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Mamdani’s ‘Trump-proofing NYC’ campaign sets up fight with White House

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Zohran Mamdani is set to take on what’s considered the second-hardest job in the US: running New York City. His biggest challenge will be dealing with the man with the tougher job, President Donald Trump.

Mamdani, 34, pulled off a historic win in New York’s mayoral race with a slew of promises aimed at making life more affordable for residents. The democratic socialist received more than 50% of votes, while former Governor Andrew Cuomo — who ran as an independent — got just over 40%. Republican Curtis Sliwa managed about 7%.

For Mamdani to keep his campaign promises, he’ll require more money from the federal government — which provided over $7 billion in revenue for the city’s budget this year. But Trump has already derided him as a “communist lunatic” and made clear that he’ll squeeze access to funds.

The mayor-elect was defiant in his victory speech. “If anyone can show a nation betrayed by Donald Trump how to defeat him, it is the city that gave rise to him,” Mamdani told supporters. “And if there is any way to terrify a despot, it is by dismantling the very conditions that allowed him to accumulate power.”

Republicans are already positioning Mamdani as their foil, labeling him and his proposals as representative of the Democratic Party, as they prepare for mid-term congressional elections next year.

House Speaker Mike Johnson, posting on X after the New York City election, said the consequences of the Mamdani victory “will be felt across our entire country” as it “cements the Democrat Party’s transformation to a radical, big-government socialist party.”

Johnson was making the comments even as moderate Democrats won elsewhere on Tuesday night. Abigail Spanberger, a former CIA officer, easily took the Virginia governor’s race. Mikie Sherrill, a Navy veteran and ex-prosecutor, triumphed in New Jersey.

California Governor Gavin Newsom also won a significant victory when his state’s voters approved Proposition 50, allowing a redrawing of congressional maps to favor Democrats before the 2026 midterms. that could potentially thwart Trump’s plan to keep control of the house.

Trump-Proofing

Trump has already shown he’s prepared to use federal money as a lever against Democrats.

One day into the government shutdown, the White House halted $18 billion in New York infrastructure funding citing concerns over diversity and inclusion practices. The move threatens a key source of funding for critical improvements to the region’s ageing transit systems, including the extension of the Second Avenue Subway and the Hudson River tunnel project.

Apart from getting into potential fights with the Trump administration over funding for health care and food programs, Mamdani is also primed for a clash over the president’s deportation campaign.

Mamdani has pledged to strengthen New York’s sanctuary city status, which limits the local government’s cooperation with federal agencies over immigration enforcement. And in a section titled “Trump-Proofing NYC” on his campaign website, his platform calls for investing $165 million in funding for immigration legal defense services.

The mayor-elect said on Wednesday that his call to “Trump-proof” New York is about protecting the city’s most vulnerable residents from the policies of a president he views as hostile to their interests.

While he pledged to challenge Trump’s actions, Mamdani said his focus would remain on leading a city united around its people, not on engaging in a personal feud with the president.

Democratic Tensions

But it’s not just Republican antagonists that Mamdani will have to contend with. The Democratic establishment is still skeptical about the Queens assemblyman, who has limited political work experience beyond his four years in the New York state legislature. The rapid rise of Mamdani — whose career included a stint as a rapper before his time in Albany — has caught the party’s old guard by surprise.

Democratic Governor Kathy Hochul waited for months to endorse him in the mayoral race, and has said she won’t approve tax hikes that the new mayor will need to fund his agenda. Senator Chuck Schumer, doyen of the party’s establishment wing and one of the country’s most-prominent Jewish politicians, never publicly backed Mamdani.

In October 2023, Mamdani was arrested outside Schumer’s Brooklyn home, protesting Israel’s actions in Gaza just days after Hamas attacked the Jewish state.

On Wednesday, Schumer said he spoke with Mamdani and congratulated him on running a “very, very good campaign.”

“I’m moving forward,” said Schumer, who did not endorse Mamdani.

