Balkans power play

Follow Us Get the newsletter Donald Trump has made a habit of picking fights with America's European allies throughout his term as U.S. president. Now he's muscling in on a particularly sensitive spot for the European Union. EU diplomats are furious at being shut out of planned White House talks on June 27 between Serbia and Kosovo, Patrick Donahue and Jasmina Kuzmanovic report. It follows years of largely fruitless efforts by Brussels to reconcile the former wartime foes, which both aspire to join the bloc. The officials point the finger at U.S. Special Envoy Richard Grenell, suspecting him of seeking a quick foreign policy win for Trump in an area dominated until now by German Chancellor Angela Merkel. Grenell built a reputation for making life difficult for Merkel when he was ambassador to Berlin. The Balkans initiative came on the day Trump labelled Germany "delinquent" in its defense spending and confirmed plans to slash U.S. troop numbers there. "It's important that in the battle of elephants we remain unhurt," Serbian President Aleksandar Vucic said. "We're not going to fight with Germany or America." — Anthony Halpin Question marks placed on chairs are displayed in Pristina on Aug. 30, 2015, as part of the International Day of the Disappeared. There are around 1,700 people listed as missing since the end of the Kosovo war. Photographer: Armend Nimani/AFP via Getty Images Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Border friction | China and India are seeking to defuse tensions after an altercation in a disputed border area — involving stones and iron rods — left 20 Indian soldiers dead and an unknown number of Chinese casualties. Beijing said it was in touch with Delhi and called the situation "controllable." That's even as the two sides pointed the figure at each other for causing the clash. Prime Minister Narendra Modi will speak with chiefs of Indian political parties on June 19. Nationalist fervor is running high in media in both China and India. Pushing back | Seoul warned North Korea against further provocations, even as the regime pledged to move troops into previously-disarmed border areas. South Korean President Moon Jae-in's office urged Kim Jong Un to tread carefully after Pyongyang demolished a $15 million liaison office set up north of the border in 2018. North Korea's state media unleashed fresh threats against South Korea and Moon, including a personal rebuke from Kim's sister, Kim Yo Jong. Click here for what else Kim might have up his sleeve to pressure Seoul. Environmental justice | U.S. Democratic presidential nominee Joe Biden sought to make the link between racial inequality and climate change with a pledge to support communities of color in a daily struggle against pollution. He's promised to undo Trump's moves to weaken fuel economy standards for cars and environmental regulations for oil and gas wells if he wins in November. As protesters seek to remove statues associated with slavery, the former Confederacy and racial inequality, there's a renewed focus on brands, logos and mascots with questionable racial histories. Read how Democrats and Republicans hold starkly diverging views of the economy — a gap that's widening as the pandemic persists. The Brexit-supporting regions that propelled Prime Minister Boris Johnson into power in the U.K. are now being disproportionately hit by coronavirus and will bear the brunt of the economic fallout.  Next test | Canadian Prime Minister Justin Trudeau moved quickly to roll out income benefits to millions of workers after Covid-19 pummeled the economy and led to the highest unemployment numbers since World War II. As the country reopens, Kait Bolongaro looks at how Ottawa now needs to figure out how to get people back into work. Latin America's pandemic | Honduran President Juan Orlando Hernandez said he and his wife are infected with Covid-19, as the virus continues its march across the region. Brazil had record daily cases, with the pandemic spreading into poorer interior areas, and the number of infections rose further in Mexico. Mexico plans to keep migrant workers from traveling to Canada amid outbreaks on farms, threatening a labor squeeze in its fruit and vegetable industry as harvests start to ramp up. What to Watch NATO defense ministers hold video talks today to discuss a more assertive Russia, and after Trump announced the troop withdrawal from Germany. President Xi Jinping makes a speech today at a coronavirus video summit between China and Africa. New Zealand Prime Minister Jacinda Ardern called in the military to enforce border controls after two women who arrived from the U.K. were allowed to leave quarantine early, then tested positive for Covid-19. And finally ... Amid heightened policing to rein in pro-democracy protests, Hong Kongers are also bracing for stricter digital controls — which could turn the city of 7 million into a surveillance state that more closely resembles China. As Jamie Tarabay explains, law enforcement agencies have already deployed closed-circuit television cameras in recent years and made use of facial recognition software. Now, residents and activists worry that proposed national security legislation will further encroach on civil liberties. Demonstrators use a hammer to break a surveillance camera outside the Hong Kong International Airport. Photographer: Paul Yeung/Bloomberg   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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