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David Meltzer went from CEO of the company that made the world’s first smartphone, to running one of the most recognized sports agencies managing over $2 billion in contracts, to nearly losing it all. He rebooted and built Sports 1 Marketing into one of the fastest growing sports and entertainment marketing agencies in the world.

Related: Pro Football Hall of Famer, Warren Moon

Watch more videos from Business Burgers on their YouTube channel.

Entrepreneur Network is a premium video network providing entertainment, education and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

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Business Burgers

All New Podcast/Video Series – Co-hosted by Scott Duffy and Alan Taylor, the show travels across the United States in search of the best burger in America, and a side of tasty business advice. Business, sports, celebrities, and food c…

Video: Rankings, Reviews, Keywords — E-Commerce Advice for Food & Beverage

Rankings, reviews, keywords. Even before Friday’s announcement of Amazon’s massive, $13.7 billion acquisition of Whole Foods Markets, the online behemoth was already causing change in the incubation and sale of entrepreneurial brands.

A panel early on during last week’s BevNET Live Summer 2017 in Manhattan discussed e-marketing and a lot of the time was spent on the Amazon effect: In terms of setting up direct-to-consumer marketplaces, creating “full basket” solutions with Amazon Fresh, and simply providing a place for customers to search by keywords for specific products, the e-commerce titan has begun to exert an outsized influence in the ways consumers shop.

Brands on Amazon at times are “transcending the distribution channel” in the way they are sold directly to consumers via those keywords, noted Profitero’s Keith Anderson, while some brands are simply starting businesses based on those top-searched keywords.

We can’t tell you that the following video is going to supply entrepreneurs with all of the answers to questions about how things will shake out for them with Amazon folding Whole Foods into its family. But our panelists did discuss a lot of the ways companies should be thinking about a strategy that incorporates Amazon and other e-commerce plays as they seek to grow — and that’s a discussion that has become doubly relevant in light of this most recent development.

So how should you plan for e-commerce? What are the ways you can “heavy up” for Amazon? Start thinking about it by watching the following panel, called “E-Commerce for Beverage Entrepreneurs: What Really Matters.”

Omnichannel TechBytes with Jeff Smith, CMO at LiveRamp

Earlier this month, MarTech Series covered  LiveRamp unveiling their People-Based Search for fully-personalized omnichannel marketing. The leading provider of omnichannel identity resolution added targeting for people-based search to its IdentityLink™ platform.  Jeff Smith, CMO of LiveRamp,  explained to us the need to bring people-based targeting to search and identified the common challenges that omnichannel marketers face in audience targeting.

MTS: “Consumer intent is inherently expressed in the search.” How does the new People-based Search measure or identify the consumer intent?

Jeff Smith (Jeff): Consumer intent has always been expressed in a search query; for example, if I search for car reviews, you might assume I am in the market to buy a car, and if you are an automaker, having no additional context on who is performing the search, you would likely bid a very high amount to serve an ad to me. This has always been the case with search channels.

Bringing people based targeting to search, however, allows you to recognize if the consumer performing the search is a person you already know something about. If they are a customer of yours and you have information about them in your offline CRM system and apply that information in deciding what action to take when they do perform a search. Go back to the previous example.

via LiveRamp

Google Customer Match with IdentityLink

If you not only knew that I searched for car reviews but also knew I recently bought a car from you/am already a customer of yours (data that is in your offline CRM system), you may choose to do the exact opposite thing, and not serve an ad to me to buy a car as it would likely be wasted expenditure. Or choose to serve an ad but change the content (so instead of an ad enticing me to buy a new car, serve an ad offering a maintenance promotion). The key is that you were able to use IdentityLink to combine data from the offline and digital worlds to make a more contextually relevant decision.

Say you’re an international hotel brand and a very loyal customer, who prefers one specific brand within your hotel group searches for “Hotels in Chicago”. Without people-based search, the hotel brand’s advertising would respond to the keyword search by showing every brand within their group. But, by combining known preferences that the consumer has expressed to you, with the immediacy of the search for a specific city, the advertiser can customize the ads even further by offering rates/ads for the hotel chain that the searcher prefers.

The same can be said of a retailer who knows, based on loyalty cards or purchase history, that a customer prefers a specific brand of coffee, clothing, or other types of products.

MTS: What are the common challenges that omnichannel marketers face in audience targeting?

Jeff: There are two primary challenges that marketers face in targeting:

A] Consistency

When a customer tries to target a specific segment, they do so depending on a variety of attributes, those attributes can vary from CRM data, purchase history, a mobile or Cookie ID or anonymous browsing data, all of which is hard to tie together in a consistent way. Let’s say you have one segment that you’re trying to reach across video, display, and search. Your video targets may be matched to a mobile ID, your display matched to a Cookie ID and search tied to keywords. How do you know who within your segment has been matched and if you’ve reached all of them across all your channels? That’s where an identity resolution platform like IdentityLink can help. Since we focus on tying all of those IDs together to one, privacy safe IdentityLink, we’re able to more consistently match across all your advertising channels.

B] Efficiency

Efficiency is the other big factor in omnichannel marketing. There are often large teams, within marketing departments dedicated to a specific channel. They are focused on uploading lists to each platform and often have to upload different lists manually to each channel. Google gets one list, the DMP gets another, the DSP gets another. Each list has to be built, and rebuilt over and over again, by different teams in different platforms. Imagine if all of the data could be sent at one time to all of those destinations! Marketers would have time to do more testing, measurement, and iteration.

MTS: Marketers using Google Customer Match get special added benefits. What are these benefits, and what do other marketers need to do to enjoy the same features?

Jeff: The benefits can be seen in the illustration we created. IdentityLink’s data append feature can help you connect more of your CRM data to GCM (up to six times more), and apply more context to your interaction with the consumer – this can improve click through rates by 2-3X. We are excited to see what the future of people-based search could be and are actively looking to work with the other search vendors on similar functionality.

MTS:  LiveRamp’s has committed to privacy and security as an Acxiom SafeHaven® environment. What does this have to do with data fraud and bot identification management?

Jeff:  This is focused on consumer privacy. We take privacy and safety of our customer’s data seriously. As a SafeHaven, we employ technical, operational, and personnel controls designed to ensure the ethical use of data and closely monitor data governance and consumer privacy legislation as it develops at the local, state, and national levels, adapting our privacy policy to ensure compliance.

MTS: How do you see AI within LiveRamp helping marketers in generating more ROI from their campaign investments?

Jeff: As more and more digital channels proliferate, with complexities, like data hygiene and identifiers, introduced at the data layer, and the real-time desires of consumers, machine learning, and artificial intelligence are going to be necessary to help marketers adapt. Campaign automation (from programmatic advertising, to nurture campaigns and beyond) are really the first step.

