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GOP’s 2 messages from Iran’s alleged Trump hacking

An evening recap of the action on Capitol Hill and preview of the day ahead
Aug 12, 2024 View in browser
 
POLITICO Inside Congress

By Olivia Beavers

With assists from Daniella Diaz and Jordain Carney. 

House Intelligence Committee Chair Mike Turner is seen in an elevator on Capitol Hill.

House Intelligence Committee Chair Mike Turner (R-Ohio) blames the Biden administration for the alleged Iran hacking of the Trump campaign. | Francis Chung/POLITICO

HOUSE GOP REACTS TO MORE FOREIGN INTERFERENCE 

House Republicans have responded to the alleged Iran hacking of the Trump campaign with two main political messages: One, it’s President Joe Biden and Vice President Kamala Harris’ fault and, two, it’s a sign that Donald Trump is the better choice to take on Iran.

If you haven’t read it yet: Our colleague Alex Isenstadt first scooped the major hacking development Sunday night, which comes on top of reports that Iran was hiring assassins to target major political figures like Trump. The FBI is reportedly investigating the alleged hack.

“The Biden-Harris Administration’s weak foreign policy has emboldened our adversaries to attack us domestically. We must be diligent in responding to our adversaries’ attacks upon our democracy,” said Rep. Mike Turner (R-Ohio), House Intelligence Committee Chair.

“Iran will do anything to stop Donald Trump from returning to power and reimposing his sanctions. It’s no wonder it appears the regime is trying to hack the campaign while also trying to recruit assassins to take out Trump,” Rep. Mike Waltz (R-Fla.), a member of the House Intelligence Committee, told us.

It’s the third presidential election in a row with major reports of foreign interference. Iran tried its hand at it in 2020, as well, but the latest alleged attempt reportedly set off more alarm bells due to its increased sophistication.

The more famous example was in 2016, when Russia targeted the campaign of then-Democratic nominee Hillary Clinton. Of course, GOP lawmakers at the time weren’t making the case that it was because Clinton would be more effective against Russia.

But they’re leaning into that narrative on Trump, saying he’s being targeted due to his hawkish tactics in Iran, like pulling out of the Obama administration’s nuclear deal.

And some Republicans are renewing their calls on the Biden administration to do more in implementing the Stop Harboring Iranian Petroleum (SHIP) Act, which would impose additional sanctions on Iran. It passed Congress earlier this year as part of a supplemental spending package.

"For years, both the Obama and Biden Administrations have taken the approach of trying to placate the Ayatollah rather than taking bold action to stand up to Iran,” said Rep. Mike Lawer (R-N.Y.), who authored the SHIP Act. “No more — the Biden-Harris Administration must execute the sanctions in the SHIP Act and Iran-China Energy Sanctions Act immediately. Their strategy of delay and appeasement does not work. Every minute that goes by is another minute that Iran takes in more money to fund terror regionally and around the world."

— Olivia Beavers

 

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GOOD EVENING! Welcome to Inside Congress, the play-by-play guide to all things Capitol Hill, on this August 12, where Hurricane Debby seems to have ushered in some enviable summer weather in D.C. — and we can rarely say that.

GOP INVESTIGATIONS UPDATE

The House is in the middle of a six-week recess, but investigations are still churning behind the scenes.

An Oversight Committee spokesperson told POLITICO the panel is “in communication” with the White House over Chair James Comer’s (R-Ky.) request last month for White House physician Kevin O’Connor to meet with the committee behind closed doors.

“[We are] working to finalize a date for Dr. O’Connor to appear for a transcribed interview,” the spokesperson added.

Reminder: O’Connor jumped onto House Republicans’ radar in the wake of Biden's disastrous debate performance, which fueled new questions about his mental acuity. More than three weeks later, under pressure from his own party, Biden withdrew as the Democratic presidential nominee.

