Trump’s reasons to fear

[Balance of Power]( From [Bloomberg Politics]( [FOLLOW US [Facebook Share]]( [Twitter Share]( [SUBSCRIBE [Subscribe]](  It's been 27 years since an incumbent U.S. president lost re-election, and judging by the health of the economy and other traditional metrics, Donald Trump looks unlikely to break the trend. In addition to presiding over sustained growth and low unemployment, Trump enjoys a nation at relative peace, a well-funded campaign and the strong backing of the Republican Party. And yet, as he prepares to formally kick off his 2020 re-election bid with a prime-time speech in Florida, he[has reason]( to be circumspect, [Shannon Pettypiece]( and [Mike Dorning]( report. Most private forecasters expect the [economy to slow]( entering the election year, as U.S. trade disputes threaten global commerce — hurting core voters like farmers — and the fiscal stimulus from Trump’s 2018 tax cut [fades](. Special Counsel Robert Mueller's investigation into election meddling by Russia, alongside other controversies that have dogged Trump's administration, are also potential liabilities. Trump trails six of his Democratic rivals in hypothetical head-to-head contests, a poll showed last week. And no president since 1952 has been re-elected with an approval rating below 48%. Trump has not exceeded 46% in Gallup polls since taking office. Much hinges on the Democrats. The question is whether they can select a challenger able to attract the funding and support in battleground states needed to deny Trump a second term. - [Kathleen Hunter]( Trump waves to supporters as he leaves a rally in Pennsylvania on May 20. Photographer: Brendan Smialowski/AFP/Getty Global Headlines [Iran under pressure]( | The Pentagon plans to send about 1,000 [more troops]( to the Middle East, even as Trump described as “very minor” the recent attacks on two tankers in the Gulf of Oman that the U.S. has blamed on Iran. The Pentagon also [released]( new photos and a timeline it said bolstered the case that Iran was behind the incidents. Tehran denies any involvement. - [Click here]( to read how Trump’s campaign vow to get the U.S. out of costly foreign entanglements is colliding with the messy reality of commitments in the Middle East. [Trade turmoil]( | The chairwoman of the world's biggest bicycle maker delivered an ominous message to China that its days as a global manufacturing hub may be numbered. Giant Manufacturing started rolling production of its U.S.-bound orders back home to Taiwan when Trump made his tariff threats last year, [Cindy Wang]( reports. Trump’s top trade envoy, Robert Lighthizer, is due to [appear before](Congress this week to account for the trade conflict. [Scottish dilemma]( | Scots didn’t vote for Brexit and neither did they elect the Conservatives. So the likelihood of a Brexiteer such as Boris Johnson winning the race to succeed Theresa May as Tory leader and prime minister is forcing some hard choices north of the border. As [Alan Crawford]( and [Rodney Jefferson]( report, the sense in Edinburgh is that another referendum on Scottish independence is now inevitable. - As the Conservative field narrows further today, [Alex Morales]( profiles [Rory Stewart](, the lesser-known candidate suddenly making waves. [Fall from grace]( | The holding company of the Brazilian construction and energy giant at the center of a massive Latin America [graft probe]( has filed for bankruptcy protection. Odebrecht has struggled since the “Carwash” investigation, which started in 2014 and brought the construction industry to a halt as access to government projects was cut and executives jailed. The political fallout is still[reverberating]( from Ecuador to Mexico, Peru and Brazil. [Waiting game]( | Democratic Republic of Congo President Felix Tshisekedi still hasn’t named a cabinet five months after taking office, leaving investors in the mineral-rich nation facing endless delays. After a disputed election, Tshisekedi’s protracted talks with his coalition partner have almost paralyzed a nation ranked by the World Bank as one of the most difficult and corrupt places to do business. What to Watch - Hong Kong leader Carrie Lam today [apologized for]( backing a bill to allow extraditions to China, as she seeks to defuse protests that have rocked the city. She declined to resign or withdraw the bill completely — key demands of protest leaders. - [Rights groups]( have urged a transparent probe into the death of Mohamed Mursi, the Muslim Brotherhood foot soldier who became Egypt’s first freely elected civilian president. He collapsed during a court hearing over an espionage case, with state-run media saying he suffered a “sudden heart attack.” - Chancellor Angela Merkel’s candidate [to head]( the European Commission — Manfred Weber, a German lawmaker in the European parliament — is struggling for momentum, which means she may need to instead focus on getting her preferred person into the European Central Bank’s top job. - U.S. Secretary of State Michael Pompeo meets today with European Union foreign policy chief Federica Mogherini in Washington. Mogherini said yesterday the EU will not support Jared Kushner's Middle East peace plan without a two-state solution included. [And finally](...You used to catch only rare glimpses of them in public — a waiter willing to risk jail time might accept them for the right price, street hawkers making offers for them under their breath. Today, U.S. greenbacks are widely used in Venezuela's supermarkets and bodegas. As [Andrew Rosati]( reports, with the bolivar devalued into irrelevance by Nicolas Maduro's regime, the cash printed by the gringos he rails against is king.  A man counts bolivars in Caracas. Photographer: Luis Robayo/AFP/Gettty Images   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