How to Train Your Traders

Hedge fund talent schools are seeking the perfect trader, Apollo sees no Fed rate cuts this year, Citi is bullish on Europe, Anthropic debuted its 'industry-beating' AI model, and Revolut is selling shares at a $40B valuation.

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Good Morning,

Hedge fund talent schools are seeking the perfect trader, Apollo sees no Fed rate cuts this year, Citi is bullish on Europe, Anthropic debuted its 'industry-beating' AI model, and Revolut is selling shares at a $40B valuation.

Let’s dive in.

Before The Bell

As of 06/20/2024 market close.

Markets

  • US stocks closed lower yesterday as the market rally showed signs of cooling

    • Nasdaq ended its seven-day win streak of record closing highs

    • Money markets are pricing in a 58% chance of a 25 bps rate cut in September

  • Treasuries fell after almost erasing 2024 losses

  • Dollar spot index soared to a YTD high

Earnings

  • Accenture rose ~7% after forecasting annual revenue growth above expectations on surging demand for AI integration services (RT

  • Kroger fell ~3% despite beating Q1 estimates after forecasting a Q2 earnings decline due to pressure in its pharmacies and increase in promotions (BBG)

  • What we're watching this week:  

    • Today: CarMax

  • Full calendar here

Headline Roundup

  • Hedge fund talent schools are looking for the perfect trader (YH)

  • US labor market, housing data point to slowing economy (RT)

  • BoE held rates steady but readies to cut soon (WSJ)

  • Citi bets on Europe despite political uncertainty (RT)

  • Sycamore CEO says persistent high rates are boosting public markets (BBG)

  • Apollo's chief economist expects no rate cuts this year (RT)

  • Investors say Labour could borrow more without UK bond market backlash (FT)

  • Anthropic debuted its latest 'industry-beating' AI model (TC)

  • Deutsche's private bank cuts consultant spending by 70% (FT)

  • US big banks face growing spillover risks from non-banks (RT)

  • US finds no dollar manipulation in 2023, but adds Japan to monitoring list (RT)

  • Green bond issuance surges as investors hunt for yield (FT)

  • Taiwan's central bank warns of systemic risks of rapid ETF growth (FT)

  • SEC urged UK to pick date for stock market shake up (RT)

  • SCOTUS held up tax on Americans' foreign earnings (RT)

  • KPMG will cut another 200 UK jobs amid slowdown (FT)

  • PayPal named Walmart exec Venkatesan as new CTO (RT)

  • Booking's CEO slammed EU over 'dumb' regulations (FT)

  • Birth rates in rich countries halved to hit a record low (FT)

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Deal Flow

M&A / Investments

  • US casino operator Boyd Gaming expressed takeover interest in peer Penn Entertainment, which has a ~$9B market value, including debt (RT

  • UAE renewable energy company Masdar will acquire an initial 67% stake in Greece's Terna Energy at a ~$2.6B equity value and intends to buy the rest (RT

  • Honeywell will acquire aerospace and defense technology firm CAES Systems for $1.9B from Advent International in an all-cash deal (BBG

  • UK food supplier Tate & Lyle agreed to acquire US-based CP Kelco in a $1.8B deal (RT

  • BP agreed to buy out grain trader Bunge's 50% stake in Brazilian sugar and ethanol JV BP Bunge Bioenergia for $1.4B (RT

  • PE firm Apax Partners is considering a sale of Italian IT services firm Lutech for ~$1.1B (RT

  • Carlyle agreed to acquire Energean's assets in Egypt, Italy and Croatia for up to $945M to form a new Mediterranean-focused O&G venture (RT

  • State-owned power company China Three Gorges is considering a bid for Brookfield-owned Spanish clean-energy producer Saeta Yield (BBG)  

  • European fintech giant Revolut is seeking to sell $500M worth of existing shares at an up to $40B valuation (BBG

  • UK supermarket giant Sainsbury's agreed to pay UK financial services company NatWest $159M to offload its banking business (BBG

  • AB CarVal Investors and Caius Capital, two top investors in Bank of Cyprus, are exploring a sale of their combined 15% stake in the bank (BBG

  • Everton FC entered exclusive sale talks with US-based Friedkin Group (FT)

