2017-02-15

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THE BOMBSHELL -- NYT, A1 -- “Trump Campaign Aides Had Repeated Contacts With Russian Intelligence,” by Mike Schmidt, Mark Mazzetti and Matt Apuzzo: “Phone records and intercepted calls show that members of Donald J. Trump’s 2016 presidential campaign and other Trump associates had repeated contacts with senior Russian intelligence officials in the year before the election, according to four current and former American officials.

“American law enforcement and intelligence agencies intercepted the communications around the same time they were discovering evidence that Russia was trying to disrupt the presidential election by hacking into the [DNC], three of the officials said. The intelligence agencies then sought to learn whether the Trump campaign was colluding with the Russians on the hacking or other efforts to influence the election. The officials interviewed in recent weeks said that, so far, they had seen no evidence of such cooperation. But the intercepts alarmed American intelligence and law enforcement agencies, in part because of the amount of contact that was occurring while Mr. Trump was speaking glowingly about the Russian president, Vladimir V. Putin … The officials said that one of the advisers picked up on the calls was Paul Manafort, who was Mr. Trump’s campaign chairman for several months last year and had worked as a political consultant in Ukraine. The officials declined to identify the other Trump associates on the calls.” http://nyti.ms/2lgrMLt

-- “Flynn episode ‘darkens the cloud’ of Russia that hangs over Trump administration,” by WaPo’s Rosalind Helderman and Tom Hamburger: http://wapo.st/2kJ4V7I

WHAT TRUMP IS WAKING UP TO -- A ROUGH FEW HEADLINES -- NYT: “Trump Aides Had Contact With Russian Intelligence: U.S. Officials Tell of a Flurry of Phone Calls Intercepted Before the Election … Capital Reels Amid Tumult … ‘Eroding Level of Trust’ Led to Flynn’s Rapid Fall … Awash in Turmoil, Arab World Leaves Two-State Goal Adrift” http://nyti.ms/2kS4Hxv … WAPO: Banner headline -- “Flynn’s ouster has White House in crisis mode” http://bit.ly/2lOq4hM

Good Wednesday morning. COULD THE CONVERSATION TURN? Setting aside the whole Russia question, President Trump has another huge problem: He’s quickly infuriating allies on Capitol Hill. They are asking one simple question: Will Trump professionalize his operation, by bringing in -- or empowering -- someone who understands how to navigate the city? Or will the White House continue to sputter down this path, leaving would-be allies on Capitol Hill furious and unable to defend a president whose aides mislead the public and top figures in the administration.

All of these distractions make it so much more difficult for the White House to conduct legitimate business on the Hill. This is no longer cable TV missteps or an adviser saying something silly. A former top aide to the president is likely going to be under congressional investigation for back-channeling with the Russian ambassador to the United States. That is going to make it much harder for Democrats to lend Trump a helping hand, and it could force congressional Republicans to start looking under rocks they’d rather leave unturned. While Washington is complicated in many ways, it’s also pretty simple: you need to earn 218 votes in the House, and between 50 and 60 in the Senate. An investigation paired with Trump lambasting members of his own party -- like John McCain -- could make for a long few years for the White House. Unless, of course, something changes.

-- @maggieNYT: “Surrogates used to try to soothe global leaders/calm markets/talk to Capitol Hill on TV. This administration’s aides have audience of one.”

THE BUZZ -- TAX REFORM INTRIGUE -- While the media obsesses over Mike Flynn’s ouster, much of D.C. is consumed by this question: Will tax reform happen this year? And if it does, will it include the border adjustment tax? Opponents say the border adjustment tax, a scheme that essentially taxes imports instead of exports, will never happen -- it’s too complicated, and will jack up prices for consumers. But top figures in the House are beginning to privately say that tax reform is dead -- yes, completely dead -- unless the border adjustment tax is a major component of the plan. The Senate, of course, disagrees. But this collision is worth watching, as it’s what much of professional Washington will spend its time on over the next six months.

