Diplomatic rift over murder allegations

Canada alleges India government involvement in murder of Sikh leader [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Canadian Prime Minister Justin Trudeau had raised the delicate matter with his host, Narendra Modi, at the Group of 20 summit, a carefully choreographed event the Indian leader took great pride in. The revelation, had it come out then, would have surely spoiled Modi’s moment and there were broader geopolitical stakes too. Days later the palpable tension between the two men spilled out into the open when Trudeau accused India’s government of [involvement in the fatal shooting]( in June of a prominent Sikh activist on the outskirts of Vancouver. The allegations were swiftly denied, but the damage to the relationship is now done. Modi, leader of the Hindu nationalist Bharatiya Janata Party, has suggested Trudeau is soft on Sikh separatism. But in Canada, the Sikh diaspora is politically powerful, with politicians at high levels in all major political parties, and they form an influential voting bloc in key election battlegrounds. It’s a delicate matter and Trudeau has not always navigated those sensitivities well. On a 2018 trip to India, for example, he was widely mocked for wearing “fancy dress” at the holiest of sites for Sikhs. On this occasion, he probably had little choice on when to go public as the news was about to leak. He’s also been criticized for not responding forcefully enough to allegations of foreign meddling in Canadian elections. Less than a year ago, India-Canada relations appeared to be on an upward trajectory. Trudeau’s government unveiled a strategy to reduce Canada’s reliance on China — by far its largest Asian trading partner — by deepening economic ties with others, including India. That plan now looks at risk.  —[Brian Platt]( and [Flavia Krause-Jackson]( A billboard featuring murdered Sikh activist Hardeep Singh Nijjar during his funeral in Surrey on June 25. Photographer: Darryl Dyck/The Canadian Press/AP Photos Global Must Reads Just In: Azerbaijan [started military operations]( to take control of the Nagorno-Karabakh region in the most serious escalation since a war with neighboring Armenia killed thousands three years ago. China’s top diplomat pledged to strengthen his country’s “[strategic coordination](” with Russia ahead of Vladimir Putin’s expected meeting with President Xi Jinping. China has been Russia’s biggest backer since its invasion of Ukraine, offering both economic and diplomatic support. Ukrainian President Volodymyr Zelenskiy is set to meet with his Brazilian counterpart, Luiz Inacio Lula da Silva, tomorrow in [one of the most anticipated encounters]( of this week’s United Nations General Assembly. 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German authorities banned a neo-Nazi group [with roots in the US]( and raided the apartments of 28 members across 10 federal states in an operation coordinated with American officials. Washington Dispatch US Defense Secretary Lloyd Austin is convening military officials from dozens of nations today at the latest meeting of the Ukraine Defense Contract Group in Ramstein, Germany. This will be the 15th gathering of the group, yet it occurs at a crucial time for Ukraine internationally as its counteroffensive advances slowly against Russian forces. Zelenskiy has arrived in New York to encourage support among world leaders at the United Nations General Assembly. He will then travel to Washington to meet with President Joe Biden and US senators. In Germany, Austin and Joint Chiefs of Staff Chairman Mark Milley are discussing “continued close cooperation” to help Ukrainians defend themselves, according to the Pentagon. In Washington, however, Biden’s request for $24 billion in Ukraine assistance has been held up by political turmoil in the US House. One thing to watch today: US housing starts and building permits data from the Census Bureau will be released at 8:30 a.m. ET. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day “Geopolitics” is a word that has been popping up on the earnings calls and corporate filings of some of the world’s biggest companies. There is now evidence that the discussions of Russia’s invasion of Ukraine, subsequent strains in international relations and warnings over the fate of globalization are [spurring corporations to pick sides]( with their capital. 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