Private Equity Bros Weekly

📊 Weekly Summary

This week’s key financial and economic updates brought a mix of developments, with a focus on the Fed’s latest signals and global economic shifts.

The Fed remains divided over recent rate cuts, while Germany braces for an economic contraction in 2024. Risk appetite is rising in China, with a surge in leveraged bets, and U.S. regional banks found some relief amid stricter capital rules.

Meanwhile, the U.S. budget deficit has swelled to $1.8 trillion, and TD Bank faces a $3 billion settlement. European industrial firms continue to struggle, while the insurance sector is preparing for potential $100 billion losses from Hurricane Milton.

Let’s break it down.

📈 Recent Finance News

U.S. inflation rate hit 2.4% in September: Price increases exceeded forecasts, while jobless claims saw an unexpected rise (CNBC)

Chinese investors expect $283B of new stimulus this weekend: China seeks to boost investor and population confidence (YF)

Fed minutes reveal divide on rate cut: Officials were split over the size of the September rate cut, highlighting divergences (CNBC)

Germany expects economy to shrink in 2024: The government forecasts economic contraction, signaling challenges ahead (RT)

Regional banks get relief amid Fed cuts: U.S. regional banks facing tougher capital rules get relief from rate cuts (RT)

Leveraged bets on China stocks surge: Risk appetite is growing as investors increase leveraged positions in Chinese stocks (YF)

U.S. budget deficit surges to $1.8T: The U.S. budget deficit reached $1.8 trillion for fiscal year 2024, raising fiscal concerns (WE)

TD Bank faces $3B U.S. settlement: TD Bank faces heavy fines and growth restrictions following settlement (YF)

European industry faces highest distress since Covid: European industrial firms are most distressed since the pandemic (BNN)

Hurricane Milton could cost insurers $100B: Insurers could face up significant losses from Hurricane Milton (RT)

🔍 Newly Released Reports  

• How is Investment Doing? A Cross-country Analysis (BBVA)

• 2024 Global Economic & Market Outlook (WT)

• KPMG 2024 Banking CEO Outlook (KPMG)

• The Evolution of Buy-Side Firms (J.P. Morgan)

• M&A Case Study: Disney x Reliance (NDA)

• UK Venture Capital Legal Guide (Legal 500)

• Introduction to Private Equity (Ardian)

🤝 M&A Activity

Couche-Tard raises bid by 22% for Seven & i Holdings (BBC)
Deal Value: ~$47B

BlackRock and CVC explore purchase of private credit giant HPS (MM)
Deal Value: $10B

Global miner Rio Tinto to buy Arcadium Lithium cash (Guardian)
Deal Value: $6.7B

Ares acquires GLP Capital Partners' international arm (GCP)
Deal Value: $3.7B

MCB Real Estate sweetens offer for Whitestone REIT (RT)
Deal Value: ~$1.5B

Tokyo Gas in talks to acquire Chevron's Texas assets (YF)
Deal Value: ~$1B

China’s Zijin Mining to buy Ghana gold mine (IM)
Deal Value: $1B

Mondi acquires Schumacher Packaging assets (Mondi)
Deal Value: $695M

Unilever exits Russia and sells business to Arnest Group (RT)
Deal Value: $568M

Legendary is in talks to buy Wanda’s stake in ‘Dune’ studio (BNN)
Deal Value: Undisclosed