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Presented by Google: Playbook is POLITICO's must-read briefing on what's driving the day in Washington Oct 23, 2018 View in browser
By Jake Sherman, Anna Palmer, Daniel Lippman, Garrett Ross and Eli Okun

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BREAKING ... REBECCA MORIN: "Sandra Day O'Connor diagnosed with dementia": "'As this condition has progressed, I am no longer able to participate in public life,' she wrote. 'Since many people have asked about my current status and activities, I want to be open about these changes, and while I am still able, share some personal thoughts.' ...

"O'Connor noted that her diagnosis has not 'diminished my gratitude and deep appreciation for the countless blessings in my life.' 'How fortunate I feel to be an American and to have been presented with the remarkable opportunities available to the citizens of our country,' O'Connor wrote. 'As a young cowgirl from the Arizona desert, I never could have imagined that one day I would become the first woman justice on the U.S. Supreme Court.'" POLITICO

FOR YOUR RADAR -- @AFP: "#BREAKING: Trump wants to meet Putin in Paris on November 11: Bolton"

NEW QUINNIPIAC POLL ... ANDREW GILLUM is beating RON DESANTIS, 52%-46% ... The full poll

WAPO'S BOB COSTA speaks with VP MIKE PENCE -- PENCE speaks about the caravans: The video

... AND ON KHASHOGGI -- BUZZFEED'S VERA BERGENGRUEN (@VeraMBergen): "Pence, at an event to talk about the Space Force, is first asked about Khashoggi. 'This brutal murder of a journalist, of an innocent man, of a dissident, will not go without an American response.'" ... 5:46 video

GOOD NEWS FOR REPUBLICANS? ... WAPO/SCHAR SCHOOL POLL: "The latest survey shows only a marginal change in the race during October, with 50 percent currently supporting the Democratic candidate in their district and 47 percent backing the Republican.

"Candidates from the two parties collectively are running almost even in 48 contested congressional districts won by President Trump in 2016, while Democrats hold the advantage in 21 competitive districts won by Hillary Clinton. The Democrats' lead in those Clinton districts has narrowed a bit since the beginning of the month.

"The overwhelming majority of the districts surveyed - 63 of the 69 - are currently represented by a Republican in the House. Collectively these battleground districts voted strongly for Republicans in the 2016 election. The fact that the margins today are where they are illustrates the degree to which the GOP majority is at risk but also the fact that many individual races are likely to be close. Democrats need to gain a net of 23 seats to take control of the chamber." WaPo

Good Tuesday afternoon. SPOTTED: Sen. Lisa Murkowski (R-Alaska) having dinner this weekend at Fish MRKT in Reykjavik, Iceland ... Paul Begala dining at Taillevent in Paris on Monday.

WHAT'S ON THE PRESIDENT'S MIND -- @realDonaldTrump at 11:24 a.m.: "The people of Puerto Rico are wonderful but the inept politicians are trying to use the massive and ridiculously high amounts of hurricane/disaster funding to pay off other obligations. The U.S. will NOT bail out long outstanding & unpaid obligations with hurricane relief money!"

A message from Google:

As security threats continue to evolve, we're working to help make everyone safer online. We're constantly improving security technology across Google products and services to protect our users from online threats. And we share our security technology and collaborate with others in the industry to help protect people in more places online. google.com/security

IMMIGRATION FILES -- DAN DIAMOND, "HHS reviews refugee operations as Trump calls for border crackdown": "A top official at the Department of Health and Human Services, which runs the refugee resettlement program, is conducting what she called a 'top to bottom' review of the program, three months after the migrant crisis paralyzed the agency last summer. That includes examining the leadership of Scott Lloyd, director of the Office of Refugee Resettlement ...

