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Hello! The Labour Party is back in power in the UK after 14 years. In recent months, the UK's new prime minister has made a concerted effort to appear more relatable to voters — and he's been helped by an unlikely mentor: former US President Barack Obama.
In today's big story, we're looking at the mounting pressure President Joe Biden is facing to forgo his reelection campaign.
What's on deck:
- Markets: For one group of stocks, a bad forecast is a good thing.
- Tech: Power-hungry AI data centers are threatening to put a massive strain on the power grid.
- Business: "Hawk Tuah Girl" wants her 15 minutes of fame to become a viable business.
But first, decision time.
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The big story
A campaign on the brink
"Should I stay or should I go?"
The Clash's 1982 hit could be President Joe Biden's anthem these days as rumors swirl about his reelection bid.
The president is reportedly questioning the future of his campaign as his support continues to wane. And it's getting harder to see how Biden can stay in the race, writes Business Insider's Bryan Metzger.
Biden's disastrous debate performance on June 27 is proving hard to shake. And voters aren't buying the myriad of excuses — a cold, bad prep, jet lag — offered up by his campaign.
Recent major national surveys show Biden falling behind former President Donald Trump. And states that have long been Democratic strongholds, like New Mexico and Virginia, could be up for grabs.
His own party has even started to turn on him. Reps. Lloyd Doggett and Raúl Grijalva were the first two sitting Democratic members of Congress to call on Biden to drop out.
Meanwhile, Biden's most likely replacement — Vice President Kamala Harris — hasn't elicited a strong response.
Some Democrats have begun voicing their support for her, albeit a bit ironically.
In many ways, Harris represents the only viable option for Democrats. Under campaign finance law, the VP is the only candidate who can easily inherit the hundreds of millions of dollars raised by Biden's campaign.
Biden's first post-debate interview could ultimately decide his fate.
The president is scheduled to sit down with ABC News' George Stephanopoulos today in an interview that will air in primetime tonight.
One Biden ally told The New York Times the president is aware of how crucial the next few days are for the future of his campaign.
Biden's team, however, has pushed back on the notion that the president is considering walking away. The White House flatly denied such reports. Biden is "absolutely not" considering bowing out, White House press secretary Karine Jean-Pierre told reporters Wednesday.
There is one group in Biden's corner: Republicans.
Many on the right believe a Biden ticket gives Trump the best chance to return to the White House. In fact, some Republicans reportedly might even take legal action to keep Biden on the ballot.
3 things in markets
- Tough times ahead for the real-estate market. A longtime strategist predicts the real-estate market is headed for a correction that could hit mortgage-holders particularly hard. "People are going to have to start to sell their homes," he said.
- Bad weather = good returns. CFRA pointed to insurance stocks, like Berkshire Hathaway and Progressive, that stand to benefit from what experts predict will be a "very active" hurricane season. More storms "will likely buoy pricing for many lines of property-casualty insurance and reinsurance," CFRA said.
- S&P 500 to 7,000 next year? Capital Economics is forecasting a 27% increase for the benchmark index through 2025. But chief economist Neil Shearing predicts the bubble will eventually pop as investor enthusiasm outpaces earnings growth.
3 things in tech
- AI's huge electric appetite. In the next two years, generative AI is expected to add demand equal to three times the amount of energy New York City uses. The US needs to expand the power grid to keep up, and that's a big opportunity for firms in construction, power, and data-center cooling.
- Big Tech admits AI's big threats. Google and Meta have been loud and proud in their commitments to the AI race. But privately they've expressed concerns about the ethical, legal, and regulatory issues AI could cause for their "brands and demand." Misinformation and data privacy were among the top worries.
- There's a new plot twist in Apple's deal with OpenAI. According to Bloomberg, Apple gets an observer role on OpenAI's board. The move puts Apple on equal footing with Microsoft, OpenAI's biggest backer. However, the two companies have very different arrangements with OpenAI.
3 things in business
- Women's sports merchandise has an underdog champion. Demand is high for kits and jerseys repping female sports stars like Caitlin Clark and Alex Morgan. But problems like low inventory, lack of retailers, and minimal options plague the market. To answer the call, smaller companies are stepping up.
- Can she "hawk tuah" her way to the top? Hailey Welch, dubbed the "Hawk Tuah Girl" for her viral answer to an R-rated street-interview question, wants to cash in on her newfound fame. But it's unclear if — and how — she'll be able to make her 15 minutes last.
- Saks Fifth Avenue is buying Neiman Marcus. The $2.65 billion sale shows just how challenging things are getting in the luxury-retail space. That's not all: Both Amazon and Salesforce are getting in on the deal, with both taking minority stakes in the new company, Saks Global.
In other news
- These are McKinsey's top 9 recommendations for business books this year.
- As Europe teeters further to the far right, the UK is doing the opposite.
- Whole Foods isn't a "whole paycheck" anymore, its cofounder says. Here's what I found buying groceries.
- John Oliver was right — the Conservative Party just faced an epic wipeout at the polls.
- Russia's frenemy China is quietly trying to dampen Putin's influence.
- Legendary iPhone designer Jony Ive opens up about what it was like working with Steve Jobs.
- I'm the son of a billionaire who forged my own career path.
What's happening today
- A first look at Biden's interview with George Stephanopoulos airs on ABC.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Amanda Yen, fellow, in New York.