(cache) White House denies apologizing to the U.K. - Axios
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White House denies apologizing to the U.K.

Evan Vucci / AP

Earlier reports indicated that Sean Spicer and national security advisor H.R. McMaster had apologized to the United Kingdom for Spicer's statement that British intelligence played a part in the alleged wiretapping of Trump Tower.

Now, the White House says there was no apology. Instead, it actually "defended Spicer's mention of wiretapping" after fielding complaints from across the pond, per the NYT's Julie Davis.

A senior administration official on Spicer, via the NYT: "He didn't apologize, no way, no how."

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Sensitive laptop stolen from Secret Service agent

Mark Lennihan / AP

A laptop holding Trump Tower floor plans, information about Hillary Clinton's email investigation, and other information about national security was stolen Thursday from a Secret Service agent, as the NY Daily News first reported. The thief reportedly took the laptop from the agent's vehicle when it was parked outside her home.

Secret Service Director of Communications Cathy Milhoan said she can "confirm" the criminal act and added that "Secret Service issued laptops contain multiple layers of security including full disk encryption and are not permitted to contain classified information." Another Secret Service representative told Axios they were still "trying to gather all the facts."

Why it matters: The agent told investigators the information could threaten national security.

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House Dems clash with DHS head on immigration

Andrew Harnik / AP

House Democrats had a meeting today with DHS Secretary John Kelly over concerns of mass deportations of illegal immigrants, per Politico. Afterward, Dems called the meeting "very military" and "damn frustrating." Some Kelly quotes to judge for yourself…

  • "Give me a break."
  • "I'm the best thing that happened to DACA."
  • "Everything will remain on the table."
  • "If you don't like the law we are enforcing, and I don't like many of them, please, please, please change the law."
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Zionist group defends Trump official accused of Nazi ties

Youtube / Screenshot

The Zionist Organization of America, an influential conservative pro-Israel group, is forcefully defending the reputation of Trump security advisor Sebastian Gorka. The news outlet Forward accused Gorka of having sworn allegiance to Vitézi Rend, a Hungarian nationalist group linked to Nazis. Gorka has denied the charge.

"Dr. Gorka is a proud American patriot and fighter against radical Islamic terrorism, and a faithful friend of the State of Israel and the Jewish people," said ZoA's president Morton Klein in a statement.

Why this matters: Klein is among the most influential figures on the conservative side of America's pro-Israel community. He's previously defended Trump's chief strategist Steve Bannon against charges of anti-Semitism and his words carry weight on the right.

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MuleSoft CEO talks IPO, immigration and more.

MuleSoft, a San Francisco-based SaaS integration company, last night priced the year's first big enterprise software IPO, raising $221 million. Shares are up sharply in their first day of trading on Friday, giving it a value well north of $3 billion.

Axios spoke by phone with MuleSoft CEO Greg Schott, who touched on IPO timing, acquisitions, immigration policy and his message to company employees about following the stock price:

On why the 11 year-old company is going public now:

"For a growing company like this, investors are most focused on what you're able to do with your free cash flow. We'd managed to take negative cash flow down to negative 4%, on the verge of break-even, while continuing to grow the business at 70% per year, which helped us feel that we were good and ready.... The biggest driver of going public, in general, is that we sell mission-critical software to large-scale organizations and we felt that being a public company would give them more confidence to buy from us."

On its professional services segment having negative margins:

"We run professional services as a way to get our companies successful on our products, but we're not waking up each morning looking at how we maximize margins on services. Instead, we use services as a core driver for the software subscription business."

On possible acquisitions:

Schott says that the company is particularly interested in small "fold-in" purchases of security and analytics companies, since MuleSoft "has visibility into the flow of information in every part of an organization" that it could build on top of. It also is interested in acqui-hires of strong engineering talent.

On immigration policy, given that a large number of MuleSoft employees work outside the U.S.:

"The free flow of talent across borders is important to business, to capitalism and is a big driver of the American tech market. Anything that impedes that flow is not positive. We and others are going to find ways to work through it, but it obviously is not helpful."

