Time to Spin a Win After Contentious G-7

(Bloomberg) --

The Group of Seven summit that wraps today in Biarrtiz definitely had its contentious moments, and differences over issues like climate change and trade policy may rule out a formal communique. But several of the most high-profile participants are managing to head home with something to try to at least spin as a win.

• Donald Trump and his golf buddy Shinzo Abe secured an agreement in principle on a trade deal that would slash Tokyo’s tariffs on American beef, pork and other agricultural products, while delaying for now the threat of additional levies on Japanese auto exports to the U.S. The U.S. president also this morning described what he called a significant breakthrough in trade talks with China.
• The meeting’s host, French President Emmanuel Macron, capped a series of not-so-subtle power plays by spearheading an invitation to Iranian Foreign Minister Javad Zarif to join the sidelines of the gathering. Trump struck a conciliatory tone on the matter, telling reporters he knew that Zarif was coming supported Macron’s decision to invite him.
• The stakes were high for newly minted U.K. Prime Minister Boris Johnson, who was making his global summit debut. Johnson survived without any high-profile missteps and used the event to step up his campaign to convince the European Union to reopen Brexit negotiations.

Next year, it will be Trump’s turn to host, and he made clear this morning that he’s already making plans — and, in classic Trump fashion, they include using his Miami golf course as a potential venue.

Global Headlines

Trade breakthrough? |  Trump said U.S. officials received two “very productive” calls last night from the Chinese urging a resumption of trade talks, "getting closer to a fair deal for everyone" and prompting global markets to  reverse losses. While a Chinese Foreign Ministry spokesman said immediately after Trump spoke that he wasn’t aware of any phone conversations, Beijing’s top negotiator has publicly urged calm after a weekend of tit-for-tat tariff increases.

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Muscle flexing | China’s state media is using increasingly militaristic rhetoric about Hong Kong’s pro-democracy protests after a weekend of violent clashes. A commentary in state-run Xinhua compared the city’s unrest to a ‘Color Revolution’ and featured the strongest warning yet that Beijing might consider sending in troops to quell the chaos — a possibility most analysts consider remote.

Too far? | Bernie Sanders hasn’t reprised any of the complaints about a “rigged” Democratic primary that he voiced in 2016. That’s at least in part because the Democratic National Committee has taken pains to address the concerns he and others raised. But did the DNC overcorrect?

• Tyler Pager reports that plans to debut “virtual caucuses” in Iowa and elsewhere are in jeopardy after the DNC raised concerns.
• Former Illinois Representative Joe Walsh has announced a long-shot bid to challenge Trump for the Republican nomination.
• Stay on top of the latest developments in the race for the White House with Bloomberg’s Campaign Update. 

Security spat | South Korea’s decision to pull out of an intelligence-sharing agreement with Japan is angering U.S. officials who say it may endanger American troops stationed in Asia. It follows months of sparring over trade and security cooperation between Seoul and Tokyo and comes as North Korea fired ballistic missiles into the sea over the weekend. South Korean President Moon Jae-in doesn’t seem worried: He recently invested in an equity fund betting on companies Seoul is supporting during the Japan dispute.

Easing the gridlock | Indonesia will build a new capital city on the island of Borneo, home to some of the world’s biggest coal reserves and endangered orangutan habitats. President Joko Widodo wants to ease pressure on Jakarta, which is hopelessly congested and sinking below sea level. Construction of the new center in East Kalimantan will start in 2021, and the aim, the president said, is to spread economic activity outside Java.

What to Watch This Week

• Italian President Sergio Mattarella’s deadline to find a working governing coalition runs out tomorrow as the Democratic Party and Five Star Movement remain at loggerheads over who should be the next prime minister.
• Wednesday is the deadline for candidates to qualify for the third Democratic presidential debate in Houston next month.
• A federal judge in Washington is scheduled to hear arguments Thursday in a case related to Trump’s attempt to block the state of New York from handing his tax records to congressional Democrats.
• A court in Gabon will hear a petition from opposition supporters requesting that President Ali Bongo undergo medical tests to determine whether he’s fit to rule the oil-producing central African nation following a stroke last year.

And finally ... Spanish tourist hotspots are hurting from a big fall in beer sales — thanks in part to Brexit. As Jeannette Neumann explains, with uncertainty over the U.K.’s divorce from the EU weakening the pound, fewer British holidaymakers are flocking to their normal haunts in Spain — their top destination — and traveling instead to cheaper locations, such as Turkey, Egypt and Tunisia. It could get worse for Iberian hoteliers and bartenders: Bookings for next year are down too.

--With assistance from Karen Leigh and Iain Marlow.

To contact the editor responsible for this story: Ruth Pollard at rpollard2@bloomberg.net, Karl Maier

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