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Today's POLITICO Playbook presented by Morgan Stanley

08/01/2017 06:31 AM EDT

By ANNA PALMER (anna@politico.com; @apalmerdc), JAKE SHERMAN (sherman@politico.com; @JakeSherman) and DANIEL LIPPMAN (daniel@politico.com; @dlippman)

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Driving the Day
Good Tuesday morning and welcome to August. HERE'S AN IMPORTANT STORY that developed yesterday late in the day when we were in the Capitol: "Republicans ignore Trump's Obamacare taunts," by Burgess Everett and Jen Haberkorn: "Senate Republicans have no plans to revive their party-line attempts to repeal Obamacare this summer, despite President Donald Trump's increasing frustration over the chamber's failed attempts last week to gut the law.

"'Until somebody shows us a way to get that elusive 50th vote, I think it's over,' said Sen. John Thune of South Dakota, the third-ranking Republican. 'Maybe lightning will strike and something will come together but I'm not holding my breath.' ... Privately, Republican aides said there is essentially no chance McConnell will take another shot at repealing Obamacare soon. On Monday, there was discussion among Senate staffers of a 'hard pivot to tax reform,' one Senate aide said. ...

"'Do I think we should stay on health care until we get it done? I think it's time to move on to something else. Come back to health care when we've had more time to get beyond the moment we're in and see if we can't put some wins on the board,' said Sen. Roy Blunt of Missouri, a member of GOP leadership. 'Tax reform, infrastructure are the kinds of things we ought to be looking at.'" http://go.politicoemail.com/?qs=0438b2cf2bef605bf73b090f49bac779df905f678ac9cd0d6df6b503ffc9b0a79b582cb5058d10ab6aa81e7e9974a5f904ecc38715995481

-- IN OTHER WORDS, members of the Senate don't really care what the president says they ought to do. Period.

NYT'S CARL HULSE: "Lesson for Trump: Hardball Against Senators Is a Game He Can Lose" http://go.politicoemail.com/?qs=0438b2cf2bef605bdf1afc74944015e5b4a5fd17b0ae94ae39389a1becbb72f706ff3de6213a46e605bdd71919e1f3eb5a2657e04e678a3e

A QUICK REMINDER -- When the White House tells us -- as they did yesterday -- that tax reform is going to be done by September or October, remember that neither chamber has passed a budget resolution. Tax reform is very hard without reconciliation instructions (just ask Rich Rubin and Phil Mattingly!). And, if you've watched the squirming on, well, everything on the Hill, you wouldn't be surprised to hear that passing a budget isn't easy. This seems to be a bit lost on the White House. Oh, and by the way, in September and October, Congress also has to fund the government and lift the debt ceiling. This won't be quick and painless.

-- PLAYBOOK SCOOPLET: SPEAKER PAUL RYAN is wholeheartedly embracing the flood of outside group support for tax reform. From the speaker: "It is time to unleash the full potential of the American economy by creating a tax code that actually works for the middle class. A simpler, fairer tax system that puts working families first will strengthen our economy and generate more jobs. I am encouraged to see the Middle Class Growth Initiative, and American Action Network, working to give their voice to this critical issue, and I'm pleased for such allies and supportive efforts."

FIRST IN PLAYBOOK -- WHAT HOUSE DEMOCRATS WANT 2018 TO LOOK LIKE -- MARK PUTNAM, the top-flight Democratic ad maker, has cut a spot for Ret. Lt. Col. Amy McGrath, who is running against Rep. Andy Barr in a solid Republican district in Kentucky. The spot tells the story of McGrath's career -- she was the first female Marine to fly in an F-18 in combat and flew in 89 missions bombing al Qaeda and the Taliban. The ad has some familiar themes: Barr -- who she says is Mitch McConnell's hand-picked congressman -- wants to take health care away from people, according to McGrath. But the spot also highlights another theme in 2018: House Democrats are especially interested in veterans jumping in the
race. The imagery in this ad shows how they might employ military ties in the midterm.

"This is my new mission: to take on a Congress full of career politicians who treat the people of Kentucky like they're disposable. Some are telling me a Democrat can't win that battle in Kentucky. That we can't take back our country for my kids and yours. We'll see about that." The ad ends showing her Marine dress uniform with all her medals, decorations and her personal sword, with the text "Amy McGrath: Democrat for Congress" on the screen. The two-minute spot http://go.politicoemail.com/?qs=0438b2cf2bef605b939cc0377a9b78b92e7532be9d7660d29247e79195a5dfd7345ac2310b7f58702f58d35560c3bd90d8f26f7f0aced582

