Will 2026 be as good as last year for Wall Street's M&A bankers. I think it might be. Here's why.[music] By my count, Wall Street's mergers and acquisitions advisers earned almost $15 billion in fees across the top five Wall Street banks last year. That's a really good year. It's not quite as good as things were in 2021 when there was kind of that post-pandemic [music] catch-up, but overall it was still a pretty extraordinary year.But now, political uncertainty is re-entering the chat. [music] affordability ...

Investment Themes - The J.P. Morgan Healthcare Conference 2026 focused on value creation through internal pipeline prioritization and billion-dollar licensing agreements, rather than large biopharmaceutical mergers and acquisitions [1] M&A Activity - Lower interest rates and deregulation from the Trump era fueled large biopharmaceutical M&A activity in 2025, with a 59.3% increase in total M&A deal value in Q4 2025 compared to Q3 2025, reaching $80.2 billion [2] - Positive sentiment for M&A activity is expected to continue into 2026, supported by reduced uncertainty around Trump's tariff policies [2] Venture Capital and IPOs - Biotech venture financing showed recovery with a 35% increase in Q4 2025 compared to Q3 2025, totaling $5 billion in deal value [2] - Public markets are showing signs of reopening, with a 157% increase in IPO deal volume in Q4 2025 compared to Q4 2024 [3] - Aktis Oncology completed the first biopharmaceutical IPO of 2026, raising approximately $365 million [3] Rumored Acquisitions - Prior to the conference, there were rumors of Merck & Co acquiring Revolution Medicines for $32 billion and Eli Lilly acquiring Abivax for €15 billion ($17.5 billion), though these were not confirmed [4] - Merck & Co's CEO expressed openness to large-scale deals, indicating a strong appetite for significant biopharmaceutical transactions [4] Licensing Agreements - AbbVie announced a licensing agreement with RemeGen for a Phase II bispecific antibody drug, RC148, valued at $5.6 billion [5] - Novartis signed a licensing agreement worth over $1.6 billion with SciNeuro Pharmaceuticals for amyloid beta antibody drug candidates for Alzheimer's treatment [5] - Novartis also entered a $50 million licensing agreement with Zonsen PepLib Biotech for global rights to an undisclosed peptide-based radioligand therapy for oncology [5]

Core Viewpoint - Millicom International Cellular SA (TIGO) shares experienced a significant increase of 6.5% in the last trading session, closing at $56.03, following a period of 1.3% loss over the past four weeks, indicating a potential turnaround in investor sentiment [1][2]. Group 1: Stock Performance - TIGO shares surged due to strong trading volume, with more shares exchanged than usual, reflecting heightened investor interest [1]. - The stock's recent performance contrasts with the overall trend in the past month, where it had previously declined [1]. Group 2: Market Drivers - The uptrend in TIGO shares is attributed to renewed optimism surrounding mergers and acquisitions in Latin America, particularly the consolidation of Tigo with Telefónica assets in Colombia [2]. - TIGO is positioned to capitalize on market opportunities from fiber densification and a diverse range of digital services, including TIGO Money, TIGO Sports, and TIGO ONEtv [2]. Group 3: Earnings Expectations - The company is projected to report quarterly earnings of $1.05 per share, reflecting a substantial year-over-year increase of 425%, with revenues expected to reach $1.56 billion, a 9% increase from the previous year [3]. - The consensus EPS estimate for TIGO has remained stable over the last 30 days, suggesting that stock price movements may be influenced by future earnings estimate revisions [4]. Group 4: Industry Context - Millicom International Cellular is part of the Zacks Wireless Non-US industry, where it holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [4]. - In comparison, Amer Movil (AMX), another company in the same industry, saw a decline of 3.2% in its last trading session and has a Zacks Rank of 2 (Buy) [5].

Summary of Worthington Steel Investor Call on M&A Announcement Company and Industry - **Company**: Worthington Steel (NYSE: WS) - **Acquisition Target**: Klöckner, a company listed on the Frankfurt Stock Exchange Core Points and Arguments 1. **Strategic Acquisition**: Worthington Steel is acquiring Klöckner to strengthen its position in high-value metals processing, enhance shareholder value, and create new opportunities for employees [3][4] 2. **Market Position**: Post-acquisition, Worthington Steel expects to become the second largest service center in North America, expanding its geographic reach and product offerings [4][12] 3. **Synergies and Growth Initiatives**: The acquisition is anticipated to generate approximately $150 million in annual run-rate synergies by the end of 2028, with about 50% expected to be realized in the first year [15][17] 4. **Financial Structure**: The transaction is an all-cash acquisition valued at approximately $2.4 billion, with an expected EBITDA margin of 7% and combined sales of $9.5 billion [15][16] 5. **Cultural Alignment**: Both companies share a focus on safety, operational excellence, and innovation, which is expected to facilitate a smooth integration process [3][5] 6. **Diversification**: The acquisition will broaden Worthington's product portfolio to include aluminum, stainless steel, long products, and downstream fabrication, enhancing resilience against market cyclicality [10][12] 7. **Geographic Expansion**: Klöckner's operations will enhance Worthington's presence, particularly in the southern U.S., where demand is growing due to manufacturing activity and reshoring trends [9][12] 8. **Operational Efficiency**: The integration is expected to improve operational efficiency through procurement savings, logistics optimization, and reduced administrative costs [18][20] Additional Important Content 1. **Shareholder Support**: Klöckner's largest shareholder, Swactim, has agreed to tender their shares in support of the acquisition [8] 2. **Market Dynamics**: The acquisition is seen as timely due to favorable market conditions for consolidation in the steel industry [53] 3. **Long-term Goals**: Worthington aims to achieve over 10% group EBITDA margins, which the acquisition is expected to accelerate [45][46] 4. **Integration Management**: A dedicated integration management office will oversee the synergy capture process, ensuring accountability and clear goals [26][60] 5. **European Market Exposure**: Approximately 20% of the combined company's revenue is expected to come from Europe, with a focus on North America for synergy realization [30][39] This summary encapsulates the key points discussed during the investor call regarding Worthington Steel's acquisition of Klöckner, highlighting the strategic rationale, expected synergies, and operational benefits of the transaction.

