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Mounting crises

Suddenly, it all seems to be going wrong for Joe Biden.

Instead of the "summer of freedom" he promised pandemic-weary Americans in June, the U.S. is being ravaged by a surge in Covid-19 infections, fueled by the delta variant and continued vaccine skepticism, particularly in rural areas.

The president's economic agenda faces an uncertain fate in the House amid a revolt from moderate Democrats demanding quicker action on a bipartisan infrastructure package, and a partisan showdown over raising the federal borrowing limit looms large in September.

Biden's plans to mark the 20th anniversary of the Sept. 11, 2001 terrorist attacks by having secured an end to America's longest war are now certain to be overshadowed by an unfolding foreign policy disaster and humanitarian crisis in Afghanistan.

Desperate scenes played out at Kabul's international airport today as thousands rushed to exit Afghanistan after Taliban leaders took control of the capital, with reports saying at least five people were killed.

Just last month, Biden defended his decision to follow through on the Afghanistan military pullout agreed to by his predecessor, Donald Trump, calling it "highly unlikely" that "there's going to be the Taliban overrunning everything and owning the whole country."

It's now clear how wrong that prediction was.

As Nick Wadhams writes, the miscalculation amounts to a spiraling political calamity — at home and abroad — for a president who had vowed to be a sure-handed steward of U.S. foreign policy, an error that's likely to be a stain on Biden's legacy no matter what happens now. Kathleen Hunter

An American military helicopter flies above the U.S. embassy in Kabul yesterday.

Photographer: Wakil Kohsar/AFP/Getty Images

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Global Headlines

Canada ballot | Prime Minister Justin Trudeau called an election for Sept. 20 as polls show many voters approve of his government's handling of the coronavirus pandemic. Seeking to regain the legislative majority he lost in 2019, he'll campaign on the message that continuity is needed to fight the virus and continue the economic recovery.

Big win | Zambian opposition leader Hakainde Hichilema secured a shock landslide victory in the nation's presidential election, in his sixth attempt. While incumbent Edgar Lungu has claimed the vote wasn't fair because of violence, the biggest winning margin in a quarter century suggests he may not succeed in challenging the result. As Matthew Hill and Taonga Mitimingi write, Hichilema must now revive an economy in default on its foreign debt after years of overspending.

Leadership crisis | Malaysian Prime Minister Muhyiddin Yassin and his cabinet resigned after more than 17 months in power, bringing to an end an administration beset by opposition calls to step down because of a weakened economy and a surge in coronavirus cases. Muhyiddin will stay on as caretaker prime minister until a successor is named, with the king saying a fresh election is not the best option during a pandemic.

China's economic activity slowed more than expected in July, with fresh virus outbreaks adding new risks to a recovery already hit by floods and faltering global demand. The slowdown came just before U.S. consumer confidence data fell in early August to the lowest level in nearly a decade.

Best of Bloomberg Opinion

Tightening race | Chancellor Angela Merkel's party bloc declined for a second week in a poll that suggests the Social Democrats are gaining ground six weeks before German elections. While Merkel's Christian Democratic-led group retained its lead, it fell to its lowest level since May, and the party's chancellor candidate, Armin Laschet, is behind Social Democrat Olaf Scholz in popularity.

Haiti quake | The U.S. has deployed search-and-rescue teams in Haiti to help find survivors as the death toll soars from Saturday's earthquake. At least 1,297 people were killed after the 7.2-magnitude tremor struck off Haiti's coast. The quake was followed by a series of aftershocks, and Tropical Storm Grace is forecast today to hit the crisis-prone nation, which is still coming to grips with the July 7 assassination of President Jovenel Moise.

What to Watch This Week

  • The Biden administration plans to announce today the biggest long-term increase in food stamp benefits in the program's history.

  • The U.K. is stepping up its efforts to encourage young people to come forward to take Covid vaccines, with a host of companies offering rewards for those who get a jab.
  • Thailand's prime minister, Prayuth Chan-Ocha, will face a no-confidence vote in parliament as early as this month as his government struggles to contain one of the worst Covid-19 outbreaks in the region.
  • Venezuela President Nicolas Maduro released jailed opposition leader Freddy Guevara so he can act as a negotiator in political talks set to start next month.

Thanks to the 60 people who answered Friday's pop quiz, and congratulations to Bridget Diakun who was first to identify Poland as the country that risks undermining relations with the U.S. and the European Union after its ruling party pushed through a controversial media law.

And finally ... With housing becoming increasingly unaffordable in some of the world's biggest cities, officials from Los Angeles to Hong Kong and Barcelona have set their sights on taxing the empty homes of the rich. Rationales range from discouraging people from parking cash in homes instead of living in them to stopping the distortion of supply and demand, but there are also signs the strategy may not make much difference.

Vancouver raised its vacancy tax to 3% this year.

Photographer: Jennifer Gauthier/Vancouver Freelance

 

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