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Presented by Morgan Stanley: Playbook is POLITICO's must-read briefing on what's driving the day in Washington Aug 27, 2018 View in browser
By Jake Sherman, Anna Palmer, Daniel Lippman and Eli Okun

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BREAKING ... "Trump announces preliminary NAFTA deal with Mexico," by Sabrina Rodríguez and Adam Behsudi: "The development, which happened after U.S. and Mexican trade officials met regularly for five weeks, could clear the way for Canada to return to the table to try to reach a final updated agreement in the coming days. ... [T]he final deal with Mexico shows that Trump has agreed to back off some of his key demands." POLITICO

-- PRESIDENT DONALD TRUMP from the Oval Office referred to the partial agreement as the United States-Mexico trade agreement and said he would terminate NAFTA, per pooler Franco Ordoñez of McClatchy. The president threatened tariffs against Canada if upcoming negotiations fail to yield either a separate deal or Canada's entrance into this one.

-- "It's a big day for trade. It's a big day for our country," Trump said. U.S. Trade Representative Robert Lighthizer said a letter would likely go to Congress this week. IN ATTENDANCE: Jared Kushner, John Kelly, Luis Videgaray and Ildefonso Guajardo, plus Mexican President Enrique Peña Nieto on speakerphone.

-- BEFORE EVERYONE GETS ALL WORKED UP, this will need to garner congressional approval. Because of reporting requirements, this will not come before Congress for a vote until 2019, according to sources involved in this process. IT IS WAY TOO EARLY to tell whether this will be ratified or not -- especially if Democrats take the House.

JUST POSTED -- "Bruce Ohr Fought Russian Organized Crime. Now He's a Target of Trump," by NYT's Adam Goldman and Katie Benner: "Those who know Mr. Ohr seem perplexed that the president has singled him out. Co-workers and former associates describe him as a scrupulous government official who cares deeply about the Justice Department. ...

"Mr. Ohr was a manager, not a litigator, who built bridges with law enforcement agencies around the world, former Justice Department officials said. He sent top deputies to Hungary to root out the nascent Russian mob in the early 2000s. F.B.I. agents viewed the commitment as a sign of his seriousness about combating Russian organized crime." NYT

Good Monday afternoon. SCOOP -- "Nation's top student loan official resigns," by AP's Ken Sweet: "Seth Frotman will be stepping down from his position as student loan ombudsman at the end of the week ... Frotman is the latest high-level departure from the Consumer Financial Protection Bureau since Mick Mulvaney ... took over in late November. ...

"'The damage you have done to the Bureau betrays these families and sacrifices the financial futures of millions of Americans in communities across the country,' Frotman said." AP

STEPHANIE MURRAY: "White House flag returns to full staff two days after McCain's death": "Presidential proclamations for the death of a prominent U.S. official typically call for the flag to be lowered until the date of interment. McCain's funeral is planned for Saturday." POLITICO

-- MATT HOUSE (@mattwhouse): "Senators Schumer & McConnell have requested that the @DeptofDefense provide necessary support so that U.S. flags on all government buildings remain at half mast through sunset on the day of Senator McCain's [interment]."

-- Trump refused to respond to questions about McCain in the Oval Office this morning.

TWEET OF THE DAY -- KELLI WARD (@kelliwardaz): "Political correctness is like a cancer!"

A LOOK BACK AT MCCAIN-MANAFORT -- THE ATLANTIC'S FRANKLIN FOER: "John McCain's Epiphany About Paul Manafort": "According to McCain aides, the crucial moment came in the planning for the 2008 convention. I was told that Manafort lobbied desperately to become manager of the Republican National Convention, to take on the role of orchestrating the show. This was the sort of job that he held several times before. It represented the sort of behind-the-scenes power that he sought his entire career. Because of his relationship with Davis, and because of his resume, he thought of the job as something close to his birthright.

"But McCain didn't want any further association with Manafort, so he denied him the job, a rejection that sent Manafort into a fit of rage and depression. All the evidence for rejecting Paul Manafort as a man of dubious character was amply available in 2008-and McCain acted upon it." The Atlantic

Presented by Morgan Stanley:

Can we fight our dependence on tech with more technology? Technology promised us more productivity and better lives. Now, it seems impossible to stop looking at our screens. We explored the unexpected market that's arisen to fight distraction. Learn more.

THE INVESTIGATIONS -- "Mueller probe plunders New York tabloid swamp," by Dana Rubinstein and Laura Nahmias: "A foul-mouthed taxi kingpin with a history of defrauding state government. A salon owner who ran a prostitution ring before running for governor. A comedian who was the voice of H.R. Pufnstuf. They're all longstanding New York fringe characters, and they've all been pulled into Robert Mueller's web, giving the wide-ranging investigation that has Washington on edge a distinctly New York tinge.

