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☆ UBS and Swiss government sign Credit Suisse loss-sharing deal clearing way for deal to close
▼ + stars: | 2023-06-09 | by ( ) edition.cnn.com time to read: +4 min

UBS and the Swiss government have agreed on how they will share losses linked to the bank’s emergency takeover of Credit Suisse, which will create a giant Swiss bank. The agreement announced Friday has been negotiated since the rescue of Credit Suisse (CS) in March. The Swiss government will guarantee up to 9 billion Swiss francs ($9.98 billion) of losses that UBS may incur from the sale of its rival’s assets beyond 5 billion francs, which the lender is due to cover itself. The Swiss government made the cash available to facilitate the emergency takeover of Credit Suisse and avoid a broader banking crisis that a collapse of the lender could provoke. The loss protection agreement will become effective with the completion of the Credit Suisse takeover, expected as early as June 12, UBS said in a separate statement.

Persons: Sergio Ermotti, ” Ermotti, “, Ermotti, Andreas Venditti, ” Organizations: UBS, Swiss, Credit Suisse, Swiss Economic, country’s Social, Credit Suisse’s Locations: Swiss, Switzerland, Interlaken

☆ Countdown to mega merger - how Credit Suisse wobbled and UBS rushed to rescue
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +6 min

March 19: An emergency rescue of Credit Suisse, brokered by the Swiss government, central bank and financial regulator, is announced. March 23: Switzerland's financial market regulator FINMA defends its decision to impose steep losses on Credit Suisse bondholders, calling the decision legally watertight. Separately, some holders of Credit Suisse AT1 bonds wiped out by the merger instruct lawyers to represent them for possible litigation to recover losses. April 6 - UBS CEO Ermotti tells Credit Suisse staff to stay focussed on the business, but warns of "change and hard decisions" ahead. April 15 - The Federal Reserve approves UBS's acquisition of the U.S. subsidiaries of Credit Suisse.

Persons: Greensill, FINMA, Sergio Ermotti, Axel Lehmann, Ulrich Koerner, Ermotti, John Revill, Tomasz Janowski Organizations: UBS, Credit Suisse, Suisse, U.S . Securities, Exchange Commission, SEC, Silicon Valley Bank, Swiss National Bank, Saudi National Bank, Credit, Swiss Bank Employees Association, Federal Reserve, Court, Switzerland's Social Democratic Party, Thomson Locations: ZURICH, Silicon, Swiss, Switzerland

☆ UBS CEO warns of painful jobs decisions after Credit Suisse takeover
▼ + stars: | 2023-06-02 | by ( John Revill | ) www.reuters.com time to read: +2 min

BERN, June 2 (Reuters) - UBS (UBSG.S) Chief Executive Sergio Ermotti on Friday warned of painful decisions about job cuts following the takeover of Credit Suisse (CSGN.S), which he said he hoped would be formalised in coming days. Synergies is part of the story," Ermotti said at an event organised by the Asset Management Association Switzerland in Bern. That management reshuffle only saw Credit Suisse CEO Ulrich Koerner joining the top leadership. Switzerland's Social Democratic Party has drawn up proposals to shrink UBS assets after its takeover of Credit Suisse to reduce the risk of another expensive state-backed rescue. "I don't think we are too big for Switzerland," Ermotti said, adding that in banking "size matters."

Persons: Sergio Ermotti, Ermotti, Ulrich Koerner, John Revill, Tomasz Janowski Organizations: UBS, Credit Suisse, Asset Management Association, Swiss, Switzerland's Social Democratic Party, Thomson Locations: BERN, Bern, Switzerland

The easiest trade of the year is fizzling, and the lost momentum is keeping investors' money out. "I will not put any more money into stocks until all my losses are recovered," he said. Interviews with a dozen more small investors showed the sentiment to be reasonably widespread. Brokerage account creation, while volatile, likewise dropped off in April after promising momentum in February and March, China Securities Depository and Clearing data showed. "It is as if stocks are losing faith in the China recovery story," said Grow Investment Group chief economist Hong Hao.

The easiest trade of the year is fizzling, and the lost momentum is keeping investors' money out. Interviews with a dozen more small investors showed the sentiment to be reasonably widespread. Brokerage account creation, while volatile, likewise dropped off in April after promising momentum in February and March, China Securities Depository and Clearing data showed. "It is as if stocks are losing faith in the China recovery story," said Grow Investment Group chief economist Hong Hao. China's April industrial output and retail sales growth undershot forecasts as the recovery turned wobbly.

