DOCSLIB.ORG

Global Market Update

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Global Market Update GLOBAL MARKET UPDATE 22 TO 28 MAY: PAPER SHUFFLING THIS WEEK’S GLOBAL EQUITY MARKET MOVERS Top 3: New Zealand 2.78%, Luxembourg 2.38%, Finland 1.67% DEVELOPED Bottom 3: Italy -1.78%, Belgium -1.35%, Norway -0.99% Top 3: Turkey 3.83%, Brazil 2.95%, China "H" 2.90% EMERGING Bottom 3: Dubai -1.51%, Abu Dhabi -1.41%, Indonesia -1.19% Top 3: Kenya 4.74%, Pakistan 3.74%, Nigeria 3.38% FRONTIER Bottom 3: Tanzania -7.44%, Bermuda -2.54%, Jamaica -2.09% After a 9-month odd bull market, some divergence and loss of momentum has prevailed over recent weeks. Over the next month, a number of policy announcements could shape market direction. In particular: • FED and ECB monetary policy decisions at which the US will likely raise rates and Europe may signal a more hawkish stance on policy. • UK general elections and the start of Brexit negotiations. • Italian electoral reform (setting up an Autumn election) and the conclusion of Greek negotiations with the EU to unlock the latest tranche of funding. under quantitative easing gained greater prominence in UNITED STATES discussions. Specifically, “nearly all policymakers expressed S&P 2,416 +1.43%, 10yr Treasury 2.23% +1.19bps, HY Credit a favourable view” of a plan whereby the bank would Index 327 -3bps, Vix 9.81 -2.23Vol announce limits on the dollar amounts of securities that would not be reinvested each month. These caps would The minutes to the FED’s May meeting contained two then increase every 3 months. “Most participants…judged points of interest: that a change in the committee’s reinvestment policy would likely be appropriate later this year” and that “the 1. As broadly expected, the committee continue to approach would also likely be fairly straightforward to look through recent weak data as “primarily reflecting communicate.” transitory factors”. As such, “most participants anticipated that gradual increases in the federal funds rate would Since 2008, the FED’s balance sheet has expanded from continue” prompting the market probability of a 15th June under USD 1trn to over USD 4.5trn (an increase of over 30% rate hike to rise to 84% (from 78% a week ago and 67% a of US GDP). Allowing some of this portfolio to “run-off” as month ago). bonds mature, is the next step in policy “normalisation”. However, the outlook is still very much for a “new normal” 2. The reinvestment policy for interest and principal in which interest rates have limited scope for increases. repayments from the FED’s stock of assets purchased Chris Wehbé Aaron Armstrong Florian Gueritte CEO Investment Analyst (Asia) Investment Analyst (Africa & LatAm) [email protected] [email protected] [email protected] Twitter: @cswehbe 1 This is well demonstrated by US bond yields. Despite an this year appears to have increased. In an interview with approximate 1% gain in 2-Year Treasury yields over the last 3 “Il Messaggero”, former PM Renzi said that he favours years (reflecting realised hikes), the 10-year yield is lower by a German style “proportional representation” electoral 0.4%, sitting at only 2.23%. This is to say the market expects system with a cut-off of 5% to enter parliament. Moreover, a very shallow hiking cycle and therefore little potential for he commented that Italy could go to the polls at the same strong growth and inflation. time as Germany this autumn. This constitutes a shift from Renzi and comes after Silvio Berlusconi, the leader of the From a market perspective, the S&P has now returned 7 centre-right Forza Italia party, and Beppe Grillo, the head consecutive daily gains since the Trump/Russia “sell-off of of the Five Star Movement, also backed the German model the year”. This is despite weakness in the energy sector, in recent weeks. Opinion polls are very tight, with no clear which continues to lag the rest of the market (by over winner between Renzi and Grillo. 20% YTD) on lower oil prices. In terms of economic data, the second estimate of Q1 GDP growth was revised up to Although there are tentative signs of life in the Italian 1.2%, however personal consumption remained weak and economy over the short term (we were tactically bullish more recent releases disappointed. In particular, new and at the end of last year on market positioning and could existing home sales contained broad based declines and become so again given certain electoral outcomes), in the Michigan consumer sentiment survey was revised lower. the context of the Euro, the country remains terminally The employment report is released later this week. economically ill. Like in Japan, there is no way to generate proper and sustained real economic growth. Indeed, the country has not been