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Good Morning,

Kevin McCarthy was ousted as House Speaker, credit markets wobbled during the most recent Fed speech, Amazon used an algorithm to raise prices, Dalio feels cautious about US-China relations, Bill Gross says the surging 10-year yield could test 5% in the short term, and Netflix plans to raise prices after the actors strike ends.

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Let’s dive in.

Before The Bell

Markets

• US stocks dropped as treasury yields hit their highest levels since 2007, inciting concerns about the housing market

  • The Dow fell 1.29% and is now negative YTD; The Nasdaq led indices with a 1.87% decline

  • US 30Y gained 12.7 bps to hit 4.923%

  • US 10Y gained 11.2 bps to hit 4.795%

• European stocks fell ~1%, dragged lower by rate-sensitive utilities and miners, due to US rate concerns

Earnings

• What we're watching this week:

  • Today: Tilray

  • Thursday: Lamb Weston, Levi’s, Constellation Brands

• Full calendar here

Headline Roundup

• Credit markets wobble as Fed speak, data fan rate-hike angst (BBG)

• Investors find little reason to buy stocks as rates fears spread (BBG)

• Amazon used secret ‘Project Nessie’ algorithm to raise prices (WSJ)

• Ray Dalio says US-China relations are on the ‘brink of red lines’ (BBG)

• US funding cutoff threatens Ukraine’s economic stability (WSJ)

• Bill Gross says the surging 10-year Treasury yield could test 5% in the short term (CNBC)

• Ex-Soros partner surfs Argentine crisis with real estate empire (BBG)

• Your phone will make an alarming noise Wednesday at 2:20 pm ET unless you turn it off first (CNBC)

• Wall Street thinks America’s homes are overvalued (WSJ)

• Netflix plans to raise prices after actors strike ends (WSJ)

• United Airlines buys 110 additional Boeing, Airbus jets into the 2030s with delivery slots scarce (CNBC)

• Tougher return-to-office policies are no remedy for half-empty buildings (WSJ)

• Google is making big changes to prevent Gmail spam (CNBC)

• Kevin McCarthy ousted as House Speaker in historic vote (RT)

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Deal Flow

M&A / Investments

• PNC Financial Services' banking unit acquired a portfolio of capital commitments from Signature Bridge Bank worth $16.6B in an agreement with the FDIC as receiver (RT)

• Billionaire Gina Rinehart’s Hancock Prospecting expanded its stake in lithium miner Albemarle’s $4.2B acquisition target Liontown Resources and now owns 14.67% of the lithium producer Liontown; Rineheart needs a 15% stake to block the deal (BBG & RT)

• PE firms Blackstone, EQT and THL Partners are competing against large US industrial automation firms to acquire German power electronics firm EA Elektro-Automatik, which could be valued at $1.5B-$2B, including debt (RT)

• Eli Lilly will acquire Point Biopharma Global for $1.4B, gaining access to targeted cancer therapies (RT)

• BP is exploring a $1B, 49% stake sale in its US oil and gas pipeline network (RT)

• Brookfield Asset Management will acquire the renewables division of the Banks Group, an operator of UK onshore wind farms, in a deal worth ~$1B (BBG)

• Asset manager Rithm Capital will acquire Australian share registry company Computershare’s US mortgage services arm for $720M (RT)

• BlackRock is in position to acquire a minority stake in a $628M gas grid unit of Italian multi-utility Iren (RT)

• PE firm Vista Equity Partners acquired a $250M majority stake in enterprise software provider TRG Screen (BBG)

• Krispy Kreme is exploring options for its Insomnia Cookies unit, including a potential sale (RT)

• French technology company Vantiva will buy US network infrastructure provider CommScope's Home Networks division in exchange for a 25% stake in Vantiva (RT)

• Novartis is considering selling part of radiopharmaceuticals company Advanced Accelerator Applications (BBG)

VC

• Everise, a global healthcare services outsourcing company, raised an undisclosed amount at a $1B valuation from Warburg Pincus (PRN)

• Green hydrogen production startup Electric Hydrogen raised a $380M Series C led by Fortescue, Fifth Wall, and Energy Impact Partners (BW)

• Iambic Therapeutics, a startup developing therapeutics from its AI generative discovery platform, raised a $100M Series B led by Ascenta Capital and Abingworth (BW)

