Markets Keep Sliding

Markets continue to slide with big tech leading the way, with all eyes on the upcoming Fed Summit.

August 22, 2025

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🎯 In this issue:

  • Banana Bits: Finance headlines that actually matter

  • Market Recap: Markets Slide in Anticipation of Powell’s Speech

  • Technical Trip: Interview Q&A J.P. Morgan

  • What’s Ripe / Rotten: The tastiest and most disgusting stocks 

  • Deal Dispatch: M&A, IPOs, and other transactions 

Market Snapshot

📉 Banana Bits

Market Recap

Markets Slide Ahead of Powell’s Speech

Markets continued to drop today as investors are awaiting Fed Chair Jerome Powell’s highly anticipated speech, which he is set to give on Friday at 10am EST. 

The S&P 500 fell for the fifth consecutive day, its longest drop since January.

Additionally, the Fed Chair’s annual speech in Jackson Hole oftentimes has major policy implications, and the scenario this year is no different. Jerome Powell is expected to outline the Fed’s strategy for the rest of this year. 

Bond traders have also slightly eased bets that the Fed will cut in their September meeting, causing 10-year yields to rise, with money markets indicating approximately a 70% chance. Only one week ago, they were indicating over a 90% chance. 

This change can be slightly attributed to the fact that some members of the Fed have spoken out about how inflation is their main concern, potentially hinting at a hold in September. 

For example, Raphael Bostic, the Fed President of Atlanta, announced he only sees one rate cut through the rest of the year. Furthermore, Jeffrey Schmid, the Fed President of Kansas City, announced that he is significantly more concerned with inflation than the labor market at the current moment. 

Moreover, if Jerome Powell is not in favor of a September rate cut, it is extremely probable that the markets will pull back accordingly. Additionally, given Powell’s current “wait and see” approach to rates, it wouldn’t be surprising if he is more concerned with inflation at the current moment.

From Italy to a Nasdaq Reservation

How do you follow record-setting success? Get stronger. Take Pacaso. Their real estate co-ownership tech set records in Paris and London in 2024. No surprise. Coldwell Banker says 40% of wealthy Americans plan to buy abroad within a year. So adding 10+ new international destinations, including three in Italy, is big. They even reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

What's Ripe

Telix Pharmaceuticals Limited (TLX) 10.2%  

  • Telix’s stock skyrocketed yesterday after they absolutely crushed earnings for the first half of 2025, with revenue surging 63% YoY, putting them on track to meet guidance. 

  • The pharmaceutical company also reported healthy cash flow and overall margins, further propelling investor sentiment.  

NIO Inc. (NIO) 9.3%  

  • NIO’s stock rose yesterday after they announced their latest SUV, the ES8, with preorders opening.

  • Additionally, BlackRock increased its stake in NIO by 12% which further bolstered investor confidence in the EV manufacturer. 

What's Rotten

Hesai Group (HSAI) 11.0% 

  • Hesai Group, a leading LiDAR company, saw its share price plunge yesterday after they missed earnings by an extremely wide margin.

  • HSAI announced an EPS of $0.04, far short of the consensus estimate of $0.76. They also announced $98.6 million in revenue, short of the $847 million consensus estimate, nearly a 90% revenue miss. 

WW International, Inc. (WW) 7.4%  

  • WW (Weight Watchers) saw its stock price take a nosedive yesterday after they delayed their Q2 earnings call, stirring up concerns among investors. 

  • This delay came as a result of a financial restructuring by WW, which they are calling “Fresh Start Accounting.”

🧠 Technical Trip

Interview Q&A from J.P. Morgan

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🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

  • Blackstone has agreed to buy Shermco, an electrical equipment services company, from Gryphon Investors for $1.6 billion.

  • Carlyle has agreed to purchase Intelliflo for $205 million from Invesco.

  • International Papers to sell Fibers business for $1.5 billion.

  • Mediobanca shareholders have rejected a proposal to acquire Banca Generali for 1.6 billion Euros. 

  • Nabor Industries announced they are selling their drill pipe rental business, Quail Tools, to Superior Energy Services for $600 million plus adjustments. 

  • Pollen Street Capital announced plans to acquire Leonard Curtis, a restructuring firm based in London.

  • Insight Digital Partners II is filing for a $150 million IPO.

  • Quadria Capital is currently in talks to sell a minority stake in pharma company Encube Ethicals at a $2 billion valuation.

Banana Brain Teaser

Previous

If n = (33)^ 43 + (43)^ 33, what is the units digit of n?

Answer: 0

Today

During a trip, Francine traveled x% of the total distance at an average speed of 40 miles per hour and the rest of the distance at an average speed of 60 miles an hour. In terms of x, what was Francine’s average speed for the entire trip?

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Charlie Munger

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Chris, Vyom, Ankit, Colin, & Patrick