Putin’s strikes and Truss’s humiliating U-turn: Weekend Reads

Russia hit Kyiv and other cities with an intense barrage of missile strikes after President Vladimir Putin accused Ukraine of carrying out a [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Russia hit Kyiv and other cities with an intense barrage of missile strikes after President Vladimir Putin [accused]( Ukraine of carrying out an attack that badly damaged a key bridge linking annexed Crimea to the Russian mainland. British Prime Minister Liz Truss [fired]( her friend and chancellor of the Exchequer, Kwasi Kwarteng, in a bid to stabilize markets roiled by her government’s plans to slash taxes. The move, however, still leaves her own job exposed. In the US, races to control the Senate in next month’s midterm elections are tightening, while President Joe Biden [warned]( of risks to global democracy as his government turns the screws on China’s economy. And Chinese President Xi Jinping is aiming to break some key decades-old rules to stay in power, even as [challenges]( mount on issues ranging from the economy to his strict Covid Zero policy. Delve into these and more of Bloomberg’s top political stories in this edition of Weekend Reads. — [Michael Winfrey]( A screen grab from a security camera shows flames and smoke at the Kerch bridge in the Kerch Strait, Crimea, Oct. 8. Photographer: Anadolu Agency/Getty Images Click [here]( for this week’s most compelling political images, and if you’re enjoying this newsletter, click [here]( to sign up for Balance of Power. Putin Says Has No Regrets About Ukraine Invasion After Reverses After unleashing the biggest barrage of missile strikes on Ukrainian cities this week since the early days of the war, Putin said no further such [strikes]( are needed for now. He added that his order to call up 300,000 reservists for the fight will wrap up in a couple of weeks. Damage in central Kyiv following a Russian missile strike on Oct. 10. Photographer: Matti Maasikas Eight Years of Fighting Hardened Ukraine’s Army Into a Winner When Putin ordered troops to Ukraine in 2014, they were better equipped, trained and organized — and they crushed their opponents. But as [Marc Champion]( reports, their roles have [reversed](, and it’s down to the very different ways that two armies with Soviet roots have learned how to fight. Putin Tried for Years to Stop His Military From Using Western Parts — And Mostly Failed Russia put a [plan]( in place three years ago to slash dependence on Western parts for its military arsenal by 2025. But as [Alberto Nardelli]( explains, an internal review 10 months before Putin invaded Ukraine found it was falling short on almost every metric. Desperate Bid to Save UK Premiership Lands Truss in More Trouble Boxed in by market turmoil and a mutinous Conservative Party, UK Prime Minister Truss was left with two [cards]( to play: hitting reset on her economic plan and firing Kwarteng. Read how she used up both — and left herself in even more peril. - Kwarteng was thrown out after just 38 days, but he spent more than a decade promoting his small-state, low-tax vision for the UK that proved to be his [downfall](. - His replacement, Jeremy Hunt, admitted “mistakes” had been made and said the UK faces [tough choices]( on tax and spending. High Priests of Trussonomics Left ‘Sad, Angry and Frustrated’ When Truss became prime minister five weeks ago, she promised to deliver radical laissez-faire economic polices to boost the economy. As [Julian Harris]( reports, the UK’s most hard-line advocates of shrinking the government are now looking on in [despair]( as their agenda crumbles. Seven Senate Races Will Make or Break Biden’s Agenda With just weeks until the congressional midterm elections, the outcome is very much up in the air. Our exclusive [analysis]( lays out the swing states that could determine the results, from the nail-biter Senate race in Georgia, a state pivotal to Donald Trump’s presidential defeat in 2020, to the narrowing contest in Pennsylvania. Sources: U.S. Senate, RealClearPolitics average of polls as of Oct. 12, Bloomberg research America Is Unleashing Its Economic Arsenal Against China, Russia The US has the world’s strongest military and some of its most potent high-tech weapons. But as [Daniel Flatley]( reports, it’s increasingly leaning on economic [measures]( to achieve strategic goals. And it’s no longer limiting its targets to relative minnows such as Cuba and Iran. Jan. 6 Panel’s Vote to Subpoena Trump Caps Dramatic Hearing The House committee investigating