Bloomberg - Evening Briefing - Spreading fallout

The trove of documents on social media said to be one of the most serious US intelligence breaches in decades has—behind closed doors—set off uncomfortable conversations with America’s closest allies. The documents reportedly reveal just how closely the US is spying on its friends. While friendly espionage is unsurprising in intelligence circles, having to own up to it is always a delicate dance. And for America, the timing couldn’t be worse: President Joe Biden is seeing the leaders of the UK and South Korea in the coming days. But more importantly, the war in Ukraine is at a turning point, and the leak of what’s purported to be specific and recent military intelligence could have deadly ramifications on the ground. 

A couple walking past a damaged building in Mariupol this week. The now-occupied city, located on the Sea of Azov in southeastern Ukraine, saw potentially thousands of civilians killed during a Russian siege last year. The region could be a focus of a coming Ukraine counteroffensive. Photographer: AFP

Some of the leaked documents are said to suggest Ukraine’s military is in dire need of ammunition and that its air force is at risk. They also reportedly underscore that Ukraine’s allies believe the war will be at a stalemate through the year. The documents also are said to suggest other countries are aiding Russia by helping the Kremlin skirt Western sanctions. The Associated Press reported some of the files showed Russian operatives had persuaded the United Arab Emirates to work against the US and the UK, something the US was concerned about as far back as October. Still, for all the furor over the leak’s fallout, there are some saying the documents and their contents could be part of a much more complicated game. —Margaret Sutherlin

Bitcoin climbed above $30,000 for the first time since June. The cryptocurrency is up 82% since Dec. 31, handily beating the tech-heavy Nasdaq 100’s 19% gain. Underpinning Bitcoin’s partial comeback is hope (or wishful thinking) in some quarters that the now-subsiding banking crisis will force the Federal Reserve to hit pause on rate increases—something the Fed said it won’t do.  

US Treasury Secretary Janet Yellen shrugged off recent banking troubles to declare the economy better off than six months ago, saying she didn’t believe the banking turmoil had restricted the availability of credit. Her tune was remarkably different from that of the International Monetary Fund, which revised its forecast for global growth lower ahead of key spring meetings. Here’s your markets wrap. 

Theranos founder and convicted fraudster Elizabeth Holmes must report to prison as scheduled on April 27, a judge ruled, rejecting her request to remain free on bail as she appeals her conviction.  

Elizabeth Holmes, center, at the federal courthouse in San Jose, California, on March 17 Photographer: Benjamin Fanjoy/Bloomberg

Coal use in the US power market is set to decline for a second year—falling to 17% from 20%—and will now supply less electricity than gas, renewables or nuclear plants. The report from the US Department of Energy follows new rules from the Biden Administration aimed at curbing emissions. A top White House aide suggested that plan could result in $1.6 trillion in savings through 2055.

California needs water—and not the deluge brought by atmospheric rivers. Last year almost 1,500 domestic wells went dry statewide, and almost a million Californians had no safe drinking water in their homes. The groundwater in California is disappearing rapidly and the impact of overpumping it is permanent. So who’s drilling the deepest wells and making the grab for cash? You’ll find them in New York, Toronto, Zurich and other financial capitals. Meanwhile, all the snow that fell in California this winter doesn’t change the catastrophe looming to the east. The Colorado River is running dry, and after months of negotiations between states, Washington may propose dividing water allotments to the western states evenly. It would cut the water delivered to Arizona, Nevada and California by 25%. 

The Palo Verde Diversion Dam on the Colorado River near Ehrenberg, Arizona. Photographer: Bing Guan/Bloomberg

After years of disruptions, Boeing appears to be back on track, delivering more jets in a single quarter than its rival Airbus SE for the first time since mid-2018. Both planemakers have grappled with disrupted shipments and their own shortfalls, and have struggled to keep pace with surging demand for fuel-efficient new jetliners in the wake of the Covid-19 pandemic. Meanwhile traders are betting against the airlines.

China’s wealthiest began moving en masse to Singapore in 2019, and their spending has lifted prices of everything from mansions to luxury cars. One thing they’re not doing with their money: investing with Singapore’s biggest funds. And that’s raising questions over tax rules aimed at luring in the new money.

Orchard Road in Singapore Photographer: Edwin Koo/Bloomberg

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

• An abortion pill maker has weighed in on a Trump appointee’s ruling. 
• Chicago will host the 2024 National Democratic Convention.
• Manhattan DA sues to block GOP probe of  Trump prosecution.
• Twitter officially merged into Elon Musk’s  X Corp. 
• Ernst & Young abandoned plans to split itself. 
• Walmart is sizing down in  one the biggest US cities. 
• The 14 restaurants in upstate New York to try now. 

The town of Iten, Kenya—perched a mile and a half above sea level—holds an esteemed place in the sports world as a training ground for elite long-distance athletes. Then came the death of two female runners that shocked the community. But the crimes were not isolated incidents. A Bloomberg investigation based on interviews with runners, coaches, managers and police officials found dozens of other cases of alleged domestic abuse, violence and property theft involving female athletes in Iten.  

More than 250 women lined up for the inaugural Agnes Tirop Memorial Fun Run and Ride in Kenya. Photographer: Nichole Sobecki/Bloomberg

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