Washington unsettled

Chinese President Xi Jinping’s call for Ukraine cease-fire is stirring unease in Washington. [View in browser]( [Bloomberg]( Chinese President Xi Jinping is stirring unease in Washington with his call for a cease-fire in Ukraine. The US and its allies believe that would allow Vladimir Putin to “freeze” Russia’s territorial gains, with US Secretary of State Antony Blinken saying the “world should not be fooled.” Key reading: - [US Fears a War-Weary World May Embrace China’s Ukraine Peace Bid]( - [Blinken Cites ‘Acute’ Threat by Russia, Long-Term by China]( - [Xi Aligns With Putin Against US, But Hesitates on Gas Deal]( - [China’s New Premier Puts Focus on Manufacturing on First Trip]( - [China Plays Up Friendship With Philippines as US Alliance Gains]( Yet coming on the heels of China helping to orchestrate a diplomatic detente between Saudi Arabia and Iran, there’s concern Xi’s call could gain traction among nations tired of a war with no end in sight that’s wreaking havoc with the global economy. Dismissing it outright could send the message to some receptive ears that Washington isn’t interested in peace, [Iain Marlow]( writes. While NATO support for President Volodymyr Zelenskiy’s government in Kyiv remains rock solid, highlighted by massive supplies of weapons, ammunition and aid, major countries such as India and Brazil are steering clear of choosing between Russia and backing Ukraine. Putin addressed delegates from dozens of African states at a conference in Moscow on Monday, telling them they were part of “the emerging new multipolar world order.” It’s increasingly clear that US efforts to keep Beijing from aligning with Russia over the war in Ukraine haven’t worked. However uncomfortable China may feel about Europe’s bloodiest conflict since World War II, its soaring trade with Russia and purchases of fossil fuels have helped fund Putin’s war machine. Xi’s trip to Moscow this week only deepened the two nations’ pledge before the invasion of a “partnership with no limits.” And with the constant US drumbeat of hawkish rhetoric against China’s policies, Beijing may not see the point of pursuing better relations with President Joe Biden’s administration. Xi, who recently won an unprecedented third term, appears to have decided that on the international stage China must go its own way. On some key issues, that may leave Washington sitting on the sidelines. — [Karl Maier]( Xi and Putin in Moscow on Tuesday. Photographer: Pavel Byrkin/AFP/Getty Images Coming Soon: Understand power in Washington through the lens of business, government and the economy. [Sign up now for the new Bloomberg Washington Edition newsletter](. And if you are enjoying this newsletter, sign up [here](. Global Headlines Viral appearance | US lawmakers have spent the better part of this year warning about the threat posed by a platform intended for short, often silly videos. Yet TikTok’s Chinese ownership and the national security risk that could pose to the viral video app’s 150 million users in the US are no laughing matter. [Here]( are the main issues Chief Executive Officer Shou Chew is likely to face when he gives testimony to Congress today. - Read what happened when tech executives met with Washington’s policy elite to discuss China over [cocktails](. - Check out this [QuickTake]( on how TikTok became a US-China national security issue. Wagner finale | Russia’s Yevgeny Prigozhin is preparing to [scale back]( his Wagner mercenary army’s operations in Ukraine after the Kremlin cut off key supplies of men and munitions, sources say. Prigozhin, seen as an increasing threat by Russia’s security and political establishment, is stuttering in his main objective to take the eastern Ukrainian city of Bakhmut, while his effort to present himself as a tough-guy alternative to the nation’s military is also hitting a wall. - The World Bank increased its [estimate]( of how much it will cost to rebuild Ukraine to at least $411 billion in an assessment that found that Russia’s invasion pushed 7.1 million people into poverty and reversed 15 years of development progress. Energy transition investments in India already lag behind other major nations, and now the cost of capital is increasing and the Inflation Reduction Act is creating more opportunities for clean-power investors in the US and its partners. That, and extra scrutiny on Indian projects after the Adani Group short-seller report, [spells trouble]( for Prime Minister Narendra Modi’s goal to put India at the forefront of climate action. Rates risk | The US Federal Reserve’s latest rate increase drew rebukes from Senator Elizabeth Warren, Senate Majority Leader Chuck Schumer and a senior House Democrat yesterday, showing the [party’s anxiety]( about a potential recession before the 2024 presidential election. Lawmakers are typically reticent to criticize the Fed, recognizing that the central bank’s independence from politics is crucial to its credibility. - Treasury Secretary Janet Yellen said regulators aren’t looking to provide “blanket” deposit insurance to [stabilize]( the US banking system, sending bank stocks plunging. Best of Bloomberg Opinion - [Ukraine’s Survival May Be Decided by the GOP: Andreas Kluth]( - [Why China Is Pulling the Rug on Putin’s Pipeline: David Fickling]( - [Boris Johnson Has Finally Lost His Political Touch: Martin Ivens]( French fury | President Emmanuel Macron is facing more [strikes]( against his push to reform France’s pension system a day after he refused to back down and likened protesters to the insurrectionists who stormed the US Capitol in 2021. Transportation, schools and refineries are expected to be hit as anger over the pension overhaul shows no sign of receding more than two months after unions began walkouts and marches. A fire lit by demonstrators in Paris on Saturday. Photographer: Nathan Laine/Bloomberg Explainers You Can Use - [Traders ‘Manipulating’ Power Market Means Higher Bills in the UK]( - [Why Argentina’s Inflation Is Up Over 100% Again]( - [Where Are We in Hunting for the Origin of Covid-19?]( Power purge | Venezuelan Energy Minister Tareck El Aissami’s decision to quit Monday hints at a power [struggle]( as the government tries to recover billions in missing revenue. As [Fabiola Zerpa]( and [Patricia Laya]( report, the resignation follows months of close oversight focused on a trail of unpaid oil cargoes that led the nation’s ruling elite to purge one of their own. The graft probe points to a split between senior officials who want to liberalize the economy and hardliners who favor a stricter socialist model. Watch Bloomberg TV’s Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - Japan [ended restrictions]( on exports to South Korea of three key compounds used in the manufacture of semiconductors and displays, in the latest step toward improving ties between the two US allies. - UK Prime Minister Rishi Sunak emerged [unscathed]( from a day of Parliamentary drama after convincingly winning a key Brexit vote. - Former US President Donald Trump lost a [critical court battle]( to keep legal details secret from the Justice Department about his alleged mishandling of classified information and obstruction of justice after he left the White House. - A Canadian lawmaker [has resigned]( from Prime Minister Justin Trudeau’s Liberal Party caucus after a media report alleged he advised Chinese diplomats in 2021 not to release two imprisoned Canadians for political reasons. - China’s ambassador to Australia has dismissed concerns [over a war]( between the two countries as unrealistic, as defense officials from both governments met for talks in Canberra. And finally ... It was a tale of two very different events in Hong Kong this week for the Swiss banking giants brought together by regulators to rescue Credit Suisse. UBS hosted rich clients at its lounge in the sprawling Hong Kong convention center, where a usually drab hall was transformed with festive booths serving Ruinart champagne and Macallan Highland whisky. Several attendees likened the Credit Suisse event to [a funeral](, complete with white flowers — a symbol of death in Asia — on display in the lobby. Flowers in the lobby at the Credit Suisse event. Photographer: Denise Wee/Bloomberg Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Bloomberg Politics newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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