Good Morning! Dollar Tree unloaded its disastrous Family Dollar investment, selling to private equity for $1 billion after purchasing the chain for $8 billion a decade ago. Trump’s new 25% tariffs on cars caused the market to tank after three positive (and non-tariff announcement) days. And UPS rolled out a much-needed tariffs calculator.

Fidelity is set to launch its own stablecoin, OpenAI expects revenue to triple to $12.7 billion this year, and Amazon snagged LeBron’s "Mind the Game" podcast.

Plus: Citadel roasted a former employee in a Bloomberg article after he was poached by Balyasny, and Barclays dropped the lowest S&P 500 target on Wall Street.

The IRS may be on the chopping block. Today’s partner allows you to bet on their demise.

_{SQUEEZ OF THE DAY}

Bonus Day Massacre

HSBC just pulled off one of the most savage moves on the Street: firing investment bankers on the exact day they were supposed to find out their bonuses, and then giving them nothing.

Last month, the London-based bank handed out pink slips to VPs and above in its UK investment banking division right before bonus announcements. The bankers, who’d been bracing for cuts after HSBC said in January it would exit M&A and ECM businesses outside of Asia and the Middle East, were still expecting at least partial bonuses for 2024 performance.

Instead? A big, fat cheque for $0.

“It’s very unlike HSBC,” one insider said, noting the bank’s reputation for taking care of its people. Apparently, new CEO Georges Elhedery doesn’t do warm and fuzzy.

Since taking over in September, Elhedery has made it clear he’s playing hardball on costs. HSBC is aiming to save $300 million in 2025 and slash $1.5 billion from its annual cost base by the end of next year.

The investment banking arm (which was never a major revenue driver compared to commercial and retail banking) has already seen cuts in Hong Kong. A broader restructure includes merging units, axing senior bankers, and splitting operations into “eastern” and “western” markets.

Meanwhile, Elhedery’s own bonus structure is a different story. His proposed pay package could hit £19.8 million, if HSBC stock pops 50%. That’s nearly double what his predecessor Noel Quinn earned in 2023.

Takeaway: Giving bankers no bonuses on Bonus Day and firing them is just about the worst thing an employer can do to an employee. HSBC is not known to have stellar reputation on the street and this definitely won't be helping the Vault guide reviews. HSBC may have saved millions, but it cost itself talent for years to come.

_{PRESENTED BY KALSHI}

The IRS Is Out. The ERS Is In? Maybe.

Americans making under $150k might soon pay zero income taxes—depending on how much the U.S. can rake in from tariffs.

Enter the External Revenue Service, an agency first proposed by Commerce Secretary Lutnick, designed to collect revenue from import duties. The plan would push companies to manufacture in the U.S., while countries like China would effectively help fund American infrastructure through tariffs. Trump has reportedly called it “the greatest idea he’s ever heard.”

Traders on Kalshi are giving the External Revenue Service a staggering 74% chance of becoming a reality. A “yes” bet right now could net you a ~35% return.

_HEADLINES

Top Reads

• Dollar Tree to sell Family Dollar for $1B, 10 years after buying it for more than $8B (Fox)

• Stocks slid after Trump announced new auto tariffs (YF)

• Amazon snags LeBron podcast (YF)

• Fidelity plans to launch stablecoin (CT)

• UPS is making it easier for shoppers to see added cost of tariffs (BB)

• Boston Celtics sale may test NBA’s private equity rules (Axios) 

• OpenAI expects revenue to triple this year to $12.7B (CNBC)

• Tesla shares drop on plunging European sales, concerns about Trump’s tariffs (CNBC)

• Citadel roasts ex-employee that left Balyasny’s in a $50 Million pay deal (BB)

• Treasury Department set to lay off substantial amount of employees (CNBC)

• Musk’s Delaware push joined by private equity (YF)

• Why sports prediction markets are booming (Axios)

• Barclays is the latest bank to slash its S&P 500 outlook (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks Slip as Tech Falters and Tariff Fears Flare

U.S. stocks closed lower Wednesday, ending a three-day rally, as growth sectors stumbled.

A report of tighter NVIDIA regs in China dragged tech down, with tariff buzz adding salt—Trump unveiled 25% auto tariffs from abroad.

