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Good afternoon. Here’s what you should know today, June 28:
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The Supreme Court rules that prosecutors overreached in Jan. 6, 2021, cases
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Slowing U.S. inflation fuels expectations of interest rate cuts
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Vienna is a den of Russian spies, intelligence officials say
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Thanks for reading What’s News! Look for the 🔐 to enjoy a free article on us—and share the link with a friend (or forward the whole newsletter!).
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ILLUSTRATION: WSJ; PHOTOS: ASSOCIATED PRESS; AFP/GETTY IMAGES; EPA/SHUTTERSTOCK
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1.
President Biden resumed campaigning, while multiple lawmakers said they were discussing how to move forward after his disastrous debate performance.
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He has no plans to drop out of the race (🔐 read for free), according to a senior adviser, and remains committed to a planned September debate with Donald Trump. On the campaign trail, the oldest U.S. president in history acknowledged his age but insisted he was the right man to take on Trump. During the debate last night, he rambled, lost his train of thought and seemed frequently confused. Whispers about potential replacement candidates include Michigan Gov. Gretchen Whitmer, California Gov. Gavin Newsom, and Vice President Kamala Harris. Biden would need to step aside for Democrats to substitute another candidate because he controls most of the party’s delegates headed into their August convention. WSJ reported earlier this month that behind closed doors, Biden was showing signs of slipping.
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Trump’s Debate Performance Marked by Familiar Theme: Falsehoods (Read)
🎥 Unsteady Biden, a Subdued Trump: The Debate Analyzed (Watch)
Five Key Debate Moments Where Biden Stumbled (Read)
🎥 Biden Addresses Debate Performance: I Know How to Do This Job (Watch)
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2.
The Supreme Court ruled that the Justice Department improperly charged some of the people who stormed the U.S. Capitol on Jan. 6, 2021.
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The decision could affect hundreds of cases—and potentially help Donald Trump. Prosecutors have charged more than 1,400 rioters and turned to an Enron-era obstruction of justice statute to elevate some cases. After the 6-3 ruling, some defendants will seek resentencing. Two of the four charges Trump faces in a related criminal case also rely on portions of the statute. In unrelated decisions, the high court reduced federal agencies’ regulatory power, upending a 40-year-old framework; expanded cities’ ability to remove homeless camps; and rejected Steve Bannon’s bid to avoid prison. The former Trump adviser, who wanted to remain free while appealing his conviction on contempt of Congress charges, must report to prison by Monday.
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3.
The artificial-intelligence boom catapulted U.S. stocks to a monster first half of the year.
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The astronomical rise of Nvidia’s shares propelled its market value above $3 trillion and briefly made it the most valuable company in the world. The chip maker is a big reason why the S&P 500 has climbed 15% this year, even as hot inflation readings diminished investors’ hopes that the Fed would cut interest rates soon. The major U.S. indexes ended the day with losses, though. Separately, the central bank’s preferred inflation gauge met forecasts in May, keeping alive expectations that rates could fall faster than policy makers forecast. The core personal-consumption expenditures price index, which excludes volatile energy and food prices, increased 2.6% from a year ago, down from April’s 2.8%.
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Heard on the Street: America’s Frozen Housing Market Is Warping the Economy (Read)
WSJ’s James Mackintosh: Diversity Was Supposed to Make Us Rich. Not So Much. (Read)
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4.
Iran’s presidential election today pits engaging with the West against more confrontation.
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Voter turnout will also signal whether Iranians are getting fed up with their system of Islamic governance. A reformist candidate leading in the polls is up against several hard-liners who want to deepen Iran’s ties with Russia and China, fortify its alliance of anti-Israel militias and continue its nuclear program. There is no clear favorite; if no one wins a majority, the two top vote-getters will go head to head in a runoff. The previous president, Ebrahim Raisi, died in a helicopter crash last month. He was considered a possible successor to Supreme Leader Ayatollah Ali Khamenei, who is 85 and in poor health. Raisi’s death removed a safe choice, Iran analysts said.
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🗨 Follow coverage of detained WSJ reporter Evan Gershkovich
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The WSJ’s Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of espionage—a charge the Journal and the U.S. government vehemently deny. Follow the latest coverage, sign up for an email alert, and learn how you can use social media to support Evan.
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MEMBER MESSAGE: Times Literary Supplement
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Ask Better Questions: Subscribe to the TLS
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Every week, the TLS publishes book reviews, essays and poems by leading writers from around the world. Surprising, authoritative, often provocative, we inspire our readers to ask better questions and cover everything from The Tempest to the climate crisis, little magazines to Big Tech, Dionysus to Diane Arbus. Don’t miss this exclusive sale offer and enjoy your first 3 months for just $3.
