More European Rate Hikes

The ECB delivered a 10th rate hike, August wholesale inflation rose 0.7%, Brookfield’s CFO said private credit and banks can co-exist, cocaine is set to surpass oil as Colombia’s main export, Disney is cutting streaming targets for Disney+, and NASA is studying UFOs with AI.

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Litquidity Capital
September 15, 2023

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The ECB delivered a 10th rate hike, August wholesale inflation rose 0.7%, Brookfield’s CFO said private credit and banks can co-exist, cocaine is set to surpass oil as Colombia’s main export, Disney is cutting streaming targets for Disney+, and NASA is studying UFOs with AI.

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Let’s dive in.

Before The Bell

As of 9/14/2023 market close.

Markets

  • US stocks rose as investors digested August PPI data and a revival of the IPO market after Arm’s debut day of trading

  • WTI prices rallied 2.5% to $90.70/barrel, igniting inflation worries

  • European stocks rose, led by a 1.95% gain in London’s FTSE, after the European Central Bank hiked interest rates by 25 bps to 4%

Earnings

  • Adobe beat fiscal Q3 analyst earnings and revenue estimates and forecast slightly better-than-expected adjusted earnings and sales (IBD)

  • What we're watching this week:

    • Today: Lennar

  • Full calendar here

Headline Roundup

  • ECB delivers 10th hike as Lagarde won’t quite confirm rate peak (BBG)

  • August wholesale inflation rises 0.7%, hotter than expected, but core prices in check (CNBC)

  • Brookfield’s CFO says private credit and banks can co-exist (BBG)

  • More companies, especially airlines, warn higher costs will eat into profits (CNBC)

  • Cocaine is set to overtake oil to become Colombia’s main export (BBG)

  • America’s battle with shoplifting is getting dangerous for workers (WSJ)

  • SoftBank’s Masayoshi Son says AI-fueled technology can surpass human intelligence ‘big time’ (CNBC)

  • T-Mobile in talks to make big broadband bet with move into fiber (BBG)

  • Disney to cut target for Disney+ streaming subscribers (BBG)

  • IRS shuts door on new pandemic tax credit credit claims until at least 2024 (WSJ)

  • Trucker Yellow paid executives millions just before bankruptcy (BBG)

  • Air Force chief sounds off on Musk’s Ukraine decision, tensions with China and future of war (CNBC)

  • NASA will study UFOs using AI and crowdsourcing (WSJ)

  • Mexico regains highest US air-safety rating after two years (BBG)

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Deal Flow

M&A / Investments

  • Taiwan’s WT Microelectronics will acquire closely-held electronic components distributor Future Electronics in a $3.8B deal (BBG)

  • PE owner Berkshire Partners is exploring a sale of US carwash equipment provider National Carwash Solutions, which could be valued at ~$3B (RT)

  • British midsize lender Co-operative Bank, which has a book value of $1.6B, kicked off its sale and set an early October deadline for bids (RT)

  • Trucking firm Estes Express submitted a revised $1.53B cash bid for bankrupt trucker Yellow’s shipment centers, ahead of Old Dominion Freight Line $1.5B bid (RT)

  • PE firms I Squared Capital Advisors and TDR Capital bid $1.4B cash for Spanish certification and quality control service company Applus Services, challenging an earlier offer by Apollo Global (BBG)

  • Blackstone is considering a potential acquisition of Growatt Technology in a deal that could value the Chinese solar equipment maker at ~$1B (BBG)

  • Music investor Hipgnosis Songs Fund will sell some of its catalogues, including songs by Shakira and rapper Nelly, to a private Blackstone vehicle for $465M (RT)

  • GXO Logistics, the world’s largest pure-play logistics provider, will acquire order fulfillment company PFSweb at a $142M EV (GNW)

  • Disney held exploratory talks about selling its ABC network and TV stations to local broadcaster Nexstar Media Group (BBG)

  • PE firm Vista Equity Partners is preparing to put sports intelligence and data specialist Stats Perform up for sale (BBG)

  • Societe Generale is open to a sale of its Equipment Finance business (RT)

  • US commodities trader Cargill agreed to sell its 25% stake in its Russian KSK grain terminal to local firm Delo Group (RT)

  • Laurentian Bank of Canada ended its strategic review without finding a buyer and will continue as an independent firm (BBG)

VC

  • French battery startup Verkor raised $2.2B- $905M in capital, $639M in loans from the European Central Bank, and $639M in subsidies- to build a gigafactory in Dunkirk (RT)

  • Data analytics and AI software maker Databricks raised a $500M+ Series I at a $43B valuation from T. Rowe Price, Morgan Stanley, Fidelity, and Franklin Templeton (TC)

  • Generate:Biomedicines, a clinical-stage biotherapeutics company, raised a $273M Series C led by Amgen, NVentures (NVIDIA’s venture capital arm), and others (BW)

