2020’s demons

Follow Us Get the newsletter Events unfolding on Capitol Hill, across the U.S. and overseas this week reveal the challenges awaiting Joe Biden when he's sworn in next month as U.S. president. The midnight deadline for Congress to pass a pandemic relief measure underscores how difficult legislative progress will be, particularly if Republicans retain control of the Senate in a pair of Jan. 5 runoffs in Georgia. With ICUs across the U.S. at or near capacity and no end in sight to the surging coronavirus caseload, Pfizer and the federal government are struggling to reach a deal that would eventually double the vaccine doses available under the nation's immunization effort. Meanwhile, a cyberattack across U.S. government agencies and private companies led by suspected Russian hackers has Biden pledging to make cybersecurity "a top priority." And Republicans, egged on by President Donald Trump, are urging a special counsel investigation into the foreign dealings of Biden's son Hunter. The remaining month of the Trump administration could add to Biden's already heavy burden. The outgoing president still refuses to concede defeat and may break with protocol by skipping the Jan. 20 inauguration ceremony. Trump has promoted loyalists and appointed prominent aides, supporters and fundraisers to federal advisory boards. He's pardoned former National Security Advisor Michael Flynn, with more pardons — perhaps even a pre-emptive self-pardon — possible before he leaves office. While many in the U.S. and worldwide hope for a fresh start in 2021, the reality is that many of 2020's extraordinary policy and political hurdles will persist. — Kathleen Hunter  Health care workers yesterday at a Covid-19 testing site in Riverside, California, Greater Los Angeles is emerging as America's hardest-hit metropolitan area. Photographer: Bing Guan/Bloomberg Barring major news, Balance of Power will take a break for the holidays and return on Jan. 4. We're wishing our readers all over the world a safe and happy 2021. Click here for this week's most compelling political images and please do continue to tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Lame-duck decision | The massive hack on the U.S. government, which software giant Microsoft now says exposed its systems, presents Trump with the choice Barack Obama faced in the waning days of his tenure: whether to sanction Russia, the alleged culprit, and how severely. So far, Trump has shown little willingness to impose costs on Russian President Vladimir Putin, Nick Wadhams reports. While routine snooping may attract a moderate reaction, Russia would risk more serious U.S. penalties if the hackers damage networks or expose sensitive information. Tech tussle | The U.S. is preparing to blacklist Semiconductor Manufacturing International Corp. and around 80 other Chinese companies, Reuters reported. The Shanghai-based company is at the heart of Beijing's plans for a world-class semiconductor industry. Washington views China's ascendancy as a potential threat and blacklisting companies may deprive them of crucial gear. Bogged down | Chief U.K. Brexit negotiator David Frost warned progress in trade talks has been "blocked," as his European Union counterpart said just a few hours remain to find a deal. Prime Minister Boris Johnson spoke with European Commission President Ursula von der Leyen last night, after which he warned talks were in a "serious situation" and would fail unless the EU softened its stance on fishing rights. Ambitions questioned | More than two-and-a-half years after Abiy Ahmed rode a wave of pro-democracy protests to power, the Ethiopian prime minister remains an enigma — a Nobel Peace Prize winner who crushed a rebellion in the Tigray region. As Marc Champion and Simon Marks explain, the future of Africa's second-most populous nation now depends on whether he's a true reformer or another strongman-in-the-making. People walk next to an abandoned tank belonging to Tigrayan forces south of the town of Mehoni, Ethiopia, on Dec. 11. Photographer: Eduardo Soteras/AFP via Getty Images Venezuela talks | Biden's advisers are preparing to jettison Trump's policy of isolating Venezuelan leader Nicolas Maduro by starting talks in a bid to end the Western Hemisphere's worst economic and humanitarian crisis. While they will push for free elections and offer sanctions relief in return, Maduro's removal won't be a precondition for negotiations, Ben Bartenstein and Alex Vasquez report What to Watch China said talks with the EU on an investment deal are in "the final stage" as it pushes for an agreement before a year-end deadline. Prime Minister Yoshihide Suga signaled to North Korea and China that he will bolster Japan's military to counter security threats by allocating an estimated $5 billion for sea-based missile interceptors and new anti-ship missiles. More than 300 students kidnapped in northwest Nigeria last week, reportedly by the Islamist militant movement Boko Haram, have been freed, government officials say. Pop quiz, readers (no cheating!). Which leader got themselves into political hot water by dining out with celebrities at a pricey steak restaurant? Send your answers to balancepower@bloomberg.net. And finally ... Next to Seoul's swanky Gangnam district, made famous by the singer Psy's blockbuster video, "Gangnam Style," residents of the South Korean capital's last slum have joined with landowners to oppose a state development plan. As Jeong-Ho Lee explains, the 1,000 households in Guryong village fear being kicked out of their homes, while those who own the property are unhappy with the financial terms. That's left President Moon Jae-in's project facing huge hurdles. High-rise residential buildings tower over Guryong village. Photographer: Jean Chung/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