Good morning! Apollo is acquiring real estate manager Bridge Investment, while Blackstone is buying a yacht and marina servicing company for $5.65B.

Jamie Dimon called the U.S. government “inefficient” and praised Elon Musk’s DOGE. Meanwhile, federal workers are suing over Musk’s “what did you do last week?” emails.

Apple committed to a record $500B US investment. Citadel Securities is entering crypto market making. Starbucks is cutting 1,100 corporate jobs. Elizabeth Holmes’ Theranos fraud conviction was upheld, and Americans are raising their own chickens amid nationwide egg shortage.

Investors are no longer conducting due diligence manually—they are automating DD with Hebbia. Test it out today.

_{SQUEEZ OF THE DAY}

America Runs on Rich People

While most Americans are cutting back on spending thanks to inflation, the top 10% of earners are making it rain. Households earning $250,000+ a year now account for nearly half of all consumer spending (49.7%), up from 36% three decades ago. That means the U.S. economy is more reliant than ever on wealthy Americans keeping their wallets open.

Between September 2023 and September 2024, spending by the top 10% of earners jumped 12%, fueled by stock and real estate gains. Meanwhile, spending by the middle and working class declined. Over four years, the bottom 80% of earners barely kept pace with inflation, increasing their spending by 25% while prices rose 21%. The wealthy? They spent 58% more.

A major reason? The rich got richer. The top 20% of earners saw their net worth jump by $35 trillion since 2019, while the bottom 80% only gained $14 trillion combined. Even small market shocks—like a dip in stocks or home values—could disrupt this dynamic, hitting economic growth hard.

For now, companies catering to the wealthy are booming: Delta’s premium ticket sales are up 8%, Royal Caribbean had its best booking period ever, and Bank of America reports its richest customers are outspending everyone else. Meanwhile, budget retailers like Big Lots, Kohl’s, and Family Dollar are struggling, with store closures piling up.

Takeaway: The economy is running on the wallets of the rich, and that’s a risky bet. As long as stocks and real estate keep soaring, luxury brands and premium services will thrive. But if the rich cut back, the ripple effects could be massive—hitting retailers, travel, and even job growth. For now, though, the top 10% are keeping the party going while everyone else is stuck checking prices at the grocery store.

_{PRESENTED BY HEBBIA}

Delegate Your Diligence

Finance professionals need tools that work as hard as they do. Hebbia’s Matrix delivers powerful solutions to streamline your workflow and give you a competitive edge.

Here’s how top firms use Hebbia:

• Summarize 200+ earnings calls annually without breaking a sweat.

• Review offering memorandums 5x faster to keep pace with changing markets.

• Identify red flags, compare risks, and extract critical terms in minutes.

• Turn diligence notes into investment memos that impress.

Whether you’re tracking opportunities, managing risk, or drafting memos, Hebbia helps finance teams get more done in less time—without sacrificing quality.

_HEADLINES

Top Reads

• Apollo to buy real-estate management firm Bridge Investment (YF)

• Blackstone buys superyacht and marina servicer for $5.65 billion (BB)

• Citadel Securities moves into crypto market making (BB) 

• Jamie Dimon calls government ‘inefficient’; touts Elon Musk’s DOGE (CNBC)

• Federal workers sue over "what did you do last week" email (Axios)

• Elon Musk has a warning for federal employees still working from home (Fox)

• Apple announces $500 billion US investment (YF)

• Home buyers are finally getting the upper hand again (WSJ)

• Starbucks to lay off 1,100 corporate workers as sales sag (YF)

• Qatar uses sovereign wealth to entice venture capital to Doha (FT)

• Trump says tariffs on Canada and Mexico ‘will go forward’ (CNBC)

• Theranos fraud convictions upheld (YF)

• Hims & Hers halts GLP-1 copy sales (BB)

• Private equity feud inches closer to court (Axios)

• Americans take to raising their own chickens amid egg shortage (Fox)

_{CAPITAL PULSE}

Markets Rundown

Markets Retreat as Tariffs Loom and Investors Eye NVIDIA Earnings, PCE Data

On Monday, U.S. equity markets closed lower, driven by declines in technology and consumer discretionary stocks, as the Nasdaq led the downturn amid a risk-off sentiment. 

