Good Morning! Anthropic raised $13 billion at a $183 billion valuation, nearly tripling since March. (SBF’s ~7.8% stake would have been worth ~$15 billion if he wasn’t forced to liquidate…) Nvidia logged a fourth straight loss, shedding ~$340 billion, while Google popped 8% after a judge ruled the company can keep its Chrome browser.

Manhattan office leasing is on track for its strongest year since 2019, Kraft Heinz will split into two companies (shares fell 7% after Buffett called the move “disappointing”), Apollo is prepping a $5 billion sports fund, and a16z will begin backing ultra-early-stage founders, including college-age founders.

Plus: Starbucks is rolling out protein drinks with up to 36g per serving, the “Einstein of Wall Street” reflects on four decades on the NYSE floor, and 27 underrated European destinations worth a visit.

Will Bill Ackman announce a new short before October? Trade it now on Kalshi.

SQUEEZ OF THE DAY

Jane Street Out-Trades the Banks

Jane Street just set a Wall Street record and posted $10.1 billion in Q2 trading revenue.

The firm out-traded bulge bracket banks, including giants JPMorgan, Goldman, and Morgan Stanley. First-half revenue hit $17.3 billion, putting the firm on pace to surpass its record $20.5 billion haul from last year.

For perspective, Jane Street’s $17.3 billion first-half revenue already exceeds what Bank of America and Citigroup’s entire trading divisions generate in a full year.

Unlike the bulge brackets, Jane Street doesn’t have thousands of traders, decades of client relationships, or a fortress balance sheet. What it does have is unmatched speed in electronic market-making, ETFs, options, bonds, and derivatives executed faster and cheaper than the banks. And in a quarter dominated by Trump’s tariff shocks and constant volatility, that edge translated into billions.

Competitors are scrambling. Citadel managed a record first half at $5.8 billion, while Hudson River Trading doubled revenue to $2.6 billion. But Jane Street is operating on another level; a privately held quant shop now rivaling the world’s biggest banks in raw trading income.

Jane Street has also had quite the year outside the trading floor. Its founder admitted to accidentally funding a coup attempt in South Sudan, while Indian regulators banned the firm after exposing its options strategy in a 105-page order, rare visibility into tactics the firm usually keeps in the shadows.

Takeaway: Jane Street has out-traded the JPMorgans of the world, showing that in today’s markets, technology and speed are worth more than balance sheets and brand names. The future of trading likely belongs to the quants, but as Jane Street’s profits grow, so does regulatory scrutiny. With India already shutting the door and global headlines swirling, watchdogs will be circling close by.

HEADLINES

Top Reads

• Anthropic now valued at $183 billion (Axios)

• Google stock jumps 8% after avoiding worst-case in antitrust case (CNBC)

• Manhattan office leasing on track for highest volume since 2019 (CNBC)

• Kraft Heinz to split into two companies (CNBC)

• Warren Buffett says he is disappointed in Kraft Heinz split (CNBC)

• Apollo planning launch of $5B sports fund (YF)

• Andreessen Horowitz quietly launches accelerator to woo new founders (BB)

• Nvidia slide starts stoking concern (BB)

• “Einstein of Wall Street” reflects on four decades on the NYSE floor (WSJ)

• Starbucks to launch protein cold foam, lattes later this month (CNBC)

• Klarna seeks to raise up to $1.27B in New York IPO (CNBC)

• The less you know about AI, the more you are likely to use it (WSJ)

• Apollo CEO Marc Rowan says the traditional investing model is broken (CNBC)

• Blackstone to invest in South Korean hair care brand Juno (BB)

• Blackstone-backed HVAC firm Legence files for $754M U.S. IPO (BB)

• Ray Dalio warns US is transforming into a 1930s-style autocracy (CNN)

• Klarna, Gemini, and Figure headline a busy fall IPO pipeline (Axios)

• Where to hide if you're worried stocks will go down this autumn (Axios)

• U.S. manufacturing contracts for sixth straight month in August (YF)

• Private equity ramps up PR efforts to push into 401(k)s (WSJ)

• Billionaire Sunil Mittal taps Citi for Airtel Money’s planned 2026 IPO (BB)

PRESENTED BY KALSHI

Ackman’s Next Short Play?

Bill Ackman rarely takes short positions, but when he does, markets pay attention. Now, Kalshi is offering traders a way to speculate on whether he’ll unveil another short before October.

Ackman’s short track record is well known: a $1 billion short against Herbalife in 2012, a 100x return on pandemic-era credit default swap hedges in 2020, and a public short against Icahn Enterprises in 2024. Right or wrong, his positions have consistently moved markets.

Kalshi’s new event market currently prices just a 5% probability that Ackman announces short before October. Does he have one more short in store this month?

CAPITAL PULSE

Markets Rundown

Market Update

• U.S. stocks opened September lower, with real estate and industrials leading declines while energy and consumer staples posted gains.