helping itself; there has been no reform and the banking system is still to be properly EUROPE recapitalised. Eurostoxx 3,553 -0.35%, German Bund 0.30% -3.70bps, Xover Credit Index 254 -4bps, EURUSD 1.113 +0.24% In the UK, Q1 GDP was revised down to 0.2% QOQ (with consumption growth at a 2-year low) whilst pre- Sentiment surveys across the Eurozone continue to go election polls signalled a tightening in the lead of PM from strength to strength; the PMIs for May held at 6-year Theresa May’s Conservative party over the opposition highs whilst the German IFO “Business Climate” recorded Labour party (to as low as 5% from as high as 19%). The an all-time high. As in the US, this strong “soft data” is out- Conservative’s poor showing in opinion polls comes after performing “hard” activity data. Nonetheless, the European a campaign which has been seen by most as complacent. economy continues to display good momentum. This pushed both GBP and Gilt yields lower. The UK 10-year currently sits at a 1% yield versus CPI inflation at 2.7%. The The next ECB meeting on the 8th June has the potential general election falls on the 8th June, with formal Brexit to shape market direction over the summer months. On negotiations commencing on the 19th. the one hand, the governing council have a (German influenced) history of reacting quickly to any pick-up in The NBH in Hungary left interest rates unchanged at 0.9% activity. This is to say, with the French election in the past, as it continues its reliance on unconventional measures. there could be a change in rhetoric aimed at preparing the market for a wind-down of quantitative easing and eventual rate hikes. On the other hand, there is no real threat of inflation breaching the 2% target (in fact it is more likely ASIA PACIFIC headline inflation moderates over the coming months). HSCEI 1,061 +2.90%, Nikkei 1,967.00 + 0.57%, 10yr JGB Indeed, yesterday Mario Draghi commented “At its June 0.04% +0bps, USDJPY 110.850 +0.06% monetary policy meeting the Governing Council will receive an update of the staff projections and a more complete On Wednesday, former Fed Chairman Ben Bernanke information set on which it will be able to formulate its spoke at a BOJ seminar. He suggested current stimulus judgement on the distribution of risks around the most efforts may be losing their effectiveness and that the BOJ likely outlook for growth and inflation…overall, we remain may need to raise the inflation target above 2% whilst firmly convinced that an extraordinary amount of monetary coordinating with the Government on a fiscal stimulus plan. policy support, including through our forward guidance, The suggestion is all well and good, but we see no way is still necessary for the present level of underutilised the country can reduce its Debt-to-GDP in a “real” sense. resources to be re-absorbed and for inflation to return to That is to say it can only inflate its debt away rather than and durably stabilize around levels close to 2 percent within stimulate real growth. a meaningful medium-term horizon.” Moody’s downgraded China’s sovereign credit rating In a meeting with senior EU officials,Donald Trump spoke from Aa3 (negative outlook) to A1 (stable outlook). with his usual eloquence stating “The Germans are bad, The rationale was based on an expectation for increasing really bad…look at the millions of cars they sell in the US. leverage across the economy due to slower progress on It’s terrible. We’ll put a stop to that.” Also because of the economic reform. expanding auto emissions scandal, this saw the auto sector under-perform broader equities. Equity markets paid little attention to the news, with H shares finishing the week +2.9% in USD and A shares +0.7%. Greek government bonds gave back some of their recent The RMB also strengthened 43bps against the dollar gains after the Eurogroup meeting did not manage to close the second review. Nonetheless, the overall impression was We agree with Moody’s underlying thesis that China has positive, with a conclusion apparently in sight. In other been back-sliding on its targets to reduce leverage. This political news, the probability of a snap Italian election Chris Wehbé Aaron Armstrong Florian Gueritte CEO Investment Analyst (Asia) Investment Analyst (Africa & LatAm) [email protected] [email protected] [email protected] Twitter: @cswehbe 2 analysis is far from ground breaking, hence the lack of Bank of Korea left interest rates on hold for the 11th reaction from the market. consecutive meeting at 1.25%, with a unanimous decision and in line with expectations. The MPC statement showed Chinese policymakers have clearly made a significant a slight increase in optimism, commenting that there is U-turn over the last three years.