Wall Street billionaires and business leaders including Bill Ackman and Dan Loeb had also framed Mamdani’s policy proposals as a threat to New York’s financial health. Former Mayor Michael R. Bloomberg, the founder and majority owner of Bloomberg News parent Bloomberg LP, endorsed Cuomo in the primary and general election and has contributed to PACs supporting his candidacy.

“New York is on the verge of making a monumental mistake,” Home Depot Inc. co-founder Ken Langone said before the election, referring to the prospect of a Mamdani win. He compared the candidate’s policies to those that led to economic turmoil in Venezuela, Cuba and Argentina, adding that “capitalism works.”

But some on Wall Street are now adapting to the new reality. Ackman congratulated Mamdani after the election, telling the mayor-elect to “let me know what I can do.”

That Mamdani was able to win decisively shows the power of his appeal, and how much his charisma, social media savvy and messaging on affordability resonated with voters.

When he’s sworn in as New York City’s 111th mayor on Jan. 1, 2026, he will be the youngest person to hold the office in a century. He will also be its first Muslim leader and the first person of South Asian descent to hold the office in the city’s 400-year history. Mamdani only became a naturalized US citizen in 2018.

Lauren Klein, a Mamdani voter who works in art conservation and lives in Long Island City, said now that Mamdani is elected, she wants “more affordable housing, and an effective leader.” Another supporter, Jonathan Neer, said that he trusts Mamdani “to make a conscious effort.”

“Whether or not he will be a good mayor, I don’t know. But I trust him to try,” Neer said before stepping inside a Fort Greene bar in Brooklyn to watch Mamdani’s victory speech after Tuesday’s election.

Mamdani’s Promises

Mamdani has vowed to immediately start working to implement his campaign promises. Freeze rents in rent-stabilized apartments; provide free bus services; create a universal, free childcare program for children ages 6 months to 5 years; open five city-owned grocery stores, one in each borough — to name just a few.

Evan Roth Smith, a Democratic pollster and political consultant at Slingshot Strategies, said Mamdani’s narrow majority could help him in his appeal for more funding to make those pledges a reality.

“When he goes to Albany, when he goes to the federal government, he can say ‘I do have the majority of New Yorkers behind me when I asked for this,’” Roth Smith said.

“He’s going to have a tougher argument because it wasn’t 60% or 55%, it was 50 points and a hair,” he said.

And Mamdani’s promised rent freeze faces multiple hurdles — including the possibility that outgoing Mayor Eric Adams will stack the Rent Guidelines Board with his own appointees who won’t go along with a freeze.

All that means Mamdani risks disappointing his base of progressive voters if he isn’t able to fulfill his pledges once the euphoria over his win fades.

“The campaign is over, all the great promises,” said Apollo Global Management Inc. President Jim Zelter. Now, “it’s about delivering,” he said.

“You don’t celebrate the day you buy a company, you celebrate the day you sell it. There needs to be a change in tone and he needs to bring the city together,” Zelter said.



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Davos 2026: reading the signals, not the headlines

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Davos 2026: reading the signals, not the headlines | Fortune

Louisa Loran advises boards and leadership teams on transformation and long-term value creation and currently serves on the boards of Copenhagen Business School and CataCap Private Equity. At Google, Louisa launched a billion-dollar supply chain solutions business, doubled growth in a global industry vertical, and led strategic business transformation for the company’s largest customers in EMEA—working at the forefront of AI, data, and platform innovation. At Maersk, she co-authored the strategy that redefined the brand globally and doubled its share price, helping pivot the company from traditional shipping to integrated logistics. Her career began in the luxury and FMCG space with Moët Hennessy and Diageo, where she built iconic brands and led innovation at the intersection of heritage and digital transformation.



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Hotels allege predatory pricing, forced exclusivity in Trip.com antitrust probe

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China’s hotels are welcoming record numbers of travelers, yet room rates are sinking—a paradox many operators blame on Trip.com Group Ltd.

