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Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here. If the NATO summit in The Hague was all about making sure Donald Trump didn’t quit the military alliance, this week’s gathering in Ankara is about showing why it’s in the US interest to stay. In preparation, NATO chief Mark Rutte headed to the Oval Office and pulled up easy-to-read bar charts entitled the Trump Effect and the Trump Trillion. No doubt military spending is up and Trump’s threats and hectoring of Europe have demonstrably worked.  
WATCH: Bloomberg’s Flavia Krause-Jackson discusses what the alliance’s gathering means for Turkish President Recep Tayyip Erdoğan.
And yet, in that room, the US president looked a bit bored and unimpressed. NATO allies will need to find new ways beyond flattery to keep him engaged and interested. Spain, a chronically low military spender, was headed to the summit pointing the finger at countries with even lower outlays. Trump’s fallout with Italy’s Giorgia Meloni may flare up again after he goaded her about a picture on Truth Social. It helps that the host is Turkey’s Recep Tayyip Erdoğan, a strongman-like figure Trump admires. He leads a country not only with NATO’s second biggest military but whose strategic geographic position gives it sway in the two conflicts that will dominate this year’s summit. Russia’s war in Ukraine has now outlasted World War I and the onus on US allies will be to convince Trump that Europe has stepped up, and that Ukraine is on a much stronger footing than a year ago. Trump is far more interested in Iran. He’s still fuming at Europeans he believes should’ve lent their airspace and use of military bases when the US and Israel attacked Iran in February. Arguments that they weren’t consulted or that the Middle East isn’t NATO’s business didn’t cut it. And there’s the rub. Until NATO can survive without the US, it’ll remain beholden to what its biggest spender says — and thinks. — Flavia Krause-Jackson 
Emergency services at the site of a Russian attack on a building in Kyiv yesterday.
Photographer: Serhii Okunev/AFP/Getty Images
Global Must ReadsChina and other friendly nations will be given “special considerations” when Tehran determines the fees charged to ships using the Strait of Hormuz, Iran’s ambassador to Beijing said. While Abdolreza Rahmani Fazli said the critical waterway is now a matter of “national security,” its future management remains among contentious issues being discussed in talks to secure a permanent end to the conflict with the US. 
Women in Khasab, on Oman’s Musandam Peninsula, overlooking the Strait of Hormuz.
Photographer: Giuseppe Cacace/AFP/Getty Images
Philippine Vice President Sara Duterte faces a contentious trial in the Senate today, a case that could end her political career or leave her as the top contender to succeed archrival Ferdinand Marcos Jr. as president. An anti-graft court meanwhile ordered the arrest of a Duterte-allied senator charged with plunder, hours before the start of the impeachment case. The final budget showdown of Emmanuel Macron’s presidency is already gearing up to be France’s highest-stakes fiscal clash of the decade, with the premier and finance minister stressing the urgency of curbing a ballooning debt burden. Their pleas showcase how a fragmented political system whose budget wrangling pulled the rug from under two prime ministers since 2024 is liable to cause a new round of chaos later this year. The usually ubiquitous leader of Reform UK, Nigel Farage, appears to have taken an unusual break from public appearances in Britain following a string of election bruises and unprecedented scrutiny of his personal finances. Political donors will need to wait a year after returning to the UK before they can give more than £100,000 ($133,510) under a proposed government crackdown on offshore finance that threatens to hit Farage’s party. A US judge ordered the Pentagon to give Alibaba a reprieve from a law that caused all of its lobbyists to drop it as a client while she considers the constitutionality of the measure. The case will likely be closely watched as the blacklist has emerged as a prominent tool for the US in its rivalry with China. Ukraine said it attacked 16 substations in Crimea and other Russian-occupied regions over the past 48 hours, deepening an energy crisis in and around the Black Sea peninsula. 
Cars line up for fuel in Simferopol, Crimea, on June 12.
Source: AP Photo
The war against Iran may be over, but the repercussions for global monetary policy are here to stay, with the path for central bank interest rates around the world shifting higher for years to come, according to Bloomberg Economics. China has released the leader of a prominent underground church from detention in a conciliatory gesture after Trump personally raised the case with Chinese President Xi Jinping. Hungarian Prime Minister Péter Magyar’s government has filed a constitutional amendment to oust the Viktor Orbán-allied president and roll back the former nationalist leader’s political influence. FIFA cleared US star Folarin Balogun to play in a World Cup match against Belgium following a personal appeal by Trump, a rare suspension of an automatic punishment that sparked outrage among competing teams. 
WATCH: Bloomberg’s David Ingles and Yvonne Man discuss the Balogun reversal.
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Australia and Fiji signed a mutual defense treaty and an agreement to develop ties as part of Canberra’s campaign to shore up its influence in the South Pacific to counter China. The pact comes on the heels of an agreement signed with Vanuatu late last month and is the latest in a series of treaties that the center-left Albanese government has sealed with Pacific island nations since it took office in 2022. And FinallyIreland’s tech sector is heavily exposed to US multinationals, many of whom are culling jobs as they invest in artificial-intelligence processes, with 30% of workers in the country likely to be meaningfully affected by AI. More than 6% of the workforce is employed in the tech sector, higher than the European Union average. Employment in the information and communication technology industry among the under-30s dropped by almost one third between 2023 and 2025, a government analysis shows, with overall jobs in the sector falling almost 11% in the first quarter of 2026 from a year earlier. 
Commuters pass through the Silicon Docks area in central Dublin.
Photographer: Paulo Nunes dos Santos/Bloomberg
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Monday, July 6, 2026
Defense mission
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