Biden digs his heels in while Trump secures another win (2024)

What's on deck:

• Markets: One bank strategist downgrades the red-hot tech sector.
• Tech: OpenAI thinks it has a solution to ChatGPT's coding mistakes.
• Business: There's a problem with new homes in America: They are all ugly.

But first, he's not leaving.

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The big story

Biden won't back down

President Joe Biden knew he'd have to put up a fight this year to keep his seat, but he likely didn't realize it'd come before November's election.

Despite a growing chorus of doubters, the president is digging in his heels over his decision to run for reelection, writes Business Insider's John L. Dorman.

Biden's campaign has been in full-blown crisis mode after the president's disastrous debate against former President Donald Trump last week.

Criticism about Biden's age and ability to serve another four years, previously only whispered about by supporters behind closed doors, was loud and public in the immediate aftermath.

Biden's aides have done their best to defend the president's performance, with one report suggesting the debate was held outside the hours when he's usually at his best. But experts said spinning Biden's struggles as a one-off to voters will ultimately backfire.

Still, the president seems intent on staying put. Despite the increased pressure to drop out, Biden's family has reportedly urged him to stay in the race. If he did give up the nomination, it would only be if he was offered a "dignified way out," according to The New York Times.

Biden bowing out wouldn't alleviate Democrats' problems.

Who would fill in for Biden on the Democrats' 2024 presidential ticket comes with its own issues.

A Biden campaign manager reportedly said if the president steps aside his war chest would mostly go to Vice President Kamala Harris. But in some Democratic circles, the VP isn't being pitched as the best substitute for Biden.

Governors Gavin Newsom and Gretchen Whitmer are among the Democrats who have been floated to fill in for Biden. That chatter has reportedly left Harris' camp frustrated that she isn't considered the obvious pick.

Meanwhile, Trump secured a big win in his immunity case. The Supreme Court ruled that former presidents don't get absolute immunity from criminal charges related to actions under the scope of the presidency, but they do get some.

That decision is set to be pivotal in Trump's January 6-related indictment, with the court making clear some areas of the case can't proceed. The president is also looking to use the ruling to throw out his Manhattan conviction.

But the case could have bigger implications than just Trump. Justice Sonia Sotomayor wrote in a dissenting opinion that the ruling created a "law-free zone around the President" whereby they could order the assassination of a political rival without facing prosecution.

3 things in markets

1. Trump's policies are an "elixir for stagflation," JPMorgan's strategy chief warns. David Kelly sounded the alarm on the potential shocks Trump's trade and immigration policies could have on the economy. Sweeping tariffs and mass deportations could trigger a recession, he said.
2. How a new $1 billion hedge fund is looking to stand out. Former Millennium exec Jonathan Xiong has his work cut out for him with the launch of Arrowpoint. The Asia-based multistrategy fund has big-name backers, like Blackstone and Canada's largest pension, but faces a crowded field where heavyweights like Citadel and Millennium dominate.
3. Truist cools on tech. Keith Lerner, Truist Wealth's chief strategist and co-chief investment officer, downgraded the firm's rating on the tech sector from overweight to neutral. He's still bullish on the space but views valuations as overvalued, seeing value in communication services and utilities instead.

3 things in tech

1. Big Tech gets a big win from the Supreme Court. The court kicked two cases dealing with social media content moderation back down to lower courts. A legal expert explained why the decision is a de facto win for social media companies.
2. Humans need another bot's help to fix ChatGPT's blunders. OpenAI unveiled CriticGPT, a tool designed to help human AI trainers spot errors in code produced by ChatGPT. As the chatbot has grown more sophisticated, its mistakes have become harder for humans to spot.
3. Abnormal Security is set to be valued at $5 billion with new funding round. It's raised $374 million in venture funding, but it's unclear how much it will raise with the new round. The startup, which uses AI to guard users from cyber threats across email and apps, was valued at $4 billion in 2022

3 things in business

1. We just can't stop building these hideous houses. Most people agree America needs more houses, but why are the ones being built so ugly? A mix of soaring development costs, local rules, and changing homeowners' attitudes may be to blame.
2. How much money would you need to feel financially secure? For Gen Z, it's $200,000 a year — more than any other generation. Gen Zers, contending with rising costs, are feeling financially vulnerable. According to a previous BI poll, they're the most stressed generation when it comes to saving money.
3. Kevin Costner's bad real-estate bet. Kevin Costner mortgaged his home to put $38 million of his own money into his latest film venture, the western "Horizon." Box-office numbers suggest this was a terrible idea.

In other news

• 2 managers at the World Economic Forum, which hosts the glitzy Davos conference, said the N-word in front of staff: report.
• How Rak Garg became Bain Capital Ventures' youngest partner at just 27 years old in less than 3 years.
• VidCon 2024 showcased the internet's hottest stars you may never have heard of. Here are 7 top takeaways from the annual creator industry conference.
• Business cards are out. Instead, I use a QR code that directs to my LinkedIn profile when networking.
• Mark Zuckerberg's Meta just got some bad news.
• Ex-Moelis banker arrested on assault charges after viral punching video.
• Hot sector: solar careers are in demand.
• The iPhone 16 is less than 3 months away — here's what to expect.

What's happening today

• Major Hurricane Beryl is forecast to barrel northwest across the Caribbean islands. It's the earliest Category 4 hurricane on record for the Atlantic hurricane season.

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. Annie Smith, associate producer, in London. Amanda Yen, fellow, in New York.