NEW NARRATIVE EMERGING -- “Doubts grow that GOP can repeal Obamacare,” by Burgess Everett, Josh Dawsey, Rachael Bade and Jen Haberkorn: “Republicans have reached a gut check moment: After spending more than six years vowing to fix the flagging patient that is Obamacare, it's the GOP's own repeal effort that's on life support. Undoing the health care law despised by conservatives seemed to be a straightforward proposition for the party after it won the White House and kept both chambers of Congress. Instead, Republicans are sniping over how much of the law to scrap, what to replace it with and when. At this moment, it's far from a sure thing any plan could get through Congress.” http://politi.co/2kISsku

IVANKA/JARED WATCH -- IVANKA’S TUESDAY NIGHT ON THE TOWN -- Ivanka Trump was spotted last night eating dinner at Masseria, the Union Market hotspot. Our tipster said she was with two women.

VEEP WATCH -- “Pence remains above the fray, but is he outside the inner circle?,” by WaPo’s Bob Costa and Ashley Parker: “Throughout the campaign and now in office, Pence has largely managed to avoid the infighting and warring factions of the young White House by keeping his head down and soldiering loyally forward. But the incident with Flynn reveals both the benefits and risks of his approach -- he has emerged largely unharmed by the scandal that led to Flynn’s resignation, but his influence within the West Wing has come increasingly into question given how little he knew about his own situation.

“Pence’s decision to try to stay out of the cliques that have plagued the White House has allowed him, so far, to maintain his standing as a neutral player committed to forwarding Trump’s agenda on Capitol Hill. But it also appears to have left him at times outside of Trump’s brain trust. Aides to both the president and vice president say the two men speak on the phone or in person multiple times a day. Yet in spite of their frequent communication, the president never told his No. 2 that he was possibly misled by Flynn -- and that in defending him on the Sunday shows had put himself in a publicly compromising and embarrassing situation.” http://wapo.st/2liNzlk

QUOTES OF THE DAY -- “‘Unbelievable Turmoil’: Trump’s First Month Leaves Washington Reeling,” by NYT’s Mike Shear: “Gen. Tony Thomas, head of the military’s Special Operations Command, expressed concern about upheaval inside the White House. ‘Our government continues to be in unbelievable turmoil. I hope they sort it out soon because we’re a nation at war,’ he said at a military conference on Tuesday. Asked about his comments later, General Thomas said in a brief interview, ‘As a commander, I’m concerned our government be as stable as possible.’ ... ‘I’ve never been so nervous in my lifetime about what may or may not happen in Washington,’ said Leon Panetta ... ‘I don’t know whether this White House is capable of responding in a thoughtful or careful way should a crisis erupt.’” http://nyti.ms/2lPnjMa

NETANYAHU’S D.C. VISIT -- Trump welcomes the Israeli prime minister to the White House at 11:50 a.m. Netanyahu will sign the guest book at the White House, and at noon, the pair will participate in a joint press conference. At 12:40 p.m., Trump and Netanyahu have a private meeting, followed by a bilateral meeting at 1 p.m. and a working lunch at 1:45 p.m. We expect Netanyahu will invite Trump to visit Israel.

-- “U.S. Drops Insistence on Two-State Solution to Israeli-Palestinian Conflict,” by WSJ’s Felicia Schwartz: “The White House said Tuesday that finding a solution to the conflict between Israelis and Palestinians doesn’t have to include an agreement to establish two separate states, marking a dramatic break from decades of U.S. policy. … [A] senior administration official said the Israelis and Palestinians have to agree on what form peace between their countries will take—and that didn’t necessarily include two states. ‘A two-state solution that doesn’t bring peace is not a goal that anybody wants to achieve,’ the official said. ‘Peace is the goal, whether it comes in the form of a two-state solution if that’s what the parties want or something else, if that’s what the parties want, we’re going to help them.’” http://on.wsj.com/2kSb3wX

-- WHAT ADELSON’S PAPER IS SAYING -- Front page of the Hebrew language Israel Hayom: “WHITE HOUSE SUMMIT … A historic meeting: For the first time since Netanyahu’s first term, he will be greeted by a friendly Republican president at the White House … The prime minister will say all the Palestinians are not ready for a state … Also on the table: Iran and Syria.” http://bit.ly/2kRTP2w

MOSCOW-WASHINGTON HUDDLE -- “Russian foreign ministry says meeting planned between Lavrov, U.S. Tillerson,” by Reuters’ Alessandra Prentice: “A meeting is planned between Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Rex Tillerson on the sidelines of a gathering of G20 foreign ministers in Germany, Russian Foreign Ministry’s spokeswoman said on Wednesday. It will be the first time Lavrov meets his newly appointed counterpart and comes as U.S.-Russia relations are under particular scrutiny following the election of U.S. President Donald Trump, who pledged to improve ties with the Kremlin.” http://reut.rs/2lJWxJm

--JUST ASKING: Why are we learning of this meeting from the Russian side? NOTE: The State Department hasn’t held its daily press briefing in weeks.

