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Presented by the PepsiCo Foundation: Playbook is POLITICO's must-read briefing on what's driving the day in Washington \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c \u200c Aug 03, 2018 View in browser
By Jake Sherman, Anna Palmer, Daniel Lippman, Akela Lacy and Eli Okun

Presented by

WHAT NEARLY EVERY WASHINGTON REPUBLICAN SAYS AND THINKS ... TOP-ED -- WSJ'S KIM STRASSEL: "Failure to Communicate: Trump has a solid record, but he's too busy making noise to tout it": "If a tree falls in a noisy circus, does it make a sound? If the Trump administration announces its largest deregulatory effort to date while the president is in the throes of a Twitter rampage, will anybody pay attention?

"No, and thereon may hang the balance of Republican congressional control. It's never clear where Donald Trump gets political advice, if he does at all. What is clear is that this White House is doing an able job of whiffing one of the best political messages in decades, a reality that is demoralizing administration insiders and GOP candidates alike." WSJ

THERE IS NEAR UNIFORMITY among Republicans who believe that, absent a massive dynamic shift, the House could easily be lost in November. They wish the president would just contrast the Democrats' position to Republicans' policies.

AND THERE'S MORE ... THE CONGRESSIONAL LEADERSHIP FUND has dumped another $695,784 on media to try to help carry TROY BALDERSON across the finish line in Ohio's 12th congressional district, a solid GOP seat anchored in Columbus.

-- THIS BRINGS CLF'S TOTAL for the race to an almost-not-to-be-believed $3.1 million for a special election for a seat Republicans have had since 1983. The NRCC has dropped another $1.3 million, for a grand total of $4.4 million between the two groups.

-- SEN. ROB PORTMAN (R-OHIO) is in a new CLF radio ad for Balderson. Listen to the spot

-- "Inside the Campaign to Get Kasich's Special-Election Endorsement," by National Journal's Ally Mutnick: National Journal

Good Friday afternoon. GLOBAL TALKER ... THE GUARDIAN'S MARTIN CHULOV: "My son, Osama: the al-Qaida leader's mother speaks for the first time": "Everyone in the family has their own story to tell about the man linked to the rise of global terrorism; but it is Ghanem [Osama's mom] who holds court today, describing a man who is, to her, still a beloved son who somehow lost his way. 'My life was very difficult because he was so far away from me,' she says, speaking confidently. 'He was a very good kid and he loved me so much.' ...

"'He was very straight. Very good at school. He really liked to study. He spent all his money on Afghanistan - he would sneak off under the guise of family business.' Did she ever suspect he might become a jihadist? 'It never crossed my mind.' How did it feel when she realised he had? 'We were extremely upset. I did not want any of this to happen. Why would he throw it all away like that?' ...

"When Ghanem leaves to rest in a nearby room, Osama's half-brothers continue the conversation. It's important, they say, to remember that a mother is rarely an objective witness. 'It has been 17 years now [since 9/11] and she remains in denial about Osama,' Ahmad says. 'She loved him so much and refuses to blame him. Instead, she blames those around him. She only knows the good boy side, the side we all saw. She never got to know the jihadist side.'" The Guardian

MANAFORT REPORT, DAY 4 -- "The high-flying consultant's financial double life," by Josh Gerstein and Darren Samuelsohn: "On day four of former Trump campaign chairman Paul Manafort's trial, prosecutors advanced their case that the high-flying international political consultant lived a financial double life - hiding overseas bank accounts from his accountants and lying to U.S. banks about the source of large sums he deposited with them.

"The testimony further underscored the argument by special counsel Robert Mueller's team that Manafort relied on a complex web of foreign financial entities and transactions to conceal and evade U.S. taxes on millions of dollars he earned from managing and advising foreign political campaigns, particularly in Ukraine several years ago.

"Manafort's defense team has suggested that false statements on his tax returns were understandable oversights by a busy man. But prosecutors are working methodically to demolish that position through testimony showing a years-long pattern of deception on Manafort's part." POLITICO

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BREAKING -- TRADE WARS: "China will retaliate with tariffs on $60B in U.S. goods," by Adam Behsudi: "China announced Friday it would hit about $60 billion worth of U.S. exports with new tariffs in response to President Donald Trump's decision this week to escalate potential trade penalties on Beijing. ... China's Ministry of Finance said the tariffs will be between 5 and 25 percent and target more than 5,200 individual types of U.S. exports to China." POLITICO

-- CBS' MARK KNOLLER (@markknoller): "WH econ advisor Larry Kudlow calls China's threat of new tariffs on $60-billion of U.S. goods 'a weak response' to U.S. threat of 25% tariffs on $200-billion of Chinese goods. 'Do not underestimate Pres Trump's determination' to get China to end its unfair trade practices, he said."

