Mueller’s probe looms over Trump’s Davos show

[Balance of Power]( From [Bloomberg Politics]( [FOLLOW US [Facebook Share]]([Twitter Share]( [SUBSCRIBE [Subscribe]](  As Donald Trump dominates Davos with his trademark bravado, spontaneity and camera-grabbing disruption, more trouble is brewing back home. A report that the U.S. president was [on the cusp of firing Special Counsel Robert Mueller]( in June (and only relented when White House counsel Don McGhan threatened to resign), is adding fuel to the biggest threat to Trump’s presidency. The latest plot twist surrounding Mueller’s probe of possible ties between Trump’s campaign and Russia risks distracting from [the president’s speech today]( to global elite at the World Economic Forum in the Swiss Alps. The remarks — just four days before Trump’s first State of the Union address — are meant to be the highlight of a visit in which he’s cultivated near celebrity status. A billionaire CEO paused a private meeting to get a picture with Trump as he arrived yesterday, and the president ended his evening holding court surrounded by [top executives]( from Europe’s most important companies. In between, though, it’s been classic Trump. Within a matter of hours, he threatened to end U.S. funding for Palestinians, undercut his Treasury secretary’s comments on the dollar and awkwardly made the case that his sometimes fractious relationship with British Prime Minister Theresa May was “really great.” - [Kathleen Hunter]( “We have a tremendous crowd,” Trump said in Davos. “It’s a crowd like they’ve never had before.” Photographer: Jason Alden/Bloomberg Global Headlines [Davos, Day 4]( | Trump’s [rare (albeit qualified) apology](for retweeting anti-Muslim videos in November — a move that strained ties with the U.K. — is a top talking point this morning. Check out our [special hub page]( for all the latest news, photos and features from the forum’s final day.[Immigration impasse]( | Trump has offered Democrats a concession on immigration - but at a price they may be unwilling to accept. The administration last night proposed giving 1.8 million undocumented people brought to the U.S. as children a path to citizenship in exchange for other changes. Key Democrats are opposed, raising fresh questions about whether the stalemate could prompt another government funding showdown early next month. [China builds a bigger watchdog]( | Beijing is considering a merger of its banking and insurance regulators as Chinese President Xi Jinping seeks to pay down his country’s $28 trillion debt pile, [Bloomberg News reports](. Word of the move comes days after one of China's top financial officials, Liu He, [promised]( WEF attendees reforms that would “exceed expectations” this year.[Cyberwar games target North Korea]( | U.S. forces in South Korea and the Pacific are honing their capability to conduct offensive cyber operations, a sign digital warfare is taking on added significance as a potential weapon against North Korea. The Pentagon’s director of operational testing told Congress the office is working “to develop a cyber-range environment” where allies “may be able to train as a coalition force on matters of critical importance to operations in a cyber domain.” [Russian ferment]( | Vladimir Putin is all but certain of extending his 18 years in power by winning a fourth term in March, but years of economic pain and corruption are sapping his support in the heartland, once his unassailable bastion. And as the Kremlin elite nervously awaits the release next week of a U.S. Treasury list of “oligarchs” who could be targeted for sanctions, [Bloomberg News reveals]( how costly the end of a marriage in the Putin family can be. [Iran responds]( | Something surprising happened when Iranian authorities faced a social-media backlash after [a yellow smog]( enveloped southwestern Khuzestan, shutting schools and offices and sending hundreds of people to the hospital. They acted. A decision to dispatch government officials and $100 million to the region showed a sensitivity to civilian demands that was rare before protests around new year swelled into the biggest challenge to ruling clerics in a decade. [And finally...]( A Lebanese comedian is in hot water over a joke about powerful Saudi Crown Prince Mohammed bin Salman. After a psychic advised the prince to cut down on fast food, Hicham Haddad advised him to cut down on “fast arrests, fast policies, fast military strikes” — an apparent reference to the corruption crackdown in Saudi Arabia, as well as its war in Yemen. Lebanon’s judiciary wasn't amused, and sued Haddad for violating a law against insulting a foreign leader.  Fans – in a country known for being more tolerant than some of its Middle Eastern neighbors - responded with a show of support for the comedian on social media. Lebanon is frequently caught in the crossfire of regional politics, especially the rivalry between Saudi Arabia and Iran.   Need to know every detail of what's happening in the federal government? Try Bloomberg Government. Delivering rich data, sophisticated tools and breaking news alongside original, in-depth analysis from policy experts, [BGOV helps government relations professionals]( perform at the top of their game.   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to [sign up here](.  [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022