(cache) Inside the White House scramble on the Trump Jr. emails - Axios
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Inside the White House scramble on the Trump Jr. emails

The general view of the Donald Trump Jr. email bombshell, according to sources within and close to the White House: no crime, all perception. They know it was politically awful, but have decided there was no real crime.

Their main areas of focus: 1) Who leaked this? Who is the mole? 2) How do we deal with this?

On the leaker:

  • Many of our White House sources are playing amateur detective, some with whackier theories than others, and some of which turn on people within the White House. Suspicion spread between people who worked in campaign and in White House, and while no one we've spoken to has any evidence to support their theories, it's not stopping them from speculating.
  • It's creating a very tense environment, and a number of administration officials can't believe the level of foolishness required for Don Jr. to not only do this but to have such a conversation over email.
  • There's a lot of internal anger over who gave this information to the NYT, which cited three people with knowledge of the emails in its report last night.

On the pushback:

  • There's an emerging strategy to turn this back around on the Democrats.
  • An extreme example of this approach is Roger Stone, who texted Axios: "The president can turn the tables and dominate the dialogue by ordering the indictment of [James] Clapper, [John] Brennan, [Susan] Rice and [former president Barack] Obama for the wholesale unconstitutional surveillance of Americans... I would seriously arrest [and] perp walk every one of these criminals, making as big a show of it as possible."
  • Although Stone is a longtime confidant of Trump, this in no way reflects the strategy preferred by current White House staffers. With that said, there are already internal conversations about turning this into a conversation about Hillary Clinton and Barack Obama, and the way they handled sensitive intelligence.
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What to know about the Trump Jr. email saga

Ross D. Franklin / AP

We're into day four of the deepening controversy surrounding Donald Trump Jr.'s meeting with a Russian lawyer, which took place after Trump Jr. was promised damaging information, via the Russian government, about Hillary Clinton.

Today's bombshell came when Trump Jr. himself shared emails sent prior to the meeting, in which he responds enthusiastically to the idea of a Russia-aided effort to help his father win.

Key excerpts

Email exchange from June 3, 2016

Rob Golstone: The Crown prosecutor of Russia met with his father Aras this morning and in their meeting offered to provide the Trump campaign with some official documents and information that would incriminate Hillary and her dealings with Russia and would be very useful to your father. This is obviously very high level and sensitive information but is part of Russia and its government's support for Mr. Trump—helped along by Aras and Emin.

Donald Trump Jr: "I am on the road at the moment but perhaps I just speak to Emin first. Seems we have some time and if it's what you say I love it especially later in the summer."

The White House reacts

  • Trump, supporting his son: "My son is a high-quality person, and I applaud his transparency."
  • Mike Pence, distancing himself: statement says he's "not focused on stories about the campaign — especially those pertaining to the time before he joined the campaign."
  • Sarah Sanders, denies it's collusion: As for whether there were other meetings with Russians, she says, none "that I'm aware of at this time."

Behind the scenes

Jonathan Swan reports that in private, sources inside the White House aren't even pretending it's ok: They know the Donald Trump Jr. emails that led to his Russia meeting are a terrible story, and mostly they're scrambling to find ways to deflect it and to turn this back against Hillary Clinton or the media.

Insights and observations

  • Jake Tapper, CNN: "On it's face, this email chain is proof of willingness expressed by Donald Trump Jr. to collude with Russia."
  • Lawfare blog asks a key question: "Was this really a one-off meeting that didn't go anywhere, or was it an effort to sound out the people around the candidate to determine their willingness to accept Russian help before taking further steps?"
  • Josh Barro, Business Insider: "If someone said offhand 'this is part of Russian gov efforts to help you' & you were unaware of such efforts wouldn't you say 'the what now?'"