HMM ... "The NRA Says It's in Deep Financial Trouble, May Be 'Unable to Exist,'" by Rolling Stone's Tim Dickinson: "The National Rifle Association warns that it is in grave financial jeopardy, according to a recent court filing obtained by Rolling Stone ... [T]he gun group has been suing New York Gov. Andrew Cuomo and the state's financial regulators since May, claiming the NRA has been subject to a state-led 'blacklisting campaign' that has inflicted 'tens of millions of dollars in damages.'" Rolling Stone

JOBS REPORT -- "Job growth continues slowdown," by Ian Kullgren: "Job growth slowed for the second straight month in July, to 157,000 down from June's 248,000, providing fresh evidence that the economy has reached full employment.

"But wage growth remained sluggish at 2.7 percent over the previous year, indicating that the tight labor market and the robust 4.1 percent second-quarter growth in GDP that a jubilant Trump administration announced last week still isn't showing up in paychecks. ...

"After a year of positive job growth, the economy could be on the verge of a 'darker' turn, warned Mark Zandi, chief economist at Moody's Analytics." POLITICO

WHAT THE PRESIDENT IS THINKING -- @realDonaldTrump at 10:21 a.m.: "Congratulations to Bill Lee of Tennessee on his big primary win for Governor last night. He ran a great campaign and now will finish off the job in November. Bill has my total and enthusiastic Endorsement!"

-- TAKE THAT Diane Black!

NYT'S JONATHAN MARTIN in TOPEKA: "In Potential Kobach Candidacy, Kansas Faces Another Lurch to the Right": "The [RGA] has lobbied the White House to stay out of the primary, out of fear that a Trump endorsement would effectively seal Mr. Kobach's nomination and imperil the party's chances to retain the governorship this fall. West Wing officials also have little desire for Mr. Trump to intervene here, but after the president's recent streak of success in Republican nominating contests, nobody felt confident predicting what he may do in this race, and as he heads into a weekend of unmonitored golf at his New Jersey resort." NYT

JEN HABERKORN in Aurora, Colorado, for the Friday Cover of POLITICO MAGAZINE: "Is There Room to Be Anti-Abortion in Today's Democratic Party?": "Many anti-abortion Democratic activists have slid comfortably into their role as political misfits, driven by a deeply held belief that a fetus is perhaps the most vulnerable member of society and warrants protection-but similarly drawn to the Democratic Party's broader values. ... [T]hese Democrats for Life are genuinely hoping to stage a comeback. The group's leaders argue that the party won't win majorities in Congress unless Democrats welcome more moderate candidates ...

"The midterms will be a test of this theory. All three sitting Democratic senators endorsed by Democrats for Life-Joe Manchin of West Virginia, Joe Donnelly of Indiana and Bob Casey of Pennsylvania-are up for reelection and face close races." POLITICO Magazine

PHARMA WATCH -- "How drug companies are beating Trump at his own game," by Sarah Karlin-Smith, Sarah Owermohle and Andrew Restuccia: "The gestures turned out to be largely symbolic - efforts to beat Trump at his own game by giving him headlines he wants without making substantive changes in how they do business. ...

"The industry's deft response to Trump's tweet shaming has also become a test of whether his administration is serious about following up with an aggressive crackdown on the companies or will simply declare victory based on token measures and move on." POLITICO

-- "House committee asks pharmaceutical companies to answer questions about opioids," by WaPo's Katie Zezima: WaPo

WILD STORY -- "Suspected Russian spy found working at U.S. embassy in Moscow," by The Guardian's Nick Hopkins: "U.S. counter-intelligence investigators discovered a suspected Russian spy had been working undetected in the heart of the American embassy in Moscow for more than a decade ... The Russian national had been hired by the U.S. Secret Service and is understood to have had access to the agency's intranet and email systems, which gave her a potential window into highly confidential material including the schedules of the president and vice-president.

"The woman had been working for the Secret Service for years before she came under suspicion in 2016 during a routine security sweep conducted by two investigators from the U.S. Department of State's Regional Security Office (RSO)." The Guardian

ON THE WORLD STAGE -- "Pompeo presses Turkey to release American pastor Andrew Brunson," by NBC's Alastair Jamieson: "Pompeo met with Turkish Foreign Minister Mevlut Cavusoglu on the sidelines of a Southeast Asian security conference in Singapore. ... 'The Turks were on notice that the clock had run and it was time for Pastor Brunson to be returned and I hope they'll see this for what it is, a demonstration that we're very serious,' Pompeo said. 'We consider this one of the many issues that we have with the Turks.'" NBC

-- "U.S. Pushes Europe to Abandon Iran Over Terror Plots-but Meets Resistance," by WSJ's Laurence Norman in Brussels and Matthew Dalton in Paris: WSJ ... "U.S. hits Russian bank with sanctions for North Korea-related activity": Reuters ... "Pompeo: 'ways to go' before NKorea meets denuke vow," by AP's Matthew Lee in Singapore: AP

