Jamie Dimon Had a Date

The Fed took a massive L last year, a BoE policymaker thinks markets are overhyping rate cuts, banks are buying bonds at record pace, EY dropped its appeal against sanctions, Latino entrepreneurship is soaring, and Jamie Dimon had a private lunch with the VP.

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Litquidity Capital
March 27, 2024

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Good Morning,

The Fed took a massive L last year, a BoE policymaker thinks markets are overhyping rate cuts, banks are buying bonds at record pace, EY dropped its appeal against sanctions, Latino entrepreneurship is soaring, and Jamie Dimon had a private lunch with the VP.

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Before The Bell

As of 03/26/2024 market close.

Markets

  • US stocks fell yesterday as the market rally cooled further

    • The S&P and Dow fell for a third consecutive session 

  • Reddit shares are now up 92% since last week’s IPO 

  • Cocoa futures temporarily crossed $10k

Earnings

  • Gamestop shares plunged ~15% after reporting weaker-than-expected Q4 earnings and revenue driven by a fall in software sales (BRRN) 

  • What we're watching this week:  

    • Today: Cintas, Jefferies, MillerKnoll

    • Thursday: Walgreens Boots Alliance 

  • Full calendar here

Headline Roundup

  • The Fed posted a record ~$114B loss in 2023 (RT)

  • Jamie Dimon had lunch with Kamala Harris (FT)

  • Commercial banks buy Treasuries at fastest pace since Covid (YH)

  • BoE's Mann says markets are pricing in too many rate cuts (RT)

  • Treasury yields continue to rise despite rate cut expectations (WSJ)

  • PIMCO favors UK gilts over US Treasuries amid inflationary pressure (FT)

  • BlackRock CEO warns retirement crisis looms for aging population (FT)

  • US faces Liz Truss-style market shock as debt soars, warns CBO (FT)

  • Trump Media is now the most expensive stock to short (BBG)

  • Trump's stake in Trump Media is now worth $4.6B (FT)

  • Retail investors host meme stock party amid high rates (BBG)

  • EY dropped its appeal against German sanctions (FT)

  • Visa, Mastercard agreed to $30B settlement over US transaction fees (FT)

  • Moody's placed Boeing on review for downgrade (RT)

  • Boeing’s largest union is seeking a board seat (FT)

  • Advisory firm ISS tells Disney shareholders to side with activist Nelson Peltz in proxy fight (CNBC)

  • Dell has now slashed ~6k jobs as part of broad cost cuts (RT)

  • US will investigate credit card rewards and BNPL companies (RT)

  • Apple will unveil AI strategy in June (BBG)

  • Latino entrepreneurship in US is rising at rapid pace (WSJ)

  • China sued US over EV-subsidies, citing unfair competition (WSJ)

  • Saudi Arabia will build world’s first ‘Dragon Ball’ theme park (WSJ)

  • Key Baltimore bridge collapsed after being hit by cargo ship, six presumed dead (WSJ)

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Deal Flow

M&A / Investments

  • Johnson & Johnson is in talks to acquire medical device maker Shockwave Medical, which has an ~$11.9B market cap (WSJ) 

  • US-listed International Paper offered to acquire UK paper and packaging firm DS Smith in a $7.2B all-stock deal (RT) 

  • Alibaba Group is offering to buy the 36% of logistics business Cainiao it does not already own for up to $3.8B, abandoning plans for an IPO (RT) 

  • Avetta attracted takeover interest from PE firms including EQT, Warburg Pincus, and Bain Capital; the compliance software provider could be valued at over $3B in a sale (BBG) 

  • US oil refiner Phillips 66 is exploring the sale of its 25% stake in the Rockies Express Pipeline that it hopes could be worth over $1B, including debt (RT) 

  • Italy sold ~12.5% of Banca Monte dei Paschi di Siena for ~$704M as part of plans to divest from the bailed-out lender (BBG) 

  • German mass media company Axel Springer is exploring a sale of popular German finance site and trading platform finanzen.net, which could be valued at ~$271M in a deal (RT) 

  • German nationalized energy company SEFE will take full ownership of gas transmission network WIGA by buying JV partner Wintershall Dea’s 50.2% stake (RT) 

VC

  • Cybersecurity startup Cyera raised a $300M round at a $1.5B valuation led by Coatue (TC)

  • Uzbekistan e-commerce startup Uzum raised a $100M Series A at a $1.16B valuation led by FinSight Ventures (TC)

  • Plant-based protein brand ALOHA raised a $68M round from SEMCAP Food & Nutrition (VC)

  • Viam, a robotics and automation platform, raised a $45M Series B led by Union Square Ventures and Battery Ventures (TC)

  • Modular AI blockchain startup 0G Labs raised a $35M pre-seed round led by Hack VC (TC)

  • Telemental health startup Brightside Health raised a $33M Series C led by S32 (BW)

  • Fieldguide, a startup providing an AI platform for advisory and audit services, raised a $30M Series B led by Bessemer Venture Partners (FN)

