To say that Wall Street is not a fan of Zohran Mamdani would be an understatement.
In fact, top -class investors and business leaders in the Big Apple are in the weapons over the breathtaking victory of the democratic socialist in the area code to win democratic nomination as the next mayor of New York City. The potential victory of the three-time meeting member in the general elections in November could do the most hateful tax increases and closer regulation that threaten the company and investment interests.
Philippe Laffont, founder of Hedge Fund Coatue Management, told CNBC that a Mamdani victory could trigger another exodus of wealthy investors. Since the pandemic, a wave of wealthy residents and institutional companies from the country's largest city has fled for countries with low taxes such as Florida and Texas.
“Some people will be sure,” said Laffont on Wednesday in CNBCS “Squawk Box” after the former New York governor Andrew Cuomo granted democratic nomination. “It's not quite finished yet. There is another choice. Maybe Cuomo will come back as independent.”
Mamdanis emphasis on socialism and the redistribution of the assets contradicts the Preference of Wall Street for unbridled capitalism and guidelines that support growth, e.g. B. Deregulation and low taxes. The 33-year-old supported the taxation of the ultra-rich, financial transactions and passive income such as dividends. He also approved a wealth tax at the state level and increased the border income tax rates for high earners.
The hedge fund Magnat Bill Ackman said that on Wednesday he “depressed a bit” by Mamdani's victory. The Pershing Square boss said that he is now looking for logistics for another candidate, not himself to run.
Lawrence Summers, the former finance minister and President of Harvard University, also expressed his dislike Mamdanis.
“I am deeply alarmed about the future of the [Democratic National Committee] And the country, after yesterday's NYC salvation of a candidate who does not reject a “globalized” slogan intifada and approved the economic policy of the Trotsky, “said Summers in a position to X.
“Suicide of the mayor”
Part of the stock exchange has already felt the pain from the prospect of a NYC led by Mamdani. The shares of the New York Regional Bank Flagstar with the commitment to the New York real estate market fell almost 4%on Wednesday. Office-oriented real estate shares also suffered, with SL Green Realty fell by almost 7% by more than 6% and the Vornado Realty Trust.
Mamdani is committed to a universal rental check, and the Mayor of New York City has the authority to appoint representatives to the regulatory authority that monitors the rentals and supervises apartments of rent. A break to rent increases would affect the profits of multi -family rental objects.
Around one million New York apartments are stabilized, but only about 20,000 are still rented.
“It seems that NYC decides on suicide from the mayor,” said Jim Bianco, President and Macrostrate at Bianco Research, in a post on the X Tuesday evening.
“Terror is the feeling”
Mamdanis' solution for most problems is based on an ideological commitment to expenses financed by the taxpayer, and this is what the affected business community, said Kathryn Wylde, President of the New York City partnership, said a non-profit CEO group of CEOs, which was founded in 1979 by David Rockefeller.
“Terror is the feeling,” said Wylde on Tuesday morning to CNBC when the voters went to the surveys, even though she found that “it is much positive in New York. But that could quickly shift if we lose trust in the mayor.”
Wylde said that the state government, led by governor Kathy Hochul, should keep the city away from a “disaster” scenario. She recognized the concerns about high living costs and business, but said that increasing taxes was not the solution.
Some of the strongest support from the former governor Cuomo came from the Upper East Side of Manhattan, the home of many of the highest earners and business titans in New York City. The former secretary of the Ministry of Housing and Urban Development in Clinton administration received more than seven of 10 votes in several districts in this neighborhood from Wednesday.
In 2013, Bill de Blasio's victory also triggered the fear in the financial elite, but he was able to alleviate the fears by meeting the managing directors directly before carrying out comprehensive reforms.
“We had Mayor Deblasio for eight years. New York is really strong. I hope that the same thing will happen,” said Laffont.