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POLITICO New York Playbook, presented by AT&T: DE BLASIO's style vs. substance in outbreak response -- SCHUMER's tunnel plan -- AILES' balancing act

By Azi Paybarah in Manhattan, Jimmy Vielkind in Albany, and Mike Allen in D.C., with Daniel Lippman

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THE LEGIONNAIRES' RESPONSE-POLITICO New York's Dan Goldberg and Laura Nahmias: Mayor Bill de Blasio's almost theatrical frustration with the media's coverage of his administration's handling of Legionnaires' disease has obscured one aspect of the episode: on the substance, according to infectious disease experts, city authorities appear to have gotten the response largely right. "I think they have done a very good job in mobilizing their resources," said Dr. Claressa Lucas, who is leading the Center for Disease Control and Prevention's investigative team. "I'm encouraged by their proactive response." While the de Blasio administration has taken a political beating over the perception that it mishandled its messaging regarding the outbreak, which has at last count has infected 115 people in the Bronx and killed 12, the illness appears to have been contained. ...

De Blasio's messaging challenge was heightened by the late involvement of Governor Andrew Cuomo, who presented a conflicting picture of events. Friction between Cuomo and de Blasio isn't unique to Legionnaires'. The two men similarly clashed during last year's Ebola scare when the de Blasio administration had a similarly measured approach. The difference, de Blasio said Tuesday, is that Ebola came with plenty of warning. City officials spoke about it for days before a case appeared. There were practice drills and plenty of time to prepare the public for what might happen. The nature of Legionnaires' forced de Blasio into a reactive mode that made it seem like he was catching up to events rather than commanding them.

-- An inmate on Riker's Island tested positive for the disease.

-- Owners of a Bronx hotel fingered in the Times as a potential hot spot offered sharp words for city officials.

SANDRA LEE ILLNESS COMES AMID INCREASED DIAGNOSES OF BREAST CANCER-POLITICO New York's Josefa Velasquez: The very public battle with breast cancer being waged by celebrity chef Sandra Lee, Governor Andrew Cuomo's girlfriend, has brought renewed attention to the disease in New York. Last week on NY1, Cuomo said he was going "to get very involved with the issue" after Lee was hospitalized from complications associated her double mastectomy in May. Lee underwent additional surgery on Tuesday. According to data compiled by the New York State Cancer Registry on the state Department of Health website, the incident rate of breast cancer among women has increased since 1976, from 9,431 annually cases to 15,019 cases in 2012, the most recent year for which information is available.

BEATINGS FOLLOWED DANNEMORA ESCAPE-Times' Michael Schwirtz and Michael Winerip: "Night had fallen at the Clinton Correctional Facility in far northern New York when the prison guards came for Patrick Alexander. They handcuffed him and took him into a broom closet for questioning. Then, Mr. Alexander said in an interview last week, the beatings began...Hours earlier, Richard W. Matt and David Sweat had made their daring escape from the unit - called the 'honor block' - where they were housed. Now it appeared that Mr. Alexander, a fellow convicted murderer who lived in an adjoining cell, was being made to suffer the consequences ... For days after the June prison break, corrections officers carried out what seemed like a campaign of retribution against dozens of Clinton inmates, particularly those on the honor block, an investigation by The New York Times found. In letters reviewed by The Times, as well as prison interviews, inmates described a strikingly similar litany of abuses, including being beaten while handcuffed, choked and slammed against cell bars and walls."

ON MESSAGE? -- De Blasio urged calm on Legionnaires' -- POLITICO New York's Dan Goldberg: "The Legionnaires' outbreak is ending," de Blasio told the crowd at a Bronx senior center he visited yesterday afternoon. "We are going to take steps to ensure nothing like this happens again." De Blasio then promised his administration would reach out to businesses, senior centers and other places where people gather to get the word out about what to do if a person feels sick or whom to call for help."

-- De Blasio and Cuomo work more together -- WSJ's Josh Dawsey: "Mayor Bill de Blasio and Gov. Andrew Cuomo, facing criticism that their political infighting could damage their response to the Legionnaires' outbreak in the Bronx, agreed Tuesday to craft joint regulations for responding to the disease that has killed 12 and infected more than 100.

"After jockeying for several days, with their offices quibbling behind the scenes, aides to both men worked throughout the day Tuesday to bring about a détente of sorts. On Monday, Messrs. de Blasio and Cuomo held simultaneous news conferences in which they gave conflicting information, and Mr. Cuomo said he didn't know what the city was doing. ... A senior aide to Mr. de Blasio said the mayor's office decided to work together on a joint statement with Mr. Cuomo after Monday 'where things didn't go well for everyone.' The agreement was hammered out following several hours of discussions between aides that weren't contentious, the aide said."

