Fighting among themselves

[Bloomberg]( Follow Us //link.mail.bloombergbusiness.com/click/21043190.73504/aHR0cHM6Ly90d2l0dGVyLmNvbS9icG9saXRpY3M/582c8673566a94262a8b49bdBf3b2f036 [Get the newsletter]( When it comes to how best to ease the effects of the U.S. economic crash ahead of the Nov. 3 election, Republicans aren’t just at odds with Democrats. They’re fighting among themselves. Fiscal conservatives concerned about adding to the federal deficit are attempting [to put the brakes]( on another round of [trillion-dollar spending](, reasserting themselves despite pressure from Senate Majority Leader Mitch McConnell and the White House. The federal debt has swelled by a staggering $6.6 trillion since President Donald Trump took office in 2017 after he signed a major GOP tax cut and went along with a series of spending hikes. That runs counter to the Republican orthodoxy of the past. One of the most vocal critics has been Senator Ted Cruz, the runner up for the Republican nomination four years ago. It’s a sign that he and other objectors could be looking ahead to the possibility of mounting 2024 presidential campaigns based on fiscal discipline. Trump is set today to visit Cruz’s home state of Texas, a traditional Republican bastion that has become increasingly competitive for Democrats. Given the president’s penchant for feuds, it’ll be worth watching whether he attempts to reignite his [grudge match]( with his 2016 rival. As [Steven T. Dennis]( reports, the [intra-party split]( couldn’t be coming at a worse time for Republicans. Trump’s approval rating has dropped and independent election analysts are now giving better odds of Democrats taking the Senate and expanding their control of the House in November. — [Kathleen Hunter]( Senate Democratic leader Chuck Schumer holds a copy of the New York Daily News during a press conference in Washington yesterday. Photographer: Stefani Reynolds/Bloomberg Pro-Russian actors are intensifying [fake news campaigns]( ahead of the U.S. election, stoking concerns of a repeat of the large-scale interference that disrupted the 2016 ballot, says cybersecurity firm FireEye Inc. Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines [Merkel’s succession]( | The Wirecard scandal is emerging as a significant factor in the battle to control Germany after Chancellor Angela Merkel steps down. Finance Minister Olaf Scholz of the Social Democrats is in pole position to lead his party into next year’s election, but he’s under fire for the government’s failure to heed warnings about the fintech payment company’s books. He’ll face questions from lawmakers at the finance committee this afternoon. [Tech showdown]( | The chief executives of Amazon, Facebook, Google parent Alphabet and Apple [testify virtually]( before a U.S. congressional panel today in the highest-profile face-off yet between the captains of tech industry and lawmakers over allegations that they unfairly dominate the market. All are facing [federal antitrust investigations]( and a House probe that will likely end with recommendations to change competition laws. [Deadly coalition]( | An alliance of militant groups aimed at destabilizing peace in South Asia is emerging in Afghanistan as U.S. troops pull out of the war-ravaged nation. Pakistan-based Lashkar-e-Taiba and Jaish-e-Mohammed, as well as the Afghan Taliban and Islamic State-Khorasan have already carried out raids on Indian sites in Kabul and also attacked a Sikh temple in the city, and security officials warn there’s more violence to come. Still, a three-day ceasefire for the upcoming Eid al-Adha festival should provide some respite. [Virus dilemma]( | Hong Kong is going its own way as it grapples with its worst Covid-19 outbreak to date. Its unique makeup makes a full lockdown all but impossible, and Hong Kong, unlike other international hubs, has hesitated to mandate stay-at-home orders or close nonessential business. Instead, restrictions in the densely packed city — where thousands live in communal-style housing — are getting incrementally stricter, going against what’s been proven to work to stem the virus. Customers at a wet market in Hong Kong’s Sham Shui Po district on July 24. Photographer: Chan Long Hei/Bloomberg [Simmering resentment]( | Before the coronavirus epidemic, Algeria was already home to peaceful weekly protests against a political system rife with cronyism and a deteriorating oil-dependent economy. While the North African country has defied many expectations of public disorder, observers say pro-democracy rallies will resume with renewed vigor once the health crisis subsides. The authorities appear uncertain how to respond to anger that won’t go away. What to Watch - Joe Biden [says he’ll reveal]( his vice presidential running mate in “the first week of August,” while Democrats [notched two victories]( in lawsuits aimed at making it easier to vote by mail during the pandemic. - Yemen’s internationally recognized government and southern separatists agreed on a Saudi proposal to implement a [peace deal]( aimed at closing one front in the five-year conflict. - Sydney has been declared a [coronavirus hotspot](, with the northern Queensland state announcing it will close its borders Saturday to all visitors from Australia’s most-populous city. [And finally]( ... Islam’s annual hajj pilgrimage starting today will be unlike any other, with Saudi Arabia downsizing the ritual due to the pandemic, testing visitors and cutting their numbers from the usual 2 million to around 1,000. As [Vivian Nereim]( and [Reema Alothman]( report, they’ll get sterilized pebbles to throw at pillars symbolizing the devil, drink holy water from single-use bottles and — instead of jostling shoulder to shoulder — will circle Mecca’s grand mosque with 1.5 meters of space between them. Social distancing markers surround the Kaaba, Islam’s holiest shrine, at the center of the Grand Mosque in Mecca, on July 28, ahead of the annual Hajj pilgrimage. Photographer: AFP via Getty Images   Like Balance of Power? | [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.  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