Painful fallout when politics and markets collide: Weekend Reads

When politics and markets collide [View in browser]( [Bloomberg]( Chinese authorities stepped up efforts to bolster financial markets as President Xi Jinping’s government grows [increasingly uncomfortable]( with the pace of declines in stocks and the yuan. Maverick congressman Javier Milei pulled off a shock primary win that upended Argentina’s presidential race and [roiled]( markets with his calls to abolish the central bank and replace the peso with the US dollar. Russia’s central bank held an [extraordinary meeting]( after the ruble crashed as the Kremlin’s war in Ukraine drags on and international sanctions hit trade. Donald Trump [was indicted]( for the fourth time in as many months over efforts to overturn the results of his 2020 presidential election defeat in the US state of Georgia. Dig into these and more of our best stories in this edition of Weekend Reads.  — [Karl Maier]( Milei elebrates the primary results with his sister Karina. Photographer: Alejandro Pagni/AFP/Getty Images Sign up for the [India Edition newsletter](, and if you are enjoying this newsletter, sign up [here](. China’s Hidden Financial Dangers Erupt With Shadow Bank Crisis The secretive Chinese shadow banking giant Zhongzhi Enterprise Group has become the latest [symbol of financial fragility]( in an $18 trillion economy where confidence among investors, businesses and consumers is rapidly dwindling. Milei Promises Argentina Can Be Saved With Libertarian Economics Showing his zeal for [unleashing the power]( of the free market on the ailing Argentine economy, Milei vowed in a two-hour interview on Wednesday to take various measures to restore credibility from slashing government spending to closing the central bank, Juan Pablo Spinetto reports. Russia’s Powerful Split Into Squabbling Factions Over the Ruble The dramatic weakening of the ruble revealed a [widening policy divide]( within Russian officialdom about how to rescue it. The vulnerability has emerged as Moscow is trying to sustain the biggest conflict in Europe since World War II. - The Kremlin’s efforts to [paralyze Ukrainian food shipments]( are succeeding, with a third of the country’s crop exports wiped out since its Black Sea ports were effectively blocked last month. Ukrainian soldiers in Donetsk on Tuesday. Photographer: Diego Herrera Carcedo/Getty Images Best of Bloomberg Opinion This Week - [Don’t Déjà Vu Me, Argentina. Markets Have No Tears: John Authers]( - [Biden Must Undo Trump Gun Export Policy: Francis Wilkinson]( - [China Is Acting More Like a Scrooge Than a Socialist: Minxin Pei]( - [Do Oppenheimer’s Nuclear Warnings Apply to AI?: Hal Brands]( - [Pregnant Women Aren't Getting Necessary Vaccines: Lisa Jarvis]( Five Takeaways From the US, Japan and South Korea Summit China’s growing power and the nuclear threat from North Korea were in focus when US President Joe Biden hosted a landmark summit with his South Korean counterpart, Yoon Suk Yeol, and Japanese Prime Minister Fumio Kishida on Friday at Camp David. Jon Herskovitz writes that all three leaders were [looking for political wins]( to boost their fortunes at home. Trump Uses Four Indictments as His Foremost 2024 Campaign Tool Trump is turning his four indictments into a [centerpiece of his campaign]( to return to the White House next year. As Mario Parker writes, the former US president has seized on the charges to strengthen his pitch to Republican Party loyalists, who share his sense of grievance and embrace his unsupported claims that the prosecutions are politically motivated. A Trump supporter in Iowa on Aug. 12. Photographer: Al Drago/Bloomberg Ivy League Businessman Wants to Take On Ecuador Cocaine Cartels Jan Topic’s rugged appearance, Ivy League education and [pledge to crush cocaine cartels]( are making him a leading contender ahead of Ecuador’s Aug. 20 presidential vote, Marcelo Rochabrun and Stephan Kueffner report. A poll by Comunicaliza following the murder of another candidate, Fernando Villavicencio, showed Topic surging into second place, which would be enough to put him into the October runoff. Niger Coup Threatens Chaos as West Fears Russian Influence The global reaction to the coup in Niger shows how the West African nation has become one of the most [strategically important countries]( on the continent. Among the last democracies in the Sahel region, Katarina Hoije explains, it was the linchpin of the fight against jihadists linked to al Qaeda and Islamic State and a key ally in Europe’s effort to stop migration. Odds Stacked Against Opposition in Zimbabwe as Election Nears A divided opposition, hobbled by a slew of court cases, has struggled to capitalize on public outrage about the [near-collapse of government services](, triple-digit inflation and rampant poverty in Zimbabwe. As Ray Ndlovu and Godfrey Marawanyika write, octogenarian President Emmerson Mnangagwa is in pole position to win the Aug. 23 vote. Street vendors outside the Miracle Mall in Harare on July 5. Photographer: Cynthia R Matonhodze/Bloomberg Best of Bloomberg Explainers This Week - [RICO, the Racketeering Law Trump Faces in Georgia]( - [A Year Into Biden’s Climate Agenda, the Price Tag Remains Mysterious]( - [How Sanctions Have Stressed Russia’s Economy, Ruble]( - [Twitter-DOJ Spat Over Trump Data Raised Questions on Musk’s Role]( - [A Descent Into Crypto Hell Started With a Spam Text From ‘Vicky’]( Five Things to Watch as South Africa Hosts BRICS Summit South Africa hosts a summit of the BRICS group of nations and others in the Global South next week who are seeking to balance Western dominance of the world order while dealing with their own internal divisions. Monique Vanek lays out the [key things to watch]( for. Guatemalans Vote for President in Election Slammed by the US The presidential election in Guatemala on Sunday has been an [acrimonious affair]( marred by prosecutor raids on the electoral authority and criticism from Washington. Michael McDonald writes that anti-corruption campaigner Bernardo Arévalo has been the frontrunner since defying polls in the June first round to win a place in this weekend’s runoff. And finally … Voters in the seaport of Grimsby overwhelmingly supported the UK’s withdrawal from the European Union, attracted by promise of being able to catch more fish free from Brussels’s regulations. But as Sabah Meddings explains, the [fading fortunes]( of what was once the heart of the UK seafood business shows 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. The Fishermen’s Memorial Statue in St James Square, in the central shopping area of Grimsby. Photographer: Jason Florio for Bloomberg Markets 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. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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