The 💷 is Back
Kwasi Kwarteng revealed early on Monday morning that the decision to axe the 45p rate - part of his growth plan revealed last month - would now not happen in April as he had announced just 10 days ago. So, the pound has strengthened slightly.
Another thing before we get into the newsletter – if you haven't got Zeed yet, now is the time. It's our new investment platform, powered by video.
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This week, we're looking into the enigma of Cathie Wood, stock splits, and the state of the semiconductor chip industry
From our community, we're exploring the drama happening with Deutsche Bank and Credit Suisse, and where it could be going next.
This week's deal is another energy affair, and on the podcast we're talking with x5 founder, Dave Parker.
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🧐 The Rise and Fall of Cathie Wood
We all know the Ark Invest founder and investor. Known for her ambitious bets on innovative companies like Tesla and Coinbase, she's been through a big change of fortunes...
🤝 Semiconductors
Semiconductor stocks are having a moment, with supply chain problems and global tensions, this sector is going through a period of change. Watch this to find out what's going on...
🍕 Stock Splits
What is a stock split? How does it work? Who benefits? All is explained below...
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📉 Credit Suisse and Deutsche Bank
Both Credit Suisse and Deutsche Bank are rumoured to be on the brink of collapse. They have £2.7 trillion assets under management between them, which is x2 the asset base of the Lehman brothers at the time of its collapse.
Both Credit Suisse and Deutsche Bank are designated as systematically important financial institutions, aka they're "too big to fail", because of the risk to the economy if they were to collapse.
The stocks of both banks have been slowly bleeding out since 2009 and are now both down ~90% from their highs at the time. Credit Suisse has been hit hard by scandal. It lost billions due to the collapse of Archegos Capital Management, suffered further damage from lending to the failed finance company Greensill Capital, and was fined hundreds of millions for its involvement in a loan scandal in Mozambique.
It's likely that governments will go all out to save both banks, but the size of the bail out is causing concern.
Basically, watch this space. Things could get even messier.
For more bite-size market updates, visit our community!
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Pfizer aquires Global Blood Therpeutics Inc
Pfizer (NYSE: PFE)
Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer and his cousin Charles F. Erhart.
Global Blood Therapeutics (NASDAQ: GBT)
Global Blood Therapeutics is a biopharmaceutical firm that specialises in the creation and development of medicines in hematology, mainlycuring sickle-cell disease (SCD).
Details
- Pfizer reported a 47% increase in revenues from $18.9 Billion in 2021 Q2 to $27.7 Billion in 2022 Q2.
- This strategic acquisition allows Pfizer to gain access to ‘Rare Hematology’ products:
- Oxbryrta – In recognition of the critical need for newsickle cell disease (SCD) treatments, the FDA granted Oxbryta Breakthrough Therapy, Fast Track, Orphan Drug, and Rare Pediatric Disease designations for the treatment of patients with SCD.
- SVB securities – GBT’s SCD franchise predicted to generate $2.7 billion annual sales by 2030, adding that a Pfizer acquisition could increase that number
Stats
- Total transaction size: $5.4 Billion
- Implied EV: $ 263.46 Billion
- Price/Sales: 2.59x
- EV/Revenue: 2.60x
- EV/EBITDA: 6.85x
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Founder time. We caught up with Dave Parker, x5 founder, investor and community builder.
We've missed out some shoutouts for episodes, so we have a few to get through (hence the date).
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We'll catch you again next week, until then, make sure you're signed up to our community, and follow us on LinkedIn, Instagram, and Twitter! If you have any feedback or want to join our team, send us a message!
- Finance Focused Team