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The UK blocked Microsoft’s $69B purchase of Activision Blizzard, US business spending continued to fall in March, S&P 500 earnings are coming in better than expected, Biden said US chip subsidies weren’t designed to hurt China, First Republic is seeking more big bank help, and Disney sued Ron DeSantis.

If you work in venture capital, private equity, or M&A, check out this industry breakdown created by today's sponsor, Axios Pro.

Let’s dive in.

Before The Bell

Markets

• US stocks ended yesterday's session mixed on the back of strong tech earnings, weak economic data and ongoing wrangling in DC over the debt ceiling

• The pan-European Stoxx 600 lost 0.8%

• Oil dropped 4% as recession fears outweigh US inventory draw

Earnings

• Meta posted a Q1 beat and raise on its first revenue increase in nearly a year due to improvements in its ads business and declining expenses thanks to layoffs; their shares rose 11% AH (YH)

• Boeing beat Q1 revenue estimates but posted a wider-than-expected loss due to abnormal costs and R&D expenses; the firm reaffirmed its FY FCF forecast (CNBC)

• What we're watching this week:

  • Today: Amazon, Intel, Snap, Eli Lilly 

  • Friday: Exxon, Chevron 

• Full calendar here

Headline Roundup

• Odds of US technical debt default seen at 2-3% and to be fixed quickly (RT)

• US business spending fell more than expected in March (RT)

• US consumer spending sees substantial declines (AX)

• China stocks lost $519B in value since reporting 4.5% GDP growth last week (FT)

• UK received a record £46B in bids for inflation-linked bond sale (BBG)

• Bank stress likely to lead to tighter lending and corporate defaults (RT)

• Estimated decline in S&P 500 Q1 earnings improved to 3.2% (RT)

• US 5Y CDS hit highest level since 2011 (RT)

• Biden said US chip subsidies not ‘designed to hurt China’ (BBG)

• First Republic is requesting big banks' help with threat of $30B in losses if ignored (CNBC)

• Yuan overtook USD as most-used currency in China cross-border transactions (RT)

• First Republic could face potential curb on borrowing from Fed (BBG)

• Billion-dollar HF startups rise to pre-pandemic levels (BBG)

• PIMCO’s CIO says geo-politics will influence markets more than CB decisions (BBG)

• Goldman shareholders express CEO criticism at annual meeting (RT)

• Deutsche Bank is undertaking its biggest management overhaul since 2019 (RT)

• Walmart is using AI to negotiate with vendors (BBG)

• PwC will invest $1B in Generative AI push (WSJ)

• Chinese police questioned Bain’s Shanghai employees (FT)

• US believes Chinese cloud companies could pose security threat (RT)

• Disney sued Florida's Ron DeSantis (RT)

• Stellantis will offer buyouts to hourly and salaried workers (WSJ)

• Tyson Foods will cut 10% of corporate jobs (RT)

• India passed China as world’s most populous nation (FT)

A Message From Axios Pro

If your work touches venture capital, private equity or M&A, this might be the most important report you read all year:

Knowing what the current economic cooldown means for your bottom line, and how to plan for a possible recession is going to be your edge. Thanks to the Axios Pro newsroom, their latest industry report will tell you everything you need to know.

Their industry-leading journalists put this downturn into context and uncover how market forces are affecting dealmaking in fintech, health tech, climate tech, retail and media.

The Axios Pro newsroom delivers aggregated data and analysis from the biggest players in VC, PE and M&A, plus key industry trends and takeaways to inform every critical decision you’ll make this year.

Deal Flow

M&A / Investments

• UK regulators blocked Microsoft’s $69B purchase of ‘Call of Duty’ maker Activision Blizzard (RT)

• Air conditioner maker Carrier Global will buy German industrial firm Viessmann's unit that makes heating boilers and heat pumps in a $13.2B cash-and-stock deal (RT)

• PE firms Abry Partners and Parthenon Capital Partners are exploring a sale of US retirement plan custodian Millennium Trust Company at an $8B valuation, including debt (RT)

• Content moderation and customer service company Teleperformance offered to buy Luxembourg-based customer service company Majorel for $3.3B (BBG)

• Plenty paper towel maker Essity is considering options for its $1.7B majority stake in Hong Kong-listed tissue paper producer Vinda International (BBG)

• Apollo agreed to buy part of a portfolio of apartments from German real estate firm Vonovia for $1.1B (BBG)

• PE firm Great Hill Partners agreed to buy a majority stake in software provider Fusion Risk Management in a $500M deal (BBG)

• Healthcare group Kaiser Permanente will acquire smaller peer Geisinger Health (NYT)

• Infrastructure fund Macquarie Asset Management agreed to buy a minority stake in Austrian car park company Best in Parking (RT)

• Abu Dhabi state-backed steel group Emirates Steel Arkan is considering buying a stake in German conglomerate Thyssenkrupp’s steel unit (BBG)

• A Kazakh company plans to buy Hyundai's Russian manufacturing plants, allowing the car-maker to exit the country (RT)

