Good morning! After nearly 20 years of flirting, DirecTV finally bought Dish for $1 (and billions in debt). Powell isn’t rushing to cut rates, while China’s stock market had its best day since 2008. And hedge funds are facing margin calls thanks to surging Chinese stocks. AI chipmaker Cerebras filed for an IPO to challenge Nvidia, and Wall Street is forming super teams to battle for the $1.7T private credit market. Plus, young men in the U.S. are falling behind their female peers.

Did you know you can earn points on rent payments? Bilt rewards you for rent, travel, dining, fitness classes, and more. Sign up for free.

_{SQUEEZ OF THE DAY}

LVMH 🤝 Moncler

LVMH, the French luxury giant behind brands like Louis Vuitton, Dior, and Fendi, is making moves to expand its empire once again, this time with Moncler in its sights.

Bernard Arnault, the founder and CEO of LVMH, worth approximately $200 billion, is behind the recent investment in the Italian luxury brand known for its pricey winter jackets.

But this isn’t your typical M&A deal. LVMH has agreed to take an indirect stake in Moncler through a holding company called Double R, controlled by Moncler’s CEO, Remo Ruffini. LVMH’s initial investment gives it a small 1.6% indirect stake in Moncler, with the option to increase this to around 4% over the next 18 months.

While LVMH insists Moncler will remain independent, the luxury sector’s history of consolidation has many analysts speculating that this could be the first step towards a full acquisition.

Moncler, famous for its $2,000+ jackets (some costing up to $7,000), gained mainstream attention in 2015 when Drake sported the brand in his "Hotline Bling" music video (pictured above).

Despite challenges in 2023, with shares dropping as much as 13%, Moncler has outperformed many of its peers, rising 2.5% year-to-date. The brand posted an 11% revenue increase in the first half of 2024, largely driven by growth in Asia, even as other European luxury brands struggled.

Takeaway: The luxury market as a whole has been facing headwinds, with slowing demand from China, a critical growth engine, hitting many brands hard. LVMH’s investment in Moncler could act as a strategic backstop, ensuring Moncler has financial support if needed. But, judging by the prevalence of Moncler jackets on Park Avenue in February, it doesn’t seem like the brand is in need of a lifeline just yet.

_{PRESENTED BY BILT REWARDS}

It’s Rent Day—spits out coffee—You Can Earn Points On Rent?!

Yup. And on Rent Day (the first of each month), you also get exclusive benefits as a Bilt member. If you create a free Bilt account today, you can activate complimentary Gold Status with Hilton Honors to unlock exclusive benefits at Hilton hotels for the rest of the year. 

Hilton Honors Gold Status can get you:

• Complimentary space available room upgrades *

• Late check-out

• Daily food and beverage credit *

• 5th night free on reward stays

Bilt partners with hotels and airlines around the world to award you with VIP experiences that make travel destinations feel a home away from home. Simply sign up today, activate Hilton Honors Gold Status, and explore your other Bilt travel, neighborhood, and rent benefits.

Become a Bilt Member today.

_HEADLINES

Top Reads

• DirecTV, Dish merge and create largest US pay-to-TV provider (CNBC) 

• Powell says more interest rate cuts are ahead, but Fed is not in a hurry (Axios)

• Quant hedge funds facing margin calls as Chinese stocks surge (YF)

• Time running out to avoid crippling US port strike (CNN)

• Newsom vetoes bill to let California ban private equity deals for health care (Axios)

• Wall Street forms super teams to fight for $1.7 trillion private credit market (YF)

• Epic Games sues Google, Samsung over app store scheme (WSJ) 

• Stocks break September slump as Q3 ends (YF)

• Google to invest $1B in Thailand to accelerate AI growth (CNBC)

• AI chipmaker Cerebras files for IPO to take on Nvidia (CNBC)

• America’s young men are falling even further behind (WSJ)

_{CAPITAL PULSE}

Markets Rundown

Market Commentary

U.S. equities kicked off the week with modest gains, supported by last week's strong performance and led by defensive sectors like health care and utilities.

Despite rising tensions in the Middle East and cautious remarks from Fed Chair Powell, investor optimism remains high, as evidenced by the S&P 500’s three-week winning streak.

