Playbook PM: Inside the White House squabble with Democrats over Fauci’s testimony

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May 05, 2020 View in browser
 
POLITICO Playbook PM

By Jake Sherman, Anna Palmer, Garrett Ross and Eli Okun

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PRESIDENT DONALD TRUMP ALLOWED an unvarnished and candid peek into his mind in the middle of this global public health crisis, unfurling an angry tirade at a political group seeking to push him out of the White House, musing aloud that a pair of female reporters were not like a television actress who played a housewife and contradicting his own White House's explanation for why ANTHONY FAUCI could not testify to the House.

NOT ONLY did the president lambast his rivals, he also managed to elevate them and their causes in the same breath.

IN AN INTERVIEW WITH THE NEW YORK POST, the president said that CBS reporters PAULA REID and WEIJIA JIANG were not Donna Reed -- the actress who played Mary Bailey in "It's a Wonderful Life" and later a housewife in "The Donna Reed Show." REID and JIANG have both drawn TRUMP'S ire for tough questioning.

JUST AFTER MIDNIGHT, the president tweeted four times about the LINCOLN PROJECT, a GOP political group with designs on defeating him. The LINCOLN PROJECT has $1.2 million in its coffers, roughly 1% of the president's kitty. The group has been running ads on Fox News. In the last day, THE PRESIDENT has also taken aim at MSNBC's "MORNING JOE," while touting the ratings his news conferences have gotten.

BEFORE BOARDING A HELICOPTER EN ROUTE to Phoenix, TRUMP told reporters that he would not permit FAUCI -- the administration's most recognizable infectious disease expert -- to testify because the Democratic House was filled with "a bunch of Trump haters" who "want our situation to be unsuccessful, which means death." (It's not clear the juice is worth the squeeze here, since FAUCI will have to face Democrats in the House and Senate.)

THE WHITE HOUSE has spun a different narrative publicly about why FAUCI won't testify. Last week, they said task force members were simply too busy to come to Capitol Hill in the middle of the pandemic.

BUT PRIVATELY, HOUSE DEMOCRATS thought they had a chance to land FAUCI. Last Monday, the Appropriations Committee reached out to the NIH to inquire about the doctor's availability. A Democratic aide said the NIH seemed interested, even asking what social distancing measures the committee was taking.

LAST TUESDAY, however, Democrats' outlook turned darker when the Appropriations Committee heard that the White House was reviewing requests for testimony. The committee reached out to the administration to see if Chairwoman NITA LOWEY (D-N.Y.) and White House chief of staff MARK MEADOWS could talk.

ON WEDNESDAY NIGHT, LOWEY and MEADOWS spoke on the phone several times, as the chief of staff pushed for more details about the hearing -- the committee says he wanted to clear individual questions, but the White House says he wanted to know more details about the topic of the hearing.

THEY SPOKE FOR THE LAST TIME at 10:46 p.m. They resolved to speak the next day, but didn't. On Friday morning, NIH Director FRANCIS COLLINS told Rep. ROSA DELAURO (D-Conn.) -- who has purview over NIH -- that FAUCI would be testifying in front of the Senate, not the House. The Democrats then went public with their complaint that FAUCI was not being made available. The White House said they were not acting in good faith. Although TRUMP is now saying the House is "a bunch of Trump haters."

SPEAKER NANCY PELOSI responded to Trump's remark with a summary dismissal: "It's not worth getting into," she said, per a pool report by WaPo's MIKE DEBONIS.

FAUCI will testify in front of Senate HELP on May 12.

Good Tuesday afternoon.

