Jan 26, 2024

I recently heard that U.S. Steel’s acquisition by Japan’s Nippon Steel was driven by regulatory arbitrage rather than price, as revealed in its preliminary proxy statement. CG Oncology, a biotech company focused on bladder cancer, raised $380 million in its IPO, signaling a positive trend in the broader IPO market. Additionally, there were several venture capital deals announced, including funding for EV battery development and mycelium-based food products.

The U.S. economy grew at a 3.3% annualized rate in Q4 2023, surpassing economists’ expectations and reflecting a year of economic resilience. However, there were also cases against Chatham Asset Management and Aon Investments USA Inc. for improper trading and errors in calculating investment returns, highlighting ongoing challenges in securities regulation.

The news also mentioned the SEC’s adoption of new rules regulating SPACs, affecting the market for retail investors to access small, risky, speculative companies. Interest-bearing stablecoins are facing challenges in paying competitive yields while complying with US securities laws, although venture capitalists are still interested in investing in them for potential use in fintech and payments.

Other news included China’s $6 trillion stock wipeout, Blackstone’s plans for a deal spree, EquiLend’s cyberattack, insurers profiting from soaring premiums, fund managers slashing jobs, and retailers returning to bringing in inventory ‘just in time’. There was also discussion about younger Americans not seeing a path to retirement and Sam Bankman-Fried’s influence on Bitcoin’s comeback.

Stay Well!