BUT, BUT, BUT -- "Democrats snub new party message," by Gabe Debenedetti, Elana Schor, and Heather Caygle: "Chuck Schumer, Nancy Pelosi, and Democratic leaders on Capitol Hill will spend the next 15 months talking up the new 'Better Deal' economic message they unveiled last week. What's not clear is if anyone else will follow. The national party remains far from consensus on a unified message -- Democrats can't even agree on whether the party needs one. ... [N]ot every incumbent wants to be associated with the party's message. And many of the party's influential constituent groups and moneyed organizations are busy pursuing their own messaging and branding initiatives, and remain in the
early stages of their own investigations into what went wrong in November. Some - including the Democratic National Committee and individual state party committees - are busy preparing their own, independent lines of messaging." http://go.politicoemail.com/?qs=0438b2cf2bef605b4c3d266ea06944ca04bf43ab09ca0d435d6fd6d946b8f6e11752b95a994f086d3ec3c1456711820e11609c8fda41823d

BREAKING LATE MONDAY -- "Trump dictated son's misleading statement on meeting with Russian lawyer," by WaPo's Ashley Parker, Carol Leonnig, Phil Rucker and Tom Hamburger: "On the sidelines of the Group of 20 summit in Germany last month, President Trump's advisers discussed how to respond to a new revelation that Trump's oldest son had met with a Russian lawyer during the 2016 campaign - a disclosure the advisers knew carried political and potentially legal peril. The strategy, the advisers agreed, should be for Donald Trump Jr. to release a statement to get ahead of the story. They wanted to be truthful, so their account couldn't be repudiated later if the full details emerged.

"But within hours, at the president's direction, the plan changed. Flying home from Germany on July 8 aboard Air Force One, Trump personally dictated a statement in which Trump Jr. said that he and the Russian lawyer had 'primarily discussed a program about the adoption of Russian children' when they met in June 2016, according to multiple people with knowledge of the deliberations. The statement, issued to the New York Times as it prepared an article, emphasized that the subject of the meeting was 'not a campaign issue at the time.'" http://go.politicoemail.com/?qs=0438b2cf2bef605b0cd65a08d60ec2d70145a3ce9a5cd29dfa4201e26bb61d7e68fb82fe2c09bfd6596aefa5b188155c118e2a55cea1111b

JOHN KELLY'S DAY ONE -- "Kelly flexes muscle his first day on the job at White House," by AP's Vivian Salama and Jill Colvin: "Raised voices could be heard through the thick door to the Oval Office as John Kelly - then secretary of Homeland Security - offered some tough talk to President Donald Trump. Kelly, a whip-cracking retired general who was sworn in as White House chief of staff on Monday, had demanded to speak to the president alone after Trump complained loudly that the U.S. was admitting travelers from countries such as Afghanistan, Iran and Haiti.

"Kelly first tried to explain to Trump that the admissions were standard - some people had legitimate reasons to visit the country - but the president insisted that it was making him look bad, according to an administration official familiar with the exchange about a month ago. Kelly then demanded that other advisers leave the room so he could speak to the president frankly. Trump refused at first, but agreed when Kelly insisted. It was an early indication that Kelly, a decorated retired Marine general who served three tours in Iraq, is not afraid to stand up to his commander-in-chief." http://go.politicoemail.com/?qs=0438b2cf2bef605bc6e6750f0a28edae47f55212ce23e372c100f465d4288df892ded44725b9ed7cf8ee14b1e2426cf7ad92e90d889f7c9e

... FOR THE RECORD -- "Kelly called Comey to express anger over firing, sources say," by CNN's Shimon Prokupecz and Pamela Brown: "New White House chief of staff John Kelly was so upset with how President Donald Trump handled the firing of FBI Director James Comey that Kelly called Comey afterward and said he was considering resigning, according to two sources familiar with a conversation between Kelly and Comey. Both sources cautioned that it was unclear how serious Kelly, then the secretary of homeland security, was about resigning himself. 'John was angry and hurt by what he saw and the way (Comey) was treated,' one of the sources said." http://go.politicoemail.com/?qs=0438b2cf2bef605bcb8ea396bae44d72086f6328951991c355c1e4f8cd204cfb40d8f4455cca5d227bf0e9bd79896dff2f1003fe91112044


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UNDERSTANDING KELLY ...

-- "Kelly's military approach to the media: The new chief of staff respects the press but will defer to his superior, Donald Trump," by Hadas Gold: "Should Kelly be presented with a situation in which Trump wishes to ban an outlet from the White House, Kelly would likely carry out the president's directive, [longtime press aide David] Lapan said. 'I think he would push back against banning a reporter from the briefing room, but he also recognizes that ultimately the president is the decision-maker and there is a time to have internal discussions and disagreements,' Lapan said. 'But at the end of the day ... Gen. Kelly is the one to carry out those orders and directions, but he certainly
will have a say.'" http://go.politicoemail.com/?qs=0438b2cf2bef605b2e783597dc234fe2f68bbbeb2d2ac299633381e7c4fe2a264baaf06eee906cbccd5c1d709add3d96a43fbf94af37162b

-- THE NEW BOSS -- "Kelly seizes control of the chaotic West Wing," by Andrew Restuccia, Josh Dawsey, Tara Palmeri and Darren Samuelsohn: "John Kelly and Reince Priebus had a joint -- and brief -- meeting with senior staff on Kelly's first day in charge to talk about the changes afoot in the West Wing. By Monday afternoon, Kelly was meeting with staff again, this time without Priebus. Kelly assembled senior aides in his office and laid down his rules of the road: More accountability on how jobs are done. More limitations on access to the Oval Office. More structure. Better briefings and information for the president. A White House staff where everyone reports to Kelly. ... To both
Scaramucci's ouster and the new ground rules there was no public dissent ... Internally, people saw Scaramucci's firing as a good thing, several West Wing aides said. ...

