EU plans ‘consequences’ if Netanyahu continues to oppose two-state solution

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Good morning. We carry you an unique story from Brussels to begin the week, with the EU urging member states to impose “penalties” on Israel if the nation continues to oppose Palestinian statehood.

The proposed menace, to be mentioned at a gathering of EU international ministers at the moment, underscores rising unease at Prime Minister Benjamin Netanyahu’s stance amongst a lot of Israel’s western allies, because the civilian demise toll from its battle towards Gaza mounts, stoking instability throughout the Center East.

This weekend Netanyahu doubled down on his insistence that Israel ought to keep “safety management over all the space west of [the river] Jordan”, territory that encompasses besieged Gaza and the occupied West Financial institution. He reiterated that place after a name with US President Joe Biden, who had earlier stated Netanyahu may very well be open to compromise.

In a doc circulated to capitals forward of at the moment’s assembly and seen by the Monetary Instances, Brussels proposed that EU member states ought to “set out the results they envisage to connect to engagement or non-engagement” with their proposed peace plan. The plan consists of statehood for Palestine and mutual sovereign recognition — the so-called two-state resolution. Henry Foy has extra particulars.

And right here’s what else I’m watching at the moment:

• Africa public well being: The primary malaria vaccination marketing campaign for youngsters backed by the World Well being Group begins within the continent at the moment, with almost 30mn jabs to be distributed within the coming months.

• Financial knowledge: Germany’s central financial institution releases its month-to-month report, whereas the EY Merchandise Membership publishes its winter financial forecast for the UK.

• UK politics: Britain’s first Labour authorities underneath Prime Minister Ramsay MacDonald got here into energy precisely 100 years in the past. A century later, opposition chief Sir Keir Starmer hopes to do the identical as he units a deadline to finalise the social gathering’s manifesto forward of this 12 months’s elections.

Be a part of the FT’s Martin Wolf, Alec Russell and professional company this Wednesday as they talk about the problem posed by migration to liberal democracies. Register without cost right here.

5 extra high tales

1. Ron DeSantis has suspended his marketing campaign for US president and endorsed Donald Trump because the Republican nominee, simply forward of tomorrow’s New Hampshire major. The Florida governor stated many Republicans backed Trump, whereas Nikki Haley, the remaining aggressive candidate towards the previous president, represented “a repackaged type of warmed-over corporatism”. Right here’s how Haley and Trump responded.

2. Macquarie has raised a document of greater than €8bn for its new European infrastructure fund within the newest signal of investor urge for food for important property as companies search to revenue from transitions to cleaner power and provide chains which are nearer to shoppers. The Australian group stated its seventh Europe infrastructure fund was the biggest such car centered on the continent. Learn the complete story.

3. ExxonMobil has filed a lawsuit to attempt to cease a shareholder local weather decision from going to a vote at its annual investor assembly. In a primary for the US oil main, Exxon is suing Observe This, an Amsterdam-based investor activist group, and Arjuna Capital, a registered funding adviser, in an try to dam their movement calling for quicker cuts in greenhouse gasoline emissions.

4. All components of the UK have suffered from financial stagnation since 2010, based on a report printed at the moment by the Centre for Cities think-tank, which charted the failure of successive Conservative governments within the wake of the monetary disaster to spice up city economies, carry productiveness or slender regional divides. Listed here are extra findings from the analysis.

5. McKinsey head Bob Sternfels is going through inside resistance to his re-election after failing to clinch a second three-year time period on the primary spherical of voting for world managing associate. Greater than half of McKinsey’s 750 senior companions backed different candidates, based on folks conversant in the end result. Right here’s why he’s going through opposition.

The Huge Learn

Moscow’s invasion of Ukraine uncovered many vulnerabilities in US and European power provides, not least within the nuclear sector, the place greater than a fifth of the enriched uranium gasoline required to energy each areas’ nuclear fleets comes from Russia. For the US power sector, it was a name to motion. Utilities firms have spent two years stockpiling nuclear gasoline in case Russian provides are disrupted. On the similar time, Washington is enterprise a multibillion-dollar push to rebuild its nuclear provide chain.

We’re additionally studying . . . 

Chart of the day

The world’s most profitable hedge funds made their largest earnings on document final 12 months after punchy bets on inventory markets paid off when share costs surged.

Take a break from the information

“I simply went to Bridgwater and there should be 5 in about 50 metres,” wrote one Reddit person. How did Turkish barber retailers grow to be so ubiquitous in Britain? Go on a (principally unscientific) mission with FT Journal’s Snigdha Poonam as she seeks solutions.

Extra reporting from Benjamin Wilhelm