• Accounts payable automation startup Stampli raised a $61M Series D led by Blackstone (PRN)

• Open source infrastructure code platform Pulumi raised a $41M Series C led by Madrona (BW)

• Automata Technologies, a robotics startup focused on lab automation, raised $40M in funding led by Dimension (BW)

• Cortica, a physician-led and whole-child value-based autism services company, raised a $40M Series D extension led by CVS Health Ventures (PRN)

• Akura Medical, a venous thromboembolism treatment startup, raised a $35M Series B led by The Capital Partnership and Cormorant Asset Management (PRN)

• Frec, a provider of automated self-service products for investment products, raised a $26.4M Series A led by Greylock (FN)

• South African payments startup Stitch raised a $25M Series A extension led by Ribbit Capital (TC)

• Amperon, an AI-powered electricity forecasting platform, raised a $20M Series B led by Energize Capital (PRN)

• AI-driven insurance claims processing startup Reserv raised a $20M Series A co-led by Altai Ventures and Bain Capital Ventures (FN)

• Unitary AI, a startup using a ‘multimodal’ approach to video content moderation, raised a $15M Series A led by Creandum (TC)

• Vayu Robotics, an AI company providing low-cost robotics solutions, raised a $12.7M seed round led by Khosla Ventures (BW)

• Osmoses, an industrial separations technology company that purifies gases, raised an $11M seed round led by Energy Capital Ventures (BW)

• Qobra, a startup helping businesses manage sales compensation, raised a $10.5M Series A led by Singular (TC)

• Chinese AI-based cockpit startup MINIEYE raised a $10M round from Fortune-Light Venture (BW)

• Lokavant, a clinical trial intelligence platform, received an $8M investment from Mitsui & Co. Ltd. (BW)

• Kubernetes optimization startup PerfectScale raised a $7.1M seed round led by Blumberg Capital (BW)

• Rantizo, an operator network for spray drone services, raised a $6M Series A led by Leaps by Bayer (PRN)

IPO / Direct Listings / Issuances / Block Trades

• Intel plans to spin out its programmable chip unit as a standalone business starting January next year and plans to hold a public stock offering for the business in 2-3 years; it acquired the business for $16.7B in 2015 (RT)

• Shares in JSW Infrastructure, India’s second-largest commercial port operator, closed 32% higher in its debut day of trading, valuing the company at $4B (RT)

• Italian luxury sneaker brand Golden Goose is exploring a potential stock market listing in Milan in the first half of 2024 (RT)

SPAC

• Heramba Electric, a commercial transportation decarbonization investor, will merge with Project Energy Reimagined Acquisition Corp. in a $450M deal (PRNW)

Debt

• Carlyle Group is seeking a debt package of at least $2.5B from banks and private credit lenders for its potential acquisition of stakes in some of medical-device maker Medtronic’s business units (BBG)

Bankruptcy / Restructuring

• US investment firm Castlelake, Air France, and the Danish state will become new major shareholders in Scandinavian airline SAS following bankruptcy proceedings; total investments in the reorganized SAS will amount to $1.2B (RT)

• WeWork shares fell up to 25% after the company skipped interest payments due on five of its bonds (BBG)

Fundraising

• Brookfield Asset Management raised $12B for its largest-ever PE fund, BCP VI (BBG)

• VC Greylock Partners secured $1B for its 17th early-stage fund to target pre-seed, seed, and Series A companies in enterprise and consumer software (TC)

• Energy transition Infrastructure investment specialist Quinbrook Infrastructure Partners raised $749M for its Quinbrook Renewables Impact Fund, substantially exceeding its $604M target (BW)

• French VC HCVC closed its Fund II at $75M to back pre-seed and seed companies in North America and Europe (TC)

Crypto Corner

• Bankrupt crypto lender Celsius Network’s former CEO Alex Mashinsky’s fraud trial has been scheduled for September 17, 2024 (BBG)

• Ripple obtained full license to operate in Singapore as it expands in Asia-Pacific (CNBC)

• Former FTX COO Constance Wang agreed to serve as a witness for US prosecutors against SBF (RT)

Exec’s Picks

• Packy McCormick wrote a cool breakdown on Anduril’s acquisition strategy.

• Samanth Subramanian explained how Michael Lewis got a backstage pass for SBF’s downfall in this Guardian piece.

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