2020 WATCH -- EVERYONE'S RUNNING! ... "Larry Hogan for president? He didn't rule it out," by WaPo's Erin Cox: WaPo ... "New Age author Marianne Williamson 'looking into' 2020 presidential run," by The Guardian's Ben Jacobs: The Guardian

-- "With Eyes on 2020, Democrats Weigh In on Georgia Governor's Race," by WSJ's Andrew Duehren: "Democrats expected to compete for the 2020 presidential nomination are stepping up for their party's gubernatorial candidate in Georgia-but laying low in traditionally important early primary states like New Hampshire and Iowa-as they seek to avoid the kind of drubbing Sen. Bernie Sanders suffered in the South in the 2016 primary." WSJ

WHAT CHRIS WRAY IS READING -- "FBI struggles to retain top cyber talent," by Eric Geller: "The recent departures of four top FBI cyber officials reflects a troubling trend: The bureau is losing its most seasoned agents and supervisors tasked with disrupting digital threats from Russia and elsewhere, even as threats to the nation's power grid and elections grow.

"Close to 20 top FBI cybersecurity leaders have left for high-paying corporate jobs over the past five years." POLITICO

AP'S STEVE PEOPLES and CHRISTINA CASSIDY: "Campaigns on their own as cyber threats roil midterms": "Every month for the last 18 months, [Kamala Harris'] office has discovered on average between three and five fake Facebook profiles pretending to be hers ... Such internet mischief has become commonplace in U.S. politics. ... Still, one thing has become clear: With the midterm elections just three months away, campaigns are largely on their own in the increasingly challenging task of protecting sensitive information and countering false or misleading content on social media." AP

SCOTUS WATCH -- "After investigating Clinton White House and Vincent Foster's death, Brett Kavanaugh had a change of heart," by WaPo's Robert O'Harrow Jr. and Michael Kranish: "Kavanaugh's revised thinking, as reflected in a 2009 law journal article, is that civil and criminal investigations 'take the President's focus away from his or her responsibilities to the people.' ...

"In early 1995, however, Kavanaugh offered his boss, independent counsel Kenneth W. Starr, the legal rationale for expanding his investigation of the Arkansas financial dealings of President Bill Clinton and his wife, Hillary, to include the Foster death ... The four-page memo, obtained by The Washington Post from the Library of Congress, sheds light on how Kavanaugh's thinking evolved on the legal rights of sitting presidents." WaPo

-- Law360's Jimmy Hoover (@JimmyHooverDC): "NEW: National Archives rebuffs Democratic requests for special access to Kavanaugh's White House documents: 'We have always understood that such authority rests only with the chair of the committee,' Archivist David Ferriero writes Sen. Schumer in new letter." The letter

REMEMBERING JOEL SILBERMAN -- Longtime liberal strategist and activist Joel Silberman died Thursday. He was honored at the Netroots Nation conference in New Orleans. "The impact of Joel's lifelong commitment to uplifting progressive causes will continue to be felt for years to come," said Rep. Mark Pocan (D-Wis.). The Congressional Progressive Caucus statement

FOR YOUR RADAR -- "John McCain passes the torch at the International Republican Institute," by WaPo's Josh Rogin: "For the first time in 25 years, the International Republican Institute will have a new leader. ... McCain's handoff to IRI's next chairman, Sen. Dan Sullivan (R-Alaska), is not a signal that McCain's health is declining." WaPo

TV TONIGHT -- Bob Costa sits down with NBC News' Andrea Mitchell, NYT's Peter Baker and CBS News' Paula Reid on PBS' "Washington Week" at 8 p.m.

MEDIAWATCH -- Osita Nwanevu will be a staff writer in Washington for The New Yorker. He is currently a staff writer at Slate. ... Saba Hamedy will be a news editor at HuffPost in Los Angeles. She is currently a CNN reporter in Washington.

TRANSITIONS -- KENT KNUTSON, VP of government relations at Home Depot, is leaving after 16 years with the company. "I created the Home Depot D.C. office on my dining room table and grew it to one of the best corporate offices in Washington," Knutson messaged. "We've had successes on many levels, especially in the last year, and it's hard to look to the future when you are so invested in the present." Knutson said he is spending the rest of the summer focused on summer and will return in the fall to announce his next chapter.

-- Matt Thornton has launched Armory Strategies. He is the former communications director at the DCCC. ... Dan Krupnick, a DSCC alum, will be political director at Giffords: Courage to Fight Gun Violence. ... Kate Childress will be EVP and head of public affairs at the Bank Policy Institute. She most recently was head of wholesale policy at JPMorgan Chase.

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