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Good Morning,

SBF was arrested in The Bahamas (can he still do Twitter Spaces from jail?), inflation expectations have eased, Goldman will stop issuing unsecured consumer loans and is cutting hundreds of jobs, Credit Suisse's Greater China CEO is leaving the company, Bored Ape NFT holders are suing celebrity promoters, and Bernard Arnault is richer than Musk again.

Want to learn from Eden Global Partners and Solganick & Co about the strategies they’re using to maintain momentum in the M&A market throughout the end of 2022? Check out the webinar from today's sponsor, affinity.

Let's dive in.

Before The Bell

Markets

• US stock indexes rallied on Monday as investors looked forward to key inflation data today and the Fed's interest rate hike announcement tomorrow

  • JPMorgan's sales & trading desk is boldly forecasting the S&P 500 jumping as much as 10% if the annualized inflation print comes in at 6.9% or lower (nice)

  • A subdued CPI print would also justify the Fed's projected 50 bps rate hike tomorrow and shed light on whether markets can expect rate cuts in late 2023

• The dollar gained against most currencies

• Investors continue to monitor for market risks from rising Covid cases coming out of China as well as weighing the impact of Japan and the Netherlands agreeing to partially join the US in increasing controls over the export to China of advance machinery to make semiconductors

Earnings

• Oracle beat Q2 revenue estimates on strong cloud software business demand as companies move to hybrid working models; their stock rose ~3.5% yesterday (RT)

• What we're watching this week:

  • Wednesday: Lennar

  • Thursday: Adobe

  • Friday: Accenture

• Full calendar here

Headline Roundup

• Consumers inflation expectations for 2023 eased considerably (CNBC)

• ECB will raise scrutiny of banks' credit risk and funding in 2023 as recession looms (RT)

• Federal deficit widened to a record $249B last month (WSJ)

• Investors eye Portuguese 'golden visas' as authorities consider program's end (RT)

• Goldman Sachs will stop making unsecured consumer loans (RT)

• Goldman Sachs will cut hundreds more jobs as it continues to scale back its consumer banking unit (BBG)

• Morgan Stanley will slash 2022 banker bonuses in Asia by up to half (RT)

• Citigroup will cut as many as 50 bankers in EMEA region (RT)

• Credit Suisse's Greater China CEO will leave the bank (RT)

• Emma Tucker was named next editor-in-chief of Wall Street Journal (WSJ)

• Saudi Aramco is in talks with investors over a potential $110B gas project (BBG)

• Louis Vuitton founded Bernard Arnault overtook Musk to become world's richest man (CNBC)

• SCOTUS upheld California ban on flavored tobacco (CNBC)

A Message From Affinity

Source the Best Deals like Eden Global Partners and Solganick & Co

Volatile market conditions have forced both sides of M&A transactions to rethink their sourcing strategies.

Affinity hosted a webinar where they spoke to Eden Global Partners and Solganick & Co about the strategies they’re using to maintain momentum in the M&A market throughout the end of 2022—and how they’re planning to source the best deals into 2023 and beyond.

Check it out

Deal Flow

M&A / Investments

• US biotech Amgen agreed to buy Horizon Therapeutics in a $27.8B deal (RT)

• Industrial enzyme maker Novozymes agreed to buy Danish peer Chr. Hansen for ~$12.3B (BBG)

• Thoma Bravo agreed to buy Coupa Software for $6.2B after outbidding Vista Equity Partners (BBG)

• Rental apartment-focused REIT Veris Residential rejected an unsolicited $4.7B bid from real estate developer Kushner Cos, saying it was too low and lacks financing (RT)

• BDT Capital Partners agreed to buy, and take private, grill maker Weber in a $3.7B deal (RT)

• Microsoft agreed to buy a 4% stake in the London Stock Exchange for $2B (RT)

• Insight Partners is exploring the sale of Community Brands, which makes software used for donations and peer-to-peer fundraising, among other purposes, that could fetch up to $2B (BBG) 

