National

Tel Aviv

Axios from Tel Aviv

Renewing its strikes on Gaza on Saturday, the Israeli military said it was prepared for a "week of operations," while the Islamic Jihad group continued to fire rockets from the enclave towards southern and central Israel. 

The big picture: At least 24 Palestinians, including several children and two senior Islamic Jihad officials, have been killed and over 120 wounded since the fighting began on Friday, the Palestinian Ministry of Health in Gaza said without differentiating between civilian and militant casualties.  

The Israeli military said on Saturday it killed Khalid Mansour, the Islamic Jihad military commander in the southern Gaza Strip. On Friday, Israel killed  Tayseer al-Jabari, another senior commander of the armed group.  

At least five Palestinians, including at least three children, were killed late Saturday local time in the northern Gaza city of Jabalia. Palestinian officials said they were killed in an Israeli airstrike, while an Israeli military spokesperson said there was no strike in the area at that time and that according to radar data and other information, including video, the incident was caused by a rocket that was fired by Palestinian militants and fell inside Gaza.

An IDF spokesperson shared a video he said showed the rocket fired by the Palestinian militants failing and hitting Gaza. 

A 5-year-old girl was killed in an Israeli airstrike on Friday. 

IDF spokesperson Ran Kochav said in a briefing with reporters on Saturday morning that Israel is not holding any ceasefire negotiations. He said the IDF is preparing for a week-long operation that could take longer if needed. 

Driving the news: The latest violence began on Friday after Israel launched air raids in Gaza amid rising tensions over the arrest of an Islamic Jihad member in the occupied West Bank earlier this week. 

Israeli officials said they had intelligence that showed that Islamic Jihad was preparing to conduct attacks against Israel and the strikes in Gaza were meant to "remove a concrete threat against Israeli civilians."

Palestinian leaders, meanwhile, condemned the Israeli strikes and blamed Israel for the latest escalation. "The international community must press Israel to stop its aggression," the Palestinian president's office said. 

Islamic Jihad vowed to retaliate, saying the group has "no red lines." 

State of play: The latest round of violence comes after a year of relative calm in Gaza following a devastating 11-day war in May 2021. 

While the economic situation in Gaza has slightly improved since then, minimal rebuilding has taken place, and the enclave — home to more than 2 million Palestinians — continues to face high rates of poverty. 

Israel closed Gaza border crossings earlier this week, exacerbating fuel shortages. Gaza's lone power plant shut down at noon local time on Saturday due to the shortages and said it would significantly reduce electricity. 

What to watch: The violence threatens to escalate into a much bigger conflict if Hamas, which controls Gaza, joins the Islamic Jihad in the fighting. 

So far, Hamas has largely stayed on the sidelines, only issuing statements stressing that Israel "will be held responsible and will pay the price for its new crime. The military wings of the resistance are united and they will respond with force."

Egyptian officials told Axios they are in touch with all different parties to try and calm down the situation but stressed it will take more time to reach a ceasefire.

Riyad Mansour, the Palestinian ambassador to the UN, said the UN Security Council will hold closed consultations on Monday to discuss the escalation in Gaza.

Editor's note: This story has been updated with additional details throughout. 

Israel prepared for "week of operations" in Gaza as fighting intensifies

At least 15 Palestinians, including a 5-year-old girl, have been killed since fighting began on Friday.

Smoke rises above building following an Israeli airstrike on Gaza City on Aug. 6. Photo: Mohammed Abed/AFP via Getty Images

Gaza

Israel

China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

World

Texas Sen. Ted Cruz said he will "wait and see" if former President Trump decides to run before making his own decision about running for president in 2024.

The big picture: GOP presidential hopefuls aren't opening up about their 2024 plans so far given that Trump has yet to announce his plans.

What's happening: Cruz told Fox News at the Conservative Political Action Conference event in Dallas on Friday that Trump will  "decide on his own time frame" whether he will announce a 2024 bid.

"Everyone is going to wait and see what Donald Trump decides and make decisions from there," Cruz told Fox News.

Cruz said he's focused on the 2022 midterm elections, telling Fox News he's "spending practically every waking moment on the campaign trail, focusing on retaking the House and retaking the Senate."

State of play: Recent polling shows Republican voters are willing to look at conservative candidates other than Trump in 2024, Axios reports.

