Murder in Ecuador shakes Latin American politics: Weekend Reads

Dig into some of Bloomberg’s best stories in this edition of Weekend Reads [View in browser]( [Bloomberg]( Troops deployed across Ecuador to enforce a state of emergency after [the assassination]( of anti-corruption presidential candidate Fernando Villavicencio shocked the nation less than two weeks before the election. President Joe Biden [imposed limits]( on US investments in China to restrict the country’s ability to develop next-generation military and surveillance technologies that might threaten US national security, blasting the world’s second largest economy as being run by “bad folks.” Officials raised the death toll from [devastating wildfires]( on the Hawaiian island of Maui to 80. Rescue and clean-up crews are digging through ash and rubble in what the governor described as the state’s largest-ever natural disaster. Meanwhile, Italy’s right-wing government backtracked on part of its new windfall tax on banks, saying it would limit the impact as it tries to calm an investor stampede that [wiped out]( $10 billion from lenders’ market value. Dig into these and more of our best stories in this edition of Weekend Reads. — [Michael Winfrey]( The hall of historic Waiola Church in flames, in Lahaina on Aug. 8. Photographer: Matthew Thayer/The Maui News [Sign up]( for the India Edition newsletter for an insider’s guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise, delivered weekly. And if you are enjoying this newsletter, sign up [here](. Murder, Cocaine and Tears: Ecuador Confronts a Perilous Descent Villavicencio’s killing has thrust unwanted global attention on Ecuador’s descent toward becoming a [violent narco state](. Stephan Kueffner and Marcelo Rochabrun report on the most savage act of political violence there since a military dictatorship ended in the 1970s. Ecuador Became One of World’s Most Violent Nations Overnight Ecuador’s homicide rate [quadrupled]( from 5.8 per 100,000 people in 2018 to 26.7 last year, according to data from the Igarape Institute, a think tank in Rio de Janeiro. The sharp increase has made the once-tranquil country as deadly as Mexico and Colombia. Biden Fears China Economy Is ‘Ticking Time Bomb’ in Fresh Barb Biden blasted China’s economic problems as a “[ticking time bomb](” in some of his most direct comments yet against President Xi Jinping’s government. As Justin Sink reports, he made the comments even as his administration is seeking to improve overall ties with Beijing. New US Rule on China Investments Creates ‘Agony’ of Ambiguity Washington insiders hoped Biden’s long-awaited restrictions on investment in China would make clear what was allowed and what was out of bounds. Instead, they got more [questions than answers]( as his administration sought to balance demands from hawks focused on national security and investors seeking to avoid disruption. Investors Visiting China Find Officials Fearful of Upsetting Xi Taking the pulse of China’s $18 trillion economy is getting tougher. Bankers, economists and businesspeople, returning after the pandemic, say once-familiar officials are now [fearful of breaching]( newly broadened anti-espionage laws as Xi grows more wary of the US. Hawaii Wildfires Become More Frequent as Drought Withers Grass Wildfires in Hawaii used to be rare and small, kept in check by rainfall. But extreme weather and invasive grasses mean blazes are getting more frequent and [more dangerous](. David R. Baker explains that researchers blame drought, hurricane winds and the spread of non-native grasses that, when dry, make excellent fuel. Hunter Biden Saga to Drag Into 2024 as Special Counsel Steps In The US Justice Department made the prosecutor investigating his son a special counsel, ensuring [Hunter Biden’s legal issues]( will remain front and center in the 2024 election. As Jordan Fabian explains, Delaware US Attorney David Weiss will have broad powers to investigate, including into Hunter Biden’s involvements with companies in Ukraine and China. Gen Z workers in the UK are increasingly searching for [less stressful jobs]( that still pay a reasonable salary as they prioritize their work-life balance over a hustle culture that previous generations embraced. Job website Adzuna said interest is increasing in what are typically junior jobs where people can easily achieve a work-life blend while earning about $45,000 a year. After Nigel Farage, British Firms Brace for the Culture Wars British consumer brands are [facing scrutiny]( for their efforts to cater to their increasingly socially conscious customers. As Dasha Afanasieva explains, coffee chain Costa and shoemaker Dr. Martens have found themselves targeted in the backlash against so-called woke capitalism, and UK officials have warned companies to stay out of political