Biden’s Mideast policy isn’t flying

President Joe Biden’s Middle East policy is in trouble [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. The US military is back in the Middle East. It’s not going very well. American-led airstrikes against Houthi militants who’ve been causing havoc in the Red Sea haven’t stopped the Yemen-based group from escalating attacks on ships. If anything, [the situation has got worse](. “Are they stopping the Houthis? No. Are they going to continue? Yes,” US President Joe Biden told reporters. Biden’s calls for an eventual state for the Palestinians to ensure a lasting peace in the region [have been flatly rejected]( by Israeli Prime Minister Benjamin Netanyahu. When Secretary of State Antony Blinken came on stage at the World Economic Forum this week, saying he was hearing from almost all countries that “they want us present, they want us at the table,” what was most striking to many in the room was the seeming helplessness of the US. A [Washington-backed plan by five Arab nations](for postwar Gaza stands no chance because Netanyahu, who’s heading the most right-wing government in Israel’s history, won’t accept it. As long as the Israel-Hamas war rages, the Houthis insist they will maintain their campaign against shipping. Critics say that anyone who followed the Houthis’ hardened resistance to years of Saudi military airstrikes — and their continued support from Iran — should have known the US and UK attacks on the group would have little impact. Back home where Biden faces a tough reelection battle, while most Democratic and Republican lawmakers back the administration’s pro-Israel policy, polls show substantial public disapproval of his handling of the conflict in Gaza, especially among young voters. By the time Blinken left Davos, and his plane broke on the runway, one observer at the gathering of global elite quipped that it might as well be a metaphor for the US’s own damaged foreign policy in the region. — [Karl Maier]( Blinken and Netanyahu in Tel Aviv on Oct. 12. Photographer: Jacquelyn Martin/AFP/Getty Images Global Must Reads Washington to Beijing are urging Pakistan and Iran to show restraint after the two nations engaged in [back-and-forth missile strikes](, with both sides now showing signs they don’t want tensions to escalate. A chorus of other nations joined the call for the Muslim countries to stop the situation from spiraling out of control at a time of rising turmoil in the Middle East over the Israel-Hamas war. As the US tries to push back against Chinese influence in the Pacific, it’s faced with the [painful reality]( that Beijing seems to have made massive inroads in a region where it had long-standing and deep ties. The success of China’s Pacific strategy was reinforced this week when Nauru became the latest island nation to sever diplomatic ties with Taiwan. Biden is forgiving nearly $5 billion in additional student debt as the administration seeks to deliver on [one of his signature initiatives]( with high stakes for his reelection campaign. Almost 74,000 borrowers will see debt canceled in the latest round of relief, bringing the total forgiveness of student loans under Biden to $136 billion. Thousands of demonstrators in Slovakia protested a proposed overhaul of the judiciary by Prime Minister Robert Fico, the European Union’s latest leader accused of eroding democratic standards and the rule of law. In power since October, Fico is facing [mounting pressure]( from the public, opposition and the EU to abolish or scale back the plans. A protest against the government’s plan to close a special prosecutor’s office in Bratislava on Jan. 11. Photographer: Tomas Benedikovic/AFP/Getty Images Two of Indonesia’s presidential contenders are in talks to form an alliance to beat frontrunner Prabowo Subianto, showing how policy differences [come second to winning the race]( to lead Southeast Asia’s largest economy. Officials backing former Central Java Governor Ganjar Pranowo and ex-Jakarta Governor Anies Baswedan discreetly met several times in recent weeks to discuss a possible pact. President Vladimir Putin is going on a property hunt, ordering officials to find Russian assets that once belonged [to its former empire]( or were owned by the Soviet Union. Sierra Leone’s former President Ernest Bai Koroma, charged with treason earlier this month, has been [allowed to travel]( for medical reasons. The EU won’t be able to sway Hungary to change its [controversial policies on asylum]( and LGBTQ rights by withholding fund payments, Prime Minister Viktor Orban said. Washington Dispatch Washington ends a snowy, cold week with some relief at being able to subtract the [threat of another partial government shutdown]( from a long list of challenges. Both the US House and Senate yesterday approved a temporary spending measure and sent it to the White House for Biden’s signature. The legislation will finance US agencies that were set to run out of money after today, through March 1 and others through March 8. While the agreement brought some satisfaction to federal workers and Americans who rely on their departments and agencies, it failed to resolve major disagreements over annual funding for the fiscal year that began Oct. 1. It also didn’t address the standoff over aid to Ukraine and US immigration policy. The bill’s passage could pose problems for House Speaker Mike Johnson, who rebuffed a last-minute effort by ultraconservative Republicans to scuttle the legislation by adding demands regarding immigration that are anathema to many Democrats. He’s facing growing discontent on his right flank and the same sort of carping that led to the ouster of his predecessor, Kevin McCarthy. One thing to watch today: Existing home sales data from the National Association of Realtors for December will be released. [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 The popularity of snus, the nicotine- or plant-based fiber-filled pouches resembling tiny teabags that users stuff under their upper lip, may be the reason why Sweden has, just about, quit smoking. The country has the lowest proportion of people in Europe still [indulging in regular cigarettes](, and should the trajectory continue, that will fall below the 5% level at which a country can declare itself “smoke-free.” And Finally A 90-minute drive southeast of Johannesburg lies a town built on coal. Sasol’s synthetic fuel plant that Secunda relies on for employment enabled the South African apartheid government to circumvent oil-import sanctions but also made it the world’s largest single-point emitter of greenhouse gas. Now, with environmental compliance issues hanging over the coal-to-fuel facility and a net-zero climate target to achieve, a [big question mark is hanging over the town]( and the 40,000 people whose lives are entwined with it. Secunda is a small town southeast of Johannesburg. Photographer: Leon Sadiki/Bloomberg Pop quiz (no cheating!) Which country’s president told his officials to skip the World Economic Forum in Davos over the organizers’ stance on Israel’s war against Hamas? Send your answers to balancepower@bloomberg.net. More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [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? 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