Bloomberg - Balance of Power - As the US predidential campaign devolves into chaos....

 

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here. As the US presidential campaign devolves into chaos, with Donald Trump narrowly escaping an assassin’s bullet and Joe Biden facing calls to step aside, Chinese leader Xi Jinping quietly began mapping out his vision for the world’s second-largest economy. As a closed-door meeting of top Communist Party officials kicked off today in Beijing, China’s state media seized on the opportunity to proclaim the superiority of the nation’s political system against the pitfalls of American democracy. “This violence indicates that many people no longer believe that democratic processes can address their concerns,” the Communist Party’s Global Times tabloid wrote in a Sunday editorial, criticizing extreme polarization in a system it portrayed as deep in decay. WATCH: Chinese state-run media criticized the US political system following the attack on Trump. While China’s citizens can’t vote for their president — a simple fact the article failed to mention — the implicit bargain is that they will sacrifice political freedoms as long as the Communist Party raises their living standards. That makes the Third Plenum, a four-day gathering of roughly 200 top party leaders, so important. In past years, it has often revealed significant policy pivots — such as when Deng Xiaoping paved the way to open the economy in 1978. Major moves are not likely this week. Officials are set to rubber stamp Xi’s plan to propel Chinese manufacturing to the top of the value chain, as his government looks to overcome a property downturn and put the nation’s debt burden on a more sustainable footing. China’s disappointing second-quarter growth data is unlikely to change that plan, despite calls from economists to step up support for boosting consumer spending. One real risk to China’s manufacturing ambitions, however, is a wave of higher tariffs from the US and other nations. Even as the US system faces a fresh test with this election cycle, hitting out at China is one of the few things that appears to unite Americans.— Jenni Marsh Visitors during a flag-lowering ceremony at Tiananmen Square in Beijing this month. Photographer: Na Bian/Bloomberg

Global Must Reads

Biden is in a bind about how to confront his political rival, who literally dodged a bullet. His strategy to overcome calls to step down due to his age and fading mental acuity was to take the fight to Trump. But overt attacks on the Republican nominee could easily backfire when the opponent just survived an assassination attempt. All that is left for the president is to appear presidential, rise above the fray and appeal to candidates to tone down their rhetoric. Even with blood streaking across his face, Trump wasn’t going to let the moment go to waste, his instinct for showmanship kicking in instantly after a shooter’s bullet clipped his ear. The fist pump to his mass of fans at a rally in Pennsylvania on Saturday played in an endless loop on television and across social media, serving to unite his base and Republican leaders in support. Hamas denied a report it’s pulling out of cease-fire talks after an Israeli air strike on Gaza aimed at killing two of the militant group’s top officials left at least 90 people dead and 300 injured. Israeli security officials said they’re pretty confident their attack on Hamas military chief Mohammed Deif was successful. The leader of France’s Green Party is known as “the other Marine” for her opposition to Marine Le Pen of the far-right National Rally. As the messy aftermath of the country’s parliamentary elections unfolds, Marine Tondelier has emerged as an unexpected power player, who could even become a compromise candidate for prime minister. Marine Tondelier. Photographer: Alain Jocard/AFP/Getty Images Eight years after Mohammed bin Salman unveiled Vision 2030, the Saudi Crown Prince’s blueprint for a life after oil, delays and scale-backs with the multitrillion dollar makeover are laying bare the pressure on the kingdom’s finances. With the budget in deficit for six straight quarters, Saudi Arabia has become the biggest issuer of international debt in emerging markets, and its decision last year to cut oil production with other OPEC+ members has failed to raise export revenues substantially through higher prices. Nicolás Maduro has had a firm grip on Venezuela’s presidency since 2013, when he succeeded his late mentor, Hugo Chávez. Recently, Maduro has purged his inner circle, somehow managed to stabilize a shaky economy, and now seems willing to take his chances with an open vote. Five people were killed and about 20 others wounded when a car bomb exploded yesterday outside a tea shop in Somalia’s capital, Mogadishu, where football fans were watching the European Championship final, police said. Disgraced former Peruvian leader Alberto Fujimori is planning to run for president again as the candidate for the Popular Force political party, his daughter Keiko Fujimori, who leads the party, said on X. Spanish Prime Minister Pedro Sanchez made a strong defense of Digital Transformation Minister Jose Luis Escriva’s economic credentials but stopped short of endorsing him as the country’s next central bank governor.

Washington Dispatch

Jury deliberations resume today in the trial of Senator Bob Menendez, the New Jersey Democrat and former chair of the Foreign Relations Committee, who’s charged with bribery and extortion. Prosecutors say Menendez, 70, sold his office to assist businessmen who sought his help. FBI agents seized 13 gold bars, nearly $500,000 in cash and a Mercedes Benz at his house in 2022 — evidence that became the crux of the trial in Manhattan federal court. Menendez, who didn’t testify, has denied wrongdoing. His lawyers claimed the senator’s actions were lawful and good for his constituents, while blaming his wife, Nadine, for keeping her husband in the dark about her financial problems and gifts she received. She was also charged, but will be tried later because she’s undergoing treatment for breast cancer. One person to watch today: A day after his Oval Office speech addressing the Trump shooting, Biden will be interviewed by Lester Holt of NBC News. Sign up for the Washington Edition newsletter for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television.

Chart of the Day

China’s carbon-dioxide emissions are on track for their first annual decline since 2016, indicating that the world’s top polluter may have seen its greenhouse-gas output top out last year, well ahead of Xi’s 2030 target. China accounted for more than 30% of the world’s emissions in 2022 and for years has driven the increase in the global total, meaning an early peak could help limit planetary warming.

And Finally

The climate crisis exposes electricity networks to flash floods ripping down transmission towers, droughts drying up hydro reservoirs and demand spikes from cooling during heatwaves. Expanding and upgrading power grids will cost about $24.1 trillion to meet net-zero goals by 2050, outpacing the investment needed in renewable-power capacity, according to BloombergNEF. Because of their vast areas and high energy use, the US and China face the biggest bills. Fallen transmission towers in the aftermath of a storm in Texas in May. Photographer: Melissa Phillip/Houston Chronicle/Getty Images Thanks to the 34 people who answered the Friday quiz and congratulations to John Kevin Berry who was the first to identify the profession of Iran’s new president: cardiac surgeon.

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