Korean Traders Have Resurrected

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OpenAI's models went rogue during testing in an "unprecedented cyber incident," an ethical fintech boss tried setting up deals with a Russian arms dealer, Citigroup poached five senior tech bankers from rivals, PE assets stuck in 'zombie funds' are at a record high, and burned Korean traders are already making a comeback.

Plaid's latest report explores how lenders are using cash flow data to sharpen underwriting strategies. No more relying on just credit scores. Get it here.

Let's dive in.

Before The Bell

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Markets

• US stocks closed mostly flat yesterday as investors awaited earnings against a backdrop of rising oil prices

  • S&P fell for a fourth day in five

• Korea's KOSPI index recovered 10% in just two days as the margin unwind ends

• US 2Y yield rose to 4.3% to the highest since March 2025

Earnings

• Alphabet beat Q2 revenue estimates but missed on earnings and boosted FY capex to $200B as it pours money into AI infrastructure to keep pace with booming demand and competition (CNBC)

• Tesla beat Q2 revenue estimates but missed on earnings as FCF turned negative and margins narrowed as the firm pours into AI and other R&D projects as it shifts focus away from EVs (CNBC)

• IBM missed Q2 earnings and revenue estimates and lowered its FY forecast as sales of data center mainframes sunk 42% as customers shift budgets towards AI hardware (CNBC)

• AT&T missed Q2 revenue estimates but beat on earnings on record combined fiber and fixed wireless net additions and its highest consumer postpaid wireless account growth in over three years (WSJ)

• What we're watching this week:

  • Today: Intel, American Airlines

• Full calendar here

Prediction Markets

• Markets are still not certain of the Fed's upcoming rate decision just days before the FOMC meeting

• Trade event contracts on Polymarket, the world's largest prediction market

Headline Roundup

• Ethical fintech boss tried to set up deals with Russian arms dealer (FT)

• House passed a bill banning Congress members from trading stocks (CNBC)

• US-Iran peace talks aren't likely as attacks widen (BBG)

• High-risk bets that burned Korean traders are making a comeback (BBG)

• Hong Kong traders cling to lunch break exchange wants to scrap (BBG)

• Private capital misses out as IPO and deal boom lifts Wall Street banks (FT)

• PE assets stuck in 'zombie funds' are at a record high (WSJ)

• Financial services sector seen as focus for activist campaigns (BBG)

• Insurers get creative with risky debt as regulators play Whac-A-Mole (WSJ)

• Citigroup poached five senior tech bankers from rivals (RT)

• OpenAI's models went rogue during testing (CNBC)

• Iran strikes on CIA facilities hint at possible Russia role (RT)

• Bill Gates's personal emails weren't part of Epstein review (WSJ)

A Message from Plaid

Cash (flow) is king

The credit score isn't dead. But it's no longer enough. A credit score tells you what happened. Cash flow data tells you why.

As underwriting evolves, lenders are looking beyond traditional credit models to capture stronger signals, improve portfolio performance, and approve more qualified borrowers without taking on unnecessary risk.

That's where cash flow data comes in.

Plaid's latest report, built with Datos Insights, explores how leading lenders are using cash flow data to sharpen underwriting strategies and stay ahead of the curve. Inside, you'll learn:

• How to reach consumers traditional credit data misses

• The risk factors credit scores don't capture, but cash flow data does

• Why 80% of lenders using cash flow data report better portfolio performance

Credit scores still have a seat at the table. They just shouldn't be sitting at the head of it.

Download the free report.

Deal Flow

M&A / Strategic

• Logistics firm Prologis is set to acquire the UK's largest landlord Segro after securing board support board for an improved $18.7B cash-and-share offer

• Penske Corp and Mitsui, the controlling shareholders of Penske Automotive Group, offered to take the $14B-listed auto dealership chain private

• Brookfield agreed to acquire battery storage developer Aypa Power from Blackstone for $7B, including debt

• PE firm Platinum Equity is nearing a deal ​to acquire a 50% stake ​in Nestle's European water business at a $5.7B valuation

• John Paulson-backed NovaGold Resources will obtain full ownership of the Donlin Gold project in Alaska in a $4.2B all-stock deal

• Biotech manufacturing firm Repligen will buy BioLife Solutions in a $1.5B cash-and-stock deal

• Electronic equipment maker TE Connectivity will acquire power management and filtering solutions maker ‌Astrodyne from PE firm Tinicum for $1.4B

• BayPine and TSG-backed Mavis Tire Express Services will acquire auto-service chain Pep Boys from Carl Icahn's Icahn Enterprises for $700M cash

• Japan Hotel REIT Investment Co. plans to acquire a Tokyo hotel property from TPG Asia Real Estate for $860M

• KKR-backed Vertis Infrastructure Trust emerged as the frontrunner to acquire eight roads from an Indian developer Megha Engineering & Infrastructures for $800M, including debt

• $475M-listed KKR Real Estate Finance Trust is considering a merger or sale

• Investment firm Samos Energy offered to acquire UK's Capricorn Energy for $360M cash weeks after it agreed to a near-identical proposal ​from Genel Energy

• South African retail holding company Pepkor Holding. will combine its fintech firm Flash with rival Shop2Shop in a $95M cash-and-stock deal

