Trump v. everyone - Axios
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Trump v. everyone

Sam Jayne / Axios

President Trump increasingly feels (and knows) that he's fighting virtually every force in U.S. and global politics — even those who initially wanted to give him the benefit of the doubt or seem friendly.

  • The only people truly on his side are the 40 percent of voters who continue to cheer his middle finger to the powerful.
  • All those forces — basically permanent Washington, plus crucial world leaders — are deeply suspicious of Trump, and see an increasing duty to thwart him for moral or practical reasons.
  • "What goes around, comes around," said one of Washington's Republican pillars. "He was very critical of each of those groups. So why are they going to go to the man for him? He has done so many things outside the norms of behavior."

There's been a huge swing in the barometric pressure for these groups:

  • CEOs, many of whom whom engaged with this White House over the opposition of employees and shareholders, face increasingly intense resistance to oppose him.
  • Outside of the Saudis, the Poles and Putin, very few world leaders want to get his back or offer cover.
  • Most elected Republicans in town would privately prefer a President Pence. When push comes to shove, they may not protect Trump. Indeed, their natural impulse will be to throw him overboard.
  • Finally, there's M & M: Bob Mueller and big media, all combing through every meeting, business deal, and foreign contact by Trump and his staff.

On congressional Republicans, from Jonathan Swan:

  • For the moment, they'll stay quiet and muscle through because they want their tax reform, and they need a Republican president to sign it. But when [stuff] really hits the fan he'll have very little goodwill on the Hill to back him up."
  • Trump burned so much goodwill when he trashed the House health care bill as 'mean' after lobbying the hell out of them and celebrating with them in Rose Garden. That was a really profound moment — that he'd throw them under bus so casually on a piece of legislation that were already so leery about supporting."

Be smart: Trump increasingly questions the loyalty of everyone, including his own staff and personal lawyer. Every day, it feels like the walls are closing in and it's unclear who to trust.

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Dem congressman introduces impeachment articles on Trump

AP

Rep. Brad Sherman (D-Calif.), a senior member of House Foreign Relations Committee, introduced articles of impeachment Wednesday against President Trump for obstruction of justice.

  • In the articles, Sherman states that Trump "sought to use his authority to hinder and cause the termination of" the Russian investigations, and specifically cites Trump's alleged attempts to pressure FBI Director Comey to drop the agency's investigation into Michael Flynn, as well as the subsequent firing of Comey, as examples of obstruction of justice.
  • Why it matters: After House Democratic leaders expressed concern about his calls for impeachment, Sherman assured House Minority Leader Nancy Pelosi that he wouldn't ask for a floor vote on impeachment without consulting the Democratic caucus. Now he's gone through with it.
  • Why it doesn't matter: Trump can't be impeached without Republican support.
Facts Matter Featured

How constitutional steps like impeachment actually work

Lazaro Gamio / Axios

The issue:

Rep. Brad Sherman (D-Calif.) introduced an article of impeachment on Wednesday against President Trump, the day after Donald Trump, Jr. released his email exchange in which he replied "I love it" to an offer of help from the Russian government against Hillary Clinton.

Why it matters:

Any move to impeach or remove Trump from office would require substantial bipartisan support, and most members of Congress — on both sides of the aisle — aren't talking impeachment just yet. But the political ground might be shifting against Trump: John McCain used the word "Watergate" and top House Republicans have demanded to see Comey's memos regarding his presidential interactions in full.

The facts:

The Constitution grants Congress the ability to impeach and remove "the President, Vice President, and all civil officers of the United States" for "treason, bribery, or other high crimes and misdemeanors." But Trump might be concerned about how then-House Minority Leader Gerald Ford summed things up in 1970:

An impeachable offense is whatever a majority of the House of Representatives considers it to be at a given moment in history.

How it goes down: An impeachment is only the first step toward a president's removal from office, as two presidents — Andrew Johnson and Bill Clinton — have survived impeachment previously. Here's how the relatively simple process for impeachment and removal works:

  1. The House of Representatives passes articles of impeachment with a simple majority. Impeachment itself carries no consequence. It's simply a formal statement of charges against the official.
  2. The Senate then tries the accused official — with the Chief Justice of the Supreme Court presiding over a presidential impeachment — and two-thirds of senators must vote for a conviction in order to remove the official from office. This is where both Johnson and Clinton survived, Johnson escaped by just one vote, while the vote against Clinton wasn't very close.

It's worth noting: The impeachments of both Johnson and Clinton came when the opposing party controlled Congress.

What about Nixon? He resigned before the House brought formal impeachment proceedings against him, after Republican congressional leaders told him in the Oval Office that the Senate would almost certainly convict and remove him.

