Anxiety rises as Musk closes in on Twitter deal

From: POLITICO Playbook PM - Thursday Oct 27,2022 05:19 pm
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By Garrett Ross

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SIREN — Rep. LIZ CHENEY (R-Wyo.) is for the first time formally endorsing a Democrat, throwing her support behind Rep. ELISSA SLOTKIN, who is fending off a challenge from Republican state Sen. TOM BARRETT in Michigan’s 7th Congressional District — a race that appears to be a toss-up at this point. Cheney is planning to roll out her endorsement today and join Slotkin for a campaign event in Michigan on Tuesday, AP’s Thomas Beaumont reports .

A source close to Cheney told Playbook that the Wyoming Republican is backing Slotkin because Barrett “is an election denier. He refuses to acknowledge the results of the 2020 election, fought the certification of the electoral college, and continues to push former President Trump’s fraudulent claims to this day.”

MAD MEN MUSK — ELON MUSK is on the verge of closing his deal to acquire Twitter this week. Barring an eleventh-hour snag, the eccentric billionaire should be officially installed as the head honcho (or “Chief Twit,” as he seems to prefer) by next week.

But advertisers are reportedly “concerned about the billionaire’s plans to soften content moderation and what they say are potential conflicts of interest in auto advertising, given that he is chief executive of Tesla Inc.,” WSJ’s Patience Haggin and Suzanne Vranica report .

A lot of the angst specifically comes down to Musk’s indications that he would let former President DONALD TRUMP return to his powerful perch on the platform. “That would be a red line for some brands, said KIELEY TAYLOR, global head of partnerships at GroupM, a leading ad-buying agency that represents blue-chip brands.

“About a dozen of GroupM’s clients, which own an array of well-known consumer brands, have told the agency to pause all their ads on Twitter if Mr. Trump’s account is reinstated, Ms. Taylor said. Others are in wait-and-see mode.”

Sensing this reaction, Musk issued a pledge to advertisers on his Twitter account this morning that he would not let the platform become a “free-for-all hellscape, where anything can be said with no consequences!”

He continued at length, explaining he sought to purchase Twitter to create “a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence.” He also said it was done to “try to help humanity, whom I love.” His whole message is worth reading .

And for good measure, Twitter’s chief customer officer SARAH PERSONETTE said she had a productive conversation with Musk on Wednesday. “Our continued commitment to brand safety for advertisers remains unchanged,” she tweeted . “Looking forward to the future!”

This, of course, all comes at a particularly potent time: The prospect of Trump returning just days before voters head to the polls would be quite the October surprise.

And despite Twitter’s internal efforts to moderate and squash misinformation, WaPo’s Will Oremus, Naomi Nix and Elizabeth Dwoskin write that “the company is in greater disarray than ever — increasing the risk that cagey political operatives will be able to use the platform to deceive voters or undermine the legitimacy of results.”

— HOT JOB, from today’s Daybook: “Public Policy Manager” at Twitter

AND THEN THERE’S THIS — WaPo’s Michelle Boorstein and Isaac Arnsdorf write that, between Trump and YE, antisemitism is back on full public display, though many longtime watchers note that it has never really gone away. “But what has struck some experts is how blatant the comments about Jews are at a time when incidents of harassment, vandalism and violence against them have been at their highest levels since at least the 1970s,” they write. “Recent data already showed that a majority of American Jews fear violence against them.”

Good Thursday afternoon. The World Series starts tomorrow. Apparently, a Philadelphia win would foretell economic disaster . I’ve got Phillies in six. Send me your predictions (both for the series and the economy): gross@politico.com .

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BIG PICTURE

SCENES FROM THE CAMPAIGN TRAIL — WaPo is up with a big visual story feature that takes you around the country with a collection of reporters who have been following some of the key candidates ahead of the midterms.

BUCKLE UP — We’re still 12 days away from Election Day, but the litigation is already pouring in without any declared winners. “More than 100 lawsuits have been filed this year around the upcoming midterm elections,” AP’s Colleen Long writes . “The suits, largely by Republicans, target rules over mail-in voting, early voting, voter access, voting machines, voting registration, the counting of mismarked absentee ballots and access for partisan poll watchers. It’s the most litigation ever before an election and it’s likely a preview of a potentially contentious post-election landscape.”

