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Israeli minister Gantz presents ultimatum to Bibi on post-Gaza war strategy

Benny Gantz

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2024 will be an election year like no other, as President Biden seeks re-election amid economic uncertainty, two wars and questions about his age. His likely foe, former President Trump, faces felony charges and vows revenge on his political enemies. Meanwhile, Americans generally are dissatisfied with those choices and are divided over immigration, race, education and more.

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IDF recovers bodies of four hostages held by Hamas in Gaza

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THC-infused drinks are popping up more often in the refrigerator section. And yes, they're legal.

Why it matters: A loophole in the 2018 farm bill helped parlay the marijuana drinks market — and government regulators are catching on. Big Alcohol, which has gotten into the market as beer sales plummet, isn't totally pleased.

The drinks on sale at cannabis stores, breweries and alcohol retailers are commonly derived from hemp, which typically contains less than 0.3% of high-inducing ingredient THC.

THC-infused drinks were "inadvertently legalized" through this bill, per Bloomberg, while marijuana-derived THC products face more strict federal regulation.

Alcohol distributors and marijuana companies both want a lucrative stake in the market.

State of play: Internet searches for THC-laced drinks have been at an all-time high in 2024, per Bloomberg.

They've become so mainstream that Bon Appétit and Esquire have recommendation lists for a "happy hour high."

Major retailer Total Wine offers a selection of THC drinks, often between 2.5mg to 10mg.

Friction point: Some states have started to regulate THC drinks, and the U.S. Cannabis Council called on Congress to more strictly regulate hemp products.

"Hemp legalization has created a national consumer market of untested and unregulated intoxicating products," a letter form the council to members of Congress said. 

Some companies that sell regulated marijuana "feel their market share is unfairly at stake," Bloomberg reported. Meanwhile, alcohol distributors have lobbied to continue being allowed to make these drinks.  

Between the lines: THC drinks could provide a "more intense and prolonged" high than smoking or edibles, according to the dispensary Napa Cannabis Collective. 

The drinks offer precise dosing, not always the case with other forms of cannabis consumption. Their effects can kick in as quickly as five to 10 minutes. 

Yes, but: Clinical trials on the effects of THC are limited because of regulations on cannabis.

Catch up quick: The 2018 farm bill authorized the production of hemp and removed it from the Drug Enforcement Administration's controlled substance list.

The Biden administration has moved to reclassify marijuana as a less dangerous drug. 

A proposal submitted to the Federal Register on Thursday launched the process to make it a Schedule III drug, or one with "a moderate to low potential for physical and psychological dependence."

Go deeper: Biden admin moves to ease U.S. marijuana restrictions

Biden admin moves to ease U.S. marijuana restrictions

THC-infused drinks were inadvertently legalized through the 2018 farm bill.

Illustration of a green drink in a glass with a marijuana leaf on the rim

Elections 2024

Donald Trump

A series of price increases are forcing a growing number of consumers to close their wallets at fast-food and fast-casual restaurants.

Why it matters: Executives across the industry say they've seen sales suffer as consumers trade down and eat at home.

Red Lobster, the largest seafood restaurant chain, is considering filing for bankruptcy and closed nearly 100 locations nationwide.

The big picture: The restaurant struggles are leading to a renewed focus on value and affordability, executives say.

"Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending," McDonald's CEO Chris Kempczinski said on the company's earnings call on April 30.

It's not just low-income consumers, Kempczinkski said, but "I think all consumers are looking for good value for good affordability."

Starbucks CEO Laxman Narasimhan said during the coffee giant's April 30 earnings call that "many customers are being more exacting about where and how they choose to spend their money."

Yes, but: Gunther Plosch, Wendy's chief financial officer, said in early May while households with less than $75,000 in come are reducing frequency of visits, high-income consumers are driving more traffic.

McDonald's $5 meal deal and Starbucks discounts

Zoom in: McDonald's and Starbucks are among the chains banking on deals and new menu items to lure back consumers after sales declines.

McDonald's plans to launch a new $5 meal deal in late June with four items for a limited time, The Wall Street Journal reported. 

Starbucks has been showering rewards members with multiple deals after last quarter's declining traffic and has added various new items like spicy refresher drinks. 

For the month of May, Starbucks has rolled out personalized deals including buy-one-get-one-free offers on Mondays and 50% off drinks every Friday.

Between the lines: Neil Saunders, GlobalData managing director, told Axios that consumers really want everyday low prices over limited-time deals and offers.

"McDonald's $5 meal is sensible, but it will only be offered for a limited time so it will not resolve perceptions that the chain has become very expensive," Saunders said.

"Consumers remain squeezed and many of them can't justify the high prices in fast food — which is supposed to be an inexpensive indulgence," Saunders said.

The intrigue: Rising fast food prices are providing a sales opportunity for Walmart, John David Rainey, the retailer's chief financial officer, told CNBC.

"It's roughly 4.3 times more expensive to eat out than it is to eat at home," Rainey told CNBC. "And that's benefiting our business."

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Starbucks and McDonald's are both adding menu items to drive sales and a series of specials.

Illustration of George Washington on a one dollar bill holding a cheeseburger

Minister Benny Gantz, a notable member of Israel's war cabinet, gave an ultimatum to Prime Minister Benjamin Netanyahu on Saturday and said his party will leave the government if the cabinet doesn't approve a strategy for the war in Gaza by June 8.

Why it matters: Gantz's speech further destabilized the emergency government that was formed after the Hamas October 7 attack and widened the divides within the war cabinet.

The speech came a few days after Israeli Defense Minister Yoav Gallant presented his public indictment against Netanyahu and his unwillingness to draft a post-war strategy.

What they're saying: Gantz said in his speech that an extremist minority took over the decision-making "and is taking Israel into a wall."

He was referring to Netanyahu's political allies and ultranationalist ministers Itamar Ben Gvir and Betzalel Smotruch.

Gantz accused Netanyahu of being driven by personal and political considerations and not by the country's national security interests.

He said the cabinet needs to draft a strategy that will prioritize releasing hostages held by Hamas and only afterwards focus on toppling Hamas rule in Gaza.

Zoom in: He said the strategy must include forming a U.S.-European-Arab-Palestinian directorate in charge of civilian administration in Gaza that won't include Hamas and won't be under the authority of Palestinian President Mahmoud Abbas.

Gantz said another element in the strategy must be the normalization deal with Saudi Arabia that the Biden administration has been working on.

The other side: "Instead of presenting an ultimatum to Hamas, Gantz presented an ultimatum to the Prime Minister," Netanyahu's office said in a statement.

Netanyahu's office said Gantz's ultimatum means a defeat for Israel, the abandonment of the majority of the hostages, the survival of Hamas in Gaza and the formation of a Palestinian state.

Netanyahu's statement made clear for the first time that he rejects the Saudi demand to get an irreversible and time-bound Israeli commitment for a path toward a Palestinian state in return for a normalization deal. 

State of play: The political crisis exploded a day before White House national security adviser Jake Sullivan is expected to arrive in Israel from Saudi Arabia and hold separate meetings with Netanyahu and Gantz.

Sullivan's talks with Saudi Crown Prince Mohammed bin Salman on Saturday focused on the "Mega Deal" the Biden administration wants to reach with Saudi Arabia and includes a historic peace deal between the kingdom and Israel. 

Go deeper: Israeli defense chief unloads on Bibi over lack of post-war plan

Israeli defense chief unloads on Bibi over lack of post-war plan

Gantz said an extremist minority took over the decision-making "and is taking Israel into a wall."

Benny Gantz votes during Israel's last elections in November 2022. Photo: Jalaa Marey/AFP via Getty Images

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