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Nvidia Earnings On Deck
Markets are preparing for Nvidia’s blockbuster earnings today, Amazon is joining the Dow Jones index, Musk’s Neuralink seems to be working, the Conference Board abandoned a US recession forecast, US asset managers are readying for a China recovery, and FuboTV is suing US media giants over competition concerns.
Together with
Good Morning,
Markets are preparing for Nvidia’s blockbuster earnings today, Amazon is joining the Dow Jones index, Musk’s Neuralink seems to be working, the Conference Board abandoned a US recession forecast, US asset managers are readying for a China recovery, and FuboTV is suing US media giants over competition concerns.
Skeptical of relying purely on credit scores for lending decisions? You’re not alone. Check out Plaid’s Future Of Lending Report here.
Let’s dive in.
Before The Bell
As of 2/20/2024 market close.
Markets
US stocks fell yesterday as Nvidia led a broader tech decline ahead of the chipmaker’s earnings report
Europe's Stoxx 600 hit a two-year high, while French and German shares pulled back from all-time highs
Chinese stocks rose slightly in response to an aggressive cut to its benchmark lending rate from China’s central bank
Earnings
Walmart shares rose ~3% after beating Q4 earnings and revenue estimates and reporting strong e-commerce growth (CNBC)
Palo Alto Networks shares plunged ~21% AH despite beating Q2 earnings and revenue estimates due to cutting its FY guidance for revenue and billings (CNBC)
What we're watching this week:
Today: Nvidia, Rivian, Etsy, Wingstop
Thursday: Block, Moderna, Carvana, Intuit
Friday: Warner Bros. Discovery
Full calendar here
Headline Roundup
US asset managers ready for China recovery with products stacked up (RT)
Conference Board gives up on US recession call (RT)
Canada's inflation dipped below 3% for first time since June 2023 (RT)
Citigroup raised CEO Jane Fraser's 2023 pay by 6% to $26M (RT)
Toyota faces crackdown for engine emissions cheating (RT)
Japan bets $67B to become a global chip powerhouse once again (BBG)
Elon Musk says Neuralink is working (CNBC)
Amazon will replace Walgreens in the Dow Jones Industrial Average (RT)
Macy's is facing a board challenge from activist investor Arkhouse (RT)
The SEC accused a biotech executive of insider trading for buying a rival's stock (WSJ)
Megaprojects in the desert sap Saudi Arabia’s cash (WSJ)
Ford cuts prices of electric Mustang Mach-E by up to $8.1k (CNBC)
Mizuho taps Credit Suisse Israel Investment Banking head (BBG)
FuboTV sues Disney, Fox, Warner Bros. over sports JV (CNBC)
Goldman’s O’Connor joins ETF manager Global X as CEO (BBG)
A Message From Plaid
Why Cash (Flow Data) Is King
Consumer lending used to be about three things: Credit score, credit score, credit score.
If you see the issue there, you’re not alone. While credit scores have been (and will continue to be) an important risk indicator, they don’t tell the whole story…
Considered by many to be the missing puzzle piece of lending, cash flow data uses a borrower's bank account data on income and expenses to assess their ability to pay back financial obligations. To paint the full picture on the topic, Plaid gathered 400 industry experts and 2,000 borrowers to share their thoughts on this data source.
In this free report, Plaid unpacks everything you need to know about cash flow data, how the industry is changing, and what that means for lenders and consumers alike.