KIM JONG WHAT? -- “Clues scarce after half brother of N. Korean leader killed,” by AP’s Eileen Ng in Kuala Lumpur, Malaysia: “News of the apparent assassination of North Korean leader Kim Jong Un’s half brother rippled across Asia on Wednesday as Malaysian investigators scoured airport surveillance video for clues about two female suspects and rival South Korea offered up a single, shaky motive: paranoia. Kim Jong Nam, 46, was targeted Monday at the budget terminal of Kuala Lumpur International Airport, said a senior Malaysian government official, who spoke on condition of anonymity because the case involves sensitive diplomacy. Kim, who died on the way to a hospital, told medical workers that he had been attacked with a chemical spray, the official said. Malaysian officials have provided few other details about why they believe Kim died in a targeted killing. Police said an autopsy was planned to determine the cause of death.” http://apne.ws/2lODzhc

-- FT: “Brother ‘begged Kim Jong Un to spare his life’: South Korea spy chief says North targeted Kim Jong Nam for years before assassination,” by Bryan Harris in Seoul and Jeevan Vasagar in Kuala Lumpur. http://on.ft.com/2lJWkpr

NEW POLITICO/MORNING CONSULT POLL -- “Poll: Trump trails generic Democrat, but not Warren, in 2020,” by Jake Sherman: “Donald Trump begins his presidency facing unprecedented polling headwinds: Roughly a quarter of voters think Donald Trump is the worst president in the last century. Forty-three percent of voters are ready to vote for a nameless Democrat in 2020, while just over a third say they’ll vote for Trump. But, in the fourth week of Trump's presidency, a new POLITICO/Morning Consult poll shows that Democrats could be in trouble -- and Trump could triumph -- if they continues their lurch to the left. Despite the public’s increasing misgivings about Trump’s behavior and tactics in the White House, he still beats Sen. Elizabeth Warren (D-Mass.) in a hypothetical matchup, 42 percent to 36 percent -- a fairly impressive margin for an less-than-popular president against the prominent senator.” http://politi.co/2l7BUU6

-- OTHER POLLING HIGHLIGHTS: WARREN’s fav/unfav is 37/30 with 34% saying they have no opinion or don’t know her … STEVE BANNON has a 21/33 fav/unfav with 47% saying they either have no opinion of him, or never heard of him … 55% say it’s inappropriate for the president to criticize a judge’s ruling … 54% say it’s inappropriate for the president to issue an executive order without the support of Congress.

BIG POLITICO SCOOP -- TROUBLE IN TRUMP’S CABINET -- “Puzder ‘vowed revenge’ after she alleged abuse, ex-wife told Oprah,” by Marianne Levine and Tim Noah: “The ex-wife of President Donald Trump’s labor secretary nominee told ‘The Oprah Winfrey Show’ that he ‘vowed revenge’ when she made public spousal abuse allegations, according to a 1990 tape reviewed by POLITICO on Tuesday night. Andrew Puzder’s hearing for labor secretary is Thursday, but the allegations of domestic abuse, which he’s repeatedly denied, and his admission that he employed an illegal immigrant have put his confirmation in jeopardy. The details of the Oprah tape, which haven’t been made public until now, could further erode his support in the Senate, where four Republicans have expressed reservations about his nomination. No Democrats are expected to support him.