Core Insights - Dealmaking activity in the retail and consumer goods sectors is expected to increase in 2025 after a slowdown caused by tariffs on imports to the U.S. during the first half of the year [1] Group 1: Industry Outlook - Analysts predict a rise in mergers and IPOs for retailers and consumer goods companies in 2025 [1]

Core Viewpoint - Goldman Sachs anticipates a significant increase in mega-deals on Wall Street in 2026, supported by strong financial results from major US banks in 2025, including a record $9.3 billion in investment banking fees for Goldman Sachs, marking a 21% increase from the previous year [1][2]. Financial Performance - Major US banks, including Goldman Sachs, Morgan Stanley, Citi, Wells Fargo, JP Morgan, and Bank of America, reported a combined revenue of $593 billion in 2025, reflecting a 6% increase from the prior year, with profits reaching approximately $157 billion, up 8% [2]. - Goldman Sachs achieved a record $9.3 billion in investment banking fees for 2025, up from $7.7 billion in 2024 [1]. - Morgan Stanley's investment banking revenue rose to $7.6 billion in 2025 from $6.1 billion the previous year [4]. Market Outlook - Goldman Sachs CEO David Solomon expressed optimism for 2026, suggesting it could be a "very, very good year" for investment bankers and M&A advisors, citing a favorable environment for M&A and capital markets [5][6]. - Global M&A volumes reached $5.1 trillion in 2025, a 42% increase from 2024, indicating strong CEO confidence in pursuing large-scale consolidations [8]. - The deal pipeline for Goldman Sachs is at its highest level in four years, suggesting robust future transaction activity [8]. Regulatory Environment - Solomon noted a shift in the regulatory landscape for M&A, contrasting the current environment with the previous four years under the Biden administration, which was perceived as more restrictive [6]. Sector-Specific Insights - Morgan Stanley's CFO highlighted an accelerating pipeline in M&A and IPOs, particularly in the healthcare and industrial sectors, while also acknowledging potential economic and geopolitical challenges [14]. - Citigroup reported a 22% increase in investment banking fees to $4.4 billion in 2025, up from $3.6 billion the previous year, as part of a strategic overhaul aimed at improving profitability and operational efficiency [17][18].

Core Insights - The outlook for Wall Street's trading and deal-making is optimistic, with Morgan Stanley's CEO Ted Pick stating, "The setup is ideal" following a record $134 billion in trading revenue from the five largest banks [1] - Goldman Sachs CEO David Solomon anticipates that 2026 will be a very strong year for M&A and capital markets activity, suggesting that the current environment is conducive for growth [2] - The trading surge is described as being in the "middle innings," indicating that the positive momentum in trading is expected to continue, contrasting with challenges faced in other banking sectors [4] Company Performance - Morgan Stanley and Goldman Sachs reported strong quarterly results, contributing to predictions of another successful year for Wall Street operations [3] - Following the earnings disclosures, shares of Morgan Stanley and Goldman Sachs rose significantly, with increases of 5.8% and 4.6% respectively, marking their largest gains since April [5] Market Conditions - The current market environment is influenced by President Trump's policy changes and trade talks, which have kept investors active in repositioning their portfolios, benefiting bank traders [2] - Deregulatory efforts and interest-rate cuts by the Federal Reserve are revitalizing the mergers and acquisitions landscape, filling dealmakers' pipelines [2]

Core Viewpoint - Monteverde & Associates PC is investigating Calavo Growers, Inc. regarding its merger with Mission Produce, Inc., questioning the fairness of the proposed transaction where Calavo shareholders would receive 0.9790 shares of Mission Produce and $14.85 in cash for each share of Calavo common stock [1] Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1] - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2] Group 2: Merger Details - Under the terms of the proposed merger, Calavo shareholders are expected to receive 0.9790 shares of Mission Produce common stock and $14.85 in cash for each share of Calavo common stock [1] - The investigation aims to determine if this deal is fair for Calavo shareholders [1]

Group 1 - Netflix's shares have significantly declined, nearing a 52-week low of $82.11, amid market skepticism regarding its $72 billion acquisition attempt of Warner Bros. [1] - The stock has dropped over 30% from its peak of more than $134 last summer, raising questions about whether this presents a buying opportunity [2] - Currently, Netflix's stock trades at 37 times its trailing earnings, which is above the S&P 500 average of just under 26 but below its five-year average [3][8] Group 2 - The last time Netflix's stock traded at a lower earnings multiple was during the 2022 market crash, after which it tripled in value by 2023 [4] - Warner Bros. has struggled under AT&T and now as part of Warner Bros. Discovery, raising concerns about the potential integration with Netflix [5][6] - Given the uncertainties surrounding the Warner Bros. acquisition, investors may seek a greater discount on Netflix's stock to ensure a margin of safety [7]

Goldman Sachs’ fourth-quarter profit beat Wall Street expectations on Thursday, fueled by a surge in dealmaking and stronger trading revenues in a turbulent market.The bank’s equity traders capitalized on volatility and a broader rally in the US market as investors speculated on the Federal Reserve’s interest-rate path and the prospects for AI companies.Goldman’s equity revenue rose to a record $4.31 billion, ‌up from $3.45 billion a year ago, while trading revenue for fixed income, currencies, and commodit ...