DEI is so 2024

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Good Morning,

BofA is now forecasting rate hikes after a stellar jobs report, IMF will study risks of PIK debt, biotech VC is booming since the turn of the new year, Point72 is raising fees, the dollar is proving difficult for global peers, and Zuck went full anti-woke on Joe Rogan's podcast after eliminating DEI at Meta.

Meta wasn't even the only Big Tech name to stir up DEI news this weekend…

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Let's dive in.

Before The Bell

As of 1/10/2025 market close.

Markets

  • US markets tumbled on Friday as a hot jobs report dashed hopes for further Fed rate cuts 

    • S&P had its worst day since mid-December 

    • Rates traders priced in just one rate cut for 2025

    • VIX index hit a three-week high 

  • China's CSI 300 fell over 5% last week in its worst start to the year since 2016

    • MSCI China index entered a bear market 

  • US 2Y yield surged over 10 bps to 4.37%

  • US 10Y yield spiked to its highest since November 2023 

  • US 30Y yield hit 4.95% to hit its highest since November 2023

  • China 10Y yield fell below 1.6% to a new record low

  • US dollar posted a sixth-straight weekly gain to hit a fresh two-year high

    • Euro fell to its lowest since November 

    • Pound hit a 14-month low on UK fiscal woes

    • Aussie dollar hit its lowest since Covid

  • Oil hit a four-month high amid sweeping US sanctions on Russia

  • Uranium surged to a record high amid an AI energy demand frenzy

  • Bond markets got absolutely battered last week on dampened rate cut hopes, which also pressured equity valuations. Check out Peter Tuchman's weekly recap on the sentiment from the floor.

Earnings

  • What we're watching this week:  

    • Wednesday: JPMorgan, Goldman Sachs, Citigroup, Wells Fargo, BlackRock

    • Thursday: Bank of America, Morgan Stanley, UnitedHealth, TSMC

  • Full calendar here

Prediction Markets

  • Not a complete hostile takeover but maybe a minority stake purchase?

  • Trade your predictions on a range of events legally, only on Kalshi. Get a $20 bonus when you deposit $100 with code LIT on signup!

Headline Roundup

  • US unemployment rate fell to 4.1% in blowout jobs report (CNBC)

  • BofA is now projecting a rate hike (RT)

  • US stock market faces reality check in high-bar earnings season (BBG)

  • PE targets Europe for big LBO deals (FT)

  • IMF will study growing risks from PIK debt (BBG)

  • UK gilt selloff triggers pension cash calls in first big test since 2022 crisis (RT)

  • PIMCO, others stick with UK bond bets despite turmoil (BBG)

  • Point72 will return up to $5B in profits and raise fees (WSJ

  • Singapore SWF GIC is increasing private markets exposure (BBG)

  • Activist investor Weinstein wants to be 'white knight' of UK stock market (FT)

  • Chinese traders' demand for global stocks prompt rare ETF halts (BBG)

  • FDIC extended BlackRock deadline over US bank stakes (BBG)

  • Meta abolished DEI (AX)

  • Amazon ended some DEI programs (CNBC)

  • Apple opposes shareholder measure to eliminate DEI (BBG)

  • Pfizer must face lawsuit over diversity program (RT)

  • JPMorgan disabled employee comments after RTO backlash (WSJ)

  • US supports Musk argument in OpenAI lawsuit (RT)

  • SCOTUS appears inclined to uphold TikTok ban (RT)

  • Disney, Fox and Warner canceled their Venu Sports streaming JV (WSJ)

  • Kohl's will close 27 stores (AX)

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Deal Flow

M&A / Investments

  • Electric energy firm Constellation Energy agreed to buy rival Calpine in a ~$27B cash and stock deal, including debt

  • Johnson & Johnson is exploring a bid for $10B-listed CNS-focused Intra-Cellular Therapies

  • Apollo is considering taking a $9.5B stake in 7-Eleven-owner Seven & i as part of a bid by the founding Ito family to take the company private

  • KKR is exploring a sale of UK waste management firm Viridor at an $8.5B valuation, including debt

  • German media group Ströer is exploring a sale of its $4B core advertising unit after receiving takeover interest from PE firms KKR, H&F, CVC, and EQT

  • Blackstone is weighing a sale or IPO of mobile app marketing provider Liftoff at an over $4B valuation, including debt

  • Chow Tai Fook Enterprises is considering a stake sale in Australian electricity supplier Alinta Energy, which it acquired for $2.5B in 2017 

  • Eli Lilly is in advanced talks to acquire cancer-focused biotech Scorpion Therapeutics in a $2.5B deal 

  • Bain Capital sweetened its takeover offer for Australian wealth manager Insignia Financial to match CC Capital's $1.8B bid

  • Quanterix agreed to acquire life sciences peer Akoya Biosciences in an all-stock deal to create a $670M combined entity

  • US sued to block American Express GBT's $570M proposed acquisition of rival corporate travel management firm CWT

  • Biogen offered to acquire the remaining 90% stake in brain-focused biopharma firm Sage Therapeutics at a $442M valuation

