Core Viewpoint - Artisan Partners expresses dissatisfaction with Axalta Coating Systems' plan to merge with AkzoNobel in an all-stock transaction, which is expected to create a significant player in the paint industry with an enterprise value of $25 billion [1] Company Summary - Axalta Coating Systems is planning to combine with AkzoNobel, which will result in a new entity valued at $25 billion [1] - The merger is structured as an all-stock deal, indicating that shareholders of both companies will exchange their shares for shares in the new combined company [1] Industry Summary - The merger aims to create a giant in the paint industry, potentially reshaping competitive dynamics and market share among existing players [1]

Market Overview - US stock futures are extending losses for the fourth consecutive day due to concerns over stock valuations and interest rate uncertainty, with the S&P 500 and NASDAQ closing below their 50-day moving averages, indicating potential further weakness ahead [1][5][10] - Bitcoin has dipped below $90,000 for the first time in seven months, erasing all gains for the year, which has negatively impacted Bitcoin ETFs and related stocks [2][19] Home Depot - Home Depot has cut its full-year profit forecast and missed earnings expectations for the third straight quarter, now expecting full-year sales to rise about 3% and comparable sales to be slightly positive [2][3][20] - The company attributes the decline to slow consumer spending and a weaker housing market, leading to a significant drop in home improvement demand [19][22] - Home Depot's stock is down over 3.5% in pre-market trading as investors assess the timing of a potential turnaround in housing starts and home improvement demand [20][23] Economic Indicators - Private sector job data from ADP shows a loss of 2,500 jobs for the week ending November 1, indicating volatility in the labor market [26] - Initial jobless claims for mid-October were reported at 232,000, slightly up from the previous week, but still considered healthy for the labor market [28][29] Saudi Arabia and US Relations - Saudi Crown Prince Muhammad bin Salman is visiting the White House to strengthen defense and economic ties, with expected announcements including a multibillion-dollar investment in AI infrastructure and defense sales [31][32][33] Trending Stocks - Cloudflare experienced an outage affecting major websites, including OpenAI's ChatGPT and Elon Musk's platform X [37] - Microsoft and Amazon were downgraded to neutral by Redburn, citing unclear bull cases for generative AI [38] - Axon, the paint maker, is acquiring Exalta Coding Systems, creating a $17 billion paint giant [40]

Core Insights - There is a growing trend among corporate treasuries to add bitcoin to their balance sheets as institutional acceptance and regulatory clarity increase [1] Company Overview: Block - Block has held bitcoin as part of its corporate assets since 2020, with a recent announcement of Square Bitcoin, a fully integrated bitcoin payments and wallet solution launching on Nov. 10 [2] - The company's bitcoin journey began with customer demand, launching the ability for Cash App users to buy, hold, and sell bitcoin in 2018, resulting in over 20 million active users trading more than $58 billion worth of bitcoin [4] - Block made its first corporate bitcoin purchase of $50 million in 2020, representing less than 1% of total assets, primarily as a learning exercise, and expanded its holdings with an additional $170 million investment in 2021 [5] - As of Q2 2023, Block held 8,692 bitcoin on its balance sheet [6] Investment Strategy - Block positions bitcoin as a long-term investment, guided by clear risk parameters, despite some finance leaders viewing it as too volatile compared to traditional assets [7] - The company has adopted a dollar-cost averaging strategy, reinvesting 10% of monthly gross profit from bitcoin products starting in 2024 [5] - Leaders at Block emphasize the importance of tracking regulation and treating bitcoin like any other strategic asset [10] Market Sentiment and Future Outlook - The perception of bitcoin has shifted dramatically since 2020, when it was seen as purely speculative, to being viewed as a principled, calculated risk representing a small slice of Block's portfolio [9] - Institutional infrastructure for bitcoin has matured significantly, creating greater stability, which supports a long-term view on investment [8] - Block's leaders see bitcoin as part of the future, alongside advancements in AI, and advise peers to treat it as a strategic investment [11]