Message to employees about the IPO:

"We've been telling the team that our mission is to go build a great company for the long-term. The stock is going to move around from day-to-day and month-to-month, and we've showed them times when even companies like Google and Facebook weren't trading great for six months or so. If we do right by our customers and keep building the company, then the stock will follow. But you can't watch the stock price on a near-term basis and feel it reflects the worth, or lack of worth, of MuleSoft."

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UK gov pulls ads from YouTube

Youtube Rego Korosi via Flickr CC

The UK government has removed its ads from YouTube out of concerns they were appearing alongside "inappropriate" material. The Guardian, Channel 4, and the BBC have followed suit. According to the BBC, the government made the move after ads had been attached to extremist content, potentially putting money in the pockets of extremists. The suspension is temporary, and Google (which owns YouTube) has said it will review its controls.

Context: Google has faced increased pressure to take ownership of the types of content that appears next to its ads, and it has been actively going after bad ads and hate sites for a while. Recall, in 2016 Google punished 340 sites and banned 200 permanently. Google told Axios in January that it has a team of over 1000 people regulating bad ads. But its scale makes it difficult to effectively regulate everything across its platform.

This is a trend: Executives from Facebook, Twitter, and Google appeared before the UK Commons Home Affairs Committee and were told they had a "terrible reputation" for monitoring their content given their revenues.

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More than 1k hedge funds closed last year, the most since 2008

Richard Drew / AP

More hedge funds closed in 2016 than in any year since the 2008 recession, as investors moved money to larger firms and withdrew assets, reports Bloomberg. Over 1,000 firms were liquidated, the most since 2008, and only 9,893 asset management funds remained open, the fewest since 2012.

As Bloomberg points out, the data — compiled by Hedge Fund Research Inc. — rounds out a difficult year for hedge funds, which have been criticized for their high fees and underperformance. Meanwhile, the decline has proven to be beneficial to investors, as hedge fund management fees have already fallen to 1.48%, and the average performance charge has dropped 10 basis points to 17.4%.

Why this matters: The data reveals the growing trend toward passive investing and away from active investing.

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Price previews next Obamacare regulatory steps

J. Scott Applewhite / AP

Health and Human Services secretary Tom Price gave House Republicans a preview of the next regulatory steps he's planning to take to ease Obamacare's rules, which will include more steps to stabilize the individual health insurance market and a measure to soften the law's "essential health benefit" requirements.

Here's what HHS is considering, according to a GOP source in the room:

  • A new market stabilization rule, likely in mid-April.
  • A rule addressing the essential benefits.
  • A measure targeting "direct enrollment, in which an insurance agent logs on to a health insurer's website to help the consumer enroll.
  • Giving states more flexibility to restrict special enrollment and grace periods for paying premiums.
  • A rule to encourage "Section 1332" waivers, in which a state can opt out of some of Obamacare's rules if it can achieve the same goals in different ways.
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Trump welcomes German Chancellor Merkel

Pablo Martinez Monsivais / AP

German Chancellor Angela Merkel has arrived at the White House, where she was greeted by President Trump. The two world leaders will be in and out of meetings this afternoon, before giving a joint press conference at 1:20 p.m.

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Exclusive: IBM to hire 2,000 more veterans, expand tech training schools

IBM

IBM CEO Ginni Rometty is among the tech leaders meeting Friday with President Trump and German Chancellor Angela Merkel, Axios has learned. They'll discuss worker training. And IBM will announce plans to:

  • Open 20 more of its P-TECH schools, which let students get a combined high school degree and associate degree in science and technology in as little as four and a half years. There are already 62 of the schools in six U.S. states and Australia. The 20 new schools are all slated to be in the U.S.
  • Hire 2,000 U.S. military veterans over the next four years and expand a program that trains and certifies veterans in the use of the type of IBM software often used by law enforcement, cybersecurity and national security agencies.

Why it matters: Rometty has been on Trump's business advisory committee, defending her engagement with Trump as the best way for the company to advance its positions. Announcing plans to hire veterans could generate further approval from a president eager to show he is creating U.S. jobs.

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House will vote Thursday on GOP repeal and replace bill

Andrew Harnik / AP

The House will vote Thursday for Speaker Paul Ryan's repeal and replace plan bill, according to two senior GOP sources, per Politico.

Why it matters: This could indicate confidence that they've nailed down the 216 votes needed to pass it through, even though GOP divisions abound. See who's already on board from our earlier story here.