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3 million+
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The number of people TSA expects to go through airport security today. Seven of the 10 busiest air-travel days in the agency’s history happened between May 23 and June 27. Plane travel typically spikes around now, but this year’s levels are unprecedented thanks partly to a calendar quirk. With Independence Day on a Thursday, travelers can snag two vacation weekends by leaving today and returning to work the Monday after July 4.
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“Russian intelligence is now like an octopus using every tentacle at its disposal, and the head is currently in central Europe.”
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—A European intelligence officer, describing Vienna’s emergence as Moscow’s espionage hub on the continent. Other European countries expelled 600 Russian spies posing as diplomats in the wake of the Ukraine invasion; dozens resurfaced in Austria, intelligence officials there say. The Russian Embassy in Washington didn’t respond to a request for comment. The Austrian Interior Ministry said that the country’s intelligence agency is aware of the situation and counters threats from state actors within its legal limits.
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“There’s eight billion people in the world, and me and my kids, we’ve been in the luckiest 100th of 1% or something. There’s lots of ways to help people.”
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—Warren Buffett, explaining that after he dies, nearly all of his wealth will go to a new charitable trust overseen by his children, not to the Bill & Melinda Gates Foundation, where he’s donated billions. The Berkshire Hathaway chairman and CEO, who owns nearly $130 billion of its stock, wants his children to decide unanimously where to donate the money.
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Macron Runs France Like a CEO. His Customers Aren’t Happy. (Read)
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Monaco and Venezuela Placed on Global Money-Laundering Watch List (Read)
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All-AI Ad From Toys ‘R’ Us Inspires Debate Over the Future of Marketing (Read)
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Sure, Your Rental Building Has a Gym. What About Cold Plunges and Dog-Washing Stations? (Read)
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For an Outdoorsy Vacation Without Massive Crowds, Look to Your Nearest State Park (Read)
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ILLUSTRATION: KIERSTEN ESSENPREIS
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How to get more dollars into tax-sheltered Roth IRA and Roth 401(k) accounts
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To boost balances before the end of 2025—when the 2017 tax cuts expire, unless Congress acts—many savers can opt for in-plan 401(k) conversions, in-service distributions and Roth solo 401(k) plans. Reminder: You pay taxes on money going into Roth IRAs and 401(k)s, while contributions to traditional IRAs and 401(k)s are often tax-deductible. But Roth accounts’ advantages can include tax-free growth and withdrawals as well as some tax and Medicare-premium reductions.
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A cyberattack on a software company has thrown a wrench into car-shopping for the past two weeks—and could linger into July. Close to 15,000 auto dealerships use CDK’s systems to track everything from parts orders and automotive recalls to service and sales. Some even use the software to run their phone lines. CDK has called it a “cyber ransom event,” suggesting a ransomware attack. We talked to WSJ reporter Robert McMillan, who covers computer
security, hackers and privacy, about the ABCs of CDK. Write to him at robert....@wsj.com.
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Most of us have heard about hackers stealing people's identities or money. What were the cyberattackers going after?
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They’ve realized that they can make millions by holding a company hostage—especially one with many customers who rely on it deeply. We don't know the hackers‘ demands or if they were paid, but it's likely that they were holding CDK's systems hostage. Yesterday, we heard that some dealers were back online, but CDK has been tight-lipped. The disruption is expected to be over by next month at the very earliest.
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What impact has this had on dealerships and car shoppers?
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Salespeople are pretty inventive, so they're still selling cars. But the paperwork—the financing, the updating of information to the DMV, etc.—has all been gummed up. Dealers have created workarounds; sometimes they use old-fashioned pen and paper. CDK’s downtime will cost dealers money because, once the system is back online, they have to re-enter every sale, hour of service and replacement part sold. It also will create confusion about whether dealers hit the sales numbers that car makers require to pay out bonuses at the end of every month.
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What are lessons that other industries should learn from this?
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These hacks show us that there are little-known companies that can have a big effect on lives when they go down. We saw this earlier this year when UnitedHealth Group’s Change Healthcare system was hit with ransomware and providers couldn't bill insurers.
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You've covered cybersecurity for a long time. How do you feel about the topic?
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About 20 years ago, when I started, the hacking beat felt more hypothetical, wide-open and fun. We now see very serious consequences to some ransomware attacks as well forms of online fraud that wipe out people's life savings. That can be hard to write about, but shining a light on this activity can help some people avoid disaster. That's what keeps it from being depressing.
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Are you careful about your own online presence, and do you nudge your family and friends about it?
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The ultimate status symbol is a $300,000, souped-up Land Rover Defender, warts and all.
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