- In today’s CEO Daily: Diane Brady previews election day in New York City.
- The big story: OpenAI’s $38 billion AWS deal.
- The markets: Down across the board.
- Plus: All the news and watercooler chat from Fortune.
Good morning. It’s election day here in New York City. President Donald Trump has endorsed former New York Governor Andrew Cuomo for mayor, calling on New Yorkers to defeat “Communist” Zohran Mamdani in a post on Truth Social. But in my conversations with business leaders over the past few weeks, I’ve sensed a more nuanced stance on the 34-year-old Democratic Socialist who’s now leading in the polls. As one Wall Street executive pointed out to me in Miami: “He’s changed his mind on some things (such as defunding the police) and he needs to get support on others (such as raising state tax rates), so let’s see how he operates.”
Here are some issues on the radar for business:
Tax Hikes – Mamdani has said he can raise $10 billion through a 2% income tax surcharge on salaries over $1 million, raising the state’s top corporate tax rate to 11.5%, transforming procurement and collecting almost $700 million that the city is owed. But Mamdani himself has admitted that the bulk of these moves require legislative action beyond his control.
Business Exodus – Dave Portnoy of Barstool Sports has threatened to move his New York City headquarters if Mamdani is elected. That would impact a little more than 300 people. But Jamie Dimon of JPMorgan, which has 24,000 employees in the city, recently told Fortune editor-in-chief Alyson Shontell that he’d help Mamdani or any mayor who wins the election. “You know, we survived [Mayor] Bill de Blasio,” he said. “New York will survive.”
City-run Stores – If you want to bet on the prospects for Mamdani’s plan to open a government-run grocery store in every borough, talk to one of my favorite people to interview: John Catsimatidis, who runs Gristedes and D’Agostino Supermarkets in New York. Opening a business with 2% margins in a city that already gets top scores for equitable access to groceries sounds like a losing proposition. Catsimatidis has threatened to close stores if Mamdani wins. Maybe he’ll go back to his earlier offer to give the mayor a store to run.
Real Estate – Mamdani’s promise of a rent freeze for 2 million New Yorkers in rent-stabilized apartments means a rent hike for everyone else. That, plus the prospect of tax hikes, is reviving interest in real estate in the city’s affluent suburbs. But affordability is a real issue as CEOs have told me it’s harder to attract talent to the city because of the cost of living, especially for startups and industries like fashion and advertising that can’t offer Wall Street salaries.
Gen Z – Frustrated over housing costs, career opportunities and more, young New Yorkers want to change the status quo. That’s not unique to New York, of course, and CEOs are concerned that the next generation of leaders doesn’t trust that business or government is on their side. If Mamdani can ignite enthusiasm for civic engagement among Gen Z, that could be a boon for everyone.
Just a reminder to join my colleagues Geoff Colvin and Sheryl Estrada for a conversation on “Optimizing for a Human–Machine Workforce,” next Thursday, Nov. 13, from 11:00 AM to 12:00 Noon ET. They’ll be joined by Deloitte’s Global AI Leader Nitin Mittal and INRIX CFO Thadd Stricker. You can register here.
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Contact CEO Daily via Diane Brady at diane.brady@fortune.com