Persons: Eric Yu, Yi Huiman, Hong Hao, Wang Zaizheng, Chi Lo, Hayden Briscoe, Meng, Jason Xue, Winni Zhou, Tom Westbrook, Shri Navaratnam Organizations: China Securities Regulatory, JPMorgan, China Securities Depository, Mutual, Grow Investment Group, Management, UBS Asset Management, Thomson Locations: SHANGHAI, SINGAPORE, China's, Shanghai, China, United States, Hong Kong, Asia, Pacific, Singapore

☆ A UBS asset allocation chief told us what investors should own to profit from a market that's facing the triple threats of little upside, a recession, and a banking crisis
▼ + stars: | 2023-05-10 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

He told Insider what investors should buy today, and what they should buy if prices come down. Almost a year ago investors became convinced that, as the Federal Reserve began dramatically raising interest rates to contain inflation, a recession would swiftly follow. A year later, the recession still hasn't started — but there's still a great deal of confidence that one is coming any day now. Draho said that performance reflects the fact that investors think things are going to turn out fairly well. "You're going to get a better return from investment grade corporate bonds," with many high-quality bonds still yielding 5% or more.

☆ China investment consensus cracks as politics fuel fears
▼ + stars: | 2023-04-28 | by ( Tom Westbrook | ) www.reuters.com time to read: +5 min

It is unlikely to be resolved quickly even if the markets keep rallying and China economy keeps global growth ticking. Data paints a murky picture, but supports brokers' analysis that the bid from long-only money managers is absent. Allocation analysis from data firm EPFR shows a broad downtrend, especially to U.S.-domiciled China funds. EPFR figures show allocation to China funds outside the U.S. has increased for two years and mainland markets' recent performance has also been encouraging. "Our reservations about China's long-term investment prospects are based on our outlook for returns to capital."

☆ Recession 2023: Jerome Powell's Legacy Will Dictate Inflation, Stock Market, Economy
▼ + stars: | 2023-01-30 | by ( William Edwards | ) www.businessinsider.com time to read: +15 min

This obsession with controlling inflation — and potentially causing serious pain for average Americans — is driven by one major factor: legacy. High inflation eats away at consumers' purchasing power, and persistent inflation seeps into expectations for price and wage adjustments, which further fuel inflation. What's more, the full impact of the Fed's rate hikes have yet to hit. Legacy actsThere are signs that certain Fed officials are ready to dial back on the inflation fight. And navigating such a tricky economy — without throwing hundreds of thousands of Americans out of work — could cement Powell's legacy.

☆ Wall Street 2023 Predictions Already Wrong: Recession, Inflation, China
▼ + stars: | 2023-01-18 | by ( Linette Lopez | ) www.businessinsider.com time to read: +12 min

Across Wall Street, finance workers of all stripes are returning to work after skiing, gallivanting around the Caribbean, or just visiting Mom for the holiday season. Of course, there's some uncertainty in all this, and Wall Street could still be proved right. Already some Wall Street economists are revising their predictions given the strong economy, even if they're not backing off their priors quite yet. It may take years to get the Chinese consumer, on which Wall Street has placed so many hopes, back to the strength of yesteryear. Don't hatchet your chickens before they countTo be fair, not every Wall Street analyst is looking sheepish right now.

☆ As crypto hackers and thieves make off with billions, there's another kind of fraud lurking in the industry.
▼ + stars: | 2023-01-17 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

I'm sorry to say when you dig deeper into the practices of opaque crypto exchanges, there's little to restore that faith. Timothy Cradle, director of regulatory affairs at Blockchain Intelligence, told Insider that wash trading is market manipulation. NBER researchers estimated that wash trading comprises nearly half of all transactions on Binance, the world's largest crypto exchange by volume. Similarly, KuCoin, another top-five crypto exchange, was estimated to have 52.9% of its transactions consist of wash trading (which the company denied). Are you surprised that the researchers found wash trading to be so rampant a practice?

☆ A portfolio manager and top strategist at UBS Asset Management shares 5 opportunities he's most bullish on for 2023 as the Fed plans to keep rates elevated
▼ + stars: | 2023-01-13 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

5 places to invest in 2023In the US, given his aversion to growth, Brown is bullish on value stocks. "You think about how much money went into growth stocks, in particular mega-caps over the last decade-plus, in a certain economic environment — low-growth, low-rate, economic environment. The Vanguard Value Index Fund (VTV) offers exposure to US value stocks. Brown is also bullish on areas outside of US equities, including Chinese stocks and emerging market stocks. The iShares MSCI China A ETF (CNYA) offers exposure to Chinese stocks, and the Schwab Emerging Markets Equity ETF (SCHE) offers exposure to emerging market stocks.

