Markets Down Bad

Biden is considering a gas tax holiday before July 4th, Russia is now China's biggest oil supplier, McKinsey predicts $5T in metaverse spending by 2030, the Russian ruble is climbing, Apple is facing its first labor union, and SpaceX fired some employees who wrote a letter that criticized Elon Musk.

Litquidity Capital
June 21, 2022

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Good Morning,

Biden is considering a gas tax holiday before July 4th, Russia is now China's biggest oil supplier, McKinsey predicts $5T in metaverse spending by 2030, the Russian ruble is climbing, Apple is facing its first labor union, and SpaceX fired some employees who wrote a letter that criticized Elon Musk. 

Short week this week, hoping for a rebound in markets!

Let's dive in.

Before The Bell

As of 6/17/2022 market close.

If you want to learn more about crypto trading strategies and the world of DeFi, check out our Foot Guns newsletter.

Markets

  • Friday closed the market’s worst week since March 2020 
    • The S&P 500 and Dow fell 5.8% and 4.8% on the week, respectively
    • All 11 sectors within the S&P 500 have fallen at least 15% from their recent highs, with seven in bear market territory
  • International stocks rose broadly yesterday while US markets were closed for Juneteenth
  • Crypto bounced around over the weekend, with Bitcoin falling below $18k on Saturday before rebounding to hover around $20k

Earnings

  • What we’re watching this week: 
    • Tuesday: La-Z-Boy
    • Thursday: FedEx, Accenture, RiteAid
    • Friday: CarMax 
  • Full calendar here

Headline Roundup

  • Biden is considering a gas tax holiday ahead of the July 4th weekend (CNBC)
  • Russia surpassed Saudi Arabia as China's biggest oil supplier as May imports increased 55% YoY (RT)
  • Russian ruble hit a seven-year high versus the dollar on promises of upcoming month-end tax payments (RT)
  • McKinsey predicts that global spending related to the metaverse could exceed $5T by 2030 (WSJ)
  • Colombia elected Gustavo Petro to become the country's first leftist president (AXIOS)
  • Biden signed the Ocean Shipping Reform Act in a bid to ease inflation and supply chain backlogs (RT)
  • Apple workers in a Maryland store successfully voted to form a union, becoming the tech giant's first employees to do so (AXIOS
  • SpaceX fired employees who helped draft a letter criticizing Elon Musk's behavior (AXIOS)
  • Eleven US cities will host FIFA World Cup games in 2026 (AXIOS)
  • Matt Fitzpatrick claimed the USGA US Open title, Max Verstappen won the Canadian GP, and the Golden State Warriors won their seventh NBA Championship in a big weekend for sports (AP)

A Message From Stream RG

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Deal Flow

M&A / Investments

  • Italian energy company Eni will acquire a 3.1% stake in state-owned Qatar Energy's $29B liquefied natural gas project (BBG)
  • KKR, Global Infrastructure Partners and Stonepeak Partners have jointly made a binding offer for a controlling stake in Deutsche Telekom's $21B towers unit (BBG)
  • Mondelez International will acquire Clif Bar for ~$2.9B (WSJ)
  • Telecommunication company Quebecor reached a deal to acquire Shaw Communication's Freedom Mobile unit at a $2.2B valuation (BBG)
  • Champion Petfoods is exploring a sale of the company that could attract over $2B (BBG)
  • A private-equity consortium led by Astorg Asset Management and Epiris offered to buy financial media firm Euromoney Institutional Investor for ~$2B (BBG)
  • A UnitedHealth Group unit agreed to acquire UK health-technology company EMIS Group in an all-cash deal valued at $1.5B (BBG)
  • JAB agreed to acquire stakes in animal-insurance companies PetHealth and Crum & Forster for ~$1.4B (BBG)
  • Iraq-owned Basra Oil Company will acquire the largest share of Exxon's stake in the southern West Qurna-1 oilfield (BBG)
  • Crypto exchange giant FTX will acquire Canadian crypto trading platform Bitvo (BBG)
  • French banking group BNP Paribas is interested in acquiring Dutch-owned bank ABN Amro (BBG)
  • Denmark's Jyske Bank will buy the Danish unit of Swedish bank Handelsbanken (BBG)
  • German delivery startup Gorillas is working with JPMorgan to source a sale or possible mergers with rival companies (BBG)  
  • Miami-based investor John Textor is closing in on an agreement to buy a significant stake in French football club Olympique Lyonnais (BBG)
  • Payment fintech Paya Holdings is exploring a sale of the company amid takeover interest (BBG)

