THEME: Solstice — long days
June 22, 2022 —
Michael’s CIO (Check-It-Out) Report on the week just past — events, sarcasm, and global macro reflections
THEME: Solstice — long days
GL🌏BAL
Strike Korea🚚 Striking Korean truckers returned to work after 8 days, clearing another global supply chain disruption that had onlookers concerned — The container backlog at ports may take a few weeks to clear
EUkraine: Expect European Union (EU) leaders to ratify last week’s recommendation by the European Commission to grant Ukraine and Moldova EU candidate status — EU membership would further establish them as sovereign European states and open up the flow of goods, services, and workers with other EU members— Candidacy status for the country of Georgia will be deferred
Double Dutch: French multinational bank BNP Paribas may want to buy Dutch government owned ABN Amro🏧 — Will need to jump through a lot of hoops to get that deal done
Rewrite: Right-wing Marine Le Pen’s National Rally party rewrites French politics by winning enough seats to take majority away from President Emmanuel Macron’s centrist alliance — The hard-line leftist Nupes coalition won even more seats than Le Pen
BIZNOMIC$
Warehouse: Prologis, a warehouse real estate income trust (REIT), will acquire peer Duke Realty for $26B, including debt, in an all-stock deal — in addition to its completed warehouses, this deal will add 11MM square feet of warehouse development
Targa boost: Targa Resources (TRGP) will buy Lucid Energy from private equity consortium Riverstone Holdings and Goldman Sachs for $3.55B — creates opportunities to boost activity on downstream natural gas liquid assets — Lucid’s natural gas gathering and processing customers include Chevron, ConocoPhillips, ExxonMobil and EOG🛢
Cryptoplode: Some cryptocurrencies and the web3 venture backed startups tied to crypto are freezing up or imploding as values crumble. Celsius Network is insolvent and has halted withdrawals. Coinbase laid off nearly 20% of its staff — NFT digital art priced in crypto also tumbled — The latest meltdown in cryptocurrency prices has dampened Web3 deal making and valuations
Spirited Away: Following up from April 11, Jet Blue has upped its bid for Spirit Airlines to $3.4B — Sprit has pending orders for 120 Airbus jets✈a valuable bonus since there is a a shortage of new jets and a 2 to 3 year wait for jet delivery slots — There is also a pilot shortage👩🏼✈️
L’Eggo my Eggo🧇 Kellogg will split into 3 companies; snacks (Cheez-Its, Eggo, Pop-Tarts, Pringles), U.S. cereals (Frosted Flakes, Rice Krispies, Froot Loops, Kashi, Bear Naked), and plant-based food (Morningstar, Gardenburger) — Also, competitor Mondelez (think Oreo cookies) will buy Clif Bar for $3B
Wheels on Hel: Local electric bike sharing company Wheels to be bought by New York-based Helbiz🚲
CONTENT
RIPIE: Rest in peace Internet Explorer (IE). After 27 years, Microsoft terminated IE on June 15. Users will be redirected to Microsoft Edge💻 — If you’ve never heard of IE, that’s okay too
A pox upon thy name: The World Health Organization will rename monkeypox to reduce discrimination and stigmatization associated with the name🦠
Art Basel in Switzerland was back in full swing last week with solid sales🖼
PERSONAL
TopCredit: Met with private credit, private equity, and local investment peers at the new TopGolf in El Segundo🏌🏽♂️
Venture: Find me this week at a venture capital/venture CEO networking event in Santa Monica
CFA ball: I’ll also play at the CFA L.A. Pickleball Tournament 🎾
Make it a great week😊
Michael
~~~
Michael Ashley Schulman, CFA
Partner & Chief Investment Officer
Running Point Capital Advisors, your family office
“We deliver custom investment solutions, innovations, and unique perspectives to you and your family.”
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Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-22–35
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