Debt Ceiling = Reached

The US reached its debt ceiling again, big hedge funds are outperforming small hedge funds, Jamie Dimon expects interest rates to climb above 5%, Jamie Dimon also got paid $34.5M in 2022, Texas banned Citi from underwriting municipal bonds, and Reed Hastings stepped down as Netflix's CEO.

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The US reached its debt ceiling again, big hedge funds are outperforming small hedge funds, Jamie Dimon expects interest rates to climb above 5%, Jamie Dimon also got paid $34.5M in 2022, Texas banned Citi from underwriting municipal bonds, and Reed Hastings stepped down as Netflix's CEO.

Let's dive in.

Before The Bell

As of 1/19/2023 market close.

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

Markets

  • US stocks continued Wednesday's slide yesterday after strong labor market data renewed concerns of a hawkish Fed

    • The Dow and S&P 500 fell for a third-straight day

  • The pan-European Stoxx 600 fell 1.6% to break a six-day win streak after the ECB pushed back against bets on smaller rate hikes

Earnings

  • Netflix missed on Q4 EPS estimates but smashed new subscriber expectations sending shares up 7.2% AH (CNBC)

  • Procter & Gamble met Q2 EPS and revenue estimates, albeit on falling profit and revenue as higher prices struggled to offset dropping sales volumes; they nonetheless raised their FY sales forecast (CNBC)

  • Full calendar here

Headline Roundup

  • US reached its $31.4T debt ceiling, will start 'extraordinary measures' to avoid defaulting (AX)

  • US Treasury's 'extraordinary' cash management measures will last through June 5 (RT)

  • Japan’s inflation rate hit 4% for the first time since 1981 (BBG)

  • Moody's and Fitch expect a debt limit agreement, albeit with time (RT)

  • Big HFs outperformed smaller ones for first time since 2018 (WSJ)

  • Jamie Dimon expects interest rates to cross 5% (CNBC)

  • JPMorgan leaves CEO Jamie Dimon's pay at $34.5M for 2022 (BBG)

  • Chinese firms are set for highest earnings growth in five years (RT)

  • JPMorgan and Standard Chartered won approval to expand in China (RT)

  • JPMorgan set aside $10B for private lending drive (RT)

  • Twitter's revenue dropped 35% in Q4 (TI)

  • Global property market faces $175B debt spiral (BBG)

  • Texas banned Citi from underwriting municipal bonds on gun law row (RT)

  • KKR blocked investor withdrawals from its $1.6B REIT (RT)

  • Netflix founder Reed Hastings will step down as CEO, remain as chairman (CNBC)

  • TikTok must comply with EU rules or face ban (RT)

  • Koch got $2.5B in dividends from a unit that offloaded its asbestos liability by spinning off and declaring bankruptcy (RT)

  • Capital One cut over 1.1k tech jobs (BBG)

  • WeWork will cut ~300 global jobs (RT)

  • US union membership rate hit an all-time low in 2022 (AX)

  • New Zealand PM Jacinda Ardern resigned (AX)

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Deal Flow

M&A / Investments

  • Mining company Hindustan Zinc agreed to buy miner Vedanta’s international zinc operations for $2.98B (BBG)

  • RSA Security, the former cyber security division of Dell Technologies, is exploring a sale of Archer, its risk and compliance software unit, for $2B+ (RT)

  • Digital media company Vice Media is restarting its sale process, likely at an up to $1B valuation (CNBC)

  • Mobile game developer Playtika offered to buy Rovio Entertainment, the maker of the Angry Birds mobile games, at an $810M valuation (BBG)

  • Asian PE firms Capital Square Partners and Basil Technology Partners agreed to merge in a $700M deal (BBG)

  • India’s Sun Pharmaceutical Industries agreed to buy US-based drugmaker Concert Pharmaceuticals for $576M (RT)

  • Legal software maker Exterro agreed to buy e-discovery software provider Zapproved (RT)

VC

  • Indian fintech startup PhonePe raised a $350M round at a $12B valuation led by General Atlantic (TC)

  • Autonomous electric yard truck startup Outrider raised a $73M Series C led by FM Capital (TC)

  • Link, a payments startup allowing merchants to accept direct bank payments, raised $30M: a $20M Series A led by Valar Ventures and a $10M seed round led by Tiger Global (TC)

  • aiOla, a startup using AI to automate manufacturing inspection processes, raised $25M in funding led by New Era (PRN)

  • Dreamscape Learn, an immersive learning company, raised a $20M Series A led by Bold Capital Partners, GSV Ventures, Verizon Ventures, and others (PRN)

  • Open source B2B e-commerce platform Oro raised a $13M round led by Zubr Capital (TC)

  • Notch, a startup helping restaurants digitize operations, raised a $10M round led by Portage (PRN)

  • Endevica Bio, a startup developing peptide drugs to treat cachexia, raised a $10M Series B from existing investors (BW)

  • Inclusive beauty e-commerce destination thirteen lune raised an $8M seed+ round led by The BrainTrust Fund (BW)

  • Dry cleaning robotics startup Presso raised an $8M seed round from Uncork Capital, 1517 Fund, AME Cloud Ventures, and more (TC)

  • Rx Redefined, a tech-enabled provider of medical supply services for group practices, raised an $8M Series A led by Crosscut Ventures (PRN)

  • Terminal49, an ocean freight visibility platform, raised a $6.5M Series A led by Stage 2 Capital (PRN)

  • Scenario, an AI platform that generates game art assets, raised a $6M seed round led by Play Ventures (TC)

  • Customer experience automation platform Akia raised a $6M Series A led by Altos Ventures (BW)

  • Metaverse and NFT startup Digital Village raised a $4M round led by BOLD (TCH)

  • Scrintal, a visual note taking and collaboration tool, raised a $1.08M round led by Spintop Ventures (TC)

IPO

  • Bank DKI, one of Indonesia's biggest regional development banks, is considering a $200M IPO this year (BBG)

SPAC

  • PE firm Helios Investment Partners plans to merge some of its assets with Onyx Acquisition Co. in an almost $1B deal (RT)

Bankruptcy / Restructuring

  • Brazilian retailer Americanas filed for bankruptcy protection amid discovery of ~$4B in accounting inconsistencies and a legal feud with creditors; the firm will restructure debt of ~$8.2B (RT)

  • Crypto lender Genesis filed for Chapter 11 bankruptcy protection; they plan to pursue a 'sale, capital raise, and/or an equitization transaction' in hopes to emerge under new ownership (CT)

Fundraising

  • PE firm Clayton Dubilier & Rice raised $16B for its $20B flagship buyout vehicle Fund XII (MM)

  • ​​GSP, a New York-based principal investment firm, closed its Fund 4.0 with $850M in committed capital (BW)

  • Spanish asset manager Arcano raised $487M for its fourth dedicated PE secondaries fund (SI)

  • Sony Ventures Corporation, a subsidiary of Sony Group, raised $210M for its third fund (PRN)

  • Sports-focused early-stage VC firm Courtside Ventures raised a $100M Fund III (PRN)

Crypto Corner

  • FTX's new CEO said the crypto exchange could restart (WSJ)

  • Alameda Research's multi-billion dollar relationship with Genesis began in 2018, with SBF asleep in a beanbag chair (WSJ)

  • DeFi protocol MakerDAO, which holds 85% of Gemini Dollars, will maintain its holding (AX)

  • Genesis creditors backed Winklevoss promissory note claim (TB)

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