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Presented by Bank of America:
<p>Presser melts down * Trump rattles market * Story that won't go away</p>
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<span class="main-header" style="font-size: 42px; font-family: 'gordita=old', Arial, Helvetica, sans-serif; color: #008dc8; letter-spacing: -1px; =ine-height: 1;">Axios AM</span>
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<span class="bodytext" style="font-size: 13px; color: #4a4a4a; font-fa=ily: 'gorditamedium', Arial, Helvetica, sans-serif; ">By Mike Allen = <span style="margin: 0 6px;">·</span>Jan 12, 2017</sp=n>
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<p>Good morning \u2014 eight days to President Trump; six days to Axios =aunch. Thank you for your encouragement and suggestions during this beta w=ek of Axios AM. <a href="mailto:mailto:mike@axios.com">Lemme know what's=on your mind.</a> And please urge your friends, family and colleagues to =oin the breakfast conversation by hitting this <a href="http://link.axio=.com/join/simple-signup?utm_source=email_staff_prelaunch" target="_bla=k">one-click sign-up. </a></p>
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<span class="bodytext hed" style="font-size: 27px; font-family: 'gordit=medium', Arial, Helvetica, sans-serif; color: #4a4a4a; letter-spacing: -0.=px; line-height: 1.5;">
1. The 1 thing
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<p>Pause for a second: The past year has been so absurd, so blow-your-mind =npredictable that we are almost numb to tectonic shifts in our politics an= behavior.<br></p><p>Think about the half day of madness that started when=BuzzFeed posted, in full, an unsubstantiated, one-source memo, funded by p=rtisans, that claimed acts -- too disgusting to print -- by the man a week=from the Oval Office:</p><ul><li>This sets Twitter afire and prompts an al=-caps Trump tweet about FAKE NEWS. Then, in a scene unprecedented in U.S. =istory, the incoming president starts his first press conference in 24 wee=s with his incoming White House press secretary unloading on reporters for=trying to delegitimize a president before he even takes office.</li><li>Th=n, with stage props and clapping staff, the president charges CNN, which D=DN'T post the memo, with purveying "Fake News," prompting CNN corresponden= Jim Acosta to shout question after question (while NPR's Mara Liasson, wh= had been called on, tried to talk) in a manner never seen under the last =wo presidents.</li><li><span></span>Reporters arrived as early as 7 a.m. t= get seats at the 11 o'clock presser. By 9:30, when Maggie Haberman and I =ot there, it was standing room only. A Russian reporter taped a standup fr=m the seats down front, and a Russian behind me kept hollering at Trump ev=n after the elevator doors had closed behind him.</li><li><span></span>Tru=p, rhetorically more measured than during his campaign, went on to explain=he was turning his business over to his sons, bucking a decades-old tradit=on of cutting all biz ties.</li><li><span></span>"I hope at the end of eig=t years[!]," Trump said as his closing line, "I'll come back and say, 'Oh,=you did a good job.' Otherwise, if they do a bad job, I'll say, 'You're fi.'"</li><li><span></span><strong>Be smart: </strong>The show overshadowe= the substance. Trump admitted Russia hacked Dems, announced his V.A. secr=tary, endorsed repeal-and-replace, and said Supreme Court nominee "probabl= within two weeks" of inauguration.</li></ul>
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<span class="bodytext hed" style="font-size: 27px; font-family: 'gordit=medium', Arial, Helvetica, sans-serif; color: #4a4a4a; letter-spacing: -0.=px; line-height: 1.5;">
\u200b2. The power of Trump's words
