European Midday Briefing: Mood Brighter as -2-

At 0718 GMT, shares traded 5.6% higher at CHF80.67.

Saudi Chairman of Credit Suisse's Largest Investor Resigns

DUBAI-The chairman of Credit Suisse Group AG's largest shareholder has resigned less than two weeks after his comments set off a panic with the European lender's shareholders, prompting the Swiss government to engineer a takeover by rival UBS Group AG.

Ammar al-Khudairy, the chairman of Saudi National Bank, is leaving for personal reasons and will be succeeded by Chief Executive Saeed Mohammed al-Ghamdi, the bank said on Monday. It didn't say whether the resignation was tied to Mr. Khudairy's comments on SNB's investment in Credit Suisse.

Germany, EU Reach Deal on Combustion-Engine Plan

BRUSSELS-The European Union reached a deal with Germany that is expected to water down the bloc's plan to effectively ban new internal combustion-engine cars from 2035, Berlin and Brussels said on Saturday.

The EU is pursuing an ambitious plan to fight climate-change-causing greenhouse-gas emissions that relies heavily on the mass adoption of electric vehicles.

Regeneron and Sanofi Look for Billions From COPD Drug

Chronic obstructive pulmonary disease is the third-highest cause of death globally. Smoking or exposure to noxious particles resulting from air pollution are often the culprits of the lung condition, which is characterized by airflow blockage and breathing-related problems.

Yet, despite its high death toll, it lacks great treatment options, and no new approaches have been approved in more than a decade. That is partly because it is a complex disease with different clinical characteristics that vary by patient, making it harder for companies to succeed in clinical trials. But there is a huge opportunity for drug companies that do come along with demonstrably good results.

Ukraine Allies See a Way War Can End But Lack Plan to Achieve It

Western leaders are beginning to have a clearer vision of how they hope the war in Ukraine will end.

What is missing is any plan to make it happen.

Ukraine Offensive Takes Shape, With Big Unknowns

After months of new weapons deliveries from the West, Ukraine is poised to punch back at Russia's invasion forces in coming weeks-a high-risk campaign that will set the course of subsequent battles and potential peace negotiations.

Ukraine's operational plans remain confidential, but some aspects of what is to come are discernible from a look at the equipment each side has-or doesn't have-and their recent performance on the battlefield. Both are struggling to make gains and have been burning through munitions at rates not seen since the two world wars.

Strike Called, Flights Grounded in Israel Over Netanyahu's Judicial Overhaul Plan

TEL AVIV-Israel's largest labor union on Monday announced a nationwide strike over Prime Minister Benjamin Netanyahu's controversial judicial overhaul plan, a move that would freeze large parts of the economy, grounding flights, closing malls and ports and leaving hospitals with skeleton crews.

As the embers of the protest bonfires from Sunday night were being cleared, Israeli President Isaac Herzog urged Mr. Netanyahu to immediately halt the overhaul, calling on the coalition government to put aside political considerations for the sake of the nation.

GLOBAL NEWS

The Paper-Thin Steel Needed to Power Electric Cars Is in Short Supply

Large U.S. steelmakers are ramping up production of a hard-to-make, paper-thin steel to capture a fast-growing market for a material critical to powering electric vehicles.

Cleveland-Cliffs Inc. and U.S. Steel Corp. are jockeying with a small group of foreign-based steelmakers that produce electrical steel, used to convert electricity into mechanical power for motors in products that include washing machines, air conditioners, power tools and more recently, electric vehicles.

Banks Step Up to Serve Crypto Firms After Signature, Silvergate Blowups

Some banks are rolling out the welcome mat for cryptocurrency firms that found themselves in need of banking services after the downfall of two big crypto-friendly lenders, Signature Bank and Silvergate Capital Corp.

As crypto companies have scrambled to establish new bank relationships, industry executives say they have received a positive reception from regional banks such as Customers Bancorp., based in West Reading, Pa., and Fifth Third Bancorp, based in Cincinnati.

U.S. Bank Failures Pose Risk to Global Growth

SINGAPORE-Turmoil in the U.S. banking sector isn't just a problem for the U.S. It also increases the risks of a global recession.

