The threat next door

Follow Us Get the newsletter There's an old saying in politics that the more effusive the public statements of support, the more the opposite is true behind the scenes. U.K. Chancellor of the Exchequer Rishi Sunak has been at pains to endorse Prime Minister Boris Johnson, even as the two seemingly disagree on whether Sunak's signature "eat out to help out" pandemic program simply spread coronavirus faster. But this week's annual Conservative Party meeting has hardly been a unified affair. Instead, as Kitty Donaldson, Alex Morales and Tim Ross report, lawmakers are frustrated by Johnson's leadership — so much so they increasingly see Sunak as a potential replacement. It's quite the turnaround for a leader just 10 months after he steered the party to its biggest parliamentary majority since the 1980s. The U.K. has suffered the highest death toll from Covid-19 in Europe as Johnson first downplayed its risks and then made some abrupt policy u-turns. The economy has been devastated, and Johnson is arguing with Brussels over the terms of Brexit with time running out to finalize the divorce. Johnson himself fell seriously ill with the virus, and some lawmakers feel he's lost his mojo, including his famous oratory skills. While a senior government official describes talk of a breakdown in party discipline as "rubbish," even Johnson supporters say things are bad. Meanwhile, Sunak is entertaining small groups of Conservative MPs for cozy breakfasts in his rooms right next door to Johnson's Downing Street headquarters. Those meetings may pay off if the disquiet with Johnson morphs into a leadership challenge. As one attendee and admirer says, Sunak "walks the walk of a prime minister." — Rosalind Mathieson Sunak arrives at Downing Street on Sept. 15. Photographer: Leon Neal/Getty Images Europe Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Stimulus stopped | President Donald Trump stunned campaign advisers and allies in Congress by single-handedly torpedoing any chance of fresh pandemic stimulus, saddling himself with the blame for any more layoffs and market losses in the final weeks before the election. The president already is trailing in polls as he recovers from Covid-19. The number of White House staff infected with the coronavirus continues to rise, with senior adviser Stephen Miller joining Trump's valets and a military aide in testing positive. The chairman of the joint chiefs of staff, the most senior U.S. military officer, entered quarantine. Campaign 2020 There are 27 days until the election. Here's the latest on the race for control of the White House and Congress. Vice President Mike Pence and Democratic vice-presidential nominee Kamala Harris face off tonight in their first and only debate, with coronavirus adding a late twist to the event. Pence's team has agreed to allow a plexiglass divider for his side of the stage. Other developments Trump Hails His Move to Declassify Russia, Clinton Probe Details Trump Says FDA Pulled 'Political Hit Job' With Vaccine Rules Biden Says Trump Shouldn't Debate If He Still Has Covid-19 Sign up to receive daily election updates as a direct mobile notification on Twitter. Simply click on this link and like the tweet. Soft blows | The measures German Chancellor Angela Merkel and her European allies are considering imposing on Vladimir Putin's government over the poisoning of one of his top critics probably won't make a big impression on the Kremlin. As Patrick Donahue and Henry Meyer explain, while Russian officials may face asset freezes and travel bans, the key Nord Stream 2 gas pipeline between Russia and Germany likely will be spared. Poland's antitrust watchdog imposed a $7.6 billion fine on Russia's Gazprom over its role in Nord Stream 2. A panel of five judges began proceedings today against a man accused of gunning down a Georgian of Chechen descent in Berlin at the behest of Russian authorities.  A forensic team in Berlin in August, 2019 at the scene of the Cold-War style murder, which has strained Russian-German relations. Photographer: Christoph Soeder/DPA via Getty Images Systems check | Turkey is planning a comprehensive test next week of the S-400 missile-defense system it purchased from Russia at a site on the Black Sea coast, Selcan Hacaoglu reports. The S-400 deal alarmed NATO allies who fear it could help Moscow gather intelligence on the bloc's capabilities, while the Trump administration has raised the specter of sanctions if the missiles are activated. Election spread | For months, Malaysia appeared to have contained its coronavirus outbreak. Then top politicians in Kuala Lumpur flew into one of the few remaining hotspots ahead of a local election, and spread the virus. Prime Minister Muhyiddin Yassin has now imposed new travel curbs and is in quarantine along with seven members of his cabinet, showing how voting meet-and-greets can trigger virus flareups. Media clout | Why would Europe's wealthiest man and France's most successful investment banker, Bernard Arnault, acquire a more than 5% stake in Lagardere SCA, the once-sprawling conglomerate that's now focused on media, publishing and retail outlets? As Angelina Rascouet, Ania Nussbaum and Helene Fouquet explain, it's all about building influence in a country where business and politics are intricately intertwined. Sponsored Content by Cisco Webex Nowadays, you just can't afford to risk privacy and security while working from home. Keep your meetings safe from "conference bombers" on Webex. From heads of state, to governments, to schools, to hospitals, Webex is the secure choice for video conferencing and collaboration. Visit https://webex.com/ to get it free   What to Watch The European Parliament endorsed a plan to toughen the bloc's 2030 emissions-reduction target to 60% from 1990 levels, increasing pressure on EU governments in upcoming talks about the final shape of a landmark climate law. Putin praised Trump in a television interview today for improving U.S.-Russia ties despite imposing sanctions, but said he also saw grounds for cooperation with a Biden presidency. Citigroup said it fired a manager in its technology department after an investigation into his role as the operator of the most prominent website dedicated to the QAnon conspiracy theory. U.K. Foreign Secretary Dominic Raab yesterday refused to rule out boycotting the Beijing Winter Olympic Games in 2022 over alleged abuses by China of its Uighur Muslim minority. And finally ... The three female lawyers who resolved India's largest bankruptcy case are using their elevated standing to address a different problem: not enough women in the bar. As Upmanyu Trivedi explains, although India has seen women in top political and corporate offices, only 10% of lawyers are women, and that has led to a shortage in the judiciary. The government says it has no plans to reserve seats for women judges. The protracted legal tangle between Essar Steel and ArcelorMittal involved debts of $5.6 billion. Ruby Ahuja was one of the lawyers. Photographer: Ruhani Kaur/Bloomberg     Like Balance of Power? Get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022