Goldman Back On Top

Hedge funds are piling into Mexican peso, Tokyo real estate is luring activist funds, Tesla is laying off 10% of its workforce, US retail sales came in hotter than expected, and Goldman crushed earnings estimates on recovering IB.

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Hedge funds are piling into Mexican peso, Tokyo real estate is luring activist funds, Tesla is laying off 10% of its workforce, US retail sales came in hotter than expected, and Goldman crushed earnings estimates on recovering IB.

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Let’s dive in.

Before The Bell

As of 04/15/2024 market close.

Markets

  • US stocks continued their fall yesterday on rising yields and concerns over the Middle East conflict 

    • The S&P's 2.6% two-day drop is the biggest in over a year

  • US 10Y yields touched YTD highs 

  • Gold prices rose ~1.7% toward fresh records

  • Aluminum and nickel rose 2.7% and 1.9% respectively as US and UK banned trading in Russia-originated metals

  • Mexican peso continued to rally to a nine-year high vs the dollar

  • Yen fell below ¥154 vs the dollar for the first time since 1990

    • Dollar index is up 4.6% YTD

Earnings

  • Goldman Sachs beat Q1 top and bottom line estimates on a 28% YoY profit increase boosted by a rebound in IB and trading activity (CNBC

  • Charles Schwab beat Q1 top and bottom line estimates driven by a jump in asset management fees and client assets rising to a record high (RT

  • What we're watching this week:  

    • Today: Bank of America, Morgan Stanley, J&J, UnitedHealth Group, United Airlines

    • Wednesday: ASML

    • Thursday: TSMC, Netflix, Blackstone

    • Friday: American Express, P&G

  • Full calendar here

Headline Roundup

  • US retail sales data came in way strong than expected (FT)

  • Element Capital Management will return ~$4B to external clients (BBG)

  • Institutional investors pull $2B from emerging markets investor Ashmore (FT)

  • Tokyo real estate is luring activist hedge funds (BBG)

  • US job seekers are demanding a record $81k to accept new job (BBG)

  • $400B debt costs mean climate spending could make emerging nations insolvent (RT)

  • Hedge funds pile into Mexican peso, fueling world’s best rally (BBG)

  • Trend-following hedge funds could sell up to $42B in US equities over next month (RT)

  • Growing lawsuits allege rent-fixing driven by algorithms (WSJ)

  • US will to file an antitrust suit against Ticketmaster-parent Live Nation (WSJ)

  • Fed's reverse repo facility plummets to lowest level in three years (RT)

  • Tesla will lay off over 10% of global workforce (CNBC)

  • H&R Block hit by outage on Tax Day (WSJ)

  • Citigroup's wealth CIO David Bailin will leave after 15 years (BBG)

  • GM will its HQ to a new Detroit tower (BBG)

  • LA warehouse vacancies climb to highest in a decade (BBG)

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Deal Flow

M&A / Investments

  • Italian cables maker Prysmian agreed to buy Encore Wire for ~$4.15B, including debt (BBG

  • Clearlake Capital Group made a sweetened bid to acquire cloud computing provider Blackbaud for $4.1B (BBG

  • PE firm Apax Partners will acquire Zellis Group from Bain Capital in a deal that values the UK payroll software company at ~$1.6B (BBG

  • Italian energy group Eni aims to sell minority stakes in its biofuel and bio-plastic units that could fetch $1.4B to speed up its energy transition (RT

  • Home safety and security solutions provider Resideo Technologies agreed to acquire security solutions company Snap One in a $1.4B deal, including debt (RT

  • Regional bank Wintrust Financial will acquire Michigan bank Macatawa Bank in a $510M all-stock deal (GNW

  • US-based Group 1 Automotive will acquire UK automotive distributor Inchcape’s British dealerships for $431M in cash (FT

  • Blackstone is again exploring a sale of Motel 6-owner G6 Hospitality (BBG)

  • Global Infrastructure Partners shelved plans to buy up to 49% of Malaysia’s biggest port operator MMC Port Holdings from a local tycoon due to price disagreements (BBG

