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Markets took a hit on weak economic data, Bill Gross said to avoid tech, S&P cut Boeing's outlook to negative, US white-collar job growth has stalled, PwC named a new UK senior partner, and US birth rates fell to its lowest ever.

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Let’s dive in.

Before The Bell

Markets

• US stocks fell yesterday after latest GDP data pointed towards a slowdown in growth and persistent inflation

• US yields hit their highest in five-months, with the 2Y touching 5%

Earnings

• Lazard beat Q1 profit estimates buoyed by strength in North America deal making across healthcare, industrials, tech and financial institutions (RT)

• Alphabet shares jumped ~12% after beating Q1 earnings and revenue estimates on soaring profits in its cloud division; it also announced its first-ever dividend (CNBC) 

• Microsoft shares rose ~4% after reporting better-than-expected Q3 earnings on the back of AI-driven cloud growth, although its Q4 revenue forecast was below expectations (CNBC)  

• Intel shares fall ~8% after missing on sales estimates and providing a weak Q2 forecast, which overshadowed its Q1 earnings beat (CNBC)

• Snap Inc. shares soared ~25% on a surprise adjusted profit and better-than-expected revenue demonstrating a return to double-digit revenue growth (CNBC) 

• American Airlines posted a Q1 loss but topped estimates for Q2 forecast and reiterated FY earnings guidance (CNBC)

• Newmont surged ~12% after beating Q1 profit estimates as the gold mining giant benefited from robust production and higher prices (RT)

• Caterpillar shares slumped ~7% after reporting Q1 results that showed a YoY slowdown in machinery sales that are expected to continue into Q2 (CNBC) 

• What we're watching this week:  

  • Today: ExxonMobil, Chevron, Abbvie

• Full calendar here

Headline Roundup

• US GDP growth slowed to 1.6% (CNBC)

• Record $8.8B pulled from US sustainable funds in Q1 (RT)

• Flows to European ESG ETFs halved in Q1 (FT)

• US white-collar job growth stalls, even in Covid boomtowns (BBG)

• Bill Gross says stick to value stocks, avoid tech as US yields soar (BBG)

• PwC picked Marco Amitrano as next UK senior partner (FT)

• S&P cut Boeing’s ratings outlook to negative (WSJ)

• Japan feels inflation heat from Fed’s ‘higher for longer’ shift (FT)

• PIMCO expects BOJ to raise rates higher than markets expect (BBG)

• Indonesia raised rates to support sliding rupiah (FT)

• FDIC pauses plans to scrutinize big investors in banks (FT)

• CFPB raises alarm over credit card megadeals (FT)

• Room & Board to grant ESOPs to all workers (WSJ)

• Cboe to merge digital assets unit with derivatives and clearing arm (RT)

• Rob Walton will retire from Walmart's board (RT)

• FCC restored net neutrality (RT)

• Argentina to offer new debt instruments to allow companies to send dividends abroad (BBG)

• US fertility rate is at its lowest ever recorded (WSJ)

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Deal Flow

M&A / Investments

• Miner Anglo American does not find miner BHP's $39B takeover offer attractive (RT)

• Cleveland-Cliffs is still interested in buying United States Steel if US authorities block Nippon Steel's $14.1B takeover of the American steelmaker (BBG) 

• A small stake in San Francisco Giants is for sale at a price that would value the MLB team at ~$4B (BBG) 

• PE firm GTCR agreed to take wealth management company AssetMark Financial private in a ~$2.7B deal (WSJ) 

• KKR will acquire a student housing portfolio from Blackstone REIT for $1.64B (BBG)

• VinFast-founder Pham Nhat Vuong pledged to invest another $1B+ of personal wealth into VinFast for expansion (BBG) 

• PE firm Falfurrias Capital Partners is exploring a sale of Sauer Brands that could value the condiments maker at over $1B, including debt (RT) 

• T-Mobile US is expected to invest $950M for a 50% stake in a JV with Swedish investment firm EQT to buy fiber optic network provider Lumos (RT) 

• Deutsche Lufthansa is expected to submit a fresh round of concessions to EU regulators over its planned $348M investment in Italian carrier ITA Airways (BBG) 

• Hawaii's leading electricity supplier Hawaiian Electric Industries is exploring options including a sale of American Savings Bank (BBG) 

• Red Lobster seeks a buyer as it looks to avoid bankruptcy filing (CNBC)

