Hedge funds will go to great lengths in pursuit of profits, whether it is by counting cars in satellite photos of parking lots or shipping gold across the Atlantic. Building a compiler—a piece of software that turns human-written code into programs a computer can execute—for your homegrown language? That still raises eyebrows. More
An investor’s desire to minimise his dues is nothing new. “The avoidance of taxes”, said John Maynard Keynes, “is the only intellectual pursuit that still carries any reward”. What is new is the scale and speed at which the desire is transforming financial intermediaries, wealth management and even the notion of passive investing. Once the preserve of the ultra-rich, the drive to minimise taxes has reshaped America’s financial system. More
Chinese Premier Li Qiang’s speech comes amid a pullback of U.S. support for Western-led institutions such as the World Bank and the IMF.
China launched a regional development program called the Belt and Road Initiative in 2013.
The AIIB provides loans to developing countries, largely for infrastructure projects such as water supply and transportation.
Chinese Premier Li Qiang spoke at the opening ceremony of the ASEAN-China-GCC Economic Forum in Kuala Lumpur, Malaysia, on May 27, 2025.
Sopa Images | Lightrocket | Getty Images
BEIJING — Chinese Premier Li Qiang on Thursday urged the Asian Infrastructure Investment Bank to increase its support for Beijing’s Belt and Road Initiative.
His speech at the opening ceremony of the bank’s 10th annual meeting comes amid a pullback of U.S. support for Western-led institutions such as the World Bank and the International Monetary Fund, which U.S. President Donald Trump claims unfairly benefit other nations.
“I hope that the AIIB will stay committed to open regionalism and persevere in promoting connection and communication among Asian countries and countries across the world,” Li said in Mandarin through an official English translation.
“It is important to strengthen the synergy between the bank and the Belt and Road Initiative and Global Development Initiative,” Li said, referring to two Beijing-led programs.
Premier Li’s “comments signal China’s ongoing attempts to capitalize on the chaos caused by Trump’s trade and economic policies,” said Stephen Olson, a visiting senior fellow at the Institute of Southeast Asian Studies and a former U.S. trade negotiator.
“China is also very aware that the U.S. is trying to pressure countries to tilt away from China (as we saw in the U.K. trade deal) and this is part of its strategy to counteract those efforts,” Olson said in an email.
When asked by CNBC about Li’s comments, outgoing-AIIB President Jin Liqun said at a press conference that China would like to improve the quality of the Belt and Road projects, and that the Chinese government has been “impressed” by the “high quality” of the AIIB’s work.
Jin said the AIIB assesses projects proposed by its 110 members. China has the largest stake in the multilateral bank, with a 26.5% voting share.
While the U.S. isn’t a member of AIIB, the U.K., France, Germany are listed among the 110 members of the China-led bank, as are Russia, Israel, Singapore and Vietnam.
Responding to a question about the bank’s work in the Middle East, Jin said the bank would be “very, very happy” to contribute to a needed restructuring of economies in the region, as well as improved education for young people. He did not directly address the Israel-Iran conflict.
Under Chinese President Xi Jinping, now in his third term, China launched a regional development program called the Belt and Road Initiative in 2013.
The program is widely viewed as Beijing’s effort to boost its global influence through the development of rail, sea and other transportation routes connecting Asia to Europe and Africa. Critics argue that China’s massive infrastructure project has forced developing nations to take on high debt while benefiting Chinese companies, often state-owned entities.
Xi subsequently announced a broader “Global Development Initiative” in 2021 to promote Beijing-led efforts around poverty alleviation, public health and food security, aligned with the UN’s 2030 Sustainable Development Goals.
The AIIB this week announced that Zou Jiayi, a former Chinese vice finance minister, will become its next president starting in January. Zou also previously represented China as an alternate governor at the World Bank. The former anti-corruption official is also a member of the ruling Chinese Communist Party’s Central Committee, the third-highest circle of power in the country.
AIIB’s current president, Jin Liqun, has served two five-year terms since the bank’s founding and is also a former Chinese vice finance minister.
Indonesia, a founding member of AIIB, has worked with the bank on 14 projects totaling over $5.1 billion, the country’s finance minister, Sri Mulyani Indrawati, said in a closing speech at the same event on Thursday.
“Indonesia is not only generating operating revenue for AIIB, but we [are] also providing enormous experience as well as strong participation,” Indrawati said.