VC

• Vietnamese EV maker VinFast received new funding pledges worth $2.5B for its future development while remaining committed to a US IPO (RT)

• Orbital Therapeutics, a startup working to develop RNA-based medicines, raised a $270M Series A led by ARCH Venture Partners (FN)

• Green hydrogen company Ohmium raised a $250M Series C led by TPG Rise Climate (BW)

• e2ip technologies, a startup developing tech for the printed electronics and embedded system industries, raised a $120M growth round co-led by Export Development Canada and McRock Capital (FN)

• Evommune, a clinical-stage biotech company focused on developing therapies to treat chronic inflammatory diseases, raised a $50M Series B co-led by Arix Bioscience and EQT Life Sciences (PRN)

• TheGuarantors, a fintech startup building financial and insurance solutions for renters and landlords, raised $35M in growth funding from CIBC Innovation Banking (FN)

• Japanese shared micromobility startup Luup raised a $30M Series D led by Spiral Capital at a $100M+ valuation (TC)

• Axoni, a provider of data synchronization technology and financial market infrastructure, raised a $20M round led by EJF Ventures (PRN)

• NRIHelpLine, a startup helping NRIs manage assets, raised a $20M seed round led by A Subba Rao, Arjun Nijhawan, Rahul Narvekar, Navneet Singh, and Bharat Bhushan (FN)

• Cloud-based platform for frontline teams Relay raised a $13M Series A from Sovereign's Capital, Wind River Ventures, and existing shareholders (FN)

• CTRL Therapeutics, a startup developing a cell therapy platform for solid tumors, raised a $10M seed round led by General Catalyst (FN)

• AI development platform aiXplain raised an $8M seed round led by Transform VC and Calibrate Ventures (PRN)

• AirOps, a startup helping businesses deploy AI apps, raised a $7M seed round led by Wing VC (BW)

• Cleantech startup UniSieve raised a $5.5M seed round from backers including Amadeus APEX Technology Fund, Wingman Ventures, Ciech Ventures, and Zrcher Kantonalbank (FN)

• Ansa, a digital wallet infrastructure platform for merchants, raised a $5.4M round led by Christina Meles-Kyriazi at Bain Capital Ventures (BW)

• Cybersecurity company AaDya Security raised a $5M Series A led by Left Lane Capital (PRN)

• Cata Labs, a startup building a cross-chain liquidity layer, raised a $4.2M seed round led by Spartan Group (BW)

• CurbWaste, a startup providing an operating system for the waste management industry, raised a $4M seed+ round led by TTV Capital (FN)

• Amboss Technologies, a data analytics company for the Bitcoin Lightning Network, raised a $4M seed round from Stillmark, Valor Equity Partners, Draper Associates, and more (FN)

• HydRegen, a startup enabling sustainable chemical manufacturing, raised a $3.2M Series A led by Clean Growth Fund (FN)

IPO / Direct Listings / Issuances / Block Trades

• Semiconductor Manufacturing Electronics Shaoxing Corp., a chip foundry backed by China’s top semiconductor firm SMIC, is set to raise $1.4B in Asia’s biggest IPO YTD (BBG)

• Indian stationery company Doms Industries is planning to file for a Mumbai IPO that could raise $200M-$300M (BBG)

• First Republic Bank has lined up investors for a stock sale if it gets big banks to purchase bonds at a premium (CNBC)

SPAC

• Brand and IP protection services firm OpSec will merge with Investcorp Europe Acquisition Corp. I in a $426M deal (MW)

• Clean energy startup NET Power secured an additional $275M in capital for its proposed merger with Rice Acquisition Corp. (BJ)

• ACE Convergence Acquisition Corp. secured up to $100M in committed equity financing for its merger with electronics manufacturer Tempo Automation (BW)

Bankruptcy / Restructuring

• SVB's ex-owner may need to take out a bankruptcy loan amid uncertainty over FDIC's seizure of $2B in cash (RT)

• The Canadian unit of SVB will begin the sale of its loan book in May (BBG)

Fundraising

• Ares Management raised $1.5B for a new private debt fund, Ares Strategic Income Fund, tailored to HNW individuals (YH)

• Oaktree Capital Management raised $1.3B for its private debt fund Oaktree European Capital Solutions Fund III (IPE)

• Venture firm Greycroft raised $980M for its Greycroft Partners VII and Greycroft Growth IV fund(BBG)

Crypto Corner

• Binance CEO 'CZ' is lawyering up amid ‘Chilling’ US crypto regulatory climate (DC)

• Crypto firms are relying on US Treasuries to sweeten yield offerings (WSJ)

• Binance Academy launched a chatbot powered by ChatGPT (CP)

• UK crypto industry growth is outpacing the US, Germany, Japan and Canada (BC)

• University of Cambridge will start tracking Ethereum energy data along with Bitcoin (DC)

• FTX-owned video game developer Good Luck Games is shutting down (BBG)

Exec’s Picks

• Bloomberg explained where and how the world has spent $1.1T on climate tech.

• Reuters shared a detailed story on Meta’s scramble to catch up in the AI race.

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