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JPMorgan capped junior banker work hours, Japan has emerged as a top PE market, Goldman saw another massive M&A payday, bank execs cautioned against optimistic IB expectations, and Ken Griffin bankrolled USMNT's new head coach contract.

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Let's dive in.

Before The Bell

As of 09/11/2024 market close.

Markets

  • US stocks surged yesterday investors digested another positive CPI report 

    • Traders now see a 20% chance of a 50 bps rate cut, with a 25 bps cut priced in

Earnings

  • What we're watching this week:  

    • Today: Adobe, Kroger 

  • Full calendar here

Headline Roundup

  • US inflation continued to cool to 2.5% YoY (CNBC)

  • Wall Street curbs young bankers' hours after overwork outcry (WSJ)

  • Japan is now a top PE market (NKK)

  • US bank execs issue caution against elevated IB expectations (RT)

  • Bank dividends catapult Q2 global payouts to record highs (RT)

  • Germany insolvencies continue to climb at record pace (RT)

  • Italy will review corporate governance rules after investor pressure (FT)

  • Goldman to earn $92M in fees from advising on $36B Kellanova sale (FT)

  • Investors pulled $7.7B from Franklin Templeton amid co-CIO probe (FT)

  • UK asset managers abrdn and Schroders each named new CEOs (FT)

  • Norfolk Southern CEO was fired after affair with legal chief (CNBC)

  • PwC will layoff 1.8k employees in first formal cuts since 2009 (WSJ)

  • Samsung will cut up to 30% jobs in some divisions (RT)

  • Europe sharp outlier amid rapid global EV sale growth (RT)

  • Posh real estate deals boom in high-flying junk munis market (BBG)

  • UK to require $13 travel permits for US and EU citizens (FT)

  • Ken Griffin helps bankroll contract for new USMNT coach (NYP)

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Deal Flow

M&A / Investments

  • Abu Dhabi’s ADNOC is expected to make a formal offer for German chemicals group Covestro at a $15.9B valuation, including debt (FT)

  • Danish logistics firm DSV won the race to acquire Deutsche Bahn’s logistics unit Schenker in a potential $15.4B deal (RT) 

  • UK property listing group Rightmove rebuffed an initial $7.3B takeover approach from Australian peer REA (WSJ)  

  • PE firm EQT is exploring a sale of its majority stake in fintech Banking Circle at an over $2B valuation, including debt (RT) 

  • Castlelake is considering a sale of its 79% stake in Spanish real estate group Aedas Homes worth $933M (RT) 

  • HSBC is exploring a sale of its HSBC Bank Malta unit (RT) 

  • Canada's Lundin Mining received takeover interest for its European mines (BBG) 

  • UAE cosmetics firm Huda Beauty is exploring a sale of its Kayali perfume unit (BBG) 

  • BlackRock acquired a minority stake in a Saudi-Bahrain pipeline from Bahrain state oil firm Bapco Energies (RT) 

  • Dovid Efune, owner of right-wing digital outlet The New York Sun, emerged as a bidder for UK newspaper The Telegraph (FT) 

VC

  • OpenAI is in talks to raise a $6.5B equity round at a $150B valuation led by Thrive Capital (BBG) 

  • AI development platform webAI raised a $60M Series A at a $700M valuation (SAAS)

  • Egyptian payment infrastructure startup Paymob raised a $22M Series B extension led by EBRD Venture Capital (TC)

  • Connectly, an AI to personalize text messages to customers, raised a $20M Series B led by Alibaba (TC)

  • UK renewable energy brokerage startup Tem raised a $13.7M Series A led by Atomico (TC)

  • Landbase, an AI platform for go-to-market, raised a $12.5M seed round led by A*, 8VC, and First Minute Capital (BW)

  • Morphotonics, a nanoimprint technology for displays, raised a $10M+ Series B led by 3M and BOM (BW)

  • Nostra AI, a conversion optimization software for e-commerce, raised $8.9M in funding led by High Alpha (BW)

  • Cerrion, a Swiss AI startup automating manufacturing production insights, raised a $5M round led by Y Combinator and Goat Capital (EU)

IPO / Direct Listings / Issuances / Block Trades

  • Asian PE firm Hillhouse Investment and Singapore's GIC are in talks to invest in appliance maker Midea Group’s $3.5B Hong Kong IPO (BBG) 

  • Italian bank UniCredit took a 9% stake in the German peer Commerzbank for $1.5B (FT)

  • India's Bajaj Housing Finance $782M local IPO was oversubscribed by 64x (RT) 

  • Miner Anglo American raised $402M from a sale of a 5% stake in Anglo American Platinum (RT) 

  • Berkshire Hathaway sold another $229M stake in Bank of America to total $7.2B (RT) 

  • Abu Dhabi's Etihad Airways plans to IPO no sooner than 2025 (RT) 

  • Singaporean precision engineering firm Grand Venture Technology is targeting a second listing in Malaysia (BBG) 

  • Malaysian home-improvement retailer Mr DIY Group is considering a $300M local IPO for its Indonesian unit (BBG) 

SPAC

  • Media firm Angel Studios will merge with Southport Acquisition Corp. in a $1.6B deal (RT) 

Debt

  • Hewlett Packard Enterprise is seeking a $9.5B debt package to help fund its $14B acquisition of Juniper Networks (BBG) 

  • OpenAI is in talks with banks to raise $5B in debt (BBG) 

  • Blackstone is selling another $1.1B of CMBS to help fund its $10B acquisition of apartment landlord AIR Communities (BBG) 

  • Online furniture retailer Wayfair is seeking to raise ~$1B in high-yield debt to address upcoming maturities (BBG) 

Bankruptcy / Restructuring

  • US burger chain BurgerFi International filed for Chapter 11 bankruptcy (BBG) 

Fundraising

  • Investments firm ICG raised $16.8B for its fifth, and Europe's largest, direct-lending fund (BBG) 

  • Distressed assets investor Lone Star Funds raised $2.7B for its seventh CRE fund (CoS) 

Crypto Corner

  • Bitcoin mining difficulty hit a record high (BBG)

  • Crypto activity surpassed its 2021 peak this year (CT)

  • India leads in crypto adoption again, but Indonesia is fastest growing (CD)

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