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Good Morning,

Bill Ackman plans to IPO his hedge fund, a Tesla shareholder sued Musk for insider trading, investors can't get enough of corporate bonds, TikTok is going all in on US e-commerce, and more asset managers are turning to AI for investment decisions.

With yet another misguided banking policy being pushed in Congress, The Points Guy explains why your credit card rewards and points are at threat of further decimation. Read more below.

Let’s dive in.

Before The Bell

Markets

• US stocks rose to end the week and month as inflation data came in as expected

  • All three major US indexes posted a sixth winning month in seven

  • The S&P and Nasdaq snapped five-week win streaks

  • The Dow had its best day YTD

Earnings

• What we're watching this week:  

  • Tuesday: CrowdStrike

  • Wednesday: Victoria's Secret, lululemon, Dollar Tree

  • Thursday: DocuSign, Nio

• Full calendar here

Headline Roundup

• Old-fashioned networking is back (WSJ)

• Elon Musk and Jamie Dimon are making peace (WSJ)

• US O&G M&A hit ~$200B in the past year (FT)

• London stock market bucks IPO drought with rush of FPOs (FT)

• Stock buybacks in May was the fifth-most ever (BBG)

• Corporate bond funds see seven-straight months of inflows, longest since 2019 (RT)

• Vista Equity wrote off entire PluralSight equity, three years after $3.5B LBO (AX)

• Latest $350B Nvidia rally attributed to options 'gamma squeeze' (FT)

• Facebook is attracting most young adults in three years (RT)

• Tesla shareholder sues Musk for alleged $7.5B insider trading (RT)

• Emirates president sees years for Boeing turnaround (BBG)

• OPEC+ agreed to extend production cuts in bid to boost oil prices (WSJ)

• AI is increasingly being used for investment decisions (FT)

• Boom in US penny stock trading prompts warnings of frothy markets (FT)

• Fed-favorite PCE index rose 2.7% YoY in April (RT)

• Wall Street trade failure rate rise in third day of faster settlement (RT)

• Japan’s $62B support for yen provides little reprieve (FT)

• Nvidia will roll out its next-gen AI chip platform in 2026 (RT)

• TikTok pauses e-commerce push into Europe to focus on US (BBG)

• Carl Icahn built a sizable stake in Caesars Entertainment (BBG)

• Dr Pepper ties Pepsi as America's No. 2 soda (WSJ)

• Australia home prices continue to climb, Sydney back at record high (RT)

A Message From The Points Guy

The Durbin Amendment of 2010 virtually wiped out debit card rewards overnight...and a perpetually misguided Congress is pushing repeat legislation to now encroach on your credit card points and rewards. 

Under the guise of competition, the Credit Card Competition Act will allow corporate megastores to process your spending on cheaper payment networks, which could eliminate incentive for your favorite credit card issuers to reward your spending with points.

A slew of research shows similar legislation in the Durbin Amendment not only failed to reduce debit card swipe fees, but effectively ended the means by which banks would reward our debit spends with points.

And with repeat legislation being pushed again, the CCCA all but guarantees retailers to now also pocket your credit card swipe fees, and eliminate the benefits associated with your favorite credit cards...

...practically carving you out of your preferred network to earn you: 

• Fewer points 🔻

• Higher fees 📈

• Fewer rewards 🔻

Find out why the CCCA is a recipe for fewer points, higher fees, and fewer rewards and what you can do to protect your points.

Deal Flow

M&A / Investments

• Skydance Media revised its offer for $8.3B Paramount Global to buy a certain number of non-voting Paramount shares at $15, a ~26% premium to Friday’s close (WSJ) 

• Japanese whiskey-maker Suntory is in talks to acquire $3.8B Boston Beer (WSJ) 

• UK will probe Nationwide Building Society’s $3.7B deal to buy online banking company Virgin Money UK (BBG) 

• Blackstone agreed to buy a 55.1% stake in Japanese e-comics provider Infocom from Teijin for $1.7B (BBG) 

• Global insurer MetLife is pursuing an acquisition of direct lender Hayfin Capital Management at a potential $1.3B valuation (BBG) 

• $1B-listed members club Soho House rejected an acquisition offer at a ‘substantial premium' (BBG) 

• China-focused investment firm IDG Capital is exploring a buyout of $435M Hong Kong broadband firm HKBN (BBG) 

• Stablecoin issuer Tether Holdings acquired a $100M stake in US-listed Bitcoin miner Bitdeer Technologies Group (BBG) 

• Investment firm 777 Partners' deal to buy EvertonFC from British-Iranian owner Farhad Moshiri collapsed (FT)

VC

• ARPA Network, a startup specializing in decentralized secure computation, raised $6M in funding led by Laser Digital and DeFiance Capital (FN)

• AI-powered MR publishing platform Flam raised a $4.5M pre-Series A co-led by Turbostart, Twin Ventures, and Alphatron Capital (BW)

• Nigerian digital identity solutions provider Seamfix raised a $4.5M round led by Alitheia IDF (FN)

IPO / Direct Listings / Issuances / Block Trades

• Chinese online fashion firm Shein is preparing to file a London IPO prospectus that could value the firm at ~$63.7B (RT) 

• Pharma giant Sanofi is planning a spinoff of its $22B consumer division in what could be Europe's biggest sale or IPO this year (FT) 

• State-owned oil company Saudi Aramco’s $12B share sale sold out within hours (BBG) 

• Bill Ackman plans to IPO Pershing Square and will sell a 10% stake at a $10.5B valuation prior (CNBC) 

• Australian fast food chain Guzman y Gomez is seeking to raise $161M at a ~$1.5B valuation in a June IPO at (RT) 

• Online comics operator Webtoon Entertainment filed for a US IPO (BBG) 

SPAC

• E-commerce firm Btab Ecommerce will merge with Integrated Wellness Acquisition Corp. in a $250M deal (GNW) 

Bankruptcy / Restructuring / Distressed

• JPMorgan is in talks to arrange a ~$1.1B loan for Unicorn Bay, a JV between defaulted Chinese developers Logan and KWG (BBG) 

Fundraising

• Opportunistic real estate investment firm Town Lane closed its debut fun at $1.25B (BW) 

Crypto Corner

• Biden vetoed Congress' crypto bill overturning SEC guidance (BBG) 

Exec’s Picks

• With shareholders set to vote on Musk’s $56B pay package, Reuters published a list on notable CEO pay battles globally.

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