Axios AM

November 03, 2023
Happy Friday! Smart Brevityโข count: 1,690 words ... 6ยฝ mins. Edited by Dave Lawler and Bryan McBournie.
1 big thing: Bibi's blame game
Photo illustration: Shoshana Gordon/Axios. Photo: Noam Moskowitz/picture alliance via Getty Images
The unwillingness of Israeli Prime Minister Benjamin Netanyahu to take any responsibility for Israel's massive security failures in the Oct. 7 Hamas terrorist attack is fueling calls for him to resign after the war, Axios' Barak Ravid reports.
- Why it matters: Netanyahu is the only senior Israeli official who hasn't admitted any fault โ a strategy that's sparking a fierce public backlash, and sending the prime minister's already tenuous support into free fall.
In the weeks after the Hamas attack, Israeli Defense Forces chief of staff Lt. Gen. Herzi Halevi, military intelligence chief Aharon Haliva and other senior IDF commanders publicly acknowledged the security failures and took responsibility.
- Ronen Bar, director of the Shin Bet intelligence agency, did the same. Defense Minister Yoav Gallant also took responsibility, as did his predecessor, Benny Gantz, and former Prime Minister Naftali Bennett, who served for just one year.
Netanyahu has said several times since Oct. 7 that there'll be an investigation after the war. He stressed that all of Israel's top leaders, including him, will have to answer tough questions.
- But at a news conference last week, Netanyahu was asked three times by reporters whether he shared responsibility for the failures of Israeli intelligence and defense agencies to prevent or quickly stop the attack. He dodged the questions, refusing to take responsibility.
- Netanyahu said he's responsible for one thing now: winning the war.
State of play: Netanyahu's political situation appears dire. In recent polls, 70% to 80% of Israelis said they expect him to step down after the war.
- Polls also indicate his Likud party has been significantly weakened.
๐ผ๏ธ The big picture: The Hamas attack followed 10 months of political crisis in Israel over Netanyahu's judicial overhaul plan, which tore apart Israeli society and weakened its economy and military.
- Netanyahu was warned several times by Gallant and by the heads of the nation's intelligence services that Israel's enemies saw the internal crisis as an opportunity to attack Israel.
- Netanyahu saw these warnings as politically motivated.
When Netanyahu was asked about the warnings during last week's news conference, he rejected the premise and declined to answer.
- Several hours later, at 1 a.m. local time, he said on social media that he didn't receive any early warning of the Oct. 7 attack, and blamed the heads of the security services for the failures.
๐ฆ "All the security chiefs, including the heads of military intelligence and Shin Bet, estimated that Hamas is deterred and wants to reach understandings. This was told several times to me by all the intelligence community up until the war broke out," Netanyahu posted on X.
- After intense pressure โ including from within his own government โ Netanyahu deleted the post later that morning, apologized for it, and said he backed the heads of the security services.
Continues in next item.
2. ๐ฎ๐ฑ Part 2: Bibi behind the scenes

According to several Israeli press reports, the social media post was a result of pressure from Netanyahu's wife, Sara, and his son, Yair, who resides in Miami and hasn't returned to Israel since the war broke out, Axios' Barak Ravid writes.
- Israeli news outlet Walla said Sara Netanyahu ordered the prime minister's aides to scan the transcripts of past Security Cabinet meetings and prepare a list of quotes from the heads of the security services who said Hamas wasn't interested in a war.
- The prime minister's office denied any involvement by Sara and Yair Netanyahu in Netanyahu's decisions or actions.
Flashback: Netanyahu, 74, is the longest-serving prime minister in Israel's history, serving six terms that total more than 16 years. For years, he took pride in his security credentials and said he wanted history to remember him as a protector of Israel.
- Several months after a war in Gaza ended in 2009, Netanyahu returned to power for his second term, promising to topple Hamas' rule in the enclave.
- But he quickly abandoned that promise and, instead, led a policy of trying to contain Hamas through deterrence and temporary ceasefire understandings between rounds of fighting.
๐ฎ What to watch: Netanyahu's rivals and allies expect him to announce a commission to investigate the security failures immediately after the war ends.
- An inquiry could buy time for Netanyahu to mobilize his allies for a long and messy blame game โ which could allow him to hold onto power.
3. ๐ถ๏ธ Rising hubs: Bezos to Miami
Via Instagram
Jeff Bezos announced last night to his 4.1 million Instagram followers that he's moving to Miami from Seattle, his home for 29 years.
- "I want to be close to my parents, and Lauren and I love Miami," the Amazon founder and executive chair writes. "Also, Blue Origin's operations are increasingly shifting to Cape Canaveral."
- Bezos recently paid $79 million for a seven-bedroom mansion in the "Billionaire Bunker" of Indian Creek in the Miami area, shortly after buying a neighboring mansion for $68 million. (Bloomberg)
Why it matters: Miami is one of America's hottest new influence frontiers.
- These are the rising tech hubs that are spreading money, power and people beyond the traditional bubbles of the Northeast and California in the post-COVID, work-from-anywhere world.
What's happening: Ken Griffin, Illinois' wealthiest resident, last year moved the global headquarters of his hedge fund giant, Citadel, to Miami from Chicago.
- Eric Schmidt, the former Google chairman and CEO, and his wife, Wendy, have been collecting waterfront homes on Miami Beach's Sunset Islands since at least 2020, with new purchases this fall. (The Real Deal)
๐ Bezos' post includes a throwback clip of him giving a tour (in a sweater) of the first "Amazon.com Inc." office, including the fax machine, his desk (with a server on top) and a big orange extension cord โ "just one of the contraptions we have to have because there's not enough power in this room." Watch it here.
4. โ๏ธ SBF swiftly convicted

