Middle East powers boost Egypt

It has been a time of upheaval in Egypt [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Even by Egypt’s standards, it’s been a time of upheaval. In less than 24 hours, the cash-strapped North African nation hiked interest rates by a record amount, let its pound tank nearly 40% and [unlocked an $8 billion]( International Monetary Fund loan. That all comes on top of a huge rescue deal engineered by an increasingly influential Gulf nation and announced some two weeks back. The United Arab Emirates has long said Egypt needed to change its economic ways. But Abu Dhabi also knew it couldn’t be allowed to fail at a time of regional chaos sparked by the escalating Israel-Hamas war. Egypt is key to negotiating an end to that conflict — along with other regional powers including Qatar — and facilitating the delivery of aid to civilians in Gaza, the scene of a worsening humanitarian crisis. That’s why the UAE agreed to pump $35 billion into Egypt and develop Ras El-Hekma, a Mediterranean peninsula three times the size of Manhattan. It was that deal that helped trigger the [flurry of monetary policy moves]( yesterday. The UAE, which has long employed its wealth to amplify its geopolitical sway, used the promise of aid to push Cairo toward economic reforms long demanded from the IMF and backed by the US. It’s worried about the stability of Egypt — a historical flashpoint for uprisings in the Middle East and a nation where more than 100 million people have been facing high inflation. There’s also a deeper regional power play in motion, as the UAE tries to wield greater influence in Egypt for decades to come and a watchful Saudi Arabia — the longtime regional heavyweight — looks to its own land developments across the Red Sea. The hope is the latest moves bring a semblance of stability to one of the more precarious pieces of the Arab puzzle.—[Sylvia Westall]( Displaced Palestinians at the border with Egypt in Gaza on Feb. 1. Photographer: Ahmad Salem/Bloomberg Global Must Reads The “bewildering” level of US trade curbs to block Beijing’s access to semiconductor technology [will backfire]( on America, China’s foreign minister said. His comments come as Washington [is pressing allies]( including the Netherlands, Germany, South Korea and Japan to plug holes in its campaign to restrain China’s progress in developing domestic chip capabilities. Donald Trump will tighten his grip on the US Republican Party tomorrow with his allies [poised to take control]( of its national committee at a meeting in Houston, Texas. After sweeping the Super Tuesday primaries and virtually guaranteeing he’ll be the nominee, Trump has handpicked his daughter-in-law, Lara Trump, and Michael Whatley for top jobs in the party. Trump alongside Eric and Lara Trump during a rally in Nashua, New Hampshire, on Jan. 23. Photographer: Alex Wong/Getty Images The European Union will propose new sanctions over the death of Russian opposition leader Alexey Navalny in an Arctic jail last month, [targeting several prison and government officials](, judges and penal colonies, according to a draft proposal. At the same time, Lithuania’s [spy agencies]( warned that Russia’s military is preparing for a protracted standoff with NATO member states in the Baltic Sea region. Millions of British workers were handed a tax cut by UK Chancellor of the Exchequer Jeremy Hunt, which he [paid for]( by stealing the opposition Labour Party’s flagship policies and squeezing public services. Hunt’s budget statement yesterday drew battle lines for an election widely expected toward the end of the year, with his ruling Conservatives trailing Labour by more than 20 points in opinion polls. Senegal’s election confusion continues. The government proposed that a first round of voting take place on March 24, while the Constitutional Council said it should take place a week later. The goal is to carry out the ballot before President Macky Sall steps down on April 2. The West African nation [has been in political limbo]( since Sall called off elections originally scheduled for Feb. 25 and sought a 10-month delay, setting off violent protests. Chinese President Xi Jinping called for the mobilization of “patriots” in Taiwan and abroad to [fend off pro-independence efforts]( on the self-governing island. Peru’s fragmented congress formed a supermajority to [resuscitate the Senate]( three decades after it was abolished in the wake of then-President Alberto Fujimori’s decision to dissolve the legislature. North Korean leader Kim Jong Un oversaw military drills that included storming border guard posts, [stepping up pressure]( on South Korea after saying he has the right to annihilate his neighbor and no longer seeks peaceful unification. Washington Dispatch President Joe Biden today will [present his agenda]( for a second term in his final State of the Union Address before the November election. And Trump has vowed to do a “Live, play-by-play” while his Democratic rival speaks. This skirmish, coming after the Super Tuesday primaries, marks the beginning of an electoral rematch, the likes of which American voters have not experienced in nearly 70 years. In 1956, President Dwight Eisenhower, a Republican, ran against Adlai Stevenson, who had also been his Democratic opponent four years earlier. That race has another parallel with 2024: Eisenhower had to confront concerns about his age and his health. At 65, he was then the oldest man to hold the office of president, and he had suffered a massive heart attack in 1955. Eisenhower put off deciding whether to run for a second term until the end of February 1956 — very late by the standards of more recent political generations. During his campaign, he weathered another serious health problem, surgery to remove an intestinal blockage, and had to deal with an international crisis over the Suez Canal that threatened to draw the US into a confrontation with the Soviet Union. But he went on to win reelection that November. One thing to watch today: Weekly initial jobless claims are expected to show a small increase. [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 Russia’s growing trade with China has helped its economy withstand Western sanctions over its war in Ukraine. Now President Vladimir Putin is preparing to spend billions to boost [shipping capacity]( on Russia’s two longest railroads, the Trans-Siberian and Baikal-Amur Mainline, to speed up the burgeoning cooperation. The 8,700 miles of tracks, also known as the Eastern Polygon, constitute a vital artery for Russia’s foreign trade. And Finally Near the 19th-century Palais Wilson in central Geneva, headquarters of the main United Nations human rights office, a billionaire family is facing charges of people trafficking. The allegations that they exploited staff at their villa have shone a [rare spotlight on the underclass]( laboring for the city’s “beau monde.” By challenging the investigation, the family of Prakash Hinduja, one of three brothers of Indian origin who control much of the clan’s $14.8 billion fortune, has tried to put the prosecutors on the defensive. 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