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Musk's Grok AI chatbot went full Hitler, a16z left Delaware and advised startups to follow, Nvidia hit a $4T market cap, TikTok is prepping a US app with its own algorithm, a global regulator said hedge funds should face limits on leverage, and Goldman Sachs is demanding loyalty oaths from analysts in an effort to curb early PE recruiting.

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Let's dive in.

Before The Bell

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Markets

• US stocks rose yesterday as traders monitored developments in trade talks

  • Nasdaq hit a fresh ATH

• Asia's rice benchmark hit an eight-year low

• Bitcoin rose to an ATH

Earnings

• What we're watching this week:  

  • Today: Delta, Levi's

• Full calendar here 

Prediction Markets

• Linda Yaccarino stepped down as Twitter / X CEO on a day where Grok turned into Hitler.

• Trade your predictions on a range of events, only on Kalshi. Sign up with code LIT and get a $20 bonus when you trade $100.

Headline Roundup

• Trump said Fed rates are 'at least 3 points too high' (RT)

• Goldman Sachs demands loyalty oaths in effort to curb PE poaching (BBG)

• Citi employee accused of making racist comment during interview sued for discrimination (BBG)

• Jefferies wealth adviser banned after shady business dealings (BBG)

• Fed officials are split over impact of tariffs on inflation (BBG)

• a16z left Delaware for Nevada and told startups to follow (BBG)

• PE-backed US IPOs return with plenty of leverage (BBG)

• Merger-arbitrage investors with billions await next wave of mega-deals (BBG)

• Global regulator says hedge funds should face limits on leverage (RT)

• Global banks predicted to get 10% trading revenue boost on tariff turmoil (RT)

• Munis are set to recover after H1 in five years (BBG)

• Tariff volatility drives investors to actively managed funds (RT)

• First leveraged CLO ETF is testing retail investors' appetite for risk (BBG)

• BlackRock’s 'T-bill-and-chill' ETF eclipsed long-bond trading (BBG)

• Lavazza chair blamed hedge funds for coffee price surge (FT)

• BoE governor opposed UK plan to mandate pension investment in PE (FT)

• UBS continues to see opportunity in US (RT)

• Nvidia becomes first company to hit a $4T market cap (CNBC)

• TikTok prepares US app with its own algorithm and user data (RT)

• OpenAI will release a web browser to challenge Google Chrome (RT)

• Perplexity launched an AI-powered browser to take on Google Chrome (RT)

• X CEO Linda Yaccarino stepped down after Grok went full Hitler (BBG)

• Microsoft touted $500M in AI savings after laying off 15k employees (BBG)

• T-Mobile rolled back DEI policies (BBG)

• ASML scrapped DEI in US (RT)

• Hedge fund legend Bill Ackman fell short in quest for pro tennis win (BBG)

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Deal Flow

M&A / Investments

• Engineering software provider Autodesk is considering a takeover of $25B-listed rival PTC

• Bidders including Asian PE firms Centurium Capital and Hillhouse Investment are vying to acquire a stake in Starbucks' China unit at a $10B valuation

• Pharma giant Merck agreed to acquire respiratory drugmaker Verona Pharma in a ~$10B all-cash deal at a 23% premium

• OpenAI completed its $6.5B all-stock acquisition of AI device startup io Products, co-founded by ex-Apple design chief Jony Ive

• PE firms including Blackstone, Permira, Carlyle, and EQT are weighing bids for Luxembourg-based fund services firm IQ-EQ, which could be valued at ~$5.9B

• Italian candy maker Ferrero is nearing a $3B deal to acquire WK Kellogg, the cereal business spun off from Kellogg

• Aquiline Capital Partners is seeking to sell personal finance software firm Quicken at an over $1.5B valuation

• Hong Kong developer New World Development is seeking to divest their K11 tower, potentially fetching ~$400M

• Saudi delivery platform Jahez will acquire a 75% stake in Qatari e-commerce platform Snoonu for $225M

• Australia's Macquarie is weighing a sale of its 50% stake in petrochemical company Advarios Singapore Chemical for several hundred million dollars

• Netherland-based O&G company Catom agreed to acquire BP’s 300 fuel-retail sites and 15 EV charging hubs in the Netherlands

• Luxury jacket maker Canada Goose's controlling shareholder Bain Capital is considering a stake sale

VC

• UK fintech giant Revolut is in talks to raise $1B at a $65B valuation led by Greenoaks

• Kardium, a developer of the Globe Pulsed Field System for atrial fibrillation, raised a $250M round led by Janus Henderson and QIA

• XPANCEO, a Dubai-based deep tech developing the world's first multifunctional smart contact lens, raised a $250M Series A at a $1.35B valuation led by Opportunity Venture

• Also, a micro-mobility startup spun out of EV maker Rivian, raised a $200M round at a $1B valuation led by Greenoaks

• Wefox, a German digital insurance platform, raised an $177M Series D

• ServiceUp, an all-in-one tech platform to manage vehicle repairs, raised a $55M Series B from PeakSpan Capital, Litquidity Ventures, and others