"'They're kinda exactly the trio you would expect at the New York politics version of the Star Wars bar,' said Neal Kwatra, a Democratic political consultant, referring to the Mos Eisley Cantina on the fictional planet of Tatooine. 'Weird, wild and par for our current course.'" POLITICO

THE BIG PICTURE -- "'It Is the Era of Trump': How the President Is Remaking the Republican Party," by WSJ's Janet Hook in Jacksonville, Florida: "After more than two decades of tension within the GOP between a restive base and its traditional establishment, Trumpism, the archetypal grass-roots movement, is winning.

"With the 2018 primaries about to end, all but two of the 37 Republicans Mr. Trump has endorsed for House, Senate and governor during their primary campaigns have won. Mr. Trump has abandoned or undercut the party's traditional commitment to free trade, fiscal conservatism and a hawkish foreign policy. Mr. Trump's most vocal GOP critics in elective office ... have been defeated in primaries, announced their retirement or gone quiet." WSJ

-- JONATHAN MARTIN and MAGGIE HABERMAN: "A Trump Endorsement Can Decide a Race. Here's How to Get One": "Thick binders have been assembled on all high-level Republican candidates and sitting members of Congress. The binders include their votes, their behavior on social media and what they said about Mr. Trump as he sought the presidency.

"In the most significant races, a survey has been sent to the candidates asking where they stand on issues and requesting that they grade the president. The candidates are judged on several criteria, including how quickly they respond." NYT

WHAT'S ON THE PRESIDENT'S MIND -- @realDonaldTrump at 8:57 a.m.: "Thank you to the great @JimBrownNFL32, perhaps the greatest running back of all time, for your wonderful words and support. Since our meeting in New York, African-American UNEMPLOYMENT has reached the LOWEST LEVEL IN HISTORY. You get it!"

... at 9:37 a.m.: "The Fake News Media worked hard to get Tiger Woods to say something that he didn't want to say. Tiger wouldn't play the game -- he is very smart. More importantly, he is playing great golf again!"

2018 WATCH -- "'Sick of Losing,' Democrats Race to the End of a Wild Florida Primary for Governor," by NYT's Patricia Mazzei in Hollywood, Florida, and Jonathan Martin in D.C.: "Florida takes a measure of civic pride in being a political microcosm of the country, and Democrats here see the governor's race as a testing ground for how to campaign successfully in the Trump era. Should the party try to lure away centrist white voters uneasy with the president, or should it mobilize young and non-white voters who already lean Democratic but often do not vote in midterm elections?

"The leading candidates reflect the contours of the national party, and its struggles to decide on its ideological direction." NYT

-- WAPO'S ERICA WERNER in PIPERTON, TENNESSEE "Republicans struggle to run with Trump but against his trade wars": "The tariffs, and Democratic messaging concerning them, present GOP candidates with a complicated calculus: stand with Trump and support a policy that may threaten their constituents' livelihoods or break ranks on trade with a president who is strongly backed by the party's voters. ...

"In Tennessee, Democrat Phil Bredesen aired an early campaign ad touting his opposition to the tariffs. ... [Marsha] Blackburn has made her alliance with Trump central to her campaign, but she has deviated on trade." WaPo

THE WAY AUSTIN WORKS ... HOUSTON CHRONICLE'S EMILY FOXHALL: "Ahead of Abbott fundraiser, a Lubbock developer says the unspeakable": "Gov. Greg Abbott was headed to Lubbock, and developer George McMahan was excited to meet him. Pledging $10,000, he joined the local committee hosting the fundraiser for Abbott's campaign.

"Then, in an interview with a local television station, he said the unspeakable. 'You make a large donation to the governor, and in turn you are eligible for appointment to the Board of Regents,' he told the ABC affiliate station, KAMC, referring to the Texas Tech University board. ...

"'What this individual suggested is not only false, but also illegal,' said Ciara Matthews, a spokeswoman for Abbott, in a prepared statement. 'Because of the unfortunate comments, the donation was returned. This is not how the Governor does business.'" Houston Chronicle

KNOWING GLENN GREENWALD -- "The Bane of Their Resistance," by The New Yorker's Ian Parker: "During the past two years, he has further exiled himself from the mainstream American left ... Greenwald has argued that the available evidence concerning Russian activity has indicated nothing especially untoward; he has declared that those who claim otherwise are in denial about the ineptitude of the Democrats and of Hillary Clinton, and are sometimes prone to McCarthyite hysteria.

"These arguments, underpinned by a distaste for banal political opinions and a profound distrust of American institutions-including the C.I.A., the F.B.I., and Rachel Maddow-have put an end to his appearances on MSNBC, where he considers himself now banned, but they have given him a place on Tucker Carlson's show, on Fox News, and in Tennys Sandgren's Twitter feed." The New Yorker

ON THE WORLD STAGE -- "Canceled Pompeo Trip Tests South's Strategy to Win Over North Korea," by WSJ's Andrew Jeong in Seoul: "Pyongyang has repeatedly pressured Seoul to proceed with more economic engagement and to bypass international sanctions. Meanwhile, Washington has been leery of Seoul's attempts to push too quickly on engagement without more concrete progress on denuclearization.