debates. Robots to Recycled Vapes: Ukraine’s War Effort Gets Inventive Since Russia’s invasion, Ukraine’s resilience with the help of NATO weaponry has come to define the war. Less noticed is a cottage industry of [battlefield gadgetry]( that’s starting to bear fruit, with a government incubator producing 186 forms of military innovation, Marc Champion and Olesia Safranova write. Volunteers build Power Kit power banks for the Ukrainian military using lithium batteries from used e-cigarettes in Kyiv, on July 1. Photographer: Pete Kiehart/Bloomberg Best of Bloomberg Opinion This Week - [Maui Wildfires Show Climate Change’s Ugly Reach: Mark Gongloff]( - [What Happens in Antarctica Doesn’t Stay There: Lara Williams]( - [Sunak Isn’t Playing Nice Conservative Anymore: Martin Ivens]( - [Niger Coup Is Another Gain for Putin in Africa: Andreas Kluth]( - [Italy’s Windfall Bank Tax Fails Its Stress Test: Marcus Ashworth]( Meloni-Style Capitalism for Italy Means She Runs Companies Too Italian Premier Giorgia Meloni’s [activism in corporate affairs]( is becoming a signature trait, with her version of capitalism crystallizing into a very hands-on government approach. As Alessandra Migliaccio reports, wielding power now means steering Italy’s biggest businesses too. Netanyahu Seeks to Change How Judges Are Named, Then Stop Revamp Prime Minister Benjamin Netanyahu said he won’t pursue the full judicial overhaul originally planned by his government that has triggered the biggest [anti-government protests]( in Israel’s history. Francine Lacqua and Ethan Bronner explain that, in an interview, he sought to project an image of a leader who remains above the political fray. Modi Briefly Addresses Manipur Violence in Over Two-Hour Speech Indian Prime Minister Narendra Modi blamed the main opposition party’s politics for [ethnic clashes]( that have killed more than 150 people and displaced 50,000. Bibhudatta Pradhan and Debjit Chakraborty write how the violence led to a failed no confidence vote against his government, and his opponents say Modi is failing to calm the violence. Women demonstrate in Manipur on Aug. 9. Photographer: AFP/Getty Images Explainers You Can Use - [What a Candidate’s Assassination Means for Ecuador]( - [What’s Eris, the Emerging New Covid Strain?]( - [It’s Not Just Trump: Other World Leaders Got Into Legal Trouble]( - [Fusion Scientists Make Progress After Key Milestone]( - [All About the New Obesity Drugs Causing a Big Stir]( July Declared Hottest Month on Record as Warming Hits 1.5C July was officially the Earth’s [hottest month]( since records began, causing the Antarctic to shrink at a record pace and the European Union’s observation agency to warn of “dire consequences” as extreme weather events grow more frequent. Last month was about 1.5C warmer than the average for 1850 to 1900, Lara Sanli reports. War and Soggy Fields Leave World Short of Top-Quality Wheat Tractors in northern Europe have been stalled by rain, Ukrainian harvests have been dented by Russia’s invasion and in China much of this year’s wheat is only suitable for feeding chickens and pigs. That’s [curbing the portion]( of the grain suitable for food staples like bread and noodles, even as global production could still notch an all-time high. Fake Job Offer Led to Suspected North Korean Hack A programmer at Estonia’s CoinsPaid, the world’s biggest crypto payment provider, was asked to download a file to take a technical test, which he did on his work computer. As Ott Tammik and Aaron Eglitis explain, it was [actually a hack]( that cost the company $37 million, and the main suspect is a group connected to the North Korean government. And finally … An eight day strike by minibus taxi drivers that [caused chaos]( in Cape Town, South Africa, including the deaths of five people and 120 arrests, has ended. Paul Vecchiatto reports that the drivers demonstrated against a decision to impound taxis that weren’t roadworthy or whose owners hadn’t paid fines. The dispute turned violent, with protesters barricading roads, setting buses alight and stoning privately owned cars. A burnt-out bus and taxi on the N2 highway in Cape Town. Photographer: Gallo Images/Gallo Images Editorial More from Bloomberg - [Washington Edition]( for exclusive coverage on how the worlds of money and politics intersect in the US capital - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Supply Lines]( for daily insights into supply chains and globe trade - [Bw Daily]( for unique perspectives, original reporting and insightful analysis from Businessweek’s renowned journalists - [Green Daily]( for the latest in climate news, zero-emission tech and green finance Explore more newsletters at [Bloomberg.com](. 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. 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