Marketers are going to have to think more and more strategically about all the different paths a customer can take during their relationship with a brand, and be able to build programs to respond as quickly as possible. In the front end, I’m really looking forward to a future where smart devices respond to a consumer’s needs and allow advertisers to personalize an experience in real time.

MTS: How do you see marketers shifting their focus from omnichannel campaigns to Mobile- Only and Video Marketing by 2020?

Jeff: The opposite is actually happening – marketers are shifting their focus from the single channel only campaigns (like mobile and video) to campaigns that are coordinated across all of the channels in which consumers ingest media. Note that consumers don’t think about what “channel” they are in when interacting with media or a brand. Marketers, however, have had to think about channels because without identity resolution there are technical barriers that prevent seamless experiences across channels. Even when marketers are operating in individual channels, they still need to bring as much context to bear as possible to each consumer interaction, which requires applying what you have learned from interactions in other channels – which requires omnichannel identity resolution.

Marketers, however, have had to think about channels because without identity resolution there are technical barriers that prevent seamless experiences across channels. Even when marketers are operating in individual channels, they still need to bring as much context to bear as possible to each consumer interaction, which requires applying what you have learned from interactions in other channels – which requires omnichannel identity resolution.

MTS: How do you see campaign automation evolving in next 3-5 years? Will SMBs and start-ups be able to adopt the new technologies with their limited budgets?

Jeff: Consumer habits will likely dictate how campaign automation evolves in the next few years. Consumers are accustomed to disjointed marketing experiences and irrelevant advertising, but they appreciate and respond positively to interactions that feel more integrated. In fact, they’re demanding those types of experiences now. As such, marketing teams and technologies are going to follow suit. Technically, it’s hard to connect all the different channels, devices, and IDs today, so identity resolution will play a bigger role in MarTech in the coming years.

Best-in- Class vendors will need to focus on improving their integrations across partners, while closed- stack vendors will need to focus on stronger integrations across their product suites. This will allow marketers to ensure consistency of messaging across the various touch points, in a way that makes it far quicker and easier to implement than what’s possible right now.

As for marketing teams, while the customer journey has been front and center for a while, LiveRamp is still set up to focus on just acquisition or retention or a specific channel. In the next 3-5 years, our goal is to evolve and truly address a consumer’s needs from a holistic perspective. We need to be able to adapt more quickly and take something that’s working here and figure out how to make it work over there in real time.

In some ways, SMBs and start-ups often find themselves in a better situation to adopt new technologies and new ways of doing things, because they don’t have a choice. Without the headcount to do something the way it’s always been done, you’re more likely to look to offload work in an automated way, freeing up your focus for more important projects. There are some really innovative B2C companies, BirchBox and Blue Apron come to mind, that are pushing the limits on how to grow using both new technologies and limited budgets. It’s all about how you prioritize.

MTSThank you, Jeff, for answering all our questions. We look forward to having you very soon at MarTech Series for more insights.

Stay tuned for more business insights on video ad tech, programmatic. social media, marketing automation and AI technology market.

To participate in our Tech Bytes program, email us at news@martechseries.com




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Uber Founder Travis Kalanick Resigns as CEO

“I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight,” Mr. Kalanick said in a statement.

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Uber’s board said in a statement that Mr. Kalanick had “always put Uber first” and that his stepping down as chief executive would give the company “room to fully embrace this new chapter in Uber’s history.” An Uber spokesman declined to comment further.

The move caps months of questions over the leadership of Uber, which has become a prime example of Silicon Valley start-up culture gone awry. The company has been exposed this year as having a workplace culture that included sexual harassment and discrimination, and it has pushed the envelope in dealing with law enforcement and even partners. That tone was set by Mr. Kalanick, who has aggressively turned the company into the world’s dominant ride-hailing service and upended the transportation industry around the globe.

Mr. Kalanick’s troubles began earlier this year after a former Uber engineer detailed what she said was sexual harassment at the company, opening the floodgates for more complaints and spurring internal investigations. In addition, Uber has been dealing with an intellectual property lawsuit from Waymo, the self-driving car business that operates under Google’s parent company, and a federal inquiry into a software tool that Uber used to sidestep some law enforcement.

Uber has been trying to move past its difficult history, which has grown inextricably tied to Mr. Kalanick. In recent months, Uber has fired more than 20 employees after an investigation into the company’s culture, embarked on major changes to professionalize its workplace, and is searching for new executives including a chief operating officer.

Mr. Kalanick last week said he would take an indefinite leave of absence from Uber, partly to work on himself and to grieve for his mother, who died last month in a boating accident. He said Uber’s day-to-day management would fall to a committee of more than 10 executives.

How Uber’s Brash Approach Is Beginning to Backfire

The company, with its co-founder Travis Kalanick, is known for its brash, aggressive approach. That approach has taken a toll.


But the shareholder letter indicated that his taking time off was not enough for some investors who have pumped millions of dollars into the ride-hailing company, which has seen its valuation swell to nearly $70 billion. For them, Mr. Kalanick had to go.

The five shareholders who demanded Mr. Kalanick’s resignation include some of the technology industry’s most prestigious venture capital firms, which invested in Uber at an early stage of the company’s life, as well as a mutual fund firm. Apart from Benchmark, they are First Round Capital, Lowercase Capital, Menlo Ventures and Fidelity Investments, which together own more than a quarter of Uber’s stock. Because some of the investors hold a type of stock that endows them with an outsize number of votes, they have about 40 percent of Uber’s voting power.

Benchmark, Lowercase, First Round, Menlo Ventures and Fidelity did not respond to requests for comment.

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But on Twitter, Mr. Gurley of Benchmark, one of the earliest supporters of Mr. Kalanick at Uber, said of the executive, “There will be many pages in the history books devoted to @travisk — very few entrepreneurs have had such a lasting impact on the world.”

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Mr. Kalanick’s resignation opens questions of who may take over Uber, especially since the company has been so molded in his image. And Mr. Kalanick will probably remain a presence there since he still retains control of a majority of Uber’s voting shares.

Taking a start-up chief executive to task so publicly is relatively unusual in Silicon Valley, where investors often praise entrepreneurs and their aggressiveness, especially if their companies are growing fast. It is only when those start-ups are in a precarious position or are declining that shareholders move to protect their investment.

In the case of Uber — one of the most highly valued private companies in the world — investors could lose billions of dollars if the company were to be marked down in valuation.

Uber, which has raised more than $14 billion from investors since its founding in 2009, has a wide base of shareholders apart from the ones who signed the letter. Uber’s investors also include TPG Capital, the Public Investment Fund of Saudi Arabia, mutual fund giants like BlackRock and wealthy clients of firms like Morgan Stanley and Goldman Sachs.

