Europe is facing a difficult summer, politically and economically [View in browser](
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Not even the deaths of hundreds of desperate refugees in the Mediterranean Sea could make European Union leaders reach agreement on migration policy. Meeting in Brussels overnight, they tried, and again failed, to forge a united stance on how to handle people arriving from the Middle East and Africa, with the nationalist leaders of Poland and Hungary once more blocking any deal. Key Reading:
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[UK Annual House Prices Fall Most Since 2009, Nationwide Says]( As the summit stretched into the early hours, riots engulfed France for a third successive night, posing a serious challenge to President Emmanuel Macron and reviving his confrontation with anti-immigration leader Marine Le Pen. In Germany, the far-right AfD party is testing new records in the polls amid widespread disaffection with Social Democratic Chancellor Olaf Scholzâs government. The solidarity of less than a year ago when his coalition navigated an existential crisis caused by disengaging from Russia is forgotten. True, Vladimir Putinâs invasion of Ukraine has brought about a unity of sorts, with EU capitals mostly supplying Kyiv with aid and weaponry to defend against the Russian attack. But itâs hard to escape the sense that Europe is flagging this summer, politically and economically. President Joe Bidenâs industrial policy, with its billions in subsidies to encourage manufacturing in America while keeping ahead of China, is unsettling the continent even as it is compelled to respond. US competition with Beijing is sweeping everything in its path, and Europe seems impotent by comparison: Look at chip equipment champion ASML, which has been pressured by the US into denying even more machines to China. Spainâs in limbo ahead of elections; the UKâs woes would take a book to explain. Letâs not even talk about Hungaryâs warm ties with Russia or political instability across the EUâs eastern flank. Yes, Europe has been written off countless times before. But right now it looks awfully jaded and in need of a reboot. â [Alan Crawford]( Fireworks are launched at riot police in Nanterre, France. Photographer: Aurelien Morissard/AP Photo Check out the latest [Washington Edition newsletter](. You can [sign up]( to get it in your inbox every weekday. And if you are enjoying this newsletter, sign up [here](. Global Headlines Chief Justice John Roberts has at times tried to blunt the US Supreme Courtâs conservative shift, but he [firmly backed]( the ruling yesterday abolishing racial preferences in college admissions. âEliminating racial discrimination means eliminating all of it,â Roberts wrote in his 40-page opinion for the court. The ruling could mean fewer Black and Hispanic students at the countryâs top universities and force hundreds of schools to revamp their admissions policies. - Biden said the [courtâs legitimacy]( is being called into doubt, but said he still opposes expanding the bench or other large-scale reforms.
- The courtâs two Black justices [sparred over]( the meaning and impact of race in dueling opinions on the decision. Chinaâs economy was supposed to roar back this year after it was freed from the worldâs strictest Covid-19 controls, but that hasnât happened. Instead, itâs facing sluggish consumer spending, a crisis-ridden property market, flagging exports, record youth unemployment and towering local government debt. And President Xi Jinpingâs government doesnât [have great options]( to fix things. - The Netherlands published [new export controls]( that will restrict more of ASML Holding NVâs chipmaking machines from being sent to China. Russia has [tightened its hold]( on the worldâs wheat supplies following its invasion of Ukraine, bolstering its role in global food supply to secure political support and hard currency. With Russiaâs internal politics in disarray after an aborted armed mutiny and its international standing damaged by the war, grain remains a major source of influence. The Russian publicâs [support for peace talks]( with Ukraine has grown since Wagner mercenary leader Yevgeny Prigozhinâs revolt, according to a new opinion poll from the independent Levada Center. The share of respondents backing negotiations increased by eight percentage points to 53% from a month earlier. The Kremlin says Ukraine is unwilling to negotiate, while Kyiv says it wonât consider talks until Russian troops leave its territory. - Ukrainian President Volodymyr Zelenskiy [decried the âecocideâ]( associated with Russiaâs invasion, especially this monthâs destruction of the Kakhovka dam. Best of Bloomberg Opinion - [Diversity on Campus Is as Important as Ever: Michael Bloomberg](
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- [Army of Workers Needed to Curb Reliance on China: Lionel Laurent]( Call it the New New South. About 2.2 million people in the US moved to the Southeast in just over two years, [helping steer about $100 billion]( in new income to the region in 2020 and 2021 alone. The area is now contributing more to the national economy than the Northeast, with its Washington-New York-Boston corridor. As Michael Sasso and Alexandre Tanzi write, the population shift also means more congressional seats and political power on the national scene. Explainers You Can Use - [How Race in College Admissions Became a US Flashpoint](
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- [The Next Big Climate Startup Trend: Carbon Removal Auditors]( As Brazil accelerates its transition to renewable energy, Peter Millard reports from northeastern Brazilâs Serra da Babilonia, or Hills of Babylon, on how the countryâs green hydrogen economy is [getting off the ground](. Wind and solar capacity grew 260% from 2017 through 2022, and it continues to surge thanks to projects like those in Babilonia. Tune in to Bloomberg TVâs Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - Climate Minister Zac Goldsmith quit Rishi Sunakâs UK government today with an [excoriating broadside]( against the prime ministerâs environmental credentials.
- China dispatched a senior diplomat to Italy this week, as Beijing seeks to persuade the European nation not to leave Xiâs flagship [Belt and Road project](.
- A man who took part in the Jan. 6 attack on the US Capitol was [arrested]( last night in the Washington neighborhood where former President Barack Obama lives, according to NBC News.
- The Biden administrationâs top negotiator with Iran said his US security clearance is [under review]( and heâll remain on leave until the investigation is complete.
- Pakistan clinched [initial approval]( from the International Monetary Fund for a $3 billion loan program, lowering the risk of a sovereign default. Pop quiz (no cheating!) Which countryâs citizens became a year younger this week when it joined international standards by no longer counting newborns as one year old? Send your answers to balancepower@bloomberg.net. And finally ... The EUâs new rules that ensure commodities including cocoa, coffee and palm oil [arenât grown on deforested land]( are earning support from big chocolate companies, though consumers may have to pay more. Firms like Lindt & Spruengli, Ferrero and Unilever say they back the move because it looks after the environment and those who grow the crops. A worker cuts down cocoa pods on a farm in Azaguie, Ivory Coast, on Nov. 18, 2022. Photographer: Andrew Caballero-Reynolds/Bloomberg Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox.
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