• Canadian senior housing operator Prima Living acquired nine retirement communities from Chartwell Retirement Residences for $84M

• Colombian food conglomerate Grupo Nutresa will acquire Venezuelan ice cream maker Tio Rico from automotive company Mack de Venezuela for $30M

• Permira and Accel-backed Dutch auction platform Catawiki is exploring a sale

• Thai travel retail group King Power International Group is exploring a sale of UK soccer club Leicester City FC

• Fluxus Oil, Gas & Energy, a venture of Brazil's billionaire Batista brothers, acquired A&B Oil and Gas, which owns a 49% a stake in Venezuela's Petrolera Roraima with Venezuela's national oil company PDVSA

VC

• UK fintech Revolut is selling secondary shares at a $115B valuation

• European AI startup Mistral is in talks to raise funds from Samsung at a $23B valuation

• Atom, the physical AI startup of Uber founder Travis Kalanick, raised a $1.7B round from a16z, Uber, and others

• Glow, a cybersecurity startup focused on AI-native endpoint security, raised a $180M in Series A at a $1.2B valuation led by Sequoia, Cyberstarts, Greenoaks, and Redpoint Ventures

• Cathedral, a military cyber startup of ex-DOGE employees, raised a $160M round at a $1.4B valuation led by a16z and Sequoia

• Candid Health, an autonomous RCM platform, raised a $120M Series D led by Sixth Street Growth

• Genius AI, a wellness and in-person services platform, raised a $44M Series D at a $1.15B valuation led by Lux Capital

• Arrakis, an AI deployment company for industrial operations, raised a $30M Series A led by Blossom Capital

• 1872, an AI-native manufacturing startup, raised a $15M seed round led by private funds advised by The O.H.I.O. Fund

• Passionfroot, a German startup building a marketplace connecting B2B creators with brands, raised a $15M Series A led by Insight Partners

• Neon Commerce, a fintech focused on D2C commerce for games, raised a $13M Series A from a16z, Renegade Partners, and more

• Yope, a private, algorithm-free social networking app, raised a $12.3M seed round led by Northzone

Access the complete VC deal flow and data on Fundable

IPOs / Listings / Issuances / Block Trades

• Chinese optics firm Innolight launched a $7B Hong Kong listing, the city's biggest in seven years

• MSEDCL, the power distribution company in India's richest state, shortlisted banks for a $500M-$1B India IPO

SPAC / SPV

• Data center operator TECfusions will merge with Apex Treasury in a $4B deal

• Critical mineral refining company Nth Cycle will merge with Kensington Capital Acquisition at a $585M valuation

Debt

• Kuwait sold $6B of dollar bonds despite Iran strikes

• Crypto firm Galaxy Digital is planning to raise $3.5B in a debut junk-bond sale to fund a data center tied to CoreWeave

• Blackstone is finalizing a group of banks to underwrite a $3B loan for the construction of AirTrunk's new data center in Australia

• Vitamin Well raised $2.2B in a cross-currency loan offering to fund its acquisition of protein-bar maker EMPWR Nutrition Group

• Portugal will use $875M on proceeds from the sale of its stake ​in Novo Banco to France's Groupe BPCE to pay ‌down public debt

• Indonesian energy firm TBS Energi Utama is seeking $100M in private credit for its Singapore-based waste management unit Cora Environment

• Tanzania is gauging investor appetite for its first international bond sale in over a decade

Bankruptcy / Restructuring / Distressed

• Aston Martin raised $735M in fresh funding from BlackRock's HPS Investment Partners to bolster liquidity

• Pool supplier Leslie's is considering filing for Chapter 11 bankruptcy

Funds / Secondaries

• Real estate investor Townsend raised $2B for its fourth real estate secondaries fund

• MM PE firm TruArc Partners raised $1.5B for its fifth fund

• India's Transition VC launched a $150M fund to invest across India's energy transition value chain

• India's 360 One Asset is preparing to launch its sixth private credit fund

• Blackstone launched new private market funds for retail investors with Vanguard

Crypto Sum Snapshot

• The Bitcoin slump is crushing Bitcoin hoarding companies

• Senate crypto bill would ban federal officials, including presidents, from issuing digital assets

Crypto Sum compiles the most important stories on everything crypto. Read it here.

Exec's Picks

• WSJ published a hit piece on what went on behind closed doors in the moments leading up to IBM's historic stock collapse.

• Also, Donald Trump Jr's 'America first' investment firm 1789 Capital is on a hot streak. 200% returns is not too bad (of course, considering the insider knowledge).

Financial Services Recruiting

If you're a junior banker looking for your next career move, check out Litney Partners, a recruiting firm established by Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates across private equity, hedge funds, venture capital, growth equity, credit, and investment banking.

We're currently seeking talent for some incredible roles. Head over to Litney Partners to drop your resume / create your profile and we'd love to get in touch!

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*DISCLAIMER: Investment advice provided by Autopilot Advisers, LLC ("Autopilot"), an SEC-registered investment adviser. Past performance does not guarantee future results. Investing carries risks, including loss of principal. As always, be smart out there. Litquidity is compensated to promote AutoPilot. Compensation details available upon request.