“During the episode, titled ‘High Class Battered Women,’ Lisa Fierstein, Puzder’s ex-wife, said he told her, ‘I will see you in the gutter. This will never be over. You will pay for this.’ Fierstein also said she called the police on him. Fierstein divorced Puzder in 1987. Eight months after appearing on Oprah, she retracted her allegations of domestic abuse as part of a child custody agreement. She said repeatedly thereafter that the allegations were a tactic to gain leverage in her divorce.” With video http://politi.co/2l7HYfy

THE JUICE …

--YESTERDAY, Trump lunched with New Jersey Gov. Chris Christie. This evening, he and Melania will dine with Sen. Marco Rubio (R-Fla.) and his wife Jeanette.

-- FIRST IN PLAYBOOK -- PUZDER RAPID RESPONSE WAR ROOM: The National Restaurant Association is hosting a war room to boost Labor Secretary Andy Puzder Thursday with top operatives from NRA, the International Franchise Association, the National Retail Federation and chain restaurant group NCCR on hand. The groups are handling rapid response, social media and email blasts to members depending on what comes up at Puzder’s hearing. Hardee’s biscuits will be served for folks on hand at NRA’s headquarters. NRA President and CEO Dawn Sweeney and EVP Cicely Simpson will be in the hearing room.

The war room follows a Wednesday NRA fly-in with CKE employees coming in from Georgia, Pennsylvania, South Carolina, Florida and West Virginia. NRA has meetings set up with Sens. Tim Scott (R-S.C.), David Perdue (R-Ga.), Bob Casey (D-Pa.), Marco Rubio (R-Fla.) Lindsey Graham (R-S.C.), Shelley Moore Capito (R-W.Va.), Joe Manchin (D-W.Va.) and Bill Nelson (D-Fla.).

-- VP MIKE PENCE is in Brussels Monday, per our POLITICO EU Playbook colleague Ryan Heath, who writes: “European Council President Donald Tusk will greet U.S. Vice President Mike Pence in Brussels February 20. Pence arrives at 10:15 a.m., with press statements (few questions permitted) and at 11 a.m. European Commission President Jean-Claude Juncker will meet Pence at 11:45 a.m.”

-- FIRST IN PLAYBOOK: OHIO REP. TIM RYAN’S DNC ENDORSEMENT: From Gabe Debenedetti: “Ohio Rep. Tim Ryan, who challenged Nancy Pelosi's leadership role last year, is endorsing South Carolina Democratic Party Chair Jaime Harrison. Harrison is also a former Jim Clyburn staffer. From Ryan’s remarks: ‘As we choose the next leader of the DNC, we must avoid the temptation to view the DNC as something it is not. The DNC is not a Cabinet department, a congressional office, or a city hall, though Democrats with experience in those capacities have equally important roles to play in our comeback. Rather, the DNC is a grassroots party-building organization. So we need a leader who knows how to build a party from the grassroots. That leader is Jaime Harrison.’”

-- DENIS MCDONOUGH, the former Obama White House chief of staff, is joining the Markle Foundation as senior adviser.

HAPPENING TODAY -- SPEAKER PAUL RYAN will be on “Morning Joe” at 8:30 a.m.

--SEN. RAND PAUL (R-Ky.) is joining with members of the House Freedom Caucus at 1 p.m. in HVC studio A to introduce an Obamacare replacement bill.

TOP TWEETS -- @kurtbardella: “if the first four weeks of the #Obama presidency were like this when I worked at #oversight we’d have issued so many subpoenas by now” … @michaelcrowley: “Flynn learned a lot of deep US secrets. Now he’s bitter, out of work, and not very employable. Hope someone’s keeping a close eye on him.”

HOT TAKE – TOM FRIEDMAN in the NYT, “What Trump Is Doing Is Not O.K.”: “If Republicans want to know how they should be behaving on this issue, they should ask themselves what they would be saying and doing right now if a President Hillary Clinton had behaved toward Russia the way Trump has, and had her national security adviser been found hinting to the Russian ambassador to hold tight because a softer United States policy toward Russia was on its way. ... Trump and his senior aides have spent their first weeks in power doing nothing more than telling us how afraid we should be of Muslim immigrants who have not been properly vetted by our intelligence and immigration authorities. Well, Putin was vetted by the F.B.I., C.I.A. and N.S.A., and they concluded that he attacked our country’s most important institution — and Trump has acted as if he could not care less.” http://nyti.ms/2kwfUR4

