US prosecutors file new charges against Donald Trump in 2020 election trial

Good morning. Today we will cover:

• The “potential environmental catastrophe” in the Red Sea after the Houthi attack

• NFL approves private equity investments for the first time

• China's plans for government bonds could burst the country's bubble

But first, let's turn to Washington, where Donald Trump's legal problems have once again come into the spotlight just two months before the presidential election.

Special Counsel Jack Smith has filed a revised indictment against Trump for his alleged attempts to overturn the outcome of the 2020 election. The new indictment is an attempt to comply with a Supreme Court ruling that gave presidents broad immunity from prosecution.

It contains the four main charges – only one of which went to trial – that Smith brought against the Republican presidential candidate last year related to the aftermath of the 2020 election and the period leading up to the attack on the U.S. Capitol on Jan. 6, 2021. Here's what was excised.

• Robert F. Kennedy Jr.: Trump has appointed his former campaign rival, along with former Democrat Tulsi Gabbard, to his presidential transition team.

Between market turmoil and a relentless US election news cycle, it has been an unusually busy summer for the Financial Times editorial team. If you have any questions about our recent coverage, reply to this email and include your name and location, and we will answer them in a special weekend edition of FirstFT (PS. I would also be happy to answer your questions about this newsletter — Melody)

And here's what I'm keeping an eye on today:

• Results: Nvidia is expected to report quarterly revenue that more than doubled, while CrowdStrike will release its first results since the botched software update that triggered a global IT outage. Other companies reporting numbers include HP and Salesforce.

The annual FT Weekend Festival is taking place, with speakers including Martin Wolf, John Lithgow, Renate Nyborg and FT experts. Join us online or in person on 7 September for a Saturday of debates, tastings, masterclasses and more. FirstFT readers receive a special discount — Register here now.

Five more top stories

1. Exclusive: Klarna's board is considering firing a key ally of one of the company's co-founders before the planned IPO. A decision on whether Mikael Walther, a confidant of founding partner Victor Jacobsson, will be fired could be made at a board meeting scheduled for today.

• More about Klarna: The CEO of the Swedish “Buy Now, Pay Later” group told the Financial Times that the company plans to halve its workforce as part of an AI-supported cost-cutting offensive.

2. An oil tanker that was set on fire by a Houthi missile attack last week now appears to be leaking crude oil into the Red Sea. the US warned yesterday. This is the first serious environmental damage from the Iranian-backed Yemeni rebels' campaign since November. Here's more about what the Pentagon has called a “potential environmental disaster.”

3. Exclusive: China's plans to issue billions of dollars worth of government bonds could burst a “bubble” in China's government bond market. People close to the central bank have warned that months of wild buying have pushed up prices and pushed yields below 2.2 percent, increasing the likelihood of a “significant reversal.”

• Debt allocation: At the heart of China's economic problems lies Beijing's reluctance to take more responsibility for government spending while cracking down on heavily indebted local governments, writes Robin Harding.

4. One of Chile’s most influential lawyers has been indicted charged with bribery, money laundering and tax fraud. Luis Hermosilla, a criminal defense lawyer with close ties to the Chilean elite, has denied all charges but will remain in custody pending trial after a five-day hearing in Santiago.

5. The National Football League will allow the private equity industry to invest in teams for the first time after comprehensive changes to ownership guidelines were approved. Each approved investor has committed to investing at least $2 billion and can split that among multiple teams, with the total expected to reach $12 billion. Here are the buyout firms named as preferred buyers.

Detailed news

Eugene Scalia, a partner at Gibson Dunn and the second child of the late Supreme Court Justice Antonin Scalia, has become the lawyer of choice for companies seeking to check the authority of regulators. He has already thrown up blocks on climate change disclosure rules, private fund regulations and the Federal Trade Commission's ban on noncompete agreements that make it harder for workers to change jobs.

We also read …

• Company: As part of its efforts to produce fossil-free products, toy maker Lego is paying up to 60 percent more for plastic resin made largely from renewable or recycled materials.

• Gaza Crisis: The numerous wars in the Palestinian territories have left many children orphaned. But according to aid organizations, no war has reached the scale of the current Israeli attack.

• Oil and Gas: African oil states are missing out on the oil boom, affecting their fiscal position and making it difficult for them to access the financial resources they need for development projects and the transition to low-emission economies.

Graphic of the day

The return to Earth of two US astronauts stranded on the International Space Station will be delayed until February due to problems with the new Boeing spacecraft that was supposed to bring them home.

Take a break from the news

Artist Carl Cheng, 82, opens his first retrospective, a public art project called “The Natural Museum of Modern Art,” next month at Contemporary Austin, Texas. The exhibition, which features works satirizing wealth, technology and the American pursuit of more, will travel to Philadelphia, Maastricht, Basel and Los Angeles.

Additional contributions by Tee Zhuo and Benjamin Wilhelm