Good Morning! Goldman reported blockbuster earnings - thanks in part to investment banking deals making a comeback. Meanwhile Tesla struggles continue - the company is laying off 10% of its workforce as sales dwindle. Retail sales jumped much higher than expected in March, and Trump Media’s stock fell 18% after announcing a massive share sale. Dubai became the second busiest airport in the world, up from fifth place last year. Plus tips to become a minimalist, and how to get rid of brain fog.

_{SQUEEZ OF THE DAY}

Goldman Loves Luxury

Goldman surprised investors yesterday, announcing a profit-beat thanks to some of the strongest investment banking fees since 2021.

And Goldman has been pursuing a unique niche - doubling down on luxury investment banking by naming Cosmo Roe as head of global luxury and beauty (previously head of consumer technology).

Roe, whose closet is full of some blockbuster deal toys such as Amazon’s acquisition of Whole Foods, is now bringing his expertise to the luxury and beauty markets.

His recent deals include Tom Ford's sale to Estée Lauder and Creed’s acquisition by Kering, alongside other significant sales of Charlotte Tilbury and Byredo.

Goldman has led successful IPOs for major players like Galderma and Douglas, with Puig soon to follow, indicating a hot IPO market within the luxury sector.

Roe’s insights reveal a strategic push by Goldman to attract more public investment into this space, as barriers to entry for new brands have somewhat decreased, allowing more players to enter the market.

Despite a fluctuating consumer market, Roe is optimistic about the luxury sector's potential for growth and innovation in M&A. He highlights the merging paths of beauty and luxury, which promises more creative dealmaking and market consolidation, especially across key regions like China, Europe, and the U.S.

Takeaway: Goldman's strategic focus on luxury dealmaking under Roe’s leadership shows a move towards capitalizing on long-term growth opportunities in the sector, even as the financing environment improves and companies adapt to higher interest rates. The luxury market's dynamics are evolving, with an increase in M&A activities and IPOs, positioning Goldman Sachs as a key player in shaping the future of luxury and beauty investment. Goldman’s Birkin era is truly underway.

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_HEADLINES

Top Reads

• Goldman profit beats as investment banking fuels highest earnings since 2021 (YF)

• Tesla cutting 10% of workforce as sales disappoint (Axios)

• Retail sales jumped 0.7% in March, much higher than expected (CNBC)

• Blackstone leads $2 billion private loan for data center firm (YF) 

• Trump stock tanks after announcing massive share sale (CNN)

• World’s busiest airport rankings (CNBC)

• Wall Street traders keep underestimating America’s economic strength (Axios)

• Meta wants its VR tech in schools (BB)

• Global iPhone shipments drop nearly 10% as Apple's 2024 woes continue (YF)

• America’s bonds are getting harder to sell (WSJ)

• How the U.S. government is regulating artificial intelligence (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed lower as yields climb, traders await Israel’s response to Iran.

Movers & Shakers

• (+) Goldman Sachs ($GS) +3% after topping first-quarter estimates fueled by trading, investment banking.

• (–) Tesla ($TSLA) -6% because the company will lay off more than 10% of global workforce.

• (–) Salesforce ($CRM) -7% because the company is in advanced talks to acquire data-management software provider Informatica.

Private Dealmaking

• Carro, a Singaporean used car marketplace, is raising $100 million

• ShareChat, a social media startup, raised $49 million

• Nourish, a telenutrition startup raised $35 million

• Brightside Health, a telemental health provider, raised $33 million

• Anrok, a sales tax compliance software company, raised $30 million

• PipeDreams, a home service provider, raised $25.5 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The Alternative

Confronted by the terrifying trends of the early twenty-first century – widening inequality, environmental destruction, and the immiseration of millions of workers around the world – many economists and business leaders still preach dogmas that lack evidence and create political catastrophe.

Private markets are always more efficient than public ones; investment capital flows efficiently to necessary projects; massive inequality is the unavoidable side effect of economic growth; people are selfish and will only behave well with the right incentives.

But a growing number of people – academic economists, business owners, policy entrepreneurs, and ordinary people – are rejecting these myths and reshaping economies around the world to reflect ethical and social values. Though they differ in approach, all share a vision of the economy as a place of moral action and accountability.

Journalist Nick Romeo has spent years covering the world’s most innovative economic and policy ideas for The New Yorker. Romeo takes us on an extraordinary journey through the unforgettable stories and successes of people working to build economies that are more equal, just, and livable.

“Winners Take All meets Nickel and Dimed in this provocative debunking of accepted wisdom, providing the pathway to a sustainable, survivable economy.”

_{DAILY VISUAL}

US is the Biggest Oil Producer in the World

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_{DAILY ACUMEN}

Eisenhower Matrix

The Eisenhower matrix is a powerful productivity tool that can help us regain control over our time and priorities in a hectic work environment. By categorizing tasks into four quadrants based on their importance and urgency, we can focus on what matters most and avoid getting sidetracked by less critical activities.

The key is to prioritize the important and urgent tasks that are core to our job responsibilities, while deciding when to tackle important but less time-sensitive projects. We should delegate urgent but less important tasks when possible, and eliminate activities that are neither urgent nor important to free up mental space.

By regularly revisiting the matrix and aligning our efforts with our goals and values, we can ensure we are making steady progress on what's truly important, both in our daily work and long-term aspirations. As Dwight D. Eisenhower's prosperous career demonstrates, thoughtful time management is essential for achieving ambitious objectives while still finding room for the people and activities that enrich our lives.

_{ENLIGHTENMENT}

Short Squeez Picks

• 5 uncommon strategies to become a more flexible thinker

• 5 steps to get rid of brain fog 

• 20 bookshelves that will make you look smart 

• How to declutter, according to professional organizers

• 8 tips to become a minimalist

_{MEME-A-PALOOZA}

Memes of the Day