In the letter, in addition to Mr. Kalanick’s immediate resignation, the five shareholders asked for improved oversight of the company’s board by filling two of three empty board seats with “truly independent directors.” They also demanded that Mr. Kalanick support a board-led search committee for a new chief executive and that Uber immediately hire an experienced chief financial officer.

Mr. Kalanick is stepping down as Uber works to improve its relationships with some of its constituencies. Earlier Tuesday, the company emailed its drivers, who work as contractors, to let them know they would soon be allowed to take tips, which drivers had not been able to accept previously. The tipping change was among several new initiatives announced for drivers.

“Over the next 180 days we are committed to making driving with Uber better than ever,” the company said. “We know there’s a long road ahead, but we won’t stop until we get there.”

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Saudi Arabia’s Mohammed bin Salman elevated to Crown Prince: SPA


DUBAI Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman was elevated to crown prince on Wednesday, replacing his cousin in a sudden announcement that confirms King Salman’s 31-year-old son as next ruler of the world’s leading oil exporter.

A royal decree said Saudi Crown Prince Mohammed bin Nayef, a counter-terrorism chief admired in Washington for putting down an al Qaeda campaign of bombings in 2003-06, was relieved of all positions and replaced by Mohammed bin Salman who becomes deputy prime minister and retains defense, oil and other portfolios.

The decision by King Salman to promote his son and consolidate his power was endorsed by 31 out of 34 members of the Allegiance Council, made up of senior members of the ruling Al Saud family, the royal decree said.

Analysts said the change empowers Prince Mohammed bin Salman to move faster with his plan to reduce the kingdom’s reliance on oil, which includes the partial privatization of state oil company Aramco.

« The change is a huge boost to the economic reform program, Vision 2030 and the whole paradigm shift that Saudi Arabia is traversing and Prince Mohammed bin Salman (MbS) is its architect, » said John Sfakianakis, director of the Riyadh-based Gulf Research Center.

« It’s important that MbS see through his vision and strategy being implemented and sustained, » he said.

Bernard Haykel, professor of Near Eastern Studies at Princeton, said the king’s decision was aimed at setting the line of succession clearly to avoid a power struggle between his son and Mohammed bin Nayef.

« It’s clearly a transition that has happened smoothly and bloodlessly … There’s going to be much more clarity on the issue of succession now. There was a bit of messiness before with everyone guessing what was going to happen. Now it’s clear, it’s straightforward. That kind of clarity lowers the risk, there’s no question as to who’s going to be in charge… « 

ESCALATING REGIONAL TENSIONS

« Some people were predicting that this would lead to a division in the family and strife and some kind of revolt. I don’t see that happening. »

A senior Saudi official said the decision was taken due to what he called special circumstances presented to the members of the Allegiance Council. He added that Mohammed bin Nayef supported the decision in a letter sent to the king.

Although Mohammed bin Salman’s promotion was expected among close circles it came as a surprise at a time the kingdom is facing escalating tensions with Qatar and Iran and is locked in an air war in Yemen.

The decree said Prince Mohammed bin Nayef, long a favorite of Washington’s for his tough stance against Islamist militancy, is relieved of all positions.

Even as deputy crown prince, Mohammed bin Salman has been responsible for running Saudi Arabia’s war in Yemen, dictating an energy policy with global implications and spearheading plans for the kingdom to build an economic future after oil.

That the royal succession in the world’s top oil exporter is closely scrutinized only makes the rapidity of Mohammed bin Salman’s rise to power, and the speed with which his better known cousins were brushed aside, more astonishing.

The announcement follows 2-1/2 years of already major changes in Saudi Arabia, which stunned allies in 2015 by launching an air war in Yemen, cutting back on lavish subsidies and proposing in 2016 the partial privatization of state oil company Aramco.

Financial analysts said Prince Mohammed’s promotion gave further assurance that key parts of radical reforms to diversify the Saudi economy beyond oil would continue.

« We do not expect to see any major changes to key areas of policy, including economic – Prince Mohammed bin Salman has already been driving the economic agenda and the push to transform and liberalize the economy, » said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

Last year Mohammed bin Salman, or « MBS » as he is widely known, announced sweeping changes aimed at ending the kingdom’s reliance to oil, part of his campaign to tackle systemic challenges that the kingdom has previously failed to address.

    

POWER BEHIND THE THRONE

Until his father Salman bin Abdulaziz Al Saud became Saudi Arabia’s seventh king in January 2015, few people outside the kingdom had ever heard of Prince Mohammed, seen more than two years on as the power behind its throne.

Regarded warily by some Saudis and by many foreigners as an unknown quantity in the Middle East’s traditional status quo power, Prince Mohammed has over the past year set about building his profile with interviews in some Western media.

For many Saudis those changes have become inextricable from the person of Prince Mohammed, whose photographs adorns walls, car windows and advertising hoardings across the country and who has assumed a startling array of powers.

He is Defense Minister, a role that in Saudi Arabia gives its incumbent command of one of the world’s biggest arms budgets and makes him ultimately responsible for Saudi Arabia’s unprecedented military adventure in Yemen.

He also heads the Council for Economic and Development Affairs (CEDA), a group of cabinet ministers who meet weekly and which oversees all elements of policy that touch on the economy or social issues like education, health and housing.

Prince Mohammed chairs the supreme board of Aramco, making him the first member of the ruling family to directly oversee the state oil company, long regarded as the preserve of commoner technocrats.

But perhaps most importantly, he also holds the critical position of gatekeeper to his father, King Salman, who in Saudi Arabia’s absolute monarchy retains the final say in any major decision of state.

Outside Saudi Arabia, that rapid advance and the sudden changes to longstanding policies on regional affairs, energy and its economy have prompted unease, adding an unpredictable edge to a kingdom that allies long regarded as a known quantity.

Inside, they have prompted admiration among many younger Saudis who regard his ascent as evidence that their generation is taking a central place in running a country whose patriarchal traditions have for decades made power the province of the old.

   

(Reporting by Stephen Kalin, William Maclean, Rania El Gamal, Sylvia Westall, Sami Aboudi, Andrew Torchia, Reem Shamseddine; Editing by Samia Nakhoul)

Republican Karen Handel defeats Democrat Jon Ossoff in Georgia’s 6th Congressional District

President Trump’s hopes of steadying his presidency and his agenda on Capitol Hill were given a lift Tuesday when a Republican won a special congressional election in the Atlanta suburbs.

Republican Karen Handel defeated Democrat Jon Ossoff in Georgia’s 6th Congressional District, retaining a seat that has been in GOP hands since 1979 after a grueling, four-month campaign that earned the distinction of being the most expensive House race in history.

Handel won by almost 11,000 votes and by more than four percentage points, and Ossoff failed to reach the 48 percent mark that he topped in the initial round of voting in April.