the attack on the US Capitol voted to subpoena Trump. [Billy House]( and [Mike Dorning]( report how the action opens a new legal conflict for the former president as he nears a decision on launching a campaign to return to the White House. Inflation is [spreading]( in the US economy, slamming the door on hopes the Federal Reserve will dial back interest-rate hikes that threaten to tip the country and perhaps the world into recession. That's bad news for Biden as his Democrats fight to maintain their slim hold on congress. Musk Tweets Complicate US Diplomacy From Ukraine to Taiwan Elon Musk often wields his Twitter account as a [weapon]( — threatening to back out of his deal to buy Twitter or insulting Biden. As [Iain Marlow]( explains, he’s recently veered into more treacherous geopolitical territory. Best of Bloomberg Opinion This Week - [Putin’s Air-Terror Campaign Is Already Failing: James Stavridis]( - [We Can’t Give Putin His Off-Ramp: Andreas Kluth]( - [The One Thing That Can Save Herschel Walker: Joshua Green]( - [India’s Ukraine Balancing Act Is Getting Trickier: Mihir Sharma]( - [Even a Lula Win May Not Restore Brazil’s Forests: David Fickling]( Germany Saw No Risk in Russian Gas, Declassified Report Reveals Four months before Putin invaded Ukraine, Germany still claimed that opening a new gas pipeline from Russia would pose [no risk]( to European energy supplies. [Arne Delfs]( writes how former Chancellor Angela Merkel argued that Moscow had always been a reliable gas supplier. Iran Rights Groups Report Rising Child Death Toll in Protests A rights group monitoring the protests in Iran said it had confirmed the [deaths]( of at least 201 people since demonstrations started last month. [Golnar Motevalli]( and [Arsalan Shahla]( report that a charity inside the country also said at least 28 children had been killed. Explainers of the Week - [Six Ways to Tell If Xi Wins or Loses at China’s Party Congress]( - [How Iran’s Hijab Protests Stoked Broader Public Anger]( - [Understanding the Ups and Downs of US-Saudi Relations]( - [How Big Food Aims to Fill Europe’s Shelves as Gas Crisis Deepens]( - [Why ‘NOPEC’ Keeps Arising as a US Answer to OPEC]( How Xi Rewrote China's Rules to Build the Party Around Himself Xi climbed to the center of China’s political universe by rewriting the rules. Read More about how he’ll have to break [three more]( key ones at the congress starting on Oct. 16 to rule for years to come. China’s Tolerance for Xi’s Unyielding Covid Fight Is Cracking Since Covid-19 emerged in China, many have been supportive of mass testing, citywide lockdowns and strict quarantines. But as Xi is set to trumpet his strict measures to control the virus at China’s once-in-five-year party congress, signs are emerging that patience is [wearing thin](. Xi’s Vow to ‘Stand Tall’ Has China on Collision Course With US At the last Communist Party congress, Xi declared that China was “standing tall and firm in the East.” But that was five years ago: Since then the US and key allies have [ratcheted]( up the pressure on the world’s second-biggest economy. Cholera Outbreak Roils Haiti as Violence Hampers Aid Workers A cholera [outbreak]( in Haiti has killed at least 18 people and left hundreds sick. More than 260 people are suspected to be infected with the disease, though the true number is likely much higher, as violent disorder has made much of the country inaccessible, [Jim Wyss]( reports. Setback in Quest for Indigenous Rights Roils Chile The abuse of the Mapuche, an indigenous group that makes up about 10% of Chile’s population, has cast a shadow over the country’s prosperity. Now, as [Eduardo Thomson]( writes, their demands for reparations and autonomy are growing [louder](, with some members resorting to violence. Carolina Soto is a Mapuche spokesperson living in Chile’s Araucanía region. Photographer: Cristóbal Olivares/Bloomberg And finally … With the war in Ukraine threatening European energy supplies, Germany’s capital, Berlin, is finally retiring relics of the 19th century: the estimated 23,000 gas [lanterns]( that illuminate its streets. While the rest of the planet has long since moved on to sodium, halide, and LED, the city is only now shutting the gas off as it tries to save power by also turning off lights at monuments such as the Brandenburg Gate. Berlin started installing gas lanterns early in the 19th century. Photographer: Felix Bruggemann for Bloomberg Businessweek Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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