Business

The average rate on the 30-year fixed mortgage jumped to 6.33% on Thursday.
Markets had already priced in a cut from the Federal Reserve, but they weren’t expecting the Fed chairman’s commentary.

An aerial view of homes in a neighborhood on Aug.27, 2025 in San Francisco, California.
Justin Sullivan | Getty Images

While the Federal Reserve cut its benchmark interest rate this week, mortgage rates responded by doing just the opposite.
The average rate on the 30-year fixed mortgage has jumped 20 basis points since Chairman Jerome Powell announced the cut on Wednesday and held a news conference, according to Mortgage News Daily.

This happened the last time the Fed lowered its rate as well, and the reason is pretty simple: the bond market had already priced in a cut, but it didn’t like the commentary from Powell.
On Tuesday, the average rate on the 30-year fixed had fallen to 6.13%, matching the recent low on Sept. 16, which was the day before the Fed announced its last cut, and marking the lowest level in a year.
Then this week, after the Fed said it would reduce rates and Powell answered questions in a news conference, that rate shot up 14 basis points on Wednesday and rose another 6 basis points on Thursday, to 6.33%, an even 20 basis points higher than where it was Tuesday. The last time around in September, the rate on the 30-year fixed mortgage went even higher, to 6.37%.

Get Property Play directly to your inbox

CNBC’s Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox.
Subscribe here to get access today.

“The market’s enthusiasm for 3 Fed rate cuts in 2025 had grown a bit too large for the Fed’s liking,” said Matthew Graham, chief operating officer at Mortgage News Daily, in a client note. “The market was nearly 100% certain of another cut in December. The Fed was not as certain, and Powell made it a point to say so yesterday. The result is a mild re-set in yields back to levels that are more consistent with a December cut being a solid possibility, but not a full lock.” 
The recent drop in rates had caused a run on refinances, with those applications up 111% last week year over year, according to the Mortgage Bankers Association. Lower rates did not, however, move the needle much for potential homebuyers. More

Global automakers are bracing for a potential shortage of automotive semiconductor chips.
The industry has faced ongoing supply chain issues since 2020, but this time the disruption fears are sparked by geopolitical tensions between the U.S. and China.
The problem involves chips from Netherlands supplier Nexperia, which is owned by Chinese company Wingtech Technology Co but was taken over by the Dutch government.
Honda Motor was the first known automaker to say it’s reducing production.

A Honda sedan moves down the assembly line on Jan. 28, 2025 at the automaker’s assembly plant in Marysville, Ohio. 
Michael Wayland / CNBC

Global automakers are once again bracing for production disruptions due to a potential shortage of automotive semiconductor chips, this time sparked by the Dutch government amid geopolitical tensions between the U.S. and China.
Honda Motor became the first known automaker this week to reduce production due to the problem that involves chips from Netherlands supplier Nexperia, which is owned by Chinese company Wingtech Technology Co.

The industry was hopeful that a meeting this week between President Donald Trump and Chinese leader Xi Jinping in Asia would provide some relief, but no resolution on the chips issue has been announced.
Volkswagen on Thursday reportedly said it has until at least next week before its supplies impact production, while other major automakers have said they are monitoring the situation around the clock, attempting to mitigate disruptions.
“The chip situation from Nexperia, we have a cross-functional ‘war room’ in the building where I’m sitting that has this as [a] primary job,” Stellantis CEO Antonio Filosa told investors during a quarterly call Thursday. “And every day we are pushing actions and projects to extend our period. There is a day-by-day management of what is an industrywide global issue.”

U.S. President Donald Trump and Chinese President Xi Jinping shake hands as they depart following a bilateral meeting at Gimhae Air Base on October 30, 2025 in Busan, South Korea.
Andrew Harnik | Getty Images

Such “war rooms” have become a regular practice in the automotive industry amid supply chain disruptions, which have become more common since the Covid pandemic rattled production and deliveries of many parts, including chips, starting in 2020.
Several automotive industry insiders confirmed to CNBC that war rooms have been established in their companies, as they look into alternative purchasing methods. They included working with major suppliers in an attempt to find alternative sources as well as buying on the open market.

“Suppliers across the motor vehicle industry are working to understand the potential effects on production and supply continuity,” MEMA, the largest vehicle supplier association in the U.S., said in an emailed statement. “Chips and diodes are foundational to automotive components and systems, from infotainment systems to door handles, to steering and braking. Even the absence of a single diode or chip can disrupt the manufacture of vehicles.” 

