• Germany and France endorsed an E.U. effort to simplify subsidy rules and provide additional aid to specific economic sectors, proposals aimed at helping economies in the bloc compete with U.S. subsidies passed as part of the Inflation Reduction Act. (The Wall Street Journal) The stage seems set for some trade tension nonetheless as U.S. states including Michigan, Georgia and Ohio have sent delegations to Europe in an attempt to lure companies across the Atlantic, touting the U.S. subsidies in question. (Financial Times)
• The Ukrainian government dismissed several top officials, including Deputy Defense Minister Viacheslav Shapovalov, amid an expanding corruption scandal. The firings came hours after Ukrainian President Volodymyr Zelenskyy said government officials would be prohibited from traveling abroad for vacation or any other unofficial purpose, a move that appeared to reflect Zelenskyy’s goal of reassuring Western allies that he is tackling graft. (The New York Times)
• Turkish President Recep Tayyip Erdogan said Sweden “can no longer expect any charity from us regarding their NATO membership application” following a protest in front of the Turkish embassy in Stockholm at which a copy of the Quran was burned. (The Associated Press) The evolving rift is serious enough that Finnish Foreign Minister Pekka Haavisto said Helsinki may seek to join NATO alone “if it turns out that Sweden’s application is stalling,” despite previous commitments to join the alliance in tandem. (The Associated Press)

Happening today:

• 9:30 a.m. EST CSIS hosts a debate on the prospects of Sino-American economic cooperation as part of its 7th annual ChinaPower Conference.

Brazil’s Reputation Suffers Little in Latin America Following Brasilia Riots

Morning Consult

Jordan, Latvia and Israel Shake Up Diplomatic Corps After “Shadow Diplomats” Investigation

Will Fitzgibbon, ProPublica 

After receiving questions from journalists, governments announced the termination and reviews of honorary consuls tied to controversies or accused of wrongdoing.

Oil market braces for fresh turmoil as EU prepares to cut off Russian diesel

David Sheppard, Financial Times 

Import curbs that take effect within weeks could drive up prices or lead to shortages, traders warn.

China property bonds rebound on support measures from Beijing

Hudson Lockett and Andy Lin, Financial Times 

Efforts to bolster confidence in the sector draw some foreign investors back to developers’ dollar debt.

Marcos calls Philippine food inflation an ’emergency situation’

Cliff Venzon, Nikkei Asia 

President signals need for more imports to stem price rises.

US Confronts China With Evidence of Companies Aiding Putin’s War

Peter Martin and Jenny Leonard, Bloomberg 

Biden team sees evidence of non-lethal aid going to Russia.

China’s record $2.6tn rise in savings fuels ‘revenge spending’ hopes

Cheng Leng and Hudson Lockett, Financial Times 

Doubts linger over consumers’ willingness to deploy ‘excess’ deposits.

Estonia and Latvia remove Russian ambassadors as tensions rise

Emma Anderson, Politico 

Moscow accused Tallinn of ‘Russophobia’ and said its ambassador must leave next month.

Turkey condemns Quran protest in the Netherlands

The Associated Press

Turkey’s foreign ministry said Tuesday it summoned the Dutch ambassador following a demonstration targeting Islam’s holy book, days after a similar protest in Sweden tensed relations.

Bulgaria to hold 5th election in 2 years after talks fail

The Associated Press 

Bulgaria will hold another parliamentary election — its fifth in two years — after the Socialist Party on Tuesday announced that it had failed to form a government and had returned the unfulfilled mandate to the country’s president.

Russia’s War Breathes Life Into Radio Free Europe/Radio Liberty

Matina Stevis-Gridneff, The New York Times 

Radio Free Europe/Radio Liberty, a news network originally set up as a C.I.A. operation early in the Cold War, is experiencing a renaissance and making a case for its independence.

Brazilian police name alleged ‘mastermind’ behind murders of Dom Phillips and Bruno Pereira

Tom Phillips, The Guardian 

Police chief says Rubens Villar Coelho, whose nickname is Colômbia, ordered the murders of the British journalist and Brazilian Indigenous expert.

Explainer: What Brazil and Argentina’s ‘currency union’ really means

Marcela Ayres, Reuters 

Brazil and Argentina sparked some excitement on Sunday over the possibility of a potential “currency union”, though the two countries are unlikely to ditch the real or peso any time soon.

Venezuela calls off Maduro meeting with Lula, Brazil govt says

Lisandra Paraguassu, Reuters 

Venezuela has decided to call off a previously arranged meeting between President Nicolas Maduro and his Brazilian counterpart Luiz Inacio Lula da Silva on Monday, Lula’s press office said.

Ex-president Obasanjo and Nigeria’s elites trade pre-election verbal blows

David Pilling, Financial Times 

Bola Tinubu and Atiku Abubakar are the frontrunners to be next leader of country of 210mn people.

Burkina Faso orders French troops to leave the country

Aanu Adeoye, Financial Times 

Military junta says domestic forces will defend against Islamists amid claims of ties to Russia.

US and Israel launch largest military exercise ever despite concerns over Netanyahu’s government

Oren Liebermann, CNN 

The US and Israel launched their largest joint military exercise ever on Monday, sending a clear signal to Iran and underscoring the strength of their alliance despite concerns over the composition of the new Israeli government which includes ultra-nationalist and ultra-religious parties.

Nigeria bets on Chinese-funded port to drive economic growth

Chinedu Asadu, The Associated Press 

Nigerian President Muhammadu Buhari has marked the opening of a $1.5 billion, Chinese-funded deep seaport in the commercial hub of Lagos that authorities hope will help grow the West African nation’s ailing economy.

China is ‘barrier’ to ending Zambian debt crisis, says Janet Yellen 

Joseph Cotterill, Financial Times 

US Treasury secretary wants progress from Beijing on deal that has taken ‘far too long’ to resolve.

Inflation Is So High in Egypt That Eggs Are a Luxury

Vivian Yee, The New York Times 

After months of punishing inflation and a plummeting currency, Egyptians are growing louder about the crisis. In exchange for a bailout, the I.M.F. is imposing stern conditions on the government.

Extreme Israeli group takes root in US with fundraising bid

Uri Blau and Tia Goldenberg, The Associated Press 

An Israeli group raising funds for Jewish extremists convicted in some of the country’s most notorious hate crimes is collecting tax-exempt donations from Americans, according to findings by The Associated Press and the Israeli investigative platform Shomrim.

Mike Pompeo dismisses ‘faux outrage’ over murder of Jamal Khashoggi

Martin Pengelly, The Guardian 

Former Trump secretary of state claims US media depicted Washington Post columnist as ‘a Saudi Arabian Bob Woodward’

Former FBI agent charged with violating sanctions by working for Oleg Deripaska

Joe Miller et al., Financial Times 

US alleges he also assisted Russian oligarch by helping to investigate a rival.