Cage Fight Canceled - Zuck
Zuck says the fight with Musk is off, the US housing market is recovering, Goldman expects a Fed rate cut in Q2 2024, the latest stock market rally has stalled, Amazon is racing to catch Microsoft and Google in generative AI, airlines are adding more high-end seats, and China hedge funds are down bad
Zuck says the fight with Musk is off, the US housing market is recovering, Goldman expects a Fed rate cut in Q2 2024, the latest stock market rally has stalled, Amazon is racing to catch Microsoft and Google in generative AI, airlines are adding more high-end seats, and China hedge funds are down bad.
Let’s dive in.
Before The Bell
As of 8/11/2023 market close.
US stocks closed mixed as investors digested Friday’s July PPI report, which showed a 0.3% MoM increase
September WTI oil contracts rallied for the 7th consecutive week
Shanghai’s SSE fell 2%, Hong Kong’s HSI fell 0.9%, and Shenzhen’s SZI fell 2.2% due to deflation concerns and property developer Country Garden’s default risk
Soho House stock surged 15% after reported Q2 sales growth of 18.5% YoY, beating analyst expectations (BZ)
Huawei reported modest 2.2% YoY growth in its consumer business revenue due to China’s slower-than-expected economic rebound and continued US sanctions (CNBC)
What we're watching this week:
Today: Suncor Energy, Rumble
Tuesday: Home Depot, BHP Group, Sea Limited, H&R Block
Wednesday: Cisco Systems, TJX, JD.com, Target
Thursday: Walmart, Applied Materials, Ross Stores, Keysight Technologies
Friday: Deere & Company, Palo Alto Networks, Estee Lauder
Full calendar here
US housing market recoups $3T lost in recent slowdown (BBG)
Bond market sees no end to tumult as Fed casts a hawkish shadow (BBG)
Goldman expects a Fed rate cut in Q2 2024 (BBG)
The Fed is playing a waiting game to try to avoid a recession (BBG)
Stock rally stalls despite better-than-expected earnings season (WSJ)
Zuckerberg says ‘time to move on’ from Musk cage fight match (BBG)
How Amazon is racing to catch Microsoft and Google in generative AI with custom AWS chips (CNBC)
Airlines can’t add high-end seats fast enough as travelers treat themselves to first class (CNBC)
China hedge funds in crisis after losses, US investors retreat (BBG)
Tesla cuts price of top-end Model Ys in China in latest salvo (BBG)
Bond traders fear ECB hawks as energy jitters return to Europe (BBG)
Stablecoins give the US a way to make the dollar ‘relevant’ again (CNBC)
Trump heading for Republican ‘coronation’ as 2024 rivals struggle to stop him (RT)
Death toll from Maui fire reaches 93, authorities say effort to count the losses is just starting (CNBC)
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M&A / Investments
SoftBank Group is in talks to buy the remaining 25% stake that it doesn’t own in chip designer Arm, which will go public next month at a $60B-$70B valuation (RT)
United States Steel Corp rejected rival Cleveland-Cliffs’ $7.3B cash and stock offer as being ‘unreasonable’ and began a formal review of strategic alternatives after receiving multiple unsolicited bids (BBG & BBG)
The SEC is investigating Illumina’s $7.1B acquisition of cancer detection test maker Grail and requested statements and disclosures about conduct and compensation from the companies’ management (RT)
Brookfield is attempting to assemble a consortium out of the remaining bidders (Singapore’s GIC, Antin Infrastructure Partners, and KSL Capital Partners) for its $5.1B Center Parcs resort chain after a final July bid deadline passed with no formal offers (FT)
Bain Capital will take Asian data center operator Chindata Group Holdings private in a $3.2B cash deal (RT)
UK’s CMA provisionally cleared UnitedHealth Group's $1.6B acquisition of healthtech firm EMIS (RT)
PE firms General Atlantic and Dragoneer Investment Group will take Brazilian education software firm Arco Platform private at a $1.5B EV (RT)
Fintech firm ION Group will buy Italian asset manager Prelios from US hedge fund Davidson Kempner Capital Management for ~$1.5B (RT)
Jonathan Harmsworth, the owner the UK’s Daily Mail, is in talks with investors over a bid for the Daily Telegraph (BBG)
Neurophth, a Chinese gene therapy company for ophthalmic diseases, raised a $95M Series C+ led by Yangtze River-CMB International Industry Fund, Wuhan Optical Valley Financial Holding Group, and others (FN)
Climate management and accounting platform Persefoni raised a $50M Series C-1 led by TPG Rise (FN)
General Fusion, a nuclear fusion startup, raised a $25M Series F led by BDC Capital and GIC (FN)
Kraftblock, a sustainable high-temperature energy storage startup, raised a $22M Series B led by Shell Ventures (FN)
Data intelligence platform Tracer raised an $18.1M Series A led by NewRoad Capital Partners, Progress Ventures, and BDMI (FN)
Flueid, a startup using data and intelligence to accelerate the verification of title across the real estate lifecycle, raised $12.5M in funding: a $10M Series B led by Aquiline Technology Growth and $2.5M in debt from Eastward Capital Partners (FN)
Native Pet, a St. Louis-based pet supplement company, raised an $11M Series B led by CAVU Consumer Partners (FN)
SaaS-based space utilization platform InnerSpace raised a $10M Series A led by Yaletown Partners (FN)
Zetagen Therapeutics, a clinical-stage biopharmaceutical company focused on the treatment of metastatic cancers to bone and soft tissue organs, raised a $9.8M Series B from New York Ventures and Consolidated Capital Investments (BW)
VR design and collaboration startup ShapesXR raised an $8.6M seed round led by Supernode Global (FN)
Web3 transaction security platform Cube3.AI raised an $8.2M seed round from Blockchange Ventures, Dispersion Capital, Symbolic Capital, Hypersphere Ventures, and more (FN)
Digital engagement platform Endear Health raised an $8M round led by Optum Ventures, Blue Cross of Idaho, and 8VC (FN)
Olis Robotics, a startup developing remote robot management tech, raised a $4.1M round led by PSL Ventures (BW)
Autonomous AI startup 11xAI raised a $2M pre-seed round led by Project A Ventures (TC)
IPO / Direct Listings / Issuances / Block Trades
A group of private credit funds led by Ares Management will finance TPG’s buyout of Australian funeral home operator InvoCare with a $521M loan (BBG)
Bankruptcy / Restructuring
Bankrupt data center operator Cyxtera Technologies is considering a sale of assets or a debt recapitalization after drawing interest from Brookfield Infrastructure Partners and Digital Realty Trust (BBG)
British homeware and household goods discount retailer Wilko fell into administration after failing to secure emergency funding, putting 12,500 jobs and 400 stores at risk (RT)
InteliGlas, a provider of AI products for offices, filed for bankruptcy over a dispute between a co-founder and shareholders (WSJ)
Diamond Sports Group, a bankrupt owner of local sports channels, is expediting a Chapter 11 exit plan before the professional basketball and hockey seasons start (BBG)
Tyler Cowen had an excellent conversation with Y Combinator founder Paul Graham on ambition, art, and evaluating talent.
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