Handel’s win will bring fresh attention to a beleaguered Democratic Party that has suffered a string of defeats in special elections this year despite an angry and engaged base of voters who dislike Trump.

It may also embolden Republicans in Washington to press ahead on an ambitious policy agenda that has yielded few legislative victories since Trump’s inauguration in January. Most immediately, the election result could bring momentum to Senate Republicans’ efforts this week to craft their version of a major revision to the Affordable Care Act.

“We need to finish the drill on health care,” Handel said during her victory speech here Tuesday. Chants of “Trump! Trump! Trump!” erupted before her.

Handel’s victory, however, revealed as much about Trump’s lingering problems among Republicans as it did the challenges facing Democrats. In a ruby-red district that her Republican predecessor won in November by 23 points, Handel struggled with Trump’s looming presence over the race. She won not with an embrace of the president but by barely mentioning his name.

“You showed the world that in places where no one even thought it was possible to fight, we could fight,” Ossoff, dressed in a black suit and black tie, told supporters Tuesday.

Handel, who will be the first Republican woman elected to Congress from Georgia, repeatedly ducked opportunities to echo Trump’s populist roar and instead presented a classic Republican case to voters, all while deflecting the barrage of questions about Trump’s latest tweets or his handling of investigations into Russian meddling in the 2016 election.

The Republican unease evident in the district could replay across the country next year, when both major parties are bracing for a bruising season of midterm elections at an uncertain national moment .

Back in Washington, party leaders — and Trump — paid close attention to the race. Inside the West Wing, Trump and his advisers were briefed regularly on Handel’s standing in private polls and Republican turnout, according to a White House official. In particular, the official added, strategist Stephen K. Bannon and chief of staff Reince Priebus were involved.

“KAREN HANDEL FOR Congress,” Trump tweeted as day broke Tuesday, touting the Republican candidate and former Georgia secretary of state. “She will fight for lower taxes, great health care strong security — a hard worker who will never give up. VOTE TODAY!”

Handel and Ossoff vied to fill the seat vacated by Tom Price, who held it from 2005 until he joined Trump’s Cabinet this year as health and human services secretary. On April 18, Ossoff had nearly topped the 50 percent threshold that would have given him an outright victory in an 18-candidate primary field. Falling just short, he found himself in a runoff against Handel.

Ossoff, 30, a former congressional staffer, raised more than $23 million, built a devoted grass-roots following and courted Republicans by bemoaning “wasteful” spending.

In another Tuesday tweet, Trump took a swipe at Ossoff’s centrist positioning and dismissed him as a liberal who “wants to raise your taxes to the highest level and is weak on crime and security, doesn’t even live in district.” Ossoff lives just outside the district with his fiancee.

A record turnout was expected Tuesday: About 120,000 people cast early ballots, according to Georgia officials — nearly a quarter of registered voters here.

As Handel’s lead climbed late Tuesday, a senior White House official sent The Washington Post a text message: “They haven’t figured out how to beat Trump.”

For Democrats, Ossoff’s loss was demoralizing, coming after months of bitter infighting in the wake of Trump’s victory.

His defeat is also likely to lead to more criticism from the wing of liberal activists who want a more confrontational style embodied by Sen. Bernie Sanders (I-Vt.). They have already complained about the Democratic Congressional Campaign Committee’s willingness to support a more moderate candidate in Ossoff, while more progressive candidates in special elections in Montana and Kansas this year were left largely in the lurch.

Moreover, Ossoff’s loss raises real concerns about the continued potency of Republican attacks against Democrats by tying them to House Minority Leader Nancy Pelosi (D-Calif.). The anti-Ossoff campaign seemed to veer from issue to issue given the week, but the one constant thread over the last four months has been linking him to Pelosi.

According to one Republican involved in the effort, the Democratic leader had a name identification of 98 percent among voters in the Georgia district, and her disapproval ratings were 35 percentage points higher than her approval numbers.

Still, some Democrats said Ossoff’s competitive bid in Atlanta’s Republican suburbs could be a positive harbinger of next year, when they must win 24 GOP-held seats to reclaim the House majority.

“This is not the outcome any of us were hoping for, but this is the beginning of something much bigger than us,” Ossoff said during his concession speech. “Rather than demonizing each other, we find common ground and move forward.”

Democrats are likely to continue to view districts such as Georgia’s 6th as their roadmap to taking back the House — swing, suburban districts with well-educated populations and also more diverse electorates than in the poorer, rural districts that once served as the party’s foundation.

“We’re still going to be here,” Bill Atherton, 41, who works for a non-profit trying to transition low-income families into self sufficiency and attended Ossoff’s election-night party. “Now we believe we have a strong enough movement, not only to flip this district but inspire others.”

As the national political and media world focused heavily on the Georgia race, an underfunded, overlooked Democrat, Archie Parnell, also a first-time candidate, almost pulled off a huge upset in the South Carolina seat vacated by Mick Mulvaney, Trump’s budget director. Parnell lost by about 2,800 votes, a little more than 3 percentage points, after party leaders decided to devote all their attention in the run-up to Tuesday’s elections to the Ossoff-Handel race.

Of the four special elections prompted by Trump’s Cabinet selections, the DCCC identified the Georgia seat as vulnerable to the sort of political climate they expect to target next year. There are dozens of suburban districts with similar demographic makeup currently held by Republicans.

Despite the contest’s national sheen and implications, many voters here said they made their decision based less on Trump and more on how they view the two candidates, whose salvos have inundated televisions in a clash that has grown bitter and tense.

Jennifer Wilson, 52, a school counselor who went door to door for Ossoff on the eve of the election, said Ossoff’s age, as well as GOP attacks on his residency, were hurdles. “Some people say, ‘Oh, he’s only 30.’ But I tell them that Jon is someone who understands the area,” she said. “He grew up here and wants what they want: to bring high-tech and bio-tech jobs to our community.”

The Ossoff approach was to toe the middle of the road politically. His calls for civility, at a time of a nontraditional brand of politics from Trump, served as an indirect contrast to the president — a polite rebuke while trying not to offend those who voted for him.

“There is a great hunger here in Georgia, across the political spectrum, for leadership that is focused on civility, that is humble, that’s committed to delivering results instead of notching partisan wins or winning the day on Twitter,” he said Monday in an interview.

Handel supporters seemed genuinely puzzled by the attention the 6th District received, given its decades of support for Republican candidates, going back to Newt Gingrich, who began a long stint in 1978 when he won it while Jimmy Carter was in the White House.

Some, including Gingrich, largely rejected the suggestion that the contest was a referendum on Trump’s presidency.

“This is a referendum on if enough money can invent a person to win a special election,” the former House speaker said, taking a swipe at Ossoff as he watched returns on Tuesday. “He also backed off the whole model of a referendum on Trump. He figured out it wasn’t working.”

