Good Morning! 2024 is ending with a flurry of M&A activity. Omnicom will buy IPG in a $13.3 billion deal that will create the world's largest ad agency. Meanwhile, Oreo-maker Mondelez approached Hershey in what could become the largest merger of the year.

Google unveiled a microchip that claims to solve a key quantum computing challenge, earning praise from Elon Musk. Oracle missed earnings, while Nvidia is facing an antitrust investigation in China.

A new S&P 500 bull thinks the index could hit 7,100 next year. Citi’s Jane Fraser says the bank’s turnaround needs more time, and McKinsey promoted its smallest group of partners in years.

Plus, Blackstone's data center ambitions highlight AI’s strain on small towns, and how to focus at work when you’re distracted.

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_{SQUEEZ OF THE DAY}

Ivy League Grad Charged with Murder

Luigi Mangione, a 26-year-old Ivy League graduate, has been charged with the shocking murder of UnitedHealthcare CEO Brian Thompson. Thompson, a 50-year-old father of two, was ambushed outside a Manhattan hotel last week while on his way to an investor conference.

Mangione fled the scene on a bicycle and evaded authorities for five days before being arrested at a McDonald’s in Altoona, Pennsylvania yesterday. Police found a 3D-printed “ghost gun” with a suppressor, fake IDs, $8,000 in cash, and a handwritten manifesto railing against corporate greed among his belongings.

Mangione’s life once reflected privilege and promise. Valedictorian of Baltimore’s elite Gilman School, he graduated from the University of Pennsylvania with degrees in computer science and excelled in academics, Greek life, and tech leadership. But chronic back pain consumed his life, isolating him from friends and pushing him toward darker ideologies.

On Goodreads, Mangione gave a chilling four-star review to the Unabomber manifesto, praising its “prescient” critique of modern society. Written by Harvard graduate Ted Kaczynski, the Unabomber, the manifesto advocated violence to resist industrialization and led to a mail bombing spree that killed three people in the 1980s and ’90s.

In recent years, Mangione sought refuge in Hawaii, joining a co-living community that emphasized personal growth. Social media posts from this time reflect a mix of hope and frustration, but his chronic pain remained a dominant force. Friends noted that he became increasingly withdrawn, disappearing from their lives in the months leading up to the crime.

The arrest has sparked polarized reactions online. Some have dubbed Mangione a folk hero standing up against corporate greed. Social media remains divided, with hashtags like #FreeLuigi trending even as prosecutors emphasize the calculated nature of the crime. The McDonald’s where he was caught, also was hit by one-star reviews after the arrest.

Takeaway: Mangione’s fall from Ivy League prodigy to murderer exposes the dark interplay of privilege, pain, and radicalization. His story serves as a disturbing reflection of discontent in modern society, raising unsettling questions about the cracks in America’s institutions. Looks like we’ll be hearing a lot more of this case in the months to come.

_{PRESENTED BY GELT}

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_HEADLINES

Top Reads

• Omnicom to buy IPG, creating world's largest ad agency (Axios)

• Mondelez exploring takeover of US chocolate maker Hershey (BB)

• Google unveils 'mind-boggling' quantum computing chip (BBC)

• Google impresses Elon Musk with new 'breakthrough' chip (Fox)

• Oracle shares slide on earnings and revenue miss (CNBC)

• Nvidia facing antitrust investigation from China (Axios)

• Rupert Murdoch loses bid to change family trust (CNN)

• Private credit's struggling pioneer is a warning sign for market (BB)

• New top S&P 500 bull emerges with 7,100 target (YF)

• Jane Fraser says she needs more time for Citi’s turnaround (BB)

• McKinsey promotes its smallest group of partners in years (YF) 

• Lilly approves $15 billion in share buybacks, raises dividend (YF)

• Amazon bringing Intuit QuickBooks software to millions of third-party sellers (CNBC)

• Citigroup forecasting 25 bps rate cut by Fed in December (YF)

• Blackstone's data center ambitions school a city on AI power strains (BB)

_{CAPITAL PULSE}

Markets Rundown

Stocks Dip as Mid-Caps Lag

Major equity markets started the week in the red, with mid-cap stocks underperforming large caps. Most sectors posted losses, though health care and real estate managed to buck the trend with modest gains.

