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Good Morning,
Citi shortened its IB analyst program to fend of PE poaching, the Fed is visiting big banks to review loan books, Bessent pulled back on his "I am the house" claims, Sam Altman says AI benefits warrant accepting some risks, and an HSBC exec was banned from the financial services industry after dodging $8k in train tickets.
UK regulators got their priorities straight lmaoo (someone please find out if FINRA has similar consequences for MTA fare evasion👀).
Mizuho's head of macro strategy Dominic Konstam shared some valuable insights on the state of the US economy, especially in light of the macro forces of the last two quarters. Read more below.
Let's dive in.
Before The Bell
As of 10/5/2026 market close.
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Markets
US stocks continued to rise yesterday on the back of Friday's weaker-than-expected jobs report which dampened expectations for a Fed rate hike
Nasdaq hit a new ATH
US 10Y and 30Y yield rose to 5.34% and 5.7% respectively to their highest levels since 2002
Euro dropped to a 17-month low on French debt concerns
Earnings
Prediction Markets
There's no way Rams can be properly priced as favorites above the Niners after their week 1 blowout and Brock Purdy's form since
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Headline Roundup
Citi shortened IB analyst program to two years to fend of PE poaching (BBG)
Ex-HSBC exec banned from financial services industry after dodging $8k in London train tickets (ES)
Fed is visiting big banks to review loans to private credit firms (SMF)
Bessent pulls back on "I am the house" claims as bonds get cooked (NYT)
ICE offers tanker derivatives for route outside Strait of Hormuz (BBG)
New hazard for Treasuries hides in bond futures' fine print (BBG)
CitSec says economic strength is driving higher yields (BBG)
Blue Owl fund withdrawal requests slow as private credit turmoil eases (RT)
Bank stocks are being haunted by the ghosts of 2023 (WSJ)
French central bank says country at risk of being 'strangled by rates' (FT)
Sam Altman says AI benefits warrant accepting some risks (RT)
GPU financing is filtering into ABSs (BBG)
Saudi Aramco CEO warns world's oil stockpiles are 'scarily thin' (FT)
Elon Musk is officially a trillionaire again (FRB)
US pulled bombers from UK after terrorism threats (FT)
A Message from Mizuho
In the last few quarters, the US economic story has changed meaningfully.
Inflation has remained persistent, with both supply and demand dynamics conspiring to keep upward pressure on prices. The war in Iran has continued to drag on longer than anticipated, which has kept oil prices elevated and the price of some energy products – namely, diesel – near the highest levels on record.
A massive AI investment cycle has added to inflationary pressures, and record corporate profits have kept financial markets buoyant, contributing to a wealth effect with resilient consumer spending keeping prices firm. Easy fiscal policy has also boosted demand, and the US economy, on balance, looks closer to experiencing a cyclical upswing rather than any "soft-landing" or late-cycle dynamics that might otherwise encourage caution from investors.
Deal Flow
M&A / Strategic
Italian lender Intesa Sanpaolo's improved $39B bid for peer BMPS won support of BMPS's largest shareholder Delfin
Schneider Electric agreed to acquire engineering software provider PTC for $22.6B cash at a 40% premium
Ariel Investments is pushing for $16B-listed toy maker Mattel to explore a sale
UK fintech Monzo Bank is courting PE investors after takeover talks with Brazilian fintech giant Nubank collapsed over its $13.2B asking valuation
Logistics platform CH Robinson Worldwide agreed to buy trucking brokerage firm RXO in a $5.8B cash-and-stock deal
Japanese elevator makers Mitsubishi Electric and EQT-owned Fujitec are studying bids for the $5.6B European operations of TK Elevator, which Kone agreed to sell to clear antitrust approvals for its $33.3B takeover of TK Elevator from Advent and Cinven
KKR will buy fund administrator Gen II in $5.1B, including debt
Drug distributor McKesson and PE firm CD&R are nearing a deal to acquire infusion services provider Option Care Health for $5B, including debt
Canada's Cenovus Energy agreed to buy Athabasca Oil Corp. in a $4.1B cash-and-stock deal
Japanese drugmaker Shionogi agreed to acquire US-based drugmaker IntraBio for $2B
Centalion Group (fka Gunvor) acquired upstream and midstream natural gas assets in Texas and Louisiana from private shale company Silver Hill Energy Partners for $1.5B
Swiss drugmaker Roche will pay up to $1.27B to license Alector's experimental Parkinson's treatment
UK's Ithaca Energy agreed to buy assets in Canada from Suncor Energy for up to $1.1B cash
PE firm Boyu Capital is considering a $1B sale of medical device maker Quasar Medical
US will buy three California immigration detention facilities from GEO Group for $950M
GE HealthCare will buy radio pharma firm SOFIE Biosciences for $945M cash
UK grocer Sainsbury's held merger talks with rival Morrisons
Danish brewer Carlsberg will buy PepsiCo's bottlers in Georgia and Armenia
Spain's largest real estate developer Neinor Homes will form a new $130M housing JV with biggest shareholder Orion Capital Managers
VC
AI chip startup Etched is in talks to raise a new round at a $40B-$50B valuation