• 10-year Treasury yield rose to 4.27%, continuing the recent move higher.

• Asia finished mixed, following the Shanghai Cooperative Organization summit that included leaders from China, India, and Russia.

• European markets fell, weighed by higher bond yields and a rise in EU harmonized CPI to 2.1% y/y, above expectations.

• Dollar strengthened against major peers; WTI oil gained amid renewed concerns over Russian supply disruptions.

Economic Data Highlights

• U.S. Manufacturing PMI rose to 53.0, moving back into expansion territory, with production and new orders driving the gains.

• ISM Manufacturing PMI improved to 48.7, though it remained in contraction; new orders and supplier deliveries were bright spots, while employment lagged.

• Companies increased inventories, citing concern about rising costs and future supply constraints.

Reported Earnings

• NIO (NIO) – Delivered mixed results: strong deliveries but pressured gross margins due to price cuts; outlook guided to improved profitability in Q4.

• Zscaler (ZS) – Reported billings growth above expectations; raised full-year guidance on robust enterprise demand for AI-driven security.

• Iris Energy (IREN) – Bitcoin production rose with expanded capacity, though energy costs slightly weighed on margins.

Earnings Today

• Salesforce (CRM) – Focus on AI adoption, subscription revenue growth, and operating margin expansion.

• Figma (FIG) – Watching enterprise seat expansion, monetization progress, and AI-enabled design features.

• GitLab (GTLB) – Key areas: large customer adds, AI feature uptake, and path to profitability.

Movers & Shakers

• (+) Frontier Group ($ULCC) +14% after Deutsche says the budget airline will benefit from Spirit's bankruptcy.

• (+) Biogen ($BIIB) +6% because the biotech company’s injectable Alzheimer’s drug was approved.

• (–) Kraft Heinz ($KHX) -7% after the company will split; Buffett said he was disappointed.

Private Dealmaking

• Evernorth will invest $3.5 billion into Shields Health Solutions

• Arclin agreed to buy Aramids from DuPont for $1.8 billion

• Colt CZ Group agreed to buy a majority stake in Synthesia Nitrocellulose for $1.05 billion

• Ortivity, an orthopedic clinic developer, raised $217 million

• Framer, a no-code website builder, raised $100 million

• Rain, a stablecoin infrastructure platform, raised $58 million

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

BOOK OF THE DAY

Rocket Dreams

Description:
A gripping, fly-on-the-wall chronicle of the daring new Space Age, where billionaires, governments, and engineers are racing to shape our off-planet future. Davenport takes you behind the scenes at NASA, Blue Origin facilities, and SpaceX launch pads—where engineers log 100-hour weeks, and veteran astronauts marvel they’re piloting “flying iPhones.” Through richly reported storytelling, the book captures high-stakes rivalries, lunar ambitions, and how public and private agendas collide.

Release Date: Sep 12

Book Length: 384 pages
Audible Length: 11 hrs 18 mins

Ideal For: Space enthusiasts, tech futurists, geopolitics watchers, and anyone fascinated by how private ambition, innovation, and national pride converge in the race beyond Earth.

“This is a thrilling account, filled with remarkable reporting and great inside color, of the race between Elon Musk and Jeff Bezos to create commercial rockets.” — Walter Isaacson

DAILY VISUAL

Net Profit Kings

Want more? Visualize the markets with Carbon Finance

PRESENTED BY BRIGHTWAVE

Turn Data Rooms Into Decisions

Data rooms are full of answers, if you can find them. Brightwave’s AI research agents cut through the noise, delivering the insights you need in minutes instead of days.

• Accelerated Analysis: Process thousands of pages from multiple formats instantly

• Opportunity Radar: Spot risks and market moves before they hit the headlines

• Effortless Scale: Handle more deals without sacrificing quality or accuracy

Stop drowning in documents. Start making confident calls with Brightwave.

DAILY ACUMEN

Anti-Portfolio

Every investor has one: the list of companies they passed on that became unicorns. They showcase it because missing is inevitable and educational.

You have one too: the job you didn’t apply for, the email you didn’t send, the risk you didn’t take.

Most people bury their anti-portfolio under regret. The wiser approach is to study it.

Were you too cautious? Too distracted? Too sure of your own filters?

Every miss is a piece of data about how you perceive risk and reward.

The goal isn’t to catch every winner, it’s to calibrate your judgment so the next time luck knocks, you recognize it faster.

The best investors don’t just pick great companies, they get better at picking over time.

Life gives you the same feedback loop, if you’re willing to listen.

ENLIGHTENMENT

Short Squeez Picks

• The most underrated European destinations 

• A neuroscientist’s blueprint for a happier brain 

• Stop procrastinating with science 

• The Kevin Bacon rule of retirement 

• Why chasing balance boosts performance 

MEME-A-PALOOZA

Memes of the Day

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