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Good Morning,

UPS and the Teamsters union averted a strike with a new five-year plan, the Fed is set to raise rates to a 22-year high, Warren Buffett bought the dip in energy stocks, Google and Microsoft are paying big bucks in the AI race, TikTok is launching an e-commerce business in the US, and the luxury home market is slowing.

Want to sharpen your private equity knowledge? Wharton Online and Wall Street Prep just opened enrollment for their upcoming Fall Cohort for the Private Equity Certificate Program. Interested? Enroll today!

Let’s dive in.

Before The Bell

Markets

• Stocks climbed higher, led by gains in tech stocks, as investors prepared for big tech earnings and the Fed’s policy meeting

  • The Dow climbed for a 12th-straight day

  • The S&P 500 hit its highest level since April 2022

  • The S&P bear market has nearly been erased, fewer than 20 months after it began

• Oil prices rose to 3-month highs on tightening supplies

Earnings

• Microsoft beat Q4 estimates as revenue rose 8% YoY led by Azure growth, but the stock price fell 4% AH after management provided poor quarterly revenue guidance (CNBC)

• Verizon beat Q4 profit estimates on the back of lower costs and a surprise rise in wireless subscribers as efforts to grow its enterprise customer base and super-fast 5G network paid off (YF)

• General Electric beat Q4 estimates on robust demand for jet engine spare parts and services from airlines looking to cash in on surging air travel; its stock rose 6% (YF)

• Alphabet beat Q2 profit expectations thanks to steady demand for its cloud services and a rebound in advertising as well as its increased focus on Generative AI; its stock was up 6% AH (RT)

• General Motors missed Q2 estimates as adjusted pre-tax profit and margins in its key North American market fell from Q1, despite a jump in revenue and per-vehicle transaction prices (RT)

• What we're watching this week:

  • Today: Meta, Coca-Cola, Boeing, AT&T, Chipotle

  • Thursday: Intel, Mastercard, McDonald’s, Comcast, Ford Motor

  • Friday: ExxonMobil, Chevron, P&G

• Full calendar here

Headline Roundup

• Fed set to raise rates to a 22-year high and decide if it’s done hiking (BBG)

• US consumer confidence hit a two-year high (RT)

• UK is on track to incur the highest debt interest costs in the developed world (FT)

• China state banks seen selling US dollars to prop up yuan (RT)

• UPS, union avert strike with planned 5-year deal, more pay (RT)

• Google and Microsoft paying big to play in AI (WSJ)

• Warren Buffett lifts fossil fuel bets (BBG)

• Cracks inside the Fed deepen at crucial moment in inflation fight (BBG)

• UBS accused of spoofing stock of Trump-linked software company (BBG)

• TikTok is launching an e-commerce business in US (WSJ)

• Apple hit with French complaint over use of advertising data (BBG)

• Morgan Stanley cuts Israel sovereign credit to "dislike stance" after judiciary changes (RT)

• Intel, Ericsson to work together on custom 5G chip (RT)

• Key Atlantic Ocean circulation could shut down by mid-century (AX)

• Miami mayor under fire for $500k donation from flower shop with Chinese ties (BBG)

• UK billionaire Joe Lewis charged with insider trading (BBG)

• US luxury home market is slowing (WSJ)

• Dish to start selling mobile service on Amazon this week (BBG)

• De Beers delivers first production from $2.3B underground mine (RT)

• US will be short 67k chip workers by 2030, industry group says (RT)

• Tech firms are reducing their NYC footprint (NYT)

• Harvard is facing a federal probe over legacy admissions (FT)

A Message From Wall Street Prep

Learn the Essentials of Private Equity with Industry Experts

Wharton Online and Wall Street Prep are excited to announce that enrollment is now open for the upcoming Fall Cohort for the Private Equity Certificate Program.

During this 8-week online program, students will learn the essentials of private equity through a theory-meets-practice methodology, taught by the top instructors at both Wharton Online and Wall Street Prep. Students will also be able to hear and gain insight from industry experts such as David Rubenstein and Martin Brand through our guest lecturer series.

In addition, students will have access to our exclusive alumni benefits, which include peer-to-peer networking events, invitation-only LinkedIn and Slack groups, and exclusive recruiting events with top private equity recruiting firms.

Use code LITQUIDITY to save $300 when you register for the program. And if you apply by the early enrollment deadline on August 7th, you can save an additional $200!

Deal Flow

M&A / Investments

• L’Occitane International’s controlling shareholder, Billionaire Chairman Reinold Geiger, is considering taking the $4B skin-care company private (BBG)

• France's Thales, a multinational electrical equipment designer and manufacturer, is buying US cybersecurity company Imperva from buyout firm Thoma Bravo in a $3.6B deal (RT)

• US security officials are investigating Abu Dhabi sovereign wealth fund Mubadala's $3B takeover of New York-based Fortress Investment Group due to concerns about the UAE’s ties to China (RT)

• Banc of California is buying PacWest in an all-stock deal; Centerbridge Partners and Warburg Pincus are investing $400M into the combined bank for a 20% stake (BBG)

• TotalEnergies will buy the remaining shares of French clean-power developer Total Eren from Eren Groupe for $1.7B (BBG)