"Nearly 250 children separated at the border still remained in HHS custody as of last week. About 13,000 other migrant children also are in agency custody - the highest number ever - as the Trump administration has slowed down releasing the children to families and other sponsors. ... The agency has run out of room at its traditional facilities and has turned to temporary shelters." POLITICO

-- CHRIS CADELAGO and TED HESSON: "Why Trump is talking nonstop about the migrant caravan": "In pressing the issue, Trump sees a twofold advantage. It's a way to argue that his opponents have 'turned a blind eye to the problem,' as one Republican working on the strategy put it, and also an opportunity to rev up his base. Although Democrats remain strongly favored to win back the House, overhead TV pictures of thousands marching north have them spooked. ... Whether any real crisis exists at the border remains a matter of considerable debate." POLITICO

-- NYT'S JULIE HIRSCHFELD DAVIS, "The Ripple Effect of a Trump Tweetstorm: When President Trump began tweeting warnings and threats about a caravan of migrants headed for the border, his own government could not explain what he meant." NYT

HEADS UP -- FOREIGN POLICY'S ROBBIE GRAMER (@RobbieGramer): "Secretary of State Pompeo will deliver remarks to the media at 3:45 p.m. today."

MORE ON KHASHOGGI -- NYT'S ALAN RAPPEPORT in RIYADH: "Saudi Crown Prince Gets Standing Ovation Despite Inquiries Into Khashoggi": "Saudi Arabia's crown prince, Mohammed bin Salman, received a standing ovation as he made an unannounced appearance at a global investment conference here on Tuesday, further clouding an event that has been thrown into disarray after the killing of a dissident Saudi journalist.

"The crown prince, who is suspected of playing a role in the killing of Jamal Khashoggi, appeared just ahead of a late afternoon presentation about technology but did not give any remarks. His presence came as American business executives attending the conference tried to keep a low profile and Saudi Arabian business leaders attempted to distance themselves from Mr. Khashoggi's murder." NYT

-- "Turkish president: Saudis plotted writer's killing for days," by AP's Suzan Fraser, Zeynep Bilginsoy and Chris Torchia in Ankara, Turkey: "He demanded that the kingdom reveal the identities of all involved, regardless of rank. President Recep Tayyip Erdogan also said he wants Saudi Arabia to allow 18 suspects that it detained for the Saudi's killing to be tried in Turkish courts, setting up further complications with the Saudi government ...

"Erdogan's speech was previously pitched as revealing the 'naked truth' about Khashoggi's slaying. Instead, it served merely to put a named source to information already circulated by anonymous officials and the Turkish press." AP

-- "Sky sources: Jamal Khashoggi's body parts found," by Sky News' Alex Crawford in Istanbul: "Sources have told Sky News the writer had been 'cut up' and his face 'disfigured'. One source also suggested Mr Khashoggi's remains were discovered in the garden of the Saudi consul general's home. ...

"The apparent discovery of Mr Khashoggi's body parts - and Mr Erdogan's version of events based on what he described as 'new evidence and information' - both contradict Saudi Arabia's explanation for his death." Sky News

-- THE INTERCEPT'S RYAN GRIM: "Having Escaped Scrutiny In Wake of Jamal Khashoggi's Murder, It's Business as Usual for the UAE": "[L]ife goes on as normal for UAE Ambassador Yousef Al Otaiba, the diplomat who lobbied Washington heavily to support Crown Prince Mohammed's internal efforts to disrupt the line of ascension and put himself next in line for the throne. ...

"Otaiba, according to an invitation obtained by The Intercept, will be hosting a dinner party Tuesday night for former Obama administration Commerce Secretary Penny Pritzker at his Virginia mansion. The invite identifies Pritzker by her current role as the chair of the Carnegie Endowment for International Peace." The Intercept

THE TRUMP ADMINISTRATION -- "'I've never seen these positions politicized': White House rejection of veterans judges raises concerns of partisanship," by WaPo's Lisa Rein: "The Board of Veterans' Appeals has long filled a nonpartisan role in the federal government, run by dozens of judges charged with sorting through a thicket of regulations to determine whether an injured veteran is entitled to lifetime benefits.

"But this summer, the White House rejected half of the candidates selected by the board chairwoman to serve as administrative judges, who make rulings on the disability claims. The rejections came after the White House required them to disclose their party affiliation and other details of their political leanings, according to documents viewed by The Washington Post. Such questions had not been asked of judge candidates in the past, according to former judges and board staff." WaPo

2018 WATCH -- "Democrats find new ways to talk about entitlement cuts in campaign's closing days," by NBC's Heidi Przybyla: "Democrats are seizing on a report detailing a nearly dollar-for-dollar balance between two decades of tax cuts benefiting the wealthiest one percent and proposed GOP spending cuts to the nation's social safety net programs. ... It also marks a shift in messaging for a party that recognizes simply decrying 'tax cuts for the rich' is a losing strategy without explaining its impact on the federal budget and individual households. ...

