Mets72

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Litquidity Capital
December 10, 2024

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Good Morning,

Accounting errors are plaguing US firms, McKinsey named its smallest partner class in years, Nvidia is facing antitrust scrutiny everywhere, Google made a major breakthrough in quantum computing, a UPenn grad was charged in the murder of UnitedHealth's CEO, and Steve Cohen bankrolled the biggest contract in sports history.

With over 80% of lenders now looking past credit scores, Plaid released some quick insights on four trends shaping the future of finance.

Let's dive in.

Before The Bell

As of 12/09/2024 market close.

Markets

  • US stock indexes pulled back from ATHs yesterday as investors looked ahead to crucial CPI data this week 

  • China's CSI 300 jumped to a three-week high on a major stimulus announcement

    • China 10Y yields slipped to 1.87% to new record lows

    • Corporate yuan bond spreads tightened by the most since 2018 after yields fell 20-days straight in their longest decline ever

  • Korea's KOSPI index gained 2% after losing $100B to 'martial law' crisis

  • Gold hit a two-week high as China resumed buying after six months

  • US average gas prices dropped below $3/gal for the first time since 2021

  • Cocoa futures rose 6% back above $10k/ton to the highest in seven months

  • Traders are also looking ahead to ECB, SNB and BoC rate decisions this week

Earnings

  • Oracle fell 8% after missing Q2 EPS and revenue estimates and issuing a weaker-than-expected forecast as strong cloud infrastructure growth failed to impress investors' high bar (CNBC) 

  • Toll Brothers beat Q4 EPS and revenue estimates in its strongest year ever as a strong stock market provided a lift to their wealthy buyers (BBG)

  • What we're watching this week:  

    • Today: AutoZone, GameStop

    • Wednesday: Adobe, Macy's 

    • Thursday: Costco, Broadcom

  • Full calendar here

Headline Roundup

  • 'Merger Monday' spree signals revival of deals since Trump victory (FT)

  • Bankers expect Europe IPO market to rebound despite threats in 2025 (BBG)

  • China loosened monetary policy stance for first time in 14 years (WSJ)

  • China producer prices fell for a 26th-straight month to -2.5% (CNBC)

  • Japan bankruptcies are set to hit an 11-year high (RT)

  • Australia business activity slid to the lowest since Covid (RT) 

  • Foreign investors bought India stocks by the most since June 2023 (BBG)

  • Demand for UK employees hit the lowest since Covid (FT)

  • PIMCO cut exposure to long-term US debt on deficits worries (FT)

  • Accounting errors force US firms to pull statements in record numbers (FT)

  • BoE warned hedge funds are bringing 'vulnerabilities' to gilt market (FT)

  • US firms lawyer up in preparation for Trump trade wars (FT)

  • US import rates set to hit record high amid tariff threats (RT)

  • China launched an antitrust investigation into Nvidia (WSJ)

  • Vanguard will accelerate wealth business as part of restructuring (FT)

  • McKinsey named its smallest partner class in years (WSJ)

  • Activist Barington is pressuring Macy's to create a new real estate unit (WSJ)

  • TikTok hired ex-Trump solicitor general ahead of SCOTUS appeal (RT)

  • TSMC founder says Intel should've focused on AI rather than chips (RT)

  • Newmont cut a dozen from management amid corporate restructuring (RT)

  • Volkswagen and union talks see no solution in sight (RT)

  • Google made a major breakthrough in quantum computing (TV)

  • Swiss prosecutors want four years in jail for Trafigura ex-COO (FT)

  • Big banks are snapping up tech grads (WSJ)

  • Taylor Swift raked in $2B from Eras concert tour (FT)

  • Juan Soto's $765M Mets contract is the biggest-ever in sports history (ESPN)

  • Suspected UnitedHealth CEO's killer was arrested in McDonald's (BBG)

A Message from Plaid

The world of finance can be a fickle one. Today’s innovative ideas can be tomorrow's security concerns, and vice versa – exactly why it’s important to stay informed on what's trending.

Lucky for you, Plaid has it covered. Their latest report on the Top Trends Driving The Future Of Finance breaks down what’s moving and shaking finance today, how these trends are shaping the next era of the industry, and why they should matter to you. 

