Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Trump and Netanyahu announce the peace plan at the White House Tuesday. Photo: Sarah Silbiger/Getty Images

President Trump is nowhere near a deal on Middle East peace, but his long-awaited plan has immediate and dramatic implications for the reality on the ground.

Driving the news: The White House gave Israeli Prime Minister Benjamin Netanyahu a green light to immediately annex about 30% of the West Bank, a step every previous U.S. administration vehemently opposed. Netanyahu plans to act on that opportunity as soon as Sunday.

Our thought bubble: If Israel does annex the Jordan Valley, it will entrench Israel’s control and fundamentally change the equation for any future negotiations.

  • Green-lighting annexations is an even more dramatic step from Trump than moving the U.S. embassy to Jerusalem or recognizing Israeli sovereignty over the Golan Heights.
  • It could also ultimately be the least reversible of those steps. Once annexation happens, it’s hard to reverse.

For Netanyahu, this could be the biggest moment in a political career that has been remarkable for its longevity but not for landmark accomplishments.

  • He stood alongside Trump during the announcement — just hours after surrendering immunity from three corruption indictments, and one month before an election that could bring his political career to an end.
  • Annexing the Jordan Valley could keep right-wing voters who’d considered backing Benny Gantz, his primary rival, in his corner. It would certainly be central to his legacy.

For the Palestinians, who have boycotted this process, the full benefits of the plan would come far more slowly even if they were willing to go along with it.

  • The plan envisions a Palestinian state if a number of conditions are met over four years, but rejects a “right of return” for refugees and grants Israel control of nearly all of Jerusalem — not to mention much of the West Bank.
  • That’s a complete non-starter. “They turned down three previous plans that included 100% of the West Bank,” says David Makovsky, who worked on a previous initiative led by then-Secretary of State John Kerry.

What to watch: Arab states like the UAE and Egypt that had previously stood by the Palestinians on this issue have offered cautious support for Trump’s plan. Only Jordan, where most Palestinians reside, has expressed concern.

  • If the annexations go ahead, experts worry Jordan could pull out of a landmark peace treaty with Israel.
  • Makovsky says annexation could potentially rally the rest of the Arab world against the deal, and would certainly overshadow other parts of the deal he considers creative and constructive.
  • There are also concerns among Israeli defense officials that the opposition of the Palestinians could turn into an uprising in the territories.

Go deeper

Felix Salmon, author of Capital
18 mins ago - Economy & Business

The places regulation does not reach

Illustration: Aïda Amer/Axios

Financial regulation is not exactly simple anywhere in the world. But one country stands out for the sheer amount of complexity and confusion in its regulatory regime — the U.S.

Why it matters: Important companies fall through the cracks, largely unregulated, while others contend with a vast array of regulatory bodies, none of which are remotely predictable.

Trump nominee Christopher Waller confirmed to Fed board

Christopher Waller at a Senate Banking hearing earlier this year. (Photo: Sarah Silbiger/Getty Images)

The Senate voted 48-47 on Thursday to confirm Trump nominee Christopher Waller to the Federal Reserve Board of Governors — filling one of the two vacant slots on the influential economic body.

Why it matters: It's one of the last marks left on the Fed board by Trump, who has nominated five of its six members.

1 hour ago - Economy & Business

Boeing gets huge 737 Max order from Ryanair, boosting hope for quick rebound

Ryanair low cost airline Boeing 737-800 aircraft as seen over the runway. Photo by Nik Oiko/SOPA Images/LightRocket via Getty Images

Dublin-based Ryanair said it would add 75 more planes to an existing order for Boeing's 737 Max airplanes, a giant vote of confidence as Boeing seeks to revive sales of its best-selling plane after a 20-month safety ban following two fatal crashes.

The big picture: Ryanair's big order, on the heels of breakthrough vaccine news, is also a promising sign that the devastated airline industry might recover from the global pandemic sooner than expected.