Load more

Recommended publications
  • The Arab-Israel War of 1967 1967 Was the Year of the Six-Day War
    The Arab-Israel War of 1967 1967 was the year of the six-day war. Here we bring together its impact on Israel and on the Jewish communities in the Arab countries; United States Middle East policy and United Nations deliberations; effects on the East European Communist bloc, its citizens, and its Jewish communities, and American opinion. For discus- sions of reactions in other parts of the world, see the reviews of individual countries. THE EDITORS Middle East Israel A ALL aspects of Israel's life in 1967 were dominated by the explosion of hostilities on June 5. Two decades of Arab-Israel tension culminated in a massive combined Arab military threat, which was answered by a swift mobilization of Israel's citizen army and, after a period of waiting for international action, by a powerful offensive against the Egyptian, Jor- danian and Syrian forces, leading to the greatest victory in Jewish military annals. During the weeks of danger preceding the six-day war, Jewry throughout the world rallied to Israel's aid: immediate financial support was forthcoming on an unprecedented scale, and thousands of young volunteers offered per- sonal participation in Israel's defense, though they arrived too late to affect the issue (see reviews of individual countries). A new upsurge of national confidence swept away the morale crisis that had accompanied the economic slowdown in 1966. The worldwide Jewish reaction to Israel's danger, and the problems associated with the extension of its military rule over a million more Arabs, led to a reappraisal of atti- tudes towards diaspora Jewry.
    [Show full text]
  • “In the Service of Peace” Remembering Col Justin
    “In the service of peace” Remembering Col Justin MacCarthy DSM (1914 – 1960) Colonel Richard Heaslip (Retd) In July 1960 Belgium granted independence to the Congo its former colony and the country erupted in widespread violence. International concern resulted in the involvement of the United Nations, which established a peacekeeping force designated UNOC (United Nations Operation in the Congo) to maintain public order. The Irish Government responded very promptly and positively to a request from the United Nations Secretary General Dag Hammarskjold to participate in the new peacekeeping mission and agreed to provide an infantry battalion for the Congo. The initial request was followed very quickly by a further request for a second battalion which was also acceded to by Government. The Congo mission would become the country’s third UN military mission and historically the first occasion when armed Defence Forces units were deployed on overseas duty. Preceding UNOC, Ireland’s contribution to UN operations was in the form of unarmed military observers first with UNOGIL (United Nations Observation Group in Lebanon) in June 1958 and subsequently with UNTSO (United Nations Truce Supervision Organisation) in December 1958. Col Justin MacCarthy was about to become the Defence Forces’ link to all three missions. Lt Col MacCarthy (6th Cadet Class), a graduate of the Camberley Command & Staff Course, with previous service in a range of command, staff and instructional appointments, had been selected to lead the Irish contribution to UNOGIL. On arrival in Lebanon his duty station became HQ UNOGIL in Beirut, where within five weeks of his arrival he was promoted to Colonel following a request to the Irish national authorities by Gen Odd Bull (Norway) who led the UNOGIL mission.
