Another setback for Putin

NATO’s expansion deals Putin another blow. [View in browser]( [Bloomberg]( Long before he invaded Ukraine, Vladimir Putin warned that NATO wanted to encircle Russia — a narrative he frequently leans on to blame Western powers for his attack. The invasion instead made that a self-fulfilling prophecy, triggering one of this century’s most dramatic changes in the global security landscape as the alliance adds formerly non-aligned members to counter Moscow’s aggression. In a major breakthrough on the eve of NATO’s two-day summit in Lithuania that kicks off today, Turkish President Recep Tayyip Erdogan agreed to support Sweden’s application to join after months of standoff over Stockholm’s approach to Kurdish separatists living there. Key Reading: [Turkey Agrees to Back Sweden’s NATO Bid in Boost to Alliance]( [Zelenskiy to Visit NATO to Rally Support for Ukraine Membership]( [NATO Latest: Biden Will Support Erdogan’s Request on F-16 Jets]( [Hungary Backs Sweden’s NATO Accession, Foreign Minister Says]( [What It Takes to Join NATO, a Club Refreshed by Putin]( His change of heart appeared to open the door to Istanbul’s purchase of American F-16 fighter jets, while the European Union will look again at Turkey’s long-stalled bid for membership of the bloc. Following Finland’s accession in April, Sweden’s entry will give the North Atlantic Treaty Organization added sway over two strategic gateways for Russia: the Baltic Sea and the Arctic, where seven of eight Arctic nations will be members. Sweden will provide not only combat aircraft, naval prowess and other military assets but also allow NATO to more easily shuttle troops and equipment across the Nordics, giving allies better access to smaller Baltic members that border Russia. Propelled by this new momentum — which also includes a massive ramping up in defense investment across the bloc — the main focus of NATO leaders will remain on Ukraine. President Volodymyr Zelenskiy will attend the summit tomorrow, in search of support for membership beyond a 15-year-old statement that Ukraine can eventually accede. While NATO leaders have made clear that Kyiv can’t join as long as the war is raging, Secretary General Jens Stoltenberg said the alliance will fast-track the process, and they're expected to provide a more detailed accession road map. Whatever the outcome, it’s clear Putin’s gambit on Ukraine, as far as NATO’s expansion is concerned, has backfired. — [Michael Winfrey]( Erdogan shakes hands with Swedish Prime Minister Ulf Kristersson as Stoltenberg looks on in Vilnius. Photographer: Filip Singer/Pool/Getty Images Check out the latest [Washington Edition newsletter](. You can [sign up]( to get it in your inbox every weekday. And if you are enjoying this newsletter, sign up [here](. Global Headlines A “very bad cocktail” of new [threats]( from Belarus means NATO members should deploy more troops to the Baltic region, Lithuanian President Gitanas Nauseda told Bloomberg Television in an interview. He said enemy forces could arrive at Lithuania’s border in a “matter of a few hours,” citing the potential presence of Russia’s Wagner mercenaries, tactical nuclear weapons and new “aggressive rhetoric” from Belarusian President Alexander Lukashenko. - The Kremlin is willing to let Wagner keep some of its extensive [operations]( in Africa, sources say, as Russia scrambles to retain its influence on the continent in the aftermath of Yevgeny Prigozhin’s mutiny. Former US President Donald Trump has asked a federal judge in Florida to [postpone]( setting a trial date in the classified documents prosecution against him. Trump’s lawyers filed a response yesterday opposing a proposal to start the trial on Dec. 11 as “unrealistic,” while signaling he might argue to delay it until after the 2024 presidential election. The price of rice have surged in Asia to [the highest level]( in more than two years as importers build up stockpiles on fears that the onset of the El Niño weather phenomenon will parch plantations and damage crops. As soaring temperatures broke multiple records across the planet last week, a heat wave gripped northern Africa. The region has been experiencing some of the most intense heat in recent years, but in many cases that’s been under-reported due to [misconceptions]( about Africans’ ability to withstand it. The crisis is compounded by the fact that many countries on the continent lack the resources rich economies have to deal with rising temperatures. - More than 60,000 people died because of record-breaking temperatures in Europe last summer, a study has found, raising concerns about multiple countries’ [lack of preparation]( for extreme heat fueled by climate change. Migrants rest under the shade of a tree to avoid the heat during a protest against their dire conditions in Tunisia’s coastal city of Sfax on July 7. Photographer: Houssem Zouari/AFP/Getty Images Best of Bloomberg Opinion - [Russia Squeezes Blood From Ukraine's Stones: Howard Chua-Eoan]( - [The Wisdom of Drilling for Oil on the Moon: Liam Denning]( - [Republican Debates Are a Recipe for Chaos: Jonathan Bernstein]( China is expected to adopt more measures to [boost confidence]( in the world’s second-largest economy after financial regulators stepped up pressure on banks to ease terms for property companies. While the real estate crisis is stifling a recovery, there is weakness in other areas: Consumer spending is sluggish, exports are flagging and local government debt is soaring. - Top Taiwanese presidential candidate Lai Ching-te said the leader of the democratically ruled island should someday be able to [walk into the White House](, signaling he’d press ahead with efforts to engage the US that have upset China. Explainers You Can Use - [Why US and China Compete for Sway in South Pacific]( - [All About the Cluster Bombs Biden Is Sending Ukraine]( - [Aramco’s $28 Billion Cash Injection Reveals Hidden ESG Loophole]( Negotiations between Australia and the EU to conclude a free-trade agreement are at an [impasse]( over Canberra’s concerns that the bloc is offering insufficient access to the nation’s agricultural exports like beef, sheep and sugar. Prime Minister Anthony Albanese backed his trade minister’s tough stance at a press conference with German Chancellor Olaf Scholz in Berlin yesterday. Tune in to 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 - Kim Yo Jong, the powerful sister of North Korean leader Kim Jong Un, said Pyongyang [scrambled warplanes]( to ward off a US spy plane in its exclusive economic zone and raised the possibility of “shocking” consequences if the incursions persist. - Israelis have taken to the streets en masse to protest the government’s plans to weaken [the power of judges](, with police arresting ore than 40 people by late morning local time after they blocked major roads. - Spanish Prime Minister Pedro Sanchez [failed to clinch]( a much needed clear-cut victory in the only debate with conservative rival and front-runner Alberto Nunez Feijoo ahead of this month’s national elections. - India is set to sign a [naval fighter deal]( worth nearly €3 billion ($3.3 billion) with France when Prime Minister Narendra Modi visits Paris this week. - The potential kingmaker in Slovakia’s upcoming election [criticized]( his frontrunner rival for anti-US and anti-Ukraine rhetoric and said he would ensure the NATO and EU country maintains its transatlantic orientation. And finally ... Ebrima Sagnia was frantic as he carried his son Lamin through the doors of a hospital in Gambia last September. Lamin would become one of more than 60 child victims in the West African nation of an over-the-counter cough syrup that was loaded with toxic industrial solvents. The syrups had been made in India, but as this [investigation]( shows, despite being alerted to the danger, Indian authorities failed to track down the rogue suppliers or root out contamination, and instead cut the probe short. Sagnia at the grave of his 3-year-old son, Lamin, in Gambia. Photographer: Annika Hammersclag/Bloomberg 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 Balance of Power newsletter. 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