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Balance of Power
Switzerland has proposed hosting Ukraine peace talks
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To win back Donald Trump’s favor, Switzerland is seeking a return to an old strength: peacemaking.

Slapped with a 39% tariff on its imports into the US, among the world’s highest levies, Bern has offered to host a conference to end the war in Ukraine, including the attention-grabbing promise that Russian President Vladimir Putin would be safe from arrest.

The proposal — already endorsed by European leaders including France’s Emmanuel Macron — goes beyond a revival of its role as a global mediator.

With Trump eyeing a Nobel Peace Prize yet scrambling to fulfil his election promise of a quick end to the conflict, Switzerland sees a chance to help the US president out of his predicament.

National flags in Geneva on Aug. 1.  Photographer: Andrew Kravchenko/Bloomberg

It’s an opportune moment to win points amid fraught negotiations over punitive tariffs on its export-dependent economy, and another example of a diplomatic strategy gaining momentum across the globe.

Governments have made an array of concessions and overtures to notch a better deal with Washington, or to simply please Trump.

The UK dropped a demand for Apple to open a backdoor to US user data to finalize its trade agreement, just hours after Prime Minister Keir Starmer visited the White House. Similarly, Canada in June withdrew a digital tax affecting US big tech that had infuriated Trump in an effort to restart talks.

That coveted Nobel is a common approach. Several leaders have nominated Trump for the award, including those in Pakistan — amid its dispute with India — and in Cambodia, after its clash with Thailand. Israeli Prime Minister Benjamin Netanyahu used it to cement his bond with the US president during a meeting last month.

Options are limited for the Swiss, who already impose close to no levies on the US barring some agricultural products. Pharma exports driving a surplus in goods trade are too important for its own economy for them to simply be avoided.

And so, Swiss Foreign Minister Ignazio Cassis’ peace-talks invitation may be a sign of what’s to come.

To ditch Trump’s tariffs, nations will have to get creative. Levin Stamm

Trump and Netanyahu during a dinner at the White House on July 7. Photographer: Al Drago/Bloomberg

Global Must Reads

US Vice President JD Vance said negotiations on ending Russia’s war in Ukraine are focused on security guarantees for Kyiv and territory Moscow wants to control, including land it isn’t occupying, as the White House tries to broker a peace deal. European leaders are discussing a security guarantee that would commit Ukraine’s allies to decide within 24 hours whether to provide military support if it’s again attacked by Russia.

WATCH: Anthony Halpin reports on the plans for peace in Ukraine on Bloomberg TV.

India and Russia are looking to increase their annual trade by about 50% over the next five years to reach $100 billion, seeking to reduce duties as both countries see mounting tensions with the US, External Affairs Minister Subrahmanyam Jaishankar said. Russia is the Asian nation’s fourth-largest trading partner, while India — which has edged away from Washington in the face of tariff threats — is Moscow’s second-largest.

Israel’s government has ordered a military takeover of Gaza City in what Netanyahu described as a final push to topple Hamas after almost two years of war. Click here for an explainer on the takeover plan that’s controversial among some of Israel’s allies in Europe, who worry about further harm to Gazan civilians, as well as for many Israelis fearing it will endanger the lives of their soldiers and the remaining hostages in the territory.

North Korea has quietly built and operated a sprawling long-range missile base near the Chinese border that stores Kim Jong Un’s most advanced strategic weapons, according to a report by the Center for Strategic and International Studies. The complex was mostly operational by 2014 and appears to have been continuously developed since, demonstrating the regime’s ongoing efforts to advance its nuclear-strike capabilities.

Militias in eastern Democratic Republic of Congo have committed massacres, ethnically targeted killings and gang rapes, two human-rights groups said. Rwanda-backed M23 rebels were allegedly responsible for widespread atrocities in the region, including at least 141 executions in July alone, according to Human Rights Watch. Congolese government-backed militias also allegedly took part in multiple gang rapes in the region, according to a separate report by Amnesty International.

Brazil’s former president, Jair Bolsonaro, considered requesting political asylum in Argentina, according to a draft letter on his phone that forms part of evidence federal law enforcement see as proof he planned to flee the country to avoid a future arrest.

Argentinian President Javier Milei and Bolsonaro during a conference in Brazil in July 2024. Photographer: Arthur Menescal/Bloomberg

Chinese President Xi Jinping called for his government to tighten its ethnic-assimilation campaign during a rare visit to Tibet, throwing a spotlight on a region that’s also been a source of tension with India even as the rivals improve ties.

Taiwan has proposed stepping up defense spending next year, after Trump called on the democracy to do more to protect itself from China’s threats.

Trump’s campaign to oust Federal Reserve Governor Lisa Cook, if successful, would give him the opportunity to exert more influence over the US central bank by securing a majority on its seven-member board of governors.

Is Economic Self-Sufficiency a Myth? On this week’s Trumponomics, journalist and author Ben Chu explains why economies — and particularly the US — shouldn’t take globalization for granted. Listen on Apple, Spotify or wherever you get your podcasts.

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

Trump has homed in on India’s purchases of Russian crude, demanding its refiners stop buying the barrels. His trade adviser, Peter Navarro, and Treasury Secretary Scott Bessent have gone further, centering criticism on “India’s politically connected energy titans” and accusing them of war profiteering. While neither named the billionaires in question, the man at the heart of the storm is unquestionably Mukesh Ambani, whose oil-refining giant Reliance is now the largest single buyer of Russian crude in India.

And Finally

Water scarcity is a growing concern across much of Europe, with more frequent droughts driven by climate change exacerbating problems caused by aging infrastructure. In Bulgaria, a network largely built four decades ago by the communist government is poorly maintained and resources badly managed, while modernization is sluggish and underfunded. As a national crisis escalates, bathing, flushing toilets and washing clothes and dishes are now difficult from around June to September for as many as half a million people in roughly a third of the country.

A makeshift sink and bucket to collect the water in a yard in Morava. Photographer: Michaela Vatcheva/Bloomberg

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