Feeling the heat

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A natural disaster can hand leaders an opportunity to roll up their sleeves and marshal a response, reassure citizens and act in a statesmanlike manner. Or it can morph into a political crisis. For President Recep Tayyip Erdogan, the wildfires engulfing parts of Turkey's southern coast for more than a week risk turning into the latter. The government has drawn criticism for equipment that is poorly maintained or lacking, with the sense its response has been slow and chaotic. That's in contrast to actions from neighboring countries to confront the fires ripping through the region. The danger for Erdogan is the fallout lands on his own shoulders. He has coalesced the state around himself in recent years, acquiring additional powers. And his popularity was already sliding, alongside the ruling party, as the economy stutters and critics air allegations of government and bureaucratic corruption. Erdogan's AK Party lost some key cities in elections in 2019. As the hashtag "helpturkey" gained traction on Twitter, the government ordered probes of social media posts it says sow fear and panic. The broadcasting watchdog ordered TV networks to restrain coverage of the fires, including content "that creates uproar and chaos." And Erdogan is seemingly attempting to redirect attention, resuming pressure on the central bank to cut interest rates and repeating his unorthodox argument that higher borrowing costs foster inflation. He still insists the economy can grow more than 7% this year. All of that suggests that, even with the next election potentially two years away, the president is feeling the heat. — Rosalind Mathieson A man moves farm animals away from an advancing fire in the Marmaris district. Photographer: Yasin Akgul/AFP/Getty Images Click here to follow Bloomberg Politics on Twitter and tell us how we're doing or what we're missing at balancepower@bloomberg.net.

Global Headlines

Hunkering down | Even as some western economies rely on vaccinations, China is sticking to its aggressive containment playbook of mass testing and travel and movement lockdowns to curb a new delta-driven outbreak despite a relatively high level of immunization. Shares of Chinese defense stocks rose after the U.S. approved a $750 million weapons sale to Taiwan, a move that could increase tensions with China. Investors are skittish about Chinese liquor and e-cigarette stocks after a government ministry posted an article online highlighting links between alcohol and cancer. Shifting funds | Two U.S. senators are proposing that states use some unspent pandemic relief funds on infrastructure projects, which would free up billions of federal dollars. John Cornyn, a Texas Republican, and Alex Padilla, a California Democrat, are presenting their plan as an amendment to the $550 billion package backed by President Joe Biden that's heading toward a Senate vote in the next few days. The Biden administration plans to announce new limits on greenhouse gas auto emissions and new electric vehicle sales targets at an event with Detroit automakers at the White House today, sources say. The White House's decision to give renters affected by the pandemic a two-month eviction reprieve risks pushing a housing crisis into the fall if states fail to accelerate the distribution of rent relief. Rapid advance | As the Taliban pushes across Afghanistan, it's now seizing key customs posts and collecting import duties, cutting off a crucial revenue source for the beleaguered government. Over the last month the Taliban has gained control of at least eight of 14 customs posts along the country's borders with Iran, Pakistan, Turkmenistan and Tajikistan. Global press freedom is under spectacular pressure, and the crackdown is creating a more challenging landscape for investors. Restricted information flows can mask political and regulatory problems as well as potential fraud and corruption, raising the risks of doing business — particularly in more volatile emerging markets where good-quality information may be scarce. ​ Turning gloomy | The prospects of a return to the nuclear deal between Iran and world powers are clouding over. As Jonathan Tirone and Golnar Motevalli report, the installation of an ultraconservative Iranian president and a crisis in the shipping lanes of the Persian Gulf don't bode well for the early resumption of negotiations. U.S. and European officials are warning that a prolonged delay could close the window on talks altogether. Best of Bloomberg Opinion Will Biden Avoid Obama's Russia Trap?: Leonid Bershidsky I Expected More Than This Lame German Election: Andreas Kluth China's Market Detour to Marxism: Matthew Brooker Power shock | The cost of natural gas and electricity has surged across Europe, reaching records in some countries, as businesses re-open and workers return to the office. Prices are rising as the world economy emerges from the pandemic and European companies pay more for the pollution permits they need to keep producing power from fossil fuels. What to Watch President Emmanuel Macron is expected to get a green light from France's constitutional court on his new Covid-19 strategy that requires proof of vaccination or a negative test for access to activities including restaurants and cinemas. New York Governor Andrew Cuomo is avoiding the public eye as one of his few remaining allies joined the chorus of Democrats calling for his resignation over sexual-harassment allegations. Lawyers for dozens of Donald Trump supporters who made wild conspiracy claims about Facebook and Dominion Voting Systems rigging the 2020 Presidential election will have to pay up for their bogus suit, a judge in Colorado ruled. And finally ... Faded English seaside towns like Morecambe, with their hodgepodge of fish-and-chips shops, burger joints, and penny arcades lining beachfront promenades, are experiencing a resurgence as Britons holiday at home amid confusing and frequently updated regulations for those returning from overseas. June international passenger traffic at London airports was 92% below 2019 levels, while a poll found two-thirds of residents planned to vacation in the U.K. this summer. On the beach in Cleethorpes. Photographer: Max Miechowski

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