"White House officials said Kelly is planning to lock down the Oval Office, restricting the number of aides and outside visitors who can wander in. One aide said Trump's daughter Ivanka Trump and son-in-law Jared Kushner have agreed to follow Kelly's rules when it comes to visiting the Oval and sharing information with the president. 'They are going to actually report to him,' the aide said." http://go.politicoemail.com/?qs=0438b2cf2bef605bc06347b350cb2fd6cdfdb1a229edf62a920998faab9d4ec6c4a94f9e4948688cf7a2ede9cd51e004b0ba62406a22d807

WSJ EDITORIAL BOARD -- "Kelly Sends a Message: The new White House chief of staff gives the Mooch the boot": "The big questions about new White House chief of staff John Kelly are whether he can impose discipline on a chaotic staff, and whether President Trump will listen to him. After one day on the job, Mr. Kelly appears to be 2-0." http://go.politicoemail.com/?qs=0438b2cf2bef605bb7a4c813ab3b9c4b255c04c22a0f924f8416f8bb24b887f47dc5908732a025d2da85bebf38024fd9537b0ec4ec06223b

THE PRESSURE IS ON -- Yes, John Kelly made a dramatic mark on his first day as chief of staff firing controversial communications director Anthony Scaramucci. He also laid down the law to White House staffers, publicly saying that there would be a new chain of command -- and he was at the top. The question remains whether Kelly can force order in an inherently chaotic environment. It also remains to be seen whether Kelly can actually stop top aides like Dan Scavino, Steve Bannon and others from going directly to Trump, not to mention Ivanka and Jared when they disagree with their new boss.

BIG QUESTIONS ...

-- WHO WILL BE THE NEXT COMMS DIRECTOR? Trump's White House has struggled to fill the communications director position since the beginning of this administration. Mike Dubke didn't last. Clearly, Scaramucci wasn't a good fit. It's unclear who Kelly will look to fill the critical role of trying to set the message for the administration. Several Republican sources floated BLAIN RETHMEIER as a potential replacement. Rethmeier, a veteran Republican communicator who has worked at trade associations and more recently at firms like Ditto PR and Edelman, has a relationship with Kelly. He was part of the sherpa team that helped get Kelly confirmed as DHS secretary. JASON MILLER is another
communications vet who is perennially brought up to fill the top comms slot. Miller, who served as communications director of Trump's campaign, currently is a CNN contributor and works at Teneo Strategy. Neither Rethmeier nor Miller responded to a request for comment.

-- WHO WILL BE THE NEXT DHS SECRETARY? Republican sources said that the White House's focus is on getting the West Wing in order before turning to fill Kelly's slot at DHS. It's unclear whether Trump will want to continue with a military official in the position, or turn to a more political operator. Either way, multiple sources said Trump's operation wants someone who can be easily confirmed. House Homeland Security Chairman Mike McCaul (R-Texas) is on the shortlist for Kelly replacements. He's got the experience and political chops. Others in the mix include: ICE acting director Thomas Homan and Kansas Secretary of State Kris Kobach, though Kobach would likely have a hard time getting
confirmed.

-- NOT ON THE SHORT LIST: "'America's toughest sheriff' found guilty of criminal contempt," by Ted Hesson: "A federal judge in Arizona found former Maricopa County Sheriff Joe Arpaio guilty of criminal contempt on Monday for violating an order in a racial-profiling case. U.S. District Court Judge Susan Bolton said the evidence in the case showed a 'flagrant disregard' for a 2011 court order that required the sheriff to stop detaining people unless they were suspected of a crime. The 85-year-old Arpaio, who lost a reelection bid last year, earned a reputation during his tenure for his tough stance against illegal immigration and headline-grabbing approach to criminal justice, dressing
inmates in pink underwear and operating an open-air 'tent city' jail in the scorching Arizona heat." http://go.politicoemail.com/?qs=0438b2cf2bef605ba91ba0f8f687091782b44b4a7ef8133f4322e9fb05b9f1f2ddc15e209f68fe9d86f049a4b5f48af6373528584194fb45

NOT THE ONION - JAKE TAPPER on CNN.com, "White House officials tricked by email prankster": "A self-described 'email prankster' in the UK fooled a number of White House officials into thinking he was other officials, including an episode where he convinced the White House official tasked with cyber security that he was Jared Kushner and received that official's private email address unsolicited. 'Tom, we are arranging a bit of a soirée towards the end of August,' the fake Jared Kushner on an Outlook account wrote to the official White House email account of Homeland Security Adviser Tom Bossert. 'It would be great if you could make it, I promise food of at least comparible (sic)
quality to that which we ate in Iraq. Should be a great evening.' Bossert wrote back: 'Thanks, Jared. With a promise like that, I can't refuse. Also, if you ever need it, my personal email is' (redacted). ...