A New York Times/Siena College poll in July found nearly half of Republicans would not vote for Trump in a 2024 presidential primary.

A Detroit News poll from July found Florida Gov. Ron DeSantis statistically tied with Trump in a hypothetical 2024 primary.

What they're saying: Republican lawmakers have been openly looking at new 2024 candidates amid concerns about Trump amid revelations from the Jan. 6 hearings, CNN reports.

DeSantis has deflected questions about 2024. He recently told Fox News he's focused on the 2022 governor's race and what's happening in Florida.

Former Vice President Mike Pence is planning to speak in Iowa later in August, a move widely considered to be a step toward building a presidential bid, Politico reports.

Rep. Liz Cheney (R-Wyo.) told CNN’s Jake Tapper that she hasn't made a decision on a 2024 bid, but she would make the decision "down the road."

Nikki Haley, former ambassador to the United Nations, hinted at a 2024 run at a Christians United for Israel summit in July when criticizing President Biden's hopes to return to the 2015 Iran nuclear deal.

Possible contender Chris Christie told conservative talk-show host Hugh Hewitt he expects the 2024 race to include Cruz, Trump, Pence and maybe six others.

Go deeper ... Poll: Most voters don't want Biden or Trump on the 2024 ballot

Half of Republicans wouldn't vote for Trump in primary, poll finds

Ted Cruz to "wait and see" if Trump runs before making 2024 decision

Recent polling shows Republican voters are willing to look at conservative candidates other than Trump in 2024.

Senator Ted Cruz, a Republican from Texas, speaks during the Conservative Political Action Conference (CPAC) in Dallas, Texas.

Ted Cruz

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

Indiana became the first state in the country since Roe. v. Wade was overturned to approve a near-total abortion ban Friday night.

The big picture: The ban comes after the Supreme Court's decision to overturn Roe v. Wade sent the issue of abortion rights back to the states. Many Republican states have already begun taking action to ban the procedure, but Indiana is the first to pass a bill following the ruling.

Zoom in: Indiana Gov. Eric Holcomb signed the bill into law late Friday night after the Indiana House and Senate passed the bill earlier that day. 

Under the bill, abortions can be performed at hospitals or outpatient centers owned by hospitals. This means abortion clinics will lose licenses in Indiana.

Doctors who perform an illegal abortion, or fail to report them, will also lose their licenses under the new law, the Associated Press reports.

Yes, but: The ban includes some exceptions, including cases of rape, incest, if the fetus is diagnosed to be a lethal anomaly and cases to protect the life of the mother, AP reports. 

Of note: Indiana currently allows abortions up to 20 weeks post-fertilization (or 22 weeks after the mother's last menstrual period), CNN reports.

What they're saying: White House press secretary Karine Jean-Pierre said in a statement Saturday that the Indiana legislature "took a devastating step" to "eliminate women’s constitutionally-protected right to abortion."

She said the vote is "another radical step by Republican legislators to take away women’s reproductive rights and freedom, and put personal health care decisions in the hands of politicians rather than women and their doctors."

Gov. Holcomb said in the statement that he was "most proud of each Hoosier who came forward to courageously share their views in a debate that is unlikely to cease any time soon. For my part as your governor, I will continue to keep an open ear.”

Rep. John Jacob (R), who previously supported a total abortion ban, said the abortion bill wasn't strong enough, the Indy Star reports.

 "The body inside of the mom's body is not her body," he said, per the Washington Post. Let me repeat that: The body inside of the mom's body is not her body. Not her body, not her choice."

Rep. Wendy McNamara (R), who sponsored the bill, said the new legislation “makes Indiana one of the most pro-life states in the nation.”

Rep. Renee Pack (D) told the chamber she had an abortion in 1990 and she had to choose between having an abortion or continuing her military career, the Indy Star reports. 

"Sir, I am not a murderer," she said. "And my sisters are not murderers, either. We are pro-choice. That is what we are."

Sen. Mike Bohacek (R) could not finish his testimony about the bill as he spoke about protecting rape victims with disabilities.

What to watch: Eli Lilly and Co., which is one of Indiana's largest employers, said in reaction to the ban that it will be “forced to plan for more employment growth outside of our home state.”

Jon Mills, a spokesman for engine maker Cummins, which employs 10,000 people in Indiana, said in a statement to the New York Times that the law will "impact our people and impede our ability to attract and retain top talent.”

