Mamdani’s NYC Mayoral Primary Win Sparks Business Exodus Fears

Welcome back!

Here’s your must-read news this morning:

• Mamdani victory in NYC

• Anthropic's AI training legal

• “Big Balls” leaves DOGE

I’ve got all the details for you, so let’s dive in.

— Josh

MARKETS

🍎 Mamdani Set to Win Democrat Nomination in NYC Mayoral Race, Igniting Business Leaders' Exodus Buzz

The Scoop: Former Gov. Andrew Cuomo conceded the New York City Democrat mayoral primary to Zohran Mamdani, a 33-year-old democratic socialist, prompting concerns among business leaders about a potential exodus from the city.

The Details:

• Mamdani, a Queens State assembly member, led early results in the ranked-choice voting primary, though the Associated Press has not yet projected a winner.

• Cuomo, addressing supporters Tuesday night, acknowledged Mamdani’s victory and signaled openness to a third-party or independent run in November.

• Mamdani, backed by Rep. Alexandria Ocasio-Cortez (D-NY) and Sen. Bernie Sanders (I-VT), proposed opening city-run supermarkets, eliminating bus fares, making CUNY tuition-free, and freezing municipal housing rents.

• "It's a political earthquake," said Lee Miringoff, director of the Marist Institute for Public Opinion, regarding Mamdani's probable victory.

• Business leaders, including billionaire John Catsimatidis, warned of relocating operations if Mamdani’s policies are enacted. Hedge fund manager Bill Ackman predicted a business flight reminiscent of the pandemic.

What’s Next: Mamdani, who would become the first Muslim mayor of the nation’s largest city if he wins, advances as the Democrat frontrunner to face Republican Curtis Sliwa and independent incumbent Mayor Eric Adams in November’s general election. Ranked-choice vote tabulations are set to begin July 1.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Federal Reserve Chair Jerome Powell signaled Tuesday that the central bank is poised to keep interest rates steady in July while closely tracking economic trends. (MW)

• China is bolstering the yuan’s global use by allowing select foreign institutional investors to trade more futures and options on three major exchanges. (CNBC)

• Atlanta Federal Reserve President Raphael Bostic said the Fed should delay interest rate cuts. (RTS)

• The Trump White House is nearing the announcement of several trade deals, with significant progress on agreements involving Japan, South Korea, and Vietnam, Fox Business’s Charles Gasparino reports. (X)

• The EU is preparing retaliatory tariffs to strengthen its position in trade negotiations with Trump, with German Chancellor Friedrich Merz endorsing a tougher stance ahead of the July 9 deadline. (FT)

• FICO will launch credit scores this fall that include buy-now-pay-later data, aiming to reflect modern consumer behavior and enhance financial inclusion. (AX)

📈 Stock Market

• ⭐ Editor’s Pick: The Nasdaq 100 surged 1.5% to a record high close of 22,190.52 points on Tuesday, marking its first peak since February. (BAR)

• Stocks held steady early Wednesday as investors eyed a potential return to the benchmark index's all-time high, with broad index futures up less than 0.1%, Dow futures rising 23 points, and Nasdaq 100 futures flat. (CNBC)

• Novo Nordisk terminated its partnership with Hims & Hers, alleging illegal sales of counterfeit Wegovy and deceptive marketing, causing Hims & Hers’ stock to plummet over 30%. (WSJ)

• Lime, a scooter startup backed by Uber, has engaged investment banks to prepare for a highly anticipated initial public offering. (RTS)

• Carnival shares jumped nearly 7% after reporting stronger-than-expected Q2 results, with adjusted earnings of 35 cents per share and record $6.3 billion in adjusted revenue, with net income rising to $565 million. (BAR)

🏢 Industry

• ⭐ Editor’s Pick: Xero, a New Zealand-based software firm, has agreed to acquire Melio Payments for $2.5 billion. (FP)

• Amazon plans to invest over $4 billion to expand its Prime delivery service to rural U.S. communities. (TV)

• China's automotive sector has been inflating sales numbers through a government-backed grey market that registers new vehicles as "used" for export, an investigation has revealed. (RTS)

• Microsoft plans a significant round of layoffs in its Xbox division next week, part of a broader company-wide restructuring effort. (BBG)

• All-In podcast co-hosts Jason Calacanis, Chamath Palihapitiya, David Sacks, and David Friedberg debuted a $1,200-per-bottle tequila brand, which sold out quickly. (TC)

💵 Energy & Commodities

• ⭐ Editor’s Pick: Trump said China may continue purchasing Iranian oil after a ceasefire between Israel and Iran, but the White House emphasized that this does not reflect any easing of U.S. sanctions. (RTS)

