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Good Morning,

Trump will consider Jamie Dimon for Treasury, major tech VCs are backing Trump, Bill Ackman thinks his 'notoriety' will boost his new fund, Microsoft laid off its DEI team, and small cap stocks are on fire.

PE firms across the world use Mosaic to build out LBO models in under 5 minutes…and you should too.

Let’s dive in.

Before The Bell

As of 07/16/2024 market close.

Markets

US stocks rallied yesterday as investors continued to fuel small cap bets on expectations of imminent rate cuts
- Russell 2000 is beating Nasdaq 100 by the most since 2011
- Dow had its best day since June 2023
- S&P and Dow surged to new ATHs
US 10Y yield slid to a four-month low
Gold rallied to ATHs on rate cut bets
Cotton futures fell to four-year lows, to half of their May 2022 ten-year high

Earnings

Bank of America shares popped ~5% after beating Q2 earnings and revenue estimates thanks to rising IB and asset management fees (CNBC)
Morgan Stanley also beat Q2 profit and revenue estimates on strong results in trading and IB, but their wealth business lagged (CNBC)
UnitedHealth shares jumped 6% after beating Q2 estimates despite a hit from a major cyberattack; the firm also lowered its FY profit outlook (WSJ)
What we're watching this week:
- Today: ASML, United Airlines, Johnson & Johnson
- Thursday: TSMC, Netflix, Domino's
- Friday: American Express
Full calendar here

Headline Roundup

Trump will consider Jamie Dimon for Treasury and won't oust J Pow (AX)
Equity traders fueled US bank profits as stock markets rally (RT)
US retail sales data show resilient consumer and economy (RT)
Yield-hungry wealth clients are a growing headache for big banks (WSJ)
China stocks are lagging peers as recovery fails to spark (RT)
China equity L/S funds gained 10% in H1, despite market lag (BBG)
Traders betting on China easing are boosting shorts on banks (BBG)
Eurozone household loan demand rose for first time in two years (RT)
Investors are optimistic but wary of geopolitics (RT)
Microsoft laid off its DEI team (TS)
Bill Ackman tells investors his 'notoriety' will boost new fund (FT)
BlackRock CEO sees 'barbell effect' as investors eye fixed income (FT)
Activist Starboard built as stake in Tinder-parent Match (WSJ)
Musk will move X and SpaceX HQs from California to Texas (WSJ)
Silicon Valley VC titans are backing Trump in numbers (FT)
Deutsche Bank allegedly flouted international accounting rules (FT)
Shein and Temu are swamping air cargo, sending rates soaring (WSJ)
PwC may slash half of China financial services audit staff (RT)
Five Below CEO Joel Anderson stepped down (WSJ)
Luxury brands roll out 50% discounts as Chinese rein in spending (FT)

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Deal Flow

M&A / Investments

Blackstone, CVC, and Veritas are weighing bids for Carlyle-backed aircraft maintenance provider StandardAero at a potential ~$10B valuation, including debt (BBG)
Verizon is exploring a sale of 5k-6k mobile-phone towers across the US, which could fetch over $3B (BBG)
Malaysian telecom Maxis is considering buying out mobile telecom provider U Mobile, which is seeking a $2.1B valuation (BBG)
KBR agreed to buy defense engineering contractor LinQuest from PE firm Madison Dearborn Partners in a $737M cash deal (WSJ)
Blue Owl Capital agreed to acquire $10B AUM credit manager Atalaya Capital Management for up to $800M in cash and stock (BBG)
UK scientific instruments maker Spectris agreed to buy US-based Micromeritics Instrument for $630M (RT)

Botrista, a data-driven automated beverage platform, raised a $120M Series C led by JFC (PRN)
OCN, a fintech providing financial services for gig workers, raised an $86M round led by Caravela Capital, Collide Capital, and Great North Ventures (PRN)
Healthcare AI startup Huma raised an $80M Series D from AstraZeneca, HitachiVentures, and more (EU)
DreamBig, a chiplet platform for AI inference and training, raised a $75M Series B led by Samsung Catalyst Fund and the Sutardja Family (PRN)
Energy transition transaction infrastructure provider LevelTen Energy raised a $65M Series D led by B Capital (FN)
DataCore, an edge data management platform, raised $60M in funding led by Vistara Growth (BW)
Data management startup One Data raised a $36.7M Series B extension led by Vsquared Ventures, Molten Ventures, and HV Capital (EU)
Infinitum, a creator of sustainable air-core motors, extended its Series E with $35M from Marunouchi Innovation Partners and Rice Investment Group (BW)
Vectara, a GenAI product platform, raised a $25M Series A led by FPV Ventures and Race Capital (BW)
Heimdall Power, a startup enabling power grid optimization for utilities, raised a $25M Series B led by Orlen and NRP Zero (BW)
Geo-distributed cloud storage startup Cubbit raised a $12.5M round led by LocalGlobe and ETF Partners (EU)
Indian ridesharing startup Namma Yatri raised an $11M pre-Series A led by Blume Ventures and Antler (TC)
Mira, a decentralized infrastructure platform for AI, raised a $9M seed round led by BITKRAFT Ventures and Framework Ventures (PRN)
itselectric, an EV curbside charging startup, raised a $6.5M seed round led by Failup Ventures and Uber (PRN)

IPO / Direct Listings / Issuances / Placements

Cold storage REIT Lineage is seeking to raise $3.85B at a $19.2B valuation in its US IPO (BBG)
Trump Media agreed to a $2.5B equity issuance from investment firm Yorkville Advisors(BBG)
Indian mining company Vedanta is seeking to raise $1B in an upsized share sale (BBG)
Indian billionaire Gautam Adani and Wilmar International are in talks to sell a $670M, 13% stake in their consumer JV Adani Wilmar (BBG)
SoftBank-backed Indian e-scooter maker Ola Electric'sIndia IPO will likely fetch a $4.5B valuation (RT)
Philippine casino operator Hann is seeking to raise ~$200M in a local IPO (BBG)
Abu Dhabi National Hotels selectedMorgan Stanleyand First Abu Dhabi Bankfor an IPO of its catering unit (BBG)
SymphonyAI, a predictive AI enterprise SaaS, is preparing to IPO in H2 2025 (RT)
Swedish fintech Klarna is lining up banks for a long-awaited US IPO (FT)

Debt

Goldman Sachs is seeking to raise $5.5B in a bond sale (BBG)
Wells Fargoraised $2B through a perpetuity offering after selling $3B in euro debt (BBG)
Ares is nearing a deal to acquire a majority stake in a $1.3B project loan backing a Hong Kong luxury apartment development (BBG)

Bankruptcy / Restructuring / Distressed

Entrepreneur Byju Raveendran lost control of Indian edtech BYJU'S after an Indian court pushed the startup into insolvency (BBG)
UK's Home REIT will wind down and sell its remaining assets (BBG)

Fundraising

Goldman Sachs is setting up a Mideast-focused open-ended fund (BBG)

Crypto Corner

BlackRock CEO Larry Fink is a 'major believer' of Bitcoin in portfolios (CNBC)

Exec’s Picks

Bloomberg sat down with Trump to discuss his plans for taxes, tariffs, J Pow and more.

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