ICC’s move against Netanyahu puts Biden in diplomatic and political bind

Good morning. The announcement that the International Criminal Court was seeking arrest warrants for Israel’s leaders just hours after US national security adviser Jake Sullivan held meetings with officials in Jerusalem has left American politicians across the political divide fuming.

President Joe Biden and Republican House Speaker Mike Johnson condemned ICC prosecutor Karim Khan’s statement that he was seeking warrants over alleged war crimes for Benjamin Netanyahu and leaders of Hamas.

Biden said it was “outrageous” to equate the conduct of Netanyahu, Israel’s prime minister, and defence minister Yoav Gallant with that of Hamas leaders. “Let me be clear: whatever this prosecutor might imply, there is no equivalence — none — between Israel and Hamas. We will always stand with Israel against threats to its security,” he said.

But the move by the ICC leaves the Biden administration with a domestic and diplomatic challenge.

The president’s passionate defence of Israel and Netanyahu threatens to exacerbate divisions over the war in Gaza within his Democratic party as it gears up for a tough election battle. Read the full report.

Here’s what else I’m keeping tabs on today:

• Bank of England: Governor Andrew Bailey delivers a lecture on the importance of central bank reserves and implications for the future of the bank’s balance sheet at the London School of Economics.

• Economic data: Germany releases April producer price inflation data, while the EU issues balance of payments and trade figures for March.

• AI summit: UK Prime Minister Rishi Sunak and South Korean President Yoon Suk Yeol open the Seoul summit on AI safety, building on last year’s Bletchley Declaration.

• UK: The Chelsea Flower Show opens in London and runs until Saturday.

• Earnings: AutoZone, Cranswick, Generali, Lowe’s, Macy’s, Pennon Group, SSP, Topps Tiles and Urban Outfitters report. Shell holds its annual meeting.

Five more top stories

1. Exclusive: Nvidia’s rivals and biggest customers are rallying behind an OpenAI-led push to build software that would make it easier for developers of artificial intelligence to switch away from its chips. The push for an alternative to Nvidia’s “Cuda” software seeks to break the chipmaker’s stranglehold on the AI market. Here are the companies backing the initiative.

2. Nearly 4,000 people in England have been convicted for breaching Covid-19 restrictions since the emergency regime ended over two years ago, according to a Financial Times analysis of government data. Criminal defence lawyers said they were surprised by the scale of recent prosecutions, with the number of guilty verdicts over pandemic regulations in England exceeding 27,000 and prompting calls for amnesty.

3. Ursula von der Leyen has suggested making access to EU subsidies conditional on economic reforms as a potential way to improve the bloc’s sluggish competitiveness against global rivals in an interview with the FT. The proposal would be a dramatic shift in how the EU doles out cohesion funds and the Common Agricultural Policy — its two biggest funding streams — and could free up space for additional spending on defence and industrial growth. Read the full interview with the European Commission president.

4. A public body chaired by UK Conservative mayor Lord Ben Houchen is pursuing a deal to make taxpayers liable for contamination at the largely privately controlled Teesworks former steel site, after apparently telling an independent government review the idea had been abandoned. The deal is part of a series of potential changes to the South Tees Development Corporation’s relationship with 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 is set to lose another of its top lawyers, as rivals continue to raid the New York corporate law firm’s lucrative practice of advising the world’s largest banks, asset managers and insurers. David Hepp, co-head of Skadden’s financial institutions group, was leaving for crosstown rival Paul Weiss after 24 years at the firm, people with direct knowledge of the matter said. The move is the latest in an ongoing bidding war for elite talent.

Hear Ursula von der Leyen and her main election rivals clash over the future economic direction of the EU in a special Bruegel-FT leaders’ debate today in Brussels and online. Sign up here.

The Big Read

Andrés Manuel López Obrador once said he would tackle Mexico’s gangs with “hugs not bullets”. But five and a half years into the populist leftwinger’s presidency, organised crime has worsened dramatically, with cartels controlling more territory than ever. Experts say the power of organised crime now poses a serious risk, not only to the population but to business and the economy, and threatens the country’s future.

We’re also reading and listening to . . . 

• Education policy: Focusing on fewer targets may drive excellence more effectively than pursuing a lot of them, writes Stephen Bush.

• UK business: If the government wants to stem the flow of takeovers, it should be clearer on which industries should be protected, writes Anjli Raval.

• AI and work: Even as machines take over jobs, work that requires a human touch has thrived, writes author Jon Hilsenrath. Welcome to the manicure economy.

• Tech Tonic 🎧: China’s BYD, one of the world’s top producers of electric vehicles, is making inroads in Europe. The EU is not pleased.

Join more than 10,000 tech industry leaders and enthusiasts in Amsterdam from June 20-21 for the TNW Conference. As a newsletter subscriber, register using our exclusive promo code FT-SUBS-50 to save 50% off your pass today.

Chart of the day

The crash of the US-made Bell 212 helicopter carrying Iran’s president and foreign minister has brought the state of the country’s aircraft into the spotlight. Although Tehran has not yet given an official explanation for the deadly crash, the more likely culprit is an ageing fleet, battered by decades of wear, tear and western sanctions.

Take a break from the news

Located in an old mansion house in Mexico City’s leafy Roma Norte neighbourhood, Casa Bosques is a design lover’s magnet offering rare books, chocolate and a place to spend the night.

Additional contributions from Benjamin Wilhelm and David Hindley