The national significance of the contest brought forth a flood of advertising and organization. Spending in the race by the campaigns and outside groups topped $50 million. The Congressional Leadership Fund, a super PAC affiliated with House Speaker Paul D. Ryan (R-Wis.), spent more than $7 million on its campaign against Ossoff and launched a field program.

Carolyn D. Meadows, a member of the board of the National Rifle Association, has lived in Cobb County her entire life and has been active in conservative politics since she was a “Goldwater Girl” during the 1964 election.

“No, we’re not a swing state, and we’re not a swing district,” said Meadows, who brought her granddaughter to Handel’s final event.

And on Tuesday, she was proven right, as Handel reasserted the political lines in suburban Atlanta in the age of Trump.

Kane reported from Sandy Springs, Ga., and Viebeck reported from Washington. Michelle Baruchman, Sean Sullivan and Karen Tumulty in Washington contributed to this report.

Britain charges Barclays, ex-bosses over "unlawful" Qatari deal


LONDON Barclays (BARC.L) and four former top executives were charged with fraud on Tuesday over undisclosed payments to Qatari investors as part of a 12 billion pound ($15 billion) emergency fundraising during the financial crisis in 2008.

Britain’s Serious Fraud Office (SFO) charged Barclays Plc, former chief executive John Varley, Roger Jenkins, Tom Kalaris and Richard Boath with conspiracy to commit fraud and unlawful financial assistance in its first criminal prosecution of a bank and senior managers over events during the credit crisis.

Barclays said it was considering its position and awaiting further information about the charges, which follow a five-year inquiry into how it avoided the fate of Lloyds (LLOY.L) and RBS (RBS.L) by averting a state bailout.

The SFO charged Varley, Jenkins, the ex-chairman of its Middle East investment banking arm, Kalaris, a former CEO of the bank’s wealth division and Boath, a former European head of financial institutions, after investigating a two-part fundraising that included a $3 billion loan to Qatar.

A lawyer for Jenkins said he would « vigorously defend » himself, adding his client had received both internal and external legal advice at the time.

Boath said he had no case to answer as he had repeatedly raised concerns about decisions taken by the bank at the time with both senior management and senior lawyers and had been reassured the decisions were lawful.

« The SFO’s decision to charge me is based on a false understanding of my role and the facts. I was not a decision-maker and had no control over what the bank did in 2008, » he said in a statement.

« The evidence I have supplied is very clear: there is no case for me to answer. »

A lawyer representing Varley, who resigned as a Rio Tinto (RIO.L) senior independent director with immediate effect following the SFO charges, declined to comment. A lawyer for Kalaris could not immediately be reached for comment.

Each offence of fraud by false representation carries a maximum jail sentence of 10 years. Barclays faces a fine.

The men have been told to appear before Westminster Magistrates’ Court on July 3.

CHARGED

The case centers on agreements between Barclays and Qatari investors during two fundraisings in June and October 2008.

Qatar Holding, part of the Qatar Investment Authority sovereign wealth fund, and Challenger, an investment vehicle of former Qatari prime minister Sheikh Hamad bin Jassim bin Jabr al-Thani, invested around 5.3 billion pounds in Barclays.

Authorities have examined whether payments from Barclays to Qatar at the same time, such as around 322 million pounds in « advisory services agreements » (ASA), alongside the $3 billion loan, were honest and properly disclosed.

Varley and Jenkins have been charged with conspiracy to commit fraud by false representation during the June 2008 capital raising as well as the November 2008 fundraising. They also face a charge of unlawful financial assistance.

Kalaris and Boath have been charged with conspiracy to commit fraud by false representation during the June capital raising, the SFO said.

Qatar, which is a major UK investor, has not been accused of wrongdoing.

The criminal charge is a reputational blow to Barclays, which is grappling with a string of other legal problems.

In a separate case, it is contesting a $1.0 billion civil lawsuit from businesswoman Amanda Staveley, who arranged an investment in Barclays from Abu Dhabi investors during the financial crisis.

In 2013 the Financial Conduct Authority proposed a 50 million pound fine over how Barclays made disclosures about its dealings with Qatar in an investigation that has been on hold pending the outcome of the SFO’s probe.

« We are pleased that this matter, which led to the stay of our own case, is now in the public domain. We welcome a fair and transparent hearing on the basis of the charges set out today by the SFO, » it said in a statement.

Away from Qatar, Barclays current CEO Jes Staley, who joined the bank in late 2015, is under investigation for attempting to unmask an internal whistleblower.

Qatar, meanwhile, has made a healthy profit from its investment and remains Barclays’ biggest shareholder, with a stake of around six percent, according to Thomson Reuters data.

Barclays shares eased 0.5 percent to 205.6 pence by 1330 GMT, broadly in line with the STOXX European bank index .SX7P.

($1 = 0.7876 pounds)

(Reporting by Kirstin Ridley and Lawrence White, additional reporting by Andrew MacAskill and Tom Finn in Qatar, editing by Susan Fenton and Alexander Smith)

The Finance 202: Finance industry favors Handel in Georgia’s special election today

THE TICKER

Republican candidate Karen Handel and Democratic candidate Jon Ossoff exchange words moments before Georgia’s 6th Congressional District special election debate on June 6, 2017. The race will be decided today and will have national consequences. (REUTERS/Chris Aluka Berry)

All eyes are on the northern Atlanta suburbs today as voters in Georgia’s 6th Congressional district decide a nip-and-tuck race that’s shattered records for the most expensive in U.S. history. Finance industry interests helped tip those scales past $50 million, with the industry demonstrating a clear preference for Republican Karen Handel, a former Georgia secretary of state facing off against Democrat Jon Ossoff, a 30-year-old first-time candidate. 

That appears to have little to do with where the candidates stand on financial regulation: If the subject has even surfaced in the race, I couldn’t find evidence of it. Instead, the special election to replace Tom Price, now serving as secretary of Health and Human Services, has attracted national attention and wads of outside spending since becoming a referendum of sorts on President Trump’s broader agenda. 

A loss by Handel in a district that Price carried by 23 points just seven months ago could sever Trump’s already-fragile grip on his Republican foot-soldiers in Congress, further clouding prospects for a tax overhaul and the rest of his agenda. “We’ll all likely assume that there will be no legislative action for the rest of this Congress,” one bank executive tells me. “The president already lacks a mandate for anyone to follow his lead. But if we lose Georgia, he’ll have no ability to command votes.”

Trump himself nodded to the race’s significance for his standing in a series of tweets, the latest of which was early Tuesday morning:

The size of Wall Street’s investment in the race is tough to pinpoint. That’s in part because only a fraction of the spending for Handel has come from the hard dollars she’s raised for her official campaign account. Instead, super PACs and other outside groups have picked up the tab for most of it, more than $18 million. But a scan of federal election reports shows Handel has gathered backing in the last several weeks from an array of financial institutions and their trade groups. Among those that cut checks: the American Bankers Association, the National Association of Mutual Insurance Companies, Regions Financial, SunTrust Bank, and Transamerica. 