For Gary Huang, running a five-room homestay in the scenic Huzhou hills near Shanghai was supposed to secure his family’s financial future. Instead, he and other hoteliers in China’s southeastern Zhejiang province say nightly rates have fallen to levels last seen more than a decade ago, as Trip.com’s frequent discount campaigns force them to cut prices simply to remain visible on China’s dominant booking platform.

“The promotion campaigns now are almost a daily routine,” said Huang, who asked to use his self-given English name out of concern of speaking out against Trip.com. “We have to constantly cut prices at least 15% to attract travelers. We have no choice but to go along with the price cuts.”

Trip.com has been central to China’s post-pandemic travel rebound, connecting millions of travelers with small operators like Huang. But for many hotels, visibility—and sometimes survival—comes at the expense of profits.

That dynamic is now at the heart of Beijing’s antitrust probe. Regulators allege Trip.com is abusing its market position, with analysts citing deflation across the sector as the government’s main concern. Interviews with lodging operators, industry groups and travel consultants describe a system where constant price-cutting and opaque policies are eroding profitability, even as demand rebounds.

Trip.com has said it’s cooperating with the government’s investigation. The company’s stock dove more 16% since the probe was announced a week ago. 

Revenue per room—a key hotel metric—was flat across China in 2025, even as other Asian markets saw gains, according to Bloomberg Intelligence. Marriott International Inc.’s revenue per room in China fell 1% most of last year, while Hilton’s China room revenue trailed its regional peers.

The company controls about 56% of China’s online travel market, according to China Trading Desk, and has grown into the world’s largest booking site. Its dominance has helped fuel domestic tourism’s recovery—nearly 5 billion trips were logged in the first three quarters of 2025—but operators say the benefits are being offset by falling room yields.

“The market has developed unevenly and innovation is lacking due to monopolistic practices,” said He Shuangquan, head of the Yunnan Provincial Tourism Homestay Industry Association that represents some 7,000 operators. “The entire online travel agency sector is stagnating in a pool of dead water.”

‘Pick-one-of-two’

The broader challenge is oversupply and cautious consumer spending. In regions like Yunnan, hotel capacity has tripled since the pandemic, just as travelers tightened budgets. Consultants note that while people are traveling more, they’re spending less—leaving hotels slashing rates to fill empty beds and posting billions in losses.

For operators like Huang, the paradox is stark: the platform that delivers customers is also accelerating the race to the bottom. The complaints center around Trip.com’s “er xuan yi,” Mandarin for pick-one-of-two exclusivity arrangements—a practice that Chinese regulators have repeatedly vowed to stamp out.

Trip.com categorizes merchants into tiers with “Special Merchants” enjoying the most visibility and traffic, Yunnan Provincial Tourism’s He said. However, these top-tier merchants are typically prohibited from listing on rival platforms like Alibaba’s Fliggy, ByteDance’s Douyin or Meituan. Merchants who aren’t bound by these exclusive arrangements report being effectively compelled to offer the lowest prices on Trip.com’s online booking platform Ctrip, or risk facing a raft of measures like lowered search rankings.



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CEOs at Davos are buying into the agentic AI hype

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Good morning. The atmosphere here at the World Economic Forum in Davos is all about nervous excitement as the Trump administration descends on the normally quaint but currently chaotic ski town in the Alps.

President Donald Trump will be making remarks just a couple hours from now, and Fortune will be reporting live from USA House on the main promenade, with insights from government officials and chief executives during and immediately following the president’s conversation. Keep an eye on our livestream, here https://fortune.com/2026/01/21/ceos-davos-buy-into-the-agentic-ai-hype/.

Elsewhere around town, CEOs are setting their agendas for the year. Here’s what’s top of mind for a few of them:

This will actually be the year of agentic AI. The first time I heard the term “agentic AI” was at Davos last year. For all the hype around it, does the average CEO really know what it is or how to deploy it? And is AI good enough yet for agents to replace or even significantly assist human employees? The answer appears to be yes. Google Gemini head Demis Hassabis told me that Gemini 3 achieved some milestones that allow agentic AI to truly proliferate in terms of its capabilities. ServiceNow CEO Bill McDermott is also an emphatic “yes,” and says he is already using it to do things like automate his IT department (without doing layoffs, he stresses; he says he has repurposed employees instead). He thinks other CEOs are ready to do the same.

