Welcome to Read Sunday, your essential source for a concise and impactful weekly Business & Finance recap. Dive into the pivotal market highlights from the week, distilled for your convenience, and stay tuned for the thought-provoking editor's piece that rounds off your Sunday with insightful perspectives.

Market Recap

This Week’s Headlines

Public Markets

• Schwab reported on Friday that core net new assets amounted to $4.9 billion last month, marking a significant decrease from the $43.3 billion recorded in the same period the previous year, as well as a drop from the $13.7 billion reported in July. The brokerage firm attributed these declines to the temporary loss of TD Ameritrade clients and advisors.

• Arm Holdings has made its debut on the Nasdaq stock exchange, trading under the ticker symbol "ARM". The company's initial public offering was priced at $51 per share. Following its debut, Arm's stock climbed 25%. Arm Holdings is currently valued at a significant premium compared to the rest of the semiconductor market. In addition SoftBank still retains approximately 90% of Arm's stock.

• Instacart is targeting a valuation of up to $10 billion in its initial public offering. The company recently adjusted its initial price range to fall between $28 and $30 per share, as indicated in a regulatory filing on Friday. In its debut on the Nasdaq, Instacart intends to offer a total of 22 million shares, including shares from existing shareholders. PepsiCo has committed to buy $175 million worth of shares in a concurrent private placement, as stated in the company's securities filing.

Economy

• The European Central Bank (ECB) has raised interest rates to a historic high and dropped hints about the possibility of reaching a peak in rates.

• Reports from oil suppliers, indicate a tightening of supply and the likelihood of elevated prices for the remainder of this year and beyond, have heightened concerns about inflation.

• The United States is seeking to sell approximately $13 billion worth of Mortgage-Backed Securities that were acquired from failed banks SVB and Signature. These bonds were transferred to the Federal Deposit Insurance Corporation due to the bank failures. However, these MBS holdings have become less appealing in the current market environment characterized by high interest rates, prompting the U.S. government to explore options for offloading them.

• Mexican lawmakers recently conducted an extraordinary hearing, which marked Mexico's first congressional event dedicated to UFOs. During this hearing, witnesses testified that "we are not alone" in the universe, and attendees claimed to have seen what they believed to be the remains of non-human beings. This event represents an unusual step in acknowledging and discussing the topic of unidentified flying objects and potential extraterrestrial phenomena within the country's legislative framework.

Mergers & Acquisitions

• On Monday, J.M. Smucker reached an agreement to acquire Hostess Brands, the company behind Twinkies, in a deal valued at $5.6 billion, inclusive of debt. This transaction brings together two prominent American snack manufacturers. Excluding debt the deal's value stands at approximately $4.6 billion. Smucker, renowned for its Jif peanut butter, will provide Hostess shareholders with a payment of $34.25 per share, which combines cash and stock.

• On Friday, Kroger announced its decision to sell more than 400 of its grocery stores to C&S Wholesale Grocers, aiming to secure regulatory approval for its nearly $25 billion acquisition of its smaller rival, Albertsons. As part of this divestiture, Kroger will receive approximately $1.9 billion in cash. Kroger noted that it might require C&S Wholesale Grocers to acquire up to an additional 237 stores in specific geographical areas to satisfy regulatory requirements for the deal. The acquisition is currently scheduled to be completed in early 2024.

• Trucking company Estes Express has indeed submitted a revised bid of $1.525 billion in cash for the shipment centers of the bankrupt Yellow Corp, as confirmed by a bankruptcy court filing on Wednesday.

Read Sunday - Opinion (Throwback)

The Power of Family Offices: Why Financial Investment Firms Should Target Them

In the ever-evolving financial landscape, financial investment firms, particularly those dealing with private equity and hedge funds, are constantly exploring new avenues for growth and expansion. A recent trend that has gained traction is the strategic pursuit of family offices - exclusive entities entrusted with the management of significant wealth for affluent families and high-net-worth individuals. This article examines the compelling reasons why financial firms should seriously consider targeting family offices as valuable clients.

Read More

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