Bond yields nudged up, with the 10-year Treasury at 4.35%.

Asia mostly gained overnight; Europe dipped despite tame U.K. inflation.

Durable goods orders rose a surprising 0.9% in February, beating a forecasted -1%, likely firms front-loading pre-tariff buys after January’s 3.3% leap.

Inflation spotlight: Friday’s PCE data looms—headline expected up 0.3% monthly, 2.5% yearly; core at 0.3% and 2.7%.

Recent soft CPI and PPI calmed January’s heat, and tariffs should be a one-time jolt, not a runaway fire.

Fed’s poised to sit tight near-term, aiming for 3.5%-4% rates by year-end if inflation holds steady.

Leadership remix: Energy tops 2025, up nearly 10%, with health care and financials trailing strong.

Last year’s champs—consumer discretionary and tech—lag hard.

Diversification’s the ticket; we’d tilt toward health care and financials, ease off materials and staples.

Movers & Shakers

• (+) Playtika ($PLTK) +20% after BofA double-upgraded the mobile gaming stock.

• (+) GameStop ($GME) +12% because the company confirmed plans to buy Bitcoin.

• (–) Nvidia ($NVDA) -6% after new Chinese rules that could prohibit the production of chips.

Private Dealmaking

• Elk Range Royalties bought Occidental’s royalty acres for $905 million

• Mercury, a banking fintech, raised $300 million

• Island, an enterprise browser provider, raised $250 million 

• Type One Energy, a fusion plant developer, raised $200 million

• Ithaca Energy acquired the U.K. unit of Japan Petroleum Exploration for $193 million

• Walrus, a crypto infrastructure startup, raised $140 million

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

_{BOOK OF THE DAY}

James

When Jim overhears that he is about to be sold to a man in New Orleans, separated from his wife and daughter forever, he runs away until he can formulate a plan.

Meanwhile, Huck has faked his own death to escape his violent father.

As all readers of American literature know, thus begins the dangerous and transcendent journey by raft down the Mississippi River toward the elusive and unreliable promise of the Free States and beyond.

Brimming with nuanced humor and lacerating observations that have made Everett a literary icon, this brilliant and tender novel radically illuminates Jim's agency, intelligence, and compassion as never before.

James is destined to be a major publishing event and a cornerstone of twenty-first-century American literature.

“Folks be funny lak dat. Dey takes the lies dey want and throws away the truths dat scares ’em.”

_{DAILY VISUAL}

Wall Street Bonuses Surge

_{PRESENTED BY KNOPMAN MARKS}

Wall Street’s Top Firms Trust Knopman Marks—You Should Too.

Passing a securities exam isn’t just about memorizing facts—it’s about training the way top finance professionals do.

Knopman Marks is the go-to prep provider for aspiring finance professionals, trusted by the biggest firms on Wall Street. Their approach goes beyond the textbook, equipping candidates with the skills to learn faster, retain more, and apply knowledge under pressure.

• A Smarter Way to Study: Learn using science-backed memory techniques designed for long-term retention.

• More Than Just Instructors: Train with industry veterans who know what it takes to succeed.

• Performance-Driven Results: An adaptive learning process tailored to how you absorb information best.

Pass with confidence and set yourself apart in a competitive job market.

_{DAILY ACUMEN}

Joy Pays

Being joyful isn’t just a mood—it’s a money-maker.

Positive vibes—like joy or curiosity—stretch your financial horizon, sparking long-term planning, savings, and smart investing.

A study of 993 adults backs it: cheerful folks set goals and stash cash, while gloomier ones lean into short-term fixes—think credit card binges or rash bets.

For pros and entrepreneurs, this is gold: cultivate optimism (set goals, give generously), dodge stress (meditate, move), and skip big calls when you’re down.

Emotions aren’t just feelings—they’re your wallet’s secret weapon.

Stay chipper, and watch the wealth pile up, one grin at a time. 😊 

_{ENLIGHTENMENT}

Short Squeez Picks

• Stop multitasking and try time-boxing

• Is Philly the new hot spot for New Yorkers?

• Why empathy is essential for workplace success

• Is caffeine bad for you?

• Mastering gravitas is crucial to standing out

_{MEME-A-PALOOZA}

Memes of the Day