  • Investment firm DBAY Advisors agreed to acquire UK healthcare group Alliance Pharma for $430M cash

  • Italian fashion brand Prada is reportedly evaluating a potential purchase of Versace from Capri Holdings

VC

  • Cardiovascular drug development startup Kardigan raised a $300M Series A led by Perceptive Advisors, ARCH Venture Partners, and Sequoia Heritage

  • Windward Bio, a clinical-stage drug development startup focused on immunological diseases, raised a $200M Series A led by OrbiMed, Novo Holdings, and Blue Owl Healthcare Opportunities

  • Timberlyne Therapeutics, a clinical-stage biopharma startup developing novel therapies for autoimmune disorders, raised a $180M Series A led by Abingworth, Bain Capital Life Sciences, and Venrock Healthcare Capital Partners

  • Ouro Medicines, a biotech developing immune reset therapeutics, raised a $120M Series A led by TPG Life Sciences Innovations, NEA, and Norwest Venture Partners

  • Saluda Medical, a medical device company developing treatments for chronic neurological conditions, raised $100M led by Redmile Group

  • RhyGaze, a biotech focused on vision loss, raised an $86M Series A led by GV

  • Light Horse Therapeutics, a developer of small molecule therapeutics, raised a $62M Series A led by Versant Ventures

  • Numab Therapeutics, a startup developing antibody-based immunotherapies for inflammation and cancer, raised a $55M Series C led by Cormorant Asset Management, Forbion, HBM Healthcare Investment, and Novo

  • Supply chain security startup Overhaul raised a $55M round led by Springcoast Partners

  • Immunis, a clinical-stage biotech developing multi-active biologics for age and disease-related immune dysregulation, raised a $25M Series A-1 from LifeSpan Vision Ventures, JLS Fund, and more

  • AnaCardio, a clinical-stage biopharma focused on heart failure treatments, raised a $19M Series A extension led by Novo Holdings, Pureos Bioventures, and Sound Bioventures

  • Nsave, a provider of trusted and compliant accounts for people in high inflation economies, raised an $18M Series A led by TQ Ventures

  • Gumloop, a startup letting users automate tasks with drag-and-drop modules, raised a $17M Series A led by Nexus Venture Partners

  • Beams, a pricing engine to predict the cost of home renovation projects, raised a $9M Series A led by ETF Partners

  • Biomaterials startup UNCAGED Innovations raised a $5.6M seed round led by Green Circle Capital and Fall Line Capital

  • Nevermined, an AI payment infrastructure for AI-to-AI transactions, raised a $4M round led by Generative Ventures

IPO / Direct Listings / Issuances / Block Trades

  • Venture Global LNG, the second largest US producer of LNG, will begin pitching investors this week for its US IPO, targeting a $110B valuation

  • PE firm H&F is considering a listing of UK security group Verisure at a ~$20.5B valuation

  • TDR Capital-backed UK gas station operator EG Group plans to IPO this year at a potential $13B valuation 

  • China's Zijin Mining Group is in talks to take a stake in $6B-listed Chinese lithium miner Zangge Mining, which could potentially lead to a takeover

  • UK luxury logistics firm Ferrari Group is considering an Amsterdam IPO

  • Weight-loss drug developer Metsera filed for a US IPO just nine months after emerging

Debt

  • Mars raised $1B via a privately-placed dollar and pound-denominated bond sale

  • Nigeria's neighbor Benin is seeking to raise $750M in a dollar bond sale

  • India's Vedanta Resources is in talks with banks to raise over $450M to repay debt

  • Tata Capital, the financial services unit of Indian conglomerate Tata Group, is planning a debut dollar bond sale 

Bankruptcy / Restructuring / Distressed

  • Private hospital owner Prospect Medical filed for Chapter 11 bankruptcy

  • Fabrics and crafts retailer Joann is considering a second bankruptcy filing in less than one year

  • Italy's Acciaierie d'Italia steelworks, which is currently in state-led administration, received 10 purchase offers

  • A Hong Kong court ordered the liquidation of a key offshore unit of failed Chinese developer Evergrande

  • Chinese developer Shimao Group received a liquidation petition

Fundraising

  • Private credit firm Medalist Partners is seeking to raise $750M for its fourth fund

  • Eli Lilly partnered with VC a16z on a $500M Biotech Ecosystem Venture Fund

  • King Street Capital will launch a new private credit fund anchored by Generali 

Crypto Sum Snapshot

  • Jamie Dimon slammed crypto in his latest interview (CBS)

  • Pastor who saw crypto project in 'dream' was indicted for fraud (BC)

  • CFPB plans to strengthen consumer safeguards for digital payments (BBG

  • Check out Crypto Sum for the full stories on everything crypto!

Exec’s Picks

Two seasoned investment bankers. 30 years of joint industry experience. 45 minutes of exclusive insights.

Join UpSlide's webinar on January 30th and learn how to transform your teams' pitching process and beat the competition this year. Register today.

Joe Rogan sat down at length with Mark Zuckerberg, who slammed DEI and exposed the Biden administration in a candid conversation addressing topics surrounding Meta and their role in the evolving political landscape. It's a worthwhile listen.

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