☆ Analysis: Bank of Japan gives an inch, investors ready to claim a mile
▼ + stars: | 2022-12-21 | by ( Tom Westbrook | ) www.reuters.com time to read: +5 min

But rather than providing breathing room, investors say it is likely to encourage more of the sort of pressure that has bent the bond market out of shape. "Fifty basis points becomes the new 25 basis points. When trading resumed in Japan, 10-year JGB yields shot towards their new ceiling and futures fell so fast it triggered a circuit breaker suspending trade. By the end of the session, 10-year bond yields sat 14.5 basis points higher at 0.395%, the sharpest one-day rise for Japanese 10-year yields in more than 14 years. Mandatory credit Kyodo/via REUTERSThose swaps - another market measure of interest rate expectations - tracked bond yields until early this year.

☆ Investor Cat Rock reduces stake in Just Eat Takeaway - SEC filing
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: 1 min

AMSTERDAM, Dec 16 (Reuters) - U.S. investor Cat Rock, previously the second-largest shareholder in meal delivery firm Just Eat Takeaway.com (TKWY.AS), has sold part of its stake, according to an SEC filing. The filing on Dec. 15 showed the stake standing at 4.93% with 10.65 million shares as of Dec. 12. Refinitiv data showed the investor had previously held around 14.79 million shares, or 6.85%. The largest shareholders in Just Eat are now founder Jitse Groen with 7.1%, Baupost Group with 6.5%, Caledonia Investments with 6.15%, and UBS Asset Management with 5.85%. Reporting by Toby Sterling Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ 5 charts show why now is a good time to invest in bonds while they look the most attractive relative to stocks in years
▼ + stars: | 2022-12-05 | by ( William Edwards | ) www.businessinsider.com time to read: +2 min

After years of offering low returns, bond yields are up as the Fed raises interest rates. Both UBS Asset Management and Bank of America have shared charts showing why bonds look attractive. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. If the economy slows meaningfully, inflation will likely cool, leading to falling interest rates and higher bond prices." Below are charts that Bank of America and UBS Asset Management shared to put bonds' current attractiveness into historical context.

☆ A Fed rate hike of 50 basis points is a 'certainty,' UBS Asset Management says
▼ + stars: | 2022-12-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailA Fed rate hike of 50 basis points is a 'certainty,' UBS Asset Management saysKevin Zhao of UBS Asset Management says the terminal rate is important but what the U.S. Federal Reserve does afterward is even more so.

☆ Analysis: European companies' robust Q3 makes timing the end of the bear market even harder
▼ + stars: | 2022-11-11 | by ( Lucy Raitano | ) www.reuters.com time to read: +4 min

Refinitiv data also shows analysts expect STOXX constituents to post quarterly earnings growth of 32.2% year on year, compared to just 4.3% for the benchmark S&P 500 index (.SPX) in the United States. Inflation has seen prices soar on the continent, but so far companies are showing they have been able to pass on rising costs. Of the 243 that have reported revenue, 80.7% beat analyst estimates, compared with 58% in an average quarter, according to Refinitiv. The STOXX technically entered a bear market in late September when it accumulated losses of more 20% from a January peak. “Our thesis at the moment is that we're not ready to say the bear market has finished.

☆ World stocks slip to near 2-yr low ahead of U.S. CPI data
▼ + stars: | 2022-10-13 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

Global markets have suffered a torrid few weeks and there was little sign of respite in either Asia or Europe as weak equities knocked MSCI's 47-country world index (.MIWD00000PUS) down for a seventh straight day. It has fallen nearly 4.3% in the last six days, with markets worried that aggressive global interest rate hikes will trigger recessions. Data had already confirmed German harmonised inflation was +10.9% y/y in September but all eyes are on U.S. CPI data due at 1230 GMT. The dollar index, which gauges the greenback against six major rivals, barely budged from around 113.25 ahead of the CPI data. "Markets still feel very dysfunctional"Meanwhile, crude oil markets remained weak following a 2% slide on Wednesday amid worries over demand.

☆ Don’t worry, there’s still hope for the stock market
▼ + stars: | 2022-10-11 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +5 min

New York CNN Business —The back-to-back huge market rallies last week may seem like a distant memory to investors now that stocks have slid for the past four days. The S&P 500 and Nasdaq both hit new 52-week lows on Tuesday before turning higher, and the Dow is not far from a 52-week low either. That included three instances from late 2008 when market volatility was at a peak during the Global Financial Crisis. The S&P 500 was up nearly 15% one year following massive back-to-back rallies, compared to normal historical gains of just 9%. But it’s also worth noting that the S&P 500 is still slightly higher than where it closed on September 30, despite the recent losses.

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