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YOWZA … WAPO: "Kushner coronavirus effort said to be hampered by inexperienced volunteers," by Yasmeen Abutaleb and Ashley Parker: "The coronavirus response being spearheaded by President Trump's son-in-law, Jared Kushner, has relied in part on volunteers from consulting and private equity firms with little expertise in the tasks to which they were assigned, exacerbating chronic problems in obtaining supplies for hospitals and other needs, according to numerous government officials and a volunteer involved in the effort. …

"Although some of the volunteers have relevant backgrounds and experience, many others were poorly matched with the jobs they were assigned, including those given the task of securing personal protective equipment, or PPE, for hospitals nationwide, according to a complaint filed last month with the House Oversight Committee. …

"The document alleges that the team responsible for PPE had little success in helping the government secure such equipment, in part because none of the team's members had significant experience in health care, procurement or supply-chain operations. In addition, none of the volunteers had existing relationships with manufacturers or a clear understanding of customs requirements or Food and Drug Administration rules, according to the complaint and two senior administration officials. …

"Supply-chain volunteers were instructed to fast-track protective equipment leads from 'VIPs,' including conservative journalists friendly to the White House, according to the complaint and one senior administration official. 'Fox & Friends' host Brian Kilmeade, for example, called two people he knew in the administration to pass along a lead about protective equipment in an effort to be helpful, according to two people familiar with the outreach. Fox News Channel host Jeanine Pirro also repeatedly lobbied the administration for a specific New York hospital to receive a large quantity of masks, one of the people said.

"Kilmeade and Pirro said they were not aware that their tips were being prioritized, a Fox News spokeswoman said."

HOUSE MAJORITY LEADER STENY HOYER confirmed HEATHER CAYGLE and SARAH FERRIS' story from this morning -- that the House would move without Republicans to pass their own CARES package next week. This is a signal that the eventual package is a while away.

-- HOYER REPLIES TO KEVIN MCCARTHY on his fixes for House operations: Thanks, but we're good.

RATCLIFFE TESTIFIES -- "Ratcliffe sheds hard-line posture with vows to be independent intel chief," by Andrew Desiderio and Martin Matishak: "President Donald Trump's pick to lead the nation's 17 intelligence agencies repeatedly vowed on Tuesday to be independent, breaking with the president's long-held view that the clandestine community has 'run amok' and demurring on Trump's suggestions that there is a 'deep state' trying to undermine his agenda.

"Rep. John Ratcliffe (R-Texas), a steadfast Trump ally vying to be the director of national intelligence, told members of the Senate Intelligence Committee in his confirmation hearing that he would provide the president and members of Congress with 'timely, accurate and objective intelligence.'

"'Let me be very clear: Regardless of what anyone wants our intelligence to reflect, the intelligence I provide, if confirmed, will not be impacted or altered as a result of outside influence,' Ratcliffe said, adding that he would provide intelligence briefings to the president even if he knew Trump would disagree with the conclusions, or if he believed his job were at risk for doing so.

"'Anyone's views on what they want the intelligence to be will never impact the intelligence that I deliver — never,' Ratcliffe pledged under intense questioning by Sen. Susan Collins (R-Maine). 'I won't shade intelligence for anyone.'" POLITICO

-- SEN. RICHARD BURR (R-N.C.) -- the Intel chairman -- said he planned to move RATCLIFFE'S nomination through his committee next week, per DEBONIS' pool report.

 

POLITICO Magazine Justice Reform: The Decarceration Issue, presented by Verizon: Over the past decade, the long-standing challenge of criminal-justice reform has emerged under the spotlight with a new twist: Both Republicans and Democrats are on board. But if both parties want to lower the incarceration rate, why are our jail and prison populations still so high? The latest series from POLITICO Magazine works to answer this important question and take a deeper look into what it will take to make progress in the policy and politics of justice reform. READ THE FULL ISSUE.

 
 

THE MILITARY'S REALITY … WSJ'S NANCY YOUSSEF in Fort Polk, La.: "Army's New Mission: Train for War, Avoid Coronavirus": "When the Army's Fourth Security Force Assistance Brigade arrives at this base in southwestern Louisiana next month for training to go to Afghanistan, the troops will gather where warfighting and coronavirus collide.

"A barracks that normally bunks 44 soldiers instead will hold only 12, in cots spaced 6 feet apart. When waiting in line at an assembly building, troops must stand in prespaced squares, painted red. Masks, gloves and eye protection will be required. So will temperature checks, quarantines and social distancing.

"'We're looking at the long game. We're not waiting for Covid-19 to go away,' said Gen. James McConville, chief of staff of the Army, who visited the training site last week.

"The Army will face the same uncertainties that confront the rest of the world as it plots how to cope with the pandemic: the possibility of infection, the need for vigilant prevention and a shortage of virus-testing supplies. But Gen. McConville said the Army must move ahead with training and deployment."

THE VACCINE RACE -- "Pfizer Begins Human Trials of Possible Coronavirus Vaccine," by NYT's Knvul Sheikh: "Pfizer and the German pharmaceutical company BioNTech announced that their potential coronavirus vaccine began human trials in the United States on Monday. If the tests are successful, the vaccine could be ready for emergency use here as early as September. …

"Pfizer, which is based in New York, and BioNTech injected the first human volunteers with their vaccine candidate, called BNT162, in Germany last month. The experimental shot was given to just 12 healthy adults, although the trial will eventually expand to 200 participants. In the United States, the drug companies plan to test the vaccine on 360 healthy volunteers for the first stage of the study, adding up to 8,000 volunteers by the end of the second stage." NYT

THE LATEST IN NEW YORK -- "Another 1,700 virus deaths reported in N.Y. nursing homes," by AP's Marina Villeneuve in Albany, N.Y.: "At least 4,813 people have died from COVID-19 in the state's nursing homes since March 1, according to a tally released by Gov. Andrew Cuomo's administration late Monday that, for the first time, includes people believed to have been killed by the coronavirus before their diagnoses could be confirmed by a lab test." AP

-- "De Blasio, NYC health officials warn of rare children's disease with potential links to coronavirus," by Amanda Eisenberg and Erin Durkin: "City leaders raised alarms Tuesday about a rare illness among children that is potentially associated with coronavirus, after fifteen kids were admitted to New York City's pediatric intensive care units showing symptoms.

"The city health department issued guidance on the condition Monday night. The kids, ages 2 to 15, reported illnesses compatible with multi-system inflammatory syndrome — which have also been reported in young people in the U.K. and some European countries. The symptoms are in line with Kawasaki disease, a rare disorder that inflames the blood vessels and could cause swelling in the hands and feet, among other issues." POLITICO New York

HMM -- "U.S. companies cut thousands of workers while continuing to reward shareholders during pandemic," by WaPo's Peter Whoriskey: "Since the coronavirus pandemic was declared, Caterpillar has suspended operations at two plants and a foundry, Levi Strauss has closed stores and toolmaker Stanley Black & Decker is planning layoffs and furloughs. Steelcase, the office furniture manufacturer, and World Wrestling Entertainment have also both shed employees.

"While thousands of their workers are filing for unemployment benefits, these companies rewarded their shareholders with more than $700 million in cash dividends. They are not alone. As the pandemic squeezes big companies, executives are making decisions about who will bear the brunt of the sacrifices, and in at least some cases, workers have been the first to lose, even as shareholders continue to collect." WaPo

 

TOMORROW - HOW DO WE SAVE SMALL BUSINESSES? The coronavirus has crushed small businesses across the country. There's been confusion and frustration stemming from the turbulent rollout of the Paycheck Protection Program. Join POLITICO chief economic correspondent Ben White tomorrow at 9 a.m. EDT for a virtual discussion with Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Small Business Committee, about how banks have struggled with the Paycheck Protection Program's disbursement process, what the next round of stimulus funding must include to keep small businesses and local economies afloat, and the return of elected officials to the Capitol despite concerns about spurring an outbreak. Have questions? Submit yours by tweeting it to @POLITICOLive using #AskPOLITICO. REGISTER HERE.

 
 

THE ECONOMY -- "U.S. March Trade Deficit Widened as Coronavirus Disruptions Spread," by WSJ's David Harrison: "The deficit rose 11.6% to a seasonally adjusted $44.4 billion in March from $39.8 billion in February, snapping two months of declines, the Commerce Department said Tuesday. Imports declined 6.2% to $232.2 billion in March, the lowest figure since October 2016. Exports were down 9.6% to $187.7 billion, lowest since November 2016." WSJ

-- "Why Home Prices Are Rising During the Pandemic," by WSJ's Nicole Friedman: "The economy is shrinking, businesses are closing and jobs are disappearing due to the coronavirus pandemic. But in the housing market, prices keep chugging higher. Home prices plunged during the last recession after a housing crash caused millions of families to lose their homes. Home values could start to erode again, especially when mortgage forbearances end, some economists warn.

"But that hasn't been the case so far. The median home price rose 8% year-over-year to $280,600 in March, according to the National Association of Realtors. While buyer demand has softened and sales fell 8.5% that month from the prior month, the supply of homes on the market is contracting even faster, recent preliminary data shows. … What's more, many sellers have been reluctant to cut prices." WSJ

THE REOPENING -- "Detroit automakers push for restart of plants within 2 weeks," by AP's Tom Krisher and Colleen Barry in Detroit: "Major U.S. automakers are planning to reopen North American factories within two weeks, potentially putting thousands of workers back on the assembly line as part of a gradual return to normality.

"Fiat Chrysler CEO Mike Manley said on an earnings conference call Tuesday his company plans to start reopening factories May 18, though that depends on an easing of government restrictions. Right now, Michigan's shelter-at-home order is in effect until May 15. Detroit automakers will likely be on the same timetable because their workers are represented by the same union. The United Auto Workers union on Tuesday appeared to be onboard." AP

DRUG DANGERS -- "This Drug May Cause Birth Defects. Japan's Pushing It for Coronavirus," by NYT's Ben Dooley in Tokyo: "[Japanese PM Shinzo] Abe has pushed the homegrown drug in news conferences and in meetings with world leaders, including a call with Mr. Trump and the other heads of the Group of 7. He has allocated nearly $130 million to triple an existing stockpile of the medication. And he has offered to provide it free to dozens of other countries.

"The prime minister, however, has glossed over one crucial fact: There is no solid evidence that Avigan is actually effective against Covid-19. While the drug has shown potential for treating some deadly diseases like Ebola in animal studies, there are limited findings that it works for any illness in humans. What Avigan, whose generic name is favipiravir, does have is a peculiar regulatory history and one dangerous potential side effect — birth defects." NYT

MEDIAWATCH -- Mark Schoofs is rejoining BuzzFeed as editor-in-chief, replacing Ben Smith. He currently is a visiting professor at the USC Annenberg School for Communication and Journalism.

-- "Danielle Carrig Exits Vice Media Group to Join Condé Nast as Communications Chief," by Variety's Todd Spangler

TRANSITIONS -- "Key FEMA Leader to Depart Amid Coronavirus Effort," by WSJ's Rachael Levy: "Josh Dozor, who is deputy assistant administrator for FEMA's response group, told colleagues he plans to leave in the coming weeks for personal reasons, according to these people. Mr. Dozor was involved in early discussions with the Department of Health and Human Services in coordinating the government's response to the new coronavirus before FEMA became the lead agency in mid-March." WSJ

-- Meredith Scialabba is now a senior director for financial services public affairs at FTI Consulting. She previously was a public affairs strategist at the CFTC.

BONUS BIRTHDAY: Former Rep. Charlie Gonzalez (D-Texas) is 75 (h/t John Barrow)

 

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Extra Crunch Tuesday: 7 VCs discuss how COVID-19 is changing the media startup landscape

Extra Crunch Newsletter
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Tuesday, May 05, 2020 By Walter Thompson

Welcome to Extra Crunch Tuesday

Welcome to Extra Crunch Tuesday image

Image Credits: Bryce Durbin / TechCrunch

A year ago, we surveyed a group of well-known venture capitalists about trends in entertainment, media and gaming.

Given the radical changes brought about by the COVID-19 pandemic, we reached out again to more top VCs who back companies with business models focused on advertising and content creation:

  • Gigi Levy-Weiss (Managing Partner, NFX)
  • Pär-Jörgen (PJ) Pärson (General Partner, Northzone)
  • Jana Messerschmidt (Partner, Lightspeed Venture Partners)
  • Kevin Zhang (Partner, Upfront Ventures)
  • Vasu Kulkarn (Partner, Courtside Ventures)
  • MG Siegler (General Partner, GV)
  • Matthew Hartman (Partner, Betaworks Ventures)

Many showed enthusiasm for esports and gaming, but no one seemed to expect advertising to bounce back in the short term. Said Kevin Zhang of Upfront Ventures, “there are only more shiny objects to chase after now.”


On Thursday, Hunter Walk of Homebrew joins us for another Extra Crunch Live Zoom call; the conversation is open to all, but Extra Crunch members will have an opportunity ask questions — sign up today!

Thanks for reading; have a great week.

 

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Read more

As Uber (reportedly) squeezes Lime, scooter startups run low on juice

As Uber (reportedly) squeezes Lime, scooter startups run low on juice image

Image Credits: Gary Hershorn / Getty Images

Scooters are expensive, and widespread shutdowns are keeping riders at home and off the streets, leading industry leaders Bird and Lime to scale back their operations.

Uber has bought its way into the micro-mobility market, but its recent investment in Lime may indicate plans to acquire the entire company. In today’s column, Alex Wilhelm ponders “why Uber would want to buy Lime's operations when it already has its own scooters.”

Read more

Join our Extra Crunch Live Q&A with Homebrew's Hunter Walk: May 7th at 1 pm ET/10 am PT

Sponsored by TechCrunch

One of Silicon Valley's top seed-stage investors will discuss changing valuations, deal pace and much more. Bring your questions!

Read more

Dear Sophie: Can I still get a green card given COVID-19, layoffs and recent H-1B changes?

Dear Sophie: Can I still get a green card given COVID-19, layoffs and recent H-1B changes? image

Dear Sophie:

I was recently laid off but found another position at a growing biotech company. My new employer just submitted the H-1B petition before the end of my grace period. I would like to stay permanently in the United States. How long do I have to apply for a green card?

If my employer isn't willing to sponsor me, I heard I can self-petition for an EB-1A or EB-2 NIW green card?

—Hopeful in Hayward

Read more

Extra Crunch Live: Join Hunter Walk for a Q&A May 7th at 1 pm ET/10 am PT

Extra Crunch Live: Join Hunter Walk for a Q&A May 7th at 1 pm ET/10 am PT image

Join Managing Editor Danny Crichton and Senior Editor Alex Wilhelm on Thursday for a live video chat with Hunter Walk, an investing partner at Homebrew.

The conversation will cover seed-deal pace, changing valuations, which verticals are performing the best (and the worst) and many other topics. Sign up for Extra Crunch today so you can join the conversation in real time.

Read more

As lockdowns stretch on, is edtech passing or failing?

As lockdowns stretch on, is edtech passing or failing? image

Image Credits: Ridofranz / Getty Images

The coronavirus made distance learning the norm, but educators and students are still figuring out how to use edtech: can you stop students at home from cheating? What if you don’t have a reliable internet connection? Should teachers take questions during a lesson?

Unexpected use cases are spurring innovation in edtech, reports Natasha Mascarenhas, who spoke to several founders working in the sector.

Read more

Introducing the term sheet grader

Introducing the term sheet grader image

Image Credits: Juan Silva / Getty Images

Veteran early-stage investor Jamie Goldstein shared a new tool with Extra Crunch his firm developed that lets them “compare different term sheets or help characterize whether a term sheet is good or evil.”

The term sheet grader uses nine key terms related to economics, control and decision-making that can help you evaluate deal terms and potentially, “reveal the true motivations of your new partner,” Goldstein says.

Read more

IPOs, crypto funds and other things I missed this week

IPOs, crypto funds and other things I missed this week image

Image Credits: Spencer Platt / Getty Images

In his column last Friday, Alex Wilhelm recapped a lively week of news that exposed major cracks in the advertising industry, saw a16z raise a new crypto fund worth $515 million, widespread layoffs, and an IPO filing he described as “a hot mess.”