Sam Bankman-Fried was found guilty last night of all seven charges against him โ including fraud on FTX customers and investors, fraud on Alameda's lenders and conspiracy to commit money laundering.
- Jurors took less than five hours to reach the verdict, Axios Crypto authors Crystal Kim and Brady Dale report from federal court in Manhattan.
Why it matters: SBF has been convicted in one of the "biggest financial frauds in American history," where $8 billion in customer deposits went missing from what was then the world's third-largest crypto exchange.
- The blow-up of FTX and its sister hedge fund Alameda Research โ both now in bankruptcy โ was so messy, it's been compared to Enron.

๐ฅ Reality check: The defense likely suffered from SBF's own testimony.
- Between evasive responses and a condescending tone during cross-examination, there was little to like about the founder and former CEO.
- Claims that he acted in good faith, wasn't aware of billions in missing customer money, or that he thought he was on the right side of the law due to the presence of his lawyers, failed to sway jurors.
What's next: Judge Lewis Kaplan set SBF's sentencing for March 28. A second trial on four additional charges is slated for earlier that month.
- SBF can appeal, but not until sentencing.
Go deeper: Trial's key moments ... Get Axios Crypto ... Share this story.
5. ๐ Scoop: Obama to call for "inclusive capitalism" at 15th reunion weekend

Former President Obama today will issue a call to action on "inclusive capitalism" as he kicks off a reunion weekend in Chicago that will reunite 2,500+ Obama alumni on the 15th anniversary of his historic election as America's first Black president.
- Why it matters: Saturday will mark 15 years since Obama's 2008 triumph. This is the first formal reunion of administration officials and campaign workers, and comes ahead of the estimated late 2025 opening of the Obama Presidential Center in Chicago's Jackson Park.
At the Obama Foundation's second-annual Democracy Forum, the former president will call for "a new economic framework that addresses inequality and prepares citizens for the coming changes in how we live and work that reaches a higher purpose beyond material consumption," according to a preview for Axios.

Behind the scenes: Reunion attendees will range from Cabinet secretaries to Iowa field organizers, insiders tell me.
- There'll be some big programs for everyone โ plus a couple dozen smaller receptions and parties for every imaginable team, including state campaign staffs (Florida, Ohio, Wisconsin, Colorado, etc.), White House departments (East Wing, Office of Digital Strategy, communications) and Cabinet agencies and departments.
Among the alumni with prominent speaking roles: Kal Penn, Jen Psaki, Jon Favreau, Tommy Vietor, Dan Pfeiffer and Alyssa Mastromonaco.
- Jon Batiste will host a musical performance tomorrow night.
Go deeper: Campus plans for Obama Presidential Center ... Construction Blog.
6. ๐ Charted: Clorox wipeout


Clorox revenue plummeted to a nearly eight-year low in the last quarter after a devastating cyberattack, Axios' Nathan Bomey writes.
- Why it matters: The horrific drop โ sales fell 31% from the previous quarter โ illustrates the steep consequences of cybersecurity breakdowns.
What's happening: Revenue plunged as the company was hit with product shortages, including disinfecting wipes and bleach, stemming from its inability to process orders efficiently.
๐ Between the lines: The earlier movements on this chart capture consumers' pandemic behavior in one slide.
- Get Axios Closer, our end-of-day business update.
7. ๐ณ๏ธ Biden campaign sees "very close" election

A Biden campaign memo says President Biden can reassemble the coalition that won the White House in 2020 โ but warns of a "very close general election," Axios' Hans Nichols reports.
- Election Day is one year from Sunday.
Biden campaign manager Julie Chavez Rodriguez said the strategy is to offer a choice between the president's steady hand and "whoever emerges from the extreme MAGA Republicans' primary field."
๐ฅ Reality check: The campaign wants to avoid a straight referendum on Biden policies, some of which get poor marks from voters.
8. โ 1 for the road: Starbucks pours it on

Starbucks plans to open 17,000 stores by 2030, bringing its global store count to 55,000 by 2030 as part of a "Triple Shot Reinvention Strategy," Axios' Kelly Tyko reports.
- The U.S. store count is expected to reach 16,300 (4% growth in FY '24), with a long-term goal of 20,000 locations.
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