The world’s biggest problem

Vladimir Putin’s invasion of Ukraine, a world economy in chaos, rising tensions between the US and China, a public angered by soaring inflat [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Vladimir Putin’s invasion of Ukraine, a world economy in chaos, rising tensions between the US and China, a public angered by soaring inflation: Global leaders have a lot on their plate. Yet arguably the biggest challenge facing the planet — climate change — is proceeding unchecked, and the governments, businesses and people of the world are failing to meet it, with deadly consequences. Key reading: - [COP27 Talks Begin With Deal to Discuss Climate Reparations]( - [Global Warming Turned 2022 Into a ‘Chronicle of Climate Chaos’]( - [Two Million People Are Demanding Payment for Forest Preservation]( - [Egypt’s Barren Fields Are Dire Bellwether for Climate Summit]( - [UN Aims to Spur Climate Adaptation Finance as World Falls Short]( - Follow our rolling update of the COP27 summit [here](. Floods in Pakistan that killed at least 1,700 people, drought in East Africa, and heat waves in the northern hemisphere that claimed the lives of thousands have highlighted what United Nations Secretary-General António Guterres called “a chronicle of climate chaos.” While there was a pledge in the 2015 Paris Agreement to act to keep the rise in global temperature below 2 degrees Celsius by the end of the century, the UN says the world is on track to warm 2.6C by 2100. And now many countries are looking to burn more fossil fuels, with the scramble to replace Russian energy boosting profits from and investment in the industry. Against that backdrop, the COP27 climate talks started yesterday in Egypt’s Sharm el-Sheikh resort with a breakthrough — an agreement to discuss how rich countries, responsible for emitting the vast majority of greenhouse gases, might pay compensation to those nations suffering the worst effects. The “loss and damage” proposal could determine the summit's success. Poorer countries want a specific reference on a new funding facility, while wealthy nations fear getting locked into unlimited compensation claims. A previous pledge to provide $100 billion of climate finance annually has never been met. The speeches of the about 100 heads of states and governments attending are sure to highlight more promises to fight global warming. The track record so far inspires little hope that they will deliver. [— Karl MaierÂ]( Displaced people wade through a flooded area in Pakistan’s Sindh province. Photographer: Rizwan Tabassum/AFP/Getty Images Sign up [here]( for The Readout newsletter from Allegra Stratton and if you’re enjoying this newsletter, click [here]( to sign up for Balance of Power. Global Headlines Tight race | Democrats closed the gap with Republicans in [voter enthusiasm]( during the final days before the US midterm elections, which remain “highly competitive,” according to an NBC News poll. While that’s a measure of good news for President Joe Biden, a Washington Post-ABC News survey suggests Republicans are more certain about actually casting a vote tomorrow and that their party looks likely to take control of the House. US Midterms Latest - [Biden Assails Zeldin on Crime as Republican Gains Ground in NY]( - [DeSantis Declines to Take Trump’s Bait as Both Rally in Florida]( - [Voting Lawsuits From Illinois to Arizona Soar Ahead of Midterms]( Saving energy | Kyiv and six other regions in northern and central Ukraine face additional emergency [blackouts]( today because of a power shortage following Russian missile and drone attacks on energy infrastructure. Ukrainian President Volodymyr Zelenskiy said Iran must be punished for helping Russia, adding that “if it was not for the Iranian supply of weapons to the aggressor, we would be closer to peace now.” China’s growth in exports fell for the first time in more than two years in October, as demand declines on rising risks of a global recession. The [weakness]( in exports adds to the pressure on the economy, which is struggling due to the property market slump, persistent disruptions from Covid-19 controls, and weak consumer spending. Under scrutiny | UK Prime Minister Rishi Sunak faces mounting unrest in his Conservative Party as questions swirl about his judgment after a key ally was accused of [bullying]( a colleague. Wendy Morton, who was chief enforcer in former premier Liz Truss’s government, submitted a complaint over expletive-filled text messages Gavin Williamson sent her following the Queen’s death in September. Sunak appointed Williamson to his Cabinet last month. Best of Bloomberg Opinion - [The €50 (Yes, Fifty Euros) Lawsuit Threatening OPEC: Javier Blas]( - [Worried About China? Ban TikTok, Not Confucius: Matthew Brooker]( - [Why Troubled EM Nations Are Hoarding Gold: David Fickling]( Common cause | Iran’s Kurdish [minority]( has found itself at the center of one of the biggest anti-government uprisings since the 1979 Islamic Revolution following the death in police custody of Mahsa Amini, a young Kurdish-Iranian woman. As [Golnar Motevalli]( reports, the 10 million or so community’s struggles along with women against discrimination have galvanized dissent across ethnic and social lines, posing a more complicated challenge to the regime. Iranians protest the death of Mahsa Amini in Tehran on Oct. 1. Source: Getty Images Explainers you can use - [How Elon Musk’s Twitter Takeover Turned Into Chaos]( - [The World’s Fantasy Vacation Spot Has an Answer to Rising Seas]( - [How Bail Reform, Crime Surge Mix in an Angry Debate]( Not welcome | Italy’s far-right government ordered ships carrying hundreds of migrants rescued at sea not to [release]( all passengers upon arrival, reviving a policy expected to roil Germany and other European Union governments. Nongovernmental organization vessels carrying migrants were told to return to international waters once minors and vulnerable passengers disembarked. Bloomberg TV and Radio air Balance of Power with [David Westin]( on 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](. News to Note - South Korean President Yoon Suk Yeol [apologized]( to the nation for a deadly pre-Halloween crowd crush, with members of his government facing criticism over management of the incident that killed at least 156 people. - Twitter is heading into its second full workweek under Elon Musk with half its workforce, mounting losses and a couple of [unexpected reversals]( to its plans. - The EU’s executive plans a [pivotal meeting]( later this month to determine whether Hungary will be able to meet an end-of-year deadline to access much-needed recovery funds in a dispute over the rule of law. - India’s Supreme Court endorsed Prime Minister Narendra Modi’s move to [reserve](10% of government jobs and seats in educational institutions for “economically weaker” people who don’t fall in other affirmative action categories. - UK Trade Minister Greg Hands is holding talks with Taiwanese officials to “future-proof” Britain’s economy in the coming decades, as Sunak’s administration looks to take a [harder stance]( on China. We apologize for the lack of a pop quiz last Friday. So here is one: Which former prime minister was shot and injured during a rally last week? Send your answers to balancepower@bloomberg.net. And finally ... The superyacht is the ultimate symbol of opaque, outrageous Russian wealth and going after these [high-profile playthings]( looks like an act of justice for the death and destruction being spread by Putin’s invasion of Ukraine. As [Stephanie Baker]( explains, the move to destabilize the Russian elite may have been a public-relations success for Western governments, yet legally and, perversely, financially, it’s a total mess. Most of the ships sit immobilized and in some places the money to maintain them is coming from US and European taxpayers. Civil Guards stand by superyacht Tango in Palma de Mallorca, Spain. Photographer: Francisco Ubilla/AP Photo Like getting this newsletter? 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