"Masquerading as Priebus, the prankster emailed Scaramucci's official account using a mail.com account on Saturday, the day after Priebus' resignation was announced. ... The very real Scaramucci responded: 'You know what you did. We all do. Even today. But rest assured we were prepared. A Man would apologize.' Fake Priebus wrote back: 'I can't believe you are questioning my ethics! The so called "Mooch", who can't even manage his first week in the White House without leaving upset in his wake. I have nothing to apologize for.' Actual Scaramucci responded: 'Read Shakespeare. Particularly Othello. You are right there. My family is fine by the way and will thrive. I know what you did. No more
replies from me.'

"In another exchange, Scaramucci was hoodwinked by the same prankster pretending to be Ambassador to Russia-designate Jon Huntsman Jr. ... After a few ... nice messages of support from faux Huntsman, Scaramucci wrote, 'Are you in Moscow now? If not please visit.'" http://go.politicoemail.com/?qs=0438b2cf2bef605b32db8fd6a0f003d1d36f532ff7c7f4993ed84c52132a8383e0b37b69445b9a8bfb351a832bb1e9fcafa10f4db57d179b

WILD STORY -- "Capitol Police Responded to Wrong Site in Scalise Shooting," by Bloomberg's Billy House: "The U.S. Capitol Police department opened an internal investigation into why its elite tactical team was initially directed to respond to the wrong location when a gunman opened fire last month at a GOP congressional baseball practice, according to two people familiar with the matter. Instead of responding directly to the Virginia field where House Majority Whip Steve Scalise and several others were shot, members of the Capitol Police Containment and Emergency Response Team were signaled instead to go to House Minority Leader Nancy Pelosi's house in the Georgetown neighborhood of
Washington, several miles away." http://go.politicoemail.com/?qs=0438b2cf2bef605b10807b16e3e666abae44498150ad20c9e61a5ba2c20b92c85131ed4c6da35736a9e5769680ca59f1378d00efdca30953

RETIREMENT WATCH -- TENNESSEE REPUBLICAN JIMMY DUNCAN is retiring at the end of this Congress. The seat has been represented by a Duncan since 1965: he has been in Congress since 1988, and his father represented the same district before that. The move wasn't wholly unexpected and Republican sources predict several more lawmakers to join Duncan and Rep. Ileana Ros-Lehtinen (R-Fla.) in not seeking reelection.

NEW POLITICO/MORNING CONSULT POLL -- "Majority of voters believe White House is in chaos," by Steven Shepard: "While President Donald Trump claimed early Monday in a tweet that there was no 'chaos' in his White House, voters disagree: 60 percent say the administration is running somewhat or very chaotically, compared to only 33 percent who say it is running well. That's according to a new POLITICO/Morning Consult poll conducted last Thursday through Saturday. The survey was conducted entirely prior to Monday's ouster of Anthony Scaramucci from his position as White House communications director, and was already in the field when Reince Priebus left the chief of staff position.

"In general, voters have a low opinion of how Trump's White House is operating. Fewer voters, 29 percent, say Trump's staff serves him well than the 39 percent who say his staff doesn't serve him well. Republican voters have a much more positive impression of how Trump's White House is operating: 63 percent say it is running well, though more than a third, 34 percent, say it is running chaotically. By comparison, very few Democrats (12 percent) or independents (25 percent) say Trump's White House is running well -- with 80 percent of Democrats and 65 percent of independents saying it is beset by chaos." http://go.politicoemail.com/?qs=0438b2cf2bef605b7b7dbeab4e1268c476815fbf1a7e9602213a88f2bbc251bb2487c8d6016dde42dcecfcb97674b8b5537be3ce77880314

NEW ISAAC DOVERE PODCAST -- ISAAC DOVERE spoke to DEVAL PATRICK in his Bain Capital office in the John Hancock tower in Boston. "Barack Obama is nudging him to run. His inner circle is actively encouraging it. Dovere chatted with him about Donald Trump's governing by fear and a dishonest pitch to economic nostalgia, while encouraging a rise in casual racism and ditching any real commitment to civil rights. 'I'm trying to think about how to be helpful, because I care about the country, and I'm a patriot first. It's way, way too soon to be making plans for 2020,' he said. 'So I'll just leave it at that.'

"But he's clearly upset with what Trump is doing, on both policy and approach. 'The president, I believe, is at risk of diminishing the voice of the presidency because he pops off so often, and so, kind of, carelessly. I think there is a risk both domestically, and internationally for that matter, that we'll begin to tune him out,' he said. David Axelrod has had several conversations with Patrick about running, and eagerly rattles off the early primary map logic. Valerie Jarrett says that a President Patrick is what 'my heart desires.' Obama himself-who is personally close to Patrick, and counts him among the very small group of people whom he thinks has actual political talent-has
privately encouraged him to think about it, among others." http://go.politicoemail.com/?qs=0438b2cf2bef605b8cc25d6e1f102e759c2b457c370e6f9faf1dd57366e38c8e62ad4fbcee891747435b8555e50e9eaac7fd81d5669db65a ... Listen to the full podcast http://go.politicoemail.com/?qs=0438b2cf2bef605b0b12270bea3b41f5ed87a149f5d1eea5ca913121abf87e6b9c3f7ae8208c3bd8c9c75a37d39df9c9fee8f764e4a9131a

THE JUICE ...