NOT WHAT YOU WANT TO HEAR — “‘Our security here is a joke’: Election workers lament lack of federal spending on security ahead of crucial midterms,” by CNN’s Sean Lyngaas

ON YOUR FYP — The DNC brought a cabal of TikTok influencers into D.C. this week to meet with Biden and former president BARACK OBAMA and tour the Supreme Court and Capitol. It was all part of the “most visible effort to date of Democrats attempting to leverage TikTok’s vast audience to influence the midterms and is likely to prove controversial with Republicans, many of whom have been harshly critical of TikTok’s Chinese ownership,” WaPo’s Taylor Lorenz writes . “It remains to be seen how the creators will make use of the visit. Many had previously been largely apolitical, encouraging their fans to vote but not explicitly backing parties or candidates.”

A PLACE TO LAY THEIR HEADS — “How Mike Lindell’s Pillow Business Propels the Election Denial Movement,” by NYT’s Alexandra Berzon, Charles Homans and Ken Bensinger: “By his account, Mr. Lindell has spent as much as $40 million on conferences, activist networks, a digital media platform, legal battles and researchers that promote his theory of the case — the particularly outlandish conspiracy theory that the election was stolen through a complex, global plot to hack into voting machines. But a New York Times analysis of advertising data, along with interviews with media executives and personalities, reveal that Mr. Lindell’s influence goes beyond funding activism: He is now at the heart of the right-wing media landscape.”

BATTLE FOR THE SENATE

THE SWITCH UP — As J.D. VANCE continues his campaign for Senate in Ohio, he has hewed closely to Trump (so much so that the former president recently called him a kiss-ass). But it wasn’t that long ago when Vance viewed Trump as a dangerous figure in politics. The transformation from centrist to loyalist and Vance’s “raw, combative style” has positioned him with a good chance to make it to Washington. But, Vance’s “remarkable evolution has not gone unnoticed in Middletown, the distressed Rust Belt city where he grew up,” NYT’s Dan Barry writes .

BATTLE FOR THE STATES

CAUGHT IN THE CROSSFIRE — Rep. LEE ZELDIN (R-N.Y.) is running to unseat Democratic New York Gov. KATHY HOCHUL, but he has also latched on to another target in his pursuit of the governor’s mansion: Manhattan D.A. ALVIN BRAGG. Zeldin has pledged that if he is elected, he will remove Bragg from his post “for refusing to enforce the law” and has tied Hochul to Bragg,” NYT’s Jonah Bromwich writes . “But there is little that suggests that Mr. Bragg’s approach to serious crime differs significantly from that of other city prosecutors.”

THE WEST GOES RIGHT — “Oregon Might Elect a Republican Governor for First Time in Four Decades,” by WSJ’s Eliza Collins in Portland: “The last time Oregonians chose a Republican for governor was in 1982, when VICTOR ATIYEH was reelected when RONALD REAGAN was president. Democrats now hold every statewide office in Oregon, and President Biden won the state by 16 percentage points in 2020. But many voters are frustrated with rising crime, entrenched homelessness and public drug use—particularly in Portland, the state’s largest city.”

HOT POLLS

— Connecticut: Democratic Rep. JAHANA HAYES is a point behind Republican GEORGE LOGAN, 48% to 47%, according to an Emerson/WTNH/The Hill poll of the 5th Congressional District.

Maryland: Here’s one blue state where the GOP doesn’t appear to be surging. Democrat WES MOORE leads Republican DAN COX in the gubernatorial race, 58% to 27%, per a Baltimore Sun Media and University of Baltimore poll . And Democratic Rep. ANTHONY BROWN leads Republican MICHAEL PEROUTKA in the state A.G. race, 60% to 28%.

HOT ADS

Via Steve Shepard

New York: GOP Rep. LEE ZELDIN promises to “declare a crime emergency” on his first day as governor, in an ad featuring his wife and twin daughters .

Pennsylvania: The latest ad from the MITCH McCONNELL-aligned American Crossroads calls Democratic Senate candidate JOHN FETTERMAN “reckless and wrong,” with one person calling Fetterman’s pulling a gun on a Black jogger “racist.”

Michigan: MAGA, Inc., the Trump-linked super PAC, is up with its first ad in a state race : A two-fer that encourages voters to “fire” Democratic Gov. GRETCHEN WHITMER and state A.G. DANA NESSEL. … ESAFund is up with a new, Halloween-themed ad saying Democratic candidate for an open House seat in West Michigan, HILLARY SCHOLTEN, “dresses up like a moderate, but has a scary liberal record.”

