Good Morning and Happy Friday! Wholesale inflation mostly cooled last month, and all signs point to a rate cut next week. Meanwhile, private equity is viewing Big Tech breakups as a selling opportunity. A federal judge cleared the way for betting on U.S. elections, and Apollo is selling $1 billion of products per month to the wealthy. And mortgage rates fell to the lowest level in over a year as wannabe home buyers brace for rate cuts. Goldman Sachs' CEO downplayed a firm’s report that Harris mentioned during the debate. Plus how to stay sane working in a bedroom office.

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Wall Street's 80-Hour Week

In recent months, Wall Street has been raising concerns about working conditions, especially after the tragic death of a Bank of America associate in May. We also drafted an Open Letter to all Wall Street firms urging action.

It seems like banks might finally be listening.

Earlier this week, JPMorgan agreed to cap junior bankers’ hours at 80 per week. While the cap only applies if you’re not on a live deal, it’s all around a step in the right direction. This move aligns with New York state's limits on working hours for medical residents, marking the first time JPMorgan has set such a cap.

JPMorgan also has a “pencils down” period from 6pm on Friday to 12pm on Saturday. The firm says that an 80-hour week might be 8:30am to 10pm, which sounds reasonable.

But some are wondering if the cap is for fluff. Investment banking analysts have been known to work 120-hour weeks on live deals - and there may be periods where basically all junior bankers are on live deals. Realistically how many hours are analysts who aren’t on live deals really working? It can’t consistently be materially over 80. Could a 60-hour cap accomplish more than enough?

Bank of America is also rolling out a new timekeeping tool that will go live next week. Junior bankers will need to log hours daily rather than weekly and provide an outlook on their capacity for more work.

Earlier this year, a Wall Street Journal report found that junior bankers at Bank of America were encouraged to lie and underreport the amount of hours they were working, so the firm is finally taking things more seriously. 

Takeaway: Wall Street usually follows Jamie Dimon’s lead, so you could expect more firms to follow suit by capping young bankers’ hours. But still - with the impact of these new rules it’s unlikely that bankers are routinely putting in 80+ hour weeks when they’re not on live deals. Time will tell if the new 80-hour cap is really just a repackaged fruit basket.

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_HEADLINES

Top Reads

• Wholesale inflation mostly cooled last month (YF)

• Private equity views Big Tech breakups as selling opportunities (Axios)

• This college has the highest-paid graduates (CNBC)

• Goldman Sachs CEO downplays firm's report on Harris' economic plan (Fox)

• Apollo is selling $1 billion a month of products to the wealthy (BB)

• Federal judge clears way for betting on U.S. elections (Axios)

• Mortgage rates fall to lowest level since February 2023 (YF)

• Why you should feel good about the American economy (Axios)

• Here’s the deflation breakdown for August 2024 (CNBC)

• BlackRock expands its private equity reach (Axios)

• Interest payments on the national debt top $1 trillion (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed higher on Thursday, extending the week's gains as a rebound in the technology sector, driven by renewed optimism around AI, boosted major indices.

Most sectors, including technology, communication services, and consumer discretionary, finished higher, while real estate and financials lagged.

Recent inflation data shows a slower-than-desired decline, and the labor market remains mixed, keeping investor focus on the Federal Reserve's meeting next week, where a 25-basis-point rate cut is widely anticipated.

Movers & Shakers

• (+) Petco ($WOOF) +11% because the pet retailer announced strong earnings.

• (+) Kroger ($KR) +7% after the grocery market chain beat revenue expectations.

• (–) Moderna ($MRNA) -12% after the drugmaker slashed its R&D budget.

Private Dealmaking

• Mastercard bought Recorded Future for $2.65 billion

• F2G, a therapies developer, raised $100 million 

• Infammatix, a molecular diagnostics startup, raised $57 million

• Habitat Health, a home care support provider, raised $50 million 

• Cobre, a payments infrastructure startup, raised $35 million

• Aembit, an access management solutions provider, raised $25 million

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

_{BOOK OF THE DAY}

Average Is Over

The widening gap between rich and poor means dealing with one big, uncomfortable truth: If you’re not at the top, you’re at the bottom.

The global labor market is changing radically thanks to growth at the high end—and the low. About three quarters of the jobs created in the United States since the great recession pay only a bit more than minimum wage. Still, the United States has more millionaires and billionaires than any country ever, and we continue to mint them.

In this eye-opening book, renowned economist and bestselling author Tyler Cowen explains that phenomenon: High earners are taking ever more advantage of machine intelligence in data analysis and achieving ever-better results. Meanwhile, low earners who haven’t committed to learning, to making the most of new technologies, have poor prospects. Nearly every business sector relies less and less on manual labor, and this fact is forever changing the world of work and wages. A steady, secure life somewhere in the middle—average—is over.

With The Great Stagnation, Cowen explained why median wages stagnated over the last four decades; in Average Is Over he reveals the essential nature of the new economy, identifies the best path forward for workers and entrepreneurs, and provides readers with actionable advice to make the most of the new economic landscape. It is a challenging and sober must-read but ultimately exciting, good news. In debates about our nation’s economic future, it will be impossible to ignore.

“Widely acclaimed as one of the world’s most influential economists, Tyler Cowen returns with his groundbreaking follow-up to the New York Times bestseller The Great Stagnation.”

_{DAILY VISUAL}

Love is Making a Comeback

_{PRESENTED BY BILL}

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_{DAILY ACUMEN}

Power of No

We often think that success comes from saying "yes"—to opportunities, to requests, to every new challenge that crosses our path.

But the true art of achievement often lies in the ability to say "no." By saying no to distractions, to tasks that drain rather than energize, and to commitments that don’t align with our core goals, we reclaim our most precious resource: time.

The world is full of demands, but not all of them deserve our attention. Learning to say "no" is not about being negative; it’s about being selective, focusing on what truly matters.

It creates space for deep work, meaningful connections, and genuine rest—things that are often sacrificed on the altar of busyness.

Research shows that people who master the art of saying "no" experience less stress, greater clarity, and more fulfillment.

So, the next time you're tempted to say yes out of habit or guilt, pause and ask yourself: Is this moving me closer to where I want to be? Sometimes, a firm "no" is the most powerful step forward.

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Short Squeez Picks

• 3 tactics highly persuasive people use to argue

• Are heavy weights or high reps better for you?

• 10 affordable watch alternatives

• How to stay sane working in a bedroom office

• Is tennis or pickleball a better workout for you?

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Memes of the Day