Reactions

  • Former Clinton staffer, via NBC's Kristen Welker: "this is the SNL version of what we always suspected was going on."
  • Sen. Tim Kaine: "We're now beyond obstruction of justice, in terms of what's being investigated, we're now moving into perjury, false statements and even into potentially treason."
  • Sen. Orrin Hatch: "He's the son of the president and frankly I think it's overblown."
  • Sen. Lindsey Graham: "Any time you're in a campaign and you get an offer from a foreign government to help your campaign, the answer is no."

Timeline

  • May 26: Trump clinches the number of delegates needed to become the Republican nominee, though at the time there's talk of an effort to block him at the convention.
  • June 3: Publicist Rob Goldstone emails Trump Jr. saying the crown prosecutor of Russia wants to provide information that "would incriminate Hillary and her dealings with Russia and would be very useful to your father" as "part of Russia and its government's support for Mr. Trump." Trump Jr. replies, "I love it."
  • June 9: The meeting with Russian lawyer Natalia Veselnitskaya takes place at Trump Tower. Trump Jr., Paul Manfort and Jared Kushner attend.
  • June 15: Internal DNC documents are released, after apparently being stolen by Russian hackers. Note: there's no indication the Trump campaign was involved in the release.

Flashback


Shifting explanations

  • Saturday: When the NY Times first reported on the meeting, Trump Jr. said it was a brief introductory meeting and the primary topic of discussion was the adoption of Russian children. He had previously said he hadn't met with anyone related to Russia on campaign business.
  • Sunday: After the Times followed up with a report that Trump Jr had been promised "damaging information" on Clinton, Trump Jr. released a longer statement admitting that was the case, but claiming it "quickly became clear that she had no meaningful information. She then changed subjects and began discussing the adoption of Russian children."
  • Monday: It is reported that Trump Jr. has hired a lawyer. Later, that lawyer releases a statement saying Trump Jr.'s "takeaway" from the email was "someone had information potentially helpful to the campaign," implying that his takeaway was not that the information was coming from the Russian government.
  • Tuesday: Trump Jr. releases the emails.

The cast of characters

Natalia Veselnitskaya, the lawyer at the Trump Tower meeting

Veselnitskaya is known for her lobbying against the Magnitsky Act, designed to seize the assets of and deny visas to suspected Russian human rights abusers. Veselnitskaya told the NYT that she "never acted on behalf of the Russian government," but her anti-Magnitsky campaign is a cause that's deeply personal for Vladimir Putin.

Rob Goldstone, the music publicist who linked up Trump Jr. and Veselnitskaya

Goldstone's social media pages show him interacting with President Trump as far back as 2013 — and include an Instagram of him wearing a shirt that simply says "Russia" just after Trump won the presidency in November.

Emin Agalarov, the Russian pop star who asked Goldstone to set up the meeting

Agalarov is a 37-year-old pop star who became close to Trump following the 2013 Miss Universe pageant in Moscow.

Aras Agalarov, Emin's father and a billionaire real estate mogul in Moscow

According to Forbes, the 2013 pageant was hosted at one of Agalarovs' properties — after Aras and Emin made a concerted effort to reach out to Trump. Aras' bigger goal was a licensing deal with Trump to build a Trump Tower in Moscow.


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Exclusive: Layoffs at Fidelity Investments

Fidelity Investments on Tuesday laid off hundreds of employees, Axios has learned. This comes just months after the Boston-based firm offered voluntary buyouts to 3,000 members of its 45,000 workers – an offer that is believed to have been accepted by more than 1,500 employees.

Context: Fidelity is not the sort of company that would seem to require cost-cutting. Last year it reported record revenue ($15.9 billion), profits ($3.5 billion) and accounts (workplace plan participants, retail households and institutional). But it has been known to do periodic payroll culling, in part to keep those profit margins high.

Fidelity statement to Axios: "We are a very healthy company that continues to grow, and our record 2016 earnings underscore this fact. Beyond this, we actively manage our business and have not historically commented about hiring or reductions."

