Good Morning! Nvidia crushed earnings - the chipmaker posted record revenue up 265% thanks to the AI boom. Hedge funds cut their stake in the Magnificent 7 last quarter and are starting to ditch U.S. stocks. The Fed worried about cutting rates too quickly, and Boeing replaced its head of the 737 Max program. Plus, how to tell if you’re overdoing your fitness recovery, and the U.S. cities where renters’ income goes the furthest.

AI this, AI that. If you are feeling overwhelmed by all the AI developments around you, and want to level up your own AI game, then check out the The 4-Hour AI Workweek to work smarter and live better in the AI era.

_{SQUEEZ OF THE DAY}

Changing the Bonus Game

HSBC is shaking up the bonus structure for its most junior employees, introducing a new bonus scheme that’s all about transparency.

While bonus ranges for junior bankers had typically been rather vague, now junior HSBC employees will see their bonuses tied to a figure known as “on target variable pay.” 

This figure uses external benchmarks and internal data, ensuring everyone knows what’s up for grabs from day one each year. 

It’s a big leap from the old-school, "wait-and-see" approach to bonuses, offering a clear path to extra cash based on performance.

Takeaway: HSBC’s pivot to transparent bonus targets is a strategic play to keep morale high and employees in the loop, even with uncertainty and headcount culls in the investment banking industry.

This move is a breath of fresh air in a climate where bonus news from other banks has not been uplifting in the slightest. The old mantra was “you get what you get, and you don’t get upset.” And with some employees at rival firms (like Barclays handing out bagels as bonuses), it will be nice for some employees to expect some sort of standards when it comes to bonus pay. 

_{THE AI COURSE}

The 4-Hour AI Workweek

This is how the TOP 1% achieve success in 2024.

The world's best aren't working extra hours, they're working smarter. With AI.

The 4-Hour AI Workweek gives you the cutting-edge. It's not chatbot science, it's how 1263+ members are saving 2-hours EVERY DAY.

Imagine what that means: more time for your own business, more time for your family, more time for YOU.

Experience a balanced life with the 4-Hour AI Workweek. Elevate your efficiency and be a frontrunner in the AI movement.

_HEADLINES

Top Reads

• Nvidia’s earnings show soaring profit and revenue amidst AI boom (CNBC)

• Value reset sets stage for buyouts revival in software (WSJ)

• Hedge funds cut Magnificent 7 last quarter (YF)

• Boeing replaces head of 737 Max program (CNBC)

• The Fed worried about cutting rates too quickly (Axios)

• Ozempic to send food makers looking for healthier options (YF)

• Machine customers are already in the billions (CNBC)

• Goldman, hedge funds step up activity in physical uranium (Reuters)

• Barclays doesn’t want to be cool (WSJ)

• Hedge funds are ditching U.S. stocks as Wall Street slides (Reuters)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed mixed ahead of Nvidia reporting earnings.

Movers & Shakers

• (+) Garmin ($GRMN) +9% after the enterprise software company made a big bet on crypto.

• (–) Teladoc ($TDOC) -24% after the online healthcare company posted worse-than-expected revenue.

• (–) Palo Alto Networks ($PANW) -28% after the cybersecurity company cut its full-year guidance.

Private Dealmaking

• Thomas Bravo exploring a sale of JD Power for $8 billion 

• Monzo, a British digital bank, raised $442 million

• MCR Hotels bought London’s BT Tower for $347 million

• Universal Music Group acquired a 25.8% stake in Chord Music Partners for $240 million

• Magic.dev, an AI software engineer startup, raised $117 million

• Planity, a salon management software startup, raised $48 million

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

_{BOOK OF THE DAY}

Let That Sh*t Go

Life is stressful. But it doesn’t have to be.

It’s no wonder you can’t calm down: your to-do list is as long as your arm, your bank balance keeps dropping, you feel guilty for not calling your parents more often and there always seems to be a big deadline to meet at work.

You need a serious breather—but you can barely find time to shower, let alone to exercise or meditate.

In Let That Sh*t Go, Kate Petriw and Nina Purewal share the wisdom they’ve gained though decades of practicing and teaching others to find peace of mind no matter how busy they are.

Learn to put your life in perspective, take each day one step at a time and steal moments of calm amid the chaos. And remember: it’s not worth holding onto that sh*t.

"Let's make one thing clear about trying to live in the present: the thoughts don't stop - but your relation to them changes."

_{DAILY VISUAL}

A Shrinking Share of Americans Move to a New Address

US household mobility declined, especially after the Fed raised rates. Reduced labor mobility may harm GDP growth as skilled workers do not relocate to areas with job opportunities, similar to Europe where language barriers restrict movement within the Eurozone.

_{DAILY ACUMEN}

Stoics

The teachings of Stoic philosophers, hailing from ancient Greece and Rome, offer timeless wisdom on leading a virtuous life as a path to happiness. Emphasizing virtue as the essence of human reason and rationality, Stoicism teaches that by developing virtues, we align ourselves with the best aspects of humanity and live in harmony with the universe.

This philosophy suggests that happiness is achieved not through external achievements or possessions but through internal growth and self-improvement. Stoics argue that virtue is both necessary and sufficient for happiness, underscoring the importance of personal development in wisdom, justice, courage, and temperance.

The Stoic way of life encourages self-knowledge, minimizing negative emotions like anger and fear, and adopting a prosocial attitude towards others. By understanding ourselves, we can cultivate our strengths and address our weaknesses, contributing positively to our communities. Stoicism also teaches compassion, viewing others' wrongdoings as results of ignorance rather than malice.

This perspective fosters patience and understanding in interpersonal relationships. Ultimately, Stoicism is about recognizing our interconnectedness with others and the world, urging us to contribute to the common good and embrace our mortality as part of the human experience. By focusing on what we can control and letting go of what we cannot, we find true happiness that is resilient to life's external changes.

_{ENLIGHTENMENT}

Short Squeez Picks

• 8 leadership strategies for maintaining morale in tough times

• The best spots in NYC for a solo date

• 100 tiny changes to transform your life

• Are you overdoing your fitness recovery?

• U.S. cities where renters’ incomes go the furthest

_{MEME-A-PALOOZA}

Memes of the Day