• Moment, a fintech modernizing fixed income trading ops, raised a $36M round from Index Ventures and a16z 

• On-demand mobility insurance startup INSHUR raised $35M from Trinity Capital

• Wrisk, a UK embedded insurtech platform, raised a $16.3M Series B led by Mundi Ventures and Opera Tech Ventures

• Insomnia Labs, a startup building a blockchain-backed financing platform for digital creators, raised $12M in debt financing from Kamui Finance, Intrinsic Capital, and others

• Synfini, an AI-driven chemistry automation platform, raised $8.9M in funding led by JSL Health Capital

• Castellum.AI, a compliance tech startup, raised an $8.5M Series A led by Curql

• Novenda Technologies, a dental 3D printer manufacturer, raised a $6.1M Series A led by Brightlands Venture Partners

• ALTR, a startup developing alcohol removal technology, raised a $5M seed round led by Demeter

IPO / Direct Listings / Issuances / Block Trades

• Indian telecoms and digital giant Reliance Jio delayed its planned IPO beyond this year; the entity is valued at over $100B

• India's second-largest mutual fund manager ICICI Prudential Asset Management filed for a $1.2B India IPO

• Blackstone-backed Spanish casino operator Cirsa Enterprises raised $470M at a $2.9B valuation in its Spain IPO

• Chandra Daya Investasi, the infrastructure unit of Indonesian petrochemical giant Chandra Asri Pacific, surged 35% in its trading debut after raising $146M in its Indonesia IPO that was 560 times oversubscribed

Debt

• Romania raised $5.6B in a dollar and euro-denominated bond sale

• Banks including JPMorgan and UBS begun early pricing talks with investors for a $4.25B debt package to help finance Sycamore Partners' LBO of UK pharmacy Boots, part of their $10B LBO of the broader Walgreens Boots Alliance

• JPMorgan is leading a $2.4B debt financing package for KKR’s $5.2B LBO of UK testing equipment maker Spectris

• Nissan raised $1.4B in a convertible bonds sale

• Brightline Trains Florida is planning a $400M junk-rated tax-exempt bond sale to fund capital projects

• Two units of Indian conglomerate Adani Group are in advanced talks with Japanese bank MUFG to raise ~$250M through separate bilateral offshore loans

• Adani's IndianOil-Adani Gas JV plans to raise $160M in a convertible bond sale

• Japanese telecom giant NTT launched a dual-currency bond sale in dollars and euros to refinance bridge loans used to take its data-center business private

Bankruptcy / Restructuring / Distressed

• Shareholders of collapsed private markets investment platform Linqto vowed to oppose the firm's recent Chapter 11 filing, after new management placed it under court protection, alleging former execs of fraud

• Budget jewelry retailer Claire's is considering a bankruptcy for its US operations while also exploring a restructuring, part of full sale

• UK maternity wear group Seraphine collapsed into administration, two years after its management-led take-private at a 90% discount

Fundraising / Secondaries

• PE firm Permira plans to raise $12B for its latest flagship buyout fund in its first major fundraise under new co-CEOs

• Levine Leichtman Capital Partners raised $3.6B for its seventh PE fund

• European PE firm Exponent raised over $1.2B for its latest flagship fund targeting mid-market investments

• Manulife Investment Management raised $1.1B for its third and largest co-investment fund to date

• The Hong Kong Jockey Club is set to divest up to $1B from funds managed by Blackstone, Warburg Pincus, CD&R, and TA Associates amid trade tensions

• Boldstart Ventures closed its seventh fund at $250M to back startups from inception

• Enterprise infrastructure investor Heavybit raised over $180M across its fifth flagship pre-seed and seed fund, and its second opportunity vehicle

Crypto Sum Snapshot

• NFT volume sank 45% in Q2

• SEC's 'crypto mom' says tokenized securities are still securities

• Feds charged two in $650M global crypto scam that promised 300% returns

• Crypto firms are fast-tracking public listings via SPAC deals

• Check out our Crypto Sum newsletter for the full stories on everything crypto!

Exec’s Picks

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• After losing an iconic bet versus Warren Buffet on hedge funds vs the S&P 500, Capital Allocators founder Ted Seides proposed a fresh (and well-suited to current market dynamics) bet: PE buyouts vs the S&P 500. Read his proposal and thoughts here.

• On the topic of PE, Dan Primack explains the tail-risk of PE, much to do with the dynamic mentioned above: high rates, slowing exits and opportunities in secondaries.

Financial Services Recruiting 💼

If you're a junior banker looking for your next career move, check out Litney Partners, a recruiting firm established by Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates across private equity, hedge funds, venture capital, growth equity, credit, and investment banking.

We're currently seeking talent for some incredible roles. Head over to Litney Partners to drop your resume / create your profile and we'd love to get in touch!

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*DISCLAIMER: Investment advice provided by Autopilot Advisers, LLC ("Autopilot"), an SEC-registered investment adviser. Past performance does not guarantee future results. Investing carries risks, including loss of principal. As always, be smart out there. Litquidity is compensated to promote AutoPilot. Compensation details available upon request.