Shifting global sands

Shifting global alliances complicate US foreign policy [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Time and again, the US is finding the biggest challenges to its effort to contain China, and Russia, come from its own prickly partners. President Joe Biden, who once shunned Saudi Arabia, has recently invested political capital in a grand bargain that would see Riyadh formalize ties with Israel in return for US security guarantees. Worried Crown Prince Mohammed bin Salman will turn to China to build and supply his nuclear plants, the US is [considering ways to accommodate a Saudi demand]( that it be allowed to enrich uranium domestically. The talks have fueled a furious debate about how far Washington can bend nonproliferation rules to satisfy its ally — one that, just this week, extended its collusion with Russia to prop up oil prices, despite repeated pleas from an American president anxious to temper gasoline costs before an election year. India, which the US has courted as an economic and political counterweight to China, is buying much of that Russian oil, indirectly funding Vladimir Putin’s war in Ukraine. Putin expressed his thanks this week by [suggesting India get a seat]( on the United Nations Security Council. What’s more, India’s spat with Canada over the murder of a Sikh activist has put the US in an impossibly awkward position. But it’s with Turkey, a NATO ally that’s also maintained close ties with Putin, that years of tensions could be coming to a head: The [US shot down a Turkish drone]( over Syria yesterday, a rare instance of direct conflict. President Recep Tayyip Erdogan has long criticized US support for Kurdish fighters in Syria that Turkey says are linked to militants at home. It’s an issue that’s complicating efforts to expand the defense alliance. For foreign policy veteran Biden, those tensions are a reminder that global centers of power are shifting — and not necessarily in Washington’s favor.— [Lin Noueihed]( Biden and Prince Mohammed in July 2022. Photographer: Mandel Ngan/AFP/Getty Images Global Must Reads Just In: Iranian human rights activist Narges Mohammadi [was awarded the Nobel Peace Prize]( for 2023. Tensions with Poland and Hungary over migration flows are complicating efforts by European Union leaders to agree on a joint declaration after a summit in Granada, Spain. Their demand for the inclusion of references about the need for migration issues to be resolved by consensus risks [preventing leaders from unanimously approving]( a final statement. Russian forces struck a residential area of Kharkiv, Ukraine’s second-largest city, [with ballistic missiles]( this morning. The assault came less than 24 hours after more than 50 people were killed by a rocket strike on a café and grocery store in the village of Hroza in one of the deadliest attacks on civilians in the 20-month-old conflict. Emergency workers search for victims in Hroza yesterday. Photographer: Ukrainian Presidential Press Office/AP Photo Putin said Russia may revoke a ban on nuclear weapons tests, complaining about the US failure to ratify the 1996 Comprehensive Nuclear Test Ban Treaty that imposed the prohibition. Russia recently [successfully tested]( an atomic-powered missile called Burevestnik and has just brought into service the Sarmat, an advanced intercontinental nuclear ballistic missile, Putin said. A meeting between Biden and Chinese President Xi Jinping is looking more likely at next month’s Asia-Pacific Economic Cooperation summit, sources say, though officials in Beijing haven’t yet signed off. [Advance teams for both countries]( have been scouting meeting sites in San Francisco before a possible encounter. Britain’s South Asian diaspora has probably never before [enjoyed such prominence]( on the country’s biggest political stage. During the ruling Conservative Party’s annual conference in Manchester this week, both Prime Minister Rishi Sunak and his home secretary, Suella Braverman, highlighted their Indian heritage in a bid to rally the party faithful. Myanmar’s Supreme Court rejected appeals by Aung San Suu Kyi’s lawyers [to overturn her conviction]( in some corruption cases the military regime brought against the ousted leader. The Labour Party won a parliamentary special election in Scotland on a large swing, suggesting leader [Keir Starmer is on track]( to lead the UK’s main opposition to victory in a nationwide vote expected next year. Donald Trump endorsed Representative Jim Jordan as the next speaker of the US House of Representatives, providing the [former president’s coveted stamp of approval]( going into next week’s leadership elections. Washington Dispatch Treasury Secretary Janet Yellen this weekend [departs on an international trip]( that begins in Marrakesh, Morocco, where the International Monetary Fund and World Bank are holding their annual meetings. She is expected to promote a US reform agenda that includes pledging more money to the World Bank and urging other countries to kick in as well to give the institution more firepower to help countries confront climate change. Her trip, however, takes place during a particularly tumultuous time in Washington, with the US House leaderless after the ouster of Speaker Kevin McCarthy by a band of fellow Republicans. His replacement, whomever that might be, may take a dim view of Yellen’s ambitions. The uncertainty over who’s in charge of the House unfolds in the shadow of a possible government shutdown next month. All that will likely raise questions in Marrakesh about whether the Biden administration can deliver on its aspirations. One thing to watch today: The Bureau of Labor Statistics will publish the September monthly jobs report. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day Switzerland’s crown as the leading home for globe-hopping wealth is safe for now, but Singapore [has been notching up wins of late]( as a haven for the rich and a hub for asset managers. While some of the world’s largest money managers are increasing staff in the city-state, it still has a long way to go before displacing Hong Kong as a trading center and base for global banks looking for a gateway to China. And Finally Known as the “Cardboard King” because of his business’s focus in the US, Australian billionaire Anthony Pratt has been in the spotlight after ABC News reported that [Trump spilled secrets about US nuclear subs]( to him shortly after leaving office. Pratt — who’s a member of Trump’s Mar-a-Lago Club — reportedly shared it with several others, and he has since been interviewed by US law enforcement agencies. Trump and Pratt in Wapakoneta, Ohio, in September. Photographer: Saul Loeb/AFP /Getty Images Pop quiz (no cheating!) Which European country’s government held an emergency meeting to discuss a suspected infestation of bed bugs across the capital? Send your answers to balancepower@bloomberg.net. More from Bloomberg - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance Explore more newsletters at [Bloomberg.com](. 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 Balance of Power newsletter. 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