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Good Morning,

President Gay is out at Harvard, stocks and bonds dropped for a tough start to 2024, Apple shares fell on a Barclays downgrade, India proposed tighter rules for dividend payouts, Manhattan home prices rose, and Trump asked Maine to reverse his state ballot ban.

Looking to kick off 2024 by learning a new language? Check out today’s sponsor, Babbel, to get started today.

Let’s dive in.

Before The Bell

Markets

• US stocks mostly fell on their first trading day of 2024 

  • The Nasdaq fell 1.63%, while the Dow rose 0.07%

• Asian stocks mostly fell, led by Chinese stocks, as Chinese manufacturing activity contracted further in December 2023 

Earnings

• What we're watching this week:  

  • Thursday: Walgreens Boots Alliance

  • Friday: Constellation Brands

• Full calendar here

Headline Roundup

• Stocks, bonds drop in tandem for worst start to year in decades (BBG)

• Harvard President Gay resigns after plagiarism allegations, campus antisemitism backlash (WSJ)

• Apple shares fell 4% after Barclays downgrade (CNBC)

• Citigroup shares to double over next three years, Mayo says (BBG)

• India proposes tighter rules for dividend payouts by lenders (BBG)

• Manhattan home prices rise in early sign of a market rebound (BBG)

• Tech’s AI hangover might just be getting started (WSJ)

• Runway safety concerns in focus as Japan probes Tokyo crash (RT)

• China removes official after video games rules spark turmoil (RT)

• Lazard hires former Onex, Rothschild restructuring bankers in revenue push (BBG)

• Donald Trump asked Maine court to reverse state’s ballot ban (WSJ)

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Deal Flow

M&A / Investments

• Spanish energy company Iberdrola called off its $4.3B acquisition of New Mexico-based PNM Resources after failing to receive regulator approval by Dec. 31 (BBG) 

• Baidu’s $3.6B deal to acquire Joyy’s Chinese live-streaming business YY expired 3 years after being unveiled after failing to receive regulator approval by Dec. 31 (BBG) 

• PGT Innovations received an unsolicited offer from Miter Brands that values the doormaker at ~$3.1B; PGT agreed to a $3B cash-and-stock deal with Masonite International last month (RT) 

• Industrial products manufacturer Myers Industries will acquire ground protection solutions provider Signature Systems for ~$350M (BW) 

• PE firm Platinum Equity will acquire French food group Danone’s premium organic dairy units in the US (RT) 

• Dish Network and EchoStar completed their merger, reuniting Charlie Ergen’s satellite empire (BBG

• Chinese privately-controlled refiner Rongsheng Petrochemical and Saudi Arabia’s Aramco are in talks to acquire 50% stakes in each other’s units, SASREF and Ningbo Zhongjin Petrochemical (RT)

VC

• Beijing-based intelligent equipment provider JJC TEC raised a ~$90M Series E led by SDIC Fund and Seekers Capital (FN)

• Brazilian global açaí brand Oakberry raised a $67M Series C led by BTG Pactual (FN)

• Apollo Therapeutics, a portfolio biopharmaceutical company focused on translating medical research into medicines, raised a $33.5M Series C led by Patient Square Capital (BW)

• CardioMech, a startup developing a transfemoral, transseptally delivered mitral valve chordal repair technology, raised a $13M round led by an undisclosed strategic investor (PRN)

• CESS, a startup building a blockchain-powered decentralized storage and CDN infrastructure, raised an $8M Series A led by HTX Venture, Infinity Ventures Crypto, and more (FN)

• Intrinsic, a startup building AI systems for trust and safety teams, raised a $3.1M seed round from Y Combinator, 645 Ventures, and others (FN)

• Scottish all-electric 4×4 vehicle manufacturer Munro raised $1M in follow-on funding led by Elbow Beach Capital (FN)

IPO / Direct Listings / Issuances / Block Trades

• KKR-backed BrightSpring Health Services, a home and community-based healthcare services provider, filed for an IPO and is seeking to raise a rumored $1B (BBG) 

Bankruptcy / Restructuring

• British EV startup Arrival missed a Dec. 1 deadline to make an interest payment on its convertible debt due 2026 due to a cash crunch (RT) 

Fundraising

• Lower-middle market PE investor NewSpring raised over $180M for its fourth growth equity healthcare fund, NewSpring Health Capital IV (FN) 

Crypto Corner

• CBOE Digital sees Bitcoin ETFs attracting new institutional investors, including pension funds (BBG) 

• CleanSpark, one of the largest US public Bitcoin mining companies, plans to launch an in-house trading desk (BBG) 

Exec’s Picks

• Venture capitalist Tomasz Tunguz shared nine predictions for the venture capital market in 2024.

• Drew Dickson explained how growth stocks have outperformed value in all geographies over the last decade.

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