Taking a bet

Milei is escalating Argentina’s claims over the Falkland Islands ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here. Javier Milei is betting that Donald Trump’s new world order is here to stay — and that Argentina has picked the prevailing side. As oil production nears off the British-controlled Falkland Islands, Milei is escalating claims to the archipelago over which Argentina fought and lost a war with the UK in 1982. Argentina’s players hold a banner reading “The Malvinas (Falkland Islands) belong to Argentina,” after beating England in 2026 World Cup football semi-final on July 15. Photographer: Paul Ellis/AFP/Getty Images His assertions, made in a late night address last week, came amid low approval ratings for the Argentine leader seeking to flip the script. The economy is losing momentum and Milei’s cabinet chief resigned in June amid corruption allegations. The libertarian is now seizing the moment after Trump said the US is re-evaluating its historically neutral position on the islands. “Winds of change favorable to our claim are sweeping the world,” Milei told the nation. Trump pointed to the UK’s limited support for Washington in its war with Iran. But his comments are in line with efforts to exert US control across the western hemisphere. Milei, a core Trump ally, is putting his money where his mouth is. He announced plans to develop an integrated naval base in Tierra del Fuego, Argentina’s southernmost province and a gateway to Antarctica. He also said he’ll tighten sanctions against companies that drill for oil without Argentine permission. Yet the order Milei envisions may be fleeting, with US midterm elections in November threatening to weaken Trump’s hand. It may also test some of the Argentine president’s other bromances. Milei recorded his TV speech hours after visiting neighboring Chile and fellow Trump-supporting leader, José Antonio Kast. Just as Milei moves to isolate companies doing business with the Falklands, a Chilean shipping company is preparing a new maritime route to the islands. The government in Santiago is signaling no contradiction in supporting Argentina’s claim while fostering private trade and transport links. As with Trump, Milei may not get everything his way. — Manuela Tobias Tourists photographing the gentoo penguin colony on the Falkland Islands. Photographer: Martin Harvey/The Image Bank RF Global Must Reads Canada imposed tariffs of as much as 50% on hundreds of products from the US as Prime Minister Mark Carney bets that standing up to Trump will eventually help Ottawa’s negotiating position with its biggest trading partner. The measure will hit American exporters particularly hard in states such as Michigan and Ohio that do a lot business with Canada and will host heated midterm races. A truck crosses the Ambassador Bridge into the US from Windsor, Ontario. Photographer: Bill Pugliano/Bloomberg Italian Prime Minister Giorgia Meloni’s hopes of delivering a pre-election budget that can both woo voters and assuage coalition partners just got a helping hand from the economy. A better growth outlook, reflecting unexpected resilience to the global energy crisis and trade tensions, could free up billions of euros that the premier might use to fund promised tax cuts while still respecting European Union rules. A liquefied natural gas tanker that loaded in Qatar early last month has sailed through the Strait of Hormuz, the first visible exit of the country’s LNG via the waterway since July. Iran says a deal with Oman to manage shipping through the strait is imminent, a move traders are still weighing because it could tighten Tehran’s control and raise questions about how the US will respond. WATCH: Bloomberg’s Onur Ant looks at the latest on Iran. Indonesia’s wealthiest family has been quietly doing something it rarely does: investing money abroad as Southeast Asia’s largest economy loses momentum. In all, some nine entities based in Singapore and London tied to the billionaire Hartono family have invested at least $1.4 billion overseas, according to filings and interviews by Bloomberg News with people close to the group, marking a sharp pivot for a media-shy clan worth about $30 billion. Flávio Bolsonaro pulled even with President Luiz Inácio Lula da Silva in a poll as the right-wing senator seizes on turmoil at Brazil’s Supreme Court to rally voters. Bolsonaro gained momentum as corruption allegations involving one of Lula’s sons and a weakening economy weigh on the leftist leader’s reelection bid, and a crisis involving the fate of Justice Alexandre de Moraes, who oversaw the case that sent former President Jair Bolsonaro to prison for an attempted coup, is another rallying cry. Flávio Bolsonaro at a campaign rally in São Paulo yesterday. Photographer: Maira Erlich/Bloomberg Kenyan President William Ruto withdrew a century-old concession for Indian behemoth Tata Group to mine soda ash in an area inhabited by Maasai herders near Tanzania, arguing the conglomerate hasn’t built any processing facilities that benefit the nation. China slapped anti-dumping measures on Japanese shipments of a chemical used in the production of semiconductors, a targeted move that nonetheless escalates a diplomatic dispute with Tokyo over Taiwan. Serbia’s prime minister called for the dissolution of parliament, paving the way for a snap election that may enable embattled President Aleksandar Vučić — whose term ends in May — to switch to the premiership and remain a dominant political figure. UK Prime Minister Andy Burnham’s government is expected to ban trade with Israeli settlements in the West Bank today as he seeks to adopt a stronger policy on an issue that’s important to his governing Labour Party, but may anger Trump. Israeli soldiers at Maale Arugot in Gush Etzion, West Bank, on Sept. 2. Photographer: Erik Marmor/Getty Images Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day The rivalry between Hong Kong and Singapore to attract global talent is heating up again. Both of Asia’s top financial hubs are mulling tax breaks for fund managers, the latest move in a decades-old game of one-upmanship to keep high-earning finance jobs. In this story we delve into big questions like how much people earn and pay for rent and education. More importantly, we show where both Hong Kong and Singapore rank among major cities worldwide in terms of a night out, including dinner and wine. And Finally A tech shift in China that started in 2022 — known as dongshu xisuan, or “Data in the East, Computing in the West” — is already impacting the distribution of data-center projects. According to new research published by BloombergNEF, more than half of the country’s data project pipeline is now across the north and northwest, where both space and inexpensive green energy are abundant. DeepSeek and Z.AI are among the Chinese pioneers erecting giant centers of a gigawatt or more in Inner Mongolia, racing to put in place the infrastructure they need to power AI development. Thanks to everyone who answered yesterday’s quiz question and congratulations to Gabriel Sivzattian, who was first to identify Russia as the country whose finance minister caused a stir by appearing at the G20 in the US last week. More from Bloomberg Check out our Bloomberg Investigates film series about untold stories and unraveled mysteries Next China for dispatches from Beijing on where China stands now — and where it’s going next Next Africa, a daily newsletter on where the continent stands now — and where it’s headed Economics Daily for what the changing landscape means for policymakers, investors and you Green Daily for the latest in climate news, zero-emission tech and green finance Get Next Japan for an inside view of the forces reshaping Japan, and what’s next for its businesses, markets and consumers Explore more newsletters at Bloomberg.com We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us by reporting it here. Follow Us 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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