China and North Korea forever

Balance of Power From FOLLOW US SUBSCRIBE   U.S. presidents come and go, but China and North Korea will still have each other. Xi Jinping got the royal treatment today from Kim Jong Un — a 21-gun salute and convertible ride past cheering crowds — as he began the first visit by a Chinese leader to Pyongyang in 14 years. On display was a renewed camaraderie between countries that battled the U.S. together in the Korean War. The trip sends U.S. President Donald Trump, whose own outreach to Xi and Kim has faced difficulty, a pointed message ahead of the Group of 20 summit in nearby Japan. Xi's showing he is key to maintaining sanctions pressure on North Korea as the regime's dominant trading partner and security ally. Kim's demonstrating he has other options to another sit-down with Trump. China and North Korea have reason to get past a period of tension over Pyongyang's nuclear and missile tests (Xi did not meet Kim for five years until last year). Xi is in a messy trade war with the U.S. that is hurting his economy. Kim's last sit down with Trump collapsed in tense circumstances. A commentary by Xi in North Korea's state media spoke of a "new chapter" in the "friendship." Both leaders clearly see the benefit right now in putting that on public display. - Brendan Scott A broadcast of the meeting between Kim Jong Un and Xi Jinping in Beijing today. Photographer: Andy Wong/AP Global Headlines Drone spat | Oil prices rose after Iran announced it shot down what it said was a U.S. spy drone near the mouth of the Persian Gulf, taking tensions in the Middle East to their highest point in Trump's presidency. It follows another missile attack in Saudi Arabia by Iranian-backed Yemeni rebels, and the White House said Trump — who has abandoned the 2015 nuclear accord with Tehran — was closely monitoring the situation. Presidential authority | Trump told confidants as recently as yesterday he believes he has the authority to replace Jerome Powell as Federal Reserve Board chair, but isn't planning to do so immediately, Jennifer Jacobs and Saleha Mohsin report. Powell earlier said he intends to serve his four-year term despite Trump's criticism of the central bank for not doing enough to bolster the economy. Cash machine | The president raised $24.8 million in less than 24 hours as he launched his campaign for re-election in 2020, the Republican National Committee said, dwarfing the the first-day fundraising totals of Democratic rivals. As Bill Allison explains, the money drive uses committees that benefit both Trump's campaign and the RNC. Whoever wins the Democratic nomination will eventually also be able to tap broader party resources. Democratic front-runner Joe Biden refused to apologize for saying he worked with segregationists in an atmosphere of "civility" in the Senate more than four decades ago. Tory leadership | The U.K.'s ruling Conservative Party will today pick the two candidates who will compete to succeed Theresa May as prime minister. Barring a last-minute disaster, one is certain to be the face of Brexit, former Foreign Secretary Boris Johnson. Whoever ends up as his rival has a mammoth task of trying to beat the favorite in the head-to-head ballot of party members next month. Squeezing Venezuela | Russian oil giant Rosneft is extracting concessions from crisis-ridden Venezuela to enter the offshore natural gas market on the cheap. A new accord gives Rosneft tax breaks to produce and export gas from two fields off Venezuela's east coast. Moscow is both propping up and gaining from Nicolas Maduro's regime as the U.S. applies sanctions and China's financial support appears to be fading. What to Watch South African President Cyril Ramaphosa is expected to use his state-of-the-nation address today to outline support measures for the beleaguered state-owned electricity company, which Goldman Sachs describes as "the single biggest threat" to the economy. President Vladimir Putin is holding his annual live "Direct Line" call-in show today with ordinary Russians. It comes as his popularity slides and discontent simmers over falling living standards. European Union Leaders are in Brussels today to try and identify a candidate to head the Commission, the bloc's executive arm. There are conflicting national and party interests to navigate. Here's our guide on what you need to know. Former Interpol President Meng Hongwei pleaded guilty in China to taking bribes, state media reported, months after going missing during a trip home. His disappearance shone a light on China's opaque legal system. And finally… Iceland's other-worldly landscapes of snow-capped volcanoes, gurgling mud pools and vertiginous fjords have been a fitting backdrop for "Game of Thrones" and drawn record visitor numbers that sustain the tiny north Atlantic island's economy. But tourism in the all-important summer season is in free fall after the collapse of Wow Air as the country braces itself for its worst recession in a decade. A stunning shot of the Fjadrargljufur canyon.   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to sign up here.   Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022