President Trump’s announcement that tariffs on Canada and Mexico will resume next week after a 30-day pause heightened market uncertainty, while attention turned to NVIDIA’s upcoming Q4 earnings and key housing data, including the S&P CoreLogic Case-Shiller Home Price Index, expected to show a 4.4% year-over-year increase for December.

In Europe, stocks were mixed following Germany’s federal election, where a conservative alliance led by Friedrich Merz secured 29% of the vote, signaling a fragmented government and potential increases in defense spending; Germany’s DAX rose, while France’s CAC 40 and the U.K.’s FTSE 100 declined.

Bond yields dipped, with the 10-year Treasury near 4.40%, as markets awaited January’s PCE inflation data, projected to ease to 2.5% from 2.6%, though shelter costs at 4.7% continue to slow disinflation—setting the stage for potential Fed rate cuts later in 2025 as inflation trends toward the 2% target.

Movers & Shakers

• (+) Freshpet ($FRPT) +7% after Jefferies upgraded the pet food company.

• (+) Nike ($NKE) +5% because the company’s new CEO's turnaround plan got a rave analyst review.

• (–) Rivian ($RIVN) -8% after Bank of America downgraded the EV maker.

Private Dealmaking

• Blackstone bought Safe Harbor Marinas for $5.65 billion

• Prosus bought Just Eat Takeaway for $4.3 billion

• Apollo bought Bridge Investment Group for $1.5 billion

• NinjaOne, an IT platform, raised $500 million

• MongoDB acquired Voyage AI for $220 million

• Just Salad, a restaurant chain, raised $200 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

We All Live Here

Lila Kennedy has a lot on her plate.

A broken marriage, two wayward daughters, a house that is falling apart, and an elderly stepfather who seems to have quietly moved in.

Her career is in freefall and her love life is . . . complicated.

So when her real dad—a man she has barely seen since he ran off to Hollywood thirty-five years ago—suddenly appears on her doorstep, it feels like the final straw.

But it turns out even the family you thought you could never forgive might have something to teach you: about love, and what it actually means to be family.

“The #1 New York Times bestselling author, whose books so many love, brings us a fresh, contemporary story of a woman and her unruly blended family.”

_{DAILY VISUAL}

Office-To-Home Conversions

_{PRESENTED BY KNOPMAN MARKS}

Don’t Just ‘Pass’ Your Exam–Kick Its A**

News flash: Working 80-hour weeks while trying to prep for that securities exam requires an elite partner.

That’s why savvy finance pros study with Knopman Marks–the #1 exam prep program on Wall Street. 

Built specifically for high performers, Knopman Marks’ industry vets prepare you with proven memory techniques to help you learn, retain, and deploy your knowledge on Exam Day (and beyond).

Busy schedule? Don’t worry–they have flexible options and tailored support to keep your training on track. 

Pass your exam–and the competition with Knopman Marks.

_{DAILY ACUMEN}

Meaningful Connections

In a world where technology and shifting social norms often pull us apart, building meaningful connections requires us to rethink our habits and mindsets.

Today’s insight draws from the idea that while we crave deep relationships, subtle barriers—like treating socializing as a luxury, underestimating the joy of small interactions, or letting smartphones disrupt our presence—hold us back.

Research highlights that simple acts, like chatting with a stranger or prioritizing proximity to others, can spark unexpected bonds, yet we often misjudge their value.

To enrich our lives, let’s challenge the norm of isolation, embrace vulnerability, and recognize that connection isn’t just a bonus—it’s a vital part of thriving.

Start small: say hello, put the phone down, and trust that others might welcome your outreach more than you think.

_{ENLIGHTENMENT}

Short Squeez Picks

• How meditation deconstructs your mind  

• How to influence anyone who disagrees with you

• Does knowing your money personality improve your relationships

• Does buying the dip really work?

• 5 books for building lasting professional relationships

_{MEME-A-PALOOZA}

Memes of the Day