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Good afternoon. Here's what you should know today, May 28: | |
- Biden and McCarthy reached a tentative deal for raising the debt ceiling
- Elizabeth Holmes is expected to begin her 11-year prison sentence
- Millions of people voted in Turkey's presidential runoff election
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 | | President Biden says 'the agreement represents a compromise, which means not everyone gets what they want.' PHOTO: CHIP SOMODEVILLA/GETTY IMAGES | | |
1. Biden and McCarthy struck a tentative deal to raise the nation's borrowing limit. | |
| The agreement raises the debt ceiling for two years and places new limits on spending over that period. The deal requires approval from both the House and Senate. House Speaker McCarthy said a vote could come Wednesday in the House, where Republicans hold a narrow majority. Lawmakers are under pressure to move quickly since the U.S. could run short of money to pay its debts as soon as June 5. Biden and McCarthy were preparing to talk again later today to iron out final elements. | |
| What's in the Debt-Ceiling Deal (Read) 🎥 McCarthy: Debt Ceiling Agreement Reached "in Principle" (Watch) | |
2. Elizabeth Holmes is expected to begin her 11-year sentence on Tuesday. | |
| The Theranos founder must report to the Federal Bureau of Prisons by 2 p.m. on May 30, a judge ordered. The Bryan, Texas, camp where the judge recommended Holmes serve her time is a minimum security, all-female facility located about 100 miles northwest of Houston. It houses up to about 720 inmates whose convictions include white-collar crimes and low-level drug offenses. The Journal interviewed current and former inmates about what life is like in the facility. | |
| A History of the WSJ Theranos Investigation (Read) | |
3. Tech-stock rally leaves small companies in the dust. | |
| Anxieties over the debt ceiling, a potential recession and lingering inflation have encouraged investors to turn to a trade that has worked for much of the past decade: large-cap tech stocks. The Russell 1000 index of large companies has gained 9.2% this year, beating the 0.7% advance of the small-cap-concentrated Russell 2000. That is the widest outperformance since 1997. This week, investors are looking to Friday's jobs report to gauge the health of the economy. | |
| The Outlook: The Dollar Is Still King in Europe, and It's Swaying Interest Rates (Read) | |
4. Turkey is voting in presidential runoff elections. | |
| The results of the runoff election could cement President Recep Tayyip Erdogan's grip on power and his country's influence in the war in Ukraine, the Middle East and NATO. Erdogan enters the second round with the upper hand after winning a majority in the initial vote on May 14. His challenger, opposition leader Kemal Kilicdaroglu, underperformed in the first round after most polls showed him with a lead over the sitting president. | |
| Turkey's Top Election Challenger Pledges Closer Ties to NATO and EU (Read) 🎥 Why Turkey's President Faces the Biggest Election Challenge in Years (Watch) | |
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