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Wall Street banks reported a jump in dealmaking, Indian equity issuances hit a record high, investors are looking to UK markets as a safe haven, and markets are betting on a Trump re-election after he survived a shocking assassination attempt.

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Good Morning,

Wall Street banks reported a jump in dealmaking, Indian equity issuances hit a record high, investors are looking to UK markets as a safe haven, and markets are betting on a Trump re-election after he survived a shocking assassination attempt.

Invest in private market investments alongside Wall Street veterans with today's sponsor, 10 East.

Let's dive in.

Before The Bell

As of 07/12/2024 market close.

Markets

  • US stocks rose on Friday on growing optimism for Fed rate cuts 

    • Russell 2000 had its best week since November 

    • Dow closed at an ATH

  • Europe's Stoxx 600 had its best week in two months

  • Yen hit a four-week high versus the dollar 

Earnings

  • JPMorgan beat Q2 estimates on record profit and revenues driven by a 52% surge in IB fees and 10% jump in trading revenue (CNBC

  • Citigroup topped Q2 earnings and revenue estimates on a 37% rise in equities trading revenue and 60% rise in IB revenue (CNBC) 

  • Wells Fargo shares fell ~6% despite beating Q2 analyst estimates as a 9% drop in net interest income offset a 38% surge in IB revenue (CNBC

  • What we're watching this week:  

    • Today: Goldman Sachs, BlackRock

    • Tuesday: Bank of America, Morgan Stanley, UnitedHealth Group

    • Wednesday: ASML, United Airlines, Johnson & Johnson

    • Thursday: TSMC, Netflix, Domino's

    • Friday: American Express 

  • Full calendar here

Headline Roundup

  • US consumer sentiment fell to an eight-month low (BBG)

  • M&A volumes hit $1.6T in H1 (RT)

  • Indian equity issuances hit a record-high $28B in H1 (FT)

  • Credit-equities correlations are breaking down (BBG)

  • Emerging market capital inflows recovered to 2018 levels (RT)

  • Shunned UK markets emerge as haven from global storms (RT)

  • Investors raise bets on Trump victory after assassination attempt (BBG)

  • Bond funds saw inflows for a twenty-ninth straight week (RT)

  • US equity funds see first weekly outflow in three on earnings caution (RT)

  • Investors pile into platinum funds on hybrid vehicles bet (FT)

  • China accused Chinese treasury investors of shorting the economy (RT)

  • Argentina will sell dollars on parallel FX to combat inflation (RT)

  • Goldman appealed Fed's demand for it to hold more capital (FT)

  • US office delinquencies ticked higher in June (RT)

  • OpenAI whistleblowers asked SEC to investigate their NDAs (RT)

  • World Bank is prepping a lifeline for Pacific Island nations amid bank exodus (RT)

  • Kuwait made a 'huge' oil and gas discovery (BBG)

  • Hackers stole call and text data from nearly all AT&T customers (WSJ)

  • Trump survived an assassination attempt (AP)

A Message From 10 East

Where Sophisticated Investors Access Private Markets

10 East is a co-investment platform where sophisticated investors access private market investments alongside a veteran team with a 12+ year track record of strong performance across over 350 transactions. The firm is led by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner.

Members have the flexibility to participate on a deal-by-deal basis across private equity, credit, real estate, and venture capital.

Benefits of 10 East membership include:  

  • Flexibility – members have full discretion over whether to invest on an offering-by-offering basis. 

  • Alignment – principals commit material personal capital to every offering.  

  • Institutional resources – a dedicated investment team that sources and diligences each offering.

There are no upfront costs or commitments associated with joining 10 East.

Exec Sum readers can join 10 East with complimentary access here.

Deal Flow

M&A / Investments

  • US grains merchant Bunge and Glencore-backed Viterra offered to divest some European assets for EU approval of their $34B merger (RT

  • Mining giant Rio Tinto is studying potential bids for companies including Teck Resources, which has a ~$26.3B market cap (BBG

  • Alphabet is in advanced talks to acquire cybersecurity startup Wiz for ~$23B (WSJ

  • GIP and Stonepeak are among bidders for Singapore Power's 40% stake in Australian energy group Jemena, which could fetch an over $10B valuation (RT

  • PE firm Cinven's $3.3B sale of German life insurance consolidator Viridium attracted early interest from suitors including Apollo affiliate Athora and Blackstone-backed Resolution Life (BBG

  • Canada's Lundin Mining and mining giant BHP are considering a potential joint bid for Canada-listed miner Filo Corp, which has a ~$2.7B market cap (RT

  • China Merchants Capital and PE firms including KKR are considering bids for pallet maker Loscam Asia Pacific, which could fetch up to $2.5B (BBG

  • Global data center operator Equinix is considering a minority stake sale in its Hong Kong facilities for ~$2B (RT

  • Vista Equity Partners is exploring a sale of cybersecurity firm Sonatype for over $1.5B, including debt (RT

  • Qingdao Port International agreed to acquire oil and energy assets from Rizhao Port and Yantai Port for $1.3B (RT)

VC

  • Earned Wealth, a wealth tech startup for doctors, raised a $200M round led by Summit Partners and Silversmith Capital Partners (BBG)

  • F1 Arcade, a F1 experiential hospitality brand, raised a $130M growth round from Liberty Media, Permira Credit, and more (FN)

  • HERO Software, a startup helping small tradespeople fight the climate crisis, raised a $47M Series B led by Eight Roads Ventures (TC)

  • Italian mobility startup LimoLane raised $38M in funding led by Cherry Bay Capital (EU)

  • EV maker Helixx raised a $20M Series A at a $100M valuation (TC)

  • Miridih, a Korean design platform, raised a $15M Series B at a $215M valuation led by Kiwoom PE, Industrial Bank of Korea, and more (PRN)

  • Tread.fi, a HFT infrastructure company for crypto firms, raised a $3.5M pre-seed round led by New Form Capital (FN)

IPO / Direct Listings / Issuances / Block Trades

  • Meats brand Smithfield Foods selected Bank of America, Goldman Sachs, and Morgan Stanley for a potential $1B IPO raise (BBG

  • US ticket resale platform StubHub will postpone its US IPO until at least Q3 due to unfavorable market conditions (BBG

SPAC

  • Hydrogen energy firm Huture will merge with Aquaron Acquisition Corp. in a $1B deal (RT

Debt

  • Banks including Goldman Sachs and Morgan Stanley are lining up $6.5B of debt financing for potential buyers of Sanofi's consumer health division (BBG

Fundraising

  • CATL, the world’s largest maker of EV batteries, is seeking to raise a $1.5B fund to build out its global supply chain (FT) 

  • Asian investment firm PAG raised ~$413M for its first yuan-denominated fund and is considering raising another $1B from non-NAM foreign LPs (BBG

Crypto Corner

  • Suspicious wallets have distributed over $100B in illicit crypto funds since 2019 (BBG

  • Germany offloaded its final Bitcoin holdings (CT)

Exec’s Picks

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