carry on, no matter how much death and suffering Palestinians in Gaza continue to experience.   

To end this war, Hamas must disarm and disband. There will not be peace in Gaza until it does. Gazans deserve an opportunity to live in peace and to seek a prosperous future. Hamas’ continued rule will bring them neither. 

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US stocks rose Monday, rebounding from last week’s sharp sell-off as investors grew hopeful that tensions between Israel and Iran might not spiral into a wider conflict.

The Dow Jones Industrial Average climbed 248 points, or 0.6%, while the S&P 500 added 0.7%. The Nasdaq Composite led gains, advancing nearly 1%.

The market bounce came after a volatile weekend marked by continued hostilities between Israel and Iran. However, the prospect of a limited escalation appeared to calm investor nerves.

West Texas Intermediate (WTI) crude futures declined more than 1% to $71.87 a barrel, reversing earlier overnight gains that saw prices rise above $77.

The pullback in oil helped ease pressure on risk assets, contributing to Monday’s recovery in equities.

Major technology stocks outperformed as falling oil prices prompted a renewed appetite for risk.

Tesla rose more than 1%, while Meta Platforms gained over 2%. Palantir Technologies, often seen as a beneficiary of heightened geopolitical tensions, jumped more than 5%.

Gold, often viewed as a safe haven during times of geopolitical stress, had rallied last week but saw muted movement as risk appetite returned to markets.

Iran-Israel conflict can be contained

Hostilities between Israel and Iran entered a fourth day, with both sides reportedly targeting each other’s energy infrastructure.

Iran has raised the possibility of closing the Strait of Hormuz, a critical chokepoint for global oil shipments, while Israel on Monday claimed to have achieved “aerial superiority” over Iran.

“The market is taking comfort from the prospect that the conflict could stay in the limited war mode,” Krishna Guha, vice chairman at Evercore ISI, wrote in a note.

He added that while the conflict could persist for several weeks, there remains a risk of broader escalation that could impact global energy markets and draw in the United States.

Fed decision later this week

Attention now turns to the Federal Reserve’s interest rate decision due Wednesday.

According to CME Group’s FedWatch tool, markets are pricing in a near certainty that the Fed will hold rates steady.

While President Donald Trump has continued to pressure Fed Chair Jerome Powell to cut rates, rising geopolitical tensions and the risk of energy-driven inflation have further lowered expectations of near-term policy easing.

President Trump has called for an aggressive 100 basis point rate cut, warning that the White House may “have to force something” if the Fed fails to act, according to a report by the Financial Times.

Beyond the rate decision itself, traders will be closely parsing Fed Chair Jerome Powell’s commentary for signals on future policy direction and its potential impact on risk assets.

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President Donald Trump issued a full-throated endorsement of Rep. Abe Hamadeh, R-Ariz., backing the lawmaker for re-election less than half a year into the freshman House member’s first term in office.

‘Abe Hamadeh has my Complete and Total Endorsement for Re-Election – HE WILL NEVER LET YOU DOWN!’ the president declared in a Truth Social post in which he described the congressman as ‘an America First Patriot.’

Trump endorsed Hamadeh in December 2023, ahead of the 2024 GOP U.S. House primary in Arizona’s 8th Congressional District.

But then later he issued an unusual dual endorsement of both Hamadeh and another GOP primary candidate, Blake Masters, just ahead of the 2024 contest that Hamadeh ultimately won.

Back in February Hamadeh introduced a resolution to limit the types of flags that may be displayed in House facilities, though the text of the proposal stipulates that it would not ‘apply to the individual personal office space of a Member of the House of Representatives.’

The resolution would allow for displaying the American flag and various other kinds of flags, some of which would include ‘The State flag of the represented district of a Member of the House of Representatives, displayed adjacent to the office of such Member’ and ‘The flags of visiting foreign dignitaries during an official visit.’

‘Congress is supposed to embody the AMERICAN people. That’s why I’ve introduced a resolution to ban foreign and ideological flags in the Halls of Congress. It’s pathetic that I even have to introduce this resolution,’ Hamadeh declared in a tweet this month.

Six other House Republicans are listed as cosponsors on congress.gov, including three original cosponsors and three other lawmakers listed as backing the measure this month.

‘You have inspired me and so many other young men and women to fearlessly serve our country in our nation’s Armed Services and the halls of Congress,’ Hamadeh wrote in a June 14 letter to Trump marking the president’s 79th birthday and the Army’s 250th.

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The question of a ‘day after’ plan in the Gaza Strip has plagued negotiations between Israel, the U.S., Arab nations and Hamas for months and has ultimately led to the terrorist network’s refusal to release the 55 hostages still held there. 

However, foreign policy leaders and security experts based in Washington may have the key that could provide a solution to help rebuild the war-torn Gaza Strip where others cannot: private security contractors (PSC).

PSCs, which have heavy experience in the Middle East and decades of lessons learned to draw from, could be used as non-state actors to provide stability and a path forward for the Palestinians, but they would have to start with humanitarian aid, John Hannah, former national security advisor to Dick Cheney and current Randi & Charles Wax senior fellow at the Jewish Institute for National Security of America (JINSA), told Fox News Digital.

In a plan hatched out following Hamas’ Oct. 7, 2023 attack on Israel and the subsequent outbreak of war in the Gaza Strip, a group of eight members with JINSA and the Vandenberg Coalition comprised a report that detailed how the handling of humanitarian aid could completely change security in the region. 

