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High wire act

Balance of Power
Bloomberg

Frenchman Philippe Petit became famous in the 1970s for tiptoeing more than 1,300 feet above the ground on a cable between the Twin Towers of the World Trade Center in New York.

Nowadays it's countries doing the high-wire balancing act as they navigate between two superpowers – the U.S. and China. Just one careless step could spell peril.

You can see it in the language in speeches by officials in smaller states like Singapore. You can hear it in the words of British Foreign Secretary Dominic Raab, who is due to meet U.S. Secretary of State Michael Pompeo this week.

In a private address this month to his diplomats, Raab spoke of the need to "pitch ourselves very carefully" with both the U.S. and China, adding countries like the U.K. are "not really interested in being snared in a new Cold War."

The fancy footwork was also on display during a call yesterday between China's Xi Jinping and European Union leaders, including Angela Merkel. The EU sought to keep hopes alive for an investment deal this year, even as it pushed Beijing to open up its markets.

Countries don't want to be seen as being in a particular camp. But it's going to get even trickier to navigate no matter who wins the U.S. election in November, because America's stance on Beijing will keep hardening, even as China's economy regains momentum.

And it's not just a dilemma for heads of state. The corporate landscape (watch Nvidia's deal on Arm) has its own minefields. That has potential consequences across the spectrum for markets, companies, economies and governments alike.

— Rosalind Mathieson

European Council President Charles Michel, European Commission President Ursula von der Leyen, Merkel and Xi during a virtual summit in Brussels yesterday.

Photographer: Yves Herman/AFP

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Global Headlines

Shaky claim | Attorney General William Barr has repeatedly floated a conspiracy theory that other countries may distribute counterfeit mail-in ballots to sway the U.S. vote. While election officials, ballot-printing companies and political scientists say that's virtually impossible, it's a persistent argument from Barr — one that echoes Russian claims designed to undermine trust in the process.

Campaign 2020

There are 49 days until the election. Here's the latest on the race for control of the White House and Congress.

Kamala Harris's arrival on the Democratic presidential ticket has helped prompt an historic outpouring of contributions, bringing in women donors, Californians and others who had avoided giving money to Joe Biden's campaign until they saw his running-mate pick. And the Nevada company that allowed Donald Trump to hold a rally indoors Sunday with few masks and little social distancing is facing local fines for violating Covid-19 safety regulations.

Other developments:

Sign up to receive daily election updates as a direct mobile notification on Twitter. Simply click on this link and like the tweet.

Policy win | The United Arab Emirates and Bahrain will today sign accords establishing diplomatic relations with Israel, a Trump-brokered achievement the president's supporters say merits the Nobel Peace Prize and his detractors claim is mostly illusory. The two will become just the third and fourth Middle East nations, after Egypt and Jordan, to formally recognize Israel. Qatar yesterday ruled out making a similar move.

First step | U.K. Prime Minister Boris Johnson's plan to renege on part of the Brexit divorce deal passed its first parliamentary hurdle, with the House of Commons approving the Internal Market Bill by 340 to 263. While only two Tories went against Johnson in last night's vote, he faces a bigger rebellion as the legislation progresses, especially in the House of Lords.

  • Britain's labor market worsened in July, taking total job losses under the pandemic to almost 700,000.

Climate skeptic | Trump and California state officials sparred over whether climate change is contributing to out-of-control wildfires across the West, after the president insisted that poor forest management drives the conflagrations. "It'll start getting cooler, you just watch," he responded yesterday when the head of the state's Natural Resources Agency told him a warming climate is making the fires worse. Trump's comments prompted a rebuke from Biden.

Bidwell Bar Bridge is surrounded by fire in Lake Oroville, California, on Sept. 9.

Photographer: Josh Edelson/AFP

Plot allegations | Peruvian President Martin Vizcarra accused the head of the congress of plotting to remove him from office as a bid to impeach him lost steam. He alleged that Congress chief Manuel Merino — first in line to replace him — had contacted military commanders and planned out a cabinet to take over the government, warning that "dark forces" are seeking to destabilize the country.

What to Watch

  • A 50-member group of U.S. House Democrats and Republicans today will release a $1.52 trillion coronavirus stimulus plan in a long-shot attempt to break a months-long deadlock on providing relief to the economy. 
  • Alexey Navalny is planning to return to Russia, even as the Kremlin critic remains under guard in a German hospital after a near-fatal poisoning in his homeland last month.
  • Dutch Prime Minister Mark Rutte will try to appeal to voters ahead of next year's election with today's budget, which is likely to focus on lowering income tax while delaying a plan to cut the main company rate.

And finally ... Just when Nigeria needs its agriculture most, with the pandemic disrupting supply chains and sending food prices soaring, an upsurge in sectarian and criminal violence is driving more farmers off the land. The banditry is undermining President Muhammadu Buhari's push to resuscitate domestic output in Africa's most populous nation with his mantra: "Produce what we eat and eat what we produce."

Hausa-Fulani pastoralists graze their cattle on the outskirts of Sokoto in Nigeria in 2019.

Photographer: Luis Tato/AFP

 

 

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