Biden’s self-made crisis

Your Balance of Power newsletter delves into Biden’s crisis over classified documents. [View in browser]( [Bloomberg]( Joe Biden was feeling pretty good at the start of 2023. He had a string of legislative wins in his pockets and Republicans had just made a spectacle of themselves electing a speaker of the House. Everything changed for the US president in a matter of days, in a crisis of his own making, with revelations that he and his team had mishandled classified documents. It wasn’t an isolated incident either. Key reading: - [Biden’s Exposure on Files Widens as Garland Taps Special Counsel]( - [What We Know About Biden’s Classified Documents Discovery So Far]( - [Biden Special Counsel Robert Hur Once Oversaw Robert Mueller]( - [House GOP Seeks Hunter Biden Bank Reports From Treasury]( The latest batch turned up in Biden’s garage in Delaware and his response was unhelpfully glib: “My Corvette’s in a locked garage, so it’s not like they’re sitting out in the street.” It’s more than just awkward for Democrats, given how they had accused Donald Trump of recklessness for hoarding top-secret documents at his residence in Florida. The former president obstructed the authorities while his successor is collaborating, but the parallels now are unavoidable. The bottom line is that documents that should have been turned over to the National Archives were found at their respective homes and they now both face probes by a Justice Department special counsel. It could not have come at a worse time for Biden. The investigation could last months or longer, clouding the expected launch of his run for re-election in 2024 and blunting his momentum after Democrats had a better-than-expected showing in midterm elections. Biden had condemned Trump for his “totally irresponsible” handling of secret materials and is doing himself no favors by underplaying his own transgression. Two days ago, the White House was treating this as a minor incident they could move on from quickly. That is no longer the case. One of Biden’s most persuasive arguments as a candidate was that he would restore competency after the madcap Trump years. Whether his allies think it fair or not, this incident has given the opposition an open line of attack. — [Jordan Fabian]( US Attorney General Merrick Garland announces the appointment of a special counsel to oversee the investigation of the documents yesterday. Photographer: Al Drago/Bloomberg Click [here]( for this week’s most compelling political images. And if you’re enjoying this newsletter, [sign up here](. Global Headlines Putin payoffs | President Vladimir Putin is [expanding]( handouts to the neediest Russians, reducing the number of people living in poverty by about 700,000 in a year. The relief is keeping his supporters onside but hardly compensates for the impoverishment Russians have suffered since he invaded Ukraine: Over a third are scrimping on food and real average incomes fell for three straight quarters. - Russian forces likely [control]( most if not all of Soledar in the eastern Donetsk region, and may have pushed Ukrainian forces out of the western outskirts of the settlement, analysts at the Washington-based Institute for the Study of War said in a report. End game | The UK and European Union are poised to enter the [final stretch]( of negotiations over post-Brexit trading arrangements for Northern Ireland. After years of distrust and tension, both sides are optimistic that a settlement is within reach. [Ellen Milligan]( looks at the outstanding issues that need to be resolved before a durable solution is found. Davos resumes | The global elite heads to the World Economic Forum’s annual meeting in Davos during the winter for the first time in three years. More than 2,700 politicians, executives, investors, bankers and academics convene next week in the Swiss ski resort amid multiple [worries](, ranging from Russia’s war in Ukraine to fears a global recession is looming amid a surging cost of living. Plus the concerns over climate change show little sign of dissipating. Best of Bloomberg Opinion - [An Oil Exec Running COP? This Isn’t a Joke: Lara Williams]( - [The World Cannot Afford to Let Kosovo Unravel: Editorial]( - [East African Pirates Are Forgotten But Not Gone: James Stavridis]( Web stakes | Chinese government entities are set to take so-called “golden shares” in units of Alibaba and Tencent, suggesting Beijing is moving to ensure [greater control]( over key players in the world’s largest internet arena. The share structure, which in theory allows the government to nominate directors or sway important company decisions, may give officials a tool to influence the industry over the longer term. Explainers you can use - [World Economy Walks Tightrope Between Recession and Soft Landing]( - [Why Macron Is Risking a Wave of Unrest Over Pensions]( - [Why (Some) Central Banks Are Acting on Climate Change]( Bolsonaro unwelcome | Congressional Democrats are urging Biden [to kick]( Jair Bolsonaro out of the US in light of the Jan. 8 attacks by his supporters on government buildings in Brazil’s capital. American officials are still hoping the former president will keep his promise to return home on his own. Tune into Bloomberg TV and Radio air Balance of Power with [David Westin]( on 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](. News to Note - Japanese Prime Minister Fumio Kishida will seek public support for his robust new [security strategy]( from Biden at their upcoming summit, after criticism from China. - Billionaire ex-Prime Minister Andrej Babis and retired General Petr Pavel are [vying]( for the presidency of the Czech Republic. - Italian Prime Minister Giorgia Meloni has a chance to [leave her mark](on the economy is looming as a multitude of top jobs come up for renewal — including the governorship of the central bank. - Japanese prosecutors [indicted]( a man in his 40s in the fatal shooting of former Prime Minister Shinzo Abe last year in a crime that horrified the country and triggered a scandal over the ruling party’s links with a fringe religion. - Young Nigerians have [signed up]( in large numbers to vote in crucial presidential elections taking place next month in Africa’s most populous nation, a sign of intense youth interest in who leads the biggest democracy on the continent. Pop quiz (no cheating!) Which region on the planet has been heating up faster than anywhere else? Send your answers to balancepower@bloomberg.net. And finally ... The southeastern Polish town of Rzeszow has been [transformed]( since Russia’s invasion of Ukraine because of its proximity to the war. Like many Polish cities, Rzeszow encapsulates the turmoil of 20th-century Europe and then its revival, from the horrors of Nazi occupation to peace and prosperity under NATO and the EU. But unlike others, the city of about 200,000 has turned into the main international gateway to a war that started almost a year ago and shows no signs of ending. The town square. Photographer: Damian Lemański/Bloomberg Follow Us 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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