"House Budget Committee Republicans responded by saying the biggest threat to entitlements is a failure to address their looming funding crisis." NBC

-- NYT'S JULIAN BARNES: "U.S. Begins First Cyberoperation Against Russia Aimed at Protecting Elections": "The United States Cyber Command is targeting individual Russian operatives to try to deter them from spreading disinformation to interfere in elections, telling them that American operatives have identified them and are tracking their work, according to officials briefed on the operation.

"The campaign, which includes missions undertaken in recent days, is the first known overseas cyberoperation to protect American elections, including the November midterms." NYT

-- ADAM WREN in POLITICO Magazine: "How to Win Indiana": "The state has 11 different media markets that campaigns must be mindful of, making it logistically difficult to formulate an ad strategy. Outside of Indianapolis, many Hoosiers get their news from out of state. ...

"We really are an agrarian and industrial crossroads, one that could affect the Senate race between [Sen. Joe] Donnelly and Republican Mike Braun. ... Because of this eclectic economic mix, the state has been roiled by the national debate about outsourcing and tariffs." POLITICO Magazine

-- NYT'S PATRICIA COHEN and SYDNEY EMBER in Yardley, Pa.: "What Could Hold Back a Democratic Wave? Economy, Confidence, Independence."

AT THE PENTAGON -- "Here's The Pentagon's Initial Plan For Creating a Space Force," by Defense One's Marcus Weisgerber: "The U.S. Space Force will include uniformed service members drawn from the Air Force, Navy and Army - but it is not expected to include the National Reconnaissance Office mission, according [to] an internal draft of the Pentagon's plan to create a sixth branch of the military.

"Defense One reviewed a copy of the 13-page document, which will be further developed in coming months before the Pentagon sends it to Congress in February along with its 2020 budget request. ... Among other things, it reveals divergent views among senior Pentagon officials about how to structure it." Defense One

AFTERNOON READ -- "Farmers helped propel Trump to the White House. Their loyalty is being tested by his trade war," by CNN's Dan Merica: "In conversations with more than 50 farmers, producers and agriculture experts in five states representing each of the five food groups, one trend was clear: The once-deep ties to President Donald Trump have frayed over the past year. But they remain intact for a small majority of farmers CNN spoke with ahead of the critical 2018 midterm elections. Democrats, who see an opening with Trump's trade war, will likely struggle to make inroads with these voters.

"The President gives all of them plenty to complain about. ... But if the President's re-election were held tomorrow, most of them would back him. They trust Trump, and many believe Democrats don't understand or largely ignore their way of life. Still, Trump's deep support in rural America, which helped propel him to the White House in 2016, is being tested." CNN

TRANSITIONS -- Several former Treasury Department officials -- including Matthew Epstein, Howard Mendelsohn, Janice Gardner and Robert Werner -- are launching Kharon, a research and analysis platform that helps global banks navigate sanctions.

SPOTTED at Alan Greenspan's celebration for "Capitalism in America: A History," his book with Adrian Wooldridge, hosted by Jim and Kate Lehrer and Mary Graham: Fed Chairman Jerome Powell, Bruce Babbitt and Hattie Babbitt, Sen. John Barrasso (R-Wyo.), Jeffrey Goldberg and Pam Reeves, Andrea Mitchell, Michelle Smith, Ann Jordan, Sally Quinn, Maya McGuinness, Patty Stonesifer, Michael Kinsley, Ruth Marcus, Walter and Ann Pincus, Bob Costa, Buffy Cafritz, Bob Schieffer, Margaret Carlson, Jerry Rafshoon, Judy Woodruff and Pete Williams.

WELCOME TO THE WORLD -- Alex Pappas, a politics reporter at FoxNews.com, and Nancy Pappas, a high school teacher at D.C.'s Richard Wright Public Charter School, welcomed Mae Lawrence Pappas, who came in at 7 pounds, 6 ounces. Pic


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