    [Show full text]
  • REPORT of the Seculity Councn to the GENERAL ASSEMBLY 16 July 1957 to 15 July 1958
    REPORT OF THE SECUlITY COUNCn TO THE GENERAL ASSEMBLY 16 July 1957 to 15 July 1958 GENERAL A55EMBLY OFFICIAL RECORDS : THIRTEENTH SESSION SUPPLEMENT No. 2 (A/3901) .. ' NEW YORK. 1958 ( 74 P.) UNITED NATIONS REPORT OF THE SECURITY COUNCIL TO THE GENERAL ASSEMBLY 16 July 1957 to 15 July 1958 GENERAL ASSEMILy OFFICIAL RECORDS : THIRTEENTH SESSION SUPPLEMENT No. 2 (A/3901) New York, 1958 ~--_.._-------_...._,................_-_-...__..._....._........_'_..._'"_._"''' .. ~'--~'-''''-----''~.~"-","" .,,",..... .,';~ 1 NOTE Symbols of United Nations documents are composed of capital letters corn­ hined with figures. Mention of such a symbol indicates a reference to a United " :0: ations document. , TABLE OF CONTENT!ii 1NTROIll'CTION vi PART 1 Questions eonsidered hy the Security Counell under its responsiblllty for the maintenance of international pesce and seeurîty Chaptcr 1. THE PALESTIl'Œ QUESTION A. Letter dated -1- September 1957 from the permanent representative of Jordan, addressed to the President of the Securitv Council: Letter dated "5 September 1957 from the acting permanent representative of Israel. addressed to the President of the Security Couucil B. Report of the Acting Chief of Staff of the United Nations Truce Super- vision Organization .. .. .. .. " 2 C. Communications relating to the Mount Seopus incident. 5 D. Developments on the Israel-Syrian Armistice Demarcation Line 6 E. Other communications .................. 7 2. THE INDrA-PAKISTAN QUESTION A. Communications Iron: the Governments of India and Pakistan 8 B. Resumption of Security Council consideration of the India-Pakistan ques- tion . 8 c. Draft resolution submitted by Australia, Colombia, the Philippines, the United Kingdom and the United States .
    [Show full text]
  • E.XTENSIONS of REMARKS ISRAEL TODAY Dechai Gur, Has Also Said There Would Be Ber 113,378
    9206 EXTENSIONS OF REMARKS April 15, 1969 E.XTENSIONS OF REMARKS ISRAEL TODAY dechai Gur, has also said there would be ber 113,378. There are 39,305 registered chil­ fewer acts of terrorism if the standard of dren not on the UNRWA ration list because llving was raised. Israel should invest more of lack of funds. Somehow, they get fed, HON. GEORGE E. BROWN, JR. in industry and vocational tra1n1ng, he said. though, Mr. Geaney told us. When a refu­ At the Gaza UNRWA Headquarters, Mr. gee becomes a wage earner of 1120 llras per OF CALIFORNIA Geaney the Director had gone to trouble­ month, his ration is cut. Were the rolls in­ IN THE HOUSE OF REPRESENTATIVES shoot at the vocational training center where fiated, we asked. That has been greatly ex­ Monday, April 14, 1969 the students were out of classes and "demon­ aggerated, he said. strating in sympathy to the political situa­ There is no vocational training for girls, Mr. BROWN of California. Mr. Speak­ tion," a phrase used by most Palestinians but there are two six-month sewing courses er, I have been calling the attention of we talked to about the strikes. Mr. Filfil, a a year that women can take, and embroidery my colleagues to a series of articles writ­ translator at UNRWA, drove us over to see ls encouraged. UNRWA provides for up to ten by Miss Carol Stevens Kovner, writ­ the center, which was what we had come for. the 9th grade in separate girls and boys ten in Israel and giving a vivid firsthand Mr.