Many economists expected a significant downturn in global economic growth this year even before U.S. lender Silicon Valley Bank collapsed, because of an expected pullback in spending and investment in the U.S. and Europe amid climbing interest rates.

China's Industrial Profit Slid in First Two Months of 2023

China's industrial profit slid 22.9% in the first two months of the year, compared with the 4% decline for all of 2022, the National Bureau of Statistics said Monday, underscoring the lingering fallout from the country's once-stringent Covid policies that dented consumer demand.

China's state-owned companies reported a 17.5% decline in profits for the period of January and February, while profits at foreign companies dropped 35.7%. Profits of private companies fell 19.9%.

How Options-Hedging Turbocharged Oil Volatility

The economic fears gripping Wall Street have sparked outsize swings in oil prices, exacerbated by trading that investors and analysts say has little to do with the fundamental value of crude.

One culprit is an arcane area of trading known on Wall Street as delta hedging, aimed at reducing the risks tied to directional price moves.

North Korea Fires Two Short-Range Missiles Ahead of Arrival of U.S. Aircraft Carrier

SEOUL-North Korea fired two short-range ballistic missiles Monday, a day before a U.S. aircraft carrier is set to arrive in South Korea for military exercises.

The missiles were launched between 7:47 a.m. and 8 a.m. local time from Junghwa County, south of the capital Pyongyang, and traveled about 230 miles before landing in waters between Korea and Japan, Seoul's military said. The missiles reached an altitude of about 30 miles and landed outside of Japan's exclusive economic zone, Japan's Defense Ministry said.

Trump Grand Jury to Reconvene Amid Mounting Expectations, Rhetoric

The New York grand jury hearing testimony about Donald Trump's role in paying hush money to a porn star heads into a new week amid growing public anticipation about a potential indictment of the former president, who has escalated his rhetorical attacks on prosecutors.

The panel is expected to reconvene Monday, according to people familiar with the matter, after it last heard testimony in the Trump investigation a week ago. The grand jury has been weighing the Trump case as well as other unrelated matters. Its agenda for the week isn't clear.

Alibaba Co-Founder Jack Ma Returns to China After a Year Away

Jack Ma, Alibaba Group Holding Ltd.'s billionaire co-founder, has returned to mainland China after spending roughly a year overseas, according to people familiar with the matter.

Mr. Ma's travels have been the subject of intense scrutiny as China's leadership seeks to regain the confidence of entrepreneurs following years of regulatory clampdowns and Covid-19 pandemic measures that battered the country's private businesses. The tech titan's extensive time abroad was interpreted by some in the business world as evidence that uncertainty still clouded the tech sector.

Al Qaeda Closes In on a Stalwart U.S. Ally in Africa

BAWKU, Ghana-The good news according to Salifu Bashru, an elder of the Mamprusi people, is that if al Qaeda militants attack, they'll probably kill his rivals from the Kusasi community first.

The bitter, 65-year dispute between Mamprusi and Kusasi over which ethnic group rules this small northern Ghanaian city has turned deadly in recent months, with neighbors exchanging machine-gun fire and each side vowing never to let the other get its way.

Pentagon Woos Silicon Valley to Join Ranks of Arms Makers

The Pentagon is seeking to enlist Silicon Valley startups in its effort to fund and develop new weapons technology and more-nimble suppliers, as the U.S. races to keep pace with China's military advances.

The push to tap private capital comes in the midst of concern that U.S. defense-industry consolidation has led to dependence on a few large companies that rely on government funding for research and is hampering innovation. Meanwhile, China has pulled ahead in some key technologies, ranging from small drones to hypersonic missiles, helped by Beijing's use of external public-private guidance funds, according to current and former Pentagon officials.

Honduras Establishes Diplomatic Ties With Beijing, Abandoning Taiwan

TAIPEI-Honduras has established diplomatic relations with China and formally cut ties with Taiwan, following through on a pledge this month to shift its official recognition to Beijing.

With the loss of Honduras, Taiwan now has 13 diplomatic partners, most of them small states in Central America and the Pacific, with the Vatican its only official partner in Europe.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

March 27, 2023 06:12 ET (10:12 GMT)

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