  • PipeDreams, a startup that acquires mom and pop HVAC and plumbing companies, raised a $25.5M Series A led by Canvas Ventures and Plural (TC)

  • Fireworks.ai, a startup building an open-source model API, raised $25M in financing led by Benchmark (TC)

  • Eco-friendly personal care startup 900.care raised a $23M round led by Lombard Odier Investment Managers (TC)

  • Evoloh, a startup manufacturing electrolyzers for hydrogen production, raised a $20M Series A led by Engine Ventures (TC)

  • Tennr, a startup automating manual work for healthcare orgs, raised an $18M Series A led by a16z (FN)

  • ZayZoon, an earned wage access provider, raised a $15M Series B extension led by Viola Fintech (BW)

  • Ember, an electric bus network company, raised an $11M Series A led by Inven Capital, 2150, and AENU (FN)

  • MyPrize, a startup building an online crypto casino, raised $13M in financing at a $140M valuation led by Dragonfly and Boxcars Ventures (FN)

  • Military infrastructure startup Picogrid raised a $12M seed round led by Initialized Capital (TC)

  • Tonic App, a digital health startup, raised a $12M Series A led by BlueCrow Capital and Iberis Capital (EU)

  • Database for AI startup Activeloop raised an $11M Series A led by Streamlined Ventures, Y Combinator, Samsung Next, and more (PRN)

  • Binarly, a startup providing an AI-powered firmware and software supply chain security platform, raised a $10.5M seed round led by Two Bear Capital (BW)

  • K9 Resorts, a luxury pet boarding and daycare franchise, received a $10M investment from Partners Pacific Resorts (PRN)

  • Bedrock Security, a data security platform, raised a $10M seed round led by Greylock (BW)

  • Iron Sheepdog, a startup providing trucking technology solutions for brokers and contractors, raised a $10M Series B led by SJF Ventures (FN)

  • Abstract Security, a security platform equipped with an AI-powered assistant, raised an $8.5M seed round led by Crosslink Capital, Rally Ventures, and Liquid 2 Ventures (FN)

  • Scaleup Finance, a platform helping startups with their financial planning, raised an $8M pre-Series A led by Inveready (EU)

  • OpenPipe, a startup allowing developers to create their own application-specific LLMs, raised a $6.7M seed round led by Costanoa Ventures (FN)

  • Web3 and AI startup Tensorplex Labs raised a $3M seed round led by Canonical Crypto and Collab+Currency (FN)

  • Popularium, a startup building the world’s first autobattler-royale, raised a $2M seed round from Palm Drive Capital, The Data Economics Company, and others (PRN)

IPO / Direct Listings / Issuances / Block Trades

  • Alibaba called off a $1B+ Hong Kong IPO for its Cainiao logistics arm (BBG) 

  • Carlyle is considering options for Indian IT firm Hexaware Technologies, including an IPO that could raise $1B (BBG)  

  • Galderma underwriters bought $330M worth shares from existing shareholder Sunshine SwissCo (RT)

  • PE firm Olympus Capital Asia plans to sell a 9.8% stake in India's Aster DM Healthcare for up to ~$235M, representing the firm's current stock value (RT)  

  • UK financial services platform Marex Group filed for a US IPO (BBG) 

  • State-backed Investment Corp. of Dubai is considering an IPO of construction firm ALEC (BBG) 

SPAC

  • Shares of Trump Media rose ~16% in its debut day of trading after closing its merger with Digital World Acquisition Corp., giving the social media startup a ~$7.9B valuation (BBG) 

  • Precision medicine company OmnigenicsAI will merge with APx Acquisition Corp. I in a $340M deal (PRNW)

Debt

  • Belgian chemicals and plastics maker Solvay received $9.5B in orders for a $1.6B bond issuance (BBG) 

  • Mexican telecom Total Play Telecomunicaciones bonds soared 17¢ to trade at 77¢ on the dollar after an offer to swap $362M of debt for longer maturities (BBG)

Bankruptcy / Restructuring

  • Rite Aid reached a settlement with lenders, the DOJ, and drug supplier McKesson, clearing a path for the pharmacy chain to complete its bankruptcy case by late April (RT) 

  • German department store chain Galeria Kaufhof is in talks with two bidders for a potential takeover following its insolvency caused by the collapse of Signa (BBG) 

  • Troubled French IT company Atos expanded restructuring talks to include bondholders and will present creditors with a refinancing framework by April 8 (BBG) 

Fundraising

  • Swiss PE firm Partners Group launched a new PE secondary fund worth up to $12B (RT) 

  • Morgan Stanley Capital Partners raised $700M for a continuation fund to ​​help prolong its control of World 50, an executive-networking business (WSJ) 

Crypto Corner

  • US prosecutors charged crypto exchange KuCoin with failing to comply with US anti money-laundering laws (BBG) 

  • Texan bitcoiners start mining in Argentina, where peso is in freefall (CNBC)

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