Deal Flow
M&A / Investments
The FTC and a group of states plan to sue to block Kroger’s $24.6B acquisition of Albertsons (BBG)
Spain's MasMovil and French mobile operator Orange secured EU antitrust approval for the $20B merger of their Spanish businesses (RT)
Buyout firms including Blackstone, Advent, CVC, and Bain Capital are interested in the ~$20B consumer health division of French pharmaceutical giant Sanofi ahead of a potential separation of the business (BBG)
Occidental Petroleum is exploring a ~$20B sale of natural gas-focused pipeline operator Western Midstream Partners (RT)
An investor group led by PE firms Stone Point and CD&R will acquire Truist Financial's remaining stake in its insurance brokerage business Truist Insurance in a $15.5B deal (RT)
ANZ Group Holdings’ $3.2B purchase of Suncorp’s banking business won approval from Australian authorities after a previous decision to block the deal (RT)
Walmart agreed to acquire TV maker Vizio for $2.3B to grow its high-profit ad business (CNBC)
PE firm Bernhard Capital Partners will acquire CenterPoint Energy’s natural gas assets in Louisiana and Mississippi for $1.2B (RT)
Australia's mining chemicals maker Orica will acquire US-based sodium cyanide manufacturer Cyanco Intermediate 4 for $640M (RT)
S&P Global will acquire research platform Visible Alpha from a consortium of investment banks for over $500M (BBG)
Indian e-commerce giant Flipkart held discussions to potentially acquire Dunzo, a hyperlocal delivery startup backed by Reliance Retail (TC)
Universal Music Group is acquiring a 25.8% stake in Chord Music Partners from KKR for $240M (BBG)
Struggling database company MariaDB could be taken private in $37M deal, fourteen months after it listed via SPAC (TC)
SWFs including Mubadala, QIA and China Investment Corp. are in talks to jointly invest in McDonald’s China business (BBG)
VC
Ascend Elements, a provider of sustainable closed loop battery materials solutions, raised $162M in funding led by Just Climate, Clearvision Ventures, and IRONGREY (FN)
Recogni, an AI-based computing startup, raised a $102M Series C co-led by Celesta Capital and GreatPoint Ventures (PRN)
Planity, a French startup building a SaaS product for hair salons, raised a $48M Series C led by InfraVia Capital Partners (TC)
Reprieve Cardiovascular, a startup aiming to improve fluid management for heart failure patients, raised a $42M Series A led by Lightstone Ventures and Sante Ventures (BW)
Bioptimus, a startup building a foundational AI model focused on biology, raised a $35M seed round led by Sofinnova Partners (TC)
Cagent Vascular, a medical device company focused on peripheral artery disease, raised a $30M Series C led by US Venture Partners (BW)
Oula, a modern maternity care clinic combining midwifery and obstetrics, raised a $28M Series B led by Revolution Ventures and Maverick Ventures (PRN)
Niron Magnetics, a startup building high-performance, rare-earth free permanent magnets, raised a $25M round led by Samsung Ventures (BW)
AtmosZero, a startup looking to decarbonize steam, raised a $21M Series A led by Engine Ventures and 2150 (BW)
AZmed, a Paris-based startup providing AI-powered radiology software, raised a $16.4M round led by Maison Worms, Techstars, and Teampact Ventures (FN)
DNA-based soil intelligence startup Trace Genomics raised a $10.5M Series B led by S2G Ventures and Ajax Strategies (PRN)
Cross-border trade startup OpenBorder raised a $10M seed round led by Peak XV Partners (TC)
Techtaka, a South Korean online shopping fulfillment startup, raised a $9.5M Series B from Altos Ventures (TC)
Virtual cardiometabolic care clinic 9amHealth raised a $9.5M Series A extension led by Cigna Group Ventures (PRN)
UK-based biotech IsomAb raised a $9.4M seed round led by Broadview Ventures (PRN)
MIP Discovery, a startup developing non-biological affinity reagents for cell and gene therapies, raised a $9.3M Series A led by Mercia Ventures (FN)
Music tech startup EngineEars raised a $7.5M seed round led by Drive Capital (FN)
Altavo, an AI-based voice rehabilitation company, raised a $5.5M Series A led by Occident (FN)
B2B retail marketplace PriyoShop raised a $5M pre-seed round led by Century Oak Ventures (FN)
WIVI Vision, a startup improving visual efficiency and treating visual dysfunctions, raised a $4.4M round led by Adara Ventures (FN)
IPO / Direct Listings / Issuances / Block Trades
Malaysian energy infrastructure firm Yinson Holdings is considering raising ~$1B in a funding round for its floating production, storage and offloading unit before a US IPO (BBG)
Shares of Mexican soccer and gambling business Ollamani surged to a $252M market cap following its spinoff from pay TV operator Grupo Televisa (BBG)
Debt
Verizon Communications is raising $1B from the green-bond market for the sixth time since 2019 (BBG)
Bankruptcy / Restructuring
Radio and podcast company Audacy received court approval to emerge from bankruptcy, slash ~$1.7B of debt, and hand ownership to creditors including Soros Fund Management (BBG)
Fundraising
Brookfield Asset Management is weighing a sixth infrastructure fund just two months after closing its last infrastructure fund at a record $30B (BBG)
Media advisory firm LionTree raised over $1B for a fund investing in media, entertainment, tech and gaming (AX)
Web3 VC Hack VC raised $150M for a fund dedicated to the digital asset industry (BBG)
Crypto Corner
Exec’s Picks
Bloomberg published their big take on the rivalry between the two remaining Rothschild banks.
Bloomberg also briefly explained why China property giant Evergrande is facing liquidation.
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