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<p>At one point the <a href="http://link.axios.com/click/8588226.13258/aH HM6Ly93d3cuYmxvb21iZXJnLmNvbS9uZXdzL2FydGljbGVzLzIwMTctMDEtMTEvZHJ1Zy1zd=9ja3MtcGx1bmdlLWFzLXRydW1wLXRocmVhdGVucy10by1mb3JjZS1wcmljZS1iaWRkaW5n/5873924c17c54d77a8b8cB14bb6c79" target="_blank">NINE fastest-falling stoc=s</a> on the S&P 500 were drug companies after he said he wants to "cr=ate new bidding procedures for the drug industry because they're getting a=ay with murder."<br></p><ul><li>Trump previously moved markets with attack= on auto and defense companies.</li><li>After he said the government will =save billions of dollars" by forcing drug companies to bid for government =usiness, he added: " And we're going to do that with a lot of other indust=ies." </li><li>Jon Steinberg, <a href="http://link.axios.com/click/85882=6.13258/aHR0cHM6Ly93d3cuZmFjZWJvb2suY29tL2NoZWRkYXIvdmlkZW9zLzE3ODE5ODU3NT=0NTU0ODgv/5871993924c17c54d77a8b8cB4e2ba3e8" target="_blank">founder andO of Cheddar TV,</a> told me that going into the day, he thought the Dow=would hit 20,000: "The pharma comments at the beginning of the presser wei=hed on the index. It still closed up 98 points. You have to imagine that w=thout the pharma comment we would have gotten the 50 more points to break =he 20k level." </li></ul>
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<span class="bodytext hed" style="font-size: 27px; font-family: 'gordit=medium', Arial, Helvetica, sans-serif; color: #4a4a4a; letter-spacing: -0.=px; line-height: 1.5;">
3. A story that will never go away
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<p>Trump's decision to keep his global empire under the full control of his=sons promises to spark controversy throughout his presidency. No doubt, he=threw up some walls: There will be no foreign deals by his son, an ethics =dviser to monitor any fishy deals, and no formal or informal role for DJT.=But he's not doing what those before have by fully divesting or simply tos=ing his assets into a blind trust.</p><ul><li>The Wall Street Journal <a h="http://link.axios.com/click/8588226.13258/aHR0cDovL3d3dy53c2ouY29tL2=pdmVjb3ZlcmFnZS9kb25hbGQtdHJ1bXAtcHJlc3MtY29uZmVyZW5jZS0wMTExNw/5871993924c54d77a8b8cBb3a09faa" target="_blank">has a smart example </a>of the m=ny possible conflicts this will present: "Trump's financial disclosures sa=d he received $1 million to $5 million from his licensing deal with the Tr=mp International Hotel and Tower in Panama. If the U.S. were to get into a=dispute with that country during the Trump administration, a desire to mai=tain this revenue stream could potentially influence Mr. Trump's decision-=aking, some experts argue."</li></ul>
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<p class="bodytext" style="-webkit-text-size-adjust: 100%; font-size: 1=px !important; letter-spacing: 1.4px; font-family: 'gordita', Arial, Helve=ica, sans-serif; color: #008dc8; text-transform: uppercase; line-height: 1=5;">A Message From Bank of America</p>
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<span class="bodytext hed" style="font-size: 27px; font-family: 'gordit=medium', Arial, Helvetica, sans-serif; color: #4a4a4a; letter-spacing: -0.=px; line-height: 1.5;">Environmental, Social and Governance</span>
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<p>As part of responsible growth, Bank of America believes we can play a pr=minent role in tackling some of the world’s most pressing problems.<=p>
<p>We’re not alone in thinking this way. A <a href='http://link.axi=s.com/click/8588226.13258/aHR0cHM6Ly93d3cudGhlc3RyZWV0LmNvbS9zdG9yeS8xMzky=TE5MS8xL2RvZXMtc29jaWFsbHktcmVzcG9uc2libGUtaW52ZXN0aW5nLXBheS5odG1s/5871994c17c54d77a8b8cBa88ad556' target='_blank'>2016 survey of investors</a>=found that 40 percent believe companies with good environmental, social an= governance practices are less susceptible to risks, and nearly the same p=rcentage think these businesses show better financial performance.
</p>
<p>As our economy moves forward, the most successful businesses will be the=ones with strong connections between their business practices and their va=ues. We’ve learned the best way to ensure our success is through res=onsible growth.