Oil prices edged lower, balancing geopolitical risks with shifting production expectations, while interest rates slightly increased and the yield curve flattened, hinting at potential adjustments to future Fed rate cuts.

Additionally, the market is bracing for a possible East Coast port strike, which could disrupt supply chains and influence consumer prices during the upcoming holiday season. 

The third quarter concluded robustly, with both equities and bonds achieving solid gains and diversified portfolios benefiting from a broader market leadership beyond just growth and tech stocks.

Looking ahead, attention turns to key employment data this week, with investors hoping for a "goldilocks" scenario that indicates steady economic growth without triggering inflation pressures, thereby supporting the Fed’s potential rate-cut strategy.

Movers & Shakers

• (+) Nio ($NIO) +2% after shareholders invested $1.9B into the EV company.

• (–) EchoStar ($SATS) -11% because the company divested its pay-TV business to DirecTV for debt relief.

• (–) Stellantis ($STLA) -13% because the owner of Chrysler and Jeep slashed its pricing forecast.

Private Dealmaking

• DirecTV bought Dish Networks for $1, plus the assumption of $9.75 billion in debt

• Marsh bought McGriff Insurance Services, an insurance broker, for $7.75 billion

• Gogo bought Satcom Direct for $600 million 

• HungryPanda, a food delivery service, raised $55 million

• Qodo, an Israeli AI code generation and testing tool, raised $40 million

• Mantel Capture, a carbon capture startup, raised $30 million

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

_{BOOK OF THE DAY}

The Money Trap

Veteran Morgan Stanley banker Alok Sama thought he'd seen it all. Then he found himself chief dealmaker at the most influential technology investor in the world―SoftBank, the backer of Arm Holdings, Yahoo, Nvidia, TikTok, Uber, T-Mobile, Alibaba and WeWork.

The Money Trap is Sama’s thrilling, stranger-than-fiction personal odyssey featuring his experiences alongside SoftBank’s iconic founder, Masayoshi Son, a visionary maverick who wants to be remembered as “the crazy guy who bet on the future” and whose mission is “happiness for everyone.”

Sama takes the reader on a wild journey as he consorts with A-list CEOs and heads of state, and negotiates mega-deals on a Gulfstream jet, Son’s sanctuary with its exquisite Japanese garden, and a waterside restaurant in the Turkish Riviera―all while contending with a mysterious dark-arts smear campaign that takes a toll on his private life.

This fascinating and humorous saga provides a unique insider perspective on the insanity of high finance and venture investing. Written with self-deprecating wit, unflinching honesty and searing introspection, The Money Trap is ultimately a morality tale: in life, as in technology investing, more money isn’t always the answer.

“A gripping and entertaining memoir that shines a rare light on an industry that is disrupting our lives.”

_{DAILY VISUAL}

China's Stimulus Rally

_{PRESENTED BY KALSHI}

Who Will Be the Richest in 2024? Musk, Bezos, Arnault—Make Your Call

Elon Musk reclaimed the title of the world’s richest person in 2023, but the race for 2024 is wide open. Will it be Musk, Bezos, or maybe even Zuckerberg? With billionaires’ fortunes surging past $14.2 trillion, now’s the time to put your prediction skills to the test.

Kalshi lets you place bets on who will finish 2024 at the top. Get it right, and you could cash in on more than just bragging rights.

_{DAILY ACUMEN}

Deliberate Practice

Deliberate practice, a term coined by psychologist Anders Ericsson, is a systematic approach to skill improvement. Unlike casual practice, it involves focused, goal-directed efforts to enhance specific aspects of performance. 

Key elements include immediate feedback, repetition, and pushing beyond one's comfort zone. Deliberate practice explains how top performers in various fields achieve mastery. It challenges the notion of innate talent, suggesting that extraordinary abilities are largely the result of intense, purposeful training.

By applying deliberate practice principles, we can accelerate skill acquisition in any area. This concept emphasizes the importance of quality over quantity in learning and highlights the role of sustained effort in achieving excellence.

_{ENLIGHTENMENT}

Short Squeez Picks

• A billionaire on why passion is the No. 1 trait for success

• 9 lifestyle choices that result in regret later in life

• 10 commandments of feedback

• 4 traps to avoid when you transition into a leadership role

• How luxury gyms became the new third place

_{MEME-A-PALOOZA}

Memes of the Day