When a prime minister hits pause

Spanish prime minister decides to hit the pause button [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Spain’s prime minister is [taking a time out](. Pedro Sanchez told Spaniards on Wednesday he’s cancelling all public engagements until after the weekend while he thinks about whether he wants to remain in his job. The surprise announcement by the Socialist leader was prompted, ostensibly, by the decision by a court in Madrid to open a probe into his wife for alleged influence peddling. Sanchez says it’s a right-wing stitch up and he’s sick of the abuse his family gets because of his position. The whole situation is very unusual to say the least. Leaders quit, of course. Sometimes their aides might leak that they are thinking about it. But it’s quite possibly unprecedented in politics for a prime minister to tell voters he’ll announce in five days time whether he’ll stay on. So [what is really going on](? One theory is that after six years in power, Sanchez wants one of the top European Union jobs that will become available in June. The timing would more or less line up. Another is that it’s a coup de theatre engineered to distract attention from his wife’s business dealings and bolster his governing coalition. If he can force the Catalan nationalists to back him again in a confidence vote in the next couple of weeks, that will strengthen the Socialists’ campaign for the Catalan regional elections on May 12. There is also speculation in Madrid that Sanchez could broker a deal with the parties that put him in power for Deputy Prime Minister Maria Jesus Montero to take over. Maybe he really is just sick of it all. Come back on Monday, with the whole of Spain, to find out. — [Ben Sills]( Sanchez and his wife, Begona Gomez, in Granada on Oct. 5, 2023. Photographer: Paul Hanna/Bloomberg Global Must Reads Chinese President Xi Jinping told visiting US Secretary of State Antony Blinken in Beijing that the two nations need to [solve some remaining issues]( in bilateral ties, after some positive achievements in the past months. He made the comments as the world’s biggest economies spar in [high-stakes meetings]( spanning trade complaints to China’s continued backing for Russia. Support for US aid to Israel among swing-state voters has plunged in the months since Prime Minister Benjamin Netanyahu’s government [launched a military campaign]( in Gaza, the latest Bloomberg News/Morning Consult poll shows. Fifty-one percent of registered voters in the seven states that will decide the presidential election said they either strongly or somewhat back aid to Israel. That’s down 10 percentage points from November. Pro-Palestinian demonstrators outside the Stern School of Business at New York University on Monday. Photographer: Stephanie Keith/Bloomberg North Korean leader Kim Jong Un oversaw tests of a new rocket system that could bolster his ability to attack its southern neighbor and may become a weapon [he attempts to sell to Russia]( for use in its invasion of Ukraine. It’s the second trial of the device this year reported by state media for what weapons experts said is a guided missile system with an estimated range of between 40 kilometers and 60 kilometers (25 miles to 37 miles). Just down the corridor from where Danish Crown’s pigs are slaughtered and prepared for export as bacon, six staff at the abattoir in Blans, Denmark, fill in customs and health certificates made necessary by the UK’s split from its largest trading partner. From April 30, London will impose checks on fresh food imports — a [reversal from the era of frictionless trade]( when the country was part of the EU. Imports from the bloc to the UK are about to get a lot more expensive. Argentine President Javier Milei has pulled off a critical feat in a country long ravaged by runaway inflation: [He stabilized the currency](. The peso has soared 25% against the dollar over the past three months in one key market known as the blue-chip swap, which is used by many investors and companies. That’s more than the gains posted by any of the 148 currencies that Bloomberg tracks against the dollar. The US Supreme Court suggested it might drag out Donald Trump’s claim of immunity from prosecution, an outcome that could doom [any chance of a pre-election trial]( on charges of trying to stay in power illegally. Turkish President Recep Tayyip Erdogan will meet with US President Joe Biden [at the White House]( on May 9, sources say, at a time of growing fears that a wider Middle East conflict could be approaching. China is preparing a United Nations General Assembly resolution that it says is intended to help [close gaps between rich and developing countries]( in the advance of artificial intelligence. Mexican ruling party presidential candidate Claudia Sheinbaum saw her lead over main opposition contender Xochitl Galvez [narrow to 15 percentage points]( from 19 previously, according to an April poll. Editor’s Note: Don’t miss Bloomberg’s new podcast series [Voternomics](. Hosted by Stephanie Flanders, Allegra Stratton and Adrian Wooldridge, Voternomics will unpack the implications for economies, money and markets of elections happening around the world and especially the US and UK. This week: a conversation with historian and author Niall Ferguson on why the US election isn’t about foreign policy. Washington Dispatch Commerce Department data on personal consumption expenditures for March will be closely watched today by economists, government officials and politicians amid growing anxiety over persistent inflation that continues to haunt the US economy. A Bureau of Economic Analysis report yesterday showed that a measure of underlying inflation [advanced]( at a greater-than-expected 3.7% clip, the first quarterly acceleration in a year. That pushes a rate cut by the US Federal Reserve still further into 2024 or off the table altogether, and could even lead the central bank to consider another rate increase. [None of that]( is good news for Biden and his reelection campaign. Although most economists think the underlying momentum of the US economy remains robust, that has generated little enthusiasm for a second Biden administration. A Bloomberg News/Morning Consult poll of voters in seven battleground states this month showed that more than half expect the economy to be worse by the end of the year. And at least half of voters say they expect the inflation rate and borrowing costs to rise even higher than they are now. During his time in office, Biden helped enact a series of big and expensive measures intended to bolster American manufacturing, renew infrastructure and confront climate change. Those investments could accomplish those goals, but that won’t be known until well after the November election. One thing to watch today: The University of Michigan’s consumer sentiment index for April will be released. The index rose markedly toward the end of March, reaching the highest since mid-2021. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day China’s overseas investment is heading for an eight-year high as its dominant firms build more factories abroad, a shift that could [soften criticism of Beijing’s export drive](. Leading the push are businesses in industries where China is racing ahead of rivals, such as electric vehicles and solar energy. These investments may help temper trade tensions by creating jobs and economic growth in overseas markets. And Finally Soaring costs, safety concerns and noise complaints are strangling after-dark economies from London to Montreal as late-night bars, clubs and music venues close down. The eerie calm after midnight on a Saturday in Soho, one of London’s traditional [nighttime hotspots](, is hard to square with a recent post by the city’s mayor that Britain’s capital is “leading the world in its 24-hour policy.” Campaigners in London and other hubs from Berlin to Sydney are fighting back to revive the party spirit. The Montreal Completement Cirque festival in July. Photographer: Andrej Ivanov/AFP/Getty Images Pop quiz (no cheating!) Which government notified Apple of concerns that the company’s supply chain may be tainted by conflict minerals sourced from the country? Send your answers to balancepower@bloomberg.net. More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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