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Trump applauds Don Jr.'s "transparency" for releasing Russia emails

Lazaro Gamio / Axios

Deputy Press Secretary Sarah Sanders read a statement from President Trump Tuesday regarding the release of the emails that led up to Don Jr.'s June meeting with a Russian attorney: "My son is a high-quality person, and I applaud his transparency," wrote Trump. Highlights from the off-camera briefing:

  • When was the last time Trump spoke with Don Jr.? "I don't know," said Sanders, before referring all other Trump Jr. questions to his outside counsel. "I don't have anything else to add."
  • On words like "treason" and "perjury" being thrown around: "I think those new words are ridiculous."
  • Why is the briefing increasingly being held off-camera? Off-camera is "one of the many ways we choose" to communicate.
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Harrison Suarez and Michael Haft, former Marines and the founders of Compass Coffee, discuss the value of taking your time when making important decisions.

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What we know about the Senate health care bill

AP Photo/Andrew Harnik

Senate Republicans are still deeply divided over the contents of their health care bill, and several big questions have yet to be answered. There's even talk of attempting a bipartisan alternative. And Majority Leader Mitch McConnell canceled the first two weeks of the August recess to give the chamber more time to work.

In short, things aren't looking good.

What we're hearing about the next iteration of the bill:

  • The Medicaid portions of the revised bill likely will stay largely the same as the first version — including the growth rate for new per-person funding caps and the process for phasing out the Affordable Care Act's Medicaid expansion.
    • This is a loss for several moderates, including Sens. Dean Heller, Rob Portman, Shelley Moore Captio, Lisa Murkowski, Dan Sullivan, John Hoeven and Susan Collins. It's a win for conservatives, particularly Sen. Pat Toomey.
    • A small tweak is likely to be added that would benefit Louisiana, a senior GOP aide told me. This would help with Sen. Bill Cassidy's concerns.
  • Sen. Lindsey Graham said he's working on an alternative health care bill, which he hopes would attract some Democratic support. An aide said he was scheduled to present on his plan at Tuesday's GOP lunch.
  • The jury's still out on whether to include Sens. Ted Cruz and Mike Lee's Consumer Freedom Option in the bill, but there's a strong chance it doesn't meet Senate budget rules anyways. That means it could be subject to a 60-vote threshold to be included — whether as an amendment or part of the overall bill — and it surely wouldn't muster that many votes.
  • There will be additional funding for the opioid epidemic — likely $45 billion — as well as a provision saying people can use health savings accounts to pay their insurance premiums.
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​Political views tops list of reasons people are harassed online

Wilfredo Lee / AP

Over 40% of Americans have been the target of harassing behavior online, up just 6% from 2014, according to Pew Research Center. Of all the things people say they are harassed for, political views tops the list, followed by physical appearance, gender and race/ethnicity. Republican and Democratic respondents are equally likely to be harassed online for their political views.

Types of harassment: Around 25% of respondents say they have been called offensive names or have been purposefully embarrassed by someone. Less people said they experienced more extreme forms of harassment, like physical threats (10%), stalking (7%) and sexual harassment (6%).

Nearly half (45%) of respondents say online harassment causes mental or emotional stress and around 25% say online harassment has caused damage to reputation. Fewer report financial loss or problems at work/school as a result of online harassment.

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Trump Jr.'s contradictory stories on Russian support for his dad

Donald Trump Jr. told CNN in July 2016 that the theory that Russians tried to help Donald Trump in the U.S. presidential election and hurt Hillary Clinton was "so phony," "disgusting," and "lie after lie." He said Trump's opposition would "do anything to win."

Just one month before the CNN interview, Trump Jr. was informed before taking a meeting with a "Russian government attorney" was "part of Russia and its government's support for Mr. Trump." When told the attorney had information that would "incriminate Hillary" Clinton, Trump said "if it's what you say I love it especially later in the summer."

Go deeper: Read the emails.

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McConnell delays August recess

Alex Brandon / AP

Mitch McConnell has delayed the Senate's summer recess until August 11. He was under pressure to push back the recess, which was due to start on July 31, after some Republicans argued members shouldn't return home until they pass a health care bill.

