New global powers rise

As UK Prime Minister Rishi Sunak watches his chancellor of the exchequer stand up in the House of Commons, the eyes of the world will be els [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( As UK Prime Minister Rishi Sunak watches his chancellor of the exchequer stand up in the House of Commons, the eyes of the world will be elsewhere. Today’s budget statement is a pivotal moment for Sunak and Britain, with the dire economic outlook necessitating a mix of tax increases and spending cuts that will set the tone for his fledgling government. Key reading: - [Hunt Pitches Tax Rises, Spending Cuts Into UK’s Economic ‘Storm’]( - [Soft-Spoken Jokowi Emerges as Surprise Power Broker at G-20]( - [Turkey’s Erdogan Finds Himself a Surprise G-20 Power Broker]( - [Mark Carney Says Brexit Has Weakened the UK Currency and Economy]( - Follow our rolling coverage of the Asia-Pacific Economic Cooperation meetings [here](. It’s an unenviable situation that serves as a reminder of the UK’s diminished stature after years of political and economic upheaval. Yet even as Britain faces up to its uncertain future, other powers are becoming emboldened. The Group of 20 summit on the island resort of Bali this week was dominated by an easing of tensions between the world’s superpowers, as the US and Chinese leaders reasserted themselves. But there were secondary currents on show. The host, Indonesian President Joko Widodo, emerged as a power broker at a meeting overshadowed by Russia’s war on Ukraine, a conflict in which Turkish President Recep Tayyip Erdogan has become a key interlocutor. In Egypt, meanwhile, the COP27 climate summit’s star attraction was Luiz Inacio Lula da Silva, who declared that with his return as president “Brazil is back.” At COP26, Saudi Arabia played the villain, yet a year later its vast energy resources are restoring its geopolitical clout, if not its reputation. The focus of global diplomacy shifts to Thailand today, where rising powers like Vietnam join China at the Asia-Pacific Economic Cooperation meetings. If there’s one takeaway from this week’s summits, it’s that other power centers now have to be taken into account. The new reality is of a multipolar world that won’t wait for the UK to fix its finances or broken politics. — [Alan Crawford]( President Joe Biden and Jokowi on Tuesday. Photographer: Leon Neal/Getty Images Click [here]( to listen to our Twitter Space conversation yesterday on the G-20, and if you’re enjoying this newsletter, sign up [here]( for Balance of Power. Global Headlines Turning away | Chinese President Xi Jinping’s partnership with his Russian counterpart Vladimir Putin has limits after all. With speeches and gestures in recent weeks, Xi has taken his most significant steps to [create space]( between Beijing and Moscow since Putin invaded Ukraine. The latest signal came at the G-20, where China signed off on a communique yesterday saying “most members strongly condemned the war in Ukraine.” - Xi will hold his first in-person meeting with Japanese Prime Minister Fumio Kishida today, the latest in a series of encounters that appeared aimed at [calming tensions]( with US allies. - The Chinese leader is in Bangkok for the last of the three [major summits]( that have seen discussions range from climate change to the war in Ukraine and food inflation. Setting terms | Ukrainian President Volodymyr Zelenskiy said only the [return]( of Crimea and the eastern Donbas territory taken by Russia will allow an end to the war. In an interview by video at the Bloomberg New Economy Forum in Singapore today, he said Kyiv also requires the removal of all threats from Russia, and that a simple cease-fire won’t be enough. - Zelenskiy appeared to soften his insistence that a Russian missile caused a lethal blast in Poland and said a team would investigate after Biden [disputed]( the claim. - A United Nations-brokered deal allowing exports of Ukrainian grain from the Black Sea is set to be [extended]( for 120 days, according to Ukraine, easing pressure on global food prices. Lula is looking to increase the amount of cheap credit for farmers to spur sustainable agriculture that could be key for [pressing]( global issues: It increases food production and protects forests at the same time. Brazil is home to the Amazon rainforest, which is crucial for absorbing emissions. Judicial impact | Donald Trump’s decision to run for the White House in 2024 [complicates the work]( of federal prosecutors, forcing them to shield their probes of the former president from accusations of political impropriety. They will also face pressure to speed up investigations to resolve any criminal trial and appeals before voters head to the polls.  - Nancy Pelosi’s historic run as House speaker will come to [an end]( after Republicans won a narrow majority in the chamber that gives them the power [to halt]( Biden’s agenda. Best of Bloomberg Opinion - [How the Russia-Ukraine War Can and Cannot End: Leonid Bershidsky]( - [If China Invaded Taiwan, What Would Europe Do?: Hal Brands]( - [Believe It or Not, Ukrainians Now Nazi Satanists: Andreas Kluth]( Climate disappointment | Countries at the UN climate summit may reject calls to [phase out]( the use of all fossil fuels, denting efforts by India and key developed nations to target oil and gas as well as coal in an overarching deal at COP27. If the language of the draft of the so-called “cover decision” remains, it could expose deep divisions between top oil producers and climate-vulnerable countries. Explainers you can use - [How a Border Surge Tests Biden’s Immigration Approach]( - [Living Next Door to Rising Seas: Portraits From Palau]( - [World Cup’s $300 Billion Cost Flags Gulf’s Sports Ambitions]( Upping the ante | North Korea fired a suspected ballistic missile today toward waters off its east coast after [warning]( the US of a “fierce” move if it persists in conducting joint military drills with allies in the region. Leader Kim Jong Un has ratcheted up tensions by firing off a massive barrage of missiles in recent weeks that included the first one shot across a nautical border with South Korea. 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 - Republican lawmakers plan to give [closer scrutiny]( to financial support for Ukraine once they take control of the House in January, raising questions about the long-term US commitment as the war drags on. - Xi [confronted]( Canadian Prime Minister Justin Trudeau at the G-20, accusing him of leaking details of a private meeting — an unusually candid glimpse of Xi’s interactions with other world leaders. - Algeria and Russia began their first joint military exercises on Algerian soil amid Western concerns over Moscow’s [deepening ties]( with the North African nation that’s a key energy supplier for Europe. - Myanmar’s military government released four [foreign prisoners]( including Australian economist Sean Turnell, former UK ambassador Vicky Bowman and Japanese filmmaker Toru Kubota. - A World Food Programme convoy [carrying food]( and medical supplies entered previously inaccessible parts of Ethiopia’s northern Tigray region yesterday, two weeks after a peace deal to end a civil war. And finally ... Workers in Ukraine’s telecom industry are striving to keep the nation’s soldiers and citizens [connected]( and online since Russia’s invasion began. As [John Beck]( reports, it’s the first major war in a country with communication and power infrastructure as sophisticated as Ukraine’s, leading one expert to call it “the most connected battlefield in the world ever.” In that context, winning the information war often means victory. And winning an information war requires a reliable network. Ukrtelecom engineers in a battle-damaged part of Borodyanka. Photographer: John Beck 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