Trump’s legal jeopardy

From Donald Trump’s first day as US president, when he raged about photos showing his inaugural crowd was smaller than Barack Obama’s, his h [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( From Donald Trump’s first day as US president, when he raged about photos showing his inaugural crowd was smaller than Barack Obama’s, his hunger to be the biggest and best has been one of his greatest vulnerabilities. New York Attorney General Letitia James is now using it to punish him, alleging in a civil lawsuit that he and his three eldest children wildly inflated the breadth and value of his real estate holdings. Key reading: - [In Trump Suit, New York Seeks to Erase a Hometown Success Story]( - [Trump Sued by New York Over ‘Fraudulent’ Asset Valuations]( - [US Wins Court Order Letting it Use Some Trump Documents in Probe]( - [Garland Faces Only Lousy Options in Eyeing Charges Against Trump](bbg://news/stories/RILT0XT0AFB7) - [Trump Ally Faces Foreign-Agent Trial Under Mar-a-Lago Cloud]( If James has her way, they’ll never be able to do business in New York again. She has also asked the Internal Revenue Service and a Manhattan prosecutor to look into the case, saying she believes the investigation has uncovered federal criminal liability. It’s a big step, and it adds another layer of legal jeopardy as Attorney General Merrick Garland is weighing whether to charge Trump in criminal probes over the classified documents seized from his Mar-a-Lago residence in Florida, as well as his actions around the Jan. 6, 2021 assault on the Capitol. Trump’s detractors, who have said for years he broke the unspoken political rules that underpin America’s democracy, alongside actual laws, may find reason to celebrate. For Trump, however, the calculus remains the same. A potential conviction on sedition or fraud charges won’t disqualify him from launching a widely expected bid for the presidency in the 2024 election. Polls suggest almost a third of voters will back him no matter what. For the Republican party, views on Trump are so deeply ingrained in the electorate that James’s case is unlikely to tilt the congressional midterm elections in November. Trump has denounced James’s effort as a “political witch hunt,” and his supporters concur. While that could shield him in the realm of politics, the legal repercussions may be another matter. — [Wendy Benjaminson]( James announces the fraud case against Trump and his children on Wednesday. Photographer: Yuki Iwamura/AFP/Getty Images Click [here]( to listen to yesterday’s Twitter Space with reporters around the world discussing the utility of the UN as the General Assembly meets in New York, and if you’re enjoying this newsletter, click [here]( to sign up. Global Headlines Prisoner exchange | Ukraine freed Viktor Medvedchuk, a key ally of Russian President Vladimir Putin, in a [swap deal]( for 215 prisoners of war, a move that outraged pro-Kremlin propagandists. The Ukrainian prisoners released by Moscow included 188 fighters who held out for months against a Russian assault at the Azovstal steel plant in Mariupol. - Putin’s order to call up as many as 300,000 reservists [triggered alarm]( as Russians were forced to confront the reality of the war, with about 1,400 people detained at protests in 38 cities last night. - Ukraine’s military has [grabbed]( dozens of tanks left by fleeing Russian troops, sources say, adding crucial weaponry to its arsenal in a conflict where both sides have lost manpower and machinery. - Russia’s security service said it thwarted a planned Ukrainian attack on infrastructure delivering [energy]( to Turkey and Europe. Kyiv denied the claim; Moscow has used energy-supply disruptions in the past to justify curtailing flows. Populist surge | Hardline groups in Europe are making political capital from the economic impact of Russia’s invasion of Ukraine, [Andrea Dudik]( and [Daniel Hornak]( write. Disquiet over inflation and collapsing living standards are fueling political [turbulence]( and echoing the aftermath of the 2008 global financial crisis, which preceded Trump’s presidency, Britain’s vote to leave the European Union and populist leaderships from Brazil to Hungary. If Brothers of Italy leader Giorgia Meloni and her alliance win Sunday’s election, they won’t need to wait long for a picture of just how far the country’s economic outlook [has soured](. As officials prepare new forecasts of growth, debt and the deficit for a budget, sources say projections show the economy expanding just 1% next year, less than half the 2.4% predicted in April. Election shield | The House voted to raise the bar for objections to US presidential election results, the first step in a drive to [prevent]( another crisis triggered by false claims of a stolen election like those advanced by Trump and his allies. A similar bill is working its way through the Senate, and any merging of the two for final passage won’t happen until after the midterms. Best of Bloomberg Opinion - [A Decision Tree for Biden If Putin Goes Nuclear: Andreas Kluth]( - [Putin’s New Cannon Fodder Won’t Win in Ukraine: James Stavridis]( - [Trump and His Spurious Business Face Reckoning: Timothy O’Brien]( Angry denial | North Korea rejected allegations it has sold or will sell arms to Russia and blasted the US and “other hostile forces” for what it sees as [spreading rumors]( that Kim Jong Un’s regime is aiding Moscow in Ukraine. This month, US officials said Russia wants to buy millions of rockets and artillery shells from its impoverished neighbor. Explainers you can use - [Why Russia’s Nuclear Threats Are Difficult to Dismiss]( - [Why a Woman’s Death in Iran Has Ignited New Protests]( - [How ‘Chip War’ Puts Nations In Technology Arms Race]( Gangster risks | Surging rates of killings, extortion and kidnapping are among signs that criminal groups pose an [“existential” threat]( to South Africa, the Geneva-based Global Initiative Against Transnational Organized Crime said. A 38% increase in the murder rate since 2010, a quadrupling of the number of abductions for ransom and billions of dollars of infrastructure theft are all signs that the state is struggling to cope, it found. Police enforce a perimeter around a crime scene in Soweto on July 10. Photographer: Emmanuel Croset/AFP/Getty Images Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - Pressure to oust World Bank President David Malpass is [rising]( after he dodged questions on climate change and the impact of burning fossil fuels. - A member of Iran’s volunteer militia was killed during protests in a northeastern city yesterday, the state-run news agency reported, as unrest over Islamic laws [spread](. - UK Prime Minister Liz Truss appealed to railway employees to “get back to work” as unions prepare to [resume walkouts]( in a clash with employers over pay, job security and working conditions. - A Chinese court sent a former justice minister to jail for life, a sign President Xi Jinping is [pressing on]( with a corruption crackdown just before a Communist Party congress expected to hand him more time in power. - Greek Prime Minister Kyriakos Mitsotakis said in an interview that he’s confident he can ride out a [spy scandal]( and even rule alone after elections next year. And finally ... After fleeing Sri Lanka in the wake of inflation-fueled protests and spending nearly two months in self-imposed exile, former leader Gotabaya Rajapaksa has returned to a heavily guarded colonial-style bungalow in one of the island’s swankiest neighborhoods. Much has changed: The new president, Ranil Wickremesinghe, has vowed to stabilize the economy and the streets are quiet. But, as [Sudhi Ranjan Sen]( and [Kai Schultz]( report, many consider Wickremesinghe a [close ally]( of the once-powerful Rajapaksa family and sense a wider plot to restore the clan to power. A march against Wickremesinghe’s government in Colombo on Aug. 20. Source: AFP/Getty Images Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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