The investigation into Biden’s health is separate from the long-running impeachment inquiry, which top investigators told us recently has largely wrapped. In addition to questions sparked by the debate related to Biden’s age, Republicans have been particularly interested in O’Connor’s ties to Jim Biden, the president’s brother.

And while Republicans are increasingly focusing their attacks on Harris as they shift their November strategy, Comer’s investigation is a sign that they don’t plan to totally drop their Biden inquiries.

— Jordain Carney

 

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GOP PLANS FOR DNC PROTESTS

While Chicago makes its final preparations for the Democratic National Convention next week, GOP campaign operatives are making plans of their own —particularly when it comes to the Democratic schism over the Israel-Hamas war.

It is among the most divisive issues for Democrats right now, and pro-Palestinian demonstrators have vowed to show up in force at the convention.

The National Republican Campaign Committee, which has sought to label Democrats as anti-Israel over remarks on ceasefires or humanitarian aid, is already cooking up a strategy to address that dynamic at the convention. That includes compiling a list of donors they’ve labeled as “anti-Israel” — which include people who have donated to the New Israel Fund or serve in positions surrounding notable anti-Israel protests, like board members at Columbia — who have given to Democratic candidates in the second quarter of this fundraising cycle.

“The anti-Israel radicals defacing public spaces or chanting ‘Go Hamas’ and ‘Death to America’ have the same benefactors as House Democrats’ political campaigns,” NRCC Communications Director Jack Pandol said in a statement. “It’s disgusting — and we will be watching these candidates closely as the same extremists who shut down college campuses head to Chicago for the Democratic National Convention.”

Republicans believe this will be particularly effective against Democrats trying to unseat vulnerable New York GOP members, who represent areas with large Jewish populations.

That includes Democratic candidates like Laura Gillen, who is challenging GOP Rep. Anthony D’Esposito; Mondaire Jones, who is looking for a rematch against Lawler; and Josh Riley, who is trying to unseat Rep. Marc Molinaro.

— Olivia Beavers

HUDDLE HOTDISH

Eyes emoji at the Clyburn family drama in 2020.

Former House member and current Los Angeles Mayor Karen Bass had a wild 48 hours, going from taking the Olympic flag for her city to handling an earthquake that jolted LA on Monday.

QUICK LINKS 

With Tim Walz, Dems see a path to winning back rural districts, from Meredith Lee Hill

Bill Pascrell, 87, hospitalized again, from Joey Fox and David Wildstein at the New Jersey Globe

Democrats test a battleground theory: IVF fears can win against a ‘pro-choice’ Republican from Daniel Han

GOP House candidate was blamed after handgun was stolen from Nick Reisman

Former House speaker to Trump: “Stop question the size of [Harris’] crowds,” from Owen Dahlkamp at CNN

Henry Cuellar Is Fighting for His Political Life. His GOP Opponent Is Fighting for a New One. from Casey Murray and Riley Rogerson at NOTUS

Sasse’s spending spree: Former UF president channeled millions to GOP allies, secretive contracts from Garrett Shanley at the Independent Florida Alligator

TRANSITIONS 

Guy Mentel is now a senior professional staff member on the Senate Foreign Relations Committee. He was previously senior policy adviser to the U.S. ambassador to the Organization of American States, and is a Global Americans alum.

Mitch Erdel is joining Synchrony as VP of government affairs. He was previously senior policy adviser to Rep. Blaine Luetkemeyer (R-Mo.), and is a Deb Fischer and Roy Blunt alum.

Aaron Fritschner is joining the Harris-Walz campaign to work on Virginia comms. He previously was deputy chief of staff for Rep. Don Beyer (D-Va.) and is a Jennifer Wexton and Deborah Ross alum.

TOMORROW IN CONGRESS

The House is in for a pro forma session at 11 a.m.

The Senate is in for a pro forma session at 9:15 a.m.

TUESDAY AROUND THE HILL

Zzz.

