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Trumponomics Daily—Friday, February 3

Yesterday’s note in this space pointed out that this week, after spending the months following the election not sure what to make of the new president, corporate leaders, particularly in tech, have been discovering the spine to stand up to him. What it didn’t mention is the role some of those leaders’ key constituencies have played in helping them find that willpower. The pressure that companies’ own workforces and everyday consumers are applying to executives became clearer Thursday, when Uber CEO Travis Kalanick announced, in the face of mounting public blowback, he is quitting the business council Trump formed to advise him and convening for the first time at the White House this morning. “Joining the group was not meant to be an endorsement of the President or his agenda but unfortunately it has been misinterpreted to be exactly that,” Kalanick wrote in a memo to employees.

Indeed, any benefit the Uber chief may have expected from his proximity to the president was overwhelmed this week by the #DeleteUber social media campaign, touched off by a perception the ride-hailing service tried to profit off of protests against Trump’s immigration ban — a charge the company chalked up to a misunderstanding. Nevertheless, driven by activist groups like Color of Change, Muslim Advocates, Free Press and MoveOn, that campaign morphed into a demand that Kalanick drop out of Trump’s CEO kitchen cabinet. The commercial stakes for Uber were clear enough: On Sunday, for the first time in its history, downloads of the app on iOS were outstripped by those of its chief competitor, Lyft. Driving home the liability consumer-facing brands now face from an association with Trump, the president’s own daughter Ivanka on Thursday saw her retail brand dropped by Nordstrom. The department store cited its lackluster performance, with demand collapsing after it became the target of a grassroots “Grab Your Wallet” protest campaign.

With the Kalanick win under their belt, lefty activists now are setting their sights on Disney and Pepsi, both of whose chief executives serve on Trump’s business council. “These relationships are enabling an administration that is trying to take away the freedom and progress our community has achieved,” Rashad Robinson, executive director of Color of Change, tells me. Kalanick’s fellow techie Elon Musk, of Tesla and SpaceX, rejected that logic in explaining his decision to remain on Trump’s council. “Advisory councils simply provide advice and attending does not mean that I agree with actions by the Administration…I understand the perspective of those who object to my attending this meeting, but I believe at this time that engaging on critical issues will on balance serve the greater good,” he said in a statement. Via Twitter last night, I asked Neera Tanden, president of the left-leaning think tank Center for American Progress, why those opposed to the ban wouldn’t want Trump hearing in person from CEOs making the case against it. Her reply: “I think you’re living in an alternative reality if you think the CEO’s can counter [White House chief strategist Steve] Bannon.”

So the battle lines have been drawn. Chief executives now risk getting caught between a vengeful White House that’s demonstrated its ability to move share prices and wrathful customers ready to vote with their wallets. And the most attractive strategy, simply skipping the whole mess, may not be an option.

Tory Newmyer

Must Reads

President Trump Is Starting to Roll Back Financial Services Regulations [Fortune]

Trump this morning will sign an executive order directing Treasury to review the Dodd-Frank law — and while that move has no immediate impact, it sets the table for the new administration to begin rolling back industry rules it’s called overly onerous.

GE, Boeing, Oracle form coalition to support Republican border tax [Fortune]

Industry battle lines continue to form over a House Republican plan, still in draft form, to impose a levy on imported goods. On Thursday, the so-called American Made Coalition debuted to support the proposal; it includes Dow Chemical, Eli Lilly, Pfizer, Oracle and others.

Soul-Searching at Clinton Foundation in Trump Era [NYT]

Three months after Hillary Clinton’s shock defeat, her family’s charitable foundation — a source of ethical headaches and negative headlines during the campaign — is struggling to regain its footing, with questions lingering about the role the family itself will play, its fundraising ability, and its leadership.

Number of the day


The number of jobs employers added in January, significantly beating expectations. The gains come as some of the enthusiasm around the so-called Trump Bump has flagged, with a market rally slowing and the Federal Reserve signaling it will go slower on raising interest rates. The jobless rate, meanwhile, ticked up to 4.8%.

Loose change

Republican Lawmaker Withdraws Bill to Sell Federal Land After Outcry [Fortune]

Donald Trump Will Make Hedge Funds Great Again [Fortune]

Zell Says Anti-Immigration Sentiment ‘Very Dangerous’ for U.S. [Bloomberg]

How Silicon Valley and Washington Can Be Friends Again [Fortune]

Gold Hits Highest Level of Trump Presidency [Fortune]

Donald Trump Is Being Mentioned Twice As Often as Obama Was in Financial Filings [Fortune]