</p>
<p>To learn more, visit <a href='http://link.axios.com/click/8588226.1325=/aHR0cDovL2JhbmtvZmFtZXJpY2EuY29tL3Jlc3BvbnNpYmxlZ3Jvd3Ro/5871993924c17c54wa8b8cB88900a68' target='_blank'>bankofamerica.com/responsiblegrowth.</=></p>
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<span class="bodytext hed" style="font-size: 27px; font-family: 'gordit=medium', Arial, Helvetica, sans-serif; color: #4a4a4a; letter-spacing: -0.=px; line-height: 1.5;">
\u200b4. Dossier backstory
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<p>The former British spy behind the Trump dump, Christopher Steele, was hi by Fusion GPS, a Washington firm headed by former WSJ reporter Glenn Si=pson, according to <a href="http://link.axios.com/click/8588226.13258/aH HM6Ly93d3cubnl0aW1lcy5jb20vMjAxNy8wMS8xMS91cy9wb2xpdGljcy9kb25hbGQtdHJ1b=AtcnVzc2lhLWludGVsbGlnZW5jZS5odG1s/5871993924c17c54d77a8b8cBa70ea0f9" targ=t="_blank">an NYT front-pager:</a></p><ul><li>"The story began in Septem=er 2015, when [an unknown] wealthy Republican donor who strongly opposed M=. Trump put up the money to hire \u2026 Fusion GPS \u2026 to compile=a dossier about the real estate magnate's past scandals and weaknesses."</=i><li>"For months, Fusion GPS gathered the documents and put together the =iles from Mr. Trump's past in business and entertainment \u2026 After M=. Trump emerged as the presumptive nominee in the spring, the Republican i=terest in financing the effort ended. But Democratic supporters of Hillary=Clinton were very interested, and Fusion GPS kept doing the same deep dive=, but on behalf of new clients." </li><li><a href="http://link.axios.com=click/8588226.13258/aHR0cHM6Ly93d3cubnl0aW1lcy5jb20vMjAxNy8wMS8xMS91cy9wb2=pdGljcy9kb25hbGQtdHJ1bXAtcnVzc2lhLWludGVsbGlnZW5jZS5odG1s/5871993924c17c54wa8b8cCa70ea0f9"></a><strong>Sound smart in D.C.: </strong>Neil King, one=of the top journalists at the WSJ and husband of Shailagh Murray, a senior=Obama adviser, just took a job with Fusion GPS.</li></ul>
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\u200b5. Russia quest goes to Hill
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<p>The administration schedules a classified, bipartisan House briefing tom=rrow with intel officials on Russian involvement in the election. Briefers=at the 9:15 a.m., members-only meeting will be DNI Director Clapper, CIA D=rector Brennan, FBI Director Comey and NSA Director Rogers.</p><ul><li><st=ong>Sure bet:</strong> Comey will be asked why he went public about Clinto='s emails but not about the Trump document.</li><li><strong>Trump at press=r:</strong> "As far as hacking, I think it was Russia. But I think we also=get hacked by other countries and other people. \u2026 If Putin likes D=nald Trump, guess what, folks? That's called an asset, not a liability."</=i></ul>
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\u200b6. The 1 article to read in full \u2014 twice
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<p>Peter Thiel <a href="http://link.axios.com/click/8588226.13258/aHR0cHM=Ly93d3cubnl0aW1lcy5jb20vMjAxNy8wMS8xMS9mYXNoaW9uL3BldGVyLXRoaWVsLWRvbmFsZC nVtcC1zaWxpY29uLXZhbGxleS10ZWNobm9sb2d5LWdhd2tlci5odG1s/5871993924c17c54wa8b8cB59b1e540" target="_blank">takes a victory lap with Maureen Dowd<=a>, on the cover of Thursday Styles as "Trump's Tech Pal Explains Himself.= His take on Hillary: "If you're too optimistic, it sounds like you're out=of touch \u2026 Somehow, what was unusual about Trump is, he was very p=ssimistic but it still had an energizing aspect to it."</p><ul><li>Thiel, =art of Trump's Transition Team Executive Committee, says he has no plans t= buy a place in Washington: "One of the things that's striking about talki=g to people who are politically working in D.C. is, it's so hard to tell w=at any of them actually do \u2026 It's a sort of place where people mea=ure input, not output. You have a 15-minute monologue describing a 15-page=rsum, starting in seventh grade." </li><li>BEST QUOTE: "One of=my friends has a theory that the rest of the country tolerates Silicon Val=ey because people there just don't have that much sex. They're not having =hat much fun."