Flagship

Tense Russia-US meeting

Talks between the top US and Russian diplomats in Kuala Lumpur today are likely to be tense, with Washington increasingly voicing anger over Moscow’s hammering of Ukraine. US President Donald Trump — who had been pursuing warming ties with Russia’s Vladimir Putin, curtailing arms supplies to Ukraine — has in recent days appeared to sharply reverse American policy: Trump accused Putin of “bullsh*t” by slow-walking peace talks, and this week approved “sending some defensive weapons” to Ukraine. The shift came as Russia intensified its summer onslaught, this week mounting what Kyiv said was the biggest aerial attack of the war so far. The barrages have hammered Ukraine’s energy infrastructure, forcing the country’s power companies to scramble to rebuild to avoid outages.

UK-France nuclear cooperation

Britain and France agreed to coordinate their use of nuclear weapons and suggested their nuclear umbrella could cover European allies, as President Emmanuel Macron wrapped up a state visit. The continent’s only nuclear powers are both in NATO, and thus obligated to defend all members, but that commitment does not extend to nuclear weapons. France in particular has traditionally considered its deterrent independent. But in the face of Russian aggression and waning US commitment to defending Europe, that posture has changed. Britain and France have a combined 515 warheads, a fraction of Washington and Moscow’s stocks of 5,000 apiece, but enough to cause terrible devastation.

Trump’s Brazil tariff threat

US President Donald Trump said Brazil would be subject to a 50% tariff, after accusing the country of mistreating former President Jair Bolsonaro. Trump has said that Bolsonaro — who is facing a trial over an alleged coup attempt — was the subject of a witch hunt. Brazil, a rare country with which the US has a trade surplus, has also drawn Washington’s ire after it hosted a summit of the BRICS bloc, with Trump threatening additional tariffs on the group. The standoff may extend longer than other US-Latin America disputes, one expert noted: Brazil’s president may view the dispute as profitable politically, many Brazilians think the case could define the country’s democracy, and Brasília has little reason to capitulate quickly.

China courts Egypt

Chinese Premier Li Qiang arrived in Egypt for a two-day visit, seeking to deepen ties with a BRICS ally that has long been a US defense partner. Li’s trip comes two months after Cairo and Beijing carried out their first joint military exercises, notably with Chinese aircraft taking part. China has in recent years forged industrial and defense ties with several North African nations, and Egypt has been cautiously receptive to Beijing’s overtures, frustrated with US pullbacks but wary of growing too close to a country that many in the region view as excessively transactional. “It’s worth considering at what point all of these transactions start to add up to something more,” a China-Middle East analyst noted.

Houthis sink second Red Sea ship

Yemen’s Houthi militants sank a second cargo ship in the Red Sea in a week. The fighters said they destroyed the Eternity C, killing at least three crew, because it was heading to Israel; the attack came after the Iran-backed group blew up another vessel on Sunday. All shipping between the Suez Canal and the Indian Ocean — about 15% of total maritime trade — must pass through the narrow Gulf of Aden between Yemen and Djibouti, close to Houthi territory. After a period of relative calm since a ceasefire in May, Houthi attacks have begun again in recent weeks. When strikes last peaked in late 2024, cargo traffic through the canal plummeted by around two-thirds, and insurance prices soared.

Kenya leader orders protesters shot

Kenya’s leader ordered police to shoot anti-government demonstrators, as ongoing unrest marks his biggest challenge to date. “Don’t kill them, but ensure their legs are broken,” President William Ruto said, vowing to protect businesses from the ongoing protests. Kenya’s biggest cities have been roiled for days by protesters demonstrating against stagnating growth, soaring inequality, and police brutality. A police crackdown over the past week has killed dozens, while hundreds have been arrested. The economic conditions in Kenya — youth unemployment rate stands at 67% — have turned the country into a tinderbox, with some vowing to protest until Ruto is removed from power.

VdL faces confidence vote

The European Commission president will likely win a no-confidence vote today, but her political troubles are not over. A far-right group of the European Parliament has accused Ursula von der Leyen of engaging in corruption when negotiating access to COVID-19 vaccines, with Hungary’s president joining calls for her to go. Other factions are taking the opportunity to air their own grievances, including left-wing complaints that von der Leyen’s center-right group is too close to the far right, particularly on environmental rules. Her victory is all but assured after the parliament’s socialist grouping agreed to back her in exchange for a concession on social spending, but the episode has left her weakened.

We are ramping up our investment in the Gulf: Matthew Martin — the star Bloomberg business and finance reporter — has joined Semafor as Saudi Arabia Bureau Chief and Global Head of Sovereign Wealth Fund Coverage. Martin brings deep expertise and sharp analysis to unpack money flows, and dive into Gulf wealth funds’ roles in revamping their economies and projecting soft power internationally, including in Africa and elsewhere. He’ll lead our growing team in Riyadh, which is focused not just on the region but its impact on the world beyond — from South Africa to Silicon Valley, and from Lagos to London.

Europe startup flies AI-piloted jet

A European defense-tech startup flew an artificial intelligence-piloted fighter jet and said autonomous combat aircraft could be deployed on the continent this decade. Helsing conducted two Saab Gripen missions over the Baltic, each with a human safety pilot as backup. AI pilots can “get to superhuman performance very quickly,” a company executive said: The system gained a million hours’ experience in just three days, 200 times what a human pilot could gain in a lifetime. The world’s militaries are working on “loyal wingman” uncrewed aircraft to accompany piloted planes, and Helsing thinks human pilots will still be important for decades. But humans react slowly, and sometimes pass out or even die during extreme maneuvers, meaning AI will likely replace them in future.

Sweden’s Strava security gaffe