Good morning! While banks have been fighting over WFH policies, Microsoft claims to have created a new state of matter that could solve “industrial-scale problems.”

Musk’s X is back at a $44 billion valuation as it looks to raise capital to pay down its massive debt. Nikola finally filed for bankruptcy, while Apple dropped a cheaper $599 iPhone 16e.

Citi’s Jane Fraser got Wall Street’s biggest pay bump, making $34.5 million in 2024, a 33% raise. HSBC aims to save $1.8 billion over the next two years, and the S&P hit another record.

Plus: Builders worry interest rates will crush homeowner demand, Trump halted NYC congestion pricing (Governor Hochul vowed to sue), and 5 bad leadership habits that make you look unprofessional.

Security exam? Ace it with Knopman Marks.

_{SQUEEZ OF THE DAY}

Wall Street Nepotism or Dynasty in the Making?

Howard Lutnick has built his career on defying expectations—whether outmaneuvering rivals, rebuilding Cantor Fitzgerald after 9/11, or making a killing in crypto before banks even figured out Bitcoin.

But his latest move? Elevating his two sons, Brandon and Kyle, into leadership at Cantor Fitzgerald (investment bank), BGC Group (brokerage), and Newmark Group (commercial real estate), keeping his empire in the family.

Brandon (27) is now CEO and chairman, while Kyle (28), better known as rapper and DJ "Kxtz," is executive vice chairman. Their resumes include finance gigs but also music careers, summer internships, and lavish Mediterranean vacations.

Their father, now U.S. Commerce Secretary in the Trump administration, insists there’s no conflict of interest, but insiders say control of Cantor remains within the Lutnick orbit. It’s a return to old-school Wall Street, where dynasties ruled before meritocracy became the norm.

Cantor is scrappier than Wall Street’s blue bloods. Lutnick bet big on crypto, Tether, and SPACs while luring top traders from bulge brackets. With their father now in Washington, the Lutnick brothers take charge alongside a trio of co-CEOs. The firm’s longtime COO, Mark Kaplan, is out, signaling a leadership shake-up.

Brandon and Kyle’s backgrounds read more like a socialite’s LinkedIn page than a banking grind. They attended Horace Mann ($65K/year tuition), then Stanford, where their parents donated generously. Kyle DJs at elite venues, while Brandon has been working at Cantor for years, making his presence known.

Cantor’s next generation is stepping in at a crucial time. Crypto, interest rates, and regulation are shifting, and one of their biggest investors—Tether—is under scrutiny. If they keep Cantor growing, they’ll prove themselves more than just their last name. If not, they’ll be another case study in why meritocracies matter.

Takeaway: The Lutnick family just went full Logan Roy. Wall Street loves to pretend it’s a meritocracy, but money and power still flow through the right last names. The real question: will the Lutnick brothers run Cantor like a dynasty, or prove they’ve got the chops? Either way, this is Wall Street’s highest-stakes family business since the Lehman brothers (literally).

_{PRESENTED BY KNOPMAN MARKS}

Don’t Just ‘Pass’ Your Exam–Kick Its A**

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_HEADLINES

Top Reads

• Powerful quantum computers in years not decades, says Microsoft (BBC)

• Musk’s X in talks to raise money at a $44 billion valuation (BB)

• Apple unveils cheaper iPhone 16e powerful enough to run AI (CNBC)

• EV maker Nikola files for Chapter 11 Bankruptcy (CNBC)

• Palantir shares drop after Pentagon budget cut report (CNBC)

• Citi’s Jane Fraser made $34.5 million in 2024 (MSN)

• HSBC to save $1.8 billion over two years under new CEO (CNN)

• Investor fears on overvalued U.S. stocks at 24-year high (Axios)

• S&P 500 pops to another record (YF)

• Builders fall as Toll Brothers sees rates crushing demand (YF)

• Trump admin moves to halt NYC congestion pricing (Axios)

• Governor Hochul says NY will sue to block Trump move (AP)

• Investors aren’t just buying US stocks anymore (YF)

• How the world may retaliate against Elon Musk (Axios)

• Why Trump’s economic advisers are more focused on Wall Street than the Fed (YF)

• Trump suggests 25% tariffs on autos, pharmas, and semiconductors (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks Edge Higher as Housing Market Data Takes Focus

U.S. equity markets closed slightly higher on Wednesday, with the S&P 500 up 0.2% and the Nasdaq gaining 0.1%. Defensive sectors like health care and consumer staples led the way, while most others remained flat to positive. Bond yields ticked lower, with the 10-year Treasury yield at 4.54%.