Mills told NYT that “prior to, and during the legislative process, we shared our concerns about this legislation with legislative leadership.”

Go deeper ... Where abortion has been banned now that Roe v. Wade is overturned

The abortion trigger laws that have gone into effect now that Roe v. Wade is overturned

Editor's note: This story was updated with a statement from the White House press secretary and to add quotes from Jon Mills. 

'Not her body, not her choice': Indiana legislature passes near-total abortion ban

Indiana Gov. Eric Holcomb signed the bill into law late Friday night.

Abortion rights protesters march outside the Indiana State Capitol building.

Abortion rights protesters march outside the Indiana State Capitol building. Photo: Jon Cherry/Getty Images

Indiana

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

Cnn Tonight-1 34 46 Am - 1 35 16 Am-2022-08-06

Trevor Reed, an American citizen recently freed from a Russian prison, told CNN that WNBA star Brittney Griner will experience "serious threats" to her health if she is sent to a labor camp.

Driving the news: "Anyone who is in a forced labor camp in Russia is obviously, you know, facing serious threats to their health because of malnutrition," he told CNN in an interview. "There's little to no medical attention there whatsoever. "

Reed said the disease tuberculosis "runs rampant in Russian prisons" and there are "diseases that they have there in Russia which are largely extinct in the United States now."

Flashback: Reed, a Marine veteran who was freed through a prisoner exchange earlier this year, was held in a Russian prison for 985 days after being accused of assaulting a Russian law enforcement official, USA Today reports.

Reed was sentenced to nine years in a labor camp and developed health issues during his time there, including multiple cases of COVID-19. He previously described conditions at labor camps as "medieval," per USA Today.

The big picture: Griner was found guilty on drug charges by a Russian court last week and sentenced to nine years in prison, Axios' Ivana Saric reports.

The sentence comes almost six months after she was arrested at a Russian airport when authorities said they found a vape cartridge with hash oil in her luggage.

What's next: Griner may appeal the decision, which means she'll stay at a detention facility until it is completed, Reed told CNN. Otherwise, she will likely be sent to a labor camp.

But Russia may leave her in Moscow if a prisoner exchange is on the table, he added.

Reed said Griner's case "sentence is clearly political. There's no denying that."

Trevor Reed: Brittney Griner to face  "serious" health threats in Russian prison

Griner was found guilty on drug charges by a Russian court last week.

Russia

Good afternoon, and welcome to our deep dive on the political power of conservative Latino voters and what it could mean for the 2022 elections and beyond.

Axios AM Deep Dive: Great Hispanic shift

A look at the political power of conservative Latino voters.

Photo illustration of a voting booth with people holding signs that read "vota" 

Photo illustration: Sarah Grillo/Axios. Photos: Joe Klamar/AFP, Daniel Acker/Bloomberg via Getty Images via Getty Images

Deep Dive - Great Hispanic Shift

Democrats’ plans for lowering prescription drug prices took a hit Saturday as they prepared to move their massive reconciliation bill through the chamber.

Driving the news: The Senate parliamentarian said provisions had to be struck from the plan that would have forced pharmaceutical companies to give rebates if prices for their products sold to private insurers exceeded inflation, the Associated Press reports.

The provisions were included in the Inflation Reduction Act of 2022, the wide-ranging package with portions covering health care costs, energy and climate change and the national deficit, per AP. 

Why it matters: Striking the language could lead to patients with private insurance paying higher cost for prescription medications by disincentivizing drugmakers from keeping prices at bay, per AP.

However, the companies would still have to pay penalties if their prices for drugs that Medicare buys are too high.

The changes will eliminate some of the $288 billion in savings that Democrats had estimated the original provisions would lead to over a decade, per AP.

Yes, but: Other key provisions remain, including ones permitting Medicare to negotiate costs for the drugs it buys, capping out-of-pocket expenses for seniors and making free vaccines available, the AP reports.  

What they’re saying: Despite the setback, Democrats said their plan would still benefit people. 

“This is a major victory for the American people,” Senate Majority Leader Chuck Schumer (D-N.Y.) said in a statement Saturday. “While there was one unfortunate ruling in that the inflation rebate is more limited in scope, the overall program remains intact and we are one step closer to finally taking on Big Pharma and lowering Rx drug prices for millions of Americans.”

