A shared interest in ending Putin’s War

For Xi, a prolonged conflict brings instability to global markets. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( The thought of Joe Biden and Xi Jinping working together to pressure Vladimir Putin seems absurd on some levels. The Chinese leader agreed on a “no limits” friendship with Putin last month, and his government declined to condemn Russia after the invasion of Ukraine. Instead it has blamed the U.S. for triggering the war by expanding NATO. The White House has been similarly distrustful, repeatedly warning Beijing against helping Putin with military or financial support to evade sanctions. Key reading: - [Biden Looks to Raise Global Pressure on Putin With Xi Call]( - [Biden Team Hardens View of China Tilting Toward Putin on Ukraine]( - [Congress Takes Aim at China to Keep Up Pressure on Russia]( - [China’s Goal With Putin Is to Resist U.S. Without Economic Pain]( - [Russia’s War in Ukraine Is Choking Flow of World’s Commodities]( - Follow the latest with our [rolling coverage](. Yet there’s some reason for optimism ahead of today’s Biden-Xi call: They share a common interest in quickly ending the war. China has recently recalibrated its position, affirming it would “never attack” Ukraine and emphasizing the need to halt civilian casualties. For Xi, a prolonged conflict that brings instability to global markets — and the threat of U.S. sanctions on China — only stands to weaken him before he secures an expected third term in power this year. The Biden administration would also benefit from a swift end to fighting, both from the prestige from helping Ukraine survive and potentially lowering commodity costs to bring down food and gas prices. The trick is how to find common ground. When Biden took over from Donald Trump, his administration highlighted the need to both compete with China and to cooperate where interests align. So far on Ukraine the White House has primarily jawboned China into isolating Russia, which has only generated angry reprisals from Beijing. A more cooperative tone emanating from the Biden-Xi call could not only help end the war, but also provide a way forward to improve overall ties between the world’s biggest economies. — [Daniel Ten Kate]( Lines of pre-dug graves at a cemetery on the outskirts of Odesa, Ukraine, on Thursday. Photographer: Jonathan Alpeyrie/Bloomberg Sign up [here]( for the Special Daily Brief: Russia’s Invasion of Ukraine and click [here]( for this week’s most compelling political images. Global Headlines Nuclear warning | Putin may brandish threats to use [nuclear]( weapons against the West in response to stiff Ukrainian resistance to his invasion and the impact of sanctions, according to a new Pentagon assessment. “As this war and its consequences slowly weaken Russian conventional strength,” Defense Intelligence Agency director Scott Berrier said, “Russia likely will increasingly rely on its nuclear deterrent to signal the West and project strength.” - NATO military commanders are working the phones with their Russian counterparts to make sure the U.S. and its allies don’t get dragged into a war over a [misunderstanding]( on the Ukrainian border. Covid shift | Xi vowed to reduce the economic impact of his Covid-fighting measures, the first time he has done so at a Communist Party Politburo meeting since the start of the pandemic in 2020. His comments signal a [shift]( in a longstanding strategy that has minimized fatalities but weighed heavily on the world’s second-largest economy. Hong Kong’s current [outbreak]( of Covid-19 has been so deadly that more people have died in the city than the official death toll in the rest of China. The grim tally is likely to continue climbing for weeks. Cut adrift | P&O Ferries are stuck in port amid a labor dispute that threatens to pile more [pressure]( on British trade with continental Europe. The biggest ferry operator on the key Dover-Calais route fired all its 800 sailing staff yesterday, citing the negative impact on its business of Brexit and the pandemic. With the U.K.’s already stretched supply chains now under further strain, the dispute is rapidly becoming an issue for Britain’s government. - Today is the [deadline]( for bidders to make indicative offers for Chelsea after sanctioned Russian owner Roman Abramovich was forced to sell the football club. Best of Bloomberg Opinion - [Putin Has Finally Killed German Exceptionalism: Andreas Kluth]( - [There’s a Reason India Is Losing Faith in the West: Mihir Sharma]( - [How Four Powerful Brothers Broke an Island Nation: Ruth Pollard]( Brexit bother | Frustrated with the lack of progress in talks to amend the Brexit agreement on Northern Ireland, the U.K. is stepping up [preparations]( to suspend parts of the deal it struck with the European Union, Joe Mayes reports. Biden yesterday reiterated his warning to the U.K. government not to do anything that could endanger peace in Northern Ireland. Explainers you can use - [Why China Has U.S. Congress Focused on Computer Chips]( - [What to Know About Roman Abramovich’s Sale of Chelsea]( - [A Once Radical Idea to Close Wealth Gap Is Actually Happening]( Pressure intensifies | Pakistan’s prime minister, Imran Khan, is facing increasing calls to [resign]( as more lawmakers from his ruling Tehreek-e-Insaf party desert him. Criticized by the opposition for mismanaging the economy and overseeing souring ties with the U.S., the 70-year-old leader will have a hard time surviving a no-confidence vote expected this month. Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - The U.S. House of Representatives voted [overwhelmingly]( to end regular trade relations with Russia in a move that would allow the U.S. to sharply raise tariffs on Russian goods. The bill now goes to the Senate. - Emmanuel Macron cast himself as a wartime leader as he laid out his [manifesto]( just three weeks before the French presidential election, suggesting he was the safest choice for voters in troubled times. - The U.S. could soon see Covid-19 cases rise again and vulnerable people are likely to need a [fourth]( vaccine dose, presidential health adviser Anthony Fauci said. - Brazilian President Jair Bolsonaro is unveiling a $32 billion social-spending [package]( as he redoubles efforts to boost support ahead of this year’s elections. - Peru’s top court ordered the [release]( of former President Alberto Fujimori from prison. He was sentenced to 25 years in 2009 for death-squad killings committed during his government’s 1990s war with the Maoist Shining Path guerrillas. And finally ... Thirty years after Crystal Lau’s parents fled mainland China for Hong Kong, she and her husband, Davy, have made a longer migration — to the northern English city of Sheffield. But even there, the [divisions]( wracking the Asian financial hub followed them. When they posted online about attending a pro-democracy rally in the U.K., they and their food-delivery business became a target for angry mainland Chinese. Crystal and Davy Lau. Photographer: Carolyn Mendelsohn/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. 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