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China Skepticism Stays Strong

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Good Morning,

September's jobs report blew passed expectations, bond traders are positioning for a 'no landing,' the China rally is failing to convince some top managers, and Apple is slowly moving away from its annual release strategy.

Looking to invest in private markets alongside Wall Street veterans? Check out 10 East, a membership-based investment platform offering targeted exposure to PE, VC, and more.

Let's dive in.

Before The Bell

As of 10/04/2024 market close.

Markets

  • US stocks rose on Friday as investors digested a stellar jobs report

    • Dow closed at an ATH

    • Traders reduced bets of a second 50 bps rate cut to ~5%

  • US yields rose to their highest level since early-August

  • Oil rose 8% for its biggest weekly gain in over a year 

  • Dollar hit its highest level since August

Earnings

  • What we're watching this week:  

    • Tuesday: PepsiCo

    • Thursday: Delta, Domino's

    • Friday: JPMorgan, Wells Fargo, BlackRock

  • Full calendar here

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Headline Roundup

  • US job creation soars, unemployment falls in September (CNBC)

  • S&P's $8T rally to be tested by tricky earnings season (BBG)

  • Bond traders buckle up for 'no landing' after jobs surprise (BBG)

  • Historic China rally is failing to convince top fund managers (BBG)

  • China stimulus draws investors back to offshore property bonds (RT)

  • Investors snap European equities to gain cheap US exposure (FT)

  • Europeans hoard savings as US consumers boost economy (FT)

  • Corporate insiders are sitting out the 2024 market rally (WSJ)

  • Google’s share of US search ad market is slipping as TikTok and AI startups present new competition (WSJ)

  • Apple moves away from its annual release strategy (BBG)

  • PwC launched an overhaul of its UK operations (FT)

  • Active ETFs triumph over passives in fees from new flows (FT)

  • AI startups ride on investor frenzy to raise billions in 2024 (RT)

  • Big oil is urging Trump not to gut Biden’s climate law (WSJ)

  • Wynn Resorts earned UAE's first gambling license (RT)

  • US firms are increasingly tying pay to performance bonuses (WSJ)

A Message From 10 East

Where Sophisticated Investors Access Private Markets

10 East is a co-investment platform where sophisticated investors access private market investments alongside a veteran team with a 12+ year track record of strong performance across over 350 transactions. The firm is led by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner.

Members have the flexibility to participate on a deal-by-deal basis across private equity, credit, real estate, and venture capital.

Benefits of 10 East membership include:  

  • Flexibility – members have full discretion over whether to invest on an offering-by-offering basis. 

  • Alignment – principals commit material personal capital to every offering.  

  • Institutional resources – a dedicated investment team that sources and diligences each offering.

There are no upfront costs or commitments associated with joining 10 East.

Exec Sum readers can join 10 East with complimentary access here.

Deal Flow

M&A / Investments

  • PE firm MBK Partners and Korean conglomerate Young Poong increased their offer for Korea Zinc to $12.9B  

  • Global miner Rio Tinto is in talks to acquire lithium miner Arcadium at a $4B-$6B valuation

  • Italy's Italgas agreed to buy rival 2i Rete Gas in a $5.8B deal

  • Paris-listed linen cleaning services Elis made a takeover proposal for $3.7B-listed US peer UniFirst

  • Defense giant Czechoslovak Group will acquire Vista Outdoor's ammunition business Kinetic Group for $2.23B and Strategic Value Partners will acquire Vista's goods unit Revelyst for $1.13B

  • 7-Eleven-owner Seven & i Holdings is seeking buyers for its Ito-Yokado stores and supermarkets, which may fetch $2.2B-$2.9B  

  • Apollo is in talks to acquire $2.3B-listed aerospace components manufacturer Barnes

  • China's Tencent and Ubisoft-founder Guillemot are considering buying out the $2B-listed French video game developer

  • Precious metals miner Coeur Mining agreed to acquire SilverCrest Metals for $1.7B

  • Singapore SWF Temasek is in talks to buy a 10%-15% stake in Indian snack maker Haldiram Snacks at an ~$11B valuation

  • Activist investor Starboard Value has taken a ~$1B stake in Pfizer and wants the struggling drugmaker to make changes to turn its performance around

  • New York Sun-owner Dovid Efune is close to acquiring UK’s Telegraph newspaper from RedBird IMI for $722M

  • Josh Harris' 26North Partners agreed to buy regional gym operator Onelife Fitness for ~$500M

  • Internet Brands will acquire Thomson Reuters' online legal information business FindLaw 

  • World Rugby rekindled talks to raise funds for US expansion

VC

  • Lithium extraction startup EnergyX raised a $75M round from small retail investors

  • AEOS, a Croatian AI-powered video marketing solutions, raised a $10.9M Series B led by Taiwania Capital 

  • Zitcha, an Australian unified retail media platform, raised a $10M Series A led by VMG Partners 

  • Kando, a wastewater intelligence company, raised a $10M round led by DC Thomson, LIP, and more

  • Voltfang, a green energy storage solutions startup, raised an $8.8M Series A led by FORWARD.One 

  • Brazilian payments fintech Barte raised an $8M Series A led by AlleyCorp 

IPO / Direct Listings / Issuances / Block Trades

  • Saudi Arabia's PIF is mulling raising its 8.6% stake in $67B-listed Nintendo

  • Hyundai is seeking a $19B valuation in its $3.3B IPO of its Indian unit

  • O&G developer Infinity Natural Resources filed for a US IPO

  • German online car-parts dealer Autodoc is preparing a potential Frankfurt IPO

Bankruptcy / Restructuring

  • Top lenders Eaton Vance, Canyon Partners, and Bain Capital will take control of bankrupt appliance-parts maker Robertshaw

  • PE-backed STG Logistics reached a deal with creditors to overhaul debt as part of a $300M financing package

Crypto Corner

  • Panic buying of Chinese Stocks weighs on most-traded crypto USDT

  • Coinbase will delist some stablecoins in Europe ahead of new regulations

Exec’s Picks

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