-- FIRST LOOK: Stevie Wonder, Green Day, The Killers, The Lumineers, and The Chainsmokers will perform at the 2017 Global Citizen Festival Sept. 23 in New York. Pharrell Williams, Big Sean, Andra Day and Alessia Cara will also perform.

-- GAVIN NEWSOM has $16 million in the bank for his race for governor of California. John Chiang has $8.9 million. Former Los Angeles Mayor Antonio Villaraigosa has nearly $4.5 million.

-- MOOCH EMAILS BILL COHAN - "The Mooch is Dead! Long Live the Mooch!" -- Vanity Fair: "'Will make it better this week,' Anthony Scaramucci e-mailed me at 2:33 a.m. on Sunday morning. Alas, he would not get the chance. ... He was out of control and knew it. His wild interview with Ryan Lizza of The New Yorker probably sealed his fate. He wrote in an e-mail on Saturday morning at 2:24 a.m. that it was 'a mistake' to talk to Lizza. 'I lost my temper,' he said." http://go.politicoemail.com/?qs=0438b2cf2bef605b76603e205c3237c88bec582d6bd4b77a92cda248eafcd59d8c1eb45dd85a4a9173b90668ef192af175e6303947400d4c


Playbook Reads


PHOTO DU JOUR: President Donald Trump presents the Medal of Honor to former Army Specialist James McCloughan of South Haven, Michigan, during an East Room ceremony at the White House on July 31. McCloughan was awarded with the medal for his heroic acts as a combat medic during the Vietnam War. | Win McNamee/Getty Images

FIRST PERSON -- SEN. JEFF FLAKE (R-Ariz.) in POLITICO Magazine, "My Party Is in Denial About Donald Trump: We created him, and now we're rationalizing him. When will it stop?" in an excerpt of his new book "Conscience of a Conservative": "I've been sympathetic to [an] impulse to denial, as one doesn't ever want to believe that the government of the United States has been made dysfunctional at the highest levels, especially by the actions of one's own party. ... [A]s I layered in my defense mechanisms, I even found myself saying things like, 'If I took the time to respond to every presidential tweet, there would be little time for anything else.'

"Given the volume and velocity of tweets from both the Trump campaign and then the White House, this was certainly true. But it was also a monumental dodge. It would be like Noah saying, 'If I spent all my time obsessing about the coming flood, there would be little time for anything else.' At a certain point, if one is being honest, the flood becomes the thing that is most worthy of attention. At a certain point, it might be time to build an ark." http://go.politicoemail.com/?qs=0438b2cf2bef605b3a6edad01cb5d80311bb8a2368b39a1d7d26fdf2af4db70de6e72ea9c3365cda38259bcd7ce42af4f028f61614f45d31 ... $20.79 on Amazon http://go.politicoemail.com/?qs=0438b2cf2bef605b95c4edc777dc9c4816b3796fdbdb8a50a5388966d53891ecf773918eb1b64088eb1e005a6d0242179e6f341e6180ac63

MOOCH TICK TOCK -- "Scaramucci's short, wild ride through Trump's White House," by Josh Dawsey, Annie Karni and Tara Palmeri: "The retired Marine general was amazed Scaramucci hadn't been disciplined for his profane rants about other West Wing aides published in The New Yorker and couldn't imagine him staying in the West Wing, several White House officials said. Scaramucci was spotted at the swearing-in ceremony, looking grim-but at that point still unaware of what was coming, said people familiar with how the day unfolded. Scaramucci arrived at work Monday, Kelly's first day, with a plan to announce changes in the communications team ... Instead, Kelly told him he needed to go, meeting
with Scaramucci in his West Wing office without President Donald Trump present. 'No way could he work with Kelly,' one White House official said. 'His antics over the past week were crazy by any standard.' ...

"In meetings, Scaramucci repeatedly reminded aides that he wasn't 'one of them,' one White House official said. He often talked about his close personal relationship with the president and the autonomy and leeway he had to make decisions, this official said. In the few meetings he held with communications staffers, he mostly just talked about his desire to cut off embarrassing 'leaks' of anonymous quotes from inside the West Wing - and to fire anyone who had been talking to the press, according to one person familiar with the meetings. He would cut off former RNC staffers, telling them, 'I know you've been serving two masters in this place' - meaning the president and Priebus, whom
Scaramucci believed had been undermining the administration. 'I really believe he was on track to fire everybody,' said the person familiar with the meetings. 'Sarah would try and keep the meeting on track, and he would interrupt to talk about leaks and firing everybody.'" http://go.politicoemail.com/?qs=0438b2cf2bef605b92d205d3ee5614ae4cdb7e857db212375ba51786c072e6f7deed80ebe4f64b941c8050f50c83593d1c99f198de537a87

