- Exec Sum
- RIP Drizly
Japan’s market has been doing well, Uber is closing Drizly, China’s population dropped for a second year, the bill for a record amount of commercial real estate debt is coming due, emerging markets are off to their worst start since 2016, and JPMorgan has to pay an $18M fine for whistleblower protection violations.
A federal judge blocked JetBlue’s Spirit acquisition, Japan’s market has been doing well, Uber is closing Drizly, China’s population dropped for a second year, the bill for a record amount of commercial real estate debt is coming due, emerging markets are off to their worst start since 2016, and JPMorgan has to pay an $18M fine for whistleblower protection violations.
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Let’s dive in.
Before The Bell
As of 1/16/2024 market close.
US stocks fell as bond yields ticked higher and investors digested corporate earnings
The Dow led indices with a 0.62% decline
Asian stocks mostly fell, led by Hong Kong’s HSI, ahead of China’s release of 2023 economic data; China’s GDP grew 5.2% in 2023
Goldman Sachs reported better-than-expected Q4 results thanks to higher-than-expected asset and wealth management revenue (CNBC)
Morgan Stanley shares fell ~4% despite beating revenue expectations thanks to strength in investment banking; its Q4 profit took a $535M hit due to two one-time regulatory charges (CNBC)
What we're watching this week:
Today: Charles Schwab, Discover, Prologis, Kinder Morgan
Thursday: TSMC, Truist
Friday: Ally Financial, State Street
Japan’s market roars back to life - with old-timers leading the way (BBG)
Rogoff sees six Fed rate cuts as ‘pipedream’ if economy holds up (BBG)
Uber is closing an alcohol-delivery business it bought for over $1B three years ago (WSJ)
ETFs make bitcoin’s problems even worse (WSJ)
China’s population drops for a 2nd year, raises long-term growth concerns (RT)
Walt Disney makes its case for rejecting activist shareholder (RT)
The bill is coming due on a record amount of commercial real estate debt (WSJ)
Emerging market assets extend worst start to year since 2016 (BBG)
Microsoft CEO Satya Nadella says consensus on AI is emerging (CNBC)
Wall Street’s cloudy quarter has some rays of sunshine (WSJ)
JPMorgan to pay $18M for whistleblower protection violations (WSJ)
OpenAI CEO, Time owner Benioff disagree on AI’s use of copyrighted content (BBG)
Natural-gas prices remain under pressure despite cold snap (WSJ)
Appeals court rejects X challenge to special counsel secret demand for Trump Twitter data (CNBC)
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M&A / Investments
Chip-design company Synopsys agreed to acquire software developer Ansys for ~$34B in cash and stock (BBG)
US investor General Atlantic will acquire London-based PE firm Actis, which has ~$12.5B AUM (BBG)
A federal judge blocked JetBlue Airway’s planned $3.8B acquisition of ultra-low-cost carrier Spirit Airlines due to competition concerns and harm to consumers; Spirit shares fell ~47% (RT)
Ardagh Group and Ontario Teachers’ Pension Plan Board, owners of Trivium Packaging, are exploring a sale of the company, which may fetch over $3.5B (BBG)
Shareholders in Heathrow Airport accounting for a 35% stake intend to sell their shares alongside Spanish firm Ferrovial, putting its $3B, 25% stake sale of Heathrow to PIF and Ardian into question (RT)
Italy asked for an additional review of ION Group’s $1.4B acquisition of alternative asset manager Prelios after deciding against using its special powers to block the deal (BBG)
A consortium of local Nigerian companies will acquire Shell’s Nigerian onshore oil business for over $1.3B (BBG)
Japanese financial conglomerate Orix is in discussions to buy renewable energy developers in the US and Europe; individual deals could top $1B (BBG)
Restaurant Brands International, the owner of Burger King, will acquire the fast food chain’s largest franchisee, Carrols Restaurant Group, for $1B; Carrols operates over 1,000 locations (BBG)
