ICC move against Netanyahu puts Biden in a diplomatic and political quandary

good morning. Just hours after U.S. National Security Adviser Jake Sullivan met with government officials in Jerusalem, the announcement that the International Criminal Court was seeking arrest warrants for Israeli leaders turned U.S. politics on its head. People across the political spectrum are furious.

President Joe Biden and Republican House Speaker Mike Johnson have condemned ICC Prosecutor Karim Khan’s statement that he is seeking warrants for war crimes charges against Prime Minister Benjamin Netanyahu and Hamas leaders.

Biden said it was “outrageous” to equate the actions of Israeli Prime Minister Benjamin Netanyahu and Defense Minister Yoav Galant with those of Hamas leaders. “Let me be clear: no matter what this prosecutor says, there is no equivalence between Israel and Hamas. We will always stand with Israel against threats to Israel’s security,” he said.

But the ICC’s move leaves the Biden administration with domestic and diplomatic challenges.

The president’s passionate defense of Israel and Prime Minister Benjamin Netanyahu threatens to exacerbate divisions over the Gaza war within the Democratic Party as it prepares for a tough election campaign. Read the full report.

Here are some other things I’m focusing on today:

• Bank of England: Governor Andrew Bailey speaks at the London School of Economics on the importance of central bank reserves and the implications for the future of central bank balance sheets.

• Economic data: Germany will release producer price inflation statistics for April, and the EU will release balance of payments and trade statistics for March.

• AI Summit: British Prime Minister Rishi Sunak and South Korean President Yoon Seok-yeol opened the Seoul Summit on AI Safety, building on last year’s Bletchley Declaration.

• England: The Chelsea Flower Show has opened in London and will run until Saturday.

• Revenue: Reports on AutoZone, Cranswick, Generali, Lowe’s, Macy’s, Pennon Group, SSP, Topps Tiles, and Urban Outfitters. Shell will hold its annual general meeting.

5 more top articles

1. Exclusive: Nvidia’s rivals and biggest customers are rallying behind an OpenAI-led push To build software that allows artificial intelligence developers to easily switch from that chip. The push for alternatives to Nvidia’s “Cuda” software aims to break the chipmaker’s stranglehold on the AI ​​market. Companies supporting this initiative include:

2. Nearly 4,000 people have been sentenced for breaching coronavirus restrictions in the UK since the emergency regime ended. That was more than two years ago, according to a Financial Times analysis of government data. Criminal defense lawyers said they were surprised by the scale of the recent prosecutions, as the number of convictions over pandemic restrictions in the UK exceeds 27,000 and calls for pardons grow. Ta.

3. Ursula von der Leyen proposed making access to EU subsidies conditional on economic reforms in an interview with the FT as a potential way to improve the bloc’s sluggish competitiveness against global rivals. The proposals would dramatically change how the EU’s two biggest sources of funding, the Cohesion Fund and the Common Agricultural Policy, are funded, and could give room for additional spending on defense and industrial growth. Read the full interview with the President of the European Commission.

4. A public body chaired by UK Conservative Mayor Sir Ben Houchen is pushing ahead with a deal to hold taxpayers accountable. It comes after an independent Government review into contamination at the largely privately controlled former Tees Works steelworks apparently told it had abandoned the plans. The deal is part of a series of potential changes to the relationship between South Tees Development Corporation and businessmen Chris Musgrave and Martin Corney, who own 90 per cent of the site’s development vehicle. Read more from the report.

5. Exclusive: Skadden Arps loses another top lawyer as rivals continue raids on New York corporate law firmshas a lucrative business advising the world’s largest banks, asset managers and insurance companies. David Hepp, co-head of Skadden’s financial institutions group, was leaving after 24 years with his out-of-town rival Paul Weiss, a person with direct knowledge of the matter said. Told. The move is the latest in an ongoing bidding war to acquire elite talent.

Hear Ursula von der Leyen and her main electoral rivals clash over the EU’s economic future at Bruegel and the FT’s special leadership debate in Brussels and online today. please. Sign up here.

big reading

Andrés Manuel López Obrador once said he would fight Mexican gangs with “hugs, not bullets.” But in the five and a half years since the populist left took office, organized crime has worsened dramatically, with cartels controlling more areas than ever before. Experts say the power of organized crime now poses serious risks not only to citizens, but also to businesses and the economy, threatening the country’s future.

We also read and listen. . .

• Educational policy: Stephen Bush writes that focusing on a few goals can promote excellence more effectively than pursuing many.

• UK business: If governments want to stem the flow of takeovers, they need to be clearer about which industries should be protected, writes Anjili Raval.

• AI and work: While machines are taking over jobs, jobs that require the human touch are thriving, writes author John Hilsenrath. Welcome to the nail polish economy.

• Tech Tonic 🎧: China’s BYD, the world’s leading electric car manufacturer, is expanding into Europe. The EU is not satisfied.

More than 10,000 technology industry leaders and enthusiasts will be attending the TNW conference in Amsterdam from June 20th to 21st.Sign up as a newsletter subscriber using our exclusive promo code FT-SUBS-50 Get 50% off your pass today.

chart of the day

The crash of a US-made Bell 212 helicopter carrying Iran’s president and foreign minister has drawn attention to the condition of the country’s aircraft. The Iranian government has yet to give an official explanation for the deadly crash, but the more likely culprit is its aging fleet, battered by decades of wear and tear and Western sanctions.

Take a break from the news

Housed in an old mansion in Mexico City’s leafy Roma Norte district, Casa Bosques is a magnet for design lovers, offering rare books, chocolates and a place to spend the night.

Additional contributions by Benjamin Wilhelm and David Hindley