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Good afternoon. Here's what you should know today, May 21: | |
- Investors are bracing for volatility amid the debt-ceiling stalemate
- DeSantis is set to officially launch his 2024 presidential bid this week
- Greece's leader faces elections with a tarnished standing
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 | | A wounded Ukrainian soldier near Bakhmut. Both sides have suffered heavy losses in the protracted battle for the city. PHOTO: SERGEY SHESTAK/AFP/GETTY | | |
1. Kyiv has effectively lost control of Bakhmut, Ukraine's top commander in the region says. | |
| Col. Gen. Oleksandr Syrskiy said Ukrainian forces clung to a tiny part of the eastern city, while Moscow declared victory. The city's capture would mark the only significant success of a monthslong Russian offensive that has severely depleted its military. But the question of who really won the battle of Bakhmut, military strategists say, will be decided not by control over the shattered city but by the next phase of the war (🔐 read for free). Ukraine's President Zelensky traveled to Hiroshima, Japan, this weekend, where he met with Group of Seven leaders and asked for more support. President Biden expressed optimism about an anticipated spring offensive by the Ukrainian army, saying: "The expectation and hope is that they will be successful." | |
| In Hiroshima, Zelensky Tells Putin to Abandon 'Nuclear Blackmail' (Read) | |
2. With a deal looking elusive, investors are seeking protection in case of a debt-ceiling debacle. | |
| President Biden on Sunday took a sharper tone on the negotiations, calling House Republicans' current proposal "unacceptable" and dimming earlier optimism about a deal to avoid a default on U.S. sovereign debt. The debt-ceiling standoff has exacerbated fears of another round of stock-market pain. Investors have dialed back on risk, pulling nearly $24 billion from U.S. equity funds in the first three weeks of May, according to Refinitiv Lipper data. In the coming days, they will continue to track progress toward a resolution and parse minutes from the Fed's May meeting for insight into where interest rates might be headed, along with earnings results from companies such as Lowe's and Nvidia. | |
| Biden Hits Back on Budget Impasse Ahead of Call With GOP's McCarthy (Read) Fed Official Is Open to Foregoing June Rate Hike (Read) Debt-Ceiling Fight Could Start a Recession, but Default Would Be Worse (Read) | |
3. Greek voters are weighing economic growth against concerns over the rule of law. | |
| Prime Minister Kyriakos Mitsotakis is under a cloud: A festering scandal over the surveillance of political friends and foes has deepened concerns about his handling of power in a country still healing from its traumatic debt crisis. Mitsotakis's center-right New Democracy party is expected to finish first in today's elections, but to fall short of a majority in Parliament, likely requiring another national vote this summer. A preliminary outcome is expected by around 2 p.m. ET. | |
| Greece's Leader Faces Elections Amid Rule-of-Law Concerns (Read) | |
4. Donald Trump's enduring popularity is giving him an edge in South Carolina. | |
| South Carolina is the third state in the GOP nominating process, following Iowa and New Hampshire. Early polls have shown Trump leading all possible competitors by solid margins, despite bids from home-state candidates like former Gov. Nikki Haley. Tim Scott, one of the state's two Republican senators, is also expected to formally announce his presidential bid on Monday. Florida Gov. Ron DeSantis, seen as Trump's closest competitor nationally for the nomination, is expected to officially enter the race this week as well. | |
5. A year after a school shooting in Texas, families are fighting for answers. | |
| A year ago Wednesday, a gunman marched into Robb Elementary School, shut himself in a classroom and massacred 19 fourth-graders and two teachers, while hundreds of police officers stood outside. Now, with the one-year mark approaching, this South Texas town remains divided. Those connected to the victims and their advocates have spent the past year battling for information and legislation. Some of their neighbors, however, want to move on. | |
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