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08.22 – Sanofi acquires Provention Bio in billion-dollar transaction
Plans to buy Provention Bio for $25 per share, amounting to a $2.9 billion transaction.
- Among other things, Provention Bio focuses on the prevention of immune-mediated illnesses, such as type 1 diabetes. With this purchase, Sanofi intends to diversify its portfolio.
- Prevention has a medicine already licensed in the United States that is intended, among other things, to halt the progression of type 1 diabetes in adults in stage three.
Bitcoin prices surge dramatically on August 16 on rumors of government intervention. SVB
Bitcoin, the largest cryptocurrency on the market, is trading 9 percent higher than it was 24 hours ago after the U.S. government offered a guarantee that Silicon Valley Bank (SVB) clients will receive their funds.
- Other cryptocurrencies are gaining traction as well. Similarly, Ethereum is rising 9 percent. Cardano even increases by 12 percent.
7.51 – The U.S. government intervenes to avert a banking catastrophe
The U.S. government has assured Silicon Valley Bank clients that they would be able to withdraw their funds. The bank declared late last week that it would increase its capital to absorb significant losses. This resulted in a crisis of consumer trust, a bank run, and the failure of the bank.
07.33 – “SVB insolvency is not a warning sign”
The bankruptcy of Silicon Valley Bank is not a “canary in the coal mine” for European banks. So state Jefferies analysts in a report.
- Analysts note that SVB is a highly specialized bank that finances Silicon Valley businesses. The brokerage firm stated of SVB’s troubles, “It looks to be a unique incident.” This bank’s business model, asset mix, and funding structure are unique.
- On the other hand, Jefferies does not like to characterize SVB’s downfall as a “teacup storm.” Moreover, it demonstrates that investors and institutions maintain huge unrealized losses in their portfolios of hold-to-maturity bonds.
- Yet, according to Jefferies, European banks’ exposure to such bonds is modest. Analysts think that the exposure at the major European banks is around 5%. Jefferies said that this proportion was 43% at SVB. Jefferies said, “That’s enormous!”
Friday, July 16 – Wall Street dropped significantly.
The morning,
Last Friday, Wall Street dropped significantly due to the California financial crisis.
- The S&P 500 index declined 1.5%.
- The Dow Jones index dropped 1.1%.
- And the Nasdaq ended the day down 1.8%.
- That was the worst week of 2023 so far, as the three major indices dropped between 4 and 5 percent over the course of the week.