Another headache

Follow Us Get the newsletter The stock market rebels battling Wall Street hedge funds from their bedrooms and kitchen tables are ratcheting up pressure on U.S. President Joe Biden to tackle a problem decades in the making. The frenzy triggered by retail investors over shares of companies like GameStop has raised new questions about the stability of the financial system. But it has also thrust record inequality into the spotlight. The rich-poor gap, which Biden lists as one of America's four crises alongside racism, climate change and Covid-19, has accelerated during the pandemic. It's partly fueled by supercharged markets: The wealthiest 1% own more than half of equity in corporations and mutual fund shares in the U.S. Globally, the 500 richest people added $1.8 trillion to their combined net worth last year, a 31% increase. Treasury Secretary Janet Yellen has called a meeting of regulators today to discuss the market volatility, Saleha Mohsin reports. The issue has united politicians in calls for investigations, with both the House and Senate planning hearings. As Christopher Condon writes, after years of deregulation under Donald Trump, the new administration has a chance to show it's prepared to look into potential market manipulation and improve consumer protections. It's not clear if there will be an immediate outcome. But Yellen, who also led the Federal Reserve and was a vice chair during the 2008 financial crisis, has signaled she's ready to act. — Michael Winfrey Nick Sweeting, 24, at the desk where he trades shares in his bedroom in Montreal. Source: Nick Sweeting Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Just in: The U.K.'s media regulator pulled a China state-backed television channel off the air after finding it shouldn't have had a broadcast license. No retreat | Biden told House Democrats that while he's open to tightening the eligibility for his proposed $1,400 stimulus checks, any move to cut the amount would start his presidency with a broken promise. While Republicans have suggested reducing the payment and sending checks to fewer Americans, top Senate Democrats say they're united in pursuing a "big and bold" stimulus package. Biden and South Korean counterpart Moon Jae-in agreed on a call to cooperate on North Korea. Plea for help | Former European Central Bank President Mario Draghi is the latest technocrat called in to bail out Italy from a political crisis — to the relief of investors, Alessandra Migliaccio writes. If he can muster the support of a fragmented parliament, he'll have more than $251 billion of European Union cash in the next few years to revive an economy devastated by the pandemic. Green shoots | Officials say the U.K. has passed the peak of its latest wave of the coronavirus pandemic, as it reached the milestone of vaccinating 10 million people, about 15% of the population. But Chief Medical Officer Chris Whitty, a senior adviser to Prime Minister Boris Johnson, warned infections are still widespread and the state-run National Health Service would be "back in trouble extraordinarily fast" if social restrictions are lifted too soon. The U.S. and Israel are far ahead of the EU in distributing shots. For the overall global population, at current rates it will take 7.4 years to cover 75% with a two-dose vaccine, according to Bloomberg's Covid-19 Vaccine Tracker. Title claims | About two-thirds of pending cases in India's courts are related to land disputes, threatening more than $200 billion in investment in an economy hit hard by the pandemic. As Archana Chaudhary and Bibhudatta Pradhan explain, Prime Minister Narendra Modi plans to to clear the backlog in the hope of generating jobs and convincing companies to shift supply chains from China. Farmers protest during a tractor rally at the Inner Ring Road in New Delhi on Jan. 26. Photographer: Anindito Mukherjee/Bloomberg Fresh outreach | The United Arab Emirates and Saudi Arabia are holding out the possibility of better ties with Turkey, sources say, and that could benefit trade and security. The moves are tentative given longstanding tensions and jostling for influence in the volatile region, but they coincide with foreign policy reboots both in the Gulf and Washington, Firat Kozok, Zainab Fattah and Sylvia Westall report. What to Watch The U.S. Senate approved a two-year deal that gives Democrats the chair of committees whose seats will be split evenly with Republicans, allowing the chamber to function after weeks of procedural limbo. House Democrats are heading into a showdown with Republicans today over GOP Representative Marjorie Taylor Greene's promotion of conspiracy theories. Far-right leader Marine Le Pen is currently the only serious rival to Emmanuel Macron for France's 2022 presidential election, a new poll shows. Australia called for a United Nations investigation into allegations of human rights abuses in China's Xinjiang region, where Beijing's treatment of minority Muslim Uighurs has drawn international criticism. South Korea's prime minister warned in an interview that a universal basic income was "impossible" to implement, a contrast with other populist contenders for the presidency ahead of an election next year. And finally ... Gaffe-prone former Prime Minister Yoshiro Mori's quip about women talking too much has ignited calls for his resignation as the head of Tokyo Olympic Organizing Committee. Commenting on plans to double the women on the Japanese Olympic Committee board to 40% from 20%, he suggested setting a time limit for their remarks in meetings, "because it will never end." A social-media firestorm ensued, with "Mori's gaffe," "Mori resign" and "embarrassment to Japan" trending on Twitter. Mori takes off a protective face mask during a news conference in Tokyo today. Photographer: Kim Kyung-Hoon/Reuters     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