Macron’s gambit

French president gambles on stopping far-right surge [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Desperate or cunning? Emmanuel Macron is literally betting the house after getting crushed by Marine Le Pen’s nationalist far right in European parliamentary elections. No stranger to political gambles, the French president [caught everyone off guard]( by calling a snap legislative vote that coincides with him playing host to the Summer Olympics. He’s only got three years left as president, and he’s failed to make the country Le Pen-proof. Is the plan to give voters a taste of what Le Pen will be like — if she wins big again she could well impose her protege Jordan Bardella as prime minister — with a view that they will come to their senses and vote differently at the presidential election come 2027? Either way it speaks to Macron’s instincts not to take things lying down. Belgium’s Alexander De Croo responded to defeat by resigning. In Germany, Olaf Scholz’s Social Democrats and his [progressive coalition partners were trounced](, leaving the battered chancellor to pick up the pieces. WATCH: Bloomberg’s Stephen Carroll reports on the fallout from the elections. Source: Bloomberg Given the headlines were dominated by the surge of the far right, it may come as a surprise that overall the pro-European center just about held. That means Ursula von der Leyen remains on track to stay for another five-year term as president of the European Commission though likely needing to make a lot more concessions, on green policies and immigration. The [biggest winner of the night?]( Italy’s Giorgia Meloni, who has now effortlessly established herself at the head of the table, equally at ease negotiating with Hungarian troublemaker Viktor Orban or horse-trading for influential positions in the European Union’s executive arm. She will preside over the Group of Seven this week in Apulia, just about the only leader who isn’t a lame duck. In record time she’s managed the transition from far right to mainstream that has eluded Le Pen for years.— [Flavia Krause-Jackson]( Le Pen casts her ballot in Henin-Beaumont. Photographer: Francois Lo Presti/AFP/Getty Images Global Must Reads The resignation of Benny Gantz from Israel’s emergency government over Prime Minister Benjamin Netanyahu’s handling of the war against Hamas won’t cause the ruling coalition to collapse. But the departure of the former general deprives the administration of a moderate voice and leaves [the premier more reliant]( on his right-wing coalition partners. Secretary of State Antony Blinken is expected to meet President Abdel Fattah El-Sisi in Egypt today as the US attempts to [push a last-ditch cease-fire proposal]( so far brushed off by both Israel and Hamas. The trip comes after Israel freed four hostages in a large-scale operation that has again put the region on edge. While Israel said its forces killed around 100 people, the Hamas-run health ministry in Gaza said the death toll exceeded 270. Israelis protest against the government on Saturday and call for the release of hostages. Photographer: Kobi Wolf/Bloomberg Russia’s army has made only limited battlefield gains in recent months against Ukrainian troops starved of weapons and ammunition. With Kyiv now taking delivery of billions of dollars in fresh arms from its US and European allies, the window for a Russian breakthrough [is narrowing](. That’s as the Kremlin has forced thousands of [migrants and foreign students]( to fight alongside Russian troops in Ukraine, according to European assessments. Rishi Sunak’s chances of remaining UK prime minister after the July 4 election appear to be dwindling after he was forced to apologize for leaving early from events in France to mark the 80th anniversary of D-Day. Now the governing Conservatives are worried they will lose not only to the opposition Labour Party but may be surpassed by [Reform UK led by Nigel Farage](, an architect of Britain’s departure from the EU. The sister of North Korean leader Kim Jong Un warned of reprisals against South Korea after it resumed loudspeaker broadcasts for the first time in years, signaling [an escalation of tensions]( along one of the world’s most militarized borders. Kim Yo Jong said there could be a “new counteraction” due to the loudspeakers and activist groups sending leaflets across the border that criticize the Kim family’s rule. Russian President Vladimir Putin is set to visit North Korea and Vietnam soon, [taking rare trips]( to Moscow’s traditional security partners as he seeks help for his grinding war on Ukraine. Mexican President-elect Claudia Sheinbaum’s coalition obtained two-thirds of the seats in the lower house and almost as many in the senate, [just shy of the supermajority]( needed to change the constitution. The surprise winning party in Thailand’s general election last year said it will [“fight tooth and nail”]( against a move to disband it, citing improper procedures by the Election Commission. Niger said five of its oil workers employed by the local affiliate of China National Petroleum Corp. are being held in Benin, [deepening a spat]( between the two African nations over the export of crude. Washington Dispatch Although Nevada has not voted for a Republican presidential candidate since George W. Bush in 2004, many state polls show Donald Trump with a lead over the Democratic incumbent, Joe Biden. To sweeten the pot, Trump vowed during a rally in Las Vegas yesterday to [eliminate taxes on tipped earnings]( for hospitality workers if he wins in November. The pledge seemed designed to appeal to Nevada’s booming service industry dominated by young workers and people of color — two voter groups Republicans are trying to sway. The influential Culinary Union scoffed at Trump’s latest tax-cut proposal. While relief is needed for tip earners, there’s a “difference between real solutions and wild campaign promises from a convicted felon,” Secretary-Treasurer Ted Pappageorge said in a statement. The rally marked Trump’s first since his conviction in a Manhattan criminal trial late last month. One person to watch today: Trump will [submit to an interview]( with a New York City probation officer following the guilty verdict. [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 Southern European nations such as Greece, Spain and Portugal, once seen as economic basket cases, are starting to strut a bit after years of slogging through a brutal crisis and deep recessions. They’ve become [the region’s outperformers,]( growing at rates twice the euro-area average and far in excess of many of their neighbors. And Finally Yvette Alta Raphael isn’t old, but she grapples with brittle bones, aching knees and vertigo so severe she’s had to stop driving. The 49-year-old entrepreneur is part of a generation of South Africans who have [lived with HIV for decades]( and are now aging with the virus after revolutionary drugs turned a death sentence into a chronic ailment. As they grow old, the cost of care is snowballing and millions are wondering what’s in store for them after inconclusive elections and uncertainty over a health-care system already wrestling with the world’s largest HIV epidemic. Yvette Alta Raphael at her store in Thembisa in May. Photographer: Leon Sadiki/Bloomberg Thanks to the 24 people who answered the Friday quiz and congratulations to Mond Mckenzie, who was the first to identify King Philippe of Belgium as the royal who inaugurated a project to produce green hydrogen in Namibia. 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. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](