Merkel bowing out, global divisions widen: Weekend Reads

[Bloomberg]( Follow Us [Get the newsletter]( Germans vote tomorrow in an election that will choose the successor to Chancellor Angela Merkel, whose departure after 16 years in office will leave very big shoes to [fill]( at home and across Europe. The race to replace her is surprisingly tight. A diplomatic crisis between the U.S., China and Canada came to a dramatic end as a top Huawei executive [flew]( home and Beijing freed two jailed Canadians. U.S. President Joe Biden met the leaders of Australia, India and Japan at the White House yesterday to [discuss]( initiatives to counter China’s influence across the Pacific. On the domestic front, Biden [called]( Democratic moderates and progressives to the Oval Office, as squabbling between the two wings of the party jeopardizes his economic agenda. In the U.K., Prime Minister Boris Johnson is facing the [prospect]( of a winter of discontent over tight energy supplies and supply-chain issues that have emptied supermarket shelves and stymied output across the economy. And in Sudan, the dream of a democratic future may be slipping away. Delve into these and more of Bloomberg’s best stories from the past seven days in this edition of Weekend Reads. — [Karl Maier]( Merkel at Marlow Bird Park on Thursday. Photographer: Georg Wendt/picture alliance via Getty Images Click [here]( for this week’s most compelling political image and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Germany’s Next Leader Faces Five Big Problems Left by Merkel Her remarkable run as Germany’s first female chancellor made Merkel the undisputed queen of Europe who outlasted enemies and allies alike at home and abroad. Yet as [Chris Reiter]( and [Sam Dodge]( write, the Germany she created is [running]( out of gas. - Merkel is on the campaign trail today to [boost]( support for her fellow Christian Democrat Armin Laschet, who’s seeking to replace her as chancellor. - Investors are ready to [embrace]( change, and a potential turn to the left, as long as it’s moderate. China Frees Canadians After Huawei CFO Flies Home, Ending Crisis Hours after Meng Wanzhou, Huawei’s chief financial officer, was released from house arrest in Canada following a deal with U.S. authorities to resolve criminal charges against her, China [freed]( Michael Kovrig and Michael Spavor. [Natalie Obiko Pearson]( and [Danielle Bochove]( explain how it all happened. China Shifts Balance of Power in $1.9 Trillion Crypto Industry Beijing’s crackdown on the crypto industry may have reached its apex yesterday. [Justina Lee]( reports on how China’s ban on all crypto transactions [cements]( a shift in the balance of power away from one of the countries that first embraced the digital currency world. - In the U.S., cryptocurrency companies are [scrambling]( to hire lobbyists as they face lawsuits or cease-and-desist orders from regulators. Biden Battles for Budget Deal Amid Democratic Infighting Five months after Biden unveiled his vision of a new American social contract, his administration is [struggling]( to unite congressional Democrats behind a bill that can pass in the face of united Republican opposition. [Nancy Cook]( and [Billy House]( outline the problems the president is facing. - Biden faces another border [crisis]( as members of his Democratic party harshly criticized the treatment of Haitians trying to cross into the U.S. from Mexico. In Biden’s Oval Office, Johnson’s Brexit Promise Slips Away Johnson [talked]( up a trade deal with the U.S. as one of the major prizes of his campaign for Brexit. But as he sat in the Oval Office on Tuesday, [Kitty Donaldson]( explains, it was clear the U.K. leader had little hope of delivering it. - It remains [uncertain]( whether the United Nations-backed COP26 climate summit Johnson hosts next month will succeed. “The world does not care for ‘America First’ or ‘America’s Back’,” Raisi said in his debut address to the UN General Assembly, [mocking]( slogans of former President Donald Trump and Biden. “We don’t trust the promises made by the U.S. government.” The French Won’t Forget Being Snubbed Over Submarines Officials in Paris are pondering potential retaliation for Australia’s move to drop a multibillion-dollar submarine contract with France as part of a new deal with the U.K. and U.S. [Flavia Krause-Jackson](, [Ania Nussbaum]( and [Kitty Donaldson]( report on how the plot was [hatched]( that cut France out of the push to develop more nuclear-powered submarines in the Pacific. - Hours after Johnson told France it’s time to get over its anger about the deal, Biden [offered]( an olive branch. Market Contagion Tests Xi Resolve on Evergrande, Property Curbs How far President Xi Jinping will go with his [crackdown]( on China’s real estate sector is a question that’s suddenly become an urgent one on trading desks around the world, [Sofia Horta e Costa]( writes. How the Child Care Crisis Became a Global Economic Fiasco Working women worldwide are facing a once-in-a-century [setback](, fueled by the Covid-19 pandemic. [Olivia Rockeman]( finds that the forces driving the purge are strikingly similar from country to country. China Slams Effeminate Men in Xi’s Mounting Push for Conformity Chinese officials are seeking to narrowly [define]( what — and who — is acceptable. The media regulator used the word “niangpao,” which roughly translates as “sissy men” and is a slur to bully gay men, to tell TV companies to “strictly control the selection of program actors and guests.” Vast Fortunes Will Be Made in Obscure Metals Behind Clean Power The shift from fossil fuels to clean energy will [accelerate]( demand for metals like lithium, cobalt and rare earths, a potential bonanza for investors. The transition could require as much as $173 trillion in energy supply and infrastructure investment over the next three decades, [Andrew Janes](, [David Stringer]( and [Adrian Leung]( report. Brine pools at the Albemarle Lithium mine in Calama, Chile, on July 20. Photographer: Cristobal Olivares/Bloomberg Coup Intrigue Is the Latest Threat to Sudan’s Democratic Dream Tensions between Sudan’s civilian politicians and army neared the breaking point after an alleged coup bid. [Simon Marks]( and [Mohammed Alamin]( outline what’s at [stake]( in a country seen as a rare bright spot in a region marked by dictatorship and conflict. Soaring Housing Inequality Is Now a Global Political Faultline People everywhere are being forced to [abandon]( all hope of owning a home because of soaring property prices, and democratic and authoritarian governments alike are struggling with the consequences. It’s not just for buyers — as [Alan Crawford]( explains — rents are soaring, too. Lucia Chalokian at her home in Buenos Aires, Argentina, where rent and bills take up about 40% of her income. Photographer: Erica Canepa/Bloomberg Exiled Thaksin Rallies Thai Protesters With Dubai Talk Show One of Thailand’s most polarizing figures is [rallying]( young pro-democracy protesters from 3,000 miles away. [Randy Thanthong-Knight]( reports that every second Tuesday former Prime Minister Thaksin Shinawatra, in exile following a corruption conviction, has appeared on an online talk show called “Care Talk” from Dubai with an audience of more than 100,000. And finally … The popularity of a new Universal Studios theme park in Beijing shows Hollywood’s enduring soft power among the nation’s 1.4 billion people. Demand for tickets to the grand opening underscores the [challenge]( Xi’s government faces in dampening the appetite for stars among the public, as the Communist Party looks to curtail foreign influences and promote the concept of “common prosperity.” Visitors at the entrance of the Universal Studios Beijing theme park on Monday. Photographer: Gilles Sabrie/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]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022