  • Defense AI startup Helsing raised a $223M Series B led by General Catalyst (TC)

  • Heliene, a Minnesota-based solar PV module manufacturer, raised $170M: $150M in debt from Orion Infrastructure Capital and 2Shores Capital and $20M in equity from OIC and 2Shores Capital (FN)

  • EquipmentShare, a Missouri-based equipment and digital solutions provider for the construction industry, raised a $150M Series E from existing and new investors (FN)

  • Unlock Technologies, a home equity investment technology company, raised $100M in financing led by Texas Capital Bank (FN)

  • Pixis, an AI-powered full-stack marketing platform, raised an $85M Series C1 led by Touring Capital (TC)

  • Embedded finance startup Swan raised a $39.3M Series B led by Lakestar (FN)

  • Parade, a capacity management platform for freight brokers, raised a $17M round led by I Squared Capital (FN)

  • LastMile AI, a platform designed to help software engineers integrate generative AI models into their apps, raised a $10M seed round led by Gradient (TC)

  • Ometria, a customer data and experience platform, received $9.9M from CIBC Innovation Banking (FN)

  • Insurance protection startup Delos Insurance Solutions raised a $7.3M seed round led by IA Capital Group (FN)

  • Sailes, a startup developing AI bots to automate the sales process, raised a $5.1M Series A led by Lewis & Clark Ventures (FN)

  • Databutton, an online app builder, raised a $5.1M seed round led by Skyfall Ventures and Maki.vc (FN)

  • Glass Health, an AI-powered clinical decision support platform, raised a $5M round led by Initialized Capital (FN)

  • Regenerative nature-based services provider ReSeed raised a $4.6M seed round led by One Small Planet (FN)

  • Orbee, a technology service provider for the automotive industry, raised a $4M Series A led by FM Capital (BW)

  • Caravelo, a Barcelona-based travel tech company, raised a $3.7M Series A led by Samaipata (FN)

  • Data and intelligence platform Ontopical raised a $3.3M seed extension round led by Rhino Ventures and Graphite Ventures (FN)

  • Patronus AI, a provider of an automated evaluation and security platform for large language models, raised a $3M seed round led by Lightspeed Venture Partners (FN)

  • Mecho Autotech, a startup offering automotive spare parts, vehicle repairs, and maintenance services, raised a $2.4M pre-Series A from Ventures Platform and Uncovered Fund (TC)

  • Avasa, a New Zealand-based medtech startup, raised $1.6M in funding led by New Zealand Growth Capital Partners, Pacific Channel, Booster Innovation Fund, and more (FN)

IPO / Direct Listings / Issuances / Block Trades

  • Arm Holdings jumped 25% in its debut day of trading, giving the chip designer a $68B fully diluted valuation (BBG)

  • Spanish cosmetics group Puig hired Goldman Sachs and JPMorgan for a possible IPO that could value the owner of the Carolina Herrera and Charlotte Tilbury brands as high as $8.6B (RT)

  • Saudi driller ADES Holding is expected to price its IPO at the top of the range and raise $1.2B (BBG)

  • Chinese battery metals producer CNGR Advanced Material is weighing a potential IPO of its Indonesian assets as soon as the end of 2024, which could raise as much as $500M (BBG)

Debt

  • WE Soda, the world’s largest producer of natural soda ash, is mulling a potential bond sale of up to $750M after scrapping its IPO plans (BBG)

Bankruptcy / Restructuring

  • Canadian cannabis company Canopy Growth will seek bankruptcy protection for its sports nutrition products' segment BioSteel to rein in costs (RT)

  • U.S. Auto Sales, a subprime-focused car dealer, filed for bankruptcy last month as more Americans fall behind on car payments (BBG)

Fundraising

  • Norway-based growth equity firm Verdane Capital Advisors raised $1.2B for Verdane Capital XI (BBG)

  • Galvanize Climate Solutions closed its Innovation + Expansion Fund at $1B to invest in early to growth stage climate tech (AX)

  • Former Elliott Investment Management investor Leo Markel will launch Finch Bay Capital in early 2024 and hopes to raise $500M to take activist positions (RT)

  • SCVC, a UK-based early-stage tech VC, announced the first close of its second fund with a target of up to $100M to invest in pre-seed and seed stage startups (FN)

Crypto Corner

  • Singapore's central bank banned the founders of failed crypto hedge fund Three Arrows Capital from market activity in Singapore for 9 years (RT)

  • A former executive of bankrupt crypto lender Celsius Network pleaded guilty to US criminal charges and will cooperate with prosecutor investigations (RT)

  • Deutsche Bank partnered with Swiss crypto firm Taurus to hold crypto for institutional clients (RT)

Exec’s Picks

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