Bangladesh’s turmoil resounds abroad

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.The sudden downfall of Prime Minis [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. The sudden downfall of Prime Minister Sheikh Hasina of Bangladesh was greeted [with jubilation by protesters]( on the streets of Dhaka. It may provoke unease in New Delhi, Beijing and Washington. Bangladesh has gone from being one of the world’s poorest countries to an economic powerhouse and a global textiles juggernaut. Steady growth led its per-capita GDP to overtake that of neighboring India five years ago. India was a major patron of Hasina. Prime Minister Narendra Modi saw in her Awami League a moderate bulwark against Islamist political forces in Bangladesh, and his administration notably refrained from criticizing the bloody crackdown of the student-led uprising that led to her resignation. WATCH: People celebrate in Bangladesh after Hasina resigns. It’s not surprising that Modi has since provided her a safe refuge since she fled the country yesterday. Still, the loss of a close ally in Dhaka is sure to provoke worry in New Delhi over who might replace her. Hasina also managed the feat of warmer ties with India’s historic rival, China, with her administration working to secure a $5 billion loan from Beijing. Bangladesh was the first South Asian country to sign up to its Belt and Road infrastructure program. Her departure means the loss of a partner — though Beijing may not be too fussed if it leaves egg on Modi’s face. Investors are betting on a smooth transition with a key Bangladesh stock index surging by the most since March 2020. As for the US, Hasina’s ouster presents the opportunity for a fresh start. The two countries have long enjoyed warm ties, but Hasina’s authoritarian turn [drew increasing criticism from Washington]( which imposed sanctions on Bangladeshi political and military figures.  The emergence of a more liberal leadership will undoubtedly be the great hope of Washington’s idealists. — [Dan Strumpf]( Sheikh Hasina. Photographer: Tomohiro Ohsumi/Getty Images Global Must Reads Kamala Harris clinched the Democratic nomination for president yesterday to become [the first Black woman]( and Asian American to lead a major US political party’s ticket. Her first order of business will be announcing a running mate, with whom she plans to barnstorm battleground states starting today ahead of her November election showdown with Donald Trump. The US and its allies are working to head off an Iranian attack on Israel and avert a wider regional war as concerns grow that a strike [in retaliation for the killing]( of a top Hamas leader in Tehran could be imminent. As President Joe Biden’s administration moved additional forces to the region, Secretary of State Antony Blinken conferred with top officials from Qatar and Egypt — the countries helping lead negotiations for a cease-fire between Israel and Hamas in Gaza. Rockets fired from southern Lebanon are intercepted by Israel’s Iron Dome air-defense system on Sunday. Photographer: Jalaa Marey/AFP/Getty Images While some of the worst-hit markets rebounded from the wild gyrations of yesterday’s $6.4 trillion rout, one thing is clear: the pillars that had underpinned financial-market gains for years [have been shaken](. They look, in hindsight, a bit naïve: the US economy is unstoppable; artificial intelligence will quickly revolutionize business everywhere; Japan will never hike interest rates — or not enough to really matter. A US judge ruled that Google illegally monopolized the search market through exclusive deals, handing the government a win in [its first major antitrust case]( against a tech giant in more than two decades. Trump urged his supporters to stop using Google, [calling it “illegitimate”]( as he intensified his criticisms of large technology companies. Ethiopia has earmarked about $5.9 billion to cushion the cost-of-living [impact of economic reforms]( mandated by the International Monetary Fund, a senior finance ministry official told Bloomberg TV. The reforms are expected to cause a sharp rise in inflation, while [similar steps in Nigeria]( and Kenya triggered deadly protests in recent weeks. Mali’s military leadership cut diplomatic ties with Ukraine over its [alleged backing of Tuareg]( rebels who carried out an attack in which scores of government troops and Russian-backed Wagner Group mercenaries died. Venezuelan President Nicolás Maduro asked his supporters to [remove WhatsApp]( from their phones, as he said it’s being used by “fascists” to spread violence, following a wave of repression by his government to stifle resistance to his self-declared election win. Central African nations are racing to contain an outbreak of a mutated mpox strain that’s [killed almost 500 people]( in the Democratic Republic of Congo alone since January. Washington Dispatch The Supreme Court [refused to intervene]( in Trump’s New York criminal conviction for hiding hush-money payments to a porn star, rejecting a bid by Missouri and other Republican-led states to delay the former president’s sentencing until after the election. Trump was [convicted in May]( on 34 felony counts of falsifying business records, a conspiracy that prosecutors said deprived voters of vital information before his victory in the 2016 national vote. His sentencing has been delayed so state court Justice Juan Merchan can review the impact of the Supreme Court’s [July 1 ruling]( conferring criminal immunity on presidents for many official acts taken while in office. Justices yesterday declined to let Missouri take the unusual step of suing New York at the nation’s highest court. Missouri had sought to temporarily block Trump’s sentencing on Sept. 18 and lift the gag order that bars him from talking about jurors in his case or court staff and their family members. One thing to watch today: Monthly data from the Commerce Department is expected to show the trade deficit narrowed slightly in June. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day Johannesburg has long been billed as Africa’s richest city because of its concentration of businesses and millionaires. Yet, according to documents seen by Bloomberg, the South African city known by its Zulu name, eGoli, or “city of gold,” needs 221 billion rand ($12 billion) [to catch up on maintenance]( and overdue upgrades across its collapsing road, power and water networks. And Finally Surrounded by the blue waters of the Mediterranean Sea, the island of Sazan served as an Albanian military base during the Cold War. Isolated from the rest of what was one of the world’s most reclusive countries, its decaying buildings and bunkers are today overgrown with vegetation. Now Trump’s son-in-law, Jared Kushner, is planning to spend more than $1 billion to build hotels and homes and turn the sites [into luxury destinations]( for the international wealthy. Cold War-era bunkers dot Sazan Island. 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