During today's NATO summit in Brussels, German Chancellor Angela Merkel responded to President Donald Trump’s comments that Germany is “totally controlled by Russia” due to an oil and gas deal between Russia and Germany. Merkel responded with her experience growing up in East Germany, saying, "It is good that we are independent today.”
The backdrop: Current and former U.S. lawmakers are rebuking the exchange, saying that Trump's comment about Russia and Germany was unacceptable — or outright calling it out as false.
Oil prices are heading downward this morning, as traders respond to the escalating trade war with China, reopened Libyan exports terminals, and fresh signs that the U.S. could provide buyers of Iran crude oil some wiggle room on sanctions, per Reuters.
The intrigue: U.S. Secretary of State Mike Pompeo seemed to make news yesterday when he said in Abu Dhabi that the U.S. would "consider" waiver requests from a "handful" of countries. But that was in the context of generally tough remarks.
Since the middle of June, China’s currency — the yuan — has fallen more than 3% against the dollar, and by a bit less against the currencies of China’s main trading partners. After a particularly large drop last Monday, China is reported to have intervened to limit the yuan’s fall.
Why it matters: Few prices matter more to the global economy — or to global trade — than the value of China’s currency. A weaker yuan supports China’s exports and generally pushes down the currency values of countries that compete most intensely against China in global markets.
"At a time when populist politicians are trying to choke off or reroute migration flows, what matters to fans of the [all-European teams in the World Cup] semifinals — England, France, Belgium [eliminated] and Croatia — wasn't the players' ancestry but that they excelled," AP's Angela Charlton writes from Paris.
Why it matters: "Europe owes its sporting power ... to a long-running outreach into poor suburbs or neighborhoods, giving kids of all backgrounds access to coaches and fields and facilities — and teams more talent to choose from."
President Trump accused Germany of being "totally controlled by Russia" due to its energy deals with Moscow shortly after arriving at the NATO summit in Brussels this morning — and doubled down on his claims that European allies owe the United States for years of "protection."
Between the lines: Trump's warm rhetoric toward Russia has worried allies, particularly with a Trump-Putin summit looming just after the NATO meeting. His comments mark an inauspicious start to a summit that many fear could be as disastrous as last month's G7 gathering — but with even bigger stakes, given NATO's collective defense requirements.
Researchers at FireEye found evidence that a Chinese hacker group known as TEMP.Periscope spied on both sides of the Cambodian election, according to a new report.
What they're saying: Benjamin Read, FireEye senior manager for cyber espionage analysis said in a statement: "China is heavily surveilling all parts of the upcoming Cambodian elections. We have not seen any evidence of activity beyond intelligence collection, but Cambodia is a key ally, so any change in ruling party would be of interest to China."
When Beijing first asked airlines around the world to remove references to Taiwan as an independent country from their destinations lists, White House Press Secretary Sarah Sanders slammed the move as "Orwellian nonsense." But a number of airline companies are buckling under Chinese pressure.
Why it matters: China is wielding its market leverage to advance its geopolitical goals — and it's working.
President Trump's former national security adviser Michael Flynn, who awaits sentencing for lying to federal investigators, will serve as the director of global strategy for a new lobbying and consulting firm called Stonington Global, reports the Wall Street Journal.
The details: The firm was founded by Washington lobbyist Nick Muzin, a registered foreign agent who most recently worked on an influence campaign for the government of Qatar. Muzin was named in a lawsuit against the Qatari government filed by Republican fundraiser Elliot Broidy, which alleged that the Gulf state had conspired with Muzin to hack Broidy's emails and smear his reputation.
While pledging $23 billion in loans and aid, President Xi Jinping told members of the Arab League today that China would like to form a strategic partnership to become "the keeper of peace and stability in the Middle East, the defender of equity and justice, promoter of joint development, and good friends that learn from each other," according to the South China Morning Post.
Why it matters: As Axios' Erica Pandey has reported, China is determined to win influence in the Middle East, largely through its massive Belt and Road infrastructure initiative. And while Beijing has not been shy about developing economic partnerships in the region, Xi's comments signal a new level of political engagement.
