Illustration: Rebecca Zisser/Axios

Starbucks chairman emeritus Howard Schultz is a long shot to win the White House, but a sure bet to create headaches for the coffee chain he turned into a global empire.

Why it matters: Schultz's reputation and fortune comes from his time as the Ray Kroc of coffee, turning a small Seattle roaster with four stores into a 28,000-store phenomenon spanning 77 countries. That means massive scrutiny of Starbucks, by both the media and political opponents, unlike anything the company has yet experienced.

A former presidential campaign staffer says: "If I were the DNC or RNC, I'd already be sending people to Starbucks stores around the country, looking for employees with serious complaints."

  • "Maybe complaints that they emailed Schultz about but didn't hear back. Or the former mom and pop coffee shop that was put out of business when Starbucks showed up. It only takes one."

Schultz's successor as CEO, Kevin Johnson, emailed the chain's 350,000 employees worldwide a message at 6 a.m. yesterday that said: "As a company, we don’t get involved in national political campaigns. And nothing changes for Starbucks."

  • Good luck with that. If the company is publicly attacked, it will have little choice but to defend itself.
  • In fact, Starbucks officials have prepared for a media onslaught, and have studied the cases of other business titans who have run for office.

Schultz and Starbucks are tied at the hip, which means they'll need to work together. Kind of like Mitt Romney and Bain Capital in 2012.

  • For Schultz, that means quickly identifying supporters in upper Starbucks management (including in the communications and legal departments), and leveraging those people when the campaign needs time-sensitive answers.
  • It also would be beneficial to tap a former Starbucks executive as a trusted go-between, like Romney did with former Bain Capital co-founder Bob White.

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Jeff Sessions loses Alabama Senate primary runoff

Jeff Sessions. Photo: Michael DeMocker/Getty Images

Former Attorney General Jeff Sessions has lost the Republican nomination for Senate to Tommy Tuberville in Alabama in Tuesday night’s primary runoff, AP reports.

Why it matters: Sessions had been the underdog in the race against former Auburn University head football coach Tommy Tuberville, who had the backing of President Trump. Tuberville will now face off against Sen. Doug Jones (D-Ala.) in November, who is considered to have one of the most vulnerable Democratic Senate seats in the country.

Updated 5 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 13,273,537 — Total deaths: 577,006 — Total recoveries — 7,367,106Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 3,424,304 — Total deaths: 136,432 — Total recoveries: 1,049,098 — Total tested: 41,764,557Map.
  3. Politics: Biden welcomes Trump wearing mask in public but warns "it’s not enough"
  4. Public health: Four former CDC heads say Trump's undermining of agency puts lives at risk — CDC director: U.S. could get coronavirus "under control" in 4–8 weeks if all wear masks.

Bank CEOs brace for worsening economic scenario

JPMorgan CEO Jamie Dimon. Photo: J. Lawler Duggan/For The Washington Post via Getty Images

Wells Fargo swung to its first loss since the financial crisis — while JPMorgan Chase and Citigroup reported significantly lower profits from a year earlier — as the banks set aside billions of dollars more in the second quarter for loans that may go bad.

Why it matters: The cumulative $28 billion in loan loss provisions that banks have so far announced they’re reserving serves as a signal they’re preparing for a colossal wave of loan defaults as the economy slogs through a coronavirus-driven downturn.