This quick guide peels back the curtain on the 4 biggest trends in finance, and walks you through some actionable insights into…

  • How pay by bank can cut payment costs by 20-70%

  • Why 83% of lenders are ready to look beyond credit scores

  • How almost half of all fraud attempts now incorporate AI

  • And more

Deal Flow

M&A / Investments

  • Snacks maker Mondelez International is exploring an acquisition of $40B-listed iconic chocolate maker Hershey

  • Insurance brokerage Arthur J. Gallagher ​​agreed to acquire GTCR-founded peer AssuredPartners in a $13.5B cash deal

  • Apollo-backed packaging company Novolex will acquire listed peer Pactiv Evergreen in a $6.7B deal, including debt

  • Omnicom agreed to buy Interpublic in a $13.3B stock deal that will create the world's largest advertising company

  • Singapore's GIC is reviewing a $5B sale of its 50% stake in Indian renewable energy firm Greenko

  • Macquarie will acquire a 40% stake in some Gulf Coast infrastructure assets from chemicals giant Dow for $2.4B

  • Swedish miner Boliden agreed to acquire zinc and copper mines in Portugal and Sweden from Lundin Mining for up to $1.5B

  • $1.3B-listed Japanese eye-care equipment maker Topcon is weighing takeover bids from KKR, EQT and state-owned Japan Investment Corp. 

  • CVC offered to take German healthcare software firm CompuGroup Medical private for $1.2B 

  • Chelsea FC-owner Todd Boehly entered the ~$700M auction for UK's Telegraph newspaper 

  • BP and Japan's biggest electricity producer Jera will merge their offshore wind businesses

  • Malaysian telecoms giant Axiata and Indonesian conglomerate Sinar Mas are nearing an agreement to merge their Indonesian telecom operations

  • NYC five-star hotel The Pierre is up for sale 

VC

  • GDS International, a Singaporean data center pioneer, raised a $1.2B Series B from SoftBank and Ken Griffin

  • Sustainable AI data center startup Nscale raised a $155M Series A led by Sandton Capital Partners

  • Emotionally-intelligent audio AI startup WaveForms raised a $40M seed round led by a16z

  • Podcast recording platform Riverside raised a $30M Series C led by Zeev Ventures

  • Pixxel, a startup building the world's highest-resolution hyperspectral satellite constellation, raised a $24M Series B extension led by M&G Catalyst and Glade Brook Capital Partners

  • Evidently, an AI platform for healthcare workflows, raised a $15M Series A led by DN Capital

  • Spexi, an earth imagery startup, raised an $11.5M Series A led by Blockchange Ventures

  • HEMAV, a startup focused on AI driven agriculture solutions, raised $8.7M led by Future Food Fund, PureTerra Ventures, and Inclimo

  • Bilingual digital health platform MiSalud Health raised an $8M round led by Samsung Next

  • CAT Labs, a startup building tools to prevent misuse of emerging technologies, raised a $5.4M seed round led by M13

IPO / Direct Listings / Issuances / Block Trades

  • Arthur J. Gallagher announced an $8.5B stock offering to fund its $13.5B acquisition of AssuredPartners

  • Bain Capital-backed Japanese chipmaker Kioxia raised $800M at a ~$5.2B valuation in its Japan IPO 

  • Indian power producer Continuum Green Energy filed for a $430M IPO

  • Shareholders of French media giant Vivendi approved plans to spin off its core businesses Canal+, Havas and newly created Louis Hachette 

Debt

  • Banks are preparing a $9.6B debt package to back a potential LBO of Unilever's $19B ice cream business

  • India's Reliance Industries is in talks to borrow $3B in potentially India's largest offshore loan in a year

  • Saks-owner Hudson's Bay launched a $2B junk bond offering to fund its $2.7B acquisition of luxury retail group Neiman Marcus

  • Investment firm Balbec Capital is seeking to raise $846M via Spanish MBSs

  • Apollo will invest in a $370M portfolio of infrastructure loans owned by Santander

Fundraising

  • Apollo is seeking $25B for its eleventh PE fund

  • Blackstone is seeking to raise $5B for its sixth life sciences fund

  • Fintech-focused Centana Growth Partners closed its third fund at $600M

  • VC Dimension Capital raised $500M for its second fund to invest in life sciences and tech

Crypto Corner

  • Firms ride Bitcoin wave to raise billions from convertible debt (BBG)

  • US Bitcoin ETF inflows hit $10B since Trump's victory (BBG)

  • MicroStrategy acquired another $2.1B of Bitcoin (BBG) 

  • Crypto exchange Bitget is considering expanding in US (CD) 

Exec’s Picks

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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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