It was not immediately clear why these groups favored Handel, but the giving would be consistent with business interests’ desire to keep Republicans in power and to press their tax-cutting, deregulatory agenda. A search of campaign finance data also revealed that Handel also got contributions from the political action committees of General Electric, General Dynamics, Caterpillar, FedEx, KPMG, Koch Industries, Marathon Oil, Pfizer, and Coca-Cola.

As the race has worn on, Ossoff has presented more as a conciliator and less as an anti-Trump agitator. That, and the wealthy, suburban profile of the district, suggest if successful he’d be a good fit with the New Democrats, who favor a lighter touch with the industry. But while the Democrat has attracted no organized support from financial interests, New York City itself has been a rich vein of the smaller-dollar contributions that propelled his bid. Indeed, two of the top five most generous zip codes to his campaign sit on Manhattan’s Upper West Side, one of the most liberal warrens in the country. 

Finally, Ossoff is not even one degree removed from Kevin Bacon — the actor donated $1,000 to the Democrat on June 11.
 

Senate Majority Leader Mitch McConnell (R-Ky.). (Zach Gibson/Getty Images)

Most immediately, the very public process playing out in Georgia could go a long way toward determining the fate of what has been an unusually private one up on Capitol Hill: The effort by Senate Republican leaders and some handpicked lieutenants to craft a health-care overhaul behind closed doors. The House bill they’re trying to match has met with resoundingly negative response from voters in Price’s old district. An Atlanta Journal-Constitution poll earlier this month showed only one-in-four respondents approve of that package, and more than 80 percent of them said the issue is top of mind as they make their decision. 
 

House Speaker Paul D. Ryan (R-Wisc.). (AFP PHOTO / Brendan Smialowski)

House Speaker Paul Ryan heads to the National Association of Manufacturers this afternoon to deliver a pitch for a tax code overhaul that’s lately been struggling (read my write up about why here). According to Ryan’s office, he won’t “litigate the issues currently being resolved between the House, Senate, and administration, but he will describe the important components of any reform.”

Those include making sure the package is permanent; moving to a territorial system, and fixing the incentive for American companies to move abroad. Notably on the last point, though, the speaker will acknowledge “that the particular mechanism must be sorted out with the administration” — a signal he’s not wedded to the border adjustment tax his original blueprint championed. Here’s a sneak peek of the speech, which the speaker will give at 12:45 at the Grand Hyatt at 1000 H St., NW. Watch the livestream here:

« We are actually unique in the world in the way we discourage capital from coming back to America and how we incentivize off-shoring jobs. This is not the kind of exceptionalism we should aspire to…We must think differently, so that once again we make things here and export them around the world…
 
We are going to get this done in 2017. We need to get this done in 2017. We cannot let this once-in-a-generation moment slip  . . . Transformational tax reform can be done, and we are moving forward. Full speed ahead.”

— The administration, for its part, hasn’t been very specific about what it would like a tax overhaul to look like. But Trump officials have consistently advocated scrapping the deduction for state and local taxes. Now, according to the Wall Street Journal, seven House Republicans from blue states that’d be hit particularly hard by that repeal are joining with dozens of Democratic colleagues to oppose the plan. The provision would generate more than $1 trillion over a decade that could go to lowering rates. It would also prove painful for taxpayers in California, New Jersey, New York, all states with healthy Republican delegations. 

Goldman Sachs CEO Lloyd Blankfein. 

— Goldman Sachs CEO Lloyd Blankfein weighed in on the state of play in Washington in a Monday interview with CNBC’s Jim Cramer.

On how the Trump administration is doing so far:

You know, I can’t say that I’m on all fours in line with the administration, you know, across the board… But as far as the economy’s going, as far as market’s are going– they represented stimulus– in the form of lower taxes. Spending on infrastructure. Taking away, maybe, some of the layers and layers and layers and redundant regulations. And that’s basically good, certainly good for the market. But generally I think good for the economy.

On the market’s performance relative to expectations for action from Washington: 

I’d say the market now is not what he wants to do, but whether he’ll be effective in accomplishing it…The market was discounting, in terms of the alternative to Trump, was discounting higher taxes, potentially more regulation… So already there had to be an adjustment just to get back to neutral. And then, of course, the market is he won’t accomplish very much versus he might accomplish a lot. And it’s somewhere in between. And that’s the variability in the market.

On why he’s tweeting, including criticism of the president: 

This is how I think of it: I don’t use that platform for Lloyd Blankfein’s personal point of view, because I know I’m interesting to people because my role at Goldman…  And the reason why I do it, it has to fall in my mind, in one of a couple of categories. Either it’s something that is kind of in our wheelhouse of expertise, like for – so I comment that it would be very, very bad to let U.S. government default… The other thing I’ll comment on is when things really affect the ability of our people to be who they are and to do their job and to be effective as professionals. And that’s got the LGBT, the immigrant ban, so that people couldn’t move around with their spouses when they have had a passport for another country. So I commented on those issues because, really, I kind of have to be the champion of our people. And I owe it, I kind of owe it to the body politic to comment where I have expertise.

On talking to Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn, his former Goldman colleagues, now that they’ve joined the administration: 

Well, the fact is, and it’s sad for me, in a way, that I talk to them – barely talk to them. Talk to them a lot less. And look, you’re a little bit sensitive to not wanting to go – and, again, the fact of the matter is I always, in my – anybody in my job would always talk from time to time to the Treasury secretary, the national economic advisor. We’re one of the biggest underwriters of government debt. So of course you would. But I’m a little, you know, you get apprehensive about it. You know, this is a kind of a punishing for us.

 

Democrat Archie Parnell faces Republican Ralph Norman today in the special election to fill the House seat for South Carolina’s 5th congressional district.

Elsewhere, two other Goldman alums, both Democrats, are running for office to oppose Trump. Archie Parnell, the firm’s former global head of tax policy, is trailing Republican Ralph Norman in a special election that voters in South Carolina’s 5th congressional district will decide today. But Phil Murphy, the Democratic nominee for New Jersey governor, is in strong position to replace outgoing Gov. Chris Christie, Bloomberg’s Max Abelson reports

David Malpass. (Bloomberg)

The Senate today will take a half-step toward stocking the senior ranks of a still largely leaderless Treasury Department. The chamber is set to votes to end debate on the nomination of Sigal Mandelker, who’s nominated to serve as under secretary for terrorism and financial crimes. And later this week, it’s expected to do the same for Marshall Billingslea, up for assistant secretary for terrorist financing. But a clutch of top Treasury nominees likewise ready for floor action remain stuck in limbo, as Democrats slow-walk otherwise uncontroversial picks in protest of the GOP’s closed-door approach to health care. They are: David Malpass, tapped to be undersecretary for international affairs; Andrew Maloney, assistant secretary for legislative affairs; Brent McIntosh, general counsel; and Heath Tarbert, assistant secretary for international markets and development. 