"The danger for [Moon Jae-in] is being seen as siding with Pyongyang, said Kim Hyun-wook, a professor at the Korea National Diplomatic Academy, a state-run school specializing in training South Korean diplomats. 'South Korea has been perceived as trying to convince Washington of North Korea's cause, instead of the other way around,' he said." WSJ

-- "Macron: Europe can't depend on U.S. for security," by Zachary Young: POLITICO Europe

TRADE WARS -- "Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital," by WSJ's Will Mauldin: "Government records show that a team from the New York-based firm approached the Commerce Department, including one meeting with Secretary Wilbur Ross, saying Canadian newsprint imports were hurting One Rock's investment in North Pacific Paper Co. ... Commerce responded to One Rock's appeal by setting tariffs on Canadian imports, causing newsprint prices to jump by as much as 30%." WSJ

MEDIAWATCH -- FIRST IN PLAYBOOK: BEN BERKOWITZ, who was announced in late July as the next editor-in-chief of Storyful, a social media intelligence firm owned by NewsCorp, has decided to not join the company and instead stay in his current job as VP of digital at WNBC, according to a source familiar with his decision. Berkowitz, an alum of Thomson Reuters and the AP, referred questions about why he backed out to WNBC, where a spokesperson declined to comment.

-- Sharb Farjami, CEO of Storyful, owned by News Corp, told us: "Ben's decision to stay in his current role was a personal one. Storyful is currently in the process of appointing a new Editor in Chief and expect to make an announcement soon."

FOR YOUR RADAR -- The Institute of Politics at Harvard Kennedy School today announced the addition of five new resident fellows: Amy Dacey, former CEO of the DNC and executive director of EMILY's List; former Rep. Joseph Heck (R-Nev.); John Noonan, senior counselor for military and defense affairs for Sen. Tom Cotton (R-Ark.); Brittany Packnett, vice president of national community alliances and engagement at Teach for America and co-founder of Campaign Zero; and Margaret Talev, senior White House correspondent for Bloomberg News and CNN political analyst. Three former mayors will also serve as visiting fellows: Mitch Landrieu of New Orleans, Michael Nutter of Philadelphia, and Antonio
Villaraigosa of Los Angeles.

WEEKEND WEDDINGS -- Dan Blum, VP at Mair Strategies and alum of Scott Walker, Rob Portman and RNC, on Saturday married Kristina Alford, who runs a nanny agency. The couple wed at St. Louis Church in Cincinnati. Pic

-- Sarah Rogers, director of member services for House GOP Chair Cathy McMorris Rodgers (R-Wash.), married Sam Burke on Saturday at the Naval Academy Chapel in Annapolis. Pool report: "Sarah and Sam met on a tour of Naval Academy in 2016 ... Sam, a captain in the Marine Corps, returned from Afghanistan at the end of July. He currently serves in the Marine Corps Senate liaison office on Capitol Hill." McMorris Rodgers and Rep. Jason Smith (R-Mo.) attended the wedding. Pic

-- Laurie M. Ellington, manager of U.S. public policy at Amazon and an alum of former Rep. Ed Pastor (D-Ariz.), and Antrell Tyson, an assistant general counsel at the National Association of Broadcasters and alum of the Senate Homeland and Governmental Affairs Committee, were married on Saturday in Atlanta, Georgia. Pic ... Another pic

WELCOME TO THE WORLD -- Daniel Libit, a POLITICO alum who now runs the college sports website NMFishbowl.com, and Ashley Libit, a fifth grade teacher in Chicago, welcomed Spencer Joshua Libit. Pic ... Instapic

-- David Lee, director of Leavitt Partners and a Bob Bennett alum, and Becca Lee welcomed Adrienne Lee, who came in at 8lbs, 20 inches. Pic

ENGAGED -- Molly Weaver, an alum of Hamilton Place Strategies and Watson Green, got engaged to Ray Schupp, principal at H&R Retail. He proposed last weekend while the couple was with her family in Bay Harbor in northern Michigan. Pic ... Instapic

BONUS BIRTHDAY: Kevin Seifert, executive director of Team Ryan.

Presented by Morgan Stanley:

Technology promised us more productivity and better lives. Now, it seems impossible to stop looking at our screens. In a recent Morgan Stanley Ideas Podcast episode, we explore the unexpected market that's arisen to fight distraction. We're diving deep into the solutions-to-digital-distraction market as we talk to Suze Yalof-Schwartz, the founder of Unplug, a meditation app that helps people, well, unplug from technology by plugging in. Next, Manoush Zomorodi, a technology journalist, shows us that the way we interact with our screens now might change how our kids will interact with each other. And Louella San Juan, a Managing Director and the Global Head of Client Technologies at Morgan
Stanley, takes us to what she believes is the root of our unending dependence on technology: the ubiquity of the smartphone. Listen to the full podcast now at morganstanley.com/podcast.

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