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Good Morning,

Happy Halloween! Just got back from a two week vacation across Peru and Colombia and ready to crank again for the next two months to close out 2022!

Golden parachutes for fired Twitter execs could reach $122M (unless Elon voids them), ExxonMobil made ~$20B in profits last quarter, pending home sales keep falling, US natural gas prices are down 40% from August, Brazil's leftist former president just got reelected, and GM temporarily suspended advertising on Twitter.

If you're a fund manager or angel investor looking to spin up SPVs in a fast and cost effective manner, check out Vauban.

Let's dive in.

Before The Bell

Markets

• All three major averages ended Friday up 2.5%+ on strong non-tech earnings and optimistic economic data that alluded to slowing inflation and strong consumer spending

• Another important week on the information front, with eurozone's Q3 GDP and October's CPI releasing today, the Fed and BoE's latest interest rate decisions expected on Wednesday and Thursday, and October's unemployment numbers releasing on Friday

Earnings

• ExxonMobil smashed Wall Street estimates and nearly matched Apple's earnings with a record-high $19.6B Q3 profit on uber high natural gas and oil prices; their stock rose 2.7% on Friday (RT)

• What we're watching this week:

  • Tuesday: Uber, Airbnb, AMD

  • Wednesday: Qualcomm, Robinhood, Estee Lauder

  • Thursday: Peloton, Nikola, Coinbase, Starbucks

  • Friday: DraftKings

• Full calendar here

Headline Roundup

• Brazil's leftist former president, Luiz Inacio Lula da Silva, beat conservative incumbent Jair Bolsonaro in the country's closest presidential race in history (WSJ)

• US consumer spending rose 0.6% in September with the PCE up 0.3% (RT)

• Private sector wages rose 5.2% YoY in September (RT)

• Employment cost index rose 1.2% in Q3 compared to 1.6% in Q2 (RT)

• Pending home sales fell 10% in September, down 31% YoY (CNBC)

• Over 40% of US households will owe no federal income tax in 2022, down from 56% in 2021(CNBC)

• Strong US dollar is expected to wipe $10B off US company earnings in Q3 (FT)

• Natural-gas prices have fallen over 40% from late August highs (WSJ)

• Germany's economy grew 0.3% in Q3 but October inflation rose by 11.6% YoY (RT)

• Russian oil and gas exports may never fully recover from Ukraine invasion fallout (AX)

• Russia halted participation in UN-backed grain export deal in retaliatory move (CNBC)

• UAE aims to increase share of clean energy projects to 50% by 2050 (RT)

• Russia's finance ministry cut expectations of taxable oil production for 2023 (RT)

• Swiss National Bank endorsed Credit Suisse's measures to transform their bank and shore up capital (RT)

• GM temporarily suspended advertising on Twitter following Musk's takeover (CNBC)

• Elon Musk fired executives for 'cause,' in an apparent attempt to void severance payouts that could reach $122M (TI)

A Message From Vauban

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Deal Flow

M&A / Investments

• Primary-care provider VillageMD is exploring a potential $5-10B merger with Summit Health (BBG)

• National Bank of Canada and Canadian Imperial Bank of Commerce dropped out as bidders for HSBC's Bank Canada, while Bank of Montreal is still pursuing a deal which could be valued at $7.3B (RT)

• Blackstone is exploring options including a sale of a stake in healthcare software company HealthEdge Software at a potential ~$3B valuation (BBG)

• Suncor Energy agreed to buy Canadian miner Teck Resources' 21.3% stake in the Fort Hills oil sands project for ~$737.2M in cash (RT)

• UK's incoming National Lottery operator Allwyn Entertainment is in talks to buy former operator Camelot's UK operations at a potential $116.1M valuation (RT)

• Activist investor Elliot Management raised its stake in tobacco company Swedish Match to 10%+ (RT)

• Commercial bank Uralsib agreed to buy a portfolio of personal installment loans from Citigroup’s Russia unit (RT)

• QatarEnergy is in talks with TotalEnergies and Eni for a 30% stake in a gas exploration block in waters off Lebanon (BBG)

• US investor group Global Football Holdings agreed to buy just over a 50% stake in Denmark football club Brondby for ~$42M (BBG)

VC

• Kin, a D2C home insurance startup, raised $145M in venture debt led by Runway Growth Capital and Avenue Venture Debt Fund (BW)

• Cruz Foam, a startup creating materials out of chitin that can be used to replace foam and plastic packaging, raised an $18M Series A led by Helena (TC)

• Robotic surgery startup Galen Robotics raised a $15M Series A from Ambix Healthcare Partners (TC)

• Moonshot Commons, a community platform for Gen-Z founders in Web3, raised a $5M seed round led by HashKey Capital, Hash Global, Mask Network, and more (BW)

IPO / Direct Listings / Issuances / Block Trades

• Bayanat, an Abu Dhabi-based provider of geographic data and analytics, will sell 22.22% of its share capital for ~$171M in an IPO today; the firm received ~$15.6B in orders (RT)

Debt

• Banks financing Apollo’s $5.4B purchase of auto parts maker Tenneco aim to start selling a chunk of the junk-rated debt to investors next week (RT)

Bankruptcy / Restructuring

• Bitcoin mining giant Core Scientific may run out of cash by end of year and seek bankruptcy protection (BBG)

Fundraising

• KKR raised ~$6B for its second Asia Pacific infrastructure fund at the first-close, making it the region's biggest ever PE infrastructure fund (RT)

Crypto Corner

• Binance, the crypto exchange that invested $500M into Musk's Twitter buyout, will  advise on and develop blockchain solutions for Twitter (RT)

• Exchange Crypto.com's trading volume is down 91% from one year ago (DC)

• Dogecoin jumped 30%+ last week amid Musk optimism (BBG)

Exec's Picks

• After Musk's Twitter acquisition closed, CNBC published a brief history of Twitter from 2006 to now.

• Derek Thompson's wrote an intriguing piece on how moneyball made baseball boring.

The Hiring Block 💼

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We aim to curate jobs across IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We'll sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're a company looking to hire candidates and want to list a job opening on our board and feature on Exec Sum, click the button below:

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