    [Show full text]
  • The Fall of Jerusalem, 1967
    THE FALL OF JERUSALEM, 1967 S. ABDULLAH SCHLEIFER * Monday morning, June 5, 1967. At 0850 an Aide-de-Camp called the Palace in Amman to report to King Hussein Radio Cairo's communique that Israel had attacked Egypt. By 0900 the Egyptian General Abdul-Moneim Riad - who had arrived in Amman with a small group of staff officers to take command of the Jordanian front a few days before the war began - had received a coded message in Amman from UAR Field Marshal Amer. The UAR, the message said, had put out of action 75 per cent of the Israeli planes that had attacked the Egyptian airports and the UAR Army, having met the Israeli land attack in Sinai, was going over to a counter-offensive. "Therefore Marshal Amer orders the opening of a new front by the commander of the Jordanian forces and the launching of offensive operations according to the plan drawn up last night."' In Arab Jerusalem, Ishak Duzdar and Bahjat Abu Gharbiyeh, leaders of the civilian resistance committee formed at the end of May, were at the Governorate demanding arms. Governor Anwar Khattib had already called the army and had been promised they would be delivered that day. The two men returned to the Old City to await the rest of their staff at resistance committee HQs. And at 0910 hours, according to the Churchills' account (based on the Israeli War Diaries) the Israeli commander of the Central Front, General Uzzi Narkiss was on the telephone on the other side of the cease-fire line, talking with Teddy Kollek, Mayor of Israeli Jerusalem.
    [Show full text]
  • Kabul Times (August 12, 1967, Vol. 6, No. 116) Bakhtar News Agency
    University of Nebraska at Omaha DigitalCommons@UNO Kabul Times Digitized Newspaper Archives 8-12-1967 Kabul Times (August 12, 1967, vol. 6, no. 116) Bakhtar News Agency Follow this and additional works at: https://digitalcommons.unomaha.edu/kabultimes Part of the International and Area Studies Commons Recommended Citation Bakhtar News Agency, "Kabul Times (August 12, 1967, vol. 6, no. 116)" (1967). Kabul Times. 1555. https://digitalcommons.unomaha.edu/kabultimes/1555 This Newspaper is brought to you for free and open access by the Digitized Newspaper Archives at DigitalCommons@UNO. It has been accepted for inclusion in Kabul Times by an authorized administrator of DigitalCommons@UNO. For more information, please contact [email protected]. I ~ I l THE ~UL TIMES , ~ \ I \ S~~~P:\!O M~iafu ,;'1,. ;\yq~l~,J~'e~s' I~i~,~~lef ..;_ " l In Yemen War ~M)~~I~~'t~~'"" !lust 13 tor a t\l,.o We,!!)< VISit to ,.. " "''''"Ir ....:.~-; .~ .Jl~.l._~it;j\ 'Arab lea.ders With wliOm ·he WIll ~' CAIRO. Aug' 10, (DPA) .....:suda- ~et~1~~~ ~'I" '. discuss the MiddlE! East crl'sls, it I neSe t:'remler Mohammad Ahm- w • h (~W alithOrttles'" was announced Tuesday 1:,' ed Mahgoub may fly to Riyadh liquor, OS"" He WIll visit Jordan, Saudi Ar: dls~UBS .." ~ later thiS month to- WIth saI:e'v \;eeJlt othen, ofi_ m abla, , UAR, Iraq, f!Udsn, Kuwait, ~\ SaUdi King Falsal OAR propo· I h e»;ltil 'wltla acute pOl- Lebanon, and SyrIa 'I sals for endmg the Yemen war, II OSP rJt tlreli.8Se aac1 . '.AII. All'. ,I' the seml·off,cial Cairo daily AI SOnl~ U e:r illciohol Is " PARIS, Aug 10, (A/,) -Quebec j;' Gombourlya rep<)rted bom Khar~ coI!/l ~"PI ~." ..a state ' Prelnler DaVId Jobnson saId li!0n I toum yesterday - bann"" n 7-"7, day that if the French, Canadl~n~ .•~ ' ~ I '~l-J' I j j J \ The paper sSld that the Suda- TOKYO Aug 10: (DPA) -SIX arc someday desPerate 'they Will nese government was also con- 'cabinet rmllJsters demand their mtegratlon mto the r I' ~, ~mq: ~l\9t"tier t.