Get ready for Google glasses—for real, this time. A decade ago, Google launched its Google Glass eyewear to widespread mockery. Hassabis thinks the timing was just off; at the time there was no super app to go on the platform. AI has changed that, and Hassabis is bullish on Gemini glasses being the future form for consumer AI. Meta is betting the same thing, and OpenAI is also reportedly considering a super-device, but it doesn’t seem like either can match Gemini’s capabilities any time soon.

There’s artificial intelligence, and now there’s also “energy intelligence.” Schneider Electric CEO Olivier Blum says that nailing energy intelligence is his mission this year. By that he means he wants to capture data from various energy sources into a single “data cube,” filter it, and use agentic AI so customers can manage it all in one place to find opportunities to save power and money. “Our job is to make sure we go to the next level of energy technology to make energy more intelligent,” he told me yesterday. If he can achieve it, he sees a 7%-10% annual growth opportunity ahead.

Greenland: national panic or national security risk? I’ve heard various reactions to President Trump’s desire for a full U.S. takeover of the huge islandfrom outrage to vigorous support. If he does get his wish (which some here think is likely), could Europe retaliate by making life harder and more restrictive for big U.S. tech companies? That was one CEO’s consideration. Said another: “Clear-eyed people can agree that that is a national security concern. And having a national security concern is not just a U.S. concern, it’s also a NATO concern.” They were optimistic that the in-person meetings this week would help move the matter in a positive direction. You can follow all our Davos coverage—including Fortune live interviews today with Ray Dalio, Dara Khosrowshahi and more—right here.—Alyson Shontell

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

The crisis CEOs can’t ignore

The annual Edelman Trust Barometer, revealed at Davos every year, shows an “insular” mindset permeating the business world, with 70% of respondents not wanting to talk to, work for, or even be in the same space with anyone with a different world view. Richard Edelman says CEOs must adopt a sense of urgency in addressing the crisis; they need to sense that “time is running out.”

The Fortune 2026 World’s Most Admired Companies list

Fortune published the 2026 World’s Most Admired Companies this week, an annual ranking in collaboration with Korn Ferry that surveys executives, directors, and analysts across a range of industries. Apple made the top of the list among leaders in all industries for the 19th year in a row—read who else made the cut.

Netflix co-CEOs boost the case for the Warner Bros. deal

Netflix co-CEOs Ted Sarandos and Greg Peters praised the streaming company’s planned acquisition of Warner Bros. Discovery during its earnings call on Tuesday, selling the deal as a boost to its streaming business and a production boost for America. Investors, however, remain worried that the deal will push Netflix away from its core business, and the stock dropped almost 5% after hours.

The markets

S&P 500 futures are up 0.19% this morning. The last session closed down 2.06%. STOXX Europe 600 was down 0.41% in early trading. The U.K.’s FTSE 100 was down 0.02% in early trading. Japan’s Nikkei 225 was down 0.41%. China’s CSI 300 was up o.09%. The South Korea KOSPI was up 0.49%. India’s NIFTY 50 was down 0.3%%. Bitcoin was at $89K.

Around the watercooler

What Walmart’s CEO succession reveals about the smartest time to exit by Ruth Umoh

Americans are paying nearly all of the tariff burden as international exports die down, study finds by Jacqueline Munis

The 9 most disruptive deals of Trump’s first year back in the White House by Geoff Colvin

Gen Z’s nostalgia for ‘2016 vibes’ reveals something deeper: a protest against the world and economy they inherited by Nick Lichtenberg and Eva Roytburg

CEO Daily is compiled and edited by Joey Abrams, Claire Zillman and Lee Clifford.



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