McConnell spokesman Don Stewart tweeted that it will give the Senate more time to work on legislation and nominations, but the reality is that Senate Republicans have also been stuck on their health care bill for weeks, and that has backed up the rest of the agenda.

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Untangling the web of Trump Jr.'s Russia meeting

Kathy Willens / AP

This weekend's report that Donald Trump Jr., Paul Manafort, and Jared Kushner attended a meeting at Trump Tower last June with a Kremlin-linked lawyer who promised damaging information on Hillary Clinton was another drip in the ever-expanding Russia story — and it led to Trump Jr. lawyering up for the Russia probe last night.

Looks like he needed it: The story exploded this afternoon when Trump Jr. tweeted the full email chain that led to the meeting, which explicitly called the meeting a "part of Russia and its government's support for Mr. Trump."

Go deeper: From Rob Goldstone to the Agalarovs, the news surrounding this meeting has introduced a whole host of colorful new characters to the Trump-Russia web, many of whom hadn't been mentioned widely in previous reports.

Natalia Veselnitskaya, the lawyer at the Trump Tower meeting

Veselnitskaya is known for her lobbying against the Magnitsky Act, signed into law by President Obama in 2012 and designed to seize the assets of and deny visas to suspected Russian human rights abusers. The law so enraged Russian President Vladimir Putin that he halted the adoption of Russian children by American families. Veselnitskaya told the NYT that she "never acted on behalf of the Russian government," but her anti-Magnitsky campaign is obviously a cause that's deeply personal for Putin.

Rob Goldstone, the music publicist who linked up Trump Jr. and Veselnitskaya

Goldstone is a friend of Trump Jr., often involved in the Miss Universe pageant, who claimed to set up the meeting for Veselnitskaya to discuss the adoption issues caused by the Magnitsky Act, per a WaPo report. His social media pages show him interacting with President Trump as far back as 2013 — and include an Instagram of him wearing a shirt that simply says "Russia" just after Trump won the presidency in November.

Emin Agalarov, the Russian pop star who asked Goldstone to set up the meeting

Agalarov is a 37-year-old pop star who became close to Trump following the 2013 Miss Universe pageant in Moscow. Emin has performed at Trump golf courses, received a videotaped birthday message from Trump in 2013, and even got Trump to cameo in one of his music videos, per Forbes' definitive Agalarov profile. He reportedly exchanged text messages with Trump Jr. around the inauguration, inquiring about the potential for new business deals.

Aras Agalarov, Emin's father and a billionaire real estate mogul in Moscow

According to Forbes, the 2013 Miss Universe pageant ended up in the Moscow — hosted at one of the Agalarovs' properties — after Aras and Emin made a concerted effort to reach out to Trump. Aras' bigger goal was a licensing deal with Trump to build a Trump Tower in Moscow, which Emin told Forbes was in the pipeline before Trump announced his campaign, putting the deal on ice.

(Left to right) Donald Trump, Aras Agalarov, Miss Universe 2012 Olivia Culpo, Emin Agalarov at Miss USA 2013 pageant.Jeff Bottari / AP

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China: We are "not to be blamed" for North Korea

Saul Loeb / AP

China's foreign ministry spokesman Geng Shuang said on Tuesday that China should not "be blamed for the current escalation of tension" with North Korea, "nor does China hold the key to resolve the issue," according to an ABC report. But at the G20 Summit, Trump told President Xi: "I appreciate the things that you have done relevant to the very substantial problem that we all face in North Korea," continuing his plea to China for help on the issue.

Why it matters: Following several weeks of pressure from the U.S. on China to take action against North Korea and its nuclear testing, China said that "perceptions of its influence with North Korea are exaggerated." ABC reports that China is also concerned with violence that would result from destabilizing North Korea, the "massive flows of refugees into China," and a possible "united Korea allied with the United States."