  • Swiss PE firm Partners Group will acquire a minority stake in hotel company Trinity Investments (BBG)

VC

  • EVM-compatible layer 1 blockchain Berachain raised a $100M Series B led by Brevan Howard Digital and Framework Ventures (FN)

  • GridBeyond, a developer of AI-powered systems to help businesses and grid operators balance electricity supply and demand, raised a $55M Series C led by Alantra Partners (AX)

  • Indian social media startup ShareChat raised a $49M convertible note at a ~$2B valuation from Lightspeed, Temasek, and others (TC)

  • Commercial building automation startup Kode Labs raised a $30M Series B led by Maverix Private Equity (TC)

  • Ecotrak, a facility management platform, raised a $30M round led by Respida Capital (PRN)

  • Pula, a Kenyan insurtech providing agricultural insurance to small-holder farmers, raised a $20M Series B led by BlueOrchard (TC)

  • Dot Compliance, a provider of AI-enabled quality management system solutions, raised a $17.5M Series B led by IGP Capital and Vertex Ventures (FN)

  • UK-based legal tech startup Lawhive raised an $11.9M seed round led by GV (TC)

  • Avalon, an indie game studio, raised a $10M round led by Bitkraft Ventures and Hashed (FN)

  • RAAAM Memory Technologies, a startup building cost effective on-chip memory solutions, raised a $4M seed round from Serpentine Ventures, J-Ventures, and more (BW)

  • Provenance Chain Network, a startup providing permissioned access to product knowledge, manufacturers, suppliers, and regulators, raised a $4M Series A (FN)

  • OpenTrade, an institutional crypto lending platform, raised a $3.2M seed round from a16z CSX, CMCC Global, and more (FN)

  • Bumper International, a BNPL startup for car repairs and services, raised a $2.6M Series B extension led by Suzuki Global Ventures and Marubeni Ventures (FN)

  • Zoth, a Singapore-based stablecoin and yield company, raised $2.5M in funding led by Blockchain Founders Fund (FN)

  • Kamereo, a Vietnamese B2B food sourcing platform, raised a $2.1M round led by Reazon Holdings and Thoru Yamamoto (FN)

IPO / Direct Listings / Issuances / Block Trades

  • CVC Capital Partners is seeking to raise at least $1.3B in an Amsterdam IPO (BBG

  • Spanish state investment firm Sepi increased its stake in Telefonica to 5%, or $1.2B (BBG)

  • Rubrik, a cloud and data security startup backed by Microsoft, is seeking to raise as much as $713M in its US IPO (BBG

  • Financial services platform Marex Group is seeking to raise up to $323M in a US IPO (BBG

  • Japan’s biggest utility Jera is considering an IPO to fund its renewables push (BBG

  • Spanish fashion retailer Tendam plans to launch an IPO by February 2025 (RT)

Debt

  • Struggling Chinese state-backed developer Vanke is preparing an ~$18B collateral package as it seeks new bank loans (BBG

  • JPMorgan raised $9B through a four-part bond issuance (BBG

  • Wells Fargo raised $4.25B in new debt (BBG

  • Florida’s high-speed rail system Brightline kicked off its $1.3B junk debt sale (BBG

  • Vietnamese conglomerate Vingroup received approval from bondholders to roll over half of its $625M exchangeable bonds by eighteen months (BBG

  • Indian miner Vedanta is seeking to raise $300M through rupee-denominated bonds (BBG

Bankruptcy / Restructuring

  • An investment group led by Sarah Riggs Amico, the executive chair of specialized auto carrier Jack Cooper Transport, dropped its long-shot bid to resurrect bankrupt trucker Yellow (WSJ)

Fundraising

  • Macquarie is seeking to raise over $1.5B for its Macquarie Specialised Infrastructure Global Debt Fund (BBG

  • PE firm Citation Capital is seeking to raise ~$850M for its debut buyout fund (BBG

  • Early stage VC Alleycorp raised $250M for its latest fund (FN)

Crypto Corner

  • Hong Kong approved Bitcoin and Ether ETFs (CD)

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