OOPS -- "Anthony Scaramucci erroneously listed as dead in the new Harvard Law alumni directory," by WaPo's Emily Heil: "Pity poor Anthony Scaramucci: reportedly getting divorced, sacked from his job after a mere 10 days - and now there's an erroneous report that he's dead. The blink-and-you-missed-him former White House communications director is listed as deceased in the new Harvard Law School alumni directory, which arrived in alums' mailboxes the very week that 'The Mooch' became the most talked-about guy in politics. An asterisk by the 1989 graduate's name indicates that he was reported dead since the last directory, which was published in 2011. It's unclear whether he was the victim of
a prank - or just a typo." http://go.politicoemail.com/?qs=0438b2cf2bef605be4fb7fa82a56a91567673217232ff34c3175253afa3e16e5f0cd3ffb95df853b8582f8fa860a634739d79912e18a7843

FROM THE PRESIDENT'S SENIOR ADVISER -- "Kushner to Interns: Trump Team Too Disorganized to Collude With Russia," by Foreign Policy's Jenna McLaughlin: "Donald Trump's election team could not have colluded with Russia because they were barely talking to each other, according to Jared Kushner, the president's son-in-law and top White House advisor. 'They thought we colluded, but we couldn't even collude with our local offices,' Kushner told congressional interns during a private talk at the Capitol Visitor Center in Washington on Monday afternoon. ... Before the lecture, the intern director warned those present not to leak the contents of the speech, which was given off the record. ... 'I'm a
lot more comfortable talking to you guys today 'cause there isn't any press,' Kushner said." http://go.politicoemail.com/?qs=0438b2cf2bef605bd71ef5c48ff315907b08eacb439ff2d0cdfeba816b39e01b501e31ef3543c87e63317ae476fac8dd8ebf328a706823de

PIC DU JOUR -- @HotlineJosh: "Just passed Seb Gorka on the Hill. His license plate is 'ART WAR'". http://go.politicoemail.com/?qs=0438b2cf2bef605bd55f498cc6a627e1fd3e091faab0fadf1d016204e6c48ea864bc55cdf50237a1f20336ec06598bb28bd02daa45d45a60

WHAT THE PENTAGON IS READING -- "Pentagon Offers Plan to Arm Ukraine," by WSJ's Julian E. Barnes in London, Laurence Norman in Brussels and Felicia Schwartz in Washington: "The U.S. Pentagon and State Department have devised plans to supply Ukraine with antitank missiles and other weaponry and are seeking White House approval, U.S. officials said, as Kiev battles Russia-backed separatists and ties between Moscow and Washington fray. ... The official said President Donald Trump hasn't been briefed on the plan and his position isn't known. Some U.S. and Ukrainian officials said they expect it could be months before the White House makes a final determination."
http://go.politicoemail.com/?qs=0438b2cf2bef605be1365f00795796c9ad1796cafea5e408f6436ff42dd807eb73dadcd07bc04fe560e6aa70696db763fdc187c71e575e03

MONEY WATCH -- "Super PACs already racing toward 2018 - and 2020 -- Conservatives have edge over liberals as both camps raise millions," by Center for Public Integrity's Ashley Balcerzak and Dave Levinthal: http://go.politicoemail.com/?qs=0438b2cf2bef605bee890b822a7f6357b8423b90920d262e0d3af7aee53aa9e6d50a09bf8961da08ed514fed75b3de50e35ccc08b145d05f

COMING ATTRACTIONS -- "Watchdog wants investigation into Wasserman Schultz over IT staffer," by Heather Caygle: "A right-leaning ethics group is pushing for a congressional probe into Rep. Debbie Wasserman Schultz because she continued to employ an IT staffer for months after he became the focus of a criminal investigation. The Foundation for Accountability and Civic Trust ... a conservative accountability group, is requesting the Office of Congressional Ethics launch an investigation into what the nonprofit says is Wasserman Schultz's 'apparent breach' of House rules for continuing to employ Imran Awan, even after he was blocked from accessing the House IT system earlier this year."
http://go.politicoemail.com/?qs=0438b2cf2bef605b80e935ca1935f8ba8e8bbaaa8b57888308f45121daf7ce840254c50ce7b24645f8731fa07ca6d1df983a7197bdf494f9


****** A message from Morgan Stanley: Growing disparities in income and more are among today's greatest socio-economic challenges. Private sector capital can help create prosperous communities and reduce inequality globally. Morgan Stanley, with The Economic Intelligence Unit, created a tool to rank 20 countries in terms of finance, healthcare, education and gender disparities. Read more. ******

