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This Article is From Jul 07, 2017

Balance of Power: Abe's Agenda Under Threat After Tokyo Drubbing

Balance of Power: Abe's Agenda Under Threat After Tokyo Drubbing

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(Bloomberg) -- Shinzo Abe's premiership once seemed to be in cruise control. Now, Japan's prime minister is rethinking his agenda after his worst defeat since coming to power almost five years ago.

Abe's Liberal Democratic Party was humiliated in yesterday's Tokyo's assembly elections by a new populist insurgency led by city Governor Yuriko Koike. To make matters worse, she only defected from Abe's LDP last month.

The prime minister's popularity was already sliding, hit by a spate of scandals involving himself and his government. The Tokyo outcome could see him reappraise his program, particularly a plan for controversial revisions to the country's pacifist constitution. He may also need to open the fiscal taps and shelve an unpopular sales-tax hike.

Before, Abe was on track to become Japan's longest-serving post-war premier. Now, his opponents control Tokyo and rivals may well decide to contest him for the party's leadership before national elections due by the end of 2018.

Much more bad news and Abe's dream of presiding over Tokyo's Olympic Games in 2020 could be in tatters.

Sign up to receive the Balance of Power newsletter in your inbox, and follow Bloomberg Politics on Twitter and Facebook for more.

Global Headlines

U.S.-China ties fray | President Xi Jinping complained in a call with U.S. President Donald Trump that “negative elements” are affecting ties after a series of U.S. moves signaled the early honeymoon between the two leaders was ending. The call was initiated by the American president as he tries to jump-start talks on trade and North Korea, which are sure to be two major topics at this week's Group of 20 summit in Hamburg.

Trump's CNN slam | It's hard to believe relations between Trump and CNN could get any worse but Trump took it to a new level Sunday. He tweeted out a GIF of himself wrestling a person to the ground -- but the person's head was replaced with the CNN logo. CNN responded with a tweet deriding the president's “juvenile behavior” and saying he should start doing his job. The back and forth comes after the cable network retracted a report linking a prominent Trump backer to a Russian bank and three journalists lost their jobs.

Qatar gets another deadline | A Saudi-led coalition granted Doha another 48 hours to comply with a punitive list of demands to end its isolation, extending an initial 10-day deadline. Trump called all the leaders involved in the conflict, and officials from the four-nation alliance said they're hopeful mediation efforts will yield results. Bloomberg's Zainab Fattah lists five ways the crisis could develop if they don't. 

A family dispute hits Singapore's reputation | Prime Minister Lee Hsien Loong apologized to parliament for a family feud that he said has damaged the city-state's reputation. The public spat with his siblings over the estate of their father, late premier Lee Kuan Yew, has escalated into a social media tit-for-tat and riveted the wealthy island state for weeks. That said, the ruling party has rallied behind Lee and he has a strong grip on power.

Britain strikes a softer tone | Theresa May's government has changed its tune on Brexit, striking a more sober and realistic tone weeks after her disastrous election last month. Chancellor of the Exchequer Philip Hammond will tell business leaders today that their concerns over the split will not be dismissed. It's a conciliatory gesture to an audience that's been overlooked, and at times, even disregarded.

Nigeria's missing president | There are increasing concerns that Muhammadu Buhari won't see out his full term as president of Africa's most populous nation. Buhari has been in the U.K. for almost two months for medical treatment, yet there's been no official word about the nature of his illness or even what hospital he's in. His wife Aisha is flying back to London to see him this week after saying last month that he'd soon be back home.

Building better bombs | The world's nuclear powers are spending more and more money to make their arsenals more lethal even as overall stockpiles shrink, the Stockholm International Peace Research Institute said in a report. The report, which highlights U.S. plans to spend $400 billion on upgrades over the next decade, comes as Trump tries to keep Kim Jong Un from becoming a full-fledged member of the nuclear club.

And finally... It's not just Trump who disregards traditional political optics. New Jersey Governor Chris Christie was photographed catching some holiday-weekend rays with his family yesterday -- despite the fact that the beach was closed to the public because of a state government shutdown he ordered. According to NJ.com, Christie and his team shrugged off the controversy. "He did not get any sun," spokesman Brian Murray was quoted as saying. "He had a baseball hat on."

To contact the authors of this story: Andy Sharp in Tokyo at asharp5@bloomberg.net, Brendan Scott in Singapore at bscott66@bloomberg.net.

To contact the editor responsible for this story: Michael Winfrey at mwinfrey@bloomberg.net, Caroline Alexander

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