Abe humbled in Japan

[Balance of Power]( From [Bloomberg Politics]( [FOLLOW US [Facebook Share]]([Twitter Share]( [SUBSCRIBE [Subscribe]](  Shinzo Abe's premiership once seemed to be in cruise control. Now, Japan's prime minister is rethinking his agenda after his worst defeat since coming to power almost five years ago. Abe’s Liberal Democratic Party was humiliated in yesterday's Tokyo's assembly elections by a new populist insurgency led by city Governor Yuriko Koike. To make matters worse, she only defected from Abe's LDP last month. The prime minister’s popularity was already sliding, hit by a spate of scandals involving himself and his government. The Tokyo outcome could see him reappraise his program, particularly a plan for controversial revisions to the country's pacifist constitution. He may also need to open the fiscal taps and shelve an unpopular sales-tax hike. Before, Abe was on track to become Japan’s longest-serving post-war premier. Now, his opponents control Tokyo and rivals may well decide to contest him for the party's leadership before national elections, which are due by the end of 2018. Much more bad news and Abe’s dream of presiding over Tokyo's Olympic Games in 2020 could be in tatters. Koike smiles during an interview with TV networks on July 2, 2017. Photographer: Kyodo News/Kyodo News Stills Global Headlines [U.S.-China ties fray]( | President Xi Jinping complained in a call with U.S. President Donald Trump that “negative elements” are affecting ties after a series of U.S. moves signaled the early honeymoon between the two leaders was ending. The call was initiated by the American president as he tries to jump-start talks on trade and North Korea, which are sure to be two major topics at this week's Group of 20 summit in Hamburg. [Trump’s CNN slam]( | It's hard to believe relations between Trump and CNN could get any worse but Trump took it to a new level Sunday. 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