EARLY LOOK -- Ruben Diaz Jr. endorses Grodenchik in CD-23: Bronx Borough President Ruben Diaz Jr. is endorsing Barry Grodenchik for the open City Council seat in Queens. Here's a statement from Diaz that Grodenchik's campaign is releasing later today: "Barry has the experience and know-how to effectively represent all the communities of this district, and he'll be a true fighter for outer-Borough families on the City Council." And: 'Barry is a true friend we can count on, and I've seen firsthand the work he does to deliver for seniors, schools, immigrants and families. He knows how to bring people together, and he knows how to get things done." Endorsing the candidate favored by the Queens Democratic County could help fuel speculation about Diaz's ambition for higher office. He was recently profiled in the Observer, under the headline, "Is Ruben Díaz Jr. on Track to Become the Next Mayor?" Grodenchik, who served one term in the Assembly with Diaz, is running against: Rebecca Lynch, a former district leader who worked for the mayor; attorney Ali Najmi who has the support of Zephyr Teachout; Bob Friedrich, a civic leader who has run for office previously; and Satnam Singh Parhar, a construction industry executive and civic leader. -- Azi

TABS -- News: "LUCK OF THE JAW! Gene cold-cocked by teammate over $600" -- Post: "GANG GREEN: Jets star Geno punched by a teammate in fight over $600" -- amNY: "SHOCK & JAW: Jets QB sucker-punched by teammate, could miss 10 weeks with broken jaw" -- Metro: "Jawmageddon" -- El Diario [translated]: Mothers demand to migrate

FRONT PAGES -- NYT, 1-col. above the fold: "Bush Asserts A Clinton Role in Iraq Decline: New Political Risks as War Returns as Issue" -- WSJNY, 1-col. above the fold: "In Shift, Joint Bid To Fight Outbreak"

QUOTE OF THE DAY: "It's my choice which answer I want to give. My answer right now is we are focused on this outbreak. Not personalities, not politics.' -- Bill de Blasio

BONUS QUOTE OF THE DAY: "What I don't understand is why he is in the negative numbers in the white community" -- Mickey Carroll, director of the Quinnipiac University Polling Institute, about Bill de Blasio's poll numbers, on WNYC.

**A message from AT&T: Congratulations to the outstanding winners of AT&T and New York University's ABILITY Lab Connect Ability Tech Challenge, a competition to spur innovation of new technologies for people living with disabilities. View winning technologies at: **

QUOTE OF THE DAY: "I applaud [Schumer]. He did the right thing." ~ Al D'Amato on Iran

HAPPY BIRTHDAY: Political consultant Evan Stavisky.

CHANGING CITY -- "Neighborhood Car Service Companies Adopt Their Own Apps to Fend Off Uber," by Colleen Wright in the Times: "The chatty, frenetic dispatch hubs of neighborhood car services are getting quieter. ... Phone calls are fewer and fewer as customers shift to smartphone apps. Popularized by the ride-hailing company Uber, apps are being adopted, if not entirely embraced, by more and more of the local car services that have long been as much a part of city neighborhoods as the local parish or the corner bodega."

A BLACK JOCKEY AT SARATOGA-Times Union's Mark Singelais: "Kendrick Carmouche grew up in the heart of Cajun country in Louisiana. He moved to Philadelphia five days shy of his 17th birthday. Carmouche, who is African-American, didn't think he could pursue his dream of being a professional jockey at the racetracks in his home state...After a successful run at Parx Racing in Bensalem, Pa., where he won five riding titles, Carmouche is trying his first year on the highly competitive New York Racing Association circuit. 'All the top jocks are here, and you've got to fight your way to the top,' Caramouche said. 'It's very difficult, but anything can be accomplished.' Carmouche, 31, is riding regularly at Saratoga Race Course for the first time this summer. He's the first African-American jockey to hang his tack at the Spa in recent memory."

SCHUMER'S GATEWAY PLAN-POLITICO New York's Dana Rubinstein: So tragicomic does Sen. Chuck Schumer find the situation surrounding cross-Hudson train tunnels that he resorted to paraphrasing "an amusing bumper sticker." "A pessimist sees a dark tunnel," he said. "The optimist sees a light at the end of the tunnel. The realist sees a freight train. The train conductor sees three idiots standing on the tracks. ... Right now, we're the ones standing on the tracks."... In a Tuesday speech at NYU, he called for the creation of a "new partnership" called "the Gateway Development Corporation." It would marshal resources and staff from Amtrak, the Port Authority of New York and New Jersey, the states of New York and New Jersey, New York City, New Jersey Transit and the M.T.A. The total project, which includes more than just a new rail tunnel, would cost between between $20 and $25 billion, according to Schumer.

--"Chuck Schumer working the phones on Iran: He calls colleagues to explain his decision and assure them he will not be whipping opposition," by Politico's John Bresnahan:

MEDIA MORNING -- "How Roger Ailes Picked Trump, and Fox News' Audience, Over Megyn Kelly," by NYMag's Gabriel Sherman: "In the fallout since the first GOP debate, Fox News chairman Roger Ailes has found himself caught between Donald Trump, who has the full backing of Fox's misogynist audience, and Megyn Kelly, the star anchor whom Ailes has nurtured and sees as the key to reaching younger viewers. ... [H]e made the same choice he always does: follow the ratings, and mend fences with Trump. But that process has meant that Fox has had to mute its defense of Kelly, who is now watching uneasily as the Fox audience turns on her ... Kelly has told Fox producers that she's been getting death threats from Trump supporters. While Trump barnstormed rival media outlets over the last few days, dissing Kelly and Fox at virtually every turn, Ailes remained surprisingly restrained in his response."