VC

  • NY-based mobile restaurant delivery service Wonder raised a $350M Series B at a $3.5B valuation led by Bain Capital Ventures (TC)
  • Online grocery delivery startup Rohlik raised a $231M Series D led by Sofina (TC)
  • Vendr, the world’s first SaaS buying platform, raised a $150M Series B led Craft Ventures and SoftBank Vision Fund 2 (BW)
  • Platform.sh, a company that provides cloud infrastructure services to app developers, raised a $140M Series D led by Digital Partners (TC)
  • Indian esports fantasy startup FanClash raised a $40M Series B led by Alpha Wave Global (TC)
  • Impulse Space, a developer of in-space transportation services for the inner solar system, raised $10M from Lux Capital (BW)
  • Plobal Apps, a no-code mobile app platform for e-commerce stores, raised an $8.5M Series A led by Elevation Capital and Bessemer Venture Partners (PRN)
  • Virtual kitchen and e-commerce platform Saltalk raised an $8M Series A led by Foothill Ventures (TC)
  • Wilco, an immersive upskilling platform for software developers, raised a $7M seed round led by Hetz Ventures (PRN)

IPO / Direct Listings / Issuances / Block Trades

  • Texas-based gas producer Aethon is considering an IPO at a ~$10B valuation (BBG)
  • Agrochemical company Syngenta Group is considering a 2022 Shanghai IPO that could value the company at $10B (BBG)
  • Manufacturing giant ABB is postponing the $750M IPO of its electric-car charging business amid the current market rout (BBG)
  • Ivanhoe Electric is looking to raise ~$180M through a potential IPO (BBG)

SPAC

  • Israel fintech Pagaya is expected to complete its $8B SPAC merger with EJF Acquisition this week (CT)

Crypto Corner

  • Crypto lender Celsius asked users for more time to fix issues after halting withdrawals (CNBC)
  • Crypto lender Babel Finance announced steps to ease the liquidity pressures its currently facing (TBC)
  • ProShares Short Bitcoin Strategy ($BITI), the first ETF designed to deliver the inverse of bitcoin’s performance, will begin trading on the NYSE on Tuesday (CD)

Exec's Picks

  • Since we’re all nauseous riding the market roller coaster, we continue to look for ways to diversify that sweet portfolio. Cadre is helping us do it with highly vetted commercial real estate investment opps (top shelf investing committee). Learn more about investing in commercial real estate here.
  • With stocks and cryptocurrencies in bear markets and layoffs piling up, it can feel like the world is coming to an end. In times like these, it's good to take a step back and recalibrate. Misha da Vinci has compiled a great thread of videos and podcasts to help you sharpen your mind, think clearly, and keep building. Check out her thread here.
  • Litquidity banker bags are finally here. Perfect for going to the gym, a quick weekend in the Hamptons, or lugging management presentations for a work trip.

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.
  • 💼 Today's highlighted job 💼
    • Liquidibee, a capital provider for businesses of all sizes, ranging from startups to established companies, is hiring an underwriting analyst. Responsibilities for this role include the analysis of financial documents such as credit reports and bank statements, detailed financial analysis to determine credit worthiness, and communication with ISOs, sales managers, and merchants. Think you're the perfect candidate? Apply here through our job board!

Meme Cleanser

Catch the latest episode of our Big Swinging Decks podcast, presented by CoinFLEX.US, on SpotifyApple, and YouTube 🤝 

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