Fighting while talking

[Bloomberg]( Follow Us //link.mail.bloombergbusiness.com/click/18344616.60922/aHR0cHM6Ly90d2l0dGVyLmNvbS9icG9saXRpY3M/582c8673566a94262a8b49bdBc2b2cb1e [Get the newsletter]( For the U.S. and China, fighting while talking is becoming normal. And Donald Trump and Xi Jinping both are signaling they won’t let ongoing tensions get in the way of a trade deal. The latest flare-up came after the U.S. House [unanimously passed]( a package of measures yesterday to support protesters in Hong Kong, including a bill that would provide for sanctions against Chinese officials. Beijing reacted with the [usual thunder](, threatening “strong” — but unspecified — countermeasures if the legislation’s enacted into law (it’s unclear if Trump would sign it). The lack of detail was telling. Beijing has in recent weeks issued similar warnings over U.S. moves to blacklist Chinese tech firms and sell weapons to Taiwan, without following through. And Xi likely knew the Hong Kong bill would pass when he sent his top trade envoy to Washington last week to advance talks with Trump. That’s because Xi, like Trump, needs to get some sort of result to keep the economy on track and prove this costly trade war was worth it. At the same time, neither side can afford to look weak in the face of rising nationalism at home. So the hits may keep coming, but the trade talks will grind on. — [Brendan Scott]( Demonstrators wave American flags during an Oct.14 rally in support of the U.S. House legislation. Hong Kong Chief Executive Carrie Lam was forced to deliver her annual policy address by video link after disruptions from pro-democracy lawmakers. She warned of an “unprecedented challenge” to the economy [while unveiling measures]( to bolster growth as she seeks to stem [months of violent protests.](Photographer: Chan Long Hei/Bloomberg Global Headlines [Mano a mano]( | Joe Biden and Elizabeth Warren, [the front-runners]( in the 2020 Democratic race, confronted each other near the end of last night’s presidential debate in Ohio over how much and how fast the U.S. can change. The clash encapsulated the main choice in the contest to challenge Trump: whether voters want a Biden-like candidate who aims to build on the party’s past successes or one like Warren pushing for bold changes that are sure to spark tough partisan fights. - Click [here for seven key takeaways]( from the debate. - Bernie Sanders, meanwhile, [secured two endorsements]( from high-profile Democratic freshmen — New York’s Alexandria Ocasio-Cortez and Minnesota’s Ilhan Omar — giving him a star-powered boost ahead of a rally in New York this weekend. [Brexit drama]( | That was quick. Last night, the prospect of the European Union and the U.K. finally reaching a deal to part ways was looking good. This morning, the parties are again at risk of failure. The biggest obstacle is Prime Minister Boris Johnson's Northern Irish unionist ally. He has no majority in Parliament, so he needs their support for any deal. EU leaders gather in Brussels tomorrow, where a breakthrough is possible. [Turkey tensions]( | Turkish markets [slumped after the]( U.S. announced a criminal case against Halkbank — one of the country’s largest — for aiding a scheme to evade sanctions against Iran. It follows U.S. penalties against its NATO ally for its [military offensive]( against the Kurds in Syria. President Recep Tayyip Erdogan has rejected the [White House’s demand]( for a cease-fire in Syria but signaled a compromise over key border towns he wants to wrest from Kurdish control. - While Europe has avoided major sanctions against Turkey for its actions in Syria, that doesn’t mean it lacks the clout to act. [This chart shows how.]( [Close call]( | Prime Minister Justin Trudeau is fighting for his political survival in Canada, with energy and the environment set to be key issues for Monday’s election. As [Kevin Orland]( and [Natalie Obiko Pearson]( report, the ballot is a referendum on a dispute central to the country’s identity: Is Canada a global oil superpower or a leader in fighting climate change? - [Click here]( for a handy guide to the vote — the contenders, the potential kingmakers and the main flashpoints. - [And here]( for a look at how the parliament could end up in gridlock post-election. [Catalan chaos]( | Protesters attacked government buildings and clashed with police a day after Spain’s Supreme Court handed down lengthy jail sentences to Catalan separatist leaders. The violence is putting Prime Minister Pedro Sanchez under pressure to enact a national-security law to restore order before a Nov. 10 election campaign that will call voters back to the polling booths for a fourth time in as many years. What to Watch - Michael McKinley, who recently resigned as a senior adviser to U.S. Secretary of State Michael Pompeo, [is the latest]( former Trump administration official scheduled to speak to House impeachment investigators. - Less than two weeks before Argentina’s presidential election, the lack of reputable opinion polls illustrates the [growing belief]( that Alberto Fernandez has already beaten President Mauricio Macri. - South Africa’s state-owned power utility began a series of [rolling blackouts]( today as the government prepares to announce plans to restructure Eskom later this month. [And finally]( ... In making it to the Word Series, The Washington Nationals brought the U.S. capital together in a way generations of politicians couldn’t. The ballpark was a cauldron of yelling, delirious fans as the baseball team defeated the St. Louis Cardinals 7-4 to advance to the championship yesterday. It's been a long wait for Washington fans: The city's only World Series crown came nearly a century ago when the Senators beat the Giants in 1924. Players in Washington’s political dramas are enjoying a prolonged season for the summer game — and a chance to focus on something other than deficits, procedural votes and an impeachment inquiry. Photographer: Alex Trautwig/MLB  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](. Download the Bloomberg app: It’s available [for iOS]( and [Android](. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](.  You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022