• New York City faced blackouts in Queens and soaring electricity prices exceeding $7,300 per megawatt-hour as a record heat wave strained U.S. power grids. (BBG)

• Oil prices rose 2% Wednesday as investors evaluated the durability of an Iran-Israel ceasefire, with Brent crude futures up $1.31 to $68.45 a barrel and WTI crude gaining $1.24 to $65.61. (INV)

• Saudi Arabia’s oil export revenue plummeted to a near four-year low of $16.5 billion in April, a 21% year-on-year drop, driven by crashing crude prices. (FP)

• Cheniere Energy will invest $2.9 billion to expand its Corpus Christi, Texas, LNG facility, adding new midscale trains to enhance export capacity. (BW)

🌕 Crypto

• ⭐ Editor’s Pick: Chainlink and Mastercard are partnering to allow over 3 billion Mastercard users to make offchain payments for direct onchain cryptocurrency purchases. (CN)

• Digital Asset raised $135 million from Goldman Sachs, BNP Paribas, and Citadel Securities to boost adoption of its Canton Network blockchain for financial institutions. (TB)

• Arizona’s House of Representatives passed legislation that would establish a reserve fund for seized crypto, now awaiting Gov. Katie Hobbs’s (D) approval. (DC)

• Japan’s Financial Services Agency proposed a broad reclassification of crypto, paving the way for crypto exchange-traded funds and implementing a flat 20% tax on digital asset income. (CT)

• Metaplanet’s board approved a $5 billion capital infusion for its U.S. subsidiary, Metaplanet Treasury Corp, to accelerate its Bitcoin acquisition strategy. (CD)

• The New York Stock Exchange filed a proposed rule change with the SEC to list an ETF from Trump Media & Technology Group, designed to track Bitcoin and Ethereum prices. (DC)
  

TECH

💻 Landmark Ruling: Anthropic Did Not Violate Authors’ Copyrights with AI Book Training

The Scoop: A federal judge ruled late Monday that Anthropic’s use of copyrighted books to train its AI model Claude constituted “fair use” and was “transformative,” delivering a major victory for the Amazon-backed startup in a high-stakes copyright lawsuit brought by authors.

The Details:

• U.S. District Judge William Alsup held that Anthropic’s training of large language models did not infringe authors’ copyrights, as Claude does not reproduce creative elements or identifiable styles, per the Northern District of California ruling.

• Alsup described the use of books to train LLMs as “quintessentially transformative,” likening it to a reader aspiring to write.

• The lawsuit, filed by authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, alleged Anthropic stole millions of books to build a “multibillion-dollar business.”

• Anthropic pirated roughly 7 million books for a “central library” but opted not to use them for LLM training; Alsup ordered a trial to assess damages related to this library.

• Anthropic welcomed the ruling, stating it aligns with copyright’s role in fostering creativity and scientific progress, while plaintiffs’ comments are pending.

What’s Next: The ruling sets a precedent for AI companies navigating copyright disputes, potentially shaping the legal framework for LLM training. A separate trial will determine damages for Anthropic’s pirated book library, with the extent of statutory penalties hinging on the startup’s later purchase of legal copies.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: OpenAI is building productivity features for ChatGPT, including collaborative document editing and integrated chat, positioning it as a rival to Google Workspace and Microsoft Office. (TI)

• A study found that leading AI hiring tools favor black and female candidates over white and male applicants in job screenings, even with anti-discrimination prompts. (NYP)

• ElevenLabs launched a standalone mobile app for iOS and Android, enabling users to generate lifelike AI voice clips from text. (GF)

• OpenAI CEO Sam Altman called Iyo's trademark lawsuit over OpenAI's acquisition of Jony Ive’s io baseless, noting Iyo’s founder previously sought an acquisition. (CNBC)

• Venture capitalist and All-In co-host Chamath Palihapitiya predicts Tesla will be the leading AI company, citing its integrated stack, advanced vision models, xAI’s LLMs, and physical AI in cars and robots. (X)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Google DeepMind unveiled an advanced on-device Gemini Robotics AI model, enabling physical robot control without cloud connectivity. (GM)

• Waymo’s autonomous taxis are now accessible to Uber users in Atlanta, marking an expansion of the companies’ ride-hailing partnership across the U.S. (CNBC)

• IBM and RIKEN debuted Japan’s first IBM Quantum System Two, slashing error rates and boosting processing speed tenfold over the previous Eagle chip for precise, rapid solutions to complex problems. (IWT)

• Canada's first beach-cleaning robot, BeBot, launched at Sibbald Point Provincial Park, targets plastic and debris on Lake Simcoe's shores. (CTV)