BUSINESS BURST -- “Global Banks Weigh Adding the Trump Administration to Their Risk Disclosures,” by Bloomberg’s Richard Partington, Stephen Morris and Dakin Campbell: “The world’s biggest banks are poised to warn investors that President Donald Trump has the potential to roil global markets and impact their firms by redrawing regulations and limiting the free movement of employees ... U.S. and U.K. banks are considering adding to their risk disclosures or beefing up particular sections in their annual reports due later this month ... They’d likely cite the incoming new administration as a potential source of heightened uncertainty, but stop short of mention Trump by name, they said.” http://bloom.bg/2l7zZ25

WALL STREET WATCH -- “It’s Boom Time Again for America’s Largest Banks: Goldman Sachs shares hit all-time high,” by WSJ’s Liz Hoffman and Christina Rexrode: “Shares in America’s banks are booming again, with Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and Bank of America Corp. hitting fresh trading milestones Tuesday that seemed unreachable during the crucible of the financial crisis. Investor expectations of higher interest rates, lower taxes, lighter regulation and faster economic growth under the Trump administration have added $280 billion in combined market value to the nation’s six largest banks since Nov. 8.” http://on.wsj.com/2kJ4lXB

NEXT STEP FOR THE ECHO -- “Amazon, Google Dial Up Plans to Turn Smart Speakers Into Home Phones: The tech giants are working on adding voice-calling features to Echo and Google Home,” by WSJ’s Ryan Knutson and Laura Stevens: “The tech giants could launch the feature this year, the people said -- but the effort is hung up over concerns about privacy, telecom regulations and emergency services. And they are aware of the inherent awkwardness of having phone conversations on a speaker.” http://on.wsj.com/2kJjN62

SUSAN GLASSER PODCAST -- ‘An Absolutely Crazy Time to Hold a Meeting with the President of the United States’: Israeli Prime Minister Benjamin Netanyahu flew to D.C. to kick off a new era after his rocky dealings with President Obama. Then the last 48 hours happened. In an exclusive BONUS “The Global Politico” podcast with Susan Glasser, longtime U.S. ambassador Dan Shapiro, who served as Obama’s top Israel adviser throughout his presidency and sat in on all of his stormy meetings with Netanyahu, takes us inside what will no doubt be an extraordinary first formal summit with President Trump. Story: http://politi.co/2kJiior … Podcast: http://apple.co/2kJ9q1U

MEDIAWATCH -- “Jim Impoco out at Newsweek: Staff in ‘shock’ over abrupt departure,” by Joe Pompeo: “Impoco, the editor in chief of Newsweek for the past three-and-a-half years, is leaving the magazine in an abrupt shakeup announced to employees Tuesday morning. He is being replaced by Matt McAllester, the editor of Newsweek’s London-based international operation, who will move to New York in a new title as global editor in chief.” http://politi.co/2liMpGo

--“NBCUniversal, BuzzFeed Co-Developing TV Content,” by WSJ’s Shalini Ramachandran: “BuzzFeed and Comcast Corp.’s NBCUniversal are unveiling new original series under development, the companies’ first joint television productions since the formation of their partnership nearly a year and a half ago. The companies said the first of the shows will be a ‘crime investigation docu-series’—akin to Netflix’s ‘Making a Murderer’ and HBO’s ‘The Jinx’—based on investigative reporting by a BuzzFeed News reporter, Katie J.M. Baker. The series will trace the case of Jessica Chambers, a Mississippi teenager who was mysteriously burned alive in December 2014.” http://on.wsj.com/2lJQrJ0

--“Only ‘Walking Dead’ Zombies Defeat Fox News’ Bill O’Reilly in Cable Ratings” – The Wrap: http://bit.ly/2lPoziA

--“Inside the Macedonian Fake News Complex,” by Samanth Subramanian in Wired: In 2016 “Veles attained a weird infamy in the most powerful nation on earth: stories in The Guardian and on BuzzFeed revealed that the Macedonian town of 55,000 was the registered home of at least 100 pro-Trump websites, many of them filled with sensationalist, utterly fake news. … Within Veles itself, the young entrepreneurs behind these websites became subjects of tantalizing intrigue. Between August and November, Boris earned nearly $16,000 off his two pro-Trump websites. The average monthly salary in Macedonia is $371.” http://bit.ly/2l7vggz

