The G-20 looks broken

Group of 20 nations meet in Rio as pessimism spreads [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 news these days has a whiff of the apocalyptic. The prospect of Russia [deploying a nuclear weapon]( into space soon is merely the latest in a run of alarming headlines. That should be a catalyst for action by the world’s top diplomats as they gather in Rio de Janeiro today. Instead, there’s [an air of pessimism]( over the foreign minister talks. Trying to find common ground among Group of 20 nations has seldom been more challenging. The club found its raison d’etre in the 2008-9 financial crisis, but two wars and the most challenging geopolitical climate in decades puts it at risk of paralysis. The host isn’t exactly helping spur a measured debate. Over the weekend, President Luiz Inacio Lula da Silva compared Israel’s war on Hamas with Adolf Hitler’s extermination of Jews during the Holocaust. Brazil has [no intention of backing down](. Lula wants to use Brazil’s G-20 presidency to cast himself as a leader of the Global South, a loose term encompassing the BRICS grouping also including Russia, India and China that’s seen as a rival to the US-led order. Several Global South nations were once subject to colonial rule, which goes some way to explain why they find common ground with Russia over the US and its European allies. Russian Foreign Minister Sergei Lavrov has slowly been making his way to Rio via Cuba and Venezuela, gleefully stoking anti-Western sentiment along the way. It’s not hard to stir accusations of hypocrisy for aiding Ukraine in its war against invading Russian forces while refusing to do more to impose a cease-fire in Gaza. One can only imagine the discomfort around the table when it comes to initiating, skirting or shutting down discussion around the conflicts.— [Flavia Krause-Jackson]( Destroyed homes after Israeli airstrikes in Rafah on Sunday. Photographer: Ahmad Hasaballah/Getty Images Global Must Reads As Russia’s war in Ukraine nears a third year, President Vladimir Putin’s forces have shifted to the offensive and captured the eastern city of Avdiivka after months of fighting. The mood is now [noticeably darker]( in Kyiv as President Volodymyr Zelenskiy’s military runs low on ammunition and weapons, with political infighting in Western capitals holding up deliveries and aid to Ukraine. The village of Lastochkino near Avdiivka on Feb. 15. Photographer: Kostiantyn Liberov/Libkos/Getty Images Pakistan’s two main family-controlled parties agreed to form a government, a move that likely keeps jailed former premier Imran Khan’s group out of power. The development will [probably end days of uncertainty]( after the vote, which saw Khan’s candidates running as independents defy the odds by winning the most seats but fall short of clinching an outright majority. Plane tracking, weather monitoring, marking locations in map apps — China’s spy agency is warning that [foreign actors are exploiting]( these everyday mundane acts to harm the country’s national security. It’s the latest sign of increasing scrutiny of data flows, one that is likely to heighten risks for businesses operating in the world’s second-largest economy. The co-head of Germany’s far-right AfD, Alice Weidel, met her French counterpart, Marine Le Pen, in Paris, [patching up]( a dispute between the two leaders. They’d fallen out after media reports of a clandestine gathering at which the Alternative for Germany discussed a deportation policy with Nazi echoes. Le Pen raised doubts last month over her National Rally party’s ties to the AfD after the revelation. South Africa will hold elections on May 29, setting the stage for a contest in which the African National Congress faces the biggest threat to its majority since winning power three decades ago. The announcement comes as the government presents its annual budget today and as [support for the ruling party wanes]( because of its failure to address record electricity outages, collapsing infrastructure and rampant corruption. The US plans to unveil a “major sanctions package” on Friday against Russia following [the death of opposition leader Alexey Navalny](, the White House said. Houthi militants in Yemen yesterday fired two missiles at a ship [carrying humanitarian assistance]( to the country, the US Central Command said. A North Korean missile used by Russia and recovered in Ukraine had several hundred parts that could be sourced from foreign manufacturers, including US and European firms, showing that Pyongyang is [finding ways to evade sanctions](, Conflict Armament Research said in a report. Washington Dispatch President Joe Biden today continues a two-day West Coast tour that will take him from Los Angeles to San Francisco, chiefly [for fundraising events](. While California will almost certainly deliver its electoral votes to the president this November, the trip highlights the importance to both Democrats and Republicans of what’s long been called an “ATM state.” In 2023, California was the top source of money for presidential campaigns. Its residents donated $33.4 million, of which $18.4 million went to Republican candidates. Last night, donors in Los Angeles welcomed the president at an event for which tickets started at $3,300 and rose to $250,000 for the top level. In San Francisco today, Biden is to take part in two “campaign receptions.” And tomorrow, he plans to attend an event with venture capitalist Steve Westly and Klein Financial Corp.’s Bob Klein in Los Altos Hills. Former President Donald Trump, the frontrunner in the Republican contest, got $8.1 million from California donors last year, while his remaining Republican opponent, former South Carolina Governor Nikki Haley, took in $3.1 million, according to the Federal Election Commission. As the election approaches, other cash-rich states, like Florida, Texas and Massachusetts, can expect visits from one or both of the presidential nominees. One thing to watch today: The US Federal Reserve releases minutes from its Jan. 30-31 meeting. [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 Japanese Prime Minister Fumio Kishida’s ambitious ￥4 trillion ($27 billion) spending spree to revive the nation’s semiconductor industry and regain ground lost to Taiwanese and South Korean rivals is showing signs of helping to [reverse the tide]( of people from rural areas flocking to Tokyo for better jobs and schooling. And Finally Biden’s multibillion dollar Inflation Reduction Act came into being 18 months ago as a means of encouraging a domestic supply chain in key technologies like electric vehicles independent of China while furthering US climate policies. Those twin goals may be harder to reconcile after new Treasury guidelines tightened up the conditions for IRA funding, making the search for non-Chinese suppliers of the metals essential to batteries and other aspects of the green transition far more difficult. Check out [this data visualization]( which shows how hard it is for the US and its allies to cut out China, the biggest miner or processor of more than two dozen critical metals and minerals, not to mention the largest car market. Long waits at charging stations, rapid battery depletion, and limits on electric vehicles on car ferries made the Lunar New Year holiday a frustrating experience for China’s drivers on Feb. 8. Photographer: CostFoto/NurPhoto/AP Photo 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? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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