Top News in Finance for June 12, 2023

KEY POINTS

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

• UBS successfully acquires Credit Suisse, setting stage for major market shifts
• Key FDA endorsement propels Eisai and Biogen’s Alzheimer’s drug
• Samsung, TSMC receive continued chip restriction exemptions from U.S.
• Nio’s price reduction reflects escalating rivalry in China’s EV market
• Novartis to purchase Chinook Therapeutics, expanding its late-stage drug repertoire

UBS Concludes Credit Suisse Takeover

In a landmark deal, UBS, the renowned Swiss bank, has announced the successful acquisition of its competitor Credit Suisse. Both financial giants will continue to operate as independent entities, their amalgamated balance sheet hitting an impressive $1.6 trillion. Credit Suisse is set to be delisted from both the SIX Swiss Exchange and the New York Stock Exchange, a significant shift for shareholders who will receive one UBS share for each 22.48 Credit Suisse shares they own.

Eisai and Biogen’s Alzheimer’s Drug Receives Crucial FDA Support

A breakthrough in Alzheimer’s treatment may be on the horizon as Eisai Co., a Japanese pharmaceutical firm, and Biogen secure backing from a critical FDA advisory board. This favorable endorsement trails a recent report indicating the drug, Leqembi’s, potential to slow the progression of Alzheimer’s disease. Biogen’s shares experienced a pre-market uptick of over 4% following the news.

Samsung and TSMC Secure Extended Exemptions from U.S. Chip Restrictions

Samsung and TSMC, key players in the global semiconductor industry, have been granted an extension on chip restrictions set to lapse in October by the U.S. These exemptions will now persist “for the foreseeable future,” according to an industry conference insider, prompting TSMC’s shares to climb nearly 2% in pre-market trading.

Nio Trims Prices, Signifying Intensified Tesla Competition in China

China’s EV market is witnessing a heated price war as carmaker Nio announces a $4,200 price slash, following Tesla’s earlier price reduction. This strategic move coincides with a dip in Nio’s May deliveries and delays in key research and capital projects, hinting at stiffening competition in the Chinese EV sector.

Novartis Announces Acquisition of Chinook Therapeutics

Novartis, the Swiss pharmaceutical behemoth, is set to acquire Chinook Therapeutics, a Seattle-based biotech firm, in a deal worth up to $3.5 billion. This acquisition enhances Novartis’ late-stage drug development lineup, introducing a novel treatment for a rare, severe kidney disease. The deal, expected to conclude in the second half of 2023, boosted Chinook Therapeutics’ shares by 66% and Novartis by over 1% in pre-market trading.