A perilous juncture

Vladimir Putin’s retaliation for the bombing of the bridge he built to Crimea came swiftly — a barrage of deadly missile strikes on cities a [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Vladimir Putin’s retaliation for the bombing of the bridge he built to Crimea came swiftly — a barrage of deadly missile strikes on cities across Ukraine, including Kyiv. It was the first time the capital has been hit in months, and the first attack since the start of the war when the areas targeted were so central and without military value. Missiles today hit the city’s most popular park, a pedestrian bridge and the headquarters of Ukraine’s largest power company. Key reading: - [Russia Blitzes Ukraine After Putin Blames Kyiv for Bridge Blast]( - [Putin to Meet Top Security Officials as Crimea Bridge Blast Hits Prestige]( - [Eight Years of Fighting Hardened Ukraine’s Army Into a Winner]( - [Why Russia’s Nuclear Threats Are Difficult to Dismiss]( - Follow our rolling coverage of the war in Ukraine [here](. Putin is under pressure to escalate from nationalists at home given a series of humbling military setbacks in Ukraine. The strikes follow the appointment of a new commander of his invasion forces, who previously oversaw the destruction of Aleppo by Russia’s military in Syria. There’s little sign of Putin backing down in the face of international condemnation, creating a particularly dangerous juncture in the war as Kyiv’s US and European allies weigh responses to the attacks. Group of Seven leaders will discuss Russia’s missile attack in an emergency video conference tomorrow that will also be joined by President Volodymyr Zelenskiy. Ukraine hasn’t claimed responsibility for Saturday’s bombing of the Kerch Strait bridge that connects Russia to Crimea. It’s a critical road and rail route for moving troops and munitions to the Kremlin’s forces in southern Ukraine that face an intensifying counteroffensive from Ukrainian troops. The bridge’s obvious military value made the operation a personal embarrassment for Putin, coming a day after his 70th birthday, even as Russian officials rushed to declare the link operational again. He accused Ukraine of a “terrorist” attack. The Russian leader held a meeting of the country’s Security Council today and warned of further possible strikes on Ukraine. Yet his options are limited. With his military on the back foot on the battlefield, Putin appears to be resorting to attacks on cities and civilian infrastructure in an attempt to break Ukraine’s resolve. So far there’s little sign of that happening. — [Marc Champion]( Rescue workers at the scene of a Russian attack in Kyiv on Monday. Photographer: Adam Schreck/APPhoto UK politics are entering a new era. Get the latest in your inbox with [The Readout]( from Allegra Stratton. And if you’re enjoying this newsletter, click [here]( to sign up for Balance of Power. Global Headlines Growing complaints | While President Xi Jinping is set to trumpet his strict measures to control Covid-19 at China’s twice-a-decade Communist Party congress, signs are emerging that the patience of many people is [wearing thin](. Party mouthpiece the People’s Daily seemed to acknowledge the growing complaints in a commentary today that asked people to retain their confidence in Covid Zero. - National cases [climbed]( to the highest in almost two months and concerns about widening lockdowns are rippling across the financial hub of Shanghai. MP challenge | Britain’s embattled prime minister, Liz Truss, faces a new round of political [danger]( this week with the return of Parliament after recess. Restless Conservative lawmakers, most of whom didn’t vote for her to become party leader, are preparing to challenge the premier over plans to cut welfare benefits, ease planning rules and ramp up borrowing. - Chancellor of the Exchequer Kwasi Kwarteng will [bring forward]( the announcement of his medium-term fiscal plan and accompanying economic forecasts to Oct. 31 in a bid to calm financial markets. The US’s new [restrictions]( on technology exports to China could undercut Beijing’s ability to develop wide swaths of its economy, from semiconductors and supercomputers to surveillance systems and advanced weapons. Chinese state media and officials over the weekend raged against the action, warning of economic consequences and stirring speculation about potential retaliation. Nuclear threats | Kim Jong Un said he launched a new ballistic missile and simulated “tactical” nuclear strikes during recent military drills, in a sign that North Korea is preparing for its first [atomic test]( in five years. Kim described a series of exercises since Sept. 25, which included the first missile fired over Japan in five years, as a “severe warning” to the US and its allies, state-run media reported. Best of Bloomberg Opinion - [India’s Ukraine Balancing Act Is Getting Trickier: Mihir Sharma]( - [Biden’s Chip Limits Mark a War of High-Tech Attrition: Hal Brands]( - [Even a Lula Win May Not Restore Brazil’s Forests: David Fickling]( Opposition slap | Chancellor Olaf Scholz’s Social Democrats retained the German state of Lower Saxony in a regional [election]( yesterday against the backdrop of a national energy crisis. The main opposition Christian Democrats fell to a historic defeat, a blow to leader Friedrich Merz and his tack to the right. Scholz’s SPD will probably be able to govern the state with the Greens, its coalition partner at federal level. - Read about the [strain]( that Scholz is under as he vies to guide Europe’s biggest economy through multiple headwinds. Explainers you can use - [How Big Food Aims to Fill Europe’s Shelves as Gas Crisis Deepens]( - [Why Saudi Arabia Rebuffed Biden’s Pleas for More Oil]( - [Why ‘NOPEC’ Keeps Arising as a US Answer to OPEC]( No letup | Iran’s protests sparked by the death of 22-year-old Mahsa Amini entered a fourth week, with rights groups reporting security forces killed at least four people over the weekend. President Ebrahim Raisi addressed pro-government students at a prominent women-only university yesterday in an appearance quickly [overshadowed]( by the emergence of videos showing some female students chanting “Raisi get lost” and “death to the oppressor.” Anti-government protests in Tehran on Saturday. Source: AFP/Getty Images 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 - Argentina President Alberto Fernandez is expected to name three new ministers today as [political infighting]( within his ruling coalition reignites. - The US warned Hong Kong that assisting sanctioned individuals could threaten its status as a financial hub, after a [megayacht]( linked to one of Russia’s richest men docked in the city’s harbor. - Thailand’s Prime Minister Prayuth Chan-Ocha ordered a [clampdown on drugs]( after a mass killing that left 37 people dead sparked calls for tougher policies. - Dozens of major Australian military equipment acquisitions are running billions of dollars [over budget]( and years behind schedule, the defense minister said. - Malaysian Prime Minister Ismail Sabri Yaakob dissolved parliament today, paving the way for [elections]( this year as his ruling party seeks to strengthen its position following a run of successful local polls. Thanks to the 37 people who answered Friday’s quiz and congratulations to Annabelle Simpson, who was the first to name the Democratic Republic of Congo as the country whose president rejected a US request to halt bidding on oil blocks in one of the world’s biggest tropical rainforests. And finally ... Brazil’s two presidential candidates pushed back against a series of viral videos on social media that sought to cast doubt on their respective faiths by making false claims of [Satanism](, Freemasonry and even cannibalism. President Jair Bolsonaro responded by attending the country’s largest religious festival Saturday, while challenger Luiz Inacio Lula da Silva posted a statement saying that he had not cut a deal with the devil, and later participated in an event with Franciscan friars. Pilgrims in a procession during the Cirio de Nazare in Belem, Brazil’s largest religious festival, which Bolsonaro attended on Saturday. 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