Markets are off to a strong start in 2025, with the S&P 500 up 4.4% year-to-date. Mid-cap stocks have gained 5.2%, while small caps are up 2.8%. International stocks have also rallied, but strong corporate earnings and economic momentum favor U.S. equities this year.

In the housing market, January housing starts missed expectations at 1.37 million, below the forecasted 1.4 million. However, building permits came in higher than expected at 1.48 million, signaling potential strength in new home construction. With low existing home inventory and elevated mortgage rates, demand for new construction could help support GDP growth through increased residential investment.

Movers & Shakers

• (+) SolarEdge ($SEDG) +16% after the solar company posted a revenue beat; positive cash flow.

• (–) Bumble ($BMBL) -30% because the dating app parent company issued weak guidance.

• (–) Nikola ($NKLA) -39% after the EV maker filed for Chapter 11 bankruptcy.

Private Dealmaking

• Shift4 Payments acquired Global Blue Group, for $1.5 billion

• Saronic, a drone boat builder, raised $600 million 

• Verkada, a video security camera company, raised $200 million 

• PSG invested $150 million in Unscreen, a video monetization platform

• Pocket FM, an audio app, raised $100 million 

• Bambusa Therapeutics, a dermatological biotech, raised $90 million

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

_{BOOK OF THE DAY}

Follow the Science

Through blatant lies, deep cover-ups, and high-level collusion with government and media, Big Pharma has continuously put profits over people with dangerous results.

Now, with her signature investigative rigor and uncompromising commitment to the facts, Sharyl Attkisson takes readers on an shocking journey through the dark underbelly of the pharmaceutical industry.

Follow the Science recounts, in exacting detail, how far the pharmaceutical industry and its supporters in medicine, media, and government will go to protect their profits.

Attkisson provides shocking examples that reveal the disturbing callousness our government, public health officials, and top researchers are capable of when it comes to the most vulnerable among us.

And she explains, in a graphic sense, how some of the most trusted within our society are willing to commit life-threatening ethics violations.

When caught, they circle the wagons and marshal forces to defend their bad acts and take steps to cruelly silence the injured and smear those who would expose them.

“Emmy Award-winning investigative journalist and New York Times bestselling author Sharyl Attkisson exposes the corruption that has ruled the pharmaceutical industry for decades.”

_{DAILY VISUAL}

America's Homebuilder Headache

_{PRESENTED BY PERCENT}

Add a Little Bit of Private Credit

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_{DAILY ACUMEN}

True Growth

The allure of comfort often masks the slow decay of progress.

While we seek ease—whether through material possessions, entertainment, or routine—we unknowingly trap ourselves in stagnation.

True growth emerges in discomfort, where challenges sharpen our resilience and expand our potential.

Research suggests that those who embrace moderate struggle achieve greater success, proving that a life of constant ease is not a life of fulfillment.

The key lies in finding the "sweet spot"—pushing beyond comfort without tipping into panic.

Whether through small daily habits or seeking guidance from mentors, stepping beyond what feels safe is the only way to unlock true achievement.

_{ENLIGHTENMENT}

Short Squeez Picks

• 5 bad leadership habits that make you look unprofessional

• How to make your team’s work more visible

• 3 tips for becoming a first-time manager

• 10 sources of a leader’s confidence (ranked)

• Why Sweden is embracing sleep tourism

_{MEME-A-PALOOZA}

Memes of the Day