He may not recognize the actual capital city (this being his problem with reality) ,but from where does he derive the right to designate some other city as capital to a foreingn coutry? Why Tel Aviv, why not Haifa or Bersheeba? BTW the presence of embassies is not a determinig factor for declaring a city a capital. There are many examples that an embassy in one country 'covers' also several other neighbouring countries.
Israel passes law sanctioning force-feeding prisoners (Haaretz)
from the article: Swedish FM praises resumption of 'Ramallah-Tel Aviv' talks