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Good Morning,

The 10-year yield is approaching 5%, Ackman is playing the SPAC market on his own terms, Biden is seeking an unprecedented Israel package, Sequoia is being targeted by the US Committee’s China tech investment probe, Netflix is raising prices after its best subscriber gain in years, and Delta walked back changes to its SkyClub access.

Among the hundreds of KYC and anti-fraud solutions that exist, only 22% can fight fraud, meet KYC requirements, and grow revenue. Of that 22%, today’s sponsor, Plaid stood out as the most capable. Check out this free report to learn why.

Let’s dive in.

Before The Bell

Markets

• US Stocks fell as Treasury yields climbed to new highs

  • The Nasdaq led indices with a 1.6% drop

• European stocks fell as investors digested corporate earnings and reacted to UK’s September inflation data

• US 10Y yield climbed 5.9 bps, crossing 4.9% for the first time since 2007

• US 30Y fixed mortgage rate hit 8% for the first time since mid-2000

Earnings

• Tesla missed Q3 revenue and adjusted profit expectations; total operating margin fell to 7.6% from 17.2% a year ago (CNBC)

• Netflix shares popped 12% after reporting better-than-expected earnings and subscriber growth thanks to a crackdown on password-sharing (CNBC)

• Morgan Stanley shares fell 7% after it reported Q3 profit 9% lower than a year ago and a 27% decline in investment banking revenue, far worse than at other banks (WSJ)

• ASML shares fell 4% despite beating Q3 earnings expectations due to a slight miss on revenue and a flat 2024 revenue forecast (CNBC)

• P&G reported better-than-expected Q1 revenue and earnings despite volume falling for the sixth consecutive quarter (CNBC)

• What we're watching this week:

  • Today: TSMC, Blackstone, AT&T, American Airlines

  • Friday: American Express

• Full calendar here

Headline Roundup

• Wall Street concerns over swelling US debt puts Fed in tight spot (BBG)

• 10Y treasury yield climbs closer to 5% (WSJ)

• Biden to seek ‘unprecedented’ Israel package; pledges $100M for humanitarian relief in Gaza and West Bank (CNBC)

• Bill Ackman is still playing the SPAC market - just on his terms (BBG)

• Household net worth surged after the pandemic hit (WSJ)

• Sequoia targeted by US Committee’s China tech investment probe (BBG)

• Disinformation surge threatens to fuel Israel-Hamas conflict (RT)

• Netflix to raise prices after best subscriber gain in years (BBG)

• Disney to break out sports revenue in financial reports (RT)

• Google cuts dozens of jobs in news division (CNBC)

• Delta walks back changes to SkyClub access, loyalty program (AX)

• iPhone 15 sales start slow in China ahead of critical holiday season (CNBC)

• China’s economy faces deepening troubles in years ahead (WSJ)

• Obesity drug frenzy is a bubble, Kepler says after Ozempic maker Novo’s stock surge (BBG)

• Business travel would be booming - if flying weren’t so miserable (WSJ)

A Message From Plaid

Got a fear of fraud? Don’t worry – Plaid has you covered.

Let Plaid handle your KYC concerns:

As if Plaid didn’t already help enough with all of your digital banking needs, they’ve gone a step further (yet again) to make you and your customers’ lives easier.

What’d they do this time?

Oh, only receive one of the highest overall product scores among technology providers, further establishing them as the go-to partner for any and all of your financial services needs.

Among the hundreds of KYC and anti-fraud solutions that exist, only 22% can fight fraud, meet KYC requirements, and grow revenue. Of that 22%, Plaid stood out as the most capable… and this free report details exactly what sets them apart. In it, you’ll learn:

• How to get 3.5X ROI on your KYC investment

• The must-haves for KYC and fraud solutions

• What exactly puts Plaid head and shoulders above the competition.

Ready to rock? Download the full report for free right here.

Deal Flow

M&A / Investments

• OpenAI is in talks to sell existing employees’ shares at an $86B valuation (BBG)

• Greece is preparing to sell a 20% stake in the National Bank of Greece, which has a ~$5.3B market value, next month as part of a divestment plan fo the country’s lenders (BBG)

• Redwood Holdings, a family office set up by billionaire cousins and staffing industry veterans Jim Davis and Steve Bisciotti, will acquire food ingredient company Newly Weds Foods for ~$4B (RT)

• Whitehaven Coal will buy two Australian coking coal mines from BHP Group for at least $3.2B (BBG)

• German national railway company Deutsche Bahn plans to announce the sale of its international transport business Arriva to Miami-based infrastructure investor I Squared Capital today; the deal is estimated to be worth ~$1.7B, including debt (RT)

• Procter & Gamble is weighing options, including a sale, for the $1B Chinese operation of its hair-care brand VS Sassoon (BBG)

• Tillman Infrastructure, a builder and operator of cell towers, is in talks to raise $500M in preferred equity for growth (BBG)

• Buyout firm Apax Partners agreed to buy consulting firm Kin and Carta in a $243M deal (BBG)

• Former Lordstown Motors CEO Stephen Burns received bankruptcy court approval to acquire the EV company’s manufacturing assets for $10.2M (RT)

• Eli Lilly and Company will acquire pre-clinical biotechnology company Mablink Bioscience (BZ)

VC

• Passwordless authentication startup SecureW2 raised an $80M round led by Insight Partners (TC)