• ByteDance prefers shutting down TikTok over a sale if legal options fail (RT) 

VC

• Musk’s AI startup X.AI is nearing a deal to raise a $6B round at an $18B valuation with participation from Sequoia Capital and others (BBG) 

• Cognition Labs, a pre-revenue AI coding startup, raised a $175M round at a $2B valuation led by Founders Fund (TI)

• Financial services infrastructure provider QI Tech raised an extension to its previous $200M Series B to at a $1B valuation led by General Atlantic (BW)

• AI compute company FlexAI raised a $30M seed round led by Alpha Intelligence Capital, Elaia Partners, and Heartcore Capital (FN)

• Dropzone AI, a developer of AI security analysts, raised a $16.9M Series A led by Theory Ventures (BW)

• Subscription management platform RevenueCat raised a $12M Series C led by Adjacent (TC)

• Treefera, an AI-enabled data management platform, raised a $12M Series A led by AlbionVC (FN)

• Carv, a data layer platform that lets web3 gamers and AI companies control and monetize their data, raised a $10M Series A led by Tribe Capital and IOSG Ventures (TC)

• Chilean instant payments API startup Fintoc raised a $7M Series A led by Propel (TC)

• Radical, a high-altitude solar-powered aircraft maker, raised a $4.5M seed round led by Scout Ventures (FN)

• Roclub, a teleoperation platform for the global healthcare landscape, raised a $4.3M seed round led by Speedinvest and FJ Labs (FN)

• Edonia, a startup creating protein ingredients from microalgae, raised a $2.1M round led by Asterion Ventures (TC)

• Moso, a shop-to-earn platform that blends online shopping with cryptocurrency, raised a $2M seed round from Symbolic Capital, Polygon Ventures, and more (PRN)

• Anichess, a progressive chess-based online strategy game, raised $1.8M in funding led by Sfermion and Amber Group (FN)

IPO / Direct Listings / Issuances / Block Trades

• CVC Capital Partners upsized its Amsterdam IPO by $536M to ~$2.5B and is likely to price the share sale at the middle of a marketed range (BBG) 

• AirAsia announced a $1.4B deal to create a new, listed entity that will combine its airline units to simplify operations (BBG) 

• Vista Equity Partners-backed automotive data and software services provider Solera is weighing an IPO that may raise over $1B (BBG) 

• Microsoft-backed cybersecurity firm Rubrik is raising $736M at a $6.6B valuation in its IPO priced above a marketed range (BBG) 

• Aerospace and defense parts manufacturer Loar Holdings’ shares climbed 74% in its trading debut after its $308M IPO (BBG) 

• Chinese edtech platform Zuoyebang confidentially filed for a US IPO (BBG) 

• Vietnam’s Masan Group is mulling an IPO of its unit Masan Consumer Holdings to fuel expansion (BBG) 

Debt

• Copper miner Antofagasta is mulling its first dollar bond sale in nearly two years (BBG)

• Quincy, MA issues first blockchain-based bond deal in US (BB)

Bankruptcy / Restructuring / Distressed

• A lender group to AMC Entertainment Holdings proposed pushing back near-term debt maturities; AMC has ~$3B of debt maturing in 2026 (BBG) 

• Craft retailer Joann received US bankruptcy court approval for a restructuring that will eliminate $505M of debt and keep all its retail locations open (RT) 

• Laboratory service provider Labcorp will acquire Softbank-backed biotech Invitae’s assets auctioned through its bankruptcy protection process for $239M (RT) 

• Creditors to Adler Group agreed to take control of the embattled landlord through a debt overhaul (BBG) 

Fundraising

• Investment consultant and asset manager Mercer closed its Mercer Private Investment Partners VII at $3.9B to invest across private markets (WSJ) 

• Norwest Venture Partners raised $3B for its 17th fund, defying the market downturn (TC) 

• BlackRock and Singapore’s Temasek raised $1.4B for their JV Decarbonization Partners Fund I (WSJ) 

• Crypto-focused Pantera Capital is seeking to raise over $1B for its Pantera Fund V (BBG)

Crypto Corner

• Sam Altman-founded Worldcoin is eyeing a partnership with OpenAI (BBG)  

• Stripe brings back crypto payments (BBG)

• Daily inflows into BlackRock’s Bitcoin ETF dropped to effectively zero, ending its inflow boom (BBG) 

Exec’s Picks

• WSJ explained why protester demands for colleges to divest from Israel are not being met.

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