</li><li><span></span><a href="http://link.axios.com/click88226.13258/aHR0cHM6Ly93d3cubnl0aW1lcy5jb20vMjAxNy8wMS8xMS9mYXNoaW9uL3Bl=GVyLXRoaWVsLWNvbmZpcm0tb3ItZGVueS5odG1s/5871993924c17c54d77a8b8cB6ab98cac"=target="_blank">Fun sidebar </a>with rapid-round "Confirm or Deny" quest=ons \u2026 Dowd: "Zuckerberg did not have a great pitch." Thiel: "Confi=m. He was 19 years old. He was totally introverted, didn't say much. You d=sperately need a good pitch when you have a bad company. When you have a gt company, you don't need a great pitch."</li><li><span></span><strong>D=wd:</strong> "There's no job you would take in the Trump administration." =strong>Thiel</strong>: "Confirm. I want to stay involved in Silicon Valley=and help Mr. Trump as I can without a full-time position."</li><li><span><=span><strong>Dowd:</strong> "You think the stock market is a giant bubble =ight now."<strong> Thiel:</strong> "Confirm." </li></ul>
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\u200b7. Tops in tech
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<ul><li>Apple AirPods <a href="http://link.axios.com/click/8588226.13258/=HR0cHM6Ly9xei5jb20vODgzMjI0L2FwcGxlLWFhcGwtd2l0aC1iZWF0cy1hbmQtdGhlLWFpcnB=ZHMtaGFzLWFscmVhZHktY29ybmVyZWQtNDAtb2YtdGhlLXdpcmVsZXNzLWhlYWRwaG9uZXMtbW=ya2V0/5871993924c17c54d77a8b8cBb0292ded" target="_blank">have already co=nered </a>over 40% of the wireless headphone market, according to Quartz: =The wireless headphone market is starting to look a lot like the early sma=tphone market."</li><li>D.C. and L.A. outperformed Silicon Valley in rise =f V.C. funding last year, <a href="http://link.axios.com/click/8588226.1%8/aHR0cHM6Ly93d3cuZnQuY29tL2NvbnRlbnQvOWFkY2Y1ZWEtZDZkOS0xMWU2LTk0NGItZT=lYjM3YTZhYThl/5871993924c17c54d77a8b8cBbac9d5ed" target="_blank">per FT =rite-up </a>of a report from PWC and CBInsights: "The DC area posted a 26 =er cent increase in fundraising totals year on year, buoyed by a $1.2bn fu=ding round for satellite company One Web, while Snapchat \u2026 helped =L.A.'s] 'Silicon Beach' achieve a 13 per cent increase."</li><li><span></s=an><strong>BUT: </strong>"Start-ups based in Silicon Valley still receive =ore venture capital than any other region, with about a quarter of global =unding flowing there, almost double that of the next region, New York, and=more than the whole of Europe."</li><li><span></span><a href="http://lin=.axios.com/click/8588226.13258/aHR0cHM6Ly93d3cuY2JpbnNpZ2h0cy5jb20vcmVzZWF=Y2gtdmVudHVyZS1jYXBpdGFsLXJlcG9ydHMtcTQtMjAxNg/5871993924c17c54d77a8b8cBfaaa1" target="_blank">Top five U.S. regions</a> for venture capital: 1)=Silicon Valley 2) N.Y. 3) D.C. 4) New England 5) L.A./Orange County. Top s=ates for venture: 1) California 2) New York 3) Virginia.</li></ul>
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\u200b8. Tops in media trends
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<p>"Instagram's shameless Snapchat knockoff is doing marvelously well," <a =ref="http://link.axios.com/click/8588226.13258/aHR0cHM6Ly9xei5jb20vODgzN=I0L2luc3RhZ3JhbXMtc2hhbWVsZXNzLXNuYXBjaGF0LWtub2Nrb2ZmLWlzLWRvaW5nLW1hcnZl=G91c2x5LXdlbGwv/5871993924c17c54d77a8b8cB1bbcb6ee" target="_blank">accor=ing to Quartz:</a> Facebook-owned "Instagram announced that Instagram Stor=es, a feature it launched in August 2016, \u2026 has accumulated 150 mi=lion daily active users. That's exactly how many users Snapchat had as of =une 2016." The power of the Facebook: Instagram Stories took four months t= get the same number users that took Snapchat over four years. <br></p>
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\u200b9. Trending in business