ARE YOU INVITED? -- CHRISTIAN BROADCASTING NETWORK'S JENNIFER WISHON: "Bible Studies at the White House: Who's Inside This Spiritual Awakening?": "A spiritual awakening is underway at the White House. Some of the most powerful people in America have been gathering weekly to learn more about God's Word, and this Trump Cabinet Bible study is making history. They've been called the most evangelical Cabinet in history - men and women who don't mince words when it comes to where they stand on God and the Bible. ... Health Secretary Tom Price, Energy Secretary Rick Perry, Education Secretary Betsy DeVos, Agriculture Secretary [Sonny] Perdue, and CIA Director Mike Pompeo are just a few of the
regulars. ... America's top cop, Attorney General Jeff Sessions, also attends the study." http://go.politicoemail.com/?qs=0438b2cf2bef605bec0f6d368825e7848962cbab94eb4b2f8627d2517ac8acaf266b14b4aa88a0eeaab3c5137c1c1f24c657b858160a44df

WHAT TO EXPECT IN MOSCOW -- "After Russia's Retaliation, Embassy Workers Brace for a 'Shock to the System,'" by NYT's Neil MacFarquhar: "The last time the Kremlin forced a sweeping reduction of local staff at the American Embassy in Moscow, a young diplomat named Steven Pifer found himself working four days a week on arms control, as usual. But on the fifth day, he navigated the capital in a big truck to move furniture or haul mammoth grocery loads. The entire staff of the embassy, except the ambassador, was assigned one day each week to grunt work called All Purpose Duty ... when they shed their dark suits and polished loafers to mow the lawns, fix the plumbing, cook in the cafeteria and
even clean the toilets. ... [M]any current and former diplomats expect a similar effort in the wake of President Vladimir V. Putin's announcement on Sunday that the United States diplomatic mission in Russia must shed 755 employees by Sept. 1." http://go.politicoemail.com/?qs=0438b2cf2bef605b5ef2e9089fa3b8485af0b6169af888a3f77a269cb9546ca770d55cb11c0ee5ac5b89b1283a4378bbd5426967b0ceb445

-- REUTERS/MOSCOW: "U.S. embassy in Moscow says locked out of diplomatic property": "The U.S. embassy in Moscow accused Russian authorities on Monday of barring diplomatic staff from a property on the outskirts of Moscow, after having earlier agreed to grant access until midday on Tuesday for them to retrieve belongings. A Russian foreign ministry official, quoted by state news agency RIA, said the U.S. embassy had sent in its trucks without first obtaining permits which, the official said, are required by law because the property is in a conservation area. The property, in a picturesque spot on a bend in the Moskva river northwest of the capital, is leased by the U.S. embassy for its staff
to use for recreation." http://go.politicoemail.com/?qs=0438b2cf2bef605b8d3ab191464dcbc22d85f53be09481a34f95179e67d530d94f2629281f3ca58a49b5ffc2a471ca5242ef6a352aabaca5

WHAT YOUSEF IS SAYING BEHIND THE SCENES -- "Persian Gulf Rivals Competed to Host Taliban, Leaked Emails Show," by NYT's David D. Kirkpatrick: "In their long-running rivalry, the United Arab Emirates has often accused its neighbor Qatar of abetting Islamist militants, citing as one prime example the 2013 opening of a Taliban embassy in the Qatari capital, Doha. Now it turns out that the Emiratis tried to get the Taliban to open an embassy in their own country instead. The Emirati ambassador to Washington, Yousef al-Otaiba, even received 'an angry phone call' from the foreign minister at the time complaining that the Taliban had ended up in Qatar and not the U.A.E., according to leaked emails
from the ambassador's account." http://go.politicoemail.com/?qs=0438b2cf2bef605baf827dbe339880ea649a5bf093bef848d85fef212b190b1bc2c6fe09c6b1e068a8cdc5f4e838b9c01f503137b1ee37e9

BUSINESS BURST - "While Other U.S. Companies Flee China, Starbucks Marches In," by NYT's Andrew Ross Sorkin: "Consider this mind-boggling statistic that I culled from the company's statement last week about its Chinese ambitions: Starbucks is opening more than 500 stores a year there -- which amounts to more than one new store a day. Starbucks is creating some 10,000 jobs in China annually. In Shanghai alone, there are already 600 stores. To put that in perspective, New York City has about half as many stores as Shanghai." http://go.politicoemail.com/?qs=0438b2cf2bef605b04a3da016387265e5f78b23268ec8c2957fd8db5f19cf1710a56445f393d20c784161066c3863e85fd83e3accfaff490

MEDIAWATCH -- "Corey Lewandowski Has Been Fired From The One America News Network," by The Daily Beast's Lachlan Markay and Asawin Suebsaeng: "Three sources with knowledge of the situation tell The Daily Beast that the former Trump campaign manager and current informal adviser to the president has been let go from One America News Network, a pro-Trump cable channel pitching itself as an aspiring Fox News. Lewandowski angered OANN leadership with his frequent appearances on Fox and other competitors, which one former OANN employee described as 'a big no-no' with the channel's leadership." http://go.politicoemail.com/?qs=0438b2cf2bef605b708f0d3047299f806ee7e6b15aeaee2b3983c12f6ba58f3a33daf7064c9b607ff5371bceef20080e4d590b6543c09c89

POINT ON THE BOARD FOR CBS -- "Mercedes drops contractor in wake of CBS News investigation" http://go.politicoemail.com/?qs=0438b2cf2bef605bebb41e312af99fc0d53349601b4799b6290e39eea2b63078f336e414a251ed4dfcf269b297ebf71d70b9018e8cba3cd6

Playbookers
SPOTTED: Sen. Ron Wyden (D-Ore.) yesterday at lunch at On Rye.