VC

  • Huntress, a startup specializing in cybersecurity for SMEs, raised a $150M Series D led by Kleiner Perkins, Meritech Capital, and Sapphire Ventures (FN)

  • EOS-X Space, a Spanish space exploration company, raised a $123M Series D led by FTI Capital Advisors (PRN)

  • Daydream, an AI-powered search engine for e-commerce, raised a $50M seed round led by Forerunner Ventures and Index Ventures (TC)

  • Virtual care startup Pomelo Care raised a $46M Series B led by First Round Capital and a16z (PRN)

  • GrayMatter Robotics, a startup focused on warehouse and logistics, raised a $45M Series B led by Wellington Management (TC)

  • Ronovo Surgical, a Chinese medtech innovator, raised a $44M Series B led by Guolian Capital and INCE Capital (FN)

  • Post-quantum cryptography startup PQShield raised a $37M Series B led by Addition (TC)

  • Kinetic, an automotive infrastructure company, raised a $21M Series B led by Menlo Ventures (BW)

  • Gynger, a startup lending capital to firms for technology purchases, raised a $20M Series A led by PayPal Ventures (TC)

  • DeepJudge, an AI-driven legal search startup, raised a $10.7M seed round led by Coatue (FN)

  • Data center-as-a-service startup ECL raised a $10M round led by Hyperwise Ventures (BW)

  • Avaneidi, an Italian startup specializing in security enterprise storage systems, raised an $8.7M Series A from United Ventures (FN)

  • Substrate Labs, an AI infrastructure startup, raised an $8M seed round led by Lightspeed Venture Partners (BW)

  • EM payroll services provider for global hiring platforms Cadana raised a $7M seed round led by Costanoa Ventures (TC)

  • Materia, a startup using AI to make accountants more efficient, raised a $6.3M round led by Spark Capital (TC)

  • Scottish legal tech startup Wordsmith raised a $5M seed round led by Index Ventures (TC)

  • Butterflies AI, a social media platform for humans and AIs to coexist, raised a $4.8M seed round led by Coatue (FN)

  • Aikido Technologies, a floating wind startup, raised a $4M seed round led by Azolla Ventures (BW)

IPO / Direct Listings / Issuances / Block Trades

  • Australia-based Mexican fast-food chain Guzman y Gomez jumped 36% in its trading debut after its upsized $223M Sydney IPO (BBG

  • Investing app Acorns is eyeing an IPO within the next few years (BBG)

SPAC

  • Green energy company United Hydrogen Group will merge with Aimei Health Technology Co. at a $1.6B valuation (RT

Debt

  • Carlyle and KKR emerged among final bidders for US credit card issuer Discover Financial's $10B US student loan portfolio (FT

  • The owners of AirTrunk, an Australian data center operator, lined up $4.6B of financing from four banks to help fund potential bids for the company (BBG

  • KKR is nearing a deal to acquire ~$2B of loans from Orange Bank, a unit of French telecom Orange (BBG)

  • Brazil sold $2B in sustainable eurobonds (BBG)

  • Private credit firm Castlelake will acquire up to $1.2B in consumer installment loans from fintech Upstart (RT

  • Indian conglomerate Hinduja is planning to raise $873M via two rupee bond offerings to partly fund its acquisition of financial services firm Reliance Capital (BBG

  • Car rental firm Hertz is seeking to raise $750M in a two-part junk bond offering (BBG

  • Indian miner Vedanta will raise up to $120M via non-convertible debentures in a private placement (RT

Bankruptcy / Restructuring

  • Invesco lost a bid to regain control of bankrupt electronics component manufacturer Robertshaw (BBG

Fundraising

  • Investment firm Aquarian Holdings raised ~$1.5B from SWF Mubadala Capital and other investors to deploy capital in private credit, insurance, real estate, and others (BBG)

  • Charlesbank Capital Partners closed its second technology fund at $1.3B (WSJ

Crypto Corner

  • Stablecoin issuers are now the 18th largest holder of US debt (CD

  • Montenegro's PM invested in Terraform Labs before its collapse, explaining Do Kwon's escape to Montenegro (BBG

  • Michael Saylor's Microstrategy acquired $786M worth of more Bitcoin (CD

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