Mitch McConnell (R-Ky.) released his own statement Saturday, lamenting Democrats' "taxing-and-spending spree" ahead of a planned vote on the $739 billion spending bill.

"Democrats have already robbed American families once through inflation, and now their solution is to rob American families a second time. Democrats want to ram through hundreds of billions of dollars in tax hikes and hundreds of billions of dollars in reckless spending — and for what? For a so-called inflation bill that will not meaningfully reduce inflation at all, and will actually make inflation even worse in the short term," the statement said.

What's next: Minority whip John Thune said the Senate expects to begin the vote-a-rama process this evening in order to pass the bill. 

Editor's note: This story was updated to correct the financial impact of the removal of the bill's original language.

Private insurers won't get drug price break, clause struck from Senate bill

Despite the setback, Senate Democrats said their plan would still benefit people.

Senate Majority Leader Chuck Schumer. Photo: Sarah Silbiger/Bloomberg via Getty Images 

Congress

President Biden has tested negative for COVID-19 after seven straight days of testing positive from a "rebound" case, the White House said Saturday.

The big picture: Biden originally tested positive for COVID-19 on July 21. The president then tested negative after a five-day treatment with the antiviral Paxlovid. He has had a "rebound" COVID case since last Saturday.

What they're saying: "The president continues to feel very well," Biden's doctor, Kevin O'Connor, wrote in a letter Saturday.

Biden will continue strict isolation until he tests negative for a second time from an antigen test, O'Connor said.

The president will be monitored daily due to his rebound positivity, his doctor said.

What we're watching: President Biden and first lady Jill Biden are planning to visit Kentucky on Monday after the devastating floods there. This would be Biden's first trip since he tested positive for COVID. 

Go deeper: Biden tests positive for COVID for seventh day

Biden negative for COVID after weeklong "rebound" case

Biden will continue strict isolation until he tests negative for a second time, his doctor said.

President Joe Biden takes his face mask off.

Biden administration

Taiwan said Saturday that recent military drills from China appear to simulate an attack, the Associated Press reports.

Driving the news: Multiple Chinese warships and aircraft crossed into the Taiwan Strait earlier this week following Speaker of the House Nancy Pelosi's visit to the self-governing island, which angered Beijing.

What's happening: Taiwan’s armed forces issued an alert Saturday and made a number of moves in response to China's recent drills, including dispatching air and naval patrols around the island and activating land-based missile systems, the Ministry of National Defense said, per AP.

At least 20 Chinese aircraft and 14 ships were still conducting exercises near the Taiwan Strait, the ministry said.

The other side: China’s Ministry of Defense said Saturday that it was carrying out military drills as planned and “testing the capabilities” of land strikes and sea assault, per AP.

State of play: After Pelosi visited Taiwan this week, China announced several days of live-fire drills — the largest Beijing has ever held in the Taiwan Strait, Reuters reports.

China began the drills Thursday, firing ballistic missiles into waters just east of Taiwan. It was the first time China has done so since the 1996 Taiwan Strait crisis.

Threat level: Wang Ting-yu, a member of the Taiwanese parliament, told Axios that Taiwan would consider it an invasion if Chinese naval forces made their way into the island's territorial waters.

A Chinese military incursion within 10 miles of the self-governing island's coast would trigger defensive protocols, Axios' Bethany Allen-Ebrahimian reports.

Taiwan does not "want to provoke any conflict," Wang told Axios. But, he said, "whoever dares to invade our country, our home, we have our obligation to defend our home."

Go deeper ... In photos: China's military drills encircle Taiwan

Pelosi lands in Taiwan despite warnings from Beijing

Taiwan says China's military drills may simulate attack

At least 20 Chinese aircraft and 14 ships were conducting military exercises near the Taiwan Strait on Saturday.

A Chinese military vessel sails off Pingtan island, one of mainland China's closest point from Taiwan.

A Chinese military vessel sails off Pingtan island. Photo: Hector Retamal/AFP via Getty Images

Taiwan

China

A North Carolina school district said Friday it plans to put AR-15 guns in every school in the event of a future mass shooting.

Why it matters: The topic of arming teachers and school staff members has become an ongoing discussion in the United States in the wake of the Uvalde, Texas, school shooting, with some schools now training teachers to carry weapons.

What they're doing: The Madison County school system in North Carolina plans to put AR-15 rifles in special safes in every school throughout the county, the Asheville Citizen-Times reports.

