A rising human toll

Your Balance of Power newsletter focuses on the rising costs of the UK’s labor strife. [View in browser]( [Bloomberg]( UK Prime Minister Rishi Sunak is caught under a wave of strike action that’s brought the country to a halt at times, and while negotiations with trade unions are continuing today, there’s little prospect of a deal soon. Rail staff, postal workers and border employees are among those who’ve walked out in recent weeks, but the most damaging stoppages are in the National Health Service, where nurses have taken action for the first time in their history. Key reading: - [UK Strikes Roll On as 100,000 Civil Servants Call Walkout]( - [UK Rail Union Chiefs See Little Prospect of Deal to End Strikes]( - [Why Strike-Averse Britain Is Gripped by Labor Unrest]( - [UK Ambulance Workers Strike Again, Piling Pressure on NHS]( - [Strikes Stop London’s £20 Billion Elizabeth Line in Its Tracks]( The NHS is already under pressure from the Covid-19 fallout, as well as immense structural problems ranging from under-funding in critical areas to a shortage of staff made worse by the UK’s departure from the European Union. The striking workers want better pay, but also policies to solve these issues. It’s becoming Sunak’s No. 1 problem in 2023, perhaps more so than curbing inflation. Polling suggests that much of the public has sided with striking workers, with the country shocked by reports of heart attack and stroke patients being unable to get ambulances. England and Wales had one of the worst years for deaths in more than a decade, throwing a spotlight on the turmoil engulfing the NHS. Almost 35,000 more people died in 2022 than normal, with excess deaths climbing in the last three weeks of the year amid a surge in flu and pneumonia cases, official figures show. Sunak needs to end the strikes before they spread to other areas. Doctors and civil servants are considering industrial action next. The prime minister is looking at options to increase pay and improve conditions, but it’s uncertain whether they’re enough to prevent a year of pain. Added to a series leadership reshuffles and botched policies, a health-service crisis and a country at a standstill would provide an ominous backdrop for the Conservative Party as it heads into next year’s general election already trailing the Labour opposition by about 20 points in the polls. — [Alex Wickham]( A demonstrator at a strike by NHS nursing staff in Liverpool on Dec. 20. Photographer: Anthony Devlin/Bloomberg Click [here]( to listen to our Twitter space conservation yesterday about the riots in Brazil and the year ahead for Latin America. And if you’re enjoying this newsletter, [sign up here](. Global Headlines Mounting trouble | US President Joe Biden’s efforts to quell a controversy over classified documents in his private possession became more difficult after aides discovered a [second batch](. NBC News and the New York Times reported that records found at a separate location are likely to prompt tough questions for the White House and fuel criticism from Republicans — even though they dismiss more serious accusations against former President Donald Trump. - US and Mexican cabinet officials ran out of time before discussing migration in a meeting in Mexico City on Monday, sources say, leaving a major issue between the countries largely [unaddressed](. Another shift | Russia’s head of the General Staff, Valery Gerasimov, was appointed to lead its forces in Ukraine, a [surprise move]( that follows a number of reshuffles in Vladimir Putin’s military leadership. The decision pushes aside General Sergei Surovikin, who will become one of Gerasimov’s deputies. Surovikin took the top post in October and oversaw Russia’s withdrawal from the southern Kherson region and unleashed waves of missile attacks targeting Ukraine’s energy infrastructure. - Half of food retail chains in Ukraine are operating again, often under the power of diesel [generators]( following Russian attacks against the country’s energy infrastructure, allowing shops to provide Ukrainians a place to work, stay online, charge devices and keep warm. - The US-conceived price cap on Russian crude oil exports is showing signs of [success]( — for now, pushing Moscow’s budget deficit to a record and undercutting the price of Russian oil. European nations have made gains in slashing [their dependence]( on imported natural gas, speeding the shift to clean energy following Russia’s invasion of Ukraine. But it’s also meant burning a lot more coal in countries such as Germany. Although that should be temporary, it will require the region to move faster to keep its climate goals on track. Deepening ties | The US and Japan announced plans to [strengthen]( defense cooperation on land, at sea and in space as they expressed unease about the growing challenge posed by China, and its ties with Russia. The meeting of the US-Japan Security Consultative Committee at the State Department yesterday was a precursor to Prime Minister Fumio Kishida’s visit to Washington this week and followed Japan’s deal with the UK that will allow them to deploy their militaries on each other’s territory. Best of Bloomberg Opinion - [The Ukraine War Is Still Low-Tech — for Now: Leonid Bershidsky]( - [Tackling Homelessness Needs New Public Investment: Editorial]( - [The New Optimism On Brexit Might Be Justified: Therese Raphael]( Data gap | China hasn’t updated its daily Covid-19 reports for three days, adding to [global concerns]( that the information vacuum is masking the true impact of the world’s biggest outbreak. The last time the country published an update, including data on cases that has already been rendered meaningless by the roll back of frequent testing, as well as the number of severely ill patients and deaths, was on Monday. Explainers you can use - [The Global Economy of 2023 Is Going to Be a Wild Ride]( - [Why South Africa’s ANC is Taking Aim at Central Bank]( - [Energy Crunch Turns Sweden Into Europe’s Biggest Power Exporter]( Full plate | Whoever wins Nigeria’s Feb. 25 presidential election will have to deal with a security crisis that’s spread to every corner of Africa’s most populous country, with gunmen carrying out mass killings and abductions. [Neil Munshi]( lays out the challenges that are spreading poverty and slowing economic growth in [this story]( featuring six key charts. Tune into 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 - An ally of Pakistan’s former Prime Minister Imran Khan won a [confidence vote]( as chief minister in the Punjab Assembly, the latest electoral win for the popular opposition leader demanding early general elections. - The United Arab Emirates named Sultan al Jaber, head of the national oil company and the main renewable-energy firm, as president for the COP28 [climate summit]( to be held in Dubai this year. - London Mayor Sadiq Khan will warn of the “[immense damage](” Brexit is doing to the capital’s financial district in a speech today, and accuse the government of ignoring the wider impact on Britain. - Chinese Foreign Minister Qin Gang continues his Africa trip, after yesterday rejecting criticism from the US in a speech in Ethiopia that its lending was creating a “[debt trap](” for nations on the continent. - Microsoft won’t be getting more orders for its combat goggles anytime soon after Congress [rejected]( the US Army’s request for $400 million to buy as many as 6,900 of them this fiscal year. And finally ... Conservative lawmakers from multiple US states have introduced a series of proposed laws targeting[drag performances](, such as banning them in public places and particularly those with children in attendance. Violence and protests have accompanied the rise in anti-LGBTQ sentiment and rhetoric. The Proud Boys, an extremist far-right group, has shown up to and in some cases shut down events in California and Texas, and a shooting at Club Q in Colorado Springs killed five people. Community members carry a Pride Flag as they pay their respects to the victims of the mass shooting at Club Q on Nov. 20, 2022.  Photographer: Jason Connolly/AFP/Getty Images Follow Us 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. 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