Nexperia

The situation involving Nexperia began late last month, when the Dutch government took control of the company, in what was seen as a highly unusual move, reportedly after the U.S. raised security concerns.
In making the decision, the Dutch government cited fears that tech from the company — which specializes in the high-volume production of chips used in automotive, consumer electronics and other industries — “would become unavailable in an emergency.”
China responded by blocking exports of the firm’s finished products, sparking alarm in Europe’s auto industry.
German automakers are especially sensitive to Nexperia-related disruptions because they rely heavily on large, domestic suppliers, known as “Tier 1s,” and local production facilities and companies, such as Nexperia, despite much of its manufacturing moving to China.
The European Automobile Manufacturers’ Association said this week that carmakers were close to closing production lines because of the chip shortage, which comes four years after a shortage of such parts amid the coronavirus pandemic.

A close-up view of the Nexperia plant sign in Newport, Wales on April 1, 2022.
Matthew Horwood | Getty Images News | Getty Images

“This means assembly line stoppages might only be days away. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation,” ACEA Director General Sigrid de Vries said in a statement.
The chips affected are legacy semiconductors used in basic vehicle functions such as windshield wipers and window controls — parts that lack sufficient alternative sources, according to S&P Global Mobility.
A Nexperia spokesman referred to a previous statement from the company, which summarized the ongoing situation and said it is seeking an exemption from the export restrictions and working to mitigate the impacts of the decision.
A Wingtech spokesperson on Thursday condemned the Dutch government’s actions, saying the company “will robustly defend its rights and use every legal avenue to do so.”
“Only by restoring full control and ownership rights to the company’s rightful shareholders and management, and by ceasing political interference in corporate governance, can the Dutch government begin to repair the damage to its reputation, de-escalate international tension, and safeguard its own and European economic security,” the spokesperson said via an emailed statement.

Fluid situation

Honda’s production cuts impacts include all of its main North American plants, including large vehicle assembly and supporting facilities across the U.S., Canada and Mexico.
“We are currently managing an industrywide semiconductor supply chain issue, making strategic adjustments to production as necessary to carefully manage the available supply of parts and meet the needs of our customers,” Honda said Thursday in an emailed statement, calling it a “fluid” situation.
The impacts are expected to continue to spread to other automakers if a resolution is not found.
Ford Motor CEO Jim Farley last week said the chip problem was at the forefront of conversations when he made a trip to Washington, D.C, earlier this month. He called it a “political issue,” saying the company is working with the U.S. and China administrations to resolve it.
“It’s an industrywide issue. A quick breakthrough is really necessary to avoid fourth-quarter production losses for the entire industry,” said Farley, adding that automakers have gotten “really good” at maximizing component purchases such as chips following the crisis in 2021.
General Motors CEO Mary Barra made similar comments last week, calling it an “industry issue” that will hopefully be resolved soon.
“While this has the potential to impact production, we have teams working around the clock with our supply chain partners to minimize possible disruptions. The situation is very fluid and we will provide updates throughout the quarter as appropriate,” she said during the company’s quarterly earnings call.
Other automotive executives from Volvo, Mercedes-Benz and more have also shared similar thoughts with investors and the media.
“This is a politically induced situation … which means that the solution to this, or the resolution to this, resides in the political space, primarily between the United States and China, in this case, with Europe kind of caught in the middle,” Mercedes-Benz CEO Ola Källenius said Wednesday during an earnings call. More

Chipotle’s stock tumbled after the company cut its full-year forecast for same-store sales.
At least five Wall Street analysts have lowered their price targets for shares of the chain after it reported third-quarter earnings.
Fast-casual peers Sweetgreen and Cava also saw their stocks sink.

A Chipotle logo is displayed on a sign at a shop on June 1, 2025 in Washington, DC.
Kevin Carter | Getty Images

Shares of Chipotle Mexican Grill tumbled as much as 19% in trading Thursday after the company cut its full-year same-store sales forecast for the third straight quarter.
Including Thursday’s move, the stock has fallen 45% this year, dragging its market value down to roughly $43 billion. At least five Wall Street analysts have cut their price targets for the stock after the report, anticipating investors’ displeasure with the burrito chain’s shrinking traffic and gloomy outlook.