Singapore sovereign wealth fund GIC is considering selling The Hilton Fukuoka Sea Hawk hotel in western Japan, which has an asking price of $538M-$617M (BBG)
British Airways owner IAG expects EU antitrust regulators to open a full-scale investigation into its $436M plan to buy Spain's Air Europa and will offer remedies (RT)
German carrier Lufthansa’s bid for a minority stake in ITA Airways is set to face a full-scale EU competition inquiry (RT)
EV charging startup Electra raised a $330M Series B led by Dutch pension fund PGGM and Bpifrance’s Large Venture Fund (TC)
Quantinuum, a quantum computing company, raised $300M in equity from JPMorgan, Mitsui, Amgen, and Honeywell (PRN)
Counterparty and supply chain risk intelligence provider Sayari received a $228M strategic majority investment from TPG (BW)
Aira, a Stockholm-based provider of clean energy technology solutions, raised a $157M Series B led by Altor, Kinnevik, and Temasek (FN)
INERATEC, a startup producing e-fuel, raised a $129M Series B led by Piva Capital (PRN)
Noctrix Health, a startup developing a novel device treatment for Restless Legs Syndrome, raised a $40M Series C led by Sectoral Asset Management (PRN)
Onera Health, a startup providing sleep diagnostic and monitoring technology, raised a $32M Series C led by EQT Life Sciences and Gimv (TC)
On-street electric vehicle charging startup Trojan Energy raised a $33M round: $10.4M from BGF and $22.6M from the Scottish National Investment Bank (EU)
Panacea Financial, a fintech startup providing financial services for doctors, raised a $24.5M Series B from Valar Ventures (BW)
Weavix, a startup developing ‘smart’ radios for frontline workers, raised a $23.6M round led by Insight Partners (TC)
Disco Pharmaceuticals, a biotech company developing drugs in the field of cancer cells, raised a $21.8M seed round from backers including Sofinnova Partners, Panakes Partners, M Ventures, and AbbVie Ventures (FN)
ZymoChem, a startup building a carbon-efficient bio-manufacturing platform, raised a $21M Series A led by Breakout Ventures (PRN)
Nigerian neobank Kuda raised a $20M bridge round at a $500M valuation in 2023 (TC)
Car financing startup Carmoola raised $20M in funding from QED Investors, VentureFriends, InMotion Ventures and others (EU)
Hardware-as-a-service startup Xyte raised $20M in Series A funding led by Intel Capital and a $10M debt line from BlackRock (TC)
Passwordless enterprise authentication platform Secret Double Octopus raised a $15M Series C led by BGV (BW)
Granata Bio, a biopharma company focused on the infertility medication market, raised a $14M Series A led by GV (PRN)
Oxford Medical Simulation, a VR healthcare training startup, raised a $12.6M Series A led by Frog Capital (PRN)
IPO / Direct Listings / Issuances / Block Trades
Saudi Arabian online cosmetics retailer Nice One is planning a local IPO (BBG)
Dish Network parent EchoStar proposed swapping over $5B of debt due in the coming years for new 10% notes backed by DishTV subscribers (BBG)
Swedish battery manufacturer Northvolt raised $5B through debt financing from 23 banks as well as the European Investment Bank and the Nordic Investment Bank (FT)
The private-investing arm of insurer Thrivent Financial for Lutherans issued a $400M collateralized fund obligation to generate cash from its PE holdings yielding ~7.7% to holders (WSJ)
Bankruptcy / Restructuring
Crypto mining firm Core Scientific won court approval to exit bankruptcy and implement a restructuring plan to reduce $400M of debt and repay creditors thanks to a recovery in Bitcoin prices (BBG)
Enviva, the largest US wood pellet exporter, skipped a $24M payment due to its bondholders yesterday as it continues restructuring talks (WSJ)
Trussardi is nearing a deal to transfer the struggling fashion house to a new owner and sell off assets as part of a debt restructuring (BBG)
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