Some EY staff are in for a free trip to Switzerland after the Big Four firm won the UBS audit. Unfortunately, that’s because the scale of the UBS audit post Credit Suisse acquisition means that EY will have to call in staff from other countries to actually get it done. With one bank using IFRS and the other using GAAP, there is sure to be a lot of untangling to do. No such thing as free lunch/trip to Switzerland.

The lowdown

• 💸 UBS to retain EY as auditor after Credit Suisse acquisition, with audit fee likely to be one of the largest in banking.

• 🇬🇧 Britain signs treaty to enter Indo Pacific Trade block, the largest post-Brexit trade deal so far.

• 🎲 Czech billionaire Daniel Kretinsky appears likely to take control of French retailer Casino after other bidder withdraws.

Flex your finance muscle 💪

Excess savings

‘Excess savings’ is a concept that refers to the difference between the amount of money that households actually save and the amount that they would have saved if they had been spending at their pre-pandemic level.

During the pandemic, many households saved more money than they normally would have because of factors such as government stimulus payments (aka stimmys).

As a result, the stock of excess savings in the United States reached an estimated $2.3 trillion by the third quarter of 2021. Since then, they have been gradually drawn down as households have begun to spend more money. However, as of mid-2022, the stock of excess savings was still estimated to be about $1.7 trillion and is now only around $500 billion. What happens when it all runs out?

Featured story

Eli Lilly buys obesity drug developer in $1.93 billion deal

Pharma heavyweight Eli Lilly is set to acquire obesity drug developer Versanis for a potential total of $1.93 billion. We say potential, as the figure encompasses an undisclosed upfront payment and additional payments contingent upon achieving certain milestones.

Eli Lilly produces the obesity drug Tirzepatide, which may gain FDA approval this year. This deal bolsters the company’s presence in the rapidly expanding market for obesity treatments, which is projected to reach $100 billion within a decade.

Early participants in this market like Eli Lilly and Wegovy and Ozempic ($) maker Novo Nordisk are expected to secure a significant market share. Eli Lilly's shares rise by 3%, indicating a positive market response.

Versanis’s leading drug Bimagrumab works directly on fat cells, without reducing appetite or causing lean mass loss. Eli Lilly shareholders will be hoping that the drug also leads to gains.

The content we're consuming today

• Money Talks from The Economist podcast: The Jamie Dimon interview.

• FT: The chef and the sandwich shop owner at the heart of Trafigura’s fraud case ($).

• NY Times: In Hollywood, the Strikes Are Just Part of the Problem ($).

Off-balance sheet items

• Studio Ghibli released what may be Hayao Miyazaki’s final film ‘How Do You Live’ over the weekend. I cannot link you to a trailer because there isn’t one. The only advertising for the mysterious movie is this poster.

The bottom line