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08.22 - Sanofi acquires Provention Bio in billion-dollar deal

plans to acquire Provention Bio for $25 per share, good for a deal worth $2.9 billion.

  • Provention Bio focuses, among other things, on the prevention of immune-mediated diseases, including type 1 diabetes. With the acquisition, Sanofi aims to diversify its portfolio.
  • Provention has a drug already approved in the US aimed at slowing stage 3 type 1 diabetes in adults, among others.

08.16 - Bitcoin shoots sharply higher after news of government intervention SVB

Bitcoin, the largest crypto currency on the market, is trading about 9 percent in the plus compared to 24 hours earlier after the U.S. government issued a guarantee that all Silicon Valley Bank (SVB) customers will get their money back.

  • Other crypto currencies are also gaining ground. Ethereum is also gaining 9 percent. Cardano even pops 12 percent higher.

07.51 - U.S. government jumps into breach to avoid banking crisis

The U.S. government has guaranteed customers of Silicon Valley Bank that they will still be able to withdraw their money. The bank announced late last week that it would raise capital to absorb large losses. This led to a crisis of confidence among customers, followed by a bank run and the bank's bankruptcy. 👇

07.33 - "SVB bankruptcy not a canary in the coal mine"

Silicon Valley Bank's bankruptcy is not a "canary in the coal mine" for European banks. So say analysts at Jefferies in a report.

  • The analysts point out that SVB is a highly specialized bank that funds startups in Silicon Valley. "It seems to be an isolated issue," the brokerage house said of SVB's problems. "This bank has a particular business model, asset mix and funding structure."
  • On the other hand, Jefferies does not want to call SVB's demise a "storm in a teacup," either. Indeed, it shows that there are substantial unrealized losses in the portfolios of hold-to-maturity bonds held by investors and banks.
  • However, European banks' exposure to such bonds is limited, according to Jefferies. At the largest European banks, analysts estimate that exposure at about 5 percent. At SVB, that percentage was 43 percent, according to Jefferies. "That's big," Jefferies said.

07.16 - Wall Street dipped sharply lower Friday

Good morning,

Due to the California banking crisis, Wall Street dipped sharply lower last Friday.

  • The S&P 500 fell 1.5 percent.
  • The Dow Jones index lost 1.1 percent.
  • And the Nasdaq closed 1.8 percent lower.
  • On a weekly basis, the three major indexes lost about 4 to 5 percent, making it the worst week of 2023 so far.

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