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Good Morning,

The British Pound is getting pounded, pension funds are bracing for PE losses, Costco won't raise membership fees, Canada recorded a budget surplus, Biden is awarding $1.5B to fight the opioid crisis, Euro zone bond yields are inverting, and hedge funds have been dumping energy positions.

If the pound falls any further, London bankers will have to start working New York hours. Thoughts and prayers to the analysts affected 🙏🏼

Let's dive in.

Before The Bell

If you want to learn more about crypto trading strategies and the world of DeFi, check out our Foot Guns newsletter.

Markets

•  Stocks took a hit Friday as surging interest rates continue to heighten fears of a global recession

  • The Dow fell almost 500 points, hitting a new 2022 low; at one point it was down 800+ points

  • The major averages have now been negative five of the last six weeks

• TSX suffered its biggest decline in 3 months, with CAD also sliding amid the oil rout

Earnings

• What we're watching this week

  • Wednesday: Jefferies, Vail Resorts

  • Thursday: Bed Bath & Beyond, Micron Technology, Nike, CarMax

• Full calendar here

Headline Roundup

• US business equipment borrowings grew 4% in August (RT)

• The eurozone is likely entering recession as price rises hit demand (RT)

• Euro and pound plunged on soft business activity data and UK budget woes (RT)

• Even euro zone bond curves are inverting fast (RT)

• Canada recorded a $4.66B budget surplus over first four months of 2022-23 (RT)

• Investors exited a net $7.32B in global bond funds and $1.86B in global equity funds in the week ended Sep. 21 (RT)

• Hedge funds dashed to exit energy positions two weeks ago, narrowly missing last weeks volatile oil market (RT)

• Global government bond losses on track for worst year since 1949: BofA (RT)

• Public pension funds are bracing for PE losses (WSJ)

• World Bank president is declining calls to step down (AX)

• China warned 'external' interference in Taiwan will lead to 'forceful' response (AX)

• Oracle's chairman and CEO's compensation topped $138M each last fiscal year (WSJ)

• Barclays shareholders sued in US over $17.6B debt sale blunder (RT)

• Costco won't raise membership fees after earnings beat expectations (CNBC)

• UK drugmaker GSK poached Burberry CFO Julie Brown to create an all-female top team (RT)

• Gucci and Burberry are joining the booming second hand luxury trade (WSJ)

• The Biden administration is awarding $1.5B to fight the opioid crisis (CNBC)

A Message From LMNT

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Check out LMNT.

LMNT is an electrolyte drink mix, but not like any electrolytes you’ve had before. It contains 1,000mg of sodium, 200mg of potassium, and 60mg of magnesium. But most importantly, 0mg of sugar, 0mg of coloring, and no artificial ingredients or gluten. Basically, it’s the perfect recipe to rehydrate and prevent headaches and cramps.

Yeah, you can use LMNT after workouts. But it’s also the secret sauce to recover after a late night of drinking. If you’re the work hard, play hard type (who am I kidding, we all are) try LMNT here, and get your free sample pack!

Deal Flow

M&A / Investments

• Citigroup is seeking a second and perhaps final round of bids for its Mexican retail arm Banamex by the end of October in what is expected to be a $7-$8B deal (BBG)

• A group of investors led by media mogul Stephane Courbit offered to buy a ~48% stake in French media holding company Groupe M6 for ~$1.18B (BBG)

• Blackstone will sell an up to $400M stake in Embassy Office Parks REIT, India’s biggest REIT, via India stock exchange block deals (RT)

• European PE firm Investindustrial acquired a 52% controlling stake in Italian luxury food and drink group Eataly for ~$200M (FT)

• Investment vehicle Remgro is planning to sell its 25% stake in South African energy giant TotalEnergies in a potential $140M+ deal (BBG)

• Online furniture store Made.com has put itself up for sale after inflation hurt furniture demand (BBG)

VC

• Hadean, a London-based spatial computing startup building the infrastructure for the metaverse, raised a $30M Series A led by Epic Games, Tencent, and more (TC)

• Inclined Technologies, a fintech startup helping consumers benefit from life insurance policies, raised a $15M Series A led by HSCM Ventures (BW)

• Crypto derivatives protocol Nibiru raised a $7.5M seed round at a $100M valuation from Tribe Capital, Republic Capital, and Kraken (TC)

• Manilla-based cloud kitchen operator CloudEats raised a $7M Series A extension led by Nordstar (TC)

• Leuko, a startup developing a non-invasive white blood cell monitoring solution, raised a $5M Series A led by HTHVC, GoodGrowthCapital and more(BW)

SPAC

• European lottery group Allwyn Entertainment has called off its planned SPAC merger, citing volatile market conditions (RT)

• Trump-linked Digital World Acquisition Corp. shares have fallen to ~$16 after hitting $97 earlier this year, as PIPE financing is in jeopardy (CNBC)

Fundraising

• China Construction Bank will set up a $4.2B fund to buy properties from developers (BBG)

Crypto Corner

• Crypto exchange Coinbase was sued for $350M for patent infringement over crypto transfer technology (RT)

• California governor Gavin Newsom vetoed a bill that would create a license for companies operating in the crypto space (similar to New York's BitLicense), stating a more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases (TB)

Exec's Picks

• The Mickey Mantle SGC 9.5 rookie card set a world record. Find the SGC 7 example trading right now on Rally, the original app for buying and selling shares in collectibles. With fractional investing on Rally, you can build an alternative investment portfolio.

• Kyla Scanlon's most recent piece, "The Fedconomy", gives a great breakdown of everything going on from the Fed's decisions, to inflation, to treasury yields, to equities. Check it out here.

The Hiring Block 💼

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We aim to curate jobs across IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We'll sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're a company looking to hire candidates and want to list a job opening on our board and feature on Exec Sum, click the button below:

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