“It’s difficult to call a bottom for sales given the multitude of factors weighing on demand,” Citi analyst Jon Tower wrote in a research note, revising his price target from $54 to $44 per share.
In the third quarter, Chipotle’s same-store sales rose 0.3%, but the chain’s traffic fell. While many restaurant chains have suffered in recent years as diners wracked by inflation eat out less, analysts were unsure if the chain’s value perception contributed to Chipotle’s issues. While its burritos and bowls average about $10, consumers often assume its average prices are closer to the $15 entrees of its fast-casual peers, executives said on the conference call.
“While we knew that traffic had slowed for Chipotle into the fall, we were surprised by the magnitude that was reported last night and the resulting deleverage this produced,” BTIG analyst Pete Saleh wrote in a note. “We’re admittedly perplexed by how suddenly this traffic weakness came about, and not convinced affordability concerns are the main driver here.”

CEO Scott Boatwright said on Wednesday’s earnings conference call that diners are visiting less frequently, particularly those between the ages of 25 and 35 years old, a key demographic for the company. Same-store sales have worsened so far in October, and the company is now projecting that sales at restaurants open at least a year will shrink in the fourth quarter and fall by a low-single digit percentage for the full year.
“We are very concerned that the menu and marketing actions taken so far have not sufficiently offset the traffic retraction,” Bernstein analyst Danilo Gargiulo said.

Still, most analysts attributed the slowdown to industrywide challenges, not company-specific issues that Chipotle needs to address. Unemployment, increased student loan repayments and slower real wage growth accounting for inflation are weighing on consumers’ spending, according to Boatwright.
“We believe the brand remains fundamentally healthy (stable share of customer restaurant wallet) and expect a return to growth as the macro improves,” Bank of America Securities analyst Sara Senatore wrote in a note to clients.
Chipotle’s weak performance bodes poorly for its fast-casual peers, like Sweetgreen and Cava. Morgan Stanley analyst Brian Harbour called fast-casual restaurants “This Season’s Halloween Scare” in his research note covering Chipotle’s earnings report.
Shares of Sweetgreen fell 6% in trading Thursday, while Cava stock was down 8%. Both are slated to report their third-quarter results next week.
Correction: The company is now projecting that sales at restaurants open at least a year will fall by a low-single digit percentage for the full year. An earlier version misstated the percentage move. More

Super PACs that support Andrew Cuomo and oppose Zohran Mamdani for New York City mayor have raised over $40 million.
Bill Ackman, Ronald Lauder, William Lauder, Barry Diller and Dan Loeb have all made large donations, as well as several non-New Yorkers like Steve Wynn and Alice Walton.
Mamdani, a self-described Democratic socialist, is running on a platform that includes rent freezes and free buses, paid for in part by an additional 2% tax on New Yorkers who make more than $1 million a year.

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
Super PACs supporting Andrew Cuomo and opposing Zohran Mamdani in the New York City mayoral race have raised over $40 million, with millions coming from prominent billionaires and family dynasties, according to election filings.

New York billionaires Bill Ackman, Ronald Lauder, William Lauder, Barry Diller and Dan Loeb have all made large donations to a special committee called Fix the City that supports independent candidate Andrew Cuomo, according to election filings. Other non-New Yorkers giving to the group include casino mogul Steve Wynn and Alice Walton, the world’s richest woman.
The wave of big money highlights the growing fear of a Mamdani win by many of New York’s wealthy and national conservatives. A self-described Democratic socialist, Mamdani’s platform includes a rent freeze, free buses, free childcare for all and government-run grocery stores. To pay for the programs, he’s proposed an additional 2% tax on New Yorkers who make more than $1 million a year.
Even as Mamdani maintains a double-digit lead in most of the polls, a vast money machine built on several pro-Cuomo PACs has gained steam as Election Day nears. Fix the City is by far the largest of the so-called “independent expenditure committees,” political fundraising groups akin to super PACs that can accept unlimited funds and were created to get around the new York City’s campaign finance limits. They are not tax deductible to the donors and are not permitted to coordinate their efforts with a specific candidate’s campaign.
According to filings, Fix the City has raised over $32 million, with many large gifts coming after Mamdani’s primary win in June. Two other anti-Mamdani committees include Defend NYC, which has raised $2.5 million, and New Yorkers for a Better Future, which has raised $1.5 million.

Get Inside Wealth directly to your inbox

A PAC supporting Mamdani, called New Yorkers for Lower Costs, has raised just under $2 million. The only known wealth donor to contribute to that special committee is Elizabeth Simons, the daughter of the late billionaire hedge fund investor James Simons.