🚀 Defense & Space

• ⭐ Editor’s Pick: The Pentagon completed a successful test of a Lockheed Martin-developed long-range radar, designed to detect missile threats from Russia or China, which could become a component of the Golden Dome missile defense system. (BD)

• Ukraine’s Ministry of Defense authorized the “Dodger” unmanned ground robot, engineered to manage logistics such as supply transport and casualty evacuation, and to remotely deploy mines. (DE)

• Varda’s W-4 mission, launched Sunday from Vandenberg, is operating nominally in orbit under the FAA’s first Reentry Vehicle Operator License. (X)

• Thales launched a lightweight electronic warfare payload for small drones, enabling frontline troops to autonomously detect and locate enemy radio-frequency emitters with minimal training. (DP)

• Axiom Space’s fourth private astronaut mission is en route to dock with the International Space Station after a delayed but successful launch. (AW)

• Researchers are developing a synthetic lichen system, which could help in the autonomous construction of structures on Mars. (IE)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: Polymarket is nearing a $200 million fundraising round, valuing the company at over $1 billion. (TI)

• Cybersecurity startup Xbow, developer of a top-ranked AI-powered hacking security tool, is raising $75 million to advance its automated vulnerability detection technology. (BBG)

• ForSight Robotics secured $125 million in a Series B funding round, led by Eclipse, to advance its robotic surgery platform for ophthalmic procedures. (FBT)

• AI dictation startup Wispr Flow secured $30 million in Series A funding from Menlo Ventures to advance its voice-powered text creation platform. (TC)

• WithDelphi, a digital cloning platform creating AI-powered “digital minds” to scale human expertise, raised $16 million in a Series A round led by Sequoia Capital. (X)

• OpenRouter, a marketplace for AI models, secured $40 million in funding, aiming to expand its platform connecting developers with advanced AI tools for faster, more efficient innovation. (WSJ)

FREEDOM

🏛️ DOGE’s “Big Balls” Leaves Government Job

The Scoop: Edward Coristine, a 19-year-old aide known as “Big Balls,” resigned from the Department of Government Efficiency (DOGE) on Monday, WIRED reports.

The Details:

• Coristine held a high-level role at DOGE, participating in meetings with the Treasury, Commerce, and Defense Departments.

• At DOGE, he focused on cutting federal spending, tackling fraud in government services, and accessing U.S. payroll systems.

• His Google Workspace account with the General Services Administration is no longer active.

• Previously enrolled at Northeastern University, Coristine told the student newspaper he would not return after his DOGE tenure; he founded Tesla.Sexy LLC in 2021 and briefly worked at Elon Musk’s Neuralink.

What’s Next: An account under Coristine’s name on X, verified by NBC News, announced his exit, stating he was “officially out” and could “finally breathe again,” while jokingly claiming he’d run a cryptocurrency scam next, with plans to explain his departure soon.

Freedom Roundup

🏛️ Economic & Tech Policy

• ⭐ Editor’s Pick: Senate Majority Leader John Thune (R-SD) expects voting on Trump’s “Big, Beautiful Bill” will begin Friday as he remains confident in meeting the July 4 deadline. (AX)

• At the NATO summit, Trump reaffirmed U.S. commitment to Article 5 and hailed allies’ pledges to boost defense spending to 5% of GDP as “big news.” (TG)

• A U.S. judge temporarily blocked the Trump administration from withholding EV charger infrastructure funds from 14 states. (RTS)

• Treasury Secretary Scott Bessent expressed confidence that House and Senate Republicans will reach a SALT deduction within the next 48 hours. (BBG)

•  HHS Secretary Robert F. Kennedy Jr. announced that major health insurers have committed to reforming the prior authorization process, a system frequently criticized for delaying or denying patient care. (NBC)

• In partnership with Western governors, Utah Gov. Spencer Cox (R) launched Energy Superabundance, an initiative to boost energy production, upgrade transmission, and advance technologies for a more reliable, affordable grid. (WG)

• Venture capitalist Joe Lonsdale supports a 10-year Senate moratorium on state AI regulations, arguing it will maintain U.S. competitiveness against China and curb state-level corruption. (JL)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Meta will not join this weekend’s San Francisco Pride festival, departing from its past participation. (CNBC)

• Texas Attorney General Ken Paxton (R) threatened to sue Austin over a contract with WEX Bank, which allegedly discriminates against firearm businesses, demanding the city amend or end the contract by July 16 or face legal action. (NSSF)

• UK regulator Ofcom faces calls to bar politicians, including Nigel Farage, a host on GB News, from presenting television programs, igniting a debate over free speech. (TEL)

• A U.S.- and EU-funded initiative, led by Internews, which has received funding from USAID, is providing grants to Central Asian media professionals to counter "disinformation" and "hate speech." (RTW)

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