    [Show full text]
  • Jerusalem: Legal & (And) Political Dimensions in a Search for Peace
    Case Western Reserve Journal of International Law Volume 12 Issue 1 Article 9 1980 Jerusalem: Legal & (and) Political Dimensions in a Search for Peace Mark I. Gruhin Follow this and additional works at: https://scholarlycommons.law.case.edu/jil Part of the International Law Commons Recommended Citation Mark I. Gruhin, Jerusalem: Legal & (and) Political Dimensions in a Search for Peace, 12 Case W. Res. J. Int'l L. 169 (1980) Available at: https://scholarlycommons.law.case.edu/jil/vol12/iss1/9 This Note is brought to you for free and open access by the Student Journals at Case Western Reserve University School of Law Scholarly Commons. It has been accepted for inclusion in Case Western Reserve Journal of International Law by an authorized administrator of Case Western Reserve University School of Law Scholarly Commons. Volume 12, Number 1, Winter 1980 Jerusalem: Legal & Political Dimensions in a Search for Peace by Mark I. Gruhin* I. INTRODUCTION ANEW ERA of camaraderie has entered the bitter Arab-Israeli conflict as a result of Anwar Sadat's historic visit to Jerusalem and the Camp David Summit. This change in Egyptian attitude" marks a hopeful start in future negotiations between Israel and her neighboring countries. Israel and Egypt have been able to come to terms on most issues concerning the Sinai, but have not been able to reach any agreement concerning the city of Jerusalem. 2 When the Peace Treaty was being signed in Washington, D.C., both Anwar Sadat and Menachem Begin made conflicting remarks in their speeches regarding Jerusalem. Anwar Sadat called for the return of East Jerusalem and Arab sovereignty while Menachem Begin spoke of the reunification in 1967 of the Old City (East Jerusalem) with the New City (West Jerusalem).3 Jerusalem, a small tract of land situated in the Judean Hills, thirty- five miles from the Mediterranean Sea,4 is a city which.
    [Show full text]
  • Twenty-Fifth Year New York
    TWENTY-FIFTH YEAR MEETING: 14 MAY 1970 NEW YORK CONTENTS Page Provisional agenda (S/Agenda/l 540) . , . , . : . , . , . , , . , . , . , 1 Adoption of the agenda . , . , , . +. , . , . , +. , 1 The situation in the Middle East: Letter dated 12 May 1970 from the, Permanent, Representative of ,Lebanon to the United Nations addressed.to the President of the Security Council (S/9794) . I I ‘ , , I . ‘ . , , . * . * . * . * . * . * * * . 1 The situation in the Middle East: Letter dated 12 May 1970 from the .Permanent Representative of Israel to the United Nations addressed to the ,President of the Security Council (S/9795) , ‘ ‘ ‘ ‘ , ‘ , . ‘ , . ‘ . ‘ , . , . * * . , . * . * * * * . * . 1 SIPV. 1540 ‘l ,’ NOTE Symbols of United Nations documents are composed of capital letters com- bined with figures. Mention of such a symbol indicates a reference to a United Nations document. Documents of the Security Council (symbol S/ . ) are normally published in quarterly Supplements of the Official Records of the Security Council. The date of the document indicates the supplement in which it appears or in which information about it is given. The resolutions of the Security Council, numbered in accordance with a system adopted in 1964, are published in yearly volumes of Resolutions and Decisions of the Security Council. The new system, which has been applied retroactively to resolutions adopted before 1 January 196.5, became fully operative on that date. FIFTEEN HUNDRED AND FORTIETH MEETING Held in New York on Thursday, 14 May 1970, at 10.30 a.m. President: Mr, Jacques KOSCIUSKO-MORIZET At the invitation of the President, Mr. E. G/mm (France). (Lebanon) and Mr. Y. Tekoah (Israel), took places at the Security Council table; arzd Mr.
