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☆ The stock market is going to be trading flat as long as risk-free assets offer much more yield
▼ + stars: | 2023-03-20 | by ( Max Adams | ) www.businessinsider.com time to read: +6 min

Meanwhile, markets are still reeling from the SVB fiasco, but there's a simpler reason why the stock market is going to be trading flat for the foreseeable future. Banking turmoil aside, the stock market doesn't have much momentum as long as investors are getting much higher yields on risk-free assets. Even before Silicon Valley Bank crashed, investors were feeling the pain of a volatile stock market. What's your prediction for the stock market through the first half of this year? Zurich-listed shares of Credit Suisse are down more than 58% early Monday.

One recruiter told Insider they'd seen an influx of resumès of a similar scale to the 2008 financial crisis. Executives looked 'very downbeat' at an all-company meetingHeadquartered in Zurich, Credit Suisse has a large presence in Europe. A European-based headhunter told Insider they'd "heard there were some tears" from Credit Suisse veterans about the prospect of the bank's takeover. As Credit Suisse's outflows accelerated over recent months, it appears its employees have hunted for other postings. One industry headhunter in the UK said their desk has piled up with job applications from Credit Suisse workers for around a month.

☆ Credit Suisse's investment bankers are so concerned about cuts, employees are being told to look for new jobs. 'They encouraged it.'
▼ + stars: | 2023-03-20 | by ( Carter Johnson | Casey Sullivan | Dakin Campbell | ) www.businessinsider.com time to read: +12 min

The fate of Credit Suisse's investment bank hangs in the balance after being sold to UBS. The investment bank's planned spinoff has been put on hold and bankers are bracing for job cuts. People said they expect Credit Suisse's planned spinoff of its investment banking operations, announced last year, to be scuttled. Over at 11 Madison Ave., where Credit Suisse's NY operations are headquartered, emotions were running hot on Monday. Now, the proposed CS First Boston deal hangs in the balance, with both industry experts and Credit Suisse employees uncertain whether it will go through.

The ECB vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" for restoring calm. [1/6] Chairman of the Board of Directors of UBS, Colm Kelleher and Chairman of the Board of Directors of Credit Suisse, Axel Lehmann attend a news conference on Credit Suisse after UBS takeover offer, in Bern, Switzerland, March 19, 2023. The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to 0.76 Swiss francs per share for a total consideration of 3 billion francs, UBS said. Under the deal with UBS, some Credit Suisse bondholders are major losers.

☆ UBS's Credit Suisse deal was the best solution says Swiss gov't
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +2 min

Keller-Sutter, who said she held a Credit Suisse bank account, said the worst case had been avoided. This is a commercial solution because UBS is taking over Credit Suisse," she told a press conference in Bern. "The bankruptcy of Credit Suisse would have had a huge collateral damage - on the Swiss financial market also internationally," she said. He said it was far too early to discuss job cuts at Credit Suisse, but he was very positive about Credit Suisse's Swiss business. His upbeat tone contrasted with Credit Suisse Chairman Axel Lehmann, who was emotional when he spoke about the demise of 167-year-old Credit Suisse as an independent bank.

☆ UBS chairman wants to keep Credit Suisse's Swiss unit
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: 1 min

ZURICH, March 19 (Reuters) - UBS (UBSG.S) Chairman Colm Kelleher said the bank wants to keep Credit Suisse's Swiss unit, speaking at a news conference announcing the merger between Switzerland's two biggest banks on Sunday. "It is a fine asset that we are very determined to keep and hopefully service their customers and clients as efficiently as Credit Suisse has done," Kelleher said. The Chairman of Switzerland's biggest bank said it "will be running down the investment banking part of Credit Suisse, because UBS itself has an investment bank-like model." "We need to do this in a rational way [and] thoughtfully, when we've sat down and analysed what we need to do." Reporting by Noele Illien Editing by Paul CarrelOur Standards: The Thomson Reuters Trust Principles.

☆ UBS salvages most value from Credit Suisse wreck
▼ + stars: | 2023-03-19 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

Meanwhile the government will cover up to 9 billion Swiss francs of losses, such as markdowns on Credit Suisse assets, past a certain threshold. A UBS takeover is preferable to the Swiss government nationalising Credit Suisse or winding it down. Follow @liamwardproud on TwitterCONTEXT NEWSUBS will rescue Credit Suisse in a deal worth about 3 billion Swiss francs, Swiss authorities and the two banks said on March 19. Shareholders in Credit Suisse will get one new UBS share for every 22.48 shares they currently hold. Based on UBS’s closing price on March 17 the offer values Credit Suisse shares at 0.76 Swiss francs each, well below the last closing price of 1.86 Swiss francs.

☆ UBS to take over Credit Suisse, assume up to 5 bln Swiss francs in losses
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +4 min

The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank. In that eventuality, UBS would assume the first 5 billion francs, the federal government the next 9 billion francs, and UBS would assume any further losses, the government said. Credit Suisse Additional Tier 1 shares with a nominal value of around 16 billion francs ($17.2 billion) will be written down completely after the Swiss government provided support for UBS' takeover of Credit Suisse, FINMA said. Authorities had been scrambling to rescue Credit Suisse, among the world's largest wealth managers, before financial markets reopened on Monday. Reuters Graphics Reuters GraphicsThe Swiss government said that it was also giving UBS a guarantee of 9 billion Swiss francs "assume potential losses" from assets as part of the transaction.

The terms of the deal will see Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold. "This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. The Swiss National Bank pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. It reported a full-year net loss of 7.3 billion Swiss francs for 2022 and expects a further "substantial" loss in 2023.

☆ Top UBS executives defend their 'emergency rescue' of Credit Suisse. Here's what comes next.
▼ + stars: | 2023-03-19 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +5 min

UBS sought to reassure investors that the Credit Suisse deal wouldn't disrupt long-term strategy. UBS agreed to acquire Credit Suisse on Sunday in a deal arranged by the Swiss government. Credit Suisse has faced crisis after crisis in recent years, from Archegos to a spying scandal. "These events could alter the course of not only European banