Playbook PM: Two bombshell books incoming

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Jun 12, 2020 View in browser
 
POLITICO Playbook PM

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

Presented by

THE WHITE HOUSE called a lid at 11 a.m., meaning the president is not expected to appear publicly for the rest of the day.

SPOTTED: SEBASTIAN GORKA at DCA reading a script out loud while looking at his iPhone. He was not wearing a mask. PicGORKA is on Cameo, and it appears he filmed two videos from DCA recently wearing a shirt that looks just like the one in the photo. Those Cameo videos have him talking about someone not getting credit they think they deserve, and someone who seems to have done poorly on the GMAT. … Sen. ROB PORTMAN (R-Ohio) on the 9:30 from DCA to Columbus.

WHAT WASHINGTON IS TALKING ABOUT … WAPO'S MARY JORDAN, adopted from her book "The Art of Her Deal: The Untold Story of Melania Trump" (out Tuesday, $28 on Amazon) … "Melania Trump was in no rush to move into the White House. That's when she renegotiated her prenup, a new book says": "When Melania Trump stayed behind in New York after her husband's presidential inauguration, she said it was because she didn't want to interrupt their then-10-year-old son Barron's school year. News stories at the time concentrated on an apparent frostiness between the first couple and the exorbitant taxpayer costs to protect Melania and Barron away from Washington. …

"The incoming first lady needed time to cool off, and 'to amend her financial arrangement with Trump — what Melania referred to as "taking care of Barron,"' Jordan writes in 'The Art of Her Deal: The Untold Story of Melania Trump.'

"Melania's original prenup had not been incredibly generous, Jordan reports. But she has been married to Trump longer than both his ex-wives and had bargaining power: Her perceived calming effect on him was so great that Trump's pals and at least one of Trump's adult children exhorted her to come to the White House as soon as possible. …

"Observers in the White House had noticed an uptick in her mood by mid-2018 that might account for her being so willing to fight for a second term. According to three people close to Trump, Jordan writes, Melania had finally renegotiated the prenup to her liking. She'd already been looking out for Barron's future by making sure he had dual citizenship in Slovenia, which will position him to work in Europe for the Trump Organization when he comes of age.

"Now, she'd made sure he wasn't shut out of the family business. Jordan writes: 'She wanted proof in writing that when it came to financial opportunities and inheritance, Barron would be treated as more of an equal to Trump's oldest three children.'"

SIMON AND SCHUSTER has put out a description of JOHN BOLTON'S new book: "This is the book Donald Trump doesn't want you to read.

"There hasn't been a detailed, inside account on how this president makes decisions on a day-to-day basis, until now. John Bolton served as National Security Advisor to President Donald Trump for 519 days. A seasoned public servant who had previously worked for Presidents Reagan, Bush #41, and Bush #43, Bolton brought to the administration forty years of experience in international issues and a reputation for tough, blunt talk. In The Room Where It Happened: A White House Memoir (available June 23, 2020), Bolton offers a substantive and factual account of the period from April 9, 2018 to September 10, 2019, when he had nearly daily communications with the President.

"Drawn from his personal participation in key events, and filled with perspective and humor, Bolton covers an array of topics—chaos in the White House, sure, but also assessments of major players, the President's inconsistent, scattershot decision-making process, and his dealings with allies and enemies alike, from China, Russia, Ukraine, North Korea, Iran, the UK, France, and Germany." The full release (h/t Meridith McGraw)

REMEMBER: BOLTON COULD'VE TESTIFIED … @kyledcheney: "Bolton book will say Trump committed 'Ukraine-like transgressions' across his entire foreign policy. Yet he and his deputy chose to legally fight efforts to tell Congress about it during impeachment."

Happy Friday afternoon.

 

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CDC LATEST -- "CDC urges organizers of large gatherings to 'strongly encourage' use of face masks," by WaPo's Lena Sun: "The guidance from the Centers for Disease Control and Prevention comes after more than a week of national protests against police brutality where many attendees and police did not wear masks. It also coincides with President Trump's plans to hit the campaign trail next week and to accept his party's nomination in Jacksonville, Fla. The Republican National Committee has indicated it does not want to require participants to wear masks for the speech.

"Jay Butler, CDC's deputy director of infectious diseases, sidestepped questions about whether the agency's guidance on wearing masks at large gatherings applies to political rallies, saying the recommendations speak for themselves."

THIS GUY … LARRY KUDLOW, via Quint Forgey: "White House economic adviser Larry Kudlow on Friday declared that a 'second wave' of the coronavirus was not descending upon the country, even as cases of Covid-19 are spiking in more than a dozen states. 'There is no emergency. There is no second wave. I don't know where that got started on Wall Street,' Kudlow told 'Fox & Friends.'

"Although Kudlow, director of the National Economic Council, acknowledged he is 'not the health expert,' he said he had spoken with the administration's top public health officials 'at some length' Thursday evening. 'They are saying there is no second spike. Let me repeat that. There is no second spike,' he said.

"'What you do have is certain spots are seeing a little bit of a jump up. Some small metropolitan areas are seeing it. The CDC and the health people are all over it. They've sent some task forces out to deal with it,' Kudlow added, partly attributing increases in Covid-19 cases to more widespread testing availability." POLITICO

-- MEANWHILE -- "Oregon Gov. Kate Brown hits pause on lifting coronavirus restrictions with infections on the rise," by The Oregonian's Laura Gunderson

THIS THREAD, from YASCHA MOUNK of Johns Hopkins, is well worth your time. It makes the case that JOE BIDEN needs to define himself better for swing voters, but persuadable TRUMP 2016 voters are turned off by the president's handling of race and respond to simple pro-Biden/anti-Trump ads.

-- WSJ'S MIKE BENDER and AARON ZITNER: "Trump Drives Economic Message as Poll Shows He Has Few Strengths"

THE UGLY JOBLESS PICTURE -- "Unemployed workers face new delays and paused payments as states race to stamp out massive nationwide scam," by WaPo's Tony Romm: "State and federal investigators are scrambling to stop scammers from stealing millions of dollars in unemployment benefits, imposing a raft of new restrictions that have inadvertently deprived some out-of-work Americans from receiving much-needed payments for weeks. The broad, national crackdowns began in May …

"States including Maine, Michigan, Pennsylvania and Washington each have reviewed scores of past applications, while halting some current unemployment payments, hoping to thwart fraudsters before they could sap any more funds. The aggressive actions have helped some of these states identify tens of thousands of suspicious claims filed by alleged criminals, many of whom had relied on personal information stolen from unsuspecting workers to obtain benefits they were not eligible to receive." WaPo

 

NEXT WEEK - A VIRTUAL CONVERSATION ON WATER SECURITY : How can we secure long-term solutions at a time when the Covid-19 pandemic consumes the attention and resources of local and state leaders? Join POLITICO on Monday, June 15 at 10:20 a.m. EDT for a virtual panel discussion on the policies and legislation needed at the state, regional and federal levels to meet the water needs of Western states. REGISTER HERE.

 
 

THE LATEST RESEARCH -- "Researchers ask if survivor plasma could prevent coronavirus," by AP's Lauran Neergaard: "Survivors of COVID-19 are donating their blood plasma in droves in hopes it helps other patients recover from the coronavirus. And while the jury's still out, now scientists are testing if the donations might also prevent infection in the first place.

"Thousands of coronavirus patients in hospitals around the world have been treated with so-called convalescent plasma — including more than 20,000 in the U.S. — with little solid evidence so far that it makes a difference. One recent study from China was unclear while another from New York offered a hint of benefit." AP

HYDROXYCHLOROQUINE IN THE WILD -- "Florida ordered 1 million doses of a Trump-touted drug. Hospitals didn't want it," by Andrew Atterbury and Matt Dixon in Tallahassee: "Florida is sitting on more than 980,000 unused doses of hydroxychloroquine, a drug President Donald Trump touted as a 'game changer' in the fight against the coronavirus, after only a handful of hospitals in the state asked for access to the medicine. …

"Despite the governor's pitch, few hospitals have requested the drug, which was provided free-of-charge from Israeli drug maker Teva Pharmaceuticals in a deal DeSantis said was facilitated by U.S. Ambassador to Israel David Friedman. Only 16,100 doses have been shipped to six hospitals as of Thursday." POLITICO

POLLS DU JOUR -- "64% of Americans oppose 'defund the police' movement, key goals," by ABC's Kendall Karson: "Nearly two-thirds of Americans oppose calls for defunding police departments, compared to 34% who back the movement, and 60% specifically oppose reducing the budget for police to reallocate it to other public health and social programs, while 39% support that move." ABCThe poll

-- "Most Americans Want Police Reform But Don't Back 'Defund The Police,'" by HuffPost's Ariel Edwards-Levy and Kevin Robillard: "A near-universal majority of Americans support at least some changes to policing in the United States … There is majority support for proposals circulating in Congress to ban chokeholds and make it easier to track and charge officers accused of misconduct. But the idea of 'defunding the police' has little support from the public." HuffPost The poll

ON THE GROUND -- "For George Floyd's Mourners, What Does 'Justice' Mean?" by NYT's Astead Herndon in Houston: "In the more than two weeks since he died, 'Justice for George Floyd' has become an omnipresent mantra, but there remains little agreement on what that would mean from a public policy perspective.

"For a growing consortium of progressive groups focused on young voters, justice for Mr. Floyd requires dismantling police power and investing in programs related to mental health, housing and education — which activists believe would reduce crime and violence. But among the larger Democratic electorate, including older black voters who helped Mr. Biden secure the nomination, many are holding out hope that police departments can be reformed." NYT

NEXT UP ... WSJ'S JOSHUA JAMERSON and ARIAN CAMPO-FLORES: "Many Americans who have taken to the streets in the past three weeks say they are planning for a summer of protests aimed in large part at local governments that are entering their budget-planning season.

"Several leaders of the protests sparked by the killing of George Floyd while in police custody have repeatedly said they intend to continue rallying for overhauls of police departments." WSJ

BEYOND THE BELTWAY -- "Do Police Officers Make Schools Safer or More Dangerous?" by NYT's Dana Goldstein: "The national reckoning over police violence has spread to schools, with several districts choosing in recent days to sever their relationships with local police departments out of concern that the officers patrolling their hallways represent more of a threat than a form of protection." NYT

UPSET WATCH -- "The Republican congressman who could get booted for officiating a gay wedding," by Ally Mutnick: "A small universe of Republican Party activists will drive through the parking lot of a central Virginia church on Saturday to decide the fate of Rep. Denver Riggleman. A one-term congressman with a libertarian streak, Riggleman has found himself locked in a fierce intraparty battle after he enraged local officials in his district by officiating a same-sex marriage last year.

"His reelection prospects are further hampered by Virginia's insular election system, which allows a paltry number of GOP delegates to choose the nominee at a convention. By Sunday morning, he may become the third House incumbent to fall in the 2020 cycle. Riggleman's opponent, former Campbell County supervisor and Liberty University employee Bob Good, is running as a staunch social conservative." POLITICO

 

Protect Yourself and Others From Coronavirus: Even if you don't have symptoms, you could spread the coronavirus. Practice these physical distancing and hygiene tips to keep yourself and your loved ones safe: Stay 6 feet away from others in public; wash your hands often for 20+ seconds; disinfect frequently touched surfaces like cellphones and light switches; and wear a cloth face covering when out in public. Together, we can slow the spread. Visit coronavirus.gov to learn more.

 
 

FIONA HILL TALKS to the FT'S DEMETRI SEVASTOPULO: "Hill says the most revealing part about the [impeachment] hearings was learning what other officials had been doing without her knowledge. 'I knew more about what was going on in the Kremlin than what was going on in the White House.' …

"[S]he says she got to experience Russian history — inside the White House. 'I kept thinking 'Bolshevik Revolution,'' she says, pointing to the infighting. 'I had always wondered what it was like . . . and then I found myself in the middle.'"

CONVENTIONAL WISDOM -- "'We will put the safety of people first': Jacksonville mayor says no safety promises made to lock RNC bid," by Gary Fineout in Tallahassee: "[Lenny] Curry said it was too early to say what type of safety protocols would be needed during the events — scheduled to be held from Aug. 24 through Aug. 27 — when asked whether attendees would be required to wear face masks or do temperature checks." POLITICO

IMMIGRATION FILES -- "Trump Administration Moves to Solidify Restrictive Immigration Policies," by NYT's Zolan Kanno-Youngs and Maggie Haberman: "Under the cloak of a pandemic and the convulsions of anti-racist protests, the Trump administration continues to advance its policies to restrict legal immigration, halting the flow of foreign workers and raising the bar for asylum seekers hoping for sanctuary. …

"If adopted, the rules would lay a framework of restrictionist immigration policies that can be enforced after rules rooted in the pandemic are lifted." NYT

AP'S LOLITA BALDOR: "U.S. naval buildup in Indo-Pacific seen as warning to China": "For the first time in nearly three years, three American aircraft carriers are patrolling the Indo-Pacific waters, a massive show of naval force in a region roiled by spiking tensions between the U.S. and China and a sign that the Navy has bounced back from the worst days of the coronavirus outbreak.

"The unusual simultaneous appearance of the three warships, accompanied by Navy cruisers, destroyers, fighter jets and other aircraft, comes as the U.S. escalates criticism of Beijing's response to the coronavirus outbreak, its moves to impose greater control over Hong Kong and its campaign to militarize human-made islands in the South China Sea." AP

AFTERNOON READ -- KATHERINE LANDERGAN in Camden, N.J.: "How One City Really Did Abolish the Police": "Camden is one rare—and complicated—success story, a city that really did manage to overhaul its police force and change how it operated. And it took a move as radical and controversial as what some activists are calling for today: Camden really did abolish its police department. And then the city set about rebuilding the police force with an entirely new one under county control …

"The reforms carry lessons for what it takes to transform the police in any city. They ultimately amounted to nothing less than a reboot of the culture of policing in Camden, changing the way every beat cop in the city did his or her job. And they also required enough political will at the top—all the way to the governor—to survive opposition from police unions and some residents. … But nothing is as simple as it sounds in a tweet. While largely a success story, the overhaul was by no means a clear win for social-justice progressives." POLITICO Magazine

WHITE HOUSE DEPARTURE LOUNGE -- "White House Chief Digital Officer departs to launch tech firm," by Axios' Sara Fischer: "[Ory] Rinat was instrumental in crafting the White House's digital strategy and policy over the past three years. He has been with the White House since 2017. … Rinat's new company, to be based in D.C., will close a seed round of investment this month, including some venture capital investment, per a source familiar with the funding. … It will power a technology platform for performance-based influencer and affiliate marketing."

NEW PODCAST … "Oppo File": "Inside the Dark Art of American Politics … by Kate Anderson Brower and Joseph Rodata" The podcast

TRANSITION -- Tess Whittlesey is now manager for campaigns and elections media at Planned Parenthood. She previously was deputy national press secretary for Pete Buttigieg's campaign, and is a Salud Carbajal and Adam Schiff alum.

BONUS BIRTHDAY: Mayra Macías, executive director of Latino Victory (h/t the Latina Caucus)

 

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Extra Crunch Friday: 9 top space tech VCs on the market's opportunities and challenges

Extra Crunch Newsletter
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Friday, June 12, 2020 By Walter Thompson

Welcome to Extra Crunch Friday

Welcome to Extra Crunch Friday image

Image Credits: NurPhoto / Getty Images

For our latest investor survey, Darrell Etherington spoke to a group of VCs who actively invest in space-based technologies to learn about how this niche sector has changed since the COVID-19 pandemic began.

“On the whole, the group sounds fairly optimistic about the sector and its potential,” he found.

Three key takeaways: 1) defense spending isn’t going anywhere; 2) sensors, data access and security offer huge opportunities, and 3) spacetech’s TAM is as vast and limitless as the heavens themselves.

Here’s who he spoke to:

  • Chad Anderson, Managing Partner, Space Capital
  • Ethan Batraski, Partner, Venrock
  • Will Porteous, General Partner and COO, RRE Ventures
  • Shahin Farshchi, Partner, Lux Capital
  • Tess Hatch, Vice President, Bessemer Venture Partners
  • Matt Kozlov, Managing Director, Techstars Starburst
  • Rayfe Gaspar-Asaoka, Principal, Canaan Partners
  • Rob Coneybeer, Managing Director and co-founder, Shasta Ventures
  • Dylan Taylor, Chairman and CEO, Voyager Space Holdings

Pivoting from VCs to founders, next Thursday, Plaid CEO Zach Perret will appear on Extra Crunch Live.

Plaid is best known for creating APIs that support fintech applications and was purchased earlier this year for $5.3 billion by Visa. We’ll ask Perret about the sale, the recent boom in fintech interest and find out why investors are rushing to fund API-focused startups.

Thanks for reading! I hope you have a safe and relaxing weekend.

 

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Read more

Why are unicorns pushing back IPOs when the Nasdaq is near record highs?

Why are unicorns pushing back IPOs when the Nasdaq is near record highs? image

Image Credits: Sam Salek/EyeEm / Getty Images (Image has been modified)

“The unicorns are still at it, Vision Fund 2 or no Vision Fund 2,” wrote Alex Wilhelm in today’s morning column.

Instacart’s recent raise boosted its valuation above $13 billion, and DoorDash hopes to stack more cash until its pre-money valuation tops $15 billion.

Investors don’t seem to be skittish about these late-stage unicorns, but at these prices, “only the largest and richest companies might be able to afford buying them,” he concludes.

 

Read more

Extra Crunch Live: Join Superhuman CEO Rahul Vohra for a live Q&A on June 16 at 2pm EDT/11 AM PDT

Sponsored by TechCrunch

Curious about how Superhuman innovated email and what it's taking on next? Join the conversation and bring your questions!

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We asked 12 Boston startups about their diversity efforts

We asked 12 Boston startups about their diversity efforts image

Image Credits: Maremagnum / Getty Images

A November 2017 study by the Mass Technology Leadership Council found that it would take until 2085 for Black workers in the Boston area to reach the same hiring rate of white men. Latinx workers wouldn’t reach that stage until 2045, and women would have to wait until 2070.

For their June Boston column, Natasha Mascarenhas and Alex Wilhelm polled 15 area startups about their D&I initiatives:

“Only a handful of companies responded, which wasn't a good sign,” they found.

Read more

Airbnb, Lyft and Uber: When to call it a comeback

Airbnb, Lyft and Uber: When to call it a comeback image

Image Credits: Klaus Vedfelt / Getty Images

Uber and Lyft shed much of their value in March after widespread lockdowns began to curb the spread of the novel coronavirus, but both have since largely rebounded.

Airbnb cut 25% of its staff to help it survive the COVID-19 era, but in recent weeks, the company is seeing year-over-year growth in the number of nights booked on its platform.

The lesson? Investors perceive companies that make deep spending cuts as better poised for recovery.

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Software's meteoric rise: Have VCs gone too far?

Software's meteoric rise: Have VCs gone too far? image

Image Credits: Klaus Vedfelt / Getty Images

B2B software valuations are riding high; at least 14 enterprise software companies have a market cap above $20 billion.

“It seems inevitable that venture capital firms will also over-rotate into software,” says Steve Sloane, a partner at Menlo Ventures.

According to Sloane, these valuations reflect “the specific incentives of mega-funds,” as “these investors are incentivized to aggressively push valuations upward so that they can keep up with capital commitment timelines.”

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Gauging growth in the most challenging environment in decades

Gauging growth in the most challenging environment in decades image

Image Credits: skodonnell / Getty Images

After closing a $40 million Series C round just before the COVID-19 slowdown, LA-based FloQast developed a new business plan that assumed its runway was shrinking.

The idea was intended to be a thought exercise for the founders, but after the pandemic hit, FloQast reduced its burn rate with a small round of layoffs and other cutbacks.

In a guest post for Extra Crunch, FloQast CEO Michael Whitmire brings readers inside his process for keeping the company on track as it charts a course. “Play the game with the hand you were dealt,” he advises.

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Decrypted: DEA spying on protesters, DDoS attacks, Signal downloads spike

Decrypted: DEA spying on protesters, DDoS attacks, Signal downloads spike image

Image Credits: Treedeo / Getty Images

The wave of protests over George Floyd’s death has impacted the cybersecurity world: the U.S. Drug Enforcement Agency was granted authority to conduct “covert surveillance” on protestors and DDos attacks against law enforcement and activists are on the rise.

Also: VMWare acquires a network security firm and Israel cybersecurity think tank Team8 has raised $104 million as it plans to spin out its own VC arm.

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What to consider before publishing your diversity memo

What to consider before publishing your diversity memo image

Many VC firms have recently announced that they’re stepping up their efforts to be more inclusive when it comes to who they hire and fund, but without “actual numbers and a deadline,” there’s no sure way to benchmark their progress, reports Natasha Mascarenhas.

She gathered several general principles for investors who want to reach underserved communities. Step one: disclose your current diversity statistics.

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Tulsa is trying to build a startup ecosystem from scratch

Tulsa is trying to build a startup ecosystem from scratch image

Image Credits: DenisTangneyJr / Getty Images

Aerospace and energy are the top industries in Tulsa, Oklahoma, but a consortium of academics, philanthropists and VCs are working to foster a startup ecosystem in the city.

Ron Miller examined the efforts, which aims to “create future-proof jobs” and raise the standard of living for area residents.

"Our mandate is to really establish the strategy for the city to figure out what are the handful of opportunities that show the most promise for growth and in which Tulsa can be positioned as a leader, not just a participant,” said Nicholas Lalla, co-founder and managing director of Tulsa Innovation Labs.

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The pace of startup layoffs may be slowing down

The pace of startup layoffs may be slowing down image

Image Credits: Pulp Photography / Getty Images (Image has been modified)

Using data provided by Layoffs.fyi, Alex Wilhelm unpacked the numbers for startup layoffs since the COVID-19 pandemic and associated lockdowns began.

“The number of people laid off stayed aloft from March to April and into the first weeks of May,” he reports.

“In contrast, the total number of companies cutting staff declined from early April through the end of May; fewer companies cut staff as time went along, then, but it appears that they made larger cuts.”

Read more

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