Another option: A president could also be removed under the 25th Amendment if the Vice President and a majority of Cabinet officials decide that the president is "unable to discharge the powers and duties of his office." It's designed to transfer the power of the presidency after an emergency.

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WH puts out competing analysis of Medicaid savings

Evan Vucci / AP

The White House has released its own analysis of the Medicaid changes in the Senate health care bill to push back against the Congressional Budget Office estimates — another step in the administration's effort to convince jittery Republicans that CBO overestimates the impact of the proposed spending limits.

What the White House says: "Although CBO's estimates should be discounted because of the large errors made by the agency in estimating the toll of the Affordable Care Act," the new analysis "provides important information about the undescriptive CBO estimate" on Medicaid spending.

Between the lines: The White House statement is far more combative than the actual analysis, by the Council of Economic Advisers. The White House plays up the fact that overall spending would still increase, and says the spending limits "will help preserve the program for those who truly depend on it." But the economic advisers acknowledged that the Medicaid rewrite could produce as much as $772 billion in savings over 10 years — the same as the CBO estimate.

Delta is on track to donate millions to charity

Flying Delta helps contribute to charitable work across the country. Delta is set to donate over $40 million to charity in 2017.

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State Dept. booked 19 rooms at Trump's Vancouver hotel during grand opening

Evan Vucci / AP

The State Department booked 19 rooms at the Trump International Hotel Tower in Vancouver at a cost of more than $15,000 during the grand opening of the complex in February that was attended by the Trump children, per a FOIA request by The Washington Post.

The reason: The documents obtained showing the expenditure were highly redacted, but State told WaPo that generally "[e]mbassy and consulate personnel work with the Secret Service to provide assistance on security matters as necessary for conditions in the particular host country."

Worth noting: The Trump hotel in Vancouver isn't actually owned by The Trump Organization — it simply got its name and branding via a management and licensing deal, and Trump earns royalties from the arrangement.

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Minority women in astronomy more likely to face harassment

Lazaro Gamio / Axios

A new study finds that not only is discrimination widespread in astronomy and planetary sciences (88% of respondents said they've seen or experienced racial or sexual harassment in the last five years), women of color are much more likely to face it.

  • In a survey of 424 scientists, 40% of women of color said they felt unsafe in the workplace because of their sex, compared to just over a quarter of white women surveyed.
  • 13% of all women said they had skipped a professional event, like a meeting or a class, because of harassment.

Kathryn Clancy, an anthropologist and author of the study, says it's clear that women of color are more vulnerable to workplace harassment than white women. "Women of color have been telling us this for decades," she says, "I think it's time we decide to start listening."

Why it matters: Not only is there a constant emotional labor that comes from feeling unsafe at work, Clancy notes that harassment drives people out of science. In a field like planetary science and astronomy, where women are already a minority, this can have a huge impact on the literature produced. Racism and sexism have a trickle-down effect: White men are cited more often, more likely to get published, get better letters of recommendation and are more likely to get grants.

"There's research, grounded in evidence, that shows that when we use categories like race and gender rather than expertise to evaluate someone's worthiness, we do science a disservice. We miss out on brilliant minds doing brilliant things," says Clancy.

Recent high-profile sexual harassment cases have made one thing clear: the structure of academia can make reporting harassment very difficult. Graduate students' and post-docs' futures are often tied to the success of their labs. Their ability to get jobs, or pass their dissertation, relies on the whims of their lab leaders and their review committees. Students report they're concerned that complaints will be ignored, swept under the table or even retaliated against.


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VCs say too few "unicorn" IPOs is causing liquidity crunch

Lowenstein Sandler LLP

Law firm Lowenstein Sandler recently hosted dozens of venture capitalists and limited partners in San Francisco to discuss some of the latest trends in their business. Axios sat in on a discussion about "unicorns"—startups valued at more than $1 billion—and late-stage investing. Highlights:

  • Uber will be fine.
  • Liquidity needs are growing, which means that secondaries are becoming more common.
  • VC rounds are taking longer to complete, in part due to increased competition within niches.

Near-term Uber: Despite several people in the room admitting they've stopped using Uber, no one seemed to doubt that the company's business is continuing to move along. As for the fate of its next financing, opinions were mildly optimistic. Battery Ventures VP Jeffrey Lu said it will likely raise a down round, though it wouldn't be a big deal, he added. NextWorld Capital principal Tarun Kalra predicted a structured round at a flat valuation, which is currently about $70 billion.

Staying private longer: Overall, this is happening because companies aren't ready to be public, investors said. Some may not be performing well enough, posited Sapphire Ventures principal Kevin Diestel. Other companies raised funding earlier than they should have and are now taking longer to grow to the point at which they could be public, added Benchmark partner Sarah Tavel.

