Your long = their short

Short sellers had their most profitable week ever, NYSE is testing appetite for 24/7 trading, rates traders are flocking from banks to hedge funds, Tesla shareholders are bracing for disappointing earnings, and a premier tail risk fund thinks rate cuts will signal a market crash.

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Litquidity Capital
April 23, 2024

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Good Morning,

Short sellers had their most profitable week ever, NYSE is testing appetite for 24/7 trading, rates traders are flocking from banks to hedge funds, Tesla shareholders are bracing for disappointing earnings, and a premier tail risk fund thinks rate cuts will signal a market crash.

Let’s dive in.

Before The Bell

As of 04/22/2024 market close.

Markets

  • US stocks rebounded from last week's selloff as Middle East tensions dimmed and investors turned focus to upcoming earnings

    • The S&P and Nasdaq snapped six-day losing streaks

  • UK's FTSE soared to a new ATH

  • Gold suffered its biggest daily loss since June 2022

  • Money markets are now pricing in only 41 bps of rate cuts this year

Earnings

  • Verizon shares fell ~5% after missing Q1 revenue estimates, although it reported fewer-than-expected quarterly subscriber losses (WSJ) 

  • What we're watching this week:  

    • Today: Tesla, Visa, GM, GE

    • Wednesday: Meta, Boeing, IBM, Ford, Chipotle, AT&T

    • Thursday: Microsoft, Alphabet, Intel, Snap Inc., American Airlines

    • Friday: ExxonMobil, Chevron, Abbvie

  • Full calendar here

Headline Roundup

  • Black swan fund says Fed rate cuts will signal market crash (RT)

  • Short sellers pocket biggest-ever weekly profit from Big Tech selloff (RT)

  • 'Overdue' pullback in US stocks to test dip-buyers' resolve (RT)

  • NYSE is considering 24/7 trading (FT)

  • Rates traders flock from banks to hedge funds as BOJ ends YCC (BBG)

  • Companies flock to cash at fastest rate since Covid (WSJ)

  • Consulting firms step up efforts to push out low performers (FT)

  • Australian hedge fund First Sentier Investors will close four funds totaling $9B (BBG)

  • US credit investors see geopolitical tensions as top concern (RT)

  • Fed says 1.8k banks, and others tapped emergency lending facility (RT)

  • Low income consumers are getting increasingly crunched on loans (RT)

  • Hedge fund industry AUM hit $4.3T in Q1 (RT)

  • Tesla shareholders brace for worst results in seven years (FT)

  • Goldman moved head of Europe FIG to Paris in post-Brexit revamp (FT)

  • Grain trader ADM's CFO will resign amid accounting investigation (RT)

  • Venezuela to accelerate crypto shift as oil sanctions return (RT)

  • Meta to 'open up' quest headset OS to rivals (BBG)

  • Injury rates at SpaceX exceed industry average for second year (RT)

  • Columbia cancels in-person classes amid protests (WSJ)

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Deal Flow

M&A / Investments

  • C&S Wholesale Grocers will acquire an additional 166 stores from Kroger and Albertsons for a total of 579 stores for ~$2.9B cash (RT) 

  • UK PE firm Bridgepoint is exploring options including a sale for Vitamin Well, a Swedish drinks business that could be valued at over $2.1B (FT)  

  • Real estate information provider CoStar Group will acquire Matterport, a provider of 3D virtual tours of properties, in a $1.6B cash-and-stock deal (RT) 

  • Saudi Aramco began talks to buy a 10% stake in China’s $15B Hengli Petrochemical (BBG) 

  • Carlyle-backed oil pipeline company Crescent Midstream is exploring a potential sale after receiving takeover interest and could be valued at $1.3B (BBG) 

  • Quanex Building Products agreed to acquire UK-based construction solutions provider Tyman in a $976M cash-and-stock deal (RT) 

  • PE firm Permira began the sale process of its 50% stake in Asian aquatic food provider Grobest, targeting a $1B valuation (RT) 

  • French energy group TotalEnergies will acquire Malaysian oil company Sapura Energy’s 50% stake in oil and gas upstream company SapuraOMV for $705M (RT) 

VC

  • Workforce management software startup Rippling raised a $200M Series F at a $13.4B valuation led by Coatue (TC)

  • Skyports, a startup building takeoff and landing infrastructure for eVTOLs, raised a $109.5M Series C from ACS and Groupe ADP (FN)

  • Nonprofit fundraising and CRM platform Givebutter raised $50M led by Bessemer Venture Partners (PRN)

  • ‘Send now, pay later’ startup Pomelo raised a $35M Series A led by Vy Capital (TC)

  • Smart Reporting, a Munich-based medical reporting startup, raised a $25.4M Series C led by TVM Capital Life Science (FN)

  • Nominal, an end-to-end data analysis solutions for industrial engineering teams, raised $27.5M: a $7.5M seed round led by Lux Capital and a $20M Series A led by General Catalyst (BW)

  • Exowatt, a modular energy platform designed to power energy-intensive data centers, raised a $20M seed round from a16z, Atomic, and Sam Altman (BW)

  • HappySignals, a Finnish IT experience management company, raised $12M in funding led by Mandatum Asset Management (FN)

  • Accacia, a decarbonization platform for real estate and infrastructure sectors, raised a $6.5M pre-Series A round led by Illuminate Financial (BW)

  • Auxa Health, a provider of an AI-powered benefit navigation technology solution, raised a $5.2M seed round led by Zeal Capital Partners (FN)

  • Pelvital, a women’s health startup, raised a $2.4M seed plus round led by Boomerang Ventures (FN)

  • BettrData, a platform for data operators and developers, raised a $2.2M seed round led by Range Ventures (VC)

IPO / Direct Listings / Issuances / Block Trades

  • Indian telecom Vodafone Idea's $2.2B FPO garnered $10.6B worth of bids (RT)

  • CVC Capital Partners is seeking to raise up to $1.7B at an up to $16B valuation in an Amsterdam IPO (BBG) 

  • Cruise operator Viking Holdings is seeking to raise up to $1.1B at a $10.8B valuation in a US IPO (RT)

Debt

  • UK supermarket giant Asda Group is seeking to raise up to $2.2B through a bond issuance to refinance debt (BBG) 

  • Citigroup raised $730M through a Canadian-dollar bond offering, the first time since 2015 (BBG) 

Bankruptcy / Restructuring

  • Clothing retailer Express filed for bankruptcy with plans to sell itself and has offers from brand manager WHP Global and mall landlords Simon Property Group and Brookfield Properties (BBG)  

  • Elliott Management is buying bonds of troubled UK utility company Thames Water (FT)

Fundraising

  • Malaysia’s SWF Khazanah Nasional will set up a $627M VC fund to invest in Southeast Asian startups (BBG) 

  • TLcom Capital, Africa’s largest early-stage VC fund, raised $154M for its TIDE Africa Fund II (BBG) 

Crypto Corner

  • Memecoin mania sent Bitcoin fees soaring during ‘halving’ (BBG)

  • Two SEC lawyers resigned after judge blasted agency for 'abuse' of power in crypto fraud trial (TB)

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