Per Politico Media Pro-As part of a marketing campaign, The Wall Street Journal is serving free ice cream throughout New York starting Wednesday on a "WSJ Scoops Truck." The ice cream will be served in a wrapper printed with news headlines.

THE TALK OF WALL STREET -- "Cyber-Insider: Mystery Money Manager Charged in Hacking Case," by Bloomberg's Keri Geiger: "Vitaly Korchevsky ... was one of several men arrested Tuesday morning in the biggest case of insider trading linked to the fast-growing threat of global cybercrime. ... The alleged scheme stretched from the affluent suburbs of Philadelphia, where Korchevsky ran a small investment fund, to the darkest realms of the Internet. Working from Russia or Ukraine, hackers infiltrated several computer systems used by corporations to report sensitive information like earnings and then, allegedly with Korchevsky's help, made millions of dollars trading on the confidential data."

HILLARYWATCH -- "'Top Secret' emails found as Clinton probe expands to key aides," by McClatchy's Anita Kumar, Marisa Taylor and Greg Gordon: "The inspector general for the Intelligence Community notified senior members of Congress that two of four classified emails discovered on the server Clinton maintained at her New York home contained material deemed to be in one of the highest security classifications - more sensitive than previously known. The notice came as the State Department inspector general's office acknowledged that it is reviewing the use of 'personal communications hardware and software' by Clinton's former top aides after requests from Congress."

REAL ESTATE -- LICH OUTREACH-"For rezoning push, LICH developer hires firms with de Blasio ties," by POLITICO New York's Sally Goldenberg: "The developer looking to build a controversial condo tower on the site of the former Long Island College Hospital has hired two firms with close ties to Mayor Bill de Blasio-a consulting group that helped run his 2013 campaign and a lobbying company that has worked closely with him since he took office. Fortis Property Group, the builder behind the plan, tapped Hilltop Public Solutions to handle community outreach and Capalino+Company for lobbying as it tries to persuade residents in the Cobble Hill section of Brooklyn to support a land rezoning for the site."

FOREIGN EXCHANGE-"Overnight, NYC real estate got more expensive for Chinese buyers," by Real Deal's Konrad Putzier: 'Between Monday night and Tuesday morning, all of New York's real estate got 2 percent costlier-at least for Chinese buyers. In a stunning move, the Chinese government devalued its currency, the renminbi, by 1.9 percent against the dollar-the greatest single-day markdown since 1994. The move appears in part designed to curb capital outflows from China, which would give New York real estate, an industry that has benefitted from these outflows like few others, something to think about.'

SWEAT EQUITY-"An old city law meant to stop brothels has gyms across town sweating," by Crain's Joe Anuta: "As it pedals toward a $100 million initial public offering, SoulCycle has told potential investors that its surest path to success is opening more exercise studios. But christening a new outpost in the five boroughs is no easy task. Before the fitness firm can cut the ribbon on any location, it must spend several months and tens of thousands of dollars assuring the city of what it is not: a brothel. And not just SoulCycle. All gyms, spas, martial-arts schools, massage studios and health clubs looking to set up shop in New York City must get something called a physical culture establishment permit, which was created in the late 1970s to stem the rise of seedy massage parlors in Times Square."

THE HOME TEAMS -- Politico New York's Howard Megdal: Liberty 84, Sky 63: A complete defensive effort allowed the Liberty to dismantle the Sky, who were missing Elena Delle Donne, a late scratch due to an ankle injury. But Kiah Stokes scored a season-high 13 points and added 11 rebounds while anchoring the defense. And Epiphany Prince led the Liberty with 23 points. Right now, at 15-6, the Liberty lead the East, and only trail the Minnesota Lynx for best record in the WNBA. They're awfully good.

-- Mets 4, Rockies 0: Speaking of awfully good, Matt Harvey pitched eight shutout innings, and Juan Lagares' two-run single in the eighth broke it open.

-- Indians 5, Yankees 4: Michael Brantley ended the proceedings in the 16th inning, beating the Yankees as he so often does.

-- The day ahead: The Yankees are in Cleveland. The Mets host the Rockies. Sky Blue FC has a matinee in Chicago.

**A message from AT&T: AT&T is committed to empowering people in their work, home and social lives and recognizes the enormous potential in the power of technology to do so. Developers from all over the world have harnessed their creativity and skills to create innovative and life-changing solutions. As we come together to celebrate the 25th anniversary of the Americans with Disabilities Act, view the winning technologies of the AT&T and NYU Connect Ability Challenge to help those with physical, social, emotional and cognitive disabilities: **

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