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The struggle for Congress

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Mon, Aug 9, 2021 10:24 AM

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Follow Us U.S. President Joe Biden is on the of securing Senate passage of a massive, bipartisan inf

[Bloomberg]( Follow Us [Get the newsletter]( U.S. President Joe Biden is on the [cusp]( of securing Senate passage of a massive, bipartisan infrastructure deal that has formed the cornerstone of his agenda. But that accomplishment might ultimately have more impact on the battle for control of Congress in next year’s midterm elections than it does on Biden’s legislative legacy. The fate of the $550 billion [package]( in the House — where Democrats, as in the Senate, have a slim majority — remains far from certain. Speaker Nancy Pelosi has said the chamber won’t take up the measure until the Senate also passes a more sweeping economic package that includes the remainder of Biden’s economic agenda and has drawn widespread Republican opposition. Meanwhile, the fact that 18 Republicans, including Minority Leader Mitch McConnell, [voted]( over the weekend to advance the infrastructure proposal — which former President Donald Trump’s wing of the party staunchly opposes — could have the effect of blunting Democrats’ claim of sole credit for it in the 2022 Senate and House campaigns. The package contains the most popular parts of Biden’s economic plan, meaning Republicans, particularly those campaigning in more moderate states, can now say they helped to pass those elements, while opposing other, more progressive parts of the president's program. For Democrats, there are benefits as well to how the debate is playing out. If they’re able to pass all of Biden’s economic agenda, candidates can cherry pick the pieces that will play best in their areas. And if they aren’t successful, they can always blame the Republicans. — [Kathleen Hunter]( The Hernando de Soto Bridge in Memphis, Tennessee, which temporarily closed in June after the discovery of a cracked and almost-severed steel beam. Photographer: Houston Cofield/Bloomberg Click [here]( to follow Bloomberg Politics on Twitter and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines Shaky deal | The Biden administration is facing the reality that a return to the Iran nuclear deal may no longer be [feasible]( as the Islamic Republic finds ways to cope with U.S. sanctions and races toward the capacity to build a bomb. Although it’s still calling for a quick reentry to the pact, Washington is willing to weigh alternatives, including providing limited sanctions relief if Iran freezes its most provocative proliferation work. Fighting back | U.S. military aircraft have been [hitting]( ground targets in Afghanistan in an effort to protect government allies, according to U.S. Central Command, as the Taliban makes rapid advances in the void left by withdrawing American and North Atlantic Treaty Organization troops. The Taliban said it would avenge U.S. airstrikes with “full strength.” Cracking down | China has [punished]( more than 30 government officials for failing to curb a Covid-19 outbreak that’s spawned nearly 900 symptomatic infections across the country in less than a month. People ranging from mayors and local health directors to the heads of hospitals and airports have been penalized for negligence and mishandling local outbreaks, the state-backed Global Times reported. The United Nations Intergovernmental Panel on Climate Change delivered its latest comprehensive report, which concluded that humans have [dumped]( enough greenhouse gases into the atmosphere to heat up the planet by 1.5°C — one of the limits set by the Paris Agreement — and atmospheric CO₂ is now at a two million-year peak. Best of Bloomberg Opinion - [How China’s Ping Pong Prowess Explains Its Economy: Tom Orlik]( - [Restoring Happiness in the U.S. Is No Small Task: Noah Smith]( - [Can Gardens Make Nations Richer?: Sarah Green Carmichael]( Slipping support | Polls for Germany’s Sept. 26 election suggest backing for Chancellor Angela Merkel’s Christian Democratic Union-led bloc is [stuttering](, hinting at the challenge for CDU leader Armin Laschet and his bid to replace her. While their conservative bloc is still ahead, a poll yesterday showed a possible majority for a three-way coalition of the Greens, the Social Democrats and Free Democrats. Rocky start | Just days in office, Peruvian President Pedro Castillo is already in [trouble](, having picked contentious ministers and alienated allies. Some observers suspect he may be deliberately picking a fight with congress, where his party is in a minority, to trigger new elections. Investors are worried. Bonds are faltering and the Peruvian sol is the worst-performing currency in the world since Castillo’s swearing in. What to Watch This Week - Iranian President Ebrahim Raisi [picked]( as his first vice president Mohammad Mokhber, who the U.S. sanctioned for running the nation’s wealthiest state-managed endowment. - The future of [embattled]( New York Governor Andrew Cuomo now is in the hands of state lawmakers who must decide if and how they want to force him out. - Alibaba [fired]( a manager accused of rape, moving to contain the fallout after an employee’s account of her ordeal went viral on social media and ignited fierce debate about rampant sexism across China’s tech industry. - Australians’ approval of Prime Minister Scott Morrison has [fallen]( to the lowest level since the pandemic began, with voters tiring of virus-induced lockdowns amid his government’s tardy vaccine rollout. - Troops from Mozambique and Rwanda have [captured]( the port town at the heart of a nearly four-year insurgency that has halted a $20 billion project by TotalEnergies. - Norwegian Cruise Line Holdings won a preliminary court injunction allowing it to [require]( proof of Covid-19 vaccination to board its ships in Florida, despite a recent state ban on such requirements. Thanks to the 80 people who answered our Friday quiz and congratulations to J. Michael White, who was the first to identify North Korea as the nation whose president appeared in public with a bandage on the back of his head, fueling speculation about his health. And finally ... As the curtain falls on Tokyo’s [Olympics](, delayed and curtailed by Covid-19, Japan’s athletes can chalk it up as a triumph, having won more gold medals than ever before, [Isabel Reynolds]( and [Yuko Takeo]( report. For Prime Minister Yoshihide Suga, it’s more of a letdown, unlikely to improve his chances in a looming general election or provide much of a boost to the economy. A woman takes a selfie in Tokyo. Photographer: Soichiro Koriyama/Bloomberg 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

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