Bloomberg Businessweek-Europe Edition November 14, 2022

● War in Ukraine ▶ Defense Minister Sergei Shoigu on Nov. 9 ordered Russian troops to leave the city of Kherson, in a highly symbolic blow to President Vladimir Putin. ▶ Ukraine’s biggest private electricity producer said it will need billions of dollars to fix power stations damaged in missile attacks. According to the UN, 6,490 Ukrainian civilians have died in the invasion as of Nov. 6. ▶ Russia is moderating its nuclear threats: On Nov. 8 its diplomats at the International Atomic Energy Agency said it would only resort to their use in response to another nation doing so. ● Meta Platforms said it will cut more than 11,000 jobs, or about 13% of its workforce. The reduction marks the company’s first major layoff, as growth at its flagship Facebook network stagnates and…

Economies are growing rapidly across the developing world, producing a dramatic increase in energy demand. A central challenge facing leaders at COP27 is how to meet that growing demand—and deliver electricity to the almost 1 billion people who still lack it—while also phasing out a power source that is a primary driver of climate change and a major cause of sickness and disease: coal plants. Meeting the challenge will require enormous amounts of new public and private capital to finance clean energy projects. If we hope to win the fight against climate change, the best estimates indicate that by 2030, global investment in clean energy must be at least four times the investment in fossil fuels and gradually take over completely, with much of that money directed to the developing world.…

▶ Retailer earnings will show how much inflation is sapping consumer demand. Walmart and Home Depot report on Nov. 15, Target on the 16th and the Gap on the 17th. ▶ A first trial against e-cigarette maker Juul over its role in underage vaping starts on Nov. 15 in San Francisco. Experts say Juul could face hundreds of millions of dollars in damages. ▶ Donald Trump has teased that he’ll make a big announcement on Nov. 15 from Mar-a-Lago in Florida. Barring major surprises, he’s set to unveil his third White House bid. ▷ 12…

The likely Republican takeover of the House of Representatives, narrow as it may end up being, will effectively end the legislative period of the Joe Biden presidency and usher in what’s sure to be an even more contentious era. One of its most important players will be Representative Kevin McCarthy, the California Republican who’s all but certain to become the next House speaker once the 118th Congress is gaveled in on Jan. 3. No figure better illustrates the party’s internal tensions—tensions that, if McCarthy doesn’t manage them, could quickly cause a market crisis or upend geopolitical stability. Tuesday’s election didn’t produce the red wave many people anticipated, but it still shattered the Democrats’ narrow governing coalition and put McCarthy, who’s long sought the speakership, on the cusp of a personal triumph.…

Americans were already unhappy with the economy of 2022. Republican control of the House threatens to make 2023 worse. As of press time, the GOP looked poised to win a majority of seats in the House of Representatives after Tuesday’s midterm elections—albeit by a smaller margin than forecasters expected. That likely means less government support in the event the Federal Reserve’s steep interest-rate hikes trigger a recession as the cost of quashing the highest inflation in a generation. Not only that, but a fight over the federal debt limit risks making a potential downturn deeper. “Ordinarily you would like to think that governments would be in a position to offer some assistance and support to households and businesses through very tough economic times,” says James Knightley, chief international economist at ING.…

There was one surprise loser on election night, and he wasn’t even on the ballot: Donald Trump and his extremist brand of politics. Going into the midterm congressional elections, incumbent Democrats had feared a trouncing at the hands of Republicans, helped by the GOP’s relentless focus on inflation. But instead of a “red wave” that the former president was eager to take credit for as a launching pad for his 2024 comeback, voters rejected many of the candidates who espoused his lie that the 2020 presidential election was stolen from him. Republicans were inching toward taking control of the House on Nov. 9, but by a narrower margin than expected. And Democrats still had a shot at holding on to the Senate. A notable Senate winner was John Fetterman, who suffered a…