Key Events

👉 Hawkish repricing of Fed pivot

CPI inflation data has been ahead of consensus for the past 3 releases. CPI numbers come out on a monthly basis.

Inflation is an important indicator the Fed is patiently watching. It is coming down slower than expected. So, the market is expecting the Fed to be more hawkish (keep rates at elevated levels) to combat any stickiness in inflation.

However, rate cuts are still expected this year.

March retail sales up 0.7% month over month, ahead of 0.4% consensus. Driven by higher gas prices.

👉 Corporate weakness: Apple and Tesla

Tesla to cut headcount by more than 10%. The company’s public policy and battery executive are leaving.

Apple iPhone sales fall 10% year over year in Q1. Pressures stemming from drop in China sales with increased competition and nationalism.

Evercore Research says that US earnings are to weaken and the S&P will correspondingly end at lower levels than current.

👉 Salesforce in late talks to buy Informatica

Both companies’ shares traded downwards. It is common to see the target’s stock price jump because of the purchase premium paid to acquire the company.

So why didn’t it? The potential deal price was below where the stock was trading at close. Can such a deal go through? No. The board of directors would not satisfy their fiduciary duties by selling the company for less than it’s worth.

So, the market was reassessing how likely the deal would close. All depends on how flexible Salesforce is.

Mergers & Acquisitions

Medical Properties Trust sold a ~75% interest in five Utah hospitals for $886M to a JV. Delivered $1.1B in immediate cash proceeds to reduce debt burden. Stock up 18% on news.

Prysmian to acquire Encore Wire for $290/share, ~3.9bn enterprise value, to enhance its exposure to North America.

Initial Public Offerings

Bowhead Specialty, a property and casualty insurer, filed for an IPO, looking to raise $100mm after doubling profits in 2023.

Venture Capital

ShareChat, an Indian social media platform, raised a $49mm convertible note at a $2bn valuation.
Carro, a Singapore-based used car marketplace, is raising $100mm at $1.5bn.