• Amazon decreased the price it will pay for iRobot from $1.6B to $1.4B after the vacuum maker took on more debt (RT)

• Investment firm H.I.G Capital is buying audiobook publisher RBmedia from KKR in a deal worth over $1B, including debt (WSJ)

• US insurer Chubb is in talks to acquire a 49% stake in India's Kotak General Insurance and is the favored suitor over Zurich Insurance Group; a deal is estimated to value Kotak at ~$800M (RT)

• Asset manager TCW is expanding into ETFs by buying an ETF business from activist investor Engine No. 1 (BBG)

• Australian retailer Wesfarmers is merging the business units of its budget department store Kmart and discount retailer Target to reduce losses (RT)

• Broadcast Music, a music rights company that represents Taylor Swift, Rihanna, and Lady Gaga, is exploring options including a sale after moving away from a nonprofit model (RT)

VC

• AppHub, an e-commerce enablement platform for merchants across platforms such as Shopify, WooCommerce, and BigCommerce, raised $95M in funding from PSG (BW)

• Cloud security startup Solink raised a $60M Series C led by Goldman Sachs (TC)

• Ossium Health, a startup developing an on-demand bone marrow bank, raised a $52M Series C led by CPMG (BW)

• Nuqleous, a Bentonville-based provider of automated retail space-planning and performance analytics software, raised $26M in funding led by Blue Ladder Capital (FN)

• A-Alpha Bio, a synthetic biology and machine learning company that measures and engineers protein-protein interactions, raised a $22.4M Series A-2 led by Perceptive Xontogeny Ventures (FN)

• Brevel, a startup developing microalgae-based alternative proteins, raised an $18.5M seed round led by NevaTeam Partners (TC)

• Immediate, an earned wage access company, raised $16M in funding led by Castle Creek Launchpad (FN)

• Genialis, a computational precision medicine startup, raised a $13M Series A led by Taiwania Capital and Debiopharm Innovation Fund (BW)

• Laplace Interventional, a Minneapolis-based medical device company, raised a $12.9M Series B led by ShangBay Capital (FN)

• Foxquilt, an insurance startup for SME markets, raised $12M in funding led by ICM (FN)

• Operations intelligence platform Akooda raised an $11M seed round led by NFX, Atlassian Ventures, Village Global, and more (FN)

• Enterprise technologies provider for senior living communities K4Connect raised $8.9M in funding led by Bryce Catalyst and AXA Venture Partners (FN)

• Computer vision startup Ubicept raised an $8M seed round led by Ubiquity Ventures and E14 Fund (BW)

• Sk3w Technologies, a startup aiming to standardize latency on financial exchanges, raised a $7M Series A led by Tower Research Ventures, IMC, and Citadel Securities (BW)

• Biotech company Sanguina raised a $2.8M Series A led by Veritus Holdings (BW)

• Akhetonics, an all-optical processor startup, raised a $2.5M seed round led by Runa Capital (TC)

• Kandle, a Singapore-based crypto fantasy game, raised a $1.7M seed round led by Saama (FN)

• In-situ testing solutions startup Space DOTS raised a $1.5M pre-seed round led by Boost VC, Sie Ventures, 7Percent Ventures, and more (FN)

IPO / Direct Listings / Issuances / Block Trades

• German bus firm Flix, which owns the North American Greyhound and European FlixBus brands, hired JPMorgan, BNP Paribas, and Goldman Sachs for an IPO worth up to $4.4B (RT)

• Brazilian electric utility Copel is planning to launch a $1B public share offering to take the company private (RT)

• Jack Ma-backed Ant plans restructuring, paving way for Hong Kong IPO (BBG)

• Dubizzle Group, an operator of classified websites popular with expats in the UAE, is planning a potential IPO (BBG)

Debt

• Carlyle Group offered iRobot a $200M bridge loan while regulators investigate Amazon’s takeover of the vacuum maker (BBG)

Fundraising

• VC FLORA Ventures made a $50M first close of an $80M fund for early-stage agrifoodtech startups (AFN)

Crypto Corner

• Britain’s data regulator will examine OpenAI CEO Sam Altman’s Worldcoin project (RT)

• 'Verified human': Worldcoin users queue up for iris scans (RT)

• Binance will offer its full suite of services in Japan starting August (BBG)

Exec’s Picks

• Sweater Ventures (a Litquidity portfolio company) is helping both accredited and non-accredited investors support the next wave of groundbreaking startups. They are opening investments into the Sweater Inc fintech platform to the Exec Sum community, but this opportunity closes on July 31^st . Interested in investing? Learn more here.

• Nick Maggiulli explained how we should also consider “return on hassle” when considering different investments.

• Eswar Prasad wrote about why central banks need to be wary of threats posed by CBDCs in their missions to launch digital currencies.

Litney Partners - Financial Recruiting 💼💼

If you're currently a junior investment banker looking to break into the buy side, considering lateraling to another investment bank, or have recently been impacted by widespread layoffs, it's time you check out Litney Partners, a partnership between Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates at leading private equity, hedge fund, venture capital, growth equity, and credit funds, as well as investment banks.

To get started, simply head over to the Litney website and create your profile by dropping your resume / filling out the form:

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