An anxious wait

Vaccines may struggle against omicron. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Days after its discovery, omicron is still whipsawing markets and adding another element of doubt into plans by governments to emerge from the pandemic. After rallying yesterday on hopes the Covid-19 variant may produce only mild symptoms, U.S. and European equity futures slid along with Asian stocks after Moderna’s chief executive officer told the Financial Times that existing vaccines will struggle against the large number of mutations. Key Reading - [How South African Scientists Found the Troubling Omicron Strain]( - [Why We Should Be Wary of Writing Off Omicron Cases as ‘Mild’]( - [Germany Mulls Lockdown on Unvaccinated as Europe Tightens Curbs]( - [Xi Pledges a Billion More Vaccines for Africa in Wake of Omicron]( - [Moderna’s Concerns About Omicron Outlook Spark Market Slump]( While the World Health Organization warned about a possible fresh surge in infections, U.S. President Joe Biden said it wasn’t a cause for panic, yet. In Germany, the incoming vice chancellor called for a nationwide “lockdown for the unvaccinated,” noting cases were already surging even before omicron was detected. The new variant has now been found in more than a dozen countries, and hard facts on how effective vaccines are against it won’t be known for weeks. As [Jason Gale]( explains, reports that omicron wasn’t causing serious illness need to be treated with caution because they may not reflect its severity across a broad range of people. In South Africa, where the initial evidence comes from, infections appear to be hitting mainly the young, even toddlers, while more serious symptoms can take time to develop. Vaccines and prior infections may be providing some protection. Covid in general is more likely to be life-threatening to older people. Thus the renewed urgency in providing boosters in developed nations and vaccines for those in poorer countries without access to shots. Chinese President Xi Jinping yesterday pledged to supply another 1 billion doses to African countries. Until epidemiological studies show how nasty omicron can be, expect anxious times ahead. — [Karl MaierÂ]( A Covid-19 safety sign at London’s Heathrow Airport. Photographer: Jason Alden/Bloomberg [Click here]( to see our Bloomberg Politics website and share this newsletter with others too. They can sign up [here](. Global Headlines Rollout delays | Biden [promises]( cheaper and more accessible care for children, the elderly and disabled once his $2 trillion social spending package passes Congress, yet it will take years to set up programs to deliver on his economic agenda. The risk of delay hangs over the president and Senate Democrats with next year’s midterm congressional elections fast approaching. Peng doubts | A long-time International Olympic Committee member dismissed claims the organization vouched for the safety of Chinese tennis star Peng Shuai to avoid angering Beijing and credited it with getting in touch with her when others couldn’t. Still, as this [story]( lays out, the IOC didn’t address key concerns about Peng, including why others can’t get hold of her. Food prices will probably remain near record [highs]( next year due to consumers stocking up, high energy and shipping prices, bad weather and a strong U.S. dollar, according to Rabobank. “Inflation in this space is almost certainly not just ‘temporary’,” analysts led by Carlos Mera say. Breaking silence | One of Taiwan’s richest businessmen, Douglas Hsu, [pushed]( back against claims he secretly backs the island’s formal independence from China. The chairman of Taipei-based Far Eastern Group, which was hit with fines last week by the Chinese authorities, said in an article he opposes the notion that Taiwan is an independent country and is concerned about rising anti-China sentiment there. - China’s financial [pledge]( to Africa fell for the first time in over a decade, as the world’s second-largest economy tried to avoid criticism about saddling developing nations with unsustainable debt. Best of Bloomberg Opinion - [In Peng Shuai Case, the IOC Has Embarrassed Itself: Adam Minter]( - [Biden’s Democracy Summit Is a South Asian Flub: Mihir Sharma]( - [What’s Worst About Omicron So Far Is Uncertainty: Andreas Kluth]( Inflation fears | Turkey’s economy zoomed past most peers to expand 7.4% in the third quarter, but soaring inflation and a slump in the lira mean the surge could be [short-lived](. The central bank has slashed 4 percentage points off borrowing rates since September, as President Recep Tayyip Erdogan pushes to revive his flagging popularity ahead of 2023 elections by delivering more growth and jobs. Long lines | A bid to turn around South African state companies looted during ex-President Jacob Zuma’s government has been undermined because those responsible for the plunder aren’t being held to account, says the minister who oversees the firms. Pravin Gordhan comments in an [interview]( that while some people have been prosecuted, “there are a whole lot waiting in the queue.” Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - Peru’s President Pedro Castillo said some opposition groups are working to [impeach]( him, as tensions rise with congress just four months into his term. He didn’t identify who was behind the effort or give details of what they are doing. - Honduras’s electoral authority paused publishing results from Sunday’s presidential election, with a partial tally showing leftist opposition candidate Xiomara Castro on track for a [landslide](. - Keir Starmer, leader of the U.K.’s opposition Labour Party, shook up his top team in a surprise reshuffle aimed at capitalizing on Prime Minister Boris Johnson’s [tumbling]( popularity and Conservative Party infighting. - Europe’s top negotiator said [nuclear]( talks with Iran started positively and Tehran is ready to engage in “serious” discussions. - A report aimed at cleaning up a [toxic]( workplace culture in Australia’s parliament and other government offices found that one in three employees had suffered sexual harassment. And finally ... French far-right media pundit Eric Zemmour is [sliding]( in opinion polls amid controversies that may be hurting his chances of becoming president even before he declares his candidacy as soon as today. As [Caroline Alexander]( reports, he returned the gesture and shouted “very deeply” when a woman gave the finger to the firebrand politician in Marseilles. That came after a French magazine claimed Zemmour, 63, had gotten a much younger aide pregnant (his lawyer called the article an invasion of Zemmour’s private life). Zemmour during an interview in London on Nov. 19. Photographer: Hollie Adams/Bloomberg [Bloomberg.com 50% off offer]( Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022