Hello Capitalist,

After last week’s huge stock market gains, markably low gas costs, and of course the successful elimination of Iran’s nuclear program, it feels pretty darn good to be an American.

Here is everything you need to know today:

Trump lays down the law with “Communist” Mamdani

President Donald Trump called Zohran Mamdani, a Democratic socialist and frontrunner in the NYC mayoral race, a "communist" and warned that if Mamdani wins and doesn’t "do the right thing," he’ll cut off federal funding to New York City.

• Mamdani’s Rise: The 33-year-old state assemblyman from Queens shocked the political world by beating former Governor Andrew Cuomo in the Democratic primary, pushing a progressive platform that’s got some folks excited and others, like Trump, fuming.

• Big Money at Stake: NYC gets over $100 billion annually from the federal government, so Trump’s threat to pull funding if the next mayor doesn’t "behave" could have massive implications for the city’s budget and services.

Today’s Markets:

• The Top Line Market Numbers:

• DOW: 44049.87 - (⬆️0.53) ✅

• S&P: 6191.43 - (⬆️0.30) ✅

• NASDAQ: 20336.43 - (⬆️0.31) ✅

• CBOE VIX Volatility Index: 17.16 (⬆️0.83) ⚠️⬆️

Canada scraps digital tariffs in desperate plea to get Trump talking to them again

After President Donald Trump ended all trade discussions with them “effective immediately” Canada just rolled over in a desperate attempt to convince the US to return to the negotiation table.

• Canada Drops Digital Tax: Canada has decided to cancel its digital services tax, which was set to hit U.S. tech giants like Amazon, Google, and Meta with a 3% levy on revenue from Canadian users, starting retroactively from 2022. This was supposed to kick in on June 30, 2025, but they pulled the plug last minute.

• Trump’s Trade Talk Freeze: The decision came after U.S. President Donald Trump halted all trade negotiations with Canada, calling the tax a “blatant attack” on American companies. He even threatened new tariffs, which got Canada’s attention fast.

• Trade Talks Back On: By scrapping the tax, Canada’s Prime Minister Mark Carney and Trump agreed to restart trade talks, aiming for a new deal by July 21, 2025, to boost economic ties and avoid a tariff war that could jack up prices for everyone.

Quote of the Day:

U.S. attracts more millionaires than other, less capitalist western powers

U.S. Ranks Second in Attracting Wealth: The United States is expected to gain 7,500 foreign millionaires bringing $43.7 billion in wealth this year, ranking second globally behind the UAE. The U.S. has seen a 78% increase in millionaires from 2014-2024, with factors like the EB-5 Immigrant Investor Program and an "unmatched entrepreneurial ecosystem" making it attractive to wealthy individuals.

• UAE Leads Global Migration: The United Arab Emirates tops the list with a projected net influx of 9,800 millionaires worth $63 billion, representing a 98% increase in millionaires over the past decade. The country's zero income tax, strong infrastructure, political stability, and welcoming immigration policies are key attractions for high-net-worth individuals.

• UK Suffers Massive Exodus: The United Kingdom ranks dead last with a projected outflow of 16,500 millionaires taking $91.8 billion in wealth, while other countries losing wealthy residents include China (7,800 millionaires, $55.9 billion), India (3,500 millionaires, $26.2 billion), South Korea, and Russia. The global migration involves around 142,000 millionaires worldwide, with their movement contributing to economic benefits through business creation, job growth, and increased spending power.

California’s Pension fund has been sketchy for years and now its being investigated

The California Public Employees’ Retirement System (CalPERS), the biggest public pension fund in the U.S., is under scrutiny, and it’s raising some big questions about how retirement funds are managed. With millions of people relying on pensions like this for their financial security, this investigation could have ripple effects nationwide.

• Investigation Launched: A forensic pension investigator has been hired to dig into CalPERS’ investments, focusing on the high fees paid to Wall Street firms and the fund’s underperforming returns, as concerned retirees push for answers about its financial health.

• Concerns Over Private Equity: Critics, including former board members, are worried about CalPERS’ heavy bets on private equity, which generated a 12% annualized return over 20 years but still fell short of its benchmark, raising red flags about risky investment choices.

• Transparency Issues: Retirees are frustrated by CalPERS’ lack of openness, with claims it’s becoming “more secretive,” making it harder to understand how the fund’s $569 million in private equity fees and 75% funding status impact future payouts.

Socialist Mamdani says billionaires shouldn’t exist in latest wild plan for NYC

Zohran Mamdani, the Democratic socialist mayoral candidate in NYC, is stirring the pot with some wild ideas that could have serious implications for the Big Apple’s future. His recent comments on the existence of billionaires and wealth inequality are alarming to say the least.

• Mamdani’s Stance on Billionaires: Zohran Mamdani, a 33-year-old democratic socialist, said on NBC’s Meet the Press that billionaires shouldn’t exist because their wealth highlights extreme inequality. He argues that such vast fortunes in a time of economic struggle for many are unfair and wants to focus on creating equality across NYC.

• Taxing the Wealthy: Mamdani’s campaign is built on making NYC more affordable, with plans to fund initiatives like free buses and universal childcare by raising taxes on the top 1%—specifically a 2% tax hike on those earning over $1 million a year. This has won him support from progressives but drawn criticism from business leaders and billionaires like Bill Ackman, who fear it could hurt NYC’s economy.

• Political Backlash and Support: His victory over former Gov. Andrew Cuomo in the Democratic primary has shocked the establishment, earning endorsements from figures like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez. However, critics, including President Trump, have labeled him a “communist,” and some Democrats like Chuck Schumer and Hakeem Jeffries are hesitant to back him, highlighting a divide within the party.

Saudi Arabia’s sovereign wealth fund sees profits plunge, but asset values surge

If you’re keeping an eye on global economics or just curious about what’s happening with Saudi Arabia’s big plans, this news about their sovereign wealth fund is a big deal. The Public Investment Fund (PIF) is a powerhouse driving the kingdom’s push to diversify its economy beyond oil, so its performance gives us a peek into how that transformation is going. Here’s the lowdown in three quick points:

• Profits Took a Hit: In 2024, the PIF’s net profit dropped 60% to 25.8 billion riyals ($6.9 billion), down from a much higher figure the year before, mainly due to high interest rates, inflation, and some project impairments.

• Assets and Revenue Still Growing: Despite the profit dip, the fund’s assets climbed 18% to 4.32 trillion riyals, and revenues jumped 25% to 413 billion riyals, showing it’s still expanding its reach.

• Steering Economic Change: The PIF is central to Saudi Arabia’s Vision 2030, aiming to reduce oil dependency through massive investments, but challenges like a $27 billion fiscal deficit and borrowing needs highlight the bumpy road ahead.