Putin’s headaches mount

Ukraine is reclaiming occupied land that President Vladimir Putin declared only days ago was now Russia’s “forever,” leaving the Kremlin wit [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Ukraine is reclaiming occupied land that President Vladimir Putin declared only days ago was now Russia’s “forever,” leaving the Kremlin with more headaches at home. Hundreds of thousands of Russians have fled the country to avoid Putin’s mobilization order, opinion polls report deepening public anxiety about the invasion and state TV analysts furiously criticize military chiefs. After Putin annexed four Ukrainian regions his forces don’t fully control, the Kremlin was unable even to say where Russia’s border now lies. Key reading: - [In Putin’s Nuclear Brinksmanship, Weapons Leave Room For Warning]( - [Ukraine Advances in South After Hammering Russians in Northeast]( - [Musk Sets Off Uproar in Ukraine by Tweeting His ‘Peace’ Plan]( - [Putin Says Annexation Is Forever, Defends Ukraine Land Grab]( - [Russia Says Annexed Zones’ Borders Not Set as Ukraine Gains]( - Follow our rolling coverage of the war in Ukraine [here](. It’s against this backdrop that Putin is making not-so-subtle hints about a readiness to resort to nuclear weapons to turn the war back in his favor. While US and European officials say they’ve seen no sign of this so far, the brinkmanship is stirring tensions. Billionaire Elon Musk weighed in last night by tweeting out a plan that appeared to back some Russian claims to Ukraine as part of a negotiated settlement to avoid “total war,” prompting outrage and mockery in Kyiv. Pope Francis drew criticism for a Vatican address on Sunday that “first and foremost” urged Putin to stop the violence but also made “an equally confident appeal” to Ukrainian President Volodymyr Zelenskiy to consider peace proposals. Ukraine and its allies say Kyiv is defending itself against a Kremlin campaign to dismantle the country. Zelenskiy signed a decree today ruling out any negotiations with Putin following the annexations. With Ukraine’s military advancing in the east and south against Russian troops, Zelenskiy has vowed to press on until the invasion is defeated as US and European weapons continue to flow. The difficulty facing the Kremlin is how to explain to the public that Putin is losing territory he now calls Russia. As his nuclear rhetoric escalates, the risk is that Putin backs himself into a corner. Destroyed Russian armored vehicles in Izyum on Sunday. Photographer: Metin Aktas/Anadolu Agency/Getty Images Click [here]( to subscribe to our weekly newsletter Next Africa. And if you’re enjoying this newsletter, click [here]( to sign up for Balance of Power. Global Headlines Lame duck | Prime Minister Liz Truss’s standing in the ruling Conservative Party is so [dire]( after barely a month in office that she will struggle to push through her radical economic agenda for the UK, members of her own Cabinet tell [Kitty Donaldson](. By failing to take basic steps like putting her plans before ministers to debate, Truss has raised the likelihood of rebellious Tory MPs pushing around a wounded premier who limps toward the next general election in two years. - Having been forced into a U-turn on her plan to abolish the top rate of income tax yesterday, Truss courted more discontent among her MPs concerned at [alienating]( the less well off by saying she has yet to decide whether welfare payments should rise in line with inflation. Missile launch | North Korea fired a missile over Japan for the [first time]( in five years, setting off air-raid sirens in some areas and ratcheting up tensions over Kim Jong Un’s nuclear program. Japanese Prime Minister Fumio Kishida and the US condemned the launch, while South Korean President Yoon Suk Yeol warned of a “resolute response.” - The top US National Archives attorney emailed former White House lawyers in May 2021 to say that [correspondence]( between former President Donald Trump and Kim was missing. Diverse candidates | US Republicans are fielding more Hispanic and Black candidates in the congressional midterm elections in November to [broaden]( their party’s appeal despite Trump’s wooing of White voters. As [Akayla Gardner]( reports, what impact that will have is unclear: The GOP has struggled to win Black voters, but has seen recent success with Latinos. Best of Bloomberg Opinion - [Truss’s U-Turn Is Welcome, But It’s Only a First Step: Editorial]( - [Putin Wants Serbia and Bosnia to Back His War: James Stavridis]( - [Abortion Remains Big X Factor in Midterm Elections: Joshua Green]( Lula’s pivot | Former Brazilian President Luiz Inacio Lula da Silva’s campaign is seeking to focus on the northeast of the country and the key state of Sao Paulo going into the Oct. 30 runoff against the incumbent Jair Bolsonaro. [Simone Iglesias]( explains that Lula’s closer-than-expected 48%-to-43% margin of victory in the first round on Sunday has prompted his advisers to seek to [attract]( more centrist politicians to his coalition. - Regardless of the outcome, Bolsonaro’s unexpectedly strong showing means his political influence [will endure](, with many of his right-wing and centrist allies winning key congress and local government races. Explainers you can use - [How Iran Hejab Protests Stoked Broader Public Anger]( - [Twitter, Trump and How Online Speech Is Moderated]( - [A Landmark $8.5 Billion Climate Finance Deal Hangs in the Balance]( Chip limits | President Joe Biden’s administration plans to announce new [restrictions]( on China’s access to US semiconductor technology, escalating Washington’s efforts to stifle Beijing’s industrial ambitions in the $550 billion sector. The “In Trust” podcast investigates a massive transfer of Native American wealth, and how the federal government played a role in creating an Oklahoma empire. Listen every week on [Apple](, [Spotify](, or wherever you get your podcasts. News to Note - Bulgaria’s plans to join the euro by 2024 could be [complicated]( by Sunday’s inconclusive election that left the nation in political limbo, Deputy Prime Minister Atanas Pekanov said. - Trump is suing CNN for [defamation](, accusing the network of smearing him — including with frequent comparisons to Adolf Hitler — to undermine a potential run for re-election in 2024. - A lawyer for Saudi Crown Prince Mohammed bin Salman asked a US judge to dismiss a case accusing him of ordering [the killing]( of columnist Jamal Khashoggi, arguing that his new role as prime minister grants him legal immunity. - Envoys from West Africa’s regional bloc are due to arrive in Burkina Faso today amid concerns that the nation’s [second coup]( this year will delay its return to democracy and worsen jihadist violence plaguing the region. - A deadly stampede at an Indonesian soccer match triggered by police firing tear gas has added [pressure]( on President Joko Widodo to overhaul a security force often criticized for brutality and corruption. And finally ... The US Supreme Court will hear a case challenging the legal shield social media platforms enjoy that delves into the heart of the[debate]( over who’s responsible for content on the internet. The case, involving a lawsuit from the family of an American victim of the 2015 ISIS terrorist attacks in Paris, may threaten the very business model that has allowed the likes of YouTube, Facebook and Twitter to reap enormous profits while shaping civic discourse worldwide. Mourners gather at the site of the attack in Paris in 2015.  Photographer: Simon Dawson/Bloomberg 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. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022