Influence lost

[Bloomberg]( Follow Us [Get the newsletter]( Days after he exhorted supporters to “fight” to keep him as U.S. president, Donald Trump has officially [conceded]( to Joe Biden and condemned the violent storming of Capitol Hill. Even if he leaves relatively quietly in 12 days (Biden’s inauguration ceremony is expected to be a low-key affair given the pandemic, though more protests are possible), the fallout from the post-election period on America will be immense. It has also highlighted the challenges the U.S. faces in rebuilding its global reputation. Biden has promised a reset with allies and a firmer tone with antagonists. That will come as a relief to longstanding friends in Europe and elsewhere. One of the biggest selling points for America’s global leadership has been its success as a democracy. That created something known as “[American exceptionalism](,” allowing it to call out other countries for human rights abuses and the state of their domestic politics. Exceptionalism was in decline well before Trump. But as [Marc Champion](writes, the violence at the Capitol and Trump’s repeated attacks on America’s electoral process and its institutions have hastened its death. It will be harder for the U.S. to take the higher ground against China, Russia, Turkey and others. And even as Biden pledges to work with allies on security, climate change and trade, things can’t just go back to what some perceived as normal. Take the European Union’s new investment treaty with Beijing. As [this story]( explains, the deal is a message that Europe won’t automatically cede the floor to the U.S. on global issues. That includes dealing with potentially the biggest challenge to the U.S.: China. — [Rosalind Mathieson]( A Trump supporter holds a bust of him after he and hundreds of others stormed the U.S. Capitol building. Photographer: Roberto Schmidt/AFP via Getty Images [Click here]( for this week’s most compelling political images and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines [New role]( | Chuck Schumer is set to preside over the narrowest possible majority of the U.S. Senate, which will require him to keep his Democratic caucus united while cajoling Republican support for legislation central to Biden’s priorities. His success will hinge on building consensus in a chamber still reeling from this week’s mob violence and whether he can exploit Republicans’ widening disaffection with Trump’s tactics, [Mike Dorning]( and [Laura Litvan]( write. - Trump has prepared a sweeping list of individuals he’s hoping to [pardon]( before he leaves, including senior White House officials, family members, prominent rappers — and possibly himself. [Cabinet departures]( | Education Secretary Betsy DeVos became the second cabinet member, after Transportation Secretary Elaine Chao, to resign over the violence by Trump supporters at the U.S. Capitol. Yet as [Jennifer Jacobs]( and [Nick Wadhams]( report, most senior staff, including National Security Advisor Robert O’Brien, White House Counsel Pat Cipollone and Deputy Chief of Staff Chris Liddell, have so far decided [against]( quitting, given concern about creating further instability if they left early. DeVos listens as Trump speaks during the National Teacher of the Year reception in 2018. Photographer: Al Drago/Bloomberg [Road worriers]( | A week after Brexit, the main road to Dover is so quiet officials closed half of it yesterday to pick up litter without causing delays. But, as [Joe Mayes]( reports, many truckers are still warning of chaos as they struggle to adjust to the paperwork required by Britain’s departure from the EU, saying drivers are being held up for hours because they lack the right documents. - Read how Marks & Spencer’s supply of beloved [candies]( to Ireland, such as Percy Pig sweets, is under threat, as evidence mounts that Brexit is putting more strain on U.K. retailers. [Landmark decision]( | A South Korean court ruled Japan must compensate women forced to work in World War II-era military brothels, a move that will inflame tensions between the U.S. allies just before Biden takes office. In what’s thought to be the first decision ordering Japan to pay damages to what are known as “comfort women,” the court ordered payments equivalent to $91,000 for each surviving victim or the families of those who’ve died. [Seeking allies]( | Saudi Arabia’s Crown Prince Mohammed bin Salman has decided that reconciliation is better than conflict as threats from Iran worsen, the economy weakens and Biden, who’s promised to treat the kingdom as a “pariah,” prepares to take office. First came his move during a televised ceremony in the Saudi town of Al-Ula to end a painful and costly split with Qatar, then the announcement of a cut in oil output by a million barrels a day to support prices for fellow producers. Paid Post [QuickBooks Online]( is designed to slash the time you spend managing your business finances by helping you create invoices, track cash flow, and so much more with an affordable monthly subscription. No software installation needed. Get organized now! [Save 50% off Quickbooks Online today](. Intuit Quickbooks What to Watch - Germany reported the most daily Covid-19 [fatalities]( since the start of the pandemic, Brazil’s death toll surpassed 200,000 and the U.K. and Australia [toughened]( controls on international travelers. - Facebook, Twitter and Google face pressure from U.S. lawmakers, activists and civil rights groups to enact tougher policies and more forcefully [purge]( misleading content and accounts — including those held by Trump. - Kim Jong Un pledged to [improve]( North Korea’s external relations, in some of his first remarks on foreign affairs since Biden’s win. Pop quiz, readers (no cheating!). Which country topped the list of 21 nations that curbed their citizens’ web access last year? Send your answers to balancepower@bloomberg.net. [And finally]( ... Another year of record-high heat punctuated a decade-long increase in temperatures that has put global economies on the brink of climate tipping points, EU scientists said. As [Jonathan Tirone]( reports, even with pandemic lockdowns, greenhouse gas emissions continued to accumulate in the atmosphere, pushing the world closer to breaching the 1.5 degree Celsius warming threshold that models predict will lead to more frequent superstorms and higher sea levels. Source: Bloomberg  You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022