Good Morning and Happy Presidents’ Day! Uber sued DoorDash for anti-competitive practices, and Broadcom and TSMC are exploring deals to split up Intel. 

Argentina’s President Milei faces impeachment calls over a meme coin rug pull. Private equity firms are struggling to raise money in 2025, and JPMorgan ran out of desk space after mandating return-to-office. 

Meanwhile, Ashley St. Clair claims she had Elon Musk’s 13th child—Musk hasn’t confirmed. Plus: NYC singles pay over $20k/year to live alone, and 10 bad time-management habits you should unlearn.

Remove your digital trace and protect your privacy online with Incogni.

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Wall Street’s China Exit

It was only a little over five years ago when Wall Street saw China was a game-changer. The country is home to a $67 trillion financial market, and dealmakers were hopeful there could be a rush of deals, IPOs, and other investment banking fee-generating opportunities.

But in 2025? That might all be coming to an end. Global banks like Goldman Sachs, Morgan Stanley, and JPMorgan have all been retreating. With U.S. regulators tightening the screws and China’s economy stumbling, these banks are slashing headcount and cutting exposure.

Just five years ago, Goldman planned to double its local headcount and Jamie Dimon vowed to bring JPMorgan’s full force to China. But, since Covid, the Chinese economy has been struggling and banks have started pulling back. Chinese stocks have slumped in three of the last four years, all while U.S. equities soared. 

And investment banks realize they couldn’t make as much money as they expected in China, either. Goldman made just $67 million in China over five years, basically a rounding error to the massive global banks. As a result, U.S. banks have dumped nearly 20% of their China exposure as deal flow dried up.

It seems like a retreat is happening across the board. Goldman Sachs has seen its China headcount drop by 15% since 2022, and while UBS’s investment banking team has halved since 2019.

Takeaway: China once looked like an untapped opportunity to these investment banks - home to potentially billions of dollars worth of annual fees. But now, given a struggling Chinese economy and geopolitical tensions, Wall Street banks are being forced to pick a side. For now, they are choosing to walk away.

_{PRESENTED BY INCOGNI}

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_HEADLINES

Top Reads

• DoorDash sued by Uber (YF)

• TSMC and Broadcom eye Intel deals (CNBC)

• Washington DC gets 'Trump Bump' in luxury home market (Fox)

• Argentina’s President Milei faces impeachment calls after promoting cryptocurrency (CNN)

• Conservative influencer who claims to have had Musk’s 13th child (NYP)

• The list of private-equity firms struggling to raise money is growing (WSJ)

• JPMorgan runs out of desk space after banning working from home (YF)

• Musk's xAI to launch Grok 3 chatbot (YF)

• Singles in this city pay the most to live alone (CNN)

• Restaurants warn of weak first quarter, but say sales will pick up later this year (CNBC)

• Automaker considering moving production as Trump gets tough on tariffs (Fox)

• Housing market gets 'Trump Bump' in nation's capital (Fox)

• In-person work doubled over the past year, survey finds (Axios)

• Barclays hands out more in staff bonuses while boss’ pay more than doubles (YF)

• US retail spending plunged last month, falling for the first time since August (CNN)

• BlackRock ties Fink's pay to private market expansion (YF)

• Buyout firms' equity-debt double act is creaking (Reuters)

• How crazy popcorn buckets became big business for movie theaters (CNBC)

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Markets Rundown

Markets End the Week Higher Amid Uncertainty

Stock markets finished the week on a positive note despite concerns about tariffs and inflation.

The S&P 500 gained 1.5%, while the Nasdaq rose about 2.6%. Treasury yields fell as January retail sales came in below expectations, partly due to wildfires in Los Angeles and severe winter weather affecting consumer activity.

The 10-year Treasury yield is now around 4.48%, down from its January high of 4.8%. Year-to-date, the S&P 500 is up about 4%, and the Dow Jones nearly 5%, reflecting economic resilience.

Economic growth remains strong, with the Fed's GDPNow forecasting a 2.9% annualized growth rate for Q1 2025.

Corporate earnings are also robust, with 77% of S&P 500 companies reporting fourth-quarter earnings growth of 16.4% year-over-year.

Movers & Shakers

• (+) Airbnb ($ABNB) +14% after its CEO thinks it can be a one-stop travel shop ‘similar to Amazon’.

• (+) Wynn Resorts ($WYNN) +10% because the casino operator posted a quarterly revenue; profit beat.

• (–) Twilio ($TWLO) -15% after the cloud communications company offered weak earnings guidance.

Private Dealmaking

• Carlyle bought Kaonavi, an HR systems provider, for $325 million

• Prenuvo, an MRI screening provider, raised $120 million

• K2 Space, a satellite platform, raised $110 million

• Sardine, a fraud prevention startup, raised $70 million

• ICON, a 3D printing home company, raised $56 million

• SpotDraft, a contract management platform, raised $54 million

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

_{BOOK OF THE DAY}

Give to Grow

Relationships are the foundation of our long-term business success.

The problem is a million things get in the way: “I don’t have enough time.” “I don’t want to be a nag.” “They are super busy right now. And the biggest one—“I’m just not good at this.”

There’s a simple solution to breaking through all this noise: Giving.

When you focus on giving, you will remove your own mental roadblocks. You’ll be centered on solving the client’s problems and investing in their success. And you can build a system to consistently integrate the right moves into your busy work life.

The real magic to this approach: It’s always your move, and there’s always a way to be helpful. In Give to Grow, Mo Bunnell shows how to develop the growth mindset that keeps the focus on the relationship.

“A great deal might make your year, but a great relationship can make your entire career.”

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The Average Age of US Passenger Cars: 14 Years

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Work Smarter, Not Harder

Finance professionals need tools that work as hard as they do. Hebbia’s Matrix delivers powerful solutions to streamline your workflow and give you a competitive edge.

Here’s how top firms use Hebbia:

• Summarize 200+ earnings calls annually without breaking a sweat.

• Review offering memorandums 5x faster to keep pace with changing markets.

• Identify red flags, compare risks, and extract critical terms in minutes.

• Turn diligence notes into investment memos that impress.

Whether you’re tracking opportunities, managing risk, or drafting memos, Hebbia helps finance teams get more done in less time—without sacrificing quality.

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Career Change

With 42% of workers contemplating a career change, especially millennials and Gen Zers, planning ahead is crucial.

Before making the leap, it’s important to understand the financial implications.

A career transition can mean temporary income loss, educational expenses, and potential lifestyle changes.

It’s vital to assess the market landscape, especially in uncertain economic times, and to anticipate industry trends.

For example, while software engineering was once booming, demand has recently shifted due to advancements in artificial intelligence.

Timing also matters—consider how your financial obligations might change in the next few years, such as mortgage renewals or retirement savings.

A comprehensive wealth plan, possibly developed with a financial adviser, can help you navigate these complexities.

This plan should account for changes in income, taxes, and long-term goals while allowing you to explore different scenarios to make informed decisions.

Whether pursuing a passion, seeking better work-life balance, or aiming for higher pay, a solid financial strategy ensures that your career change aligns with your long-term goals without risking your financial security.

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Short Squeez Picks

• The 10 best hip stretches

• The power of breathwork

• 10 bad time-management habits you should unlearn

• 5 soft skills in 2025 to build sustainable wealth

• Your phone is destroying your social life

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Memes of the Day