One source close to the process tells me — given the backlog across the executive branch, the Senate’s pace, and the days left in session — it could be September before these officials are in place. That’s unwelcome news for a department trying to juggle a tax-code revamp, a debt-ceiling hike, and a financial-regulatory overhaul, among other priorities.

Former National Security Adviser Michael Flynn. (AP Photo/Carolyn Kaster)

SCANDAL WATCH: House Democrats want answers, in the form of details and documents, from former National Security Adviser Mike Flynn about two trips he took to the Middle East in 2015 they say he failed to disclose on security forms, my colleague Karoun Demirjian reports.

This sounds bad: « According to the ranking Democrats on the House Oversight and House Foreign Affairs committees — Elijah E. Cummings (Md.) and Eliot L. Engel (N.Y.), respectively — Flynn’s security forms and interviews revealed a previously unreported, six-day trip he made to Saudi Arabia in October 2015, in which he claimed to have stayed at a hotel that does not appear to exist, have traveled with a friend who was never named, and have spoken at a conference that none of his handling bureaus were aware of. »

Ryan speaks during his weekly press conference. (REUTERS/Yuri Gripas)

Today

  • House Speaker Paul D. Ryan is set to deliver a major speech on tax reform at the National Association of Manufacturers summit and will answer questions following his address. Vice President Pence is also scheduled to speak today and House Majority Leader Kevin McCarthy will speak at the summit on Wednesday. 
  • The Brookings Institution is holding an event on “why economic policy so often so often comes up short » with former Rep. Barney Frank (D-Mass.)

Coming Up

  • The Ninth Annual Congressional Women’s Softball Game will take place on Wednesday.
  • The Senate Finance Committee will hold a hearing on Wednesday with U.S. Trade Representative Robert Lighthizer on the trade policy agenda and the 2018 budget request.

  • The House Small Business Committee will hold a hearing on Wednesday on the trade promotion coordinating committee.                                                           

  • The Financial Services Roundtable is holding a panel discussion on Wednesday that includes Rep. Blaine Luetkemeyer (R-Mo.) on what to expect from the Trump administration and congress.

  • The IRS and Urban-Brookings Tax Policy will host a joint research conference on Wednesday.

  • The House Appropriations’ Subcommittee on Financial Services and General Government will hold a budget hearing with OMB Director Mick Mulvaney on Wednesday.
  • The Senate Appropriations Subcommittee on the Legislative Branch will hold a hearing on the budget requests for the Government Accountability Office and the Congressional Budget Office on Wednesday.
  • House Financial Services Committee will continue marking up a bill on Wednesday to reauthorize the National Flood Insurance Program.
  • The Senate Committee on Banking, Housing and Urban Affairs will have a hearing on “Fostering Economic Growth: Regulator Perspective” on Thursday.
  • The House Ways and Means Committee will hold a hearing on US trade policy agenda with USTR Lighthizer on Thursday.
  • The SEC’s Investor Advisory Committee will hold a meeting on Thursday.
  • The Senate Committee on Agriculture, Nutrition and Forestry will hold a hearing on the nomination of  J. Christopher Giancarlo to be chairman of the Commodity Futures Trading Commission on Thursday.

  • The American Banking Association will hold a forum on payments on Thursday with remarks from Rep. Randy Hultgren (R-Il.), who co-chairs the House Fintech and Payments caucus.

  • The Global Business Dialogue will host a discussion on trade with North America and with the European Union on Friday.

Tom Toles: « The Republican health-care bill is currently listed in ‘undead’ condition: »

Watch Jared Kushner’s first public remarks during « Technology Week » at the White House:

Comedy Central creates a temporary exhibit dedicated to President Trump’s tweets:

Watch Stephen Colbert show you what it will be like when Amazon takes over Whole Foods:

Otto Warmbier’s Death Dims Chances of Improved US Relations With North Korea

Jae H. Ku, director of the U.S.-Korea Institute at the Johns Hopkins School of Advanced International Studies, agreed that moves toward diplomacy would be delayed. “I think it’s going to be slowed down. There is going to be a lot of anger and venting of frustrations,” he said.

Video

Otto Warmbier Dies Days After Release From North Korea

Mr. Warmbier, the U.S. student held by North Korea for 17 months, was released in a coma to the United States on June 13. He died on June 19. He was 22 years old.


By BARBARA MARCOLINI and CHRIS CIRILLO on Publish Date June 19, 2017.


Photo by Kim Kwang Hyon/Associated Press.

Watch in Times Video »

But other analysts said that however horrific the case might be, the Trump administration was unlikely to let it upset the momentum toward dialogue it has built in recent months. They said that Mr. Yun’s trip was the first fruit of those efforts and that North Korea may have freed Mr. Warmbier to open up space for diplomacy with Washington, even if they anticipated the anger that his condition would provoke in the United States.

A statement on Monday from Mr. Trump about Mr. Warmbier condemned the North for its “brutality,” but he and Secretary of State Rex W. Tillerson both stopped short of announcing fresh sanctions in response.

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Mr. Warmbier was visiting North Korea as part of a tour group when he was detained at the Pyongyang airport in January 2016. Two months later, he was sentenced to 15 years of hard labor for the “hostile act” of trying to steal a propaganda poster off the wall of his hotel.

In a series of low-key communications with the North Koreans in recent months, the Trump administration pushed for the release of Mr. Warmbier and the three other Americans as a first step toward improving ties, according to South Korean officials and others familiar with the process, who spoke on the condition of anonymity because of the sensitivity of the matter.

When Mr. Yun held a secret meeting with Choe Son-hui, a senior negotiator from the North Korean Foreign Ministry, in Oslo last month, the North Koreans agreed to look into the matter, these people said. But this month, the North Koreans came back with shocking news: They said Mr. Warmbier had been in a coma for more than a year and told the Americans to take him home.

North Korea has said it released Mr. Warmbier on “humanitarian grounds” but did not explain his medical condition. It has told American officials that Mr. Warmbier fell into a coma after contracting botulism, according to his family.

Photo

The Yanggakdo International Hotel in Pyongyang, where Mr. Warmbier was said to have removed a poster from staff quarters. The tour agency that took him to Pyongyang said this week that it would stop taking Americans to North Korea.

Credit
Ed Jones/Agence France-Presse — Getty Images

American doctors found “extensive” brain damage but could not say what had caused the injury. They found no evidence of botulism, or that Mr. Warmbier had been beaten, as one American official had asserted.

“Perhaps his condition deteriorated and the authorities decided it was better to release him in a coma than as a corpse,” said John Delury, a North Korea expert at Yonsei University in Seoul. “North Koreans might have feelers out to see if there is a deal to be made with the Trump administration, and releasing Mr. Warmbier is a way to move that process along, while also removing what could be an obstacle down the road.”

Mr. Warmbier’s death comes at a delicate time in international diplomacy surrounding North Korea. Senior Chinese and American officials are due to meet in Washington this week, and United States officials planned to press their counterparts to do more to rein in Pyongyang’s nuclear pursuits.

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China, North Korea’s main ally, is a strong advocate for negotiations over the North’s nuclear program, and Mr. Warmbier’s death seemed unlikely to change that. At a daily news briefing in Beijing, a Foreign Ministry spokesman, Geng Shuang, called the death “really a tragedy” but stopped short of reprimanding North Korea for its treatment of Mr. Warmbier.

Shi Yinhong, a professor of international relations at Renmin University in Beijing, said that China would not punish North Korea over a human rights issue. “What makes China take steps is a missile or nuclear test, not the death of an American student,” he said.

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Another Chinese analyst, Cheng Xiaohe, an associate professor of international relations at Renmin University, said Mr. Warmbier’s death illustrated the “failure of North Korea’s hostage diplomacy” because it would strengthen “hard-liners” in the Trump administration. He said there could be retaliation from the United States unless Pyongyang took a step like freeing the three remaining American captives.

Photo

Kim Jong-un, the leader of North Korea, inspecting the test-firing of the Pukguksong-2, a ballistic missile, in an undated photograph released by the North’s official Korean Central News Agency in May.

Credit
Agence France-Presse — Getty Images

“I believe the U.S. will not let the issue slip away quietly and will take retaliatory actions soon if North Korea fails to make a conciliatory move regarding the detainees,” he said.

Mr. Warmbier’s case has drawn new attention to the other three American prisoners in North Korea, who Mr. Yun was allowed to meet when he visited Pyongyang.

They are Tony Kim, a volunteer accounting teacher in his mid-50s who had taught at the Pyongyang University of Science and Technology, arrested in April for unknown reasons; Kim Hak-song, who also worked for the same university and did agricultural work, also arrested for unknown reasons, in early May; and Kim Dong-chul, 63, a businessman who has been serving a 10-year sentence of hard labor since April 2016, on spying charges.

Six South Koreans and a Korean-Canadian also remain in North Korean captivity on various criminal charges. South Korea’s president, Moon Jae-in, said on Tuesday that his government would redouble efforts to free the South Koreans from the North. He also sent a message of condolences to the Warmbier family, saying it was “deeply deplorable that North Korea does not respect the universal standards and values of human rights,” according to his office.

Mr. Moon, who took office in May, is more open to dialogue with North Korea than any of his recent predecessors. He is scheduled to meet with Mr. Trump in Washington this month and is expected to urge the president to talk to Pyongyang, saying that sanctions alone have failed to change the North’s behavior. But South Korean officials feared that idea would be a harder sell after Mr. Warmbier’s death.

Still, there was cautious hope here that if North Korea and the United States negotiated the release of the other three Americans, it could eventually pave the way for far more complicated talks over how to contain or dismantle North Korea’s nuclear weapons programs.

“Over the years, South Koreans have grown weary as tensions kept rising and the North’s nuclear program kept advancing,” said Yang Moo-jin, a professor at the University of North Korean Studies in Seoul. “There is a growing sense that we needed change, a breakthrough.”

Rick Gladstone contributed reporting from New York, and Jane Perlez from Beijing.


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PM Lee Hsien Loong’s video apology lauded by PR professionals

News of Prime Minister Lee Hsien Loong’s dispute with his siblings, Lee Wei Ling and Lee Hsien Yang, over the 38 Oxley Road house, has made headlines globally.

The drama first began last Wednesday, 14 June when the siblings released a statement questioning the leadership of their brother. This has now led to a video apology being released by the Prime Minister’s Office (PMO), with PM Lee saying that he “deeply regret[s]” that the family feud has impacted Singapore’s reputation, and its citizens’ confidence in the government.

“These allegations go beyond private and personal matters, and extend to the conduct of my office and the integrity of the government,” he said. Prime Minister Lee added that as much as he would like to put an end to the dispute, the “baseless accusations against the government cannot be left unanswered” and they “will be dealt with openly and refuted”.

The PM said he will deliver a ministerial statement to refute the charges when Parliament sits on 3 July 2017. He urged all members of parliament to “raise questions for themselves and their constituents”, and urged them to “examine the issues thoroughly”.

“I hope that this full, public airing in Parliament will dispel any doubts that have been planted and strengthen confidence in our institutions and our system of government,” he said.

The video statement was also posted on PM Lee’s Facebook page. At the point of writing, it generated over 10,517 shares and over 2,000 comments. Many of these statements from members of the public lauded the PM’s courage, transparency and choice of words.

PR professionals Marketing spoke to also commended the move by the PM. Tarun Deo, managing director Singapore and Southeast Asia at Golin said the PM has done the right thing by being forthcoming.

“In his official capacity as the PM of Singapore, because he clearly feels that this episode is an unsavoury one, apologising is the right thing to do. I will give him high marks for that,” Deo said.

“When you look at the other initiatives he has taken such as lifting the PAP whip, and issuing an official statement on 3 July 2017,  this moves the conversation into transparency,” he added.

“Clearly this issue is something that you would have best like to keep managed within the family and privately, but now that it is out in the open, the PM has done the right thing,” Deo said. But whether or not the apology will win back the public’s trust, Deo said it might be too soon to tell.

But what is clear is that the PM has separated the personal and professional side.

“He is now moving the discussion forward and trying to make it as transparent as possible,” Deo added. Echoing Deo’s sentiment is Wesley Gunter, PR director at Right Hook Communications. He said:

I think the move is a positive step forward in clearing the air, so people can hear his side of the story.

He added that this move, however, may also open up another can of worms, “depending on how people interpret the response given, which may end up with more back and forth between the PM and his siblings”.

And while the apology will win back the public’s trust “to some extent”, Gunter adds that at least the public can be rest assured that PM Lee’s priority is still to focus on the more important issues at hand.

Ginny-Ann Oh, director at Asia PR Werkz said the “delivery of the ministerial statement in Parliament is a good move”.

“It is, in effect, akin to Singaporeans raising questions and seeking clarification and it is important that they are able to do so,” she added.

Oh described the dispute as a “trying time” for Singapore and said, it has in fact, caused a certain impact on “Brand Singapore” and investors’ confidence in the nation. She said:

Leaders must be able to say sorry when it is necessary.