“AIIB is no longer just an emerging bank. It is now a global force for development.”
The AIIB provides loans to developing countries, largely for infrastructure projects such as water supply and transportation. The Beijing-headquartered AIIB said it approved $8.4 billion in financing last year, bringing the total to over $60 billion since its launch in 2016.
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On Wednesday, Li urged global business leaders and senior government representatives to collaborate and avoid turning trade into a political or security issue. Engaging in the international economy is a way of “reshaping the rules and order,” he said, via an official English translation.
He was speaking at the World Economic Forum’s annual China conference, dubbed “Summer Davos,” held this year in Tianjin. Li subsequently met with business executives, including JD.com Founder and Chairman Richard Liu.
China’s Minister of Commerce Wang Wentao and Zheng Shanjie, head of the country’s economic planning agency, the National Development and Reform Commission, attended Li’s speech and meeting with businesses on Wednesday, according to state media. More
New York mayoral candidate, State Rep. Zohran Mamdani (D-NY) speaks to supporters during an election night gathering at The Greats of Craft LIC on June 24, 2025 in the Long Island City neighborhood of the Queens borough in New York City.
Michael M. Santiago | Getty Images
To say Wall Street isn’t a fan of Zohran Mamdani would be an understatement.
In fact, high-profile investors and business leaders in the Big Apple are up in arms about the stunning win by the democratic socialist in the primary to win the Democratic nomination to serve as the next New York City mayor. The three-term Assemblymember’s potential victory in the November general election could bring what the Street hates most — tax hikes and tighter regulation threatening corporate and investment interests.
Philippe Laffont, founder of hedge fund Coatue Management, told CNBC that a Mamdani win could trigger another exodus of wealthy investors. Since the pandemic, a wave of wealthy residents and institutional firms have fled the nation’s largest city for low-tax states such as Florida and Texas.
“Some people are going to, for sure, go,” Laffont said on CNBC’s “Squawk Box” Wednesday after former New York Governor Andrew Cuomo conceded the Democratic nomination. “It’s not quite done yet. There’s still an election. Maybe Cuomo will re-enter as an independent.”
Mamdani’s emphasis on socialism and redistribution of wealth runs counter to Wall Street’s preference for unbridled capitalism and policies that support growth, such as deregulation and low taxes. The 33-year-old has supported taxing the ultra-wealthy, financial transactions and passive income like dividends. He has also endorsed a state-level wealth tax and increased marginal income tax rates on high earners.
Hedge fund magnate Bill Ackman said he woke up Wednesday “a bit depressed” by Mamdani’s victory. The Pershing Square chief said he’s now looking at the logistics for another candidate, not himself, to run.
Lawrence Summers, the former Treasury Secretary and president of Harvard University, also expressed his distaste Mamdani’s nomination.
“I am profoundly alarmed about the future of the [Democratic National Committee] and the country, by yesterday’s NYC anointment of a candidate who failed to disavow a ‘globalize the intifada’ slogan and advocated Trotskyite economic policies,” Summers said in a post on X.
‘Suicide by Mayor’
Part of the stock market has already felt the pain from the prospect of a Mamdani-led NYC. Shares of New York regional bank Flagstar, with exposure to the New York real estate market, sank nearly 4% Wednesday. Office-focused real estate stocks also suffered, with SL Green Realty down more than 6% and Vornado Realty Trust down nearly 7%.
Mamdani advocates for universal rent control, and the New York City mayor has the power to appoint representatives to the regulatory board that oversees rent-controlled and rent-stabilized apartments. A pause on rent increases would hurt the profits of multi-family rental properties.
Roughly one million New York City apartments are rent stabilized but only about 20,000 are still rent controlled.
“It appears that NYC is electing to commit suicide by Mayor,” Jim Bianco, president and macro strategist at Bianco Research, said in a post on X Tuesday evening.
‘Terror is the feeling’
Mamdani’s solution to most problems relies on an ideological commitment to taxpayer-funded spending, and that leaves the business community concerned, said Kathryn Wylde, president of the Partnership for New York City, a nonprofit group of CEOs founded by David Rockefeller in 1979.
“Terror is the feeling,” Wylde said on CNBC Tuesday morning as voters headed to the polls, although she noted that “there’s much positive in New York. But that could quickly shift if we lose confidence in the mayor.”
