Tighter embrace

Joe Biden is looking for a way to weave the US trilateral relationship with allies Japan and South Korea so tightly together it won’t unrave [View in browser]( [Bloomberg]( Joe Biden is looking for a way to weave the US trilateral relationship with allies Japan and South Korea so tightly together it won’t unravel as it has done in the past. In an unprecedented stand-alone summit at the Camp David presidential retreat in rural Maryland, the US leader will be conferring with Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol on how to tackle the challenges posed by China and nuclear-armed North Korea. Key Reading: [Five Things to Watch as Biden Hosts Japan, South Korea Leaders]( [North Korea May Test ICBM as US, Japan, South Korea Leaders Meet]( [South Korea Leader Seeks Breakthrough in Deterring Kim Jong Un]( [North Korea Spotlights Missiles Ahead of US Summit With Allies]( [Why South Korea-Japan Ties Are Plagued by History]( They are set to issue two statements on their principles and plans going forward. A three-way hot line and annual military exercises, as well as making the summit itself a yearly event, are expected to be among the pledges. Having the leaders of South Korea and Japan take part in a cozy getaway together would have been unthinkable just a couple of years ago. Ill feeling over Japan’s misdeeds during its 1910-1945 colonization of the Korean Peninsula has echoed down the decades, flaring into angry standoffs over compensation under Yoon’s predecessor. While China’s state-owned media has called the nascent three-way grouping a “mini Nato,” previous attempts at rapprochement between South Korea and Japan have often been short-lived. Political setbacks can tempt a South Korean leader to turn to Japan-bashing to shore up popularity. Japan’s premiers have sometimes offended their neighbors by visiting Yasukuni Shrine, seen as a symbol of past militarism. One key to lasting success this time will be making sure South Korea’s wary public sees the value of building ties with a former oppressor. Another will be the US presidential elections. With Donald Trump — who held three summits with North Korean leader Kim Jong Un — in the running, there’s no guarantee that the next inhabitant of the White House will be willing to expend energy on shoring up ties between often fractious allies. — [Isabel Reynolds]( Yoon, Biden and Kishida on the sidelines of a NATO summit in June 2022. Photographer: Brendan Smialowski/AFP/Getty Images Check out the Bloomberg Politics [webpage](, and if you are enjoying this newsletter, sign up [here](. Global Headlines Chinese President Xi Jinping will attend the BRICS summit in South Africa next week, a [rare journey abroad]( after he spent just two days outside China in the first six months of 2023 amid growing domestic political challenges. He’ll meet South African President Cyril Ramaphosa and host a dialogue of leaders from around Africa, where China has pushed to expand its influence with infrastructure projects in a strategy the US says has entrapped some nations in debt. - Shadow banking giant Zhongzhi Enterprise Group is under intense scrutiny after halting payments to thousands of customers, becoming the latest symbol of [financial fragility]( in China’s $18 trillion economy. Trump proposed April 2026 for a trial on election obstruction charges, one of four [criminal prosecutions against him](, arguing that a jury shouldn’t consider the case until voters decide next year if he should return to the White House. With prosecutors wanting to start on Jan. 2, a judge in Washington will hear arguments on the date on Aug. 28. - Trump said his lawyers convinced him to cancel a news conference planned for Monday when he was expected to repeat his [unfounded claims]( that the 2020 election against Biden was stolen from him. Europe’s natural gas reserves are almost full, though that still may not be enough to see the region through winter. The continent’s storage levels hit the highest on record for the time of year, and well ahead of the European Union’s Nov. 1 goal of reaching 90%. However, inventories weren’t meant to provide all of the region’s winter gas supplies, and a [storm of risks]( is brewing, meaning the energy crisis isn’t over yet. Denmark and the Netherlands said they have received [US approval]( to send their F-16 fighter jets to Ukraine as soon as pilots have been trained. The Danes and Dutch have been leading the coalition to instruct the Ukrainian pilots and have roughly 30 and 42 of the aircraft, respectively, in their inventories. Best of Bloomberg Opinion - [Japan, South Korea Look to Future — for a Change: Gearoid Reidy]( - [Indonesia’s Plan to Break Coal Habit Is Failing: David Fickling]( - [India Is Putting Symbolism Above Good Sense: Mihir Sharma]( Voters in the seaport of Grimsby overwhelmingly supported the UK’s withdrawal from the EU, attracted by promise of being able to catch more fish free from Brussels’s regulations. But as Sabah Meddings explains, what was once the heart of the UK seafood business is [now a shadow of itself](, an example of what happens when the type of nationalist policies that fueled Brexit confront the realities of today’s world trade and politics and the limitations of natural resources. Patrick Salmon, the owner of Alfred Enderby traditional smoke house, loading the fish smoker with haddock. Photographer: Jason Florio for Bloomberg Markets Explainers You Can Use - [Biden Team Aims to Tie GOP Field to Trump With Pre-Debate Blitz]( - [Why Two Thai Coups Can’t Keep Thaksin’s Family Down]( - [UK Military Must Adapt Urgently to A Warming World, Report Says]( Former President Jair Bolsonaro asked a computer programmer to [infiltrate]( Brazil’s electronic voting system to expose vulnerabilities and promised to pardon him if he was caught, the hacker testified yesterday. Delgatti Neto appeared before a congressional committee probing the storming of government buildings by Bolsonaro supporters who tried to overturn his defeat to Luiz Inacio Lula da Silva in last October’s election. The ex-leader’s spokesman described the claims as lies. Tune in to Bloomberg TV’s 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 - Senegalese opposition leader Ousmane Sonko, widely seen as the main challenger to the ruling coalition in presidential elections next year, was [admitted to intensive care]( after going on a hunger strike. - The US escalated its complaint that Mexico’s ban on genetically modified corn violates the nations’ free-trade deal, [heightening tensions]( between the neighbors. - A group of South African opposition parties that aims to end the African National Congress’s three-decade rule say they will form a [coalition government]( if they collectively win a majority in next year’s parliamentary election. - Smoke from Canadian wildfires is [threatening air quality]( from the US Midwest to western New York State, triggering warnings of “unhealthy” levels in some areas extending through the weekend. Pop quiz (no cheating!) The prime minister of which country is planning a meeting this year that for the first time would gather world leaders and artificial intelligence executives? Send your answers to balancepower@bloomberg.net. And finally ... On the outskirts of the Chinese city of Hangzhou, a [new type of graveyard]( is sprouting up: fields where thousands of electric cars have been abandoned among weeds and garbage. The sites are not only an eyesore, they also shine a light on the downside of EVs going obsolete, because getting rid of them so quickly reduces their climate benefit and leaves behind spent batteries containing precious materials that could be recycled. Abandoned EVs in China. 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