Read Sunday ☕️

Last Week’s Headlines

Economy & World News

• Inflation Cools to 3% in September
  The CPI rose just 0.3% month-over-month, putting annual inflation at 3.0% — lower than expected. Core CPI increased 0.2%, signaling continued disinflation as the Fed eyes its next move. The data, released for Social Security adjustment purposes, will influence cost-of-living increases for 2026.

• Trump Slaps 10% Tariff on Canada
  President Trump imposed an additional 10% tariff on Canadian imports after Ottawa aired an ad featuring Ronald Reagan criticizing tariffs. The move, framed as retaliation, heightens trade tensions ahead of the 2026 midterms.

• Oil Surges on Fresh Russian Sanctions
  Brent crude jumped nearly 5% after new U.S. sanctions targeted Russia’s two largest oil companies for failing to engage in peace talks with Ukraine. The move reignited supply concerns heading into winter.

• Japan’s Exports Rise, but U.S. Trade Slows
  Japanese exports grew 4.2% year-over-year, driven by semiconductors, but shipments to the U.S. weakened. Analysts say a shift in global demand and a strong dollar could pressure Japan’s trade balance into year-end.

• Hedge Fund Industry Hits $5 Trillion Record
  Total hedge fund assets climbed to a record $5T, fueled by nearly $34B in quarterly inflows — the largest since before 2008. Institutions continue rotating from private equity toward more liquid, event-driven strategies.

Public Markets

•  Tesla Grows Revenue, Misses Earnings
  Tesla posted 12% YoY revenue growth to $28.1B but missed profit forecasts due to higher capital expenditures. Shares fell 3% as investors focus on margin recovery and new vehicle delivery timelines.

• Target to Cut 1,800 Jobs
  Target announced layoffs and the elimination of 800 open roles following 11 straight quarters of weak sales. Management cited the need to streamline costs as e-commerce competition intensifies.

• Gold Suffers Sharpest Drop Since 2020
  Gold fell 5% in its worst one-day slide in five years as investors took profits following a nine-week rally. Analysts expect near-term volatility before a potential Q4 rebound if rate-cut expectations rise.

• GM Raises Full-Year Guidance After Strong Q3
  General Motors beat estimates on both revenue and profit, boosted by stronger North American demand and cost savings. The automaker raised its 2025 outlook, citing operational efficiency and easing tariffs.

• McKinsey Warns Banks Could Lose $170B to AI
  A new McKinsey report says banks risk $170B in lost profits if they fail to integrate “agentic AI” systems that autonomously manage customer finances. The technology could redirect $23T in deposits from low-yield accounts, pressuring margins across retail banking.

Real Estate & Private Equity

• Commercial Real Estate Shows Early Signs of Stabilization
  Private markets are seeing selective recovery in office and industrial segments as interest rates plateau. Institutional investors remain cautious, prioritizing short-duration, income-generating assets while awaiting clarity on rate cuts.

• Blackstone & TPG Pursue $17B Hologic Buyout
  Blackstone and TPG are reportedly in talks to acquire medical device firm Hologic for over $17B including debt. The deal could mark one of the largest healthcare buyouts of the year, underscoring private equity’s pivot toward defensive sectors.

• Coca-Cola Consolidates Africa Operations in $2.6B Deal
  Coca-Cola HBC AG agreed to acquire a 75% stake in Coca-Cola Beverages Africa from Coca-Cola Co. and the Gutsche Family for $2.6B. The transaction strengthens its control over a high-growth regional bottling operation.

M&A, IPO’s, Bankruptcies

•  Warner Bros. Considers Strategic Alternatives
  Warner Bros. Discovery is reviewing potential transactions amid unsolicited interest from multiple parties. Options include a full sale or separation of its cable and streaming businesses by 2026.

• Travis Kelce Joins Jana Partners in Six Flags Activism
  Kansas City Chiefs star Travis Kelce teamed up with activist hedge fund Jana Partners, which disclosed a 9% stake in Six Flags. The group is pressing management for operational changes and board refreshment.

• DraftKings Acquires Railbird
  DraftKings purchased the event-prediction platform Railbird, expanding into prediction markets for sports, finance, and entertainment outcomes. The move diversifies its engagement tools ahead of the NFL playoffs.

• Starboard Takes 5% Stake in Fluor Corp.
  Jeff Smith’s Starboard Value revealed a 5% stake in engineering firm Fluor, urging management to enhance shareholder returns and monetize assets like its NuScale Power stake.

• Jana Partners Targets Cooper Cos.
  Activist investor Jana Partners built a position in Cooper Companies and is pushing for a merger of its CooperVision unit with Bausch + Lomb. The companies have expressed preliminary interest in exploring a deal.

• Bankruptcy Watch: Retail & Consumer Discretionary
  Several mid-tier retailers are showing early warning signs as foot traffic weakens and credit conditions tighten. Analysts expect a rise in filings heading into the holiday season, particularly in apparel and home goods.