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<p><strong>Wall Street firms' </strong>Q4 reports are expected to show the =est year since '09, <a href="http://link.axios.com/click/8588226.13258/a=R0cHM6Ly93d3cuYmxvb21iZXJnLmNvbS9uZXdzL2FydGljbGVzLzIwMTctMDEtMTEvd2FsbC1z=HJlZXQtcG9pc2VkLXRvLXBvc3QtYmVzdC1maW5pc2gtdG8tdHJhZGluZy15ZWFyLXNpbmNlLTA=/5871993924c17c54d77a8b8cB1d50c1d5" target="_blank">according to Bloombe=g:</a> "The question analysts have for bank executives is whether the four=h quarter heralds a return for bond trading -- traditionally the biggest d=iver of Wall Street profits -- or a false dawn created by Donald Trump's s=rprise victory in the U.S. presidential election</p><ul><li>"The coming ye=r could be the first since 2012 that both trading and dealmaking revenue i=creases, Barclays Plc analysts led by Jason Goldberg wrote in a note this =onth."</li></ul><p><strong>While nationalism spreads</strong>, China goes =lobal: Xi Jinping will be the first Chinese president in history to attendvos. He will discuss the Chinese plan for "inclusive globalization," des=ite his government's long history of protectionist policies that protect i=s exporting dominance. Axios' Christopher Matthews points out: </p><ul><li=With nationalism is on the rise in the U.S. and Europe, Xi has emerged as =ne of the few leaders eager promote further global integration \u2014 r=etorically, at least.</li><li><strong>Be smart: </strong>For all the chatt=r about Russia, Trump insiders see conflict with China over currency and te as the dominant flash point of next year.</li></ul>
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\u200b10. 1 fun thing
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<p>Taco Bell will go national Jan. 26 with a<a href="http://link.axios.co=/click/8588226.13258/aHR0cDovLzZhYmMuY29tL2Zvb2QvdGFjby1iZWxsLWZyaWVkLWNoa=NrZW4tdGFjby1zaGVsbC1yb2xsaW5nLW91dC1uYXRpb253aWRlLzE2OTgwMjMv/5871993924c|54d77a8b8cBf588ac6c" target="_blank"> taco shell made of fried chicken= t</a>he Naked Chicken Chalupa. Tested well in Bakersfield and Kansas City=<br></p><p><strong>WHAT'D I MISS?</strong> <a href="mailto:mailto:mike@a=ios.com">Click here</a> to shoot me your leaks, thoughts and suggestions.<=p>
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<p class="bodytext" style="-webkit-text-size-adjust: 100%; font-size: 1=px !important; letter-spacing: 1.4px; font-family: 'gordita', Arial, Helve=ica, sans-serif; color: #008dc8; text-transform: uppercase; line-height: 1=5;">A Message From Bank of America</p>
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<span class="bodytext hed" style="font-size: 27px; font-family: 'gordit=medium', Arial, Helvetica, sans-serif; color: #4a4a4a; letter-spacing: -0.=px; line-height: 1.5;">Responsible Growth</span>
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<p>At Bank of America, we have a responsibility to grow by improving our cu=tomers’ financial lives and having a positive, lasting impact on our=communities. We call this <strong>“Responsible Growth,”</stron=> and it means we are:</p>
<p>
<ul>
<li>Driving the economy in real and sustainable ways</li>
<li>Helping create jobs, develop communities, foster economic mobility and ress society’s biggest challenges</li>
<li>Managing risk and providing a positive return to our customers, clients=and our business</li>
</ul>
</p>
<p>From being the leader in clean energy financing to increasing our small =usiness loans by 12% year over year, we are growing responsibly and creati=g tangible value for our customers and for our communities. To learn more,=visit <a href='http://link.axios.com/click/8588226.13258/aHR0cDovL2Jhbmt=ZmFtZXJpY2EuY29tL3Jlc3BvbnNpYmxlZ3Jvd3Ro/5871993924c17c54d77a8b8cC88900a68= target='_blank'>bankofamerica.com/responsiblegrowth.</a></p>
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