FirstFT: Israel suffers deadliest day of the war

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Israeli forces yesterday suffered their most deadly day since the start of the ground offensive against Hamas in Gaza as the backlash against Prime Minister Benjamin Netanyahu grows.

Reservist units were clearing houses in central Gaza when two buildings exploded and collapsed, killing 21 soldiers, according to the Israel Defense Forces. Three additional officers were reported killed during fierce fighting in the southern city of Khan Younis, bringing the IDF death toll during the ground operation to 219.

Netanyahu, who is coming under mounting pressure for his handling of the war, said the death toll made it “one of the most difficult days since the outbreak of the war”.

Yesterday, the relatives of Israeli hostages held in Gaza burst into a committee meeting in Israel’s parliament. The protest came a day after relatives of the 130 hostages still held by Hamas blocked traffic outside the Israeli leader’s house in Jerusalem.

And here’s what else I’m keeping tabs on today:

• US elections: Nikki Haley lashed out at what she said were Donald Trump’s “lies” on the final day of campaigning ahead of today’s vote in the New Hampshire primary. The Financial Times will kick off live coverage of the primary beginning around 11am Eastern Time.

• Companies: 3M, General Electric, Halliburton, Johnson & Johnson, Netflix and Procter & Gamble report earnings today.

• Blinken in Africa: The US secretary of state is set to visit Nigeria as part of a week-long trip to the continent that started on Sunday. In an interview with the FT ahead of the visit, foreign minister Yusuf Tuggar said his country wanted to work with the US to uphold “democratic ideals” in a region rocked by coups.

Join the FT’s Martin Wolf and Alec Russell along with expert guests tomorrow as they discuss the challenge posed by migration to liberal democracies. Subscribers can register for free here.

Five more top stories

1. Exclusive: The EU’s $800bn recovery fund has been hobbled by red tape, one of the bloc’s leading industrialists has warned, as data indicates that less than a third of the resources have been disbursed. The NextGen EU recovery fund — often touted as a European precursor to Joe Biden’s Inflation Reduction Act — was “very, very difficult” to access, said the head of the European Round Table for Industry lobby group. Read the FT’s full interview with Jean-François van Boxmeer.

• European Central Bank: Christine Lagarde is performing poorly or very poorly as president of the bank, according to most respondents in a union survey of its staff.

2. The war in Ukraine is “a battle of ammunition”, the head of Nato has warned, as the alliance signed a €1.1bn deal to procure more ammunition for its members. Jens Stoltenberg was speaking after Nato signed a contract for “hundreds of thousands of rounds” of 155mm artillery ammunition. Here’s more on the agreement.

3. Trades by two former top Federal Reserve officials created an “appearance of conflict of interest” with their duties as US monetary policymakers, although they were cleared of any unlawful activity, according to the central bank’s watchdog. The Office of Inspector General said Robert Kaplan and Eric Rosengren had traded securities in a way that could “cause a reasonable person to question” their “impartiality”.

4. Bernard Arnault will nominate two more of his children to LVMH’s board. Alexandre, 31, and Frédéric, 29, will be put forward as candidates, according to people familiar with the decision, joining their older siblings. The move will be watched for signs of which of the 74-year-old patriarch’s five children will succeed him.

5. Other drugmakers could still “win” the race in the rapidly growing obesity market dominated by Novo Nordisk and Eli Lilly, according to the chief executive of biotech company Zealand Pharma. The claim by Adam Steensberg follows a 100 per cent surge in the company’s share price in the past year. Zealand’s products in development will have to compete with the popular Wegovy and Zepbound drugs. Read the full interview.

The Big Read

Farming and forestry account for almost a quarter of global greenhouse gas emissions and a hefty chunk of the scope 3 emissions of big food companies originate on farms. As they race to curb their on-farm footprints, some of the world’s biggest food suppliers are pouring cash into regenerative agriculture: improving soil quality by better stewardship such as reduced tilling and planting more diverse temporary pasture. But sceptics warn that it will not be a silver bullet for emissions.

We’re also reading . . . 

• China’s spy agency: The feared Ministry of State Security is emerging from the shadows to take on a more public and political role as President Xi Jinping seeks to tighten his grip on the nation.

• Investing: There may be some truth to fund managers’ grumbles that passive investing meaningfully alters the markets, writes Katie Martin.

• Emmanuel Macron: France’s president is pivoting to the right in an attempt to grab voters and prevent far-right leader Marine Le Pen’s rise to power, writes Le Monde’s Sylvie Kauffmann.

Chart of the day

As once-peaceful Ecuador battles to take control of an unprecedented crime wave, its daily news reports are filled with political assassinations, prison riots and gang shoot-outs. Worst affected is Guayaquil, home to Ecuador’s largest port. FT reporter Joe Daniels visited the city that is an important business hub and centre for the export of bananas and shrimp — as well as illicit cocaine.

Take a break from the news

An exercise guide to New York City: cycle, sail or sweat in the city that never sleeps.

Additional contributions from Tee Zhuo and Benjamin Wilhelm