Saudi Arabia under scrutiny

[Balance of Power]( From [Bloomberg Politics]( [FOLLOW US [Facebook Share]]( [Twitter Share]( [SUBSCRIBE [Subscribe]](  The disappearance of Jamal Khashoggi, a Saudi journalist critical of his country’s leadership, has evoked unusual [alarm]( in the Gulf kingdom’s most important ally. President Donald Trump, who has cultivated a close relationship with the Saudi royal family even as he’s lamented high oil prices, said yesterday he was “very concerned” about reports Khashoggi may have been murdered after entering the Saudi consulate in Istanbul on Oct. 2 to obtain paperwork he needed to remarry. Vice President Mike Pence went further, [saying]( if the claims were true “this is a tragic day” and “the free world deserves answers.” Several U.S. lawmakers – in a rare threat against a key Middle East partner – warned Saudi Arabia could face economic consequences if it killed Khashoggi, a contributor to the Washington Post who has lived in voluntary exile for a year. The Saudi government has vehemently denied abducting or killing Khashoggi, saying he left the consulate shortly after entering. Turkish President Recep Tayyip Erdogan has demanded proof, while sounding relatively restrained so far on how Turkey might proceed from here. If evidence does implicate the Saudi government in Khashoggi’s disappearance, it would mark a sharp escalation in how far authorities are willing to go to silence criticism. The first casualty would be the kingdom’s already fraught relationship with Turkey. But the damage could spread much further. - [Glen Carey]( The Saudi consulate in Istanbul two days ago. Photographer: YASIN AKGUL/AFP/Getty Images Global Headlines [Costs of trade war]( | The International Monetary Fund said the world economy is plateauing as it cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets. 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But Prime Minister Scott Morrison said he couldn’t understand the outrage, describing the Jorn Utzon-designed performing arts center as “the biggest billboard Sydney has.” Photographer: Brendon Thorne   Like Balance of Power? [Subscribe]( to Bloomberg All Access and get much, much more. You'll receive our unmatched global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close.   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to [sign up here](.  [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022