Wylde said the state government, led by Gov. Kathy Hochul, should keep the city out of a “disaster” scenario. She acknowledged concerns about the high cost of living and doing business, but said that raising taxes isn’t the solution.
Some of former Governor Cuomo’s strongest support came from the Upper East Side of Manhattan, the home to many of New York City’s highest earners and business titans. The former Secretary of the Department of Housing and Urban Development in the Clinton administration received more than seven out of every 10 first-choice votes in several of the precincts in this neighborhood, according to Associated Press data as of Wednesday.
In 2013, Bill de Blasio’s win also triggered anxiety among the financial elite, but he was able to ease fears by meeting business leaders directly before implementing sweeping reforms.
“We had Mayor DeBlasio for eight years. New York is really strong. I’m hopeful the same will happen,” Laffont said. More
Health and Human Services Secretary Robert F. Kennedy Jr.’s revamped government panel of vaccine advisors will start a review of long-approved shots in the U.S.
Kennedy removed and replaced members of the Advisory Committee on Immunization Practices, or ACIP, which advises the Centers for Disease Control and Prevention.
It is unclear how Kennedy’s new members, including vaccine critics such as Dr. Robert Malone, will affect the panel’s shot recommendations.
A general view of the Centers for Disease Control and Prevention (CDC) headquarters in Atlanta, Georgia.
Tami Chappell | Reuters
Health and Human Services Secretary Robert F. Kennedy Jr.’s revamped government panel of vaccine advisors will start a review of long-approved shots in the U.S., the leader of the group said Wednesday in the first meeting with new members.
The panel, called the Advisory Committee on Immunization Practices, or ACIP, will also review the childhood vaccination schedule. Earlier this month, Kennedy in a stunning step removed and replaced all members of the group, which advises the Centers for Disease Control and Prevention.
ACIP members are independent medical and public health experts who review vaccine data and make recommendations that determine who is eligible for shots and whether insurers should cover them, among other efforts. But Kennedy appointed some vaccine critics, including Dr. Robert Malone, who could shape immunization policy and affect availability in the U.S.
ACIP will create new work groups, which are staff that review published and unpublished data and develop recommendation options to present to the committee, Dr. Martin Kulldorff, the new chair of the panel, said during the meeting. One new work group will review the childhood vaccine schedule, while another will examine shots that have not been subject to reviews in more than seven years, he said.
The latter group may examine the universally recommended hepatitis B vaccine and ask whether it is “wise” to administer the shot to every newborn before they leave the hospital, Kulldorff added. He also said the group could review the combination measles, mumps and rubella shot, along with the chickenpox jab. Vaccine skeptics have questioned the safety of both shots.
“This was supposed to be a regular practice of the ACIP, but it has not been done in a thorough and systematic way. We will change that,” Kulldorff said.
Dr. Sean O’Leary, an infectious disease expert with the American Academy of Pediatrics, told reporters later Wednesday that reviewing the vaccine schedule has been “an anti-vaccine trope for many, many years.” O’Leary said many vaccines are “essentially always reviewed in real-time through a number of different mechanisms,” including several safety surveillance and disease surveillance tools.
The American Academy of Pediatrics did not participate in the ACIP meeting on Wednesday because “we view it as illegitimate,” O’Leary said. He added that the organization will continue to provide vaccine schedules for children independently of the CDC.
“What we’re seeing today, and if this were to continue, the medical providers, public health professionals, the entire country is no longer going to trust ACIP. That’s clear,” O’Leary said, saying the goal is to reinstate the 17 members that Kennedy fired and return to “a normal process.”
During a full-day meeting Wednesday in Atlanta, the panel evaluated data on Covid-19 vaccines and RSV shots. A vote on recommendations for the latter was postponed until the group’s meeting on Thursday.
Also on Thursday, the group will review data on shots for the flu and other diseases.
The CDC director has to sign off on those recommendations for them to become official policy.
“Vaccines are not all good or bad,” Kulldorff said in opening remarks.
“If you think that all vaccines are safe and effective and want them all, or if you think that all vaccines are dangerous and don’t want any of them, then you don’t have much use for us. You already know what you want,” said Kulldorff, a biostatistician and epidemiologist who questioned lockdowns and other public health measures early in the Covid-19 pandemic.
“But if you wish to know which vaccines are suitable for you and your children and at what ages, then we will provide you with evidence-based recommendations,” he added.
Ahead of the meeting, one of Kennedy’s new appointees stepped down from the panel.
In a statement, an HHS spokesperson said Dr. Michael Ross withdrew from ACIP during a mandatory review of each member’s financial holdings, without providing further details. It is unclear what his financial holdings are.
Ross is a clinical professor of obstetrics and gynecology and has served on another CDC advisory panel focused on breast and cervical cancer.
A CDC web page on conflict of interest disclosures for ACIP members does not appear to list any for Kennedy’s members, apart from Dr. Cody Meissner.
What new panel members have said about vaccines
Kennedy’s eight new members include some well-known vaccine critics, such as Dr. Robert Malone.
Malone bills himself as having played a key role in the creation of mRNA vaccines, but has gained a large following for making baseless and disproven claims about Covid-19 shots.
Another new member, Retsef Levi, has pushed to stop giving mRNA vaccines, falsely claiming in a post on X that they cause “serious harm including death, especially among young people.”
Another member, Vicky Pebsworth, is a nurse on the board of The National Vaccine Information Center. That organization has been widely criticized as a leading source of misinformation and fearmongering about immunization.
During the meeting on Wednesday, Pebsworth revealed that she owns stock and health-care sector funds that include vaccine manufacturers. But she said her holdings are under the amount the government considers to be a conflict of interest, allowing her to participate in the ACIP meeting.
Kennedy fired previous ACIP members for having what he called “persistent conflicts of interest.” But all HHS agencies and their advisory panels have had rigorous policies for conflicts of interest, and there have been no related issues for years. More
The Federal Reserve proposed easing a key capital rule for banks, and central bank officials opened the matter for public comment Wednesday.
The enhanced supplementary leverage ratio regulates the quality and quantity of capital banks should keep on their balance sheets.
In recent years as bank reserves have grown, Wall Street executives and Fed officials have sought to roll back the requirements.
Chairman of the US Federal Reserve Jerome Powell speaks alongside Michelle Bowman (L), Board Vice Chair for Supervision, Lisa Cook (2nd R), Board Governor, and Adriana Kugler (R), Board Governor, as he chairs a Federal Reserve Board open meeting discussing proposed revisions to the board’s supplementary leverage ratio standards at the Federal Reserve Board building in Washington, DC, on June 25, 2025.
Saul Loeb | Afp | Getty Images
The Federal Reserve on Wednesday proposed easing a key capital rule that banks say has limited their ability to operate, drawing dissent from at least two officials who say the move could undermine important safeguards.
Known as the enhanced supplementary leverage ratio, the measure regulates the quantity and quality of capital banks should be keeping on their balance sheets. The rule emanated from a post-financial crisis effort to ensure the stability of the nation’s largest banks.
However, in recent years as bank reserves have built and concerns have grown over Treasury market liquidity, Wall Street executives and Fed officials have pushed to roll back the requirements. The regulations targeted treat all capital the same.
“This stark increase in the amount of relatively safe and low-risk assets on bank balance sheets over the past decade or so has resulted in the leverage ratio becoming more binding,” Fed Chair Jerome Powell said in a statement. “Based on this experience, it is prudent for us to reconsider our original approach.”
The Fed board put the proposal open for a 60-day public comment window.
In its draft form, the measure would call for reducing the top-tier capital big banks must hold by 1.4%, or some $13 billion, for holding companies. Subsidiaries would see a larger drop, of $210 billion, which would still be held by the parent bank. The standard applies the same rules to so-called globally systemic important banks as well as their subsidiaries.
The rule would lower capital requirements to range of 3.5% to 4.5% from the current 5%, with subsidiaries put in the same range from a previous level of 6%.
Current Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller released statements supporting the changes.
“The proposal will help to build resilience in U.S. Treasury markets, reducing the likelihood of market dysfunction and the need for the Federal Reserve to intervene in a future stress event,” Bowman stated. “We should be proactive in addressing the unintended consequences of bank regulation, including the bindingness of the eSLR, while ensuring the framework continues to promote safety, soundness, and financial stability.”
On the whole, the plan seeks to loosen up banks to take on more lower-risk inventory such as Treasurys, which are now treated essentially the same as high-yield bonds for capital purposes. Fed regulators essentially are looking for the capital requirements to serve as a safety net rather than a bind on activity.
However, Governors Adriana Kugler and Michael Barr, the former vice chair of supervision, said they would oppose the move.