 

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CONGRESS

DEMS GET THEIR KNIVES OUT — Rep. PRAMILA JAYAPAL (D-Wash.) is at the center of a firestorm this week as Dems drag her over the coals over her botched handling of a letter on Russia’s war in Ukraine that seemed to indicate a shift in posture from the progressive wing of the party.

“The internal uproar has brought back to the surface persistent tensions within the House Democratic caucus at a time when the party is fighting to keep their majority. The letter, several lawmakers and aides said, could undercut Democrats’ argument just two weeks before Election Day that they are the party that would continue to support Ukraine unlike House Republicans, who have signaled they would cut back aid if they gain the majority,” WaPo’s Marianna Sotomayor and Yasmeen Abutaleb report .

“It has also brought into question Jayapal’s leadership ability as she weighs launching a bid challenging Rep. KATHERINE M. CLARK (D-Mass.) if the second position in leadership opens up next term. Dismay and deep frustration was expressed by several lawmakers and aides across the caucus Wednesday, but surprise at Jayapal’s actions were not. Several said Jayapal’s ambition to ascend to higher leadership has often driven her to act unilaterally and insert herself into issues and conversations.”

 

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THE ECONOMY

THE LATEST TEMPERATURE READING — New data released by the Bureau of Economic Analysis this morning found that the economy “posted its first period of positive growth for 2022 in the third quarter, at least temporarily easing recession fears,” CNBC’s Jeff Cox writes .

The breakdown: “GDP, a sum of all the goods and services produced from July through September, increased at a 2.6% annualized pace for the period, according to the advance estimate. That was above the Dow Jones forecast for 2.3%. That reading follows consecutive negative quarters to start the year, meeting a commonly accepted definition of recession, though the National Bureau of Economic Research is generally considered the arbiter of downturns and expansions.”

HOT JOB, from today’s Daybook: “International Economist” in the office of President JOE BIDEN

MEGATREND — “Mortgage rates rise above 7 percent as Fed scrambles to slow economy,” by WaPo’s Rachel Siegel and Kathy Orton

THE GLOBAL VIEW — “A Rising Dollar Is Hurting Other Currencies. Central Banks Are Stepping In,” by NYT’s Joe Rennison and Jeanna Smialek: “Part of the impact of the Fed’s moves on other regions is economic. A weaker currency means that it costs more for a country to import food, energy and other goods. That adds to domestic inflation, hurts households and could contribute to a global downturn.”

 

LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today .

 
 

WAR IN UKRAINE

THE VIEW FROM MOSCOW — “Putin Wants to Divide Ukrainians. Mykolaiv Is a Test Case,” by NYT’s Andrew Kramer

WORD OF WARNING — “Russia warns West: We can target your commercial satellites,” by Reuters: “A senior Russian foreign ministry official said that commercial satellites from the United States and its allies could become legitimate targets for Russia if they were involved in the war in Ukraine.”

AMERICA AND THE WORLD

CLIMATE FILES — “U.S. Emissions Set to Decline but Global Climate Pledges Fall Short of Goals, U.N. Says,” by WSJ’s Eric Niiler: “The gap between cuts pledged by 166 nations, including the U.S., and their current emissions puts the world on track to warm 2.5 degrees Celsius, or 4.5 degrees Fahrenheit, by the end of the century, a U.N. report released on Thursday estimated.”

DANCE OF THE SUPERPOWERS — “Three Arrests, Two Superpowers and a Secret Prisoner Swap,” by WSJ’s Drew Hinshaw, Joe Parkinson and Aruna Viswanatha: “Detention of a Chinese executive to stand trial in the U.S. provoked a standoff between global rivals and opened an acrimonious new era.”

AP INVESTIGATION — “FBI probing ex-CIA officer’s spying for World Cup host Qatar,” by Alan Suderman: “The monthslong FBI probe focuses on whether KEVIN CHALKER’S work for Qatar broke laws related to foreign lobbying, surveillance and exporting sensitive technologies and tradecraft.”

PLAYBOOKERS

WELCOME TO THE WORLD — Jett Thompson , deputy chief of staff and legislative director for Rep. Stephanie Bice (R-Okla.), and Kimberly Thompson, a school meals program specialist with the D.C. government, recently welcomed Annabel Ruth Thompson. She came in at 8 lbs, 1 oz and joins big brother John. Pic Another pic

BONUS BIRTHDAY: Protocol's Damien Amey

 

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