Read more

An already struggling smartphone market takes a big hit from COVID-19

An already struggling smartphone market takes a big hit from COVID-19 image

Image Credits: Charleen Chao / Getty Images

Smartphone manufacturers had high hopes for 2020: widespread 5G rollouts would bring new models to market that gave jaded consumers strong reasons to buy.

“And then COVID-19 disrupted everything,” writes Brian Heater, who looked at industry data to get a sense of what the next two quarters might have in store.

Read more

As COVID-19 dries up funding, only drought-resistant cannabis startups will survive

As COVID-19 dries up funding, only drought-resistant cannabis startups will survive image

Matt Burns spoke to Schwazze CEO Justin Dye to learn more about how the COVID-19 pandemic has intensified uncertainty in an already shaky sector.

"This next reset in the cannabis industry will not only be aspirational, but it's going to be coupled with a requirement for performance in terms of executing against a plan and driving profits,” says Dye.

Read more

Mark Cuban: 'Raising money isn't an accomplishment, it's an obligation'

Mark Cuban: 'Raising money isn't an accomplishment, it's an obligation' image

In an Extra Crunch Live interview, Mark Cuban shared his thoughts on, well, pretty much everything.

Should venture-backed startups take PPP funds? How is he advising his portfolio companies during the pandemic? Does he have any plans to run for president? What’s the right way to pitch him?

Click through to read highlights from our chat or watch the entire episode on YouTube.

Read more

This Week in Apps: Zoom gets busted, TikTok's new record, contact tracing API launches

This Week in Apps: Zoom gets busted, TikTok's new record, contact tracing API launches image

In her weekly roundup of all things mobile, Sarah Perez reported on different countries’ efforts to create protocols for apps that trace coronavirus infections, along with the latest stats on TikTok’s growth, Facebook’s new “virtual dating” video-calling option and much more.

Read more

In conversation with Icebreaker, Finland's most active pre-seed VC

In conversation with Icebreaker, Finland's most active pre-seed VC image

European correspondent Steve O’Hear spoke to Riku Seppälä, co-founder and partner at Icebreaker, the most active pre-seed VC firm in Finland.

Because Icebreaker recently announced the launch of its second fund with an initial €50 million close, they discussed how the coronavirus shapes their thinking when it comes to dealmaking and the sectors where they plan to invest.

Read more

Why COVID-19 could delay Interswitch, Africa's next big IPO

Why COVID-19 could delay Interswitch, Africa's next big IPO image

Image Credits: TechCrunch/Bryce Durbin

Nigerian fintech unicorn Interswitch was rumored to have been working toward a public offering in the first half of 2020, but if the pandemic scuttles those plans, the repercussions will be felt throughout Africa’s startup ecosystem, Jake Bright reports.

Read more

Decrypted: Chegg's third time unlucky, Okta's new CSO, Rapid7 beefs up cloud security

Decrypted: Chegg's third time unlucky, Okta's new CSO, Rapid7 beefs up cloud security image

Image Credits: Treedeo / Getty Images

In his weekly security column, Zack Whittaker reports on major breaches at LabCorp and Chegg, the ongoing debate over contact-tracing privacy and a look at two startups in the space that have snagged funding — and another that’s pulled the plug.

Read more

A turbulent stock market is a boon to investing-focused fintech startups

A turbulent stock market is a boon to investing-focused fintech startups image

Image Credits: bombuscreative / Getty Images

How much is the economic downturn benefiting companies that help consumers save and invest? Alex Wilhelm looks at data from App Annie and Crunchbase to see how well consumer-focused fintech companies are faring.

Read more

All product creators can learn something from Jackbox Games' user experiences

All product creators can learn something from Jackbox Games' user experiences image

Image Credits: franckreporter / Getty Images (Image has been modified)

Jackbox Games has been entertaining people since the 1990s, but since millions of us began sheltering in place, the company’s games have become even more popular.

Beyond entertainment, Jackbox Games offer real lessons for product teams hoping to boost engagement or dial up customer delight that need “some inspiration on how to make something simple, fun and memorable.”

Read more

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