• Actym, a company developing a new drug modality to treat solid tumors, raised a $59.5M Series A led by Boehringer Ingelheim Venture Fund and Illumina Ventures (FN)

• Hayden AI, an AI startup providing data-driven intelligence applications, raised a $53M Series B led by Drawdown Fund (BW)

• Community and engagement platform Hivebrite raised a $37M Series B led by Quadrille Capital (PRN)

• Neo, an asset management startup, received a $35M investment from Peak XV Partners (TC)

• Roofr, a roofing startup, raised $23.5M in funding led by Vertical Venture Partners (PRN)

• Globacap, a capital markets technology startup, raised a $21M Series B led by Moore Strategic Ventures, Cboe Global Markets, and the Johannesburg Stock Exchange (FN)

• Workstorm, a provider of secure collaboration solutions, raised a $20M Series A at a $200M valuation led by Sidley Austin and Author Capital Partners (PRN)

• Cybersecurity firm Spec raised a $15M Series A led by SignalFire (PRN)

• Objective, a low-code platform that allows developers to build multi-search apps, raised $13M in venture funding from Matrix Partners, Two Sigma Ventures, and others (TC)

• Neurotech startup CIONIC raised a $12M Series A extension led by L Catterton (BW)

• Forge, a video game platform that rewards gamers for their play, raised an $11M seed round led by Makers Fund, BITKRAFT Ventures, and Animoca Brands (BW)

• Telehealth platform Allara raised a $10M Series A led by Google Ventures (TC)

• HawkEye 360, a startup using radio frequency technology to monitor transportation across air, land, and sea, raised a $10M Series D-1 from Lockheed Martin Ventures and Company Insiders (VC)

• Poppins, a digital therapeutic musical video game developer for children with neurodevelopmental disorders, raised an $8.4M funding round led by Eurazeo (EU)

• Anyplace, a startup aiming to give digital nomads a comfortable place to work, raised an $8.3M Series B led by LAUNCH Fund (TC)

• Flanks, an API for automated wealth services, raised an $8M Series A led by Earlybird Venture Capital (PRN)

• Aindo, a Trieste, Italy-based generative AI startup, raised a $6.3M Series A led by United Ventures (FN)

• Gero, a biotech startup focused on aging / chronic diseases, raised a $6M Series A extension led by Melnichek Investments (BW)

• SwingVision, a startup developing an AI-powered platform for tennis and other sports, raised a $6M Series A led by Authentic Ventures (VC)

• Gardenuity, a platform bringing gardening and wellness benefits to companies and consumers, raised a $5.5M seed round led by Anchor Capital’s Michael Mann and Retail Connection’s Alan Shor (VC)

• Compliance Risk, a Governance-as-a-Service solution created by MSPs for MSPs, received a $3.5M investment from Bellini Capital (BW)

• Auquan, a startup building an AI engine for financial services, raised a $3.5M seed round led by Neotribe Ventures (BW)

• Tap Invest, an Indian fixed-income investment platform, raised a $2M seed round led by Turbostart (FN)

• Sustainable fashion resale platform NOLD raised a $1.1M seed round led by Tilia Impact Ventures (EU)

SPAC

• Singapore-based video game distributor Grand Centrex will merge with RF Acquisition Corp at a $1.2B valuation (RT)

Debt

• Private credit funds at Apollo Global Management and Goldman Sachs Asset Management are among firms working to provide a $4.8B loan to back a take-private bid for classifieds company Adevinta (BBG)

• Goldman Sachs raised $4B through a two-part sale of fixed-to-floating rate notes (BBG)

• Saudi Arabia's sovereign wealth fund PIF is set to raise $3.5B in a debut sale of Islamic bonds that drew strong demand (RT)

• BNY Mellon raised $2B through a two-part sale of fixed-to-floating rate notes (BBG)

• Data center firm Princeton Digital Group, which is backed by Warburg Pincus, is seeking to raise $1B in debt for growth (BBG)

• Nexperia Holding, the Dutch unit of Shanghai-listed Wingtech Technology,is looking to raise up to $1B in a five-year loan (BBG)

Bankruptcy / Restructuring

• Google's Russian subsidiary has been recognized as bankrupt by a Moscow court (RT)

Fundraising

• KKR held a third and final close for its KKR Next Generation Technology Growth Fund III with ~$3B in capital commitments (TC)

• Buyout firm Gridiron Capital, which targets midsize North American businesses, raised $2.1B for its Gridiron Capital Fund V (WSJ)

• Technology-focused growth equity firm Springcoast Capital Partners raised over $500M for a debut commingled fund and a related investment vehicle (WSJ)

• Seed-stage VC RevRoad Capital closed its first fund at $61M (FN)

Crypto Corner

• The European Central Bank will begin a two-year preparation phase for the digital Euro (RT)

• US Treasury targets Gaza crypto business in sanctions to squeeze Hamas (CD)

Exec’s Picks

• Byrne Hobart wrote about the business of annual letters, and what makes for a good one.

• Sam Goldfarb explained how there is no single model for calculating the “term premium” on treasuries.

Litney Partners - Financial Recruiting 💼💼

If you're currently a junior investment banker looking to break into the buy side, considering lateraling to another investment bank, or have recently been impacted by widespread layoffs, it's time you check out Litney Partners, a partnership between Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates at leading private equity, hedge fund, venture capital, growth equity, and credit funds, as well as investment banks.

To get started, simply head over to the Litney website and create your profile by dropping your resume / filling out the form:

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