Private Equity Bros Weekly

📊 Weekly Summary

Here’s a quick rundown of what’s been happening in the global economy over the past week. Markets have been on an upswing, with the S&P 500 up 18% for the year, thanks in part to the Fed signaling possible rate cuts. On the other hand, China’s economic slowdown has added some volatility, especially in oil prices.

Inflation is easing globally, projected to drop to 5.8% by the end of the year, but core inflation remains sticky in certain regions. So while things are looking up, there are still a few uncertainties to keep an eye on.

📈 Recent Finance News

China's $142B Capital Injection: China is considering a significant capital infusion into its major banks to stabilize its economy (Reuters)

PBOC's Historic Rate Cut: The People's Bank of China implemented its largest-ever medium-term rate cut, signaling aggressive economic stimulus (Reuters)

US and China Debt Surge: Global debt, led by the US and China, reached a record $312 trillion in the first half of 2024 (Reuters)

US Treasury Market Liquidity: Liquidity in the US Treasury market has recovered to levels last seen before the Fed's tightening (Liberty Street Economics)

US Election Risk Affecting Investments: Corporate investment plans are being hampered by uncertainties around the upcoming US elections (Reuters)

Fed Rate Cuts Fueling Market Optimism: The Federal Reserve left the door open for further significant rate cuts, boosting debt market activity (ABC News)

US Consumer Confidence Plummets: US consumer confidence saw its steepest decline in three years, raising concerns about economic resilience (CNBC)

Australian IPO Slump: Australian initial public offerings dropped to their lowest level since the 2008 financial crisis (FT)

BNPL Holiday Spending Surge: "Buy Now, Pay Later" spending for the holiday season is projected to reach a record $18.5 billion (Reuters)

Google vs Microsoft EU Lawsuit: Google filed an antitrust lawsuit against Microsoft for anti-competitive practices in cloud computing (Euronews)

🔍 Newly Released Reports  

• Buying and Building Portfolio Companies (BDO Private Equity) 

• Who’s Buying? The Outlook for Consumption (Bank of England) 

• The Future of European Competitiveness (EWI Vlaanderen) 

• U.S. Economy, Housing & Mortgage Market (Freddie Mac) 

• U.S. Market Outlook (Cypress Capital) 

• Private Debt Fund Survey 2024 (KPMG) 

🤝 M&A Activity

Qualcomm exploring takeover of Intel (The Irish Times)
Deal Value: ~$93B

Rightmove rejected $8.1B takeover by REA Group (Reuters)
Deal Value: $8.1B

Apollo eyeing $5B Intel investment (Data Center Dynamics)
Deal Value: $5B

Metro Pacific Health stake sale by KKR and GIC (Reuters)
Deal Value: $3.2B 

Lightspeed Commerce is exploring a sale (US News)
Deal Value: ~$2.4B 

Lexmark sale by Ninestar and PAG (BNN Bloomberg)
Deal Value: $2B

CMA to acquire Santos Brasil (Reuters)
Deal Value: $2B

PE firm L Catterton acquired a majority stake in Solidcore (PE Wire)
Deal Value: ~$700M

Affinity Equity Partners to acquire Healius' Lumus Imaging unit (CB)
Deal Value: $657M

Nano Dimension will acquire Markforged (Yahoo Finance)
Deal Value: $115M