OpenAI is in talks with multiple UAE funds and BlackRock to help anchor a $30B pre-IPO round
Axiom, Flex's cloud and power infrastructure segment, raised $2B in a convertible preferred stock sale at a $37.5B enterprise valuation led by General Catalyst and Koch Equity Development
VoltaGrid, a behind-the-meter power generation company, raised $775M in primary equity investment and sold $800M of secondary shares in a deal led by Blackstone Tactical Opportunities and Halliburton
Mal, an Abu Dhabi-based AI-native Sharia-compliant digital banking platform provider, raised a $230M seed round
Valon Technologies, an AI-native OS for regulated finance (mortgage servicing), raised a $150M Series D at a $2.3B valuation
Namespace, a developer infrastructure startup, raised a $42M Series B led by Scale Venture Partners
RobCo, a German industrial robotics startup, raised a $40M funding round at a $1B valuation led by Sequoia, Lightspeed, and others
Clockwork.io, fault-tolerance software for AI infrastructure, raised $31M in new funding co-led by Premji Invest, Wing Venture Capital, and Seligman Ventures
Pro Shop, a media platform connecting golf with mainstream culture, raised a $24M Series B led by Arthur M. Blank Sports and Entertainment
Living Optics, an Oxford spinout focused on computational hyperspectral camera technology, raised a $20M round led by BRV Capital Management
Safeworld, a robot-safety startup, raised a $12M seed round led by Shine Capital and a16z Speedrun
Ghost, a maker of a $3,500 personal AI computer, raised an $11M seed round led by a16z
UpSmith, an AI platform for home services contractors, raised a $10M Series A led by SemperVirens
Hestus, a startup developing AI tools for mechanical engineering, raised a $7.4M seed round led by Insight Partners
Access the complete VC deal flow and data on Fundable
IPOs / Listings / Issuances / Block Trades
Aussie data center company Firmus plans to allocate half of its record $5.5B Australia IPO to early backers
Volare Shipping raised $500M at a $1.2B valuation in a debut private placement in Norway following its spinoff from Trafigura
Lilly-backed autoimmune and inflammatory disease-focused biotech TRex Bio is seeking to raise $133M at a $440M valuation in an IPO
Singapore data center operator DayOne Data Centers filed for a US IPO
SPAC / SPV
Post-quantum-secure satellite communications and IoT firm WISeSat.Space completed its merger with Columbus Acquisition Corp. to trade at a $230M market cap
Debt
Wall Street banks including Bank of America, Citigroup, and Morgan Stanley began offloading part of a record $60B debt package to fund Anthropic's lease of Google TPUs, guaranteed by Broadcom
Banks kicked off a $5.3B leveraged loan sale for Bain Capital's acquisition of a controlling stake in Volkswagen's heavy diesel engine unit Everllence
JPMorgan is pitching an 11% yield on a $5B leveraged loan sale on behalf of Volta Infrastructure
India's state-backed Bharat Petroleum Corp. plans to raise $3B in an international bond sale to fund a major Brazil oil project and refinance debt
Hong Kong developer New World Development kicked off an exchange offer for $990M of outstanding dollar notes
Stonebriar Commercial Finance is selling $870M of ABS, backed in part by GPU loans
Wingspire Equipment Finance raised $407M in an equipment loan and lease ABS
Bankruptcy / Restructuring / Distressed
Electronic Arts bondholders alleged a $1.4B debt default, escalating a dispute over whether the firm must pay them off at a premium after its record $55B LBO
UK telecom BT Group acquired troubled rival TalkTalk from administration for $530M
BC Partners Credit made an initial committed investment in Saudi's PGA rival LIV Golf and plans to provide $300M in financing to help the league emerge from Chapter 11 bankruptcy
L'Oreal engaged restructuring advisors to explore options for rising US legal liabilities linked to talc
Funds / Secondaries
Audax Private Debt raised $10B for its third direct lending fund
Franchise investment specialist Princeton Equity Group raised $1.3B for its third fund
Niobrara Capital Partners, the new MM PE firm of ex-Secretary of State Mike Pompeo, raised $1.1B for its debut fund to invest in B2B technology and tech-enabled services
Real estate investment firm Stonelake Capital Partners raised over $1B for its eighth flagship industrials-focused fund
Stride Consumer Partners raised over $550M for its second growth equity fund
European VC Headline raised $400M for its eighth European fund to double down on AI
DIG Ventures raised $120M for its third fund to target European AI infrastructure startups
Crypto Sum Snapshot
OKX-ICE JV files with SEC to launch tokenized trading platform
CFTC proposed new federal crypto oversight rules
Crypto elite gather in Singapore as Bitcoin's rally buoys bulls
Crypto Sum compiles the most important stories on everything crypto. Read it here.
Exec’s Picks
If you're sourcing early stage, one of the best signals is a founder announcing a raise on LinkedIn or X, weeks before it's written up anywhere. Fundable catches those within the hour, so you can get to the company while there's still room for a follow-on. A must-use for VCs and founders. tryfundable.ai
Bubble or not. The real risk lies in our inability to grasp the scale of the AI boom in the first place. Check out what Ben Carlson has to say.
Financial Services Recruiting 💼
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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.