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North Korean leader Kim Jong Un is growing ever bolder [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( North Korean leader Kim Jong Un is growing ever bolder in the types of missiles he is testing, and how often. A barrage of launches in recent weeks has now led to a firing of the regime’s longest-range rocket since 2017. North Korean state media even published a picture of the Earth it said was taken in space from the missile designed to deliver a nuclear warhead. Key reading: - [Kim Jong Un Blasts His Way Onto Biden’s Foreign Policy Agenda]( - [Camera Mounted on North Korea Missile Takes Snaps From Space]( - [North Korea Appears to Test Biggest Missile in Five Years]( - [How Kim Jong Un Keeps Advancing His Nuclear Program: QuickTake]( - [What an End to the 71-Year Korean War Would Mean: QuickTake]( Kim’s endgame is unknown, but it is clear he is escalating. It’s possible he senses an opportunity as the U.S. grapples with multiple issues including tensions with Russia over Ukraine. For now, President Joe Biden’s administration is simply reiterating a long-held position that the door is open for Kim to return to talks without preconditions. Kim may push for some conditions on the terms for dialogue before anything happens. The number one way North Korea gets attention is by demanding it. The recent pattern suggests Kim may be building toward a test of an intercontinental ballistic missile that can reach across America. That would be the first in more than four years, and an ICBM firing is not something the U.S. can shrug off. North Korea’s allies Russia and China, which have veto power at the United Nations Security Council, have shown little appetite for ratcheting up global sanctions to punish Pyongyang, especially as Biden spars with Vladimir Putin and Xi Jinping over various tension points. For Kim, it’s an opportune time to both bolster his nuclear program and increase his leverage for whenever talks eventually resume. “Kim Jong Un has less to lose by re-escalating tensions,” says Kang Mi-jin, a North Korean defector who now runs an investment company in South Korea that watches the economy of her former home. The tests may take a brief hiatus so as not to spoil the mood for the Beijing Winter Olympics, a key event on Xi’s calendar. But the rockets could fly soon after. — [Jon Herskovitz]( The test-fire of the intercontinental ballistic missile Hwasong-14 in July 2017. Photographer: AFP Contributor/AFP/Getty Images Click [here]( to follow Bloomberg Politics on Facebook and share this newsletter with others too.They can sign up [here](. Global Headlines Diplomatic flurry | Russia said it will answer a written [response]( from the U.S. to its demands concerning Ukraine when Putin deems it “necessary,” as U.S. Secretary of State Antony Blinken prepares to speak by phone with Foreign Minister Sergei Lavrov. Putin is meeting in Moscow with his closest friend in the European Union, Hungarian Prime Minister Viktor Orban, while U.K. Prime Minister Boris Johnson and Dutch Prime Minister Mark Rutte are both expected in Kyiv. The EU’s renewable energy sources are helping [reduce]( its dependence on natural gas, which has soared in price since the middle of last year as the bloc confronts its main supplier, Russia, over Ukraine. More than half of new renewable generation since 2019 has replaced gas power, with the rest displacing mainly nuclear and coal sources. Canada blockade | More than 150 loads of beef are [stuck]( at the U.S. border amid anti-vaccine protests that Prime Minister Justin Trudeau has said include racist imagery and abusive behavior. A blockade of vehicles has been slowing traffic at the crossing between Alberta and Montana for days over the requirement that truckers crossing the border be fully vaccinated. Trudeau meanwhile has tested positive for Covid-19. - The Conservative leader who held Trudeau to a minority government in September faces a caucus [rebellion]( after nearly three dozen lawmakers demanded a leadership review. Explainers you can use - [Europe Is Losing Nuclear Power Just When It Really Needs Energy]( - [China’s Local Governments Are at Risk of a Puerto Rico Moment]( - [Winners and Losers in India’s Budget Aiming to Bolster Growth]( Partygate backlash | The U.K. prime minister faced fresh [fury]( from his Conservative legislators after a report into partying in Downing Street during pandemic lockdowns slammed “failures of leadership and judgment” and criticized “excessive” drinking. London police are now investigating 12 gatherings in government buildings, including in Johnson’s residence. Vaccine gamble | Austria extended a vaccine mandate to police and judges with a new law that will [criminalize]( holdouts. With the opposition rebelling and tens of thousands of protesters regularly thronging Vienna’s streets, the policy is a test for Chancellor Karl Nehammer, in the job for less than two months. - The U.K. is going in the other direction, planning to [scrap]( mandatory vaccines for health-care workers. Best of Bloomberg Opinion - [Biden Can’t Ignore North Korea's Missiles Much Longer: Editorial]( - [Putin Would be MAD to Cut Off All of Europe’s Gas: Javier Blas]( - [Joe Rogan Shows We’re Trapped in Spotify’s Cage: Lionel Laurent]( Covid missteps | With his public approval rating falling to a two-year low, Australian Prime Minister Scott Morrison admitted today his government hasn’t “got everything right” in its handling of the pandemic. As [Ben Westcott]( writes, the Conservative Party leader is [trumpeting]( the country’s robust economy as he seeks to pull off a come-from-behind win in a national election due to be held within months. 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 - Biden said he’s expanding the U.S. [alliance]( with Qatar as he met with the country’s ruler to discuss shoring up energy supplies to Europe and diplomacy with the Taliban. - Four countries asked the EU to reverse a plan to make some natural gas projects eligible for its coveted green label in a last-minute plea, highlighting [divisions]( about how to manage the transition from carbon-based energy. - Japan’s lower house of parliament passed a resolution expressing concern about [Uyghur]( human rights, a move that may anger China three days ahead of the Olympic opening ceremony in Beijing. - Peru’s prime minister [resigned]( yesterday while President Pedro Castillo shuffled his ministers to “renew” his team, having repeatedly made changes to his cabinet since taking office in July. And finally ... Los Angeles has grown and thrived by piping in water from faraway places and, with meager precipitation and [fast-melting]( snowpack the norm, the U.S. city faces a future of mega-droughts. [Brian Eckhouse]( and [Laura Bliss]( report on whether Mayor Eric Garcetti’s plan for heavy investment in water storage, rainwater capture and reclamation will be enough. A stain of red algae in Owens Valley, about 250 miles north of L.A. Photographer: Brian Eckhouse/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