A spreading scandal

Politicians, executives and royalty are being swept up in the fallout from the Epstein affair.

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Welcome to Balance of Power, bringing you the latest in global politics. If you haven't yet, sign up here. The shock on Andrew Mountbatten-Windsor's face as he was pictured being driven away from a police station — on his 66th birthday — captured the mood of panic reverberating through establishment circles worldwide. Politicians, business leaders, members of academia, and now British royalty have been swept up in the fallout from the Epstein files. The surprise is that US politics has so far been spared from a similar reckoning, despite known ties to the disgraced financier. President Donald Trump's decision to release files related to Jeffrey Epstein seven years after his death in a New York jail cell was made grudgingly. While being named is no indication of wrongdoing, the trove of documents, emails and pictures has exposed how people in positions of power were not just willing, but extremely keen to associate with Epstein even after his conviction for child sex offenses. The scandal has swept up current and former politicians from Norway, Sweden, Slovakia, the UK and France. The files also show that Epstein tried to court Vladimir Putin in Russia. As yet, the US political class is unaffected, despite links going all the way to the president. Trump dismisses his onetime friendship with Epstein, saying they fell out decades ago. Mountbatten-Windsor, center, after leaving police custody yesterday. Photographer: Peter Nicholls/Getty Images Whether his supporters accept that explanation is another thing. Trump's White House is the first truly online presidency, with bizarre AI videos, announcements made on the president's Truth Social platform, his embrace of right-wing influencers and an administration packed with members who flood Elon Musk's X with content. He's been more than happy to appeal to online conspiracy theorists to help his agenda: Remember Trump's repetition of falsehoods that Haitian immigrants were eating pets in Springfield, Ohio. The same base is in an Epstein frenzy, demanding ever more. With the net tightening, Trump just ordered the release of government documents on aliens. — Alan Crawford British newspapers with images of Andrew Mountbatten-Windsor this month. Photographer: Ming Yeung/Getty Images Europe Global Must Reads The US military is stationing a vast array of forces in the Middle East, with Trump saying Iran has 10 to 15 days at most to reach a deal over its nuclear program. His latest retraction of support for Britain's accord to hand the Chagos Islands to Mauritius comes as the UK holds off allowing the US to use the archipelago's Diego Garcia military base for possible attacks on the Islamic Republic. The USS Abraham Lincoln sails in formation in the Arabian Sea on Feb. 6. Photographer: Jesse Monford/US Navy Argentine lawmakers backed Javier Milei's signature labor-reform bill, a key step in the libertarian president's agenda that could help the nation return to global bond markets but which also triggered a 24-hour strike. The legislation, one of the biggest overhauls to Argentina's economy in decades, rolls back rules from the 1970s around hiring, firing, severance and collective bargaining and is part of an effort to bring a portion of the vast informal labor sector into formal employment. The Venezuelan government approved a much-anticipated amnesty law that could free hundreds of political prisoners, after adding carveouts that would leave many to deal with a largely distrusted court system and likely exclude many opposition leaders. The measure — which passed unanimously and was swiftly signed into law by acting President Delcy Rodríguez — does not apply to those who promoted, supported, or participated in "forceful actions" against the country by foreign governments. Japanese Prime Minister Sanae Takaichi vowed to repeatedly "hit the button" on economic growth and adopt a bolder diplomatic stance without spooking markets during a speech today setting out her policy vision. Her comments highlight the fine line she is walking as she seeks to avoid stoking investor fears over her spending plans while avoiding an even more damaging blowup with China. Sanae Takaichi. Photographer: Kiyoshi Ota/Bloomberg Europe is moving to safeguard some of its key institutions ahead of a presidential election in France in April 2027, with surveys showing a commanding lead for the far-right National Rally. France's central-bank chief announced last week he would leave his post prematurely, while Christine Lagarde is considering her future as president of the European Central Bank, potentially preventing far-right influence in naming successors. US and Chinese fighter jets briefly faced off above waters near the Korean Peninsula this week, Yonhap News reported, marking a rare confrontation in that area between the two superpowers. Trump and Indonesian President Prabowo Subianto finalized a trade agreement, ending months of uncertainty with an accord that's expected to lower US tariffs and see Jakarta facilitate the purchase of an estimated $33 billion in American goods. Germany is looking to dispel concerns that its planned €3 billion ($3.5 billion) order for attack drones from a Peter Thiel-backed defense start-up could pose a security threat due to the role of the controversial US investor. Trump said his Board of Peace received roughly $17 billion in pledges toward humanitarian and reconstruction efforts in Gaza, and that more than half a dozen countries promised personnel to a stabilization force in the war-torn territory. Don't miss from Bloomberg Weekend: Mishal Husain discusses the phenomenally successful KPop Demon Hunters movie with co-director Maggie Kang, Jeanette Rodrigues and Tooba Khan explain how a Bollywood spy thriller became the highest-grossing Hindi-language film of all time, and Tiffany Ap examines how the pandemic prompted a transformation of clubbing. Subscribe to the newsletter here. WATCH: KPop Demon Hunters is Netflix's biggest film yet. Mishal Husain asks the co-director about the girl band trying to save the world and any sequel plans. Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day Despite a lack of activity at its Bangkok offices, documents show that Skyhub Technologies is Thailand's second-biggest importer of unmanned aerial vehicles from China. Where they go from there isn't recorded, even though the bulk of drones imported into the country are re-exported to Russia. It's part of a burgeoning and perfectly legal trade as Thailand's ties to Russia grow, illustrating the difficulty faced by western governments in restricting Moscow's access to dual-use technologies deployed in its war against Ukraine. And Finally Until a decade ago, most fun in Saudi Arabia was reserved for private gatherings. Music was banned in public; cinemas, concerts and plays were generally prohibited; and socializing with the opposite sex was taboo. The opening of Six Flags Qiddiya City 40 miles outside Riyadh marks a significant shift. The $32 billion development is devoted to pleasure — it has the world's longest, tallest and fastest roller coaster and by 2030 will include a Dragon Ball park, a Formula One racetrack and some of the world's biggest e-sports gaming arenas. The Skywatch ride at Six Flags Qiddiya City. Photographer: Maya Anwar for Bloomberg Businessweek Pop Quiz (no cheating!). Which Latin American country's president was ousted by lawmakers this week after just four months in power? 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