Sheriff Buddy Harwood said the rifles will allow schools and police officers to quickly defend themselves against school shootings. 

"I do not want to have to run back out to the car to grab an AR, because that’s time lost. Hopefully, we’ll never need it, but I want my guys to be as prepared as prepared can be," he told the Asheville Citizen-Times.

Zoom out: School districts across multiple states are discussing whether or not teachers should be wielding guns to stop future school threats in the wake of the Uvalde school shooting, in which 19 children and two teachers were killed.

At least 29 states currently allow people other than police or security officers to carry guns on school grounds, per the National Conference of State Legislatures.

In Ohio, a new law gives teachers the right to carry firearms after less than 24 hours of training, stoking critics' concern.

The curriculum for training is still being drafted, Gov. Mike DeWine said earlier this month, per the Ohio Capital Journal.

Individual districts can determine policies for training and whether to arm their staff, too, the Marion Star reports.

In Florida, there are more than 1,300 school staff members working as armed guardians across 45 school districts, the New York Times reports.

Texas has at least 402 school districts enrolled in a program that allows people, including teachers and staff, to be armed, per the Times.

Pennsylvania has been discussing the topic recently, too. State Sen. Doug Mastriano introduced a new bill that would allow school employees with a license to carry a firearm to carry the weapon at work.

North Carolina school district plans to put AR-15s in every school

Arming teachers has become an ongoing discussion in the United States in the wake of the Uvalde school shooting.

On display at a gun shop in Wendell, N.C., an AR-15 assault rifle.

An AR-15 rifle on display in North Carolina. Photo: Chuck Liddy/Raleigh News & Observer/Tribune News Service via Getty Images

Guns

Recession fears and price pressures haven't tamed Americans' urge to splurge.

Driving the news: Credit-card balances are defying the gravitational pull of stubborn inflation and slower growth. They account for about $890 billion of Americans' staggering $16 trillion in household debt.

What's happening: Spending on experiences, like travel and entertainment, has supplanted physical goods like clothing and home items as the purchases of choice for consumers. 

They’re compensating for soaring prices by discount shopping — and using copious amounts of plastic to offset surging costs for food and gas. 

A Bloomberg report highlighted a worrying rise in delinquent accounts among lower-income and subprime borrowers. It raises questions about whether it could lead to a spiral of unpaid debts if the economy worsens.

“If your costs begin to exceed your income. What do you do? You look for a relief valve through borrowed money,” investor Peter Tarr said in a Twitter thread this week. 

Credit is “a smaller option for liquidity, there ‘just in case’ or to ease some costs. Then its loans / refinancing. Home sales etc,” Tarr noted.

Zoom out: For spendthrift consumers, a saving grace has been rising wages that, while failing to keep pace with surging inflation, are still rising at the fastest pace in decades. 

They’re also bolstered by an unusually strong jobs market that has kept the unemployment rate below 4%, and given job seekers a lot of leverage. 

What we're watching: Credit card issuers are leaning into Americans’ hunger for debt, primarily by offering travel-related bonuses and cash back on purchases, according to data from Wells Fargo.

The survey found that 45% of Americans with rewards credit cards “rely on their credit card rewards to help offset some of the cost of everyday purchases.”

Mastercard and Visa both of which reported booming earnings, even as retailers like Walmart, Target and Best Buy warned that soaring costs were leading to tons of excess merchandise.

What they’re saying: “No one can live on borrowed money forever,” Ron Hetrick, senior economist at Lightcast said this week, connecting the worker shortage to rising credit debt.

“There are 22 million people out of the labor force who are using credit cards to pay for their expenses. In a labor market with 10.7 million job openings, those potential workers can go a long way to addressing the talent shortage we’re seeing across the board,” he added.

Our thought bubble: If the jobs market stays relatively buoyant (July's blockbuster report suggests it will) and wages keep rising (ditto), most consumers will likely find a way to keep the bills paid. 

Still, with weak U.S. data heightening recession chatter, none of the above is a given. And regardless, carrying billions of dollars worth of revolving debt as growth sinks and inflation soars simply isn’t sustainable. 

Credit-card debt is soaring

Credit card balances are defying the gravitational pull of inflation.

Illustration of a credit card wearing a sweatband and dripping sweat.

Credit

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

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