Tidal wave

The skyrocketing level of infections is sparking worldwide disarray. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Anyone who bet that 2022 would bring relief from the pandemic should ask for their money back. Three days in, and the U.S. set a global daily record of more than 1 million Covid-19 cases yesterday as the omicron variant sweeps the country. While there is evidence that omicron may be milder than the previous delta strain, skyrocketing infections are causing havoc and forcing reluctant governments to consider imposing new measures on exhausted citizens. Key reading - [U.S. Sets Global Daily Record of Over 1 Million Virus Cases]( - [A Dozen Days of Lockdown Spurs Angst in Chinese City of Xi’an]( - [Omicron’s Mild Infections Hint at Less-Severe Phase of Pandemic]( - [Hong Kong Mandate, Eurasia Warning, U.S. Record: Virus Update]( - [Germany Girds for Omicron With Steps to Shore Up Hospitals]( Companies, too, are reeling from the impact, with return-to-office plans ripped up. Global travel is in disarray with thousands of flight cancellations. Healthcare systems are again at risk of being overwhelmed as staff shortages add to existing stresses. With supply chains also under strain, economies are bracing for the impact. Germany’s government is due to consider extra measures this week that could further weigh on Europe’s biggest economy. Countries that are still acting as if the pandemic is over or which don’t have the resources to handle a fresh explosion of cases are a potential time bomb. New Delhi announced curfews today to curb omicron’s spread in the Indian capital. In China, posts are appearing on social media critical of the government as shortages of food and medical care worsen in Xi’an, a city of 13 million that has been under lockdown for almost two weeks. China could retain border curbs for the entire year, with omicron likely to strengthen Beijing’s resolve to stick to its Covid Zero policy, according to Goldman Sachs. If this is Covid’s last hurrah, it’s a doozy. — [Alan Crawford]( Travelers wait for Covid-19 tests at Newark Liberty International Airport yesterday. Photographer: Christopher Occhicone/Bloomberg [Click here]( to follow Bloomberg Politics on Facebook and share this newsletter with others too. They can sign up [here](. Global Headlines Critical decision | U.S. Attorney General Merrick Garland must weigh whether to indict former President Donald Trump and/or his top advisers over the Jan. 6 Capitol riot as the Justice Department continues to fend off charges of politicization. [Chris Strohm]( outlines Garland’s dilemma [here](. - Trump’s two eldest children were subpoenaed by New York authorities probing whether his real-estate business [manipulated]( the value of key assets for tax and insurance purposes. 5G brouhaha | AT&T and Verizon Communications agreed to a two-week delay in rolling out a new 5G service that U.S. airlines said might [interfere]( with aircraft electronics and pose a safety hazard. The decision came after a flurry of calls directed at the industry and the White House from aviation groups seeking a delay and threatening legal action. Filibuster targeted | U.S. Senate Majority Leader Chuck Schumer will [push]( this month to change the chamber’s filibuster rule that requires 60 votes so Democrats can overcome Republican opposition to approving voting-rights legislation. The Capitol riot and moves by more states to tighten rules on balloting underscore the threat to democracy, he said. The European Union is grappling with an energy supply crunch that’s caused gas prices to more than quadruple from last year’s levels and left it at the mercy of the weather and Russian President Vladimir Putin. Read more [here]( about a crisis that’s been years in the making. Rum deal | A Taiwanese company reportedly bought 20,400 bottles of Lithuanian rum that China refused to import, to show support for the Baltic nation as it [clashes]( with Beijing. The EU has told the World Trade Organization that China slapped “unanounced sanctions” on its member state after Taiwan opened a representative office in Vilnius that Beijing says violates the one-China principle. Best of Bloomberg Opinion - [Explain Jan. 6 for Democracy, Not Democrats: Jonathan Bernstein]( - [China Economic Development Model Shows Cracks: Tyler Cowen]( - [The World Doesn’t Need Financial Hubs Anymore: Paul J. Davies]( Big blaze | Firefighters finally extinguished a blaze at South Africa’s parliament buildings after it flared again in high winds yesterday. [Read more here]( about the extensive damage caused by the fire, which officials have charged a 49-year-old suspect for starting. 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 - China’s anti-graft [crackdown]( has netted more than 20 officials as authorities step up scrutiny over the $54 trillion financial system at a time of turmoil in the property market. - Brazilian President Jair Bolsonaro’s condition has improved and he has no fever or abdominal pain. He’s being treated for a possible intestinal obstruction, another complication from his campaign-trail [stabbing]( in 2018. - Beijing called on nuclear powers to expand discussions on global security to include [issues]( like outer space, missile defense and AI, after a rare multilateral pledge to temper the risks of nuclear war. - Venezuelan opposition parties extended Juan Guaido’s mandate as interim president, but in a more limited capacity that deals a [blow]( to the U.S.-backed effort to confront President Nicolas Maduro. - Hong Kong activist Chow Hang Tung will serve nearly two years in prison over her role in a banned [vigil]( commemorating the 1989 Tiananmen Square crackdown. And finally ... The United Arab Emirates is at risk of being placed on a global watchdog’s list of countries with shortcomings in [combating]( money laundering and terrorist financing, despite its push to stamp out illicit transactions. As [Ben Bartenstein]( reports, the Financial Action Task Force is leaning toward adding the UAE to its “gray list.” Visitors at the Expo 2020 exhibition in Dubai. Photographer: Christopher Pike/Bloomberg 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