Fans of violent entertainment have welcomed confirmation that the parent company of the UFC will merge with the WWE. While there may be some synergies across the businesses, it is unlikely that talent will be immediately shared across promotions. Something tells me that WWE wrestlers may not be adhering to the same strict drug testing policies…

The lowdown

• 🤼‍♂️ Merger of WWE and UFC owner Endeavour confirmed in $21 billion deal.

• 💳 EY Germany fined and banned from certain audits over Wirecard scandal.

• 🏗️ Evergrande enters debt restructuring plan with major creditors.

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HSBC defends SVB deal

A few weeks ago, HSBC bought Silicon Valley Bank's UK arm for the nominal sum of one pound. Some shareholders have questioned the deal.

The purchase of the UK arm of SVB rescued a key lender for technology startups in Britain and so was welcomed by both startups and the UK government. HSBC was forced to defend the purchase of SVB ($), however, in a meeting with shareholders in Hong Kong. Investors at the meeting were critical of the bank's senior leadership, expressing concerns that the deal was too rushed and risky.

They have a point. The deal occurred over a frantic weekend and there was limited time for due diligence – it was completed in only 5 hours.

HSBC said that SVB UK had loans of around £5.5 billion and deposits of around £6.7 billion and so was acquiring equity of £1.2 billion for only £1. This sounds great but may not tell the full story – a toxic asset can give rise to unforeseen costs later ($). Shareholders will have to wait and HSB-see.

The content we're consuming today

• The Economist podcasts: Editor’s picks: April 3rd 2023.

• The Information: Saudi Arabia Discloses Ties to Andreessen Horowitz, Dozens of Other Venture Funds ($).

• FT: How default swaps become instruments of mass deception ($).

Off-balance sheet items

• The Power Rangers are returning to Netflix after a hiatus of around 30 years. Check out the trailer for Mighty Morphin Power Rangers: Once & Always. (It looks terrible, but worth it for the nostalgia.)

The bottom line