Conservatives look a lot like socialists these days

This is Bloomberg Opinion Today, a poptastic singalong of Bloomberg Opinion’s opinions. Sign up here.Today’s Agenda It’s just a jump to the [Bloomberg]( Follow Us [Get the newsletter]( This is Bloomberg Opinion Today, a poptastic singalong of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - It’s just [a jump to the left](for the UK government ... - … but [a step in the right direction]( for the Bank of England. - [Don’t count on commodities](to protect returns. - Is there [a Covid rift in Beijing?]( Stealing the Opposition’s Thunder When is a windfall tax not a windfall tax? When it’s a “temporary, targeted energy profits levy,” as UK Chancellor of the Exchequer Rishi Sunak dubbed this week’s raid on the future profits of oil and gas companies. The Conservative government is aiming to raise 5 billion pounds ($6.3 billion) to help fund a helicopter money-drop to alleviate Britain’s cost-of-living crisis. The 15 billion-pound package, which includes energy-bill subsidies for every UK household plus one-off grants to welfare recipients and pensioners, looks like [“a panicky chess move intended to protect the king but not really advance the government’s own position,”](argues Therese Raphael. Stealing a Labour Party policy but adding a Tory spin may be good politics, but it’s bad economics, Therese says. As big as the package is, it doesn’t even cover the increase in energy costs that households face this year. Moreover, it’s far from clear that the measures will revive consumer confidence, which has dropped to a four-decade low. “Populist policies are now the government’s calling card and harder to distinguish from the opposition,” says Therese. Still, the emergency budget-that’s-not-a-budget provides a welcome relief to the Bank of England, which is trying to tackle inflation that’s at a 40-year high of 9% — and headed for double digits — without tipping the economy into recession. “The arrival of [the fiscal cavalry](eases the potential impact on growth, freeing the central bank to focus on curbing a surge in consumer prices that threatens to savage the financial health of the most needy,” argues Marcus Ashworth. Buyer’s Remorse Is Coming for Commodities In the first four months of the year, investors poured $21.4 billion into commodity exchange-traded funds, compared with outflows worth $63 billion in the year-earlier period. With stocks and bonds both handing out losses, commodities look like a haven from rising inflation and increased geopolitical risks. [It won’t last,]( argues Gary Shilling. Substitution happens whenever particular commodities become scarce, while productivity also improves to offset shortages. Both prevent prices from staying elevated over the long run. “Bet on human ingenuity, not shortage-driven chronic price rises,” Gary argues. John Authers points out that with the exception of energy, commodities have been largely flat since the end of March. Moreover, the mechanics of the futures market makes[rolling from contract to contract over time inordinately expensive](. “There’s the eternal risk that it’s too late to dive in, which is compounded at present by the exceptionally high levels of geopolitical uncertainty surrounding Russia and also the Covid-driven shutdowns in China,” warns John. So if you’re trying to diversify with commodities, pay attention to how things roll. The Politics of Covid-Zero in China China’s lockdowns, designed to enforce the nation’s zero-tolerance approach to Covid, carry a high cost. The financial burden of mass testing is set to fall on local governments, with the National Healthcare Security Administration no longer willing to foot the bills. Are the economics of Covid-zero producing[a political rift in Beijing?]( China’s Premier Li Keqiang, second in command to President Xi Jinping, has been unusually frank in addressing municipal officers this week, notes Shuli Ren. An economist by training, Li understands better than most the monetary consequences of the draconian efforts to deal with the pandemic. And his message on an emergency teleconference with thousands of local government representatives was clear: Don’t overdo Covid containment. “It’s thus not hard to see that local officials squandering precious cash on endless rounds of Covid controls is bothering the premier,” says Shuli. Rather than fading quietly into retirement, Li has found his own voice. Telltale Charts As Japan starts to allow foreign tourists back, Gearoid Reidy has a stark reminder that easing restrictions such as mask-wearing during the pandemic[still comes with a cost](. Further Reading Has the inflationary wave broken? [Not so fast.]( — John Authers Beware of placing too much weight on weekly unemployment-insurance claims as a guide to the likelihood of a US recession. — Kathryn Anne Edwards Billionaire Patrick Drahi has checked into [the FTSE 100’s Hotel California](. — Chris Hughes ICYMI A [new prediction market](will let investors make big bets on almost anything. Mercedes plans to shock the auto world with [the next incarnation of its Maybach brand](. “After the pandemic, rich people are more aware they are going to die and [want to spend the money on luxury and more exclusive things.”]( Kickers Winnie the Pooh and Piglet [go on a bloody rampage]( in a slasher horror movie. A gathering of ghouls in Yorkshire sets [a new vampire world record](. You can now watch [Abba performing live!]( (Well, almost ...)  Notes: Please send ruined childhood memories and complaints to Mark Gilbert at magilbert@bloomberg.net. [Sign up here]( and follow us on [Instagram](, [TikTok](, [Twitter]( and [Facebook](. 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