Good Morning! Stocks closed higher on Friday - clawing back most of their losses from last Monday’s sell-off. Meanwhile, it was a tough week to be in the cable TV business with both Paramount and Warner Bros taking $6 and $9 billion write-downs respectively. JPMorgan is giving its bankers an OpenAI-powered assistant, while OpenAI made an odd announcement - they think its users could become emotionally hooked on its voice mode. Plus dating apps are on the rocks with Wall Street, with Bumble losing over 90% of value since IPO, and the WFH essentials you need in 2024.

Looking for niche private market opportunities led by a Wall Street veteran with skin in the game? Check out today’s sponsor, 10 East.

_{SQUEEZ OF THE DAY}

Banking Bonuses Back?

There's some good news on the horizon for investment bankers. Thanks to a strong dealmaking revival, Wall Street's largest banks are starting to see a boost in both profits and, more importantly, bonuses.

According to a new report from compensation consulting firm Johnson Associates, bankers in debt underwriting are expected to be the biggest winners this year, with bonuses projected to rise by 25% to 35%, driven by a rebound in capital markets.

Equity underwriters are also set for significant gains, with expected increases of 20% to 30%.

The past two years have been particularly rough, with some banks, like Barclays, even handing out $0 bonuses to underperformers. The return of more substantial bonuses is a welcome relief, though it’s not a windfall for everyone.

Unlike the boom of 2021, this year's gains are more selective. M&A bankers, for instance, may only see bonuses rise by up to 5% due to ongoing uncertainty from regulatory crackdowns and interest rate concerns.

Other areas are also seeing mixed results. Equity traders could see bonuses rise by 10% to 15%, while fixed-income traders and wealth managers might expect smaller increases of 5% to 10%. Traditional bankers focused on lending could even see flat or declining bonuses, as commercial lending slows and caution around real estate transactions persists.

Takeaway: If last week was any indication, we could be in for a choppy end to 2024. Predictions halfway through the year can change, especially with uncertainty around the U.S. economy, the upcoming election, and the Fed’s path toward lower interest rates. But hey, if 2024 is a better year than the last one, that's worth a toast… just maybe not with Dom Pérignon yet!

_{PRESENTED BY 10 EAST}

Where Sophisticated Investors Access Private Markets

10 East, led by Michael Leffell, allows qualified individuals to invest alongside private market veterans in vetted deals across private credit, real estate, niche venture/private equity, and other one-off investments that aren’t typically available through traditional channels.   

Benefits of 10 East membership include:    

• Flexibility – members have full discretion over whether to invest on an offering-by-offering basis.   

• Alignment – principals commit material personal capital to every offering.    

• Institutional resources – a dedicated investment team that sources, monitors, and diligences each offering.   

10 East is where founders, executives, and portfolio managers from industry-leading firms diversify their personal portfolios.  

There are no upfront costs or minimum commitments associated with joining 10 East.

_HEADLINES

Top Reads

• Cable TV biz crumbles (Axios)

• JPMorgan Chase is giving its employees an AI assistant powered by OpenAI (CNBC)

• OpenAI warns users could be emotionally hooked on its voice mode (Wired)

• Bumble stumbles on growth fears amid dating app fatigue (Axios)

• Why Elon Musk’s X filed an antitrust lawsuit against advertisers (Vox)

• Trump would face constraints in remaking the Federal Reserve if elected (Axios)

• Buffett's Apple dump is set to reshape major stock gauges (YF)

• In the data that matters most, so far it's a slowdown, not recession (Axios)

• Wall Street is staying bullish on Nvidia (YF)

• Tesla’s board faces questions about Musk’s corporate ‘entanglements’ (CNBC)

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Markets Rundown

Stocks closed higher after a volatile week with investors shaking off recession concerns.

Movers & Shakers

• (+) Sweetgreen ($SG) +33% after the fast-casual salad chain posted strong Q2 earnings.

• (+) Unity ($U) +8% because the software company beat revenue estimates.

• (–) elf Beauty ($ELF) -14% after the cosmetics chain reported slowing revenue growth.

Private Dealmaking

• LS Power bought the renewables business of Algonquin Power & Utilities for $2.5 billion

• KKR invested $850 million for a minority stake in Quick Quack Car Wash

• FLYR, a revenue operating system, raised $295 million

• Rewst, an automation platform, raised $45 million

• Oats Overnight, an oatmeal maker, raised $35 million

• Freshpaint, a health care privacy platform, raised $30 million

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

_{BOOK OF THE DAY}

10 Minutes To Reduced Stress

In today’s fast-paced world, stress and anxiety have become pervasive challenges that affect our daily lives and overall well-being. 10 Minutes to Reduced Stress is designed for busy professionals, overwhelmed parents, and anyone struggling to manage the pressures of modern living.

This book offers practical, actionable strategies that can be implemented in just ten minutes a day, making it an invaluable resource for those seeking immediate relief from stress and anxiety.

Drawing on a wealth of research and expert insights, this guide addresses the most pressing issues related to stress and anxiety management.

From understanding the underlying causes and physiological responses to developing effective self-care routines, cognitive strategies, and mindfulness practices, each chapter provides clear, step-by-step techniques to help you regain control over your mental well-being.

Whether you are dealing with chronic stress, occasional anxiety, or simply looking to enhance your emotional resilience, this book offers solutions tailored to fit your lifestyle.

“Embrace a more balanced and less anxious life with this essential guide to stress management.”

_{DAILY VISUAL}

US Undisputed Data Center Giant

There are more than 5000 data centers in the US. In Germany there are 521 and in China 449.

_{PRESENTED BY BILL}

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Take a demo of BILL’s free expense management software + corporate card and they'll give you an Apple Watch, so you can choose freedom from your phone too.

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_{DAILY ACUMEN}

Consistency

Success is not about grand gestures, but consistent small actions.

It's the unglamorous daily grind that leads to greatness.

What small action could you commit to doing consistently?

Consider the Chinese bamboo tree, which shows no growth for five years, then grows 80 feet in six weeks.

Those five years weren't wasted – the tree was developing a root system to support its future growth.

Stay consistent in your efforts.

Trust the process.

Remember, it's not what we do once in a while that shapes our lives, but what we do consistently.

_{ENLIGHTENMENT}

Short Squeez Picks

• 6 work-from-home office essentials for 2024

• How passion can backfire at work

• How to gracefully decline a networking request

• 9 things in life that don’t actually matter in the long run

• Why doing less is good for you

_{MEME-A-PALOOZA}

Memes of the Day