Public Markets 8-Hour Briefing
×Market Moves
The S&P 500 dropped 1.2% in its worst week since June, weighed down by energy stocks and a broader risk-off sentiment. Centerview Partners settled a lawsuit over alleged excessive work hours brought by a former analyst, promising to clarify the essential functions required for investment banking roles. Netflix’s proposed $72 billion takeover of Warner Bros. Discovery faces heightened scrutiny from the Justice Department, which is investigating whether the streaming giant wields anticompetitive power. Honeywell is reportedly considering walking away from its $1.8 billion acquisition of Johnson Matthey’s Catalyst Technologies business, potentially signaling caution in the industrial M&A space. CLO funds are flashing warning signs, with investors becoming choosier about taking on credit risk as fears of rising defaults spread from the leveraged loan market.
Mergers & Acquisitions
Latham & Watkins poached two more partners from rival Wachtell Lipton in a continued talent war within legal M&A, following its recent advisory role in Paramount Skydance’s hostile bid for Warner Bros. Discovery. Honeywell’s potential withdrawal from the Johnson Matthey deal adds another layer of uncertainty to the industrial sector’s deal pipeline.
Credit & Risk
Riskiest CLO funds are warning investors, as the fear of rising defaults spreads from the leveraged loan market into retail funds that buy this debt. This shift reflects growing choosiness among investors about taking on credit risk.
Macro & Policy
Japan may intervene to buy yen amid speculation about currency pressures. Meanwhile, Ecuador is eyeing a $4 billion bond sale to fund infrastructure projects, signaling renewed appetite for emerging market debt.
Legal & Regulatory
Michael Selig, a Trump official, is at the center of a fight over sports betting platforms like Kalshi and Polymarket, advocating for prediction market legalization. The Supreme Court’s ruling on Trump’s tariffs was a victory for the educational-toy industry, allowing Toymaker to refocus on growth.
Market Data
Bitcoin dipped after Trump announced tariff hikes but recovered, highlighting volatility in crypto markets amid geopolitical tensions.