Liquidity: One consequence of unicorns staying private is the growing need for liquidity. Sapphire's Diestel said he's seeing a secondary as part of almost every deal these days, while Tavel says there's an uptick in private tender offers. 137 Ventures partner Elizabeth Weil said that companies aren't fighting the secondaries' discounts because deep down, they know those are the rational prices for their shares. She also added that laws around tenders sorely need to evolve to be more in line with employee needs (Weil went through the process years ago as a Twitter employee).

Slower investment pace: VCs are taking more time to invest because several companies with a similar idea are cropping up, making it more difficult to pick the potential winner, according to Benchmark's Tavel. Investors also have big funds, making it easier to wait and write a bigger check if needed to invest in a hot company, added Accel partner Brian O'Malley. "You don't get fired for lighting $10 million on—you get fired for putting $5 million in the eventual No. 2 company," said First Round Capital partner Phin Barnes.

Bridges and extensions: Startups are raising more seed round extensions (extra funding prior to raising a Series A) lately, said Floodgate partner Iris Choi. There's also an overall uptick in bridge rounds, said Lowenstein's Ed Zimmerman, who chairs the law firm's tech group.
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Iraq to open new oil and gas exploration to fund ISIS fight

Nabil al-Jurani / AP

Iraq, which has the world's fourth-largest oil reserves, announced this week it will be offering oil and gas exploration rights as part of its effort to root out ISIS from the region, per the AP. The measure is intended to boost energy revenues amid low oil prices.

Why it matters: Oil has been important to financing Iraq's security services and its fight against ISIS — for context, in 2014 94% of Iraq's federal revenue came from oil, per the IMF, and even amid the tensions in the region, Iraq stepped up its production last year, according to CNNMoney. Note also, U.S. imports from Iraq are up this year from last, per the EIA, and more than doubled between August and September 2016 alone.

The plan: Putting nine border exploration blocks up for bidding, according to Oil Minister Jabar Ali Al-Luaibi. Five are shared with Iran, three with Kuwait, and one in the Persian Gulf.

How virtual reality is revolutionizing retail training

At Walmart, people make the difference. With technology, they can do even more. In Walmart Academies, VR simulations enhance training for associates so they can serve customers better. Learn more.

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Another VC resigns after accusations of 'misconduct'

Frank Artale, a former Microsoft executive and co-founder of venture capital firm Ignition Partners, has resigned at the firm's request, following two allegations of inappropriate conduct. No specifics were provided of either incident.

From a statement made last night by Ignition, which has offices in Bellevue, Wash. (where Artale was based) and Silicon Valley:

"We took this serious and near-immediate step, in part, due to this complaint, combined with a third-party accusation of inappropriate conduct by Mr. Artale in 2016. At that time, we engaged outside counsel and conducted an exhaustive investigation into the event. While the investigation did not substantiate the allegations, it did indicate that he demonstrated poor judgment, which we addressed with him. Following that report, we retained an expert consultant to conduct sensitivity and anti-harassment training."

Bottom line: Like with 500 Startups – whose new CEO Christine Tsai continues to refuse interviews – there are going to be additional questions for Ignition Partners about how it handled the earlier complaint. And also about what limited partners did, and didn't, know.

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FCC chief cracks down on internet subsidy program

Robin Groulx / Axios

FCC Chairman Ajit Pai is placing more "safeguards" on a subsidy program for the poor, per a letter sent Tuesday. The Lifeline program was recently expanded from only covering phone service to to include broadband.

What Pai wants: He wants the non-profit that administers Lifeline to implement changes like auditing the companies that provide the subsidized service to check for "ineligible" subscribers and increasing oversight of the individual salespeople who work for the carriers.

Why it matters: Pai is acting on his longtime criticism of the program, which he says is fraught with waste and fraud. It also sets up a fight over a program that many low-income Americans rely on.

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Defense Dept. hires 6 research orgs for cyborg project

Courtesy of DARPA

The Defense Department's research arm DARPA announced this week the forthcoming contracts for its ambitious Neural Engineering System Design (NESD) project, which seeks to create computer chips that can be implanted in the brain to enable direct communication between it and a computer, as well as to enhance human senses.

One example of a project under the NESD umbrella is led by Drs. Jose-Alain Sahel and Serge Picaud — it will seek to "enable communication between neurons in the visual cortex and a camera-based, high-definition artificial retina worn over the eyes," in order to augment human vision.

Why it matters: DARPA has funded the basic research that has led to such breakthroughs as the Internet and GPS. Observers hope that with the tens of millions of dollars the feds are investing in this technology, along with efforts by entrepreneurs like Elon Musk, it won't be long before these technologies are in widespread use.

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