    [Show full text]
  • The Middle East
    GEORGE LEN CZOWSKI / Universiry of California at Berkeley ALSO BY GEORGE LENCZOWSKI The Middle East Iran under the Pahlavis (Editor) Middle East Oil in a Revolutionary Age Oil and State in the Middle East The Politicql Awakening in the Middle East (Editor) in World Affairs Political Elites in the Middle East (Editor) Russia and the West in lran Soviet Advances in the Middle East United Stqtes Interests in the Middle Ecsl (Editor) FOURTH EDITION CORNELL UNIVERSITY PRESS ITHACA AND LONDON t., , rh ,* DSoa-,8 L*4b t q"kb B AND J L. Copyright O 1952, 1956,1962,1980 by Cornell University TO All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be re- produced in any form without permission in writing from the publisher. For information address Cornell University Press, 124 Roberts Place, Ithaca, New York 14850. Published in the United Kingdom by Comell University Press Ltd., 2-4 Brook Street, london WIY 1AA. First edition 1952 Second edition 1956 Third edition 1962 Fourth edition 1980 International Standard Book Number (cloth) 0-8014-1273-0 Intemational Standard Book Number (paper) 0-8014-9872-4 Library of Congress Catalog Card Number 79-17059 Printed in the United States of America Librarians: Library ofCongress cataloging information appears on the last page ofthe book, ,i ".-'T|!'EFFr'- 368 THE MTDDLE EA!T tN wonLD AFrAtt! TEBANON 369 the already surcharged atmosphert prcvailing among their followcrt, with the result- the military sensc) justificd thelr porllion by the necessity of Lcbanon's keeping on ing tension between the latter and thc Christian elements of Lcbanon.
    [Show full text]
  • UN Emergency Force Withdrawn from Sinai and Gaza Strip on Egyptian
    Keesing's Record of World Events (formerly Keesing's Contemporary Archives), Volume 13, June, 1967 Israel, Egyptian, Page 22063 © 1931-2006 Keesing's Worldwide, LLC - All Rights Reserved. The Arab-Israel Crisis.- U.N. Emergency Force withdrawn from Sinai and Gaza Strip on Egyptian Demand. - Egyptian Blockade of Gulf of Aqaba. - Israeli Vessels banned from entering Gulf. - Mobilization in Arab Countries and Israel. - Arab and Soviet Support for Egypt. - U Thant's Mission to Cairo. -International Reactions to Middle East Crisis. The long-standing tension in the Middle East erupted on June 5 in the outbreak of war between Israel and the Arab States, each side accusing the other of responsibility for the commencement of hostilities. As stated in 22062 A and 21817 A, there had been constantly increasing tension on Israel's frontiers since the autumn of 1966 due to the stepping-up of attacks by Arab terrorist organizations, directed in the great majority of eases from Syrian territory. The frequency and intensification of these terrorist attacks, for which the Syrian Government expressed its full support and which the Israeli Government alleged had all been organized by Syria, had led to repeated warnings to Syria by Israeli leaders. As stated in 22062 A, the Israeli Chief of Staff (Major-General Rabin) declared on March 24 that, if these attacks continued, it might become necessary ―to take action against the country from which these infiltrators come.‖ On May 10, according to a report in Le Monde, tire Foreign Minister of Israel (Mr. Eban) had instructed the Israeli ambassadors accredited to the countries represented on the security Council to bring the gravity of the Syro-Israeli frontier situation to the attention of those countries, and to inform them that Israel could not remain inactive in the face of constant aggressions against her territory by Arabs coming from Syria and enjoying the support of the Syrian authorities.