--“NBC News Revamps Leadership and Acquires Stake in European Network,” by NYT’s John Koblin: “Andrew Lack ... [has] named Noah Oppenheim, the executive in charge of ‘Today,’ as NBC News’s new president, while also announcing a major investment in a European television network. Mr. Oppenheim, 38, will replace Deborah Turness, who will be moved into a new position — president of NBC News International — where she will be the liaison between the news division and the European network, called Euronews.” http://nyti.ms/2lJWKfDi

SPOTTED: Roger Stone and Matt Boyle at the Palm for lunch -- Stone sat underneath Donald Trump’s portrait on the wall ... Michelle Obama at SoulCycle in Georgetown on Monday

TRANSITIONS -- Former HFA Ohio deputy digital director and Iowa caucus alum Hannah Fine is now the digital director for Sen. Sherrod Brown (D-Ohio) ... Blake Androff is back on Capitol Hill after a five-year stint with the Obama administration at Interior. He recently started a new position at the House Democratic Policy and Communications Committee (DPCC).

... Devan Barber, who served as research director at the DSCC, is joining End Citizens United as director of polling and strategy. They’re also adding Rajan Narang as director of state and local strategy. ... After four years as Madeleine Albright’s go-to comms person, Alexis Krieg starts today as deputy press secretary to Sen. Elizabeth Warren (D-Mass.). A native Texan, she does have some Massachusetts experience -- she worked on Warren’s 2012 campaign.

BIRTHDAY OF THE DAY: Burson-Marsteller’s Founding Chairman Harold Burson, who comes into the N.Y. office nearly every day, is 96 -- he’s celebrating with a small family dinner at Trattoria Dell’Arte -- read his Playbook Plus Q&A: http://politi.co/2kJhMGR

BIRTHDAYS: Comedy Central’s Ben Purdy, an ABC alum ... TPM’s Josh Marshall, the pride of Upland, Calif., is 48 ... Katarina Price Frans ... Mercury SVP Jen Wlach, an ABC News alum … John Anderson, former presidential candidate and Illinois congressman, is 95 … Admiral Jim Stavridis is 62 ... WSJ’s Amanda Lilly ... Jonathan Salant, Bloomberg alum now with NJ Advance Media ... Jackie Kier, former senior policy advisor for the Obama National Economic Council ... Carrie Sheffield, founder of Bold, a millennial focused conservative media company ... Alex Siegel, deputy director of the RJC (hat tip: Matt Brooks) ... Politico’s Keely Herring ... Politico Europe’s Jules Johnston and Madalina Ciulin ... Brunswick’s Sourav Bhowmick ... Rep. Kathleen Rice (D-NY) is 52 ... Peter Feldman (h/t Tim Burger) … Lindsey Teague, the pride of Palm Harbor, Fla. ... Bobby Panzenbeck ... Jason Thielman, COS for Sen. Daines ... Kent Talbert ... Priya Singh, alum of the U.S. Mission to the U.N. now a senior consultant at Deloitte … Reidworld’s Christopher Anderson …

... Andrea Bitely, a Politico alum now comms. director for Michigan Attorney General Bill Schuette ... Amy Clark, VP of PR at BrandLinkDC ... Beth Solomon, managing director of external affairs and development at CARE ... Valentina Pereda, Hillary alum and former deputy director of Hispanic media at the Obama WH ... Kerry Feehery, Mel Martinez alum now at Holland & Knight ... Dan O’Brien, DCCC alum now director of political affairs at NAFCU ... Shalini Vajjhala, EPA alum now at re:focus partners … Brian Wilson, Fox alum now president of Right Tone Communications … George Alan Barger ... William John Cox ... Amanda Gordon ... Janie Kim, Coburn alum now an associate at TTR Sotheby’s International Realty ... Betsy Broadman ... Robert Swan, Ted Kennedy alum ... Gerry Dickinson ... Alby Maccarone ... Linda Roth … Carlos Sanchez ... Kirk Brown ... Andrew Moyer ... Nick Bauer ... Mona Murphy ... Chad Maisel (h/ts Teresa Vilmain) ... “Simpsons” creator Matt Groening is 63 ... Miranda July is 43 (h/ts AP)

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