Trivia

FRIDAY’S ANSWER: Jonathan Lai was the first to correctly guess that before George W. Bush, William McKinley was the last sitting GOP governor to be elected president.

TODAY’S QUESTION, from Jonathan: Who was the last Democratic president without a law degree?

The first person to correctly guess gets a mention in the next edition of Inside Congress. Send your answers to insidecongress@politico.com.

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♟ Your Q4 Defensive Playbook

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"Tomorrow at 2:00 p.m. EST, I'll reveal the exact trade for you to make."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

With the incredible spike in the VIX last week, we should all take this as a wake-up call that the markets will be increasingly volatile headed into the November election.

So, the time to develop a Q4 defensive playbook is now.

The following are some ideas that can perform well even if we see a selloff, increased volatility, or even a recession:

Defense/Aerospace & Consumer Staple Plays: Our old friend Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) might be back in play headed into Q4 - along with our covid consumer staples winner Clorox Company (CLX).

Biotech: One name that's held up incredibly well in the midst of intense market volatility was our friend AbbVie Inc. (ABBV), which could be a safe-haven headed into Q4.

However, there's another big opportunity that I'd like to share with you right now - and it stems from the latest earnings report from Disney (DIS).

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Disney's Theme Park Weakness Leads to Cruise Ship Strength: For me, the biggest takeaway from the latest Disney earnings was the fact that their theme park division is struggling.

Theme Park perks that were previously free (such as airport shuttles, hotel guest parking, and fast-past line options) are no longer being offered as comped incentives.

Add in higher prices for park admissions, restaurants, and hotels, and consumers are now realizing that cruises are 20% cheaper than theme-park alternatives.

With theme park operational and administrative costs up 37% since 2019 (according to JPMorgan), it seems like a trend shift over to cruises will be here for the immediate future.

With pent-up demand now creating a strong back-log, the outlook for cruise liners appears strong. JPMorgan just upgraded Royal Caribbean (RCL) with a $210 price target, which is +36% above their current price around $154.

But for me, the stronger opportunity comes from Viking (VIK), which is the newly-public, higher-end cruise liner.

Viking Forming 'W' Pattern
 
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YOUR ACTION PLAN

A very noticeable "W" on the daily chart gives me the indication that VIK is now poised to re-test the recent highs around $37.00. To see how we're playing this trade, you're invited to join us in our new live streaming service called Catalyst Cashouts LIVE. Tomorrow at 2 p.m. EST. I'll reveal the exact trade for you to make. Join Cashouts today - and join us to get this new trade tomorrow afternoon!

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Chart

MONDAY MARKET MINUTE

  • The Big Picture: Trading remains choppy amid economic uncertainties, geopolitical risks, and U.S. election concerns. There's tension between hard landing worries after weak jobs data and soft landing hopes with 2% growth forecasts. Investors are closely watching Fed funds futures for implications on potential rate cuts in the coming months. Analysts await upcoming data and Chair Powell's comments at the August 22-24 Jackson Hole symposium for clearer direction.
  • Sector Performance: The IT sector is showing strength, contributing to positive performance in tech-heavy indexes. Consumer staples are experiencing some weakness, particularly affecting more traditional blue-chip stocks. Dip buyers remain active, particularly in technology stocks.
  • Stocks to Watch: Advanced Micro Devices (AMD) could gain from Intel's (INTC) weakness. DoorDash (DASH), Monday's top Nasdaq 100 performer (+3.5%), may see a move to $130. Uber Technologies (UBER) shows global dominance in transportation, with Morgan Stanley upgrading to a $95 target.
  • Economic Calendar: Two crucial economic reports are on deck this week: PPI on Tuesday morning and CPI on Wednesday morning. These reports could significantly impact market sentiment and direction, potentially causing volatility in either direction. Their outcomes may influence Fed policy expectations and, consequently, asset valuations across various sectors.

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U.S. Market has quietly entered the 'Dead Zone' Dear Reader, As the market hits new highs... and the general public is feeling ...