Biden, Yoon warn North Korea of nuclear response to any attack

US President Joe Biden and South Korean President Yoon Suk Yeol have issued a warning to North Korea that it will face a nuclear response and the “end” of its leadership if it uses its own nuclear arsenal. The two leaders spoke at the White House and emphasized that the US security shield for South Korea was being strengthened in response to North Korea’s aggressive missile tests. The Washington Declaration was issued, which strengthens the US nuclear umbrella over South Korea, with the two countries sharing information and consulting in the event of a North Korean attack.

Why are the US and China fighting over chips?

The US has blocked China’s access to advanced semiconductors, citing national security. Semiconductors are crucial to the development of advanced technology and weapons, making them a key target. Chinese chip companies stockpiled components ahead of the US export controls, but the sanctions have started to hurt, drying up China’s talent pool and forcing companies to slash jobs and freeze expansion plans. China has reacted with defiance and vowed to accelerate its efforts to become self-reliant on semiconductors, but experts say it may take much longer to achieve its goal in the face of such curbs.

Swiss regulator aims to draw lessons from Credit Suisse debacle

Switzerland’s banking regulator, FINMA, said it would learn from the Credit Suisse crisis as it released its annual assessment of emergency contingencies. Credit Suisse’s collapse amid market panic led to Swiss authorities orchestrating an emergency rescue that involved pressuring UBS into a US$3.25bn takeover of its closest domestic rival. Head of FINMA, Urban Angehrn, said that “important lessons” can be learned from the Credit Suisse crisis for future crisis preparations.

UBS posts US$1.0 bn Q1 net profit, Credit Suisse takeover completion set for Q2

UBS expects to complete the takeover of Credit Suisse in Q2, as it reports a net profit of $1bn for Q1, down from US$2.1bn last year. Credit Suisse reported US$70bn being withdrawn in Q1, potentially its final results ahead of the merger. Analysts had expected UBS’s Q1 net profit to be around US$1.7bn.

Rape allegation against Trump heads to civil trial

Jury selection begins for E. Jean Carroll’s civil trial against Donald Trump, who she accuses of raping her in the 1990s and then defaming her. Trump denies the allegations and is facing numerous legal issues. The trial is expected to last one to two weeks, and Trump is not expected to testify.

First Republic Bank shares dive on 40% drop in deposits

First Republic Bank lost over 40% of its deposits in Q1 2023, but the situation stabilized since late March. The bank’s shares fell more than 20% in after-hours trading following its first earnings report since Silicon Valley Bank and Signature Bank’s failures last month, which led to emergency measures to fortify the industry. First Republic announced cost-cutting measures, including a 20% to 25% workforce reduction, the condensing of corporate office space, and significant cuts in executive compensation.

Over US$68 bn withdrawn from Credit Suisse ahead of UBS takeover

Credit Suisse saw YS$68 billion in withdrawals in Q1 2023, likely its final results before its merger with UBS. The bank’s net profit surged to CHF12.4 billion, up from a significant loss a year earlier after holders of high-risk debt were wiped out. The bank suffered scandals and became the weakest link after three US regional banks collapsed in March 2023. Swiss authorities organised an emergency rescue, pressuring UBS to agree to a US$3.25bn mega merger on the evening of 19 March.

Patience is no longer key to a successful political transition in Sudan

Amid the ongoing conflict in Sudan, there is a need for civilian rule and subsequent democracy, according to a recent opinion piece by Byamukama. Since the 2021 coup, the country has been run by the army, and neither coup leader General Abdel Fattah Burhan nor Rapid Support Forces leader General Mohammed Hamdan Dangalo appear to have any intention of relinquishing power. The concern is that the fighting might escalate and destabilize the entire region, spilling over into neighboring countries, such as Chad and Egypt, which are also under juntaism and limited democracy.

Norway wealth fund posts strong quarterly return of US$84 billion

Norway’s sovereign wealth fund, the world’s largest, recovered about half of its massive losses from last year, posting a gain of US$84 billion in Q1 due to a strong stock market performance.

SpaceX Starship, world’s biggest rocket, explodes during first flight test

SpaceX’s Starship rocket exploded during its inaugural flight on April 20, four minutes after launching from the SpaceX spaceport in Boca Chica, Texas. The spacecraft was supposed to separate from the first-stage rocket booster three minutes into the flight, but separation failed, causing the rocket to disintegrate. Despite the failure, Elon Musk, founder and CEO of SpaceX, congratulated his team and called the test “exciting,” tweeting that he learned a lot for the next test launch in a few months. NASA has chosen Starship to ferry astronauts to the Moon in late 2025, marking the first time astronauts will land on the moon since the Apollo program ended in 1972.