Good Morning! Friday’s job report crushed expectations, adding 254k jobs in a sign the economy’s stronger than we thought. Apollo’s co-founder Josh Harris bought a gym chain, Onelife Fitness, in one of his first deals at his new firm, 26North. 7-Eleven is weighing a stake sale, and Amazon is closing more of its cashier-less convenience stores. Zuckerberg passed Jeff Bezos as world's second-richest person, and Oracle’s Larry Ellison is also getting richer. Plus 4 signs that climbing the corporate ladder may not be for you, and NYC’s new tourism trends.

Your future self will thank you: Get your FMVA® Certification and become a financial modeling expert (and maybe get promoted).

_{SQUEEZ OF THE DAY}

OpenAI Takes Soho

If you live in Soho, you have a new neighbor... the company behind ChatGPT. OpenAI signed a lease for its first NYC office, taking up 90,000 square feet in Lower Manhattan's Puck Building. 

New York City is hoping that AI companies start following OpenAI’s lead and make Manhattan ‘Silicon Valley East.’ Palantir and Anthropic both have offices in NYC. 

If you’re a corporate landlord, you’re hoping that the AI boom gets NYC’s office market back to what it was pre-Covid. JLL, one of the largest corporate landlords, thinks the amount of space leased for AI could quadruple by the end of the decade.

Meanwhile, across the country, San Francisco—once the tech mecca—is still grappling with the remote-work trend and an exodus of companies. But AI is becoming a key player in San Francisco’s recovery, with more than 5% of the city’s total office space already leased to AI businesses.

Last week OpenAI closed a $6.6 billion funding round at a $157 billion valuation. 

Takeaway: When ChatGPT burst onto the scene, OpenAI was positioning itself as a unique, mission-driven AI company. But with its new Soho office, it’s starting to resemble any other tech firm. Picture the typical scene: lattes in hand, post-gym glow from an Equinox or Barry’s Bootcamp class, strolling into the office. It might only be a matter of time before NYC surpasses post-pandemic San Francisco, not just as the finance capital, but as the tech epicenter of the U.S. too.

_{PRESENTED BY CORPORATE FINANCE INSTITUTE}

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_HEADLINES

Top Reads

• Jobs report crushes expectations (CNBC)

• Josh Harris’ 26North buys gym chain Onelife Fitness (YF)

• Private equity's role in America's ports (Axios)

• 7-Eleven owner reportedly considers supermarket stake sale (Axios)

• Amazon closes more of its cashierless convenience stores (TC)

• Banks reclaim $30 billion of debt deals from private credit (YF)

• Why stocks have hardly blinked despite 2 weeks of rocky headlines (YF)

• Hyundai to make SUV with Waymo self-driving car tech (Axios)

• 23andMe is on the brink. What happens to all its DNA data? (NPR)

• Oracle's Larry Ellison is getting richer (Fox)

• Mark Zuckerberg passes Jeff Bezos as world's second-richest person (Fox)

• Blackstone sees $30 trillion opportunity in private credit (BB)

_{CAPITAL PULSE}

Markets Rundown

Market Commentary

U.S. stocks surged on Friday, buoyed by a robust jobs report that exceeded expectations. Nonfarm payrolls jumped by 254,000, far surpassing the estimated 150,000, while unemployment fell to 4.1%, alleviating recession concerns.

However, this stronger-than-expected data raised questions about the Federal Reserve's rate-cut path, with traders now dialing back bets on more aggressive cuts.

Elsewhere, dockworkers ended a three-day strike, easing supply chain concerns in key sectors like autos and retail. Commodities had a strong showing, with WTI crude oil up 0.91% to $74.38 amid geopolitical tensions, while gold prices slipped slightly.

Treasury yields spiked, with the 10-year yield climbing to 3.967%, as the U.S. dollar hit a 7-week high against global currencies following the labor report.

Looking ahead, next week brings several key events, including Amazon Prime Days, the Tesla Robotaxi event, and earnings from PepsiCo and JP Morgan.

Movers & Shakers

• (+) Abercrombie and Fitch ($ANF) +9% after JPMorgan added the retailer to its positive catalyst list.

• (–) Rivian ($RIVN) -3% because the EV maker cut its production forecast

• (–) Spirit Airlines ($SAVE) -25% after the airline is reportedly weighing declaring bankruptcy.

Private Dealmaking

• Apollo Global Management in talks to acquire Barnes Group for around $2 billion

• Blue Owl Capital in talks to buy IPI Partners for around $1 billion

• Zepz, a money transfer service, raised $267 million

• Avail, a blockchain project, raised $27 million

• Matter Neuroscience, a mobile app for happiness, raised $26 million

• Remofirst, an HR tech startup, raised $25 million

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

_{BOOK OF THE DAY}

Just Work

From Kim Scott, author of the revolutionary New York Times bestseller Radical Candor, comes Just Work―how we can recognize, attack, and eliminate workplace injustice―and transform our careers and organizations in the process.

We―all of us―consistently exclude, underestimate, and underutilize huge numbers of people in the workforce even as we include, overestimate, and promote others, often beyond their level of competence. Not only is this immoral and unjust, it's bad for business. Just Work is the solution.

Just Work is Kim Scott's new book, revealing a practical framework for both respecting everyone’s individuality and collaborating effectively. This is the essential guide leaders and their employees need to create more just workplaces and establish new norms of collaboration and respect.

"Urgent and actionable, this passionate manifesto will be a welcome addition to any leader’s desk."

_{DAILY VISUAL}

Start Up Exit Probabilities

_{WHAT ELSE TO READ}

The Best PE, VC & M&A Newsletter

Buysiders is our deals newsletter to bring y’all the best insights on deals around Wall Street.

Every month, you get insider details on the month’s top 3 deals. For this month’s edition, we cover the following deals:

1. Verizon acquired Frontier Communications for $20 billion.

2. LVMH invested in Moncler’s parent company.

3. AngloGold Ashanti acquired Centamin for $2.5 billion.

Read the full edition here and subscribe to the newsletter below.

_{DAILY ACUMEN}

Adaptability

Life is full of unexpected changes, and the key to thriving is adaptability. Charles Darwin once noted that it’s not the strongest or the smartest who survive, but those who are most adaptable to change. Being adaptable means being open to new possibilities and willing to change your approach when circumstances shift.

Embracing adaptability means recognizing that change is an opportunity for growth. Every challenge can be a chance to learn something new, develop new skills, or gain a different perspective. 

Adaptable people are those who turn setbacks into stepping stones, transforming challenges into opportunities. By viewing change as a constant and natural part of life, we can build the mental flexibility needed to respond effectively and maintain a positive outlook. Remember, adaptability is not just about survival; it's about thriving in an ever-changing world.

_{ENLIGHTENMENT}

Short Squeez Picks

• 4 signs that climbing the corporate ladder may not be for you

• New York City’s new tourism trends

• The best diet for happiness isn’t about what you eat, but rather how

• Working in-office 5 days a week might be a myth

• Why being real is the new power play for CEOs

_{MEME-A-PALOOZA}

Memes of the Day