Global markets provided some balance, as Asia rallied on news of additional stimulus from China, including plans for higher government spending and lower interest rates to boost growth. Meanwhile, the U.S. dollar strengthened, while WTI oil and gold edged higher.

Inflation Data in Focus

Markets are turning their attention to November's Consumer Price Index (CPI) release on Wednesday, with inflation expected to rise slightly to 2.7% annualized, up from 2.6% in October. Core CPI, which excludes volatile food and energy prices, is forecasted to remain steady at 3.3%.

Base effects are driving the expected modest uptick in headline inflation, while monthly CPI growth of 0.2% suggests inflation remains in a gradual cooling trend. Despite progress, the path ahead for inflation is likely to remain uneven.

Bond Yields Rise as Fed Decision Looms

The 10-year Treasury yield climbed to 4.21%, reflecting tempered expectations for aggressive Federal Reserve rate cuts. Bond markets now anticipate a 0.25% rate cut next week and two more cuts over the next six months as inflation moderates.

With the Fed’s target range currently at 4.5%-4.75%, policymakers seem poised to adopt a more gradual easing approach. Lower interest rates would ease borrowing costs and reinforce the narrative of a soft landing for the economy, keeping growth on track.

Movers & Shakers

• (+) Hershey Co ($HSY) +11% after takeover interest from Mondelez.

• (+) Workday ($WDAY) +5% because the company will be included in the S&P 500.

• (–) Nvidia ($NVDA) -3% after an antitrust regulation in China.

Private Dealmaking

• Arthur J. Gallagher bought AssuredPartners, an insurance broker, for $13.45 billion

• Omnicom Group acquired Interpublic Group for around $13.3 billion

• Enterprise Bancorp merged with Rockland Trust for $562 million

• Nscale, an AI hyperscaler, raised $155 million

• Cala Health, a bioelectronic medicine startup, raised $50 million

• WaveForms AI, an audio LLM startup, raised $40 million

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

_{BOOK OF THE DAY}

Mindwise

Why are we sometimes blind to the minds of others, treating them like objects or animals instead? Why do we talk to our cars, or the stars, as if there is a mind that can hear us?

Why do we so routinely believe that others think, feel, and want what we do when, in fact, they do not? And why do we think we understand our spouses, family, and friends so much better than we actually do?

In this illuminating book, leading social psychologist Nicholas Epley introduces us to what scientists have learned about our ability to understand the most complicated puzzle on the planet—other people—and the surprising mistakes we so routinely make.

Mindwise will not turn others into open books, but it will give you the wisdom to revolutionize how you think about them—and yourself.

“Mindwise is a brilliant and beautiful exploration of the mystery of other minds—and how we fail to solve it.”

_{DAILY VISUAL}

Omnicom to buy IPG

_{PRESENTED BY JKBX}

Wall Street Can’t Hold a Note Like This

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_{DAILY ACUMEN}

“Shrimp Effect”

What if changing your mind wasn’t a sign of weakness, but proof of growth?

Remember when you hated a certain food (shrimp, maybe?) only to fall in love with it later?

That’s not just about your taste buds evolving; it’s a masterclass in mental flexibility.

Research shows that being open to changing your mind boosts creativity, strengthens relationships, and builds resilience.

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Start small: revisit an old opinion or idea you’ve written off.

Who knows? Shrimp might not be the only thing you’re ready to love.

_{ENLIGHTENMENT}

Short Squeez Picks

• How to focus at work when you’re distracted

• The five different leadership personalities

• The science of mental models

• When your high standards derail your success

• 4 behaviors that demonstrate highly effective leadership

_{MEME-A-PALOOZA}

Memes of the Day