“Even if some further Treasury market intermediation were to occur in normal times, this proposal is unlikely to help in times of stress,” Barr said in a separate statement. “In short, firms will likely use the proposal to distribute capital to shareholders and engage in the highest return activities available to them, rather than to meaningfully increase Treasury intermediation.”
The leverage ratio has come under criticism for essentially penalizing banks for holding Treasurys. Official documents released Wednesday say the new regulations align with so-called Basel standards, which set standards for banks globally.
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Southwest CEO Bob Jordan said the company is open to making even more changes to woo customers who might be flying on competitors.
Airport lounges, long-haul international flights and more premium class are all on the table, Jordan told CNBC.
The Dallas-based airline is in the midst of its biggest changes in 50 years of flying, as it’s ditched open seating and is starting to charge some customers to check luggage.
A Southwest Airlines Boeing 737 MAX8 departs from San Diego International Airport to Chicago on March 4, 2025 in San Diego, California.
Kevin Carter | Getty Images News | Getty Images
ARLINGTON, Texas — Southwest Airlines is considering airport lounges, more premium seating and even long-haul international flights to win over high-spending customers, CEO Bob Jordan said Wednesday.
“Whatever customers need in 2025, 2030, we won’t take any of that off the table. We’ll do it the Southwest way but we’re not going to say ‘We would never do that,'” Jordan said in an interview with CNBC at an airport industry conference. “We know we send customers to other airlines because there’s some things you might want that you can’t get on us. That includes things like lounges, like true premium, like flying long-haul international.”
Southwest is in the middle of a transformation. That has included undoing some of its policies like open seating, a uniform cabin and allowing all customers to check two bags for free, things that had set it apart from rivals in much of its 54 years of flying.
But it has faced pressure from competitors, and an activist investor last year pushed the carrier to increase revenue. And airfare in the U.S. has dropped.
Southwest and other carriers pulled their 2025 forecasts earlier this year, citing economic uncertainty. Jordan said Wednesday that the airline is continuing to see cheaper fares.
“The summer is generally never on sale, and the summer is heavily on sale right now,” he said.
Despite making major changes to its business model, Jordan said the carrier hasn’t seen customers defect to other airlines since it introduced no-frills basic economy tickets and bag fees late last month, policies rivals already had.
But making changes at the high end is important, too, he said.
Competitors like Delta Air Lines, United Airlines and American Airlines have added more luxury tourism destinations and roomier, more expensive seats, and they’ve also invested heavily in airport lounges. For example, earlier Wednesday, American unveiled plans to nearly double its lounge space at its Miami International Airport hub.
Jordan said it’s “way too soon to put any specifics” on potential changes, but he called out Southwest stronghold Nashville International Airport — where the airline has a more than 50% market share, according to airport data — as a place where customers are hungry for luxury.
“Nashville loves us, and we know we have Nashville customers that want lounges. They want first class. They want to get to Europe and they’re going to Europe,” he said.
But getting those things means those customers have to book on another airline, which could make them more likely to add that rival’s co-branded credit card to their wallets, too, he said.
Read more CNBC airline news
“I want to send fewer and fewer customers to another airline,” he said.
Jordan said it’s also too early to say whether Southwest will make the shift to buying longer-haul aircraft, which it would need to go to Europe; it’s relied on the Boeing 737 for more than half a century. Southwest has been forging international partnerships — Icelandair and China Airlines, so far— but a Southwest plane landing in Europe at some point is on the table, he said.
“No commitment, but you can certainly see a day when we are as Southwest Airlines serving long-haul destinations like Europe,” he said. “Obviously you would need a different aircraft to serve that mission and we’re open to looking at what it would take to serve that mission.”
In the nearer term, Southwest is still awaiting deliveries of Boeing 737 Max 7s, the smallest plane in the Max family, which still hasn’t won Federal Aviation Administration certification. Jordan said the manufacturer has made progress with more consistent deliveries recently, but Southwest doesn’t expect to fly the Max 7 in 2026. More
If you could invent something to fulfill an economist’s dream, it would look an awful lot like a prediction market. A world where every uncertain future can be priced, hedged and insured against? Kenneth Arrow and Gérard Debreu would approve. A market mechanism to co-ordinate the decentralised wisdom of crowds, ensuring the accuracy of such prices? Adam Smith and Friedrich Hayek sought just that. More
