Markets
Key Events
👉 February JOLTS job openings down month over month but in line with consensus.
Strong job market with inflation reduction is ideal. Market is awaiting Non-farm Payroll (NFP) this Friday on March employment numbers. Consensus +200k increase.
Still more data is needed to convince fed officials of the timing of the rate drop. Continued debate on June rate-cut prospects.
👉 Electric Vehicle (EV) weakness on delivery updates even with lowered expectations.
Tesla reported its first YoY decline in quarterly deliveries to 386k, down 8%. Shares closed down 5%. Wall Street continues to expect lower delivery numbers for 2024 with high interest rates and an older line-up of vehicles.
Ford and GM are likewise reassessing EV investment plans with the changing market sentiment.
👉 PVH, owner of Tommy Hilfiger and Calvin Klein down 22% on Tuesday, steep drop in its annual revenue guidance with weakening Europe demand. Buyback increased to $2bn.
Mergers and Acquisitions
👉 Schlumberger to Acquire ChampionX
Oil services company Schlumberger to buy chemical and drilling technologies company ChampionX in an all-stock deal valued at about $7.8 billion.
This is an integration play to own the full production cycle and
Per Management:
“Our customers are seeking to maximize their assets while improving efficiency in the production and reservoir recovery phase of their operations,” said Schlumberger Chief Executive Olivier Le Peuch. “Service providers can partner with customers throughout the entire production lifecycle, offering integrated solutions.”
Private Equity
Advent International to buy Nuvei for $6.3 billion. Nuvei is Ryan Reynold’s investment, a Canadian payment processor for e-commerce, gaming, and crypto.
Initial Public Offerings
Contineum Therapeutics, developer of neuroscience and inflammation drugs, set IPO terms at a $490m valuation,
Venture Capital
Xion, a blockchain for consumer-focused developers, raised $25m.