The plan, in part, initially looked similar to the mechanism known as the Gaza Humanitarian Foundation (GHF), which is backed by the U.S. and Israel, and which launched last month to distribute aid to Palestinians. 

However, the plan comprised by Hannah and the team took it a step further and argued that these aid actors should also be involved in rebuilding Gaza.

‘We thought humanitarian issues was the best way [forward],’ Hannah said. ‘It was the common denominator that would allow all of the major stakeholders that want to get to a better ‘day after’ – Israel, the United States, the key pragmatic Arab states – they all could agree that we can’t agree on a political vision for Palestine 10 years from now, and the issue of a Palestinian state, but we can all agree on this apple pie and motherhood issue that we don’t want to see starving, suffering Palestinians.’

The Israel Defense Forces had already detailed the need to eliminate Hamas following the deadliest-ever attack on Israel, but the group of eight experts also identified that aid, long used by Hamas to maintain power by using it to incentivize support and recruitment, and to punish opposition, needed to be the key to cementing actual change. 

‘We needed a solution on humanitarian aid,’ Hannah said. ‘And when we looked around the world, who could do this, take over the humanitarian aid? We were left with one option.’

‘We didn’t think it should be the Israel Defense Forces. Israel lacks legitimacy with the Palestinian population, and frankly, it had its hands full doing the military job of defeating Hamas,’ he added.  ‘American forces weren’t going to do it. We didn’t think Arab forces would step up and do this. And the U.N. system as it existed under UNRWA was illegitimate in the eyes of Israel.’

The group not only briefed the Biden and Netanyahu administrations on the proposal, but held numerous discussions with Israeli officials in 2024 on how such a plan could work. 

Retired U.S. Army Lt. Gen. Michael Barbero – who served as deputy chief of staff, Strategic Operations for Multinational Forces-Iraq for 2007-2008 and who was tasked by Gen. David Petraeus to create a system of accountability over PSCs in Iraq following the Blackwater incident in September 2007 known as the Nisour Square massacre – also briefed Israeli officials on how a PSC mechanism could work in the Gaza Strip.

Progress on the proposal appeared to stall by summer last year as then-President Joe Biden and Israeli Prime Minister Benjamin Netanyahu were at increasing loggerheads over humanitarian concerns and mounting civilian Palestinian death tolls. 

However, Hannah questioned whether the seed had been planted with Israel by the time the Trump administration re-entered office, enabling the GHF to come in and start distributing aid. 

The GHF, though it has distributed over 16 million meals since it began operations in late May, saw a chaotic start with starving Palestinians rushing certain sites and reports of violence unfolding. 

Though the reports of the level of chaos have reportedly been exaggerated by Hamas – which ultimately would benefit from the GHF’s failure as experts have explained – the group initially drew some criticism over transparency concerns, though the group has been looking to remedy this with regal updates.

The group, which saw its third leadership in as many weeks earlier this month, told Fox News Digital that despite some frustration among world leaders and aid groups, its goal is to work with major organizations like the United Nations and others to better distribute aid across Gaza where those programs are still flagging.

U.S. Ambassador to Israel Mike Huckabee confirmed last month that the GHF’s distribution centers would be protected by private security contractors.

Though while Washington backs the effort, State Department spokeperson Tammy Bruce has repeatedly made clear that the GHF is ‘an independent organization’ that ‘does not receive U.S. government funding.’ 

However, she has also refused to confirm whether any U.S. officials are working for the program. 

PSCs have a storied history in the Middle East, and not only the U.S. war on terror. They have been used by nations like Saudi Arabia and the UAE, which could lend them a level of acceptance that would not be attainable by another force. 

The proposal issued by Hannah and his colleagues took the use of PSCs one step beyond humanitarian aid and argued they could make a positive impact in the actual reconstruction of the Gaza Strip – an idea that was also presented to the Trump administration this year. 

‘It’s not at all foreign to these Arab parties that you might employ PSCs for certain critical missions,’ Hannah said. ‘Our idea was, let’s scale it up. Let’s unify the effort. Let’s have America and the Arabs lead it. 

‘The Arabs would put in most of the humanitarian aid workers, a lot of the financing, and then they would hire some of these international PSCs with a lot of experience to come in and protect those operations,’ he explained. ‘You’d have the Arabs engaged, which we thought was absolutely critical.’

The plan also included bringing in other international aid organizations that would work with these PSCs to expand developments like housing projects, community development and infrastructure repair to restore electricity and water.

‘And eventually, hopefully, begin to identify new leadership, local leadership in Gaza, who would be prepared to cooperate with the operations of this nonprofit entity,’ Hannah said. ‘Local Gazans of goodwill, who wanted to be rid of Hamas, who this entity could provide some support to, some protection to so they can, could begin rebuilding Gaza civil administration.’

The plan also addressed the perpetual question of how to deter the next generation of Hamas terrroirsts, particularly amid Israeli military operations.

Hannah argued this issue could be addressed by simultaneously training a ‘non-Hamas new Palestinian, local Palestinian security force’ that would not only have the trust of the local population but could also gain the trust of Israel.  

Hannah said he still believes this plan could be a tenable next step to securing the Gaza Strip but urged the Trump administration to take a more direct diplomatic role by leaning on Arab, European and Israeli partners to make it happen.

The White House did not respond to Fox News Digital’s questions about this reporting. 

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