Swedish Flash Crash

Citi's London trading desk caused a Swedish stock flash crash, stocks rebounded to close green yesterday, Berkshire bought a big Activision stake, the 10Y yield hit 3%, Amazon defeated the latest worker unionization effort, and Grindr sold user data.

Litquidity Capital
May 03, 2022

Together with

Good Morning,

Citi's London trading desk caused a Swedish stock flash crash, stocks rebounded to close green yesterday, Berkshire bought a big Activision stake, the 10Y yield hit 3%, Amazon defeated the latest worker unionization effort, and Grindr sold user data.

ICYMI: The Supreme Court has voted to overturn abortion rights, according to a leaked initial draft majority opinion written by Justice Samuel Alito.

Let's dive in.

Before The Bell

As of 5/2/2022 market close.

Markets

  • US stocks hit a late rebound yesterday, with all three major averages closing up after the S&P 500 and Nasdaq hit new lows for the year earlier in the session
    • It appears that some investors have started to buy the dip, believing that the market has overreacted to the fear of an economic slowdown
    • Big tech led the rebound with Netflix and Meta jumping 4.8% and 5.3%, respectively
  • The 10Y Treasury hit 3% for the first time since late 2018 in response to the continued threat of rising rates

Earnings

  • Chegg reported better-than-expected income and EPS numbers but fell after cutting their FY guidance (BW)
  • What we’re watching today: Pfizer, BP, Hilton, Airbnb, Starbucks, Lyft
  • Full calendar here

Headline Roundup

  • Supreme Court has voted to overturn abortion rights, draft opinion shows (POL)
  • Powell’s Fed set to go big and keep going until inflation tamed (BBG)
  • Amazon defeats drive to unionize second Staten Island facility (BBG)
  • Warburg-backed firm forms $1.2B JV on infrastructure push (BBG)
  • Buffet says Berkshire Hathaway has 9.5% Activision stake (RT)
  • 10Y Treasury yield hits 3% for first time since 2018 (WSJ)
  • Grindr user data was sold through ad networks (WSJ)
  • Citi’s London trading desk behind European ‘flash crash’ (BBG)
  • EU accuses Apple of abusing mobile-payment market power (WSJ)
  • Biden administration announces $3.1B to make EV batteries in the US (CNBC)

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Deal Flow

M&A / Investments

  • Spirit Airlines’ board unanimously rejected JetBlue’s unsolicited $3.6B offer and said it would instead stick with a lower offer from Frontier Airlines (BBG)
  • Astorg Partners is nearing a deal to buy contract drug development and manufacturing company CordenPharma for $2.5B+ (BBG)
  • Apparel company G-III agreed to buy an 81% stake in fashion brand Karl Lagerfield for $210M (BBG)
  • Portuguese oil company Galp Energia is considering a sale of its upstream operations in Angola (BBG)

VC

  • Instant grocery startup Zepto raised $200M at a $900M valuation in a round led by Y Combinator (BBG)
  • Hello Heart, a digital therapeutic startup focused on heart health, raised a $70M Series D led by Stripes (BW)
  • Engineering efficiency platform LinearB raised a $50M Series B led by Tribe Capital (PRN)
  • NoCode NLP platform Accern raised a $20M Series B led by Mighty Capital and Fusion Fund (PRN)
  • Relay Robotics, a new corporation formed by the acquisition of leading robotics developer Savioke, raised a $10M Series A led by MK Capital (BW)
  • Healthcare infrastructure company Capable Health raised a $6M seed round led by M13 (PRN)
  • Ownwell, a startup helping commercial and residential property owners save on taxes, raised a $5.75M seed round led by First Round Capital (BW)
  • Privacy-focused data generation platform Kahoona raised a $4.5M seed round led by Global Founders Capital (PRN)
  • BarRaiser, an AI-powered smart interviewing platform, raised a $4.2M seed round led by 021 Capital and Global Founders Capital (PRN)
  • Design tool startup Diagram raised a $3M seed round led by LudlowVentures (DIAG)

Crypto Corner

  • Pplpleasr releases producer pass Ethereum NFTs for Cannes (DC)
  • VanEck is giving away 1K Ethereum NFTs - and kindly asks that you not sell them (DC)
  • Otherside NFT mint burned more than $157M in Ethereum (DC)
  • Argentina’s largest private bank launches crypto trading feature (CD)

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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 sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're an employer looking to hire candidates, feel free to drop a job listing here.

Meme Cleanser

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

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