    [Show full text]
  • The Crisis in Lebanon: a Test of Consociational Theory
    THE CRISIS IN LEBANON: A TEST OF CONSOCIATIONAL THEORY BY ROBERT G. CHALOUHI A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY UNIVERSITY OF FLORIDA 1978 Copyright 1978 by Robert G. Chalouhi ACKNOWLEDGMENTS I would like to express my thanks to the members of my committee, especially to my adviser, Dr. Keith Legg, to whom I am deeply indebted for his invaluable assistance and guidance. This work is dedicated to my parents, brother, sister and families for continued encouragement and support and great confidence in me; to my parents-in-law for their kindness and concern; and especially to my wife Janie for her patient and skillful typing of this manuscript and for her much- needed energy and enthusiasm. TABLE OF CONTENTS Page ACKNOWLEDGMENTS iii LIST OF TABLES vii ABSTRACT ix CHAPTER I: INTRODUCTION 1 Applicability of the Model 5 Problems of System Change 8 Assumption of Subcultural Isolation and Uniformity 11 The Consociational Model Applied to Lebanon 12 Notes 22 CHAPTER II THE BEGINNINGS OF CONSOCIATIONALISM: LEBANON IN HISTORICAL PERSPECTIVE. 25 The Phoenicians 27 The Birth of Islam 29 The Crusaders 31 The Ottoman Empire 33 Bashir II and the Role of External Powers 38 The Qaim Maqamiya 41 The Mutasarrif iyah: Confessional Representation Institutionalized. 4 6 The French Mandate, 1918-1943: The Consolidation of Consociational Principles 52 Notes 63 CHAPTER III: THE OPERATION OF THE LEBANESE POLITICAL SYSTEM 72 Confessionalism and Proportionality: Nominal Actors and Formal Rules . 72 The National Pact 79 The Formal Institutions 82 Political Clientelism: "Real" Actors and Informal Rules The Politics of Preferment and Patronage 92 Notes 95 CHAPTER IV: CONSOCIATIONALISM PUT TO THE TEST: LEBANON IN THE FIFTIES AND SIXTIES.
    [Show full text]
  • Missing the Consequences Misperceptions of the 1967 Six-Day Israeli-Arab War
    University of Central Florida STARS HIM 1990-2015 2011 Missing the consequences misperceptions of the 1967 six-day israeli-arab war Jonathan Miniello University of Central Florida Part of the Psychology Commons Find similar works at: https://stars.library.ucf.edu/honorstheses1990-2015 University of Central Florida Libraries http://library.ucf.edu This Open Access is brought to you for free and open access by STARS. It has been accepted for inclusion in HIM 1990-2015 by an authorized administrator of STARS. For more information, please contact [email protected]. Recommended Citation Miniello, Jonathan, "Missing the consequences misperceptions of the 1967 six-day israeli-arab war" (2011). HIM 1990-2015. 1165. https://stars.library.ucf.edu/honorstheses1990-2015/1165 MISSING THE CONSEQUENCES: MISPERCEPTIONS OF THE 1967 SIX- DAY ISRAELI-ARAB WAR. by JONATHAN SAMUELE MINIELLO A thesis submitted in partial fulfillment of the requirements for the Honors in the Major Program in Psychology in the College of Sciences and in The Burnett Honors College at the University of Central Florida Orlando, Florida Spring Term 2011 Thesis Chair: Dr. Houghton 1 © 2011 Jonathan. S. Miniello 2 Abstract In recent times, the issues surrounding the “67 borders” have become part of the public debate. In recent speeches, President Obama has suggested that Israel should return to pre-1967 borders with “land-swaps” in exchange for some form of peace with the Palestinians living within current Israeli territory. The validity of Obama’s suggestion has been questioned by both members of the political left and right and in the opinion of this author, with considerable merit.
    [Show full text]