Many of the largest donations to Fix the City came before the primary, including two gifts in June from Michael Bloomberg totaling $8.3 million. Bloomberg, who met with Mamdani in September to offer advice, has not made any donations to the group since.
Many billionaires have ramped up their giving after the primary. Joe Gebbia, co-founder of Airbnb, Tesla board member and White House chief design officer, gave two gifts of $1 million each to two pro-Cuomo PACs in October.
Gebbia declined to comment on the gifts, as did several other billionaires mentioned in this piece. Others could not be reached for comment. 

Zohran Mamdani, Democratic candidate for mayor speaks during a press conference celebrating his primary victory with leaders and members of the city’s labor unions on July 2, 2025 in New York.
Angela Weiss | Afp | Getty Images

The Lauder family, heirs to the Estee Lauder fortune, have given over $2 million to anti-Mamdani committees.  Ronald Lauder gave $750,000 to Fix the City in September, while William Lauder, chair of The Estee Lauder Companies, gave $500,000 in late August. Other members of the Lauder family have given more than $750,000 combined since June.
More than a half dozen members of the Tisch family, whose fortune stretches from real estate and hospitality to energy, packaging and sports, have given to Fix the City. Abigail, Louise, Maude and Laurie Tisch each gave $100,000 in October, while Alice Tisch gave $500,000. Elizabeth, Jonathan and Merryl Tisch also donated to the PAC after the primary. 
The Tisch family donations carry added symbolism since since Jessica Tisch, daughter of Loews Corp. CEO James Tisch, is the popular New York City police commissioner who has overseen a continued drop in crime in the city. Mamdani has said he plans to keep Tisch in her role as commissioner but has also called for an overhaul of policing and a new “department of public safety.”  
Many of the large donors backing Cuomo are hedge funders. Bill Ackman, who supported President Donald Trump’s re-election last year, gave $250,000 to Fix the City in October, following two gifts of $250,000 each before the primary. Dan Loeb of Third Point gave $100,000 in October after a $100,000 donation in June.
Some of the larger donors appear to have only loose ties to New York City.
Steve Wynn, the longtime Republican donor who listed his address as Las Vegas, gave $500,000 to Fix the City in October. Alice Walton, the world’s richest woman, listed her address as a post office box in Bentonville, Arkansas — Walmart’s hometown — when she made a $100,000 donation in August, on top of a $100,000 donation in April. Walton has little history of political giving in New York, beyond donating to pro-charter school groups and candidates. Mamdani has said he opposes the expansion of charter schools.
While many of the anti-Mamdani billionaires are Republicans, a notable exception is Barry Diller, the chairman of IAC and longtime New York philanthropist who’s giving has typically leaned toward Democrats. Diller gave $500,000 to Fix the City across two donations, with the most recent in October.
The worry by some pro-Cuomo supporters is that the giving by billionaires and the family dynasties could backfire in an increasingly populist political climate. Mamdani has made the donations a point of pride on the campaign trail, saying the spending by the rich is proof that his policies would restore power to everyday New Yorkers.
“They’re spending more money than I would even tax them,” Mamdani said in an interview with MSNBC Tuesday.   More

You COULD easily miss the brass plate on the door of Arsenalsgatan 8C in central Stockholm. It reads “Investor AB”—the name of the holding company that is controlled, through various foundations, by Sweden’s Wallenberg family. The discreet sign fits the family motto: Esse, non videri (to be, not to be seen). When you control 35% of the value of the national stock exchange, as the Wallenbergs do, invisibility is hard to achieve. More

Bryan Follicle, Thought Leader, Serial Founder, Dad, Husband, Son: Don’t let anyone tell you that your dreams are unattainable. By the time I was 14 I was a millionaire several times over. By the time I was 21, I was bankrupt. By the time I was 28, I was a billionaire. I’m now 34, and slightly nervous. Life is a journey. Travel well. More

Porsche is synonymous with high performance. And for many years the financial performance of the German maker of sports cars was as pleasantly exhilarating as a ride in one of its vehicles. That makes its declining roadworthiness all the more shocking. It has issued three profit warnings so far this year, and on October 24th unveiled an operating loss in the third quarter of almost €1bn ($1.1bn), a week after announcing the sudden departure of its boss of ten years. More

THE ERA of artificial intelligence featured an unlikely early leader. Until ChatGPT came along in November 2022, Microsoft was better known for business software that was ubiquitous, worthy and dull. Suddenly, owing to an exclusive cloud partnership with the chatbot’s creator, OpenAI, the 47-year-old technology titan became the hottest thing in big tech. Since then it has created over $2trn in shareholder value. That is ho-hum by the standards of Nvidia—which has furnished the AI revolution with chips and been furnished in turn with a market capitalisation of $5trn—but astonishing by any other measure. More