A hard sell

Workers in France and the UK are out on strike again today, as the rising cost of living and creaky public services spur angst among voters. [View in browser]( [Bloomberg]( Workers in France and the UK are out on strike again today, as the rising cost of living and creaky public services spur angst among voters. For governments juggling loaded balance sheets, the wiggle room to respond keeps shrinking. Key reading: - [Half a Million Workers to Strike on UK Chancellor’s Budget Day]( - [Hunt Pledges to Unblock Investment In UK Budget: Decision Guide]( - [French Protesters Take to Streets as Pension Bill Nears Showdown]( - [Macron’s Reformist Legacy Tested as Pension Bill Reaches Endgame]( - [Work Just Doesn’t Pay for Thousands of People in Sunak’s Britain]( Today’s UK budget and French President Emmanuel Macron’s push to raise the retirement age reflect a common reality: As the world grows older, people will probably have to work for longer. That requires unpopular structural change now in order to minimize the burden later, as unfunded pension obligations across the globe go through the roof. With the UK tax burden already at a post-war high, Prime Minister Rishi Sunak will struggle to raise taxes further. Equally there are not many places he can eke out more savings. So the government is tinkering with ways to entice older workers back to the labor market (such as doctors, in short supply), while low-income households will get more childcare support (though not as much as Sunak would like, because it would cost too much). Working-age “inactivity” in the UK is almost 490,000 higher than before the pandemic. More than 300,000 of those are people are aged 50 to 64. The UK challenge is far from unique. Many countries around the world are staring down the barrel at a looming demographic crisis where far more people are old than young. And the young will bristle at having to hand over more of their pay to caring for the old. At the same time older workers object to having to work for longer, especially those who have spent their lives in back-breaking manual labor. Macron is facing mass protests over his efforts to boost the minimum retirement age to 64 from 62. He struggled with pension reform in his prior term, though he may have a better shot this time. These are complex issues for which there are no easy solutions. But however politically unpalatable, they cannot wait. — [Rosalind Mathieson]( A demonstrator flees riot police at a protest against pension reform in Paris on March 7. Photographer: Benjamin Girette/Bloomberg Tune in at 1:30pm London today/9:30am ET for our Twitter Space conversation dissecting Sunak’s budget in real time and assessing the political ramifications with two of our UK government reporters. You can [listen via this link](. And if you are enjoying this newsletter, sign up [here](. Global Headlines Diplomatic push | President Vladimir Putin [met]( Syrian leader Bashar al-Assad in Moscow today as Russia steps up efforts to restore ties between Turkey and Syria. Russia’s Foreign Ministry is also hosting talks with Turkey, Syria and Iran that may prepare the ground for consultations between top diplomats. While Russia backed Assad, Turkey supported rebel forces in the war in Syria. - The Pentagon said a Russian fighter jet [collided]( with a US surveillance drone in international airspace over the Black Sea, causing the American aircraft to crash, an account Moscow disputed. - Follow our rolling coverage of the war in Ukraine [here](. Banana peel | Many market analysts are wondering whether the spectacular collapse of Silicon Valley Bank and two other lenders in the past week will upend an [already unsteady]( economy and tip the US into recession. But as [Christopher Condon]( writes, most economists so far are responding with a cautious “probably not.” - Senate Banking Chairman Sherrod Brown is urging the Federal Reserve to act unilaterally to impose [tougher regulations]( and pause interest rate increases following the banks’ demise. - Coming Soon: Understand power in Washington through the lens of business, government and the economy. [Sign up now for the new Bloomberg Washington Edition newsletter](, delivered Mondays, Wednesdays and Fridays. India’s consumption of Russian crude was minimal before Putin’s forces attacked Ukraine, but it has soared since, becoming a [key tool]( for Prime Minister Narendra Modi’s fight against energy inflation. The structure of India’s oil trade makes it hard to know how much it’s actually paying Moscow and whether it’s undercutting the goal of limiting Russian revenue. Deepening crisis | Imran Khan’s supporters formed a [human shield]( around his house as police prepared to arrest the former Pakistan premier, a move that will deepen a political crisis overshadowing the nation’s economic turmoil. The protracted drama could allow Prime Minister Shehbaz Sharif to delay elections due later this year and [jeopardize]( moves to secure a loan from the International Monetary Fund as the country struggles to avert a default. Best of Bloomberg Opinion - [Nord Stream Attacks Need Facts, Not Theories: Leonid Bershidsky]( - [The Fed Has an Easy Fix to Avert Another Bank Crisis: Shuli Ren]( - [Yuan an Unlikely Winner From Russian Isolation: Alexander Gabuev]( Popular radical | Argentina faces presidential elections in October with neither of the established blocs, populist or pro-market, having been able to fix an economy [lurching deeper]( into the abyss. As [Patrick Gillespie]( and [Ignacio Olivera Doll]( report, the resulting voter disaffection with the government and the main opposition may open the door to a libertarian candidate known for his rage-filled rhetoric to pull off an upset victory. - Argentina recorded one of the world’s fastest rates of annual [inflation]( last month, with consumer prices rising 102.5% from a year prior. Javier Milei during a campaign rally in Buenos Aires on Nov. 6, 2021. Photographer: Anita Pouchard Serra/Bloomberg Explainers you can use - [Germany’s 1970s Deja-Vu Pay Deal Probably Isn’t Quite So Ominous]( - [How Customers of SVB, Signature Will Be Made Whole]( - [What to Know About Australia’s Aukus Nuclear Sub Deal]( Allaying fears | Australia has set off on a diplomatic campaign to [ease regional concerns]( over its acquisition of a fleet of nuclear submarines under the Aukus agreement. Prime Minister Anthony Albanese is visiting Fiji today and the head of the navy is expected to travel to Singapore and Indonesia to brief leaders on the plan that was unveiled in the US on Monday. - Former Prime Minister Paul Keating condemned the deal with the US and UK, saying Australia’s [military sovereignty]( is being surrendered to the “whim and caprice” of Washington. Watch Bloomberg TV’s Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - Iran’s top national security advisor will lead a delegation to the United Arab Emirates tomorrow, the state news agency said, just days after the signing of a [China-brokered deal]( between Saudi Arabia and Iran to restore diplomatic ties. - The People’s Bank of China [vowed to respond]( to US measures to curtail China, echoing a call from President Xi Jinping to defend the economy against external threats. - Secretary of State Antony Blinken is the latest senior US official to visit Africa as part of a [broader push]( by Washington to re-engage with the continent’s leaders. - South Korean President Yoon Suk Yeol sees a deal to [end a feud]( with Japan opening the way to better business ties between the neighbors that could bolster global supply chains of semiconductors. - TikTok’s leadership is discussing the possibility of [separating]( from ByteDance, its Chinese parent company, to help address US concerns about national security risks. - Honduran President Xiomara Castro said her government will seek formal diplomatic relations with China, which would effectively [end ties]( with Taiwan. And finally ... For years, Artem Uss appeared in Russian media as the owner of fancy real estate and luxury cars. Now US prosecutors allege the son of a Siberian governor is at the center of a suspected [secret]( supply chain that used American technology to support Putin’s war in Ukraine. Uss, who denies wrongdoing, is in an extradition battle in Milan on charges that he and his associates defrauded the US and its companies and violated sanctions by selling semiconductors to Russia via intermediaries in non-sanctioned countries. Ukrainian military display drones allegedly used by Russia. Photographer: Sergei Supinsky/AFP/Getty Images Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Bloomberg Politics newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](