• Industrial technologies company Trimble agreed to buy German logistics software company Transporeon in a $1.98B deal (RT)

• Indian conglomerate Dalmia Bharat will acquire the cement and power businesses of Jaiprakash Associates for $686.7M, including debt (RT)

• Saudi Arabia’s Public Investment Fund is in advanced talks to buy Egypt’s state-owned United Bank in a potential $600M deal (BBG)

• Building materials distributor Stark Group agreed to buy UK building supplies merchant Jewson and other brands from manufacturing company Saint-Gobain for ~$576.5M (BBG)

• Car dealership company AutoNation agreed to buy mobile car-repair startup RepairSmith for $190M (BBG)

• Gordon Rubenstein, the head of Raine Group’s VC arm, agreed to join US digital entrepreneur John Textor in his planned purchase of French soccer club Olympique Lyonnais (BBG)

• Ray Dalio and Hollywood film-maker James Cameron bought an equity stake in Triton Submarines, a Florida-based company that specializes in submersibles for the super-rich (FT)

VC

• Hong Kong billionaire Richard Li is considering investing $200M in his insurance company FWD Group as part of a funding round, ahead of its IPO (BBG)

• Snyk, a developer-first software security startup, raised a $196.5M round at a $7.4B valuation from Evolution Equity Partners, G Squared, Irving Investors, Qatar Investment Authority, and more (TC)

• Plant-based food tech startup NotCo raised $70M in funding at a $1.5B valuation led by Princeville Capital (BW)

• Equinom, a startup breeding new non-GMO varieties of the plant-based food industry’s primary source crops, raised $35M in funding from Synthesis Capital (BW)

• Nillion, a startup building non blockchain-based web3 infrastructure, raised a $20M+ round led by Distributed Global (TC)

• Robco, a Munich-based startup building a platform to design low-cost modular robots for SMBs, raised a $13.8M Series A led by Sequoia (TC)

• ArkeaBio, a startup developing a vaccine to reduce methane emissions from animals, raised a $12M seed round led by Breakthrough Energy Ventures (PRN)

IPO / Direct Listings / Issuances / Block Trades

• Americana Restaurants, the Middle Eastern operator of KFC and Pizza Hut outlets, climbed 13% and 6.7% in Abu Dhabi and Riyadh respectively in its first day trading after a $1.8B dual listing (BBG)

• SpaceX is offering to sell at $77 apiece in a tender offer, which would imply a $140B valuation (BBG)

Debt

• Biotech Amgen secured a $28.5B bridge loan to fund its purchase of Horizon Therapeutics (BBG)

• Commodity trading house Mercuria closed a multi-year $3.4B loan facility for its North America operations (RT)

• Sixth Street Partners is leading a large group of direct lenders for a $2.6B loan to help finance Thoma Bravo’s purchase of Coupa Software (BBG)

Crypto Corner

• FTX’s Sam Bankman-Fried was arrested in the Bahamas (NYT)

• Binance endured $902M of net outflows in the past 24 hours, as concerns about its reserve report spook traders (CD)

• Bored Ape NFT holders are suing Bieber, Madonna and other celebrity promoters (BBG)

• DoJ is split over charging Binance for possible money laundering and criminal sanctions violations (RT)

• Chinese police arrested a group of 63 people for laundering $1.7B in crypto (DC)

• Crypto-fugitive Do Kwon is reportedly hiding in Serbia, according to South Korean officials (BBC)

• SBF declined to testify before Senate Banking Committee and refused to accept a subpoena (AX)

Exec's Picks

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• In another weird twist to the FTX saga, an Australian Financial Review article discusses how FTX's inner circle had a private group chat called "Wirefraud," where they discussed private operations in the lead up to the company's failure.

The Hiring Block 💼

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We aim to curate jobs across IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We'll sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're a company looking to hire candidates and want to list a job opening on our board and feature on Exec Sum, click the button below:

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