OUT AND ABOUT -- Americans for Prosperity yesterday hosted a forum at the Newseum entitled "Unrig the Economy" featuring Treasury Secretary Steven Mnuchin and White House director of legislative affairs Marc Short to discuss the Administration's tax reform plans. Pic http://go.politicoemail.com/?qs=0438b2cf2bef605b7682d1495e0289a5e0b38010cde9823b0426fb14486f62a716466d28930652a4ded4ede6dffa7990c8eed74f3a5eeb89 SPOTTED: Tim Phillips, Shannon McGahn, Jason Chung, Erik Telford, Suhail Khan and Heidi Neal.

TRANSITIONS -- Walmart hired Christian Gomez, Jr. as senior manager for global government affairs, with a focus on Latin America. He was previously economic growth adviser at USAID and is a Council of the Americas alum. ... Jay Shambaugh, a GWU professor and former Obama White House CEA member, has been named director of the Hamilton Project at Brookings. ...

-- Natasha Hickman, a longtime staffer to Sen. Richard Burr (R-N.C.), has been promoted from legislative director to chief of staff in Burr's personal office. She started her Senate career with former Sen. Kay Bailey Hutchison (R-Texas) and also served in the Bush administration. Christopher Toppings, deputy legislative director, has been promoted to legislative director for Burr.

BIRTHDAY OF THE DAY: CSIS' Andrew Schwartz, who co-hosts the new podcast "About the News," with Bob Schieffer, is 49. He's celebrating "on the beach in Tel Aviv with my wife Amy Goldberg and our friends Yani and Eva Xanthos who flew in from Athens." Read his Playbook Plus Q&A: http://go.politicoemail.com/?qs=0438b2cf2bef605b8afe2fb6dac2c30f58bb61d89c00f8b364f8239b22a80f34341a9720d483d191dd1034cf63fd1f4eb14f213a184797e9

BIRTHDAYS: Dallas investor and Democratic fundraiser Cappy McGarr, executive producer of the Mark Twain Prize for American Humor and a creator of the award -- read a McClatchy profile of him http://go.politicoemail.com/?qs=0438b2cf2bef605b1a8ca05c10faddd1e90e1fea33357790dd815f321399c4b5dd535a3ee8aabfc9a824080da9087b3bec75225c85791c97 (hat tip: Robert) ... Ed Gillespie is 56 ... Dan Shapiro, former ambassador to Israel now at Israeli think tank INSS ... Politico's Azi Paybarah and Chris Buddie ... David Helfenbein, senior adviser at strategic branding firm Main & Rose and a Clinton State alum, is 31 (h/t fiancé Leigh Shirvan of @hungryobsession) ... Drew Littman, former Franken chief of staff and former senior counselor at HHS, now policy director at Brownstein Hyatt Farber
Schreck (h/t Jon Haber) ... former Rep. Sue Myrick (R-NC) is 76 ... former Rep. Rick Boucher (D-Va.) is 71 ... Mikayla Marie Hall ... Josh Davenport ...

... Travis Burk, of CRC Public Relations and alum of Bush '04 and Rick Scott, is 37 (h/t wife Ginger Gibson) ... Joanna Knight, director of speechwriting at EMILY's List and Maisie's mom (h/ts Alexandra De Luca and John Weber) ... Corrie MacLaggan, managing editor of the Texas Tribune @corriemac (h/t Oliver Bernstein) ... David Cygielman is 36 ... Hillel International's Sheila Katz ... Avi Arad is 69 (h/ts Jewish Insider) ... Jeffrey Bush ... Ellen Brown ... former Sen. Alfonse D'Amato (R-N.Y.) is 8-0 ... Zachary Isaac Gold is 28 ... Adam W. G. Alles ... Chris Mayer ... Andrea Jones, McCain and ABC comms alum ... Karen Marangi ... Josie McSpadden (Duckett), senior comms officer at the Gates
Foundation ... Benji Englander ... Rosanna Arlia ... Guy Short ... Andrew Gallo ... Ari Zoldan ... Mary Angela Moutoussis ... Scott Evertz ... Tom Dougherty is 6-0 ... Chris Steeples ... Larry Harrington ... Martin Hamburger is 54 ... Chris Hayler (h/ts Teresa Vilmain)

****** A message from Morgan Stanley: The Morgan Stanley Institute for Sustainable Investing, with The Economist Intelligence Unit, created the Inclusive Growth Opportunities Index to explore technology investments that can increase access to finance, healthcare and education, and enhance gender inclusion. The report and interactive tool, which allows users to rank 20 emerging and developed countries, highlights the potential for investment opportunities that drive inclusive economic growth. See which countries indexed high on the list, and where there are opportunities to invest in inclusive growth. Read more from Morgan Stanley. ******

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