A silver lining

US Democrats finally have something to celebrate.President Joe Biden emerged from a prolonged period of isolation due to Covid-19 right as a [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( US Democrats finally have something to celebrate. President Joe Biden emerged from a prolonged period of isolation due to Covid-19 right as a massive $430 billion climate, energy and tax bill that was critical to his domestic agenda was passed by the Senate yesterday. His party was disciplined in just getting it done, showing the kind of unity that until now had eluded them. Key reading: - [Biden, Democrats Look for Midterm Boost From Breakthrough Bill]( - [Five States Risk Undoing Legitimacy of 2024 Election]( - [Winners and Losers in Democrats’ Signature Tax and Energy Bill]( - [The Most Americans Since 2008 Say Economy Is Getting Worse]( - [‘Sizzling’ US Jobs Data Make Case for Bigger Fed Rate Increases]( The result is a compromise and a shadow of Biden’s early ambition. It’s however an important political lesson that Democrats are learning as they gird themselves for the prospect of losing both houses of Congress in the November midterms. Looking ahead to a long summer of recess, they know gasoline prices are still too high and that Republicans will relentlessly hammer them on the economy. Yet the chances of a recession have receded after last week’s blowout jobs report showed unemployment plunging to 3.5% — the lowest in five decades. And last week’s results in Kansas — the nation’s first statewide referendum on abortion rights after Roe v. Wade was overturned in June — showed voters care deeply about the issue. That is something for Democrats to campaign on, and passionately so. The optimism doesn’t stop there. A deep dive by Bloomberg into efforts by Republicans to change how elections are run in response to former President Donald Trump’s conspiracy theories showed that they’ll fail to demonstrably alter the November ballot. The fear was that the GOP was going to be able to rig elections by changing the US voting system in their favor ahead of 2024. And that takes us back to Biden, who is facing what will start to feel like endless campaigning. His age (he is now 79) was an issue back in 2020 and is again now. The question of whether he should run — though he seems determined to — is an open one again. — [Flavia Krause-Jackson]( & [Michael Winfrey]( Senate Majority Leader Chuck Schumer at a press conference after the bill was passed. Photographer: Ting Shen/Bloomberg Click [here]( to sign up for The Readout with Allegra Stratton, your guide to the stories that matter for the UK. And share this newsletter with others. They can sign up [here](. Global Headlines Tensions persist | China’s military announced a new [exercise]( today “near Taiwan” as it keeps up pressure on the island beyond a series of drills announced immediately after US House Speaker Nancy Pelosi’s visit. The Defense Ministry in Taipei said Beijing is seeking to hurt Taiwan’s morale and affect regional safety. - Shipping in the Taiwan Strait shows signs of returning to normal, and experts say the penalties for not delivering cargo to customers on time may be [too costly]( to avoid the area. Rightist gain | The chances of a right-wing [landslide]( election victory in Italy significantly improved after a centrist party quit an alliance with the left-leaning Democrats. As a result, the rightist bloc led by Brothers of Italy may take two-thirds majorities in both houses of parliament in the ballot called after the collapse of Prime Minister Mario Draghi’s government. The UK economy probably [shrank]( for the first time since a coronavirus lockdown at the start of 2021, with gross domestic product for the second quarter contracting 0.2%, according to a survey of economists by Bloomberg News. The drop would mark a pause in the recovery from the pandemic and the start of a more protracted downturn, which the Bank of England expects to last into early 2024. Cutting back | Hong Kong will reduce the time people entering the city must spend in [hotel quarantine]( to three days from seven, a bolder-than-expected easing of its Covid-19 travel curbs. Even so, it leaves the Asian financial hub isolated in a world that’s mostly moved on from the pandemic. - Former Twitter CEO Jack Dorsey tweeted the words “[end the CCP](” over the weekend, a reference to China’s Communist Party after a CNN report about China’s strict virus measures. Best of Bloomberg Opinion - [Voters Want Compromise on Abortion: Sarah Green Carmichael]( - [Why Conservatives Went Cold on Rishi Sunak: Therese Raphael]( - [Amnesty’s Impartiality Benefits Putin: Clara Ferreira Marques]( Ceasing fire | Three days of violence between Israel and the Islamic Jihad that left 44 people dead in the Gaza Strip, including two senior militants and 15 children, ended late yesterday after [mediation]( by Egypt. Both Biden and United Nations Secretary-General Antonio Guterres welcomed the pause in hostilities. A fireball erupts after an Israeli air strike in Gaza City on Aug. 6. Photographer: Ashraf Amra/AFP/Getty Images Explainers you can use - [How the 15% US Minimum Corporate Tax Would Work]( - [How Russia’s Ukraine War Is Stoking Tension in Kosovo]( - [Ethiopia’s War Ended. Now There’s Hunger and Strife]( New era | Gustavo Petro was sworn in as Colombia’s first [leftist]( president yesterday, pledging to redistribute wealth and re-think the “failed” war on drugs. The ex-guerrilla assumes control of an economy with government debt near record levels, making it tough for him to meet promises of more education and welfare spending. The nation’s first Black vice president, Francia Marquez, also took office. Bloomberg TV and Radio will feature US Senator Tom Carper (D-DE) and Rep. Chuck Fleischmann (R-TN) today to discuss the Inflation Reduction Act on Balance of Power with [David Westin]( from 12 to 1 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - Liz Truss, the front-runner to succeed Boris Johnson as UK prime minister, plans to rush through [tax cuts]( to tackle a cost-of-living crisis, the Telegraph reported. - Argentina’s Economy Minister Sergio Massa announced a [shake-up]( of the country’s energy leadership yesterday, removing allies of Vice President Cristina Fernandez de Kirchner. - The French nuclear regulator granted a temporary [waiver]( for five nuclear plants to discharge hot water into rivers that may breach environmental standards as the nation struggles with an energy crisis. - Ukrainian President Volodymyr Zelenskiy said in an address late yesterday negotiations with Moscow won’t be an option if Russia [proceeds]( with plans to hold referendums in occupied territories. - South Africa’s army put 200 soldiers on standby in case they’re needed to help deal with increasing [incidents]( of unrest and violence, Timeslive reported. Thanks to the 41 people who answered Friday’s quiz and congratulations to Mond Mckenzie, who was the first to name South Korea as the nation whose leader decided not to interrupt his vacation to meet Pelosi during her visit to his country. And finally ... Despite the first shipments from Ukraine of grain since being invaded by Russia, many challenges remain before the millions of tons of food stuck in the country can be released. The biggest perhaps is the willingness of shipowners to send vessels into [harm’s way](, as the waters are littered with mines and Russia could repeat the attack against the port of Odesa it launched after the safe-passage agreement was signed. The cargo vessel Razoni sailing to Tripoli, Lebanon on Aug. 3. Photographer: Ozan Kose/AFP/Getty Images Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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