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Power Sheet – May 5, 2016

Today we say goodbye, metaphorically, to London Mayor Boris Johnson. After two terms, he is not running (or standing, as they say over there) for a third in today’s election. He gets scant attention in the U.S., but he deserves Americans’ notice because he has been highly successful on the whole, and fans of Donald Trump may be tempted to compare their candidate to him. There are in fact plenty of similarities, but beware; they’re entirely misleading.

When Johnson announced he wanted to be London’s mayor, virtually no one took him seriously. He was a larger-than-life character who became famous by appearing on TV long before he ran for mayor. He was a frequent guest on many programs, beloved by producers for his distinctive mop of blond hair and his propensity for blurting outrageous views on practically anything he was asked about. Clearly not a serious candidate. But in the Conservative party’s primary election for mayor, he astonished the supposed wise men and women of the political world by winning.

The establishment remained adamantly opposed. Peregrine Worsthorne, a very old-school newspaper editor (with whom I once had tea and toast with anchovy butter at the Garrick Club), said the more Johnson tried to be serious, “the more insincere, incoherent, evasive and even puerile he looked and sounded.” But he delighted voters, telling them, for example, “Voting Tory will cause your wife to have bigger breasts and increase your chances of owning a BMW M3.” In the general election, against a very liberal Labour candidate, many Londoners supported Johnson apparently just because it was a poke in the eye of the established governing class.

All these parallels with the Trump saga bring us to the equivalent of the present moment in the U.S. As for what happened next in London: Johnson won, of course, and proved to be highly popular. His campaign promises had been modest – the London mayor doesn’t wield much power – but he largely made good on them; crime is down, mass transit is much improved and more widely used, and a vast bicycle-rental system (Boris bikes, everyone calls them) has caught on in a big way. He was re-elected in 2012, just before London hosted the summer Olympics, which were widely regarded as a major success for which Johnson received much credit. He maintained a high profile and became even better known. He’s going out as controversial as ever – vigorously supporting Brexit – and on his own terms.

Is the lesson that the #NeverTrump crowd should calm down and realize that Trump, too, could win and prove a surprising success? No, it isn’t. The differences between the two are more important than the similarities. Johnson was a member of Parliament for seven years before becoming mayor and had risen to vice chairman of the Conservative party, which was then in the minority, and shadow minister of education. He was deeply familiar with the issues and with politics. He was not a professional politician; he made a living as an editor, prolific author, and columnist. While irritating the establishment, he was also of the establishment; he’s a direct descendant of King George II. Most important, he is, despite his penchant for being shocking and funny, a thoughtful man.

It’s highly tempting to note the eerily similar paths of Johnson and Trump, but ultimately they don’t work to Trump’s benefit. He’s no Boris Johnson.

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What We’re Reading Today

Hillary Clinton may have to testify about her emails  

U.S. District Court Judge Emmet Sullivan said he may have to rule that Clinton must testify about whether she used her private email server as secretary of state to circumvent disclosing information. Six close aides of Clinton, including then chief of staff Cheryl Mills, will be questioned concerning Clinton’s email use. Based on those conversations, Clinton’s sworn testimony “may be necessary,” says Sullivan.  Fortune

Republican leaders face the reality of Trump’s leadership

John Kasich‘s exit leaves Donald Trump the only remaining Republican candidate. Trump has begun to reach out to the GOP establishment in an effort to unite them around his campaign. Some hesitate to embrace him, fearing his impact on the party and not wanting to endorse a campaign that has, for the most part, demonized them.  NYT

Fitbit’s struggle against the iWatch

Despite selling 4.8 million wearable devices in the first quarter and outpacing Apple in the wearables market, Fitbit didn’t win over many investors after announcing earnings yesterday. Shares in James Park‘s company fell 11% after hours because guidance for the next quarter didn’t live up to expectations. Park faces the unusual difficulty of competing against Apple, even when you’re succeeding. Business Insider

Turkish prime minister will resign

Prime Minister Ahmet Davutoglu will reportedly step down later this month. He’s apparently at odds with President Recep Tayyip Erdogan about moving Turkey to a presidential system, among other issues. A new prime minister will be selected in late May. BBC

Building a Better Leader

Managers who have a “still face”…  

…have a tougher time connecting with employees. Lack of facial expression is often a sign that a manager feels threatened in his or her supervisory role, which can hurt employee performance. SmartBrief

When you never take risks… 

…you increase the risk of maintaining the status quo and limiting creativity, which can be worse than the risk you’re avoiding. Fortune

Standard & Poor’s warns countries of potential credit downgrades…

…if they don’t address aging populations. It said that more than 25% of the countries it looked at would have a junk rating by 2050 if programs on healthcare and pension systems aren’t improved. Reuters

Vehicle Maneuvers

Tesla speeds up production

Elon Musk has advanced his plan to produce 500,000 vehicles annually by two years. He says he’ll get there by 2018 instead of 2020. The main reason is that pre-orders of the new Model 3 were two to four times stronger than Musk anticipated. The plan will cost $750 million this year; Tesla just posted a loss of 57 cents per share. GeekWire

Einhorn backs GM 

Greenlight Capital’s David Einhorn said investors are overstating Uber’s negative impact on U.S. vehicle sales. He argues that proponents of that theory work in tall buildings in areas where it’s easy to get an Uber car. He doesn’t see ride-hailing services harming Mary Barra‘s company for many years, if at all. Fortune

DOT announces Takata recall 

As expected, Transportation Secretary Anthony Foxx announced an additional recall of 35 to 40 million Takata airbags. The DOT found that time, moisture, and fluctuations in temperatures can cause the ammonium nitrate in the airbags to explode. The airbags have been linked to 10 deaths in the U.S. Takata CEO Shigehisa Takada responded via a statement that it will continue to work with regulators to fix the issue. NPR

Up or Out

The Chan Zuckerberg Initiative, launched by Facebook CEO Mark Zuckerberg and his wife, Priscilla Chan, has hired former deputy education secretary Jim Shelton to lead its education efforts. Fortune

Fortune Reads and Videos

Walmart will bring back greeters 

The move is intended partly to reduce the amount the company loses – currently $300 million a year – from shoplifting, employee theft, and errors. Fortune

Striking Verizon workers plan nationwide demonstrations today

The wireline employees have timed the protests to coincide with Verizon’s annual shareholder meeting. Fortune

Trump won’t self-fund his general election campaign 

Potentially spending $1 billion on the national campaign seems too much, even for Trump. Fortune

Intel CEO Brian Krzanich will chair a committee on drones

The Federal Aviation Administration is establishing the committee to figure out the best way to incorporate drones into the national airspace system. Fortune

Quote of the Day

“You see, we are as human beings kind of hard wired to want to give someone else a lift, give someone else an opportunity, and…when we reach out and help someone else, you see what it does is, it opens us, ourselves, to recognizing and receiving the help that we need in our lives. It’s a virtuous circle. When we help someone else to rise, it opens us up to receive the things that we need in our lives, regardless of who we are.” — John Kasich, announcing that he is suspending his presidential campaign.  TIME

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Produced by Ryan Derousseau