Lurching right

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.In Washington, a handful of hardli [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. In Washington, a handful of hardline populist lawmakers orchestrated the ouster of fellow Republican Kevin McCarthy as US House Speaker, leaving the chamber [in a state of paralysis](. In Manchester, England, an arch-Brexiteer and potential future Conservative leader, Home Secretary Suella Braverman, got a standing ovation for railing against “woke” Britain and warning about the [“hurricane” of immigration]( at the annual Conservative Party conference. These two old ally nations, bound by a “special relationship” that has become less special as the decades wear on, find themselves in a not dissimilar political pickle, both facing critical election campaigns in the coming months. The common denominator is how far anti-immigrant, anti-LGBTQ and anti-establishment figures in conservative parties on both sides of the so-called pond (the Atlantic Ocean) are willing to go. All this with the specter of Elon Musk and his X social-media platform fanning the flames, removing the guardrails around the spread of disinformation and sometimes personally tweeting provocatively about the issue of the day. In the US, McCarthy, just after agreeing to sacrifice aid to Ukraine in a bill to avoid a federal government shutdown, found himself ejected from the speaker’s post that’s second in line to the presidency. The architect of his demise is in direct contact with Donald Trump, the Republican front-runner for a rematch against Democrat President Joe Biden in what polls say will be a tight contest. Not the case in the UK, where the Conservatives have been in power for so long (13 years and counting) that to many voters it feels like their time is up: State schools are crumbling, strikes are commonplace and the revered National Health Service is on its knees. Prime Minister Rishi Sunak will seek to rally the Tory faithful in a speech to the conference today. For all their differences, one thing seems clear in both parties: The hard right is on the march. — [Flavia Krause-Jackson]( Braverman addresses the UK Conservative Party conference yesterday. Photographer: Hollie Adams/Bloomberg Global Must Reads Leaders from nearly 50 European countries will try to [show unity in support of Ukraine]( as they meet in Granada, Spain, tomorrow amid mounting concern over the reliability of US funding, despite [Biden’s reassurances]( of Washington’s commitment to Kyiv. European backing for Ukraine faces a new challenge after Robert Fico, a candidate sympathetic to Russia, won Slovakia’s election on Saturday. The judge in Trump’s civil fraud trial issued a [gag order]( on both parties posting online about his staff, following a social media post by the former president attacking his clerk and sharing her photo with his followers. Trump has portrayed the case as part of a “corrupt” Democratic effort to hobble his campaign. Trump at the New York State Supreme Court yesterday. Photographer: Shannon Stapleton/Reuters The European Union formally launched an anti-subsidies probe into electric vehicles manufactured in China, setting in motion a one-year investigation that could see provisional measures such as countervailing duties imposed in the next nine months. The inquiry [focuses on a major global industry]( that has seen a massive rise in exports from China in recent years. Investors are offloading Italian government debt two months after Prime Minister Giorgia Meloni’s cabinet was rocked by news of a shrinking economy, a botched bank tax and a worsening budget outlook. Officials are [starting to fret]( as the yield on 10-year Italian securities has risen to the highest in a decade, hurting Meloni’s ability to refinance Italy’s $2.9 trillion debt load. Canada is still in discussions with India about its diplomatic presence there as a [dispute rages]( over the murder of a Sikh separatist leader in a Vancouver suburb. After reports that Canada has been instructed to cut the number of diplomats by two-thirds, Foreign Minister Melanie Joly said her country is in “constant cooperation and dialogue with India.” Russian air defenses intercepted and [destroyed 31 Ukrainian drones]( over its western regions of Kursk, Bryansk and Belgorod, the Defense Ministry in Moscow reported today. Ecuador is braced for rolling blackouts just [days before its presidential election]( as lack of rain hits the hydroelectric plants that generate 80% of the nation’s electricity. The new chairman of the US Senate Foreign Relations Committee [blocked military aid to Egypt](, days after Senator Bob Menendez stepped aside from the job as he fights allegations that he took bribes to help the Egyptian government. Washington Dispatch A Gallup poll showing that Republicans command the widest voter confidence on the economy since 1991 was released on the same day that the Bureau of Labor Statistics reported that job openings unexpectedly rose in August. That report, which exceeded all estimates in a Bloomberg survey of economists, could be seen as good news, yet it means that the US Federal Reserve, still very wary of inflation, may pursue another interest rate increase and keep rates higher for longer. Wall Street did not like what it saw: The S&P 500 Index plunged to the lowest level since June on the news, as the Dow Jones Industrial Average wiped out its gain for the year. The seesaw between concerns about jobs and inflation has not inspired Americans’ confidence in Biden’s stewardship of the economy. Yet the poll, which has people trusting Republicans on the economy more than Democrats by 14 points, must be read with some caution. A year after the last time Republicans had such an edge, Bill Clinton, a Democrat, won the presidency. One thing to watch today: Commerce Secretary Gina Raimondo testifies before the Senate Commerce Committee, her second appearance before lawmakers since her visit to China in late August. [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 Paper documents still rule in the $25 trillion global cargo trade with four billion of them in circulation at any one time. They’re relatively easy to fake, frequently get lost and can add huge amounts of time to any journey. The system has now [become a vulnerability]( for companies that move and finance resources around the globe. And Finally A rash of bedbug sightings across France is causing paranoia among travelers and becoming a sore spot for the government as Paris prepares to host the summer Olympics next year. While it’s unclear whether infestations are up significantly, it has [become a political issue](, with Transport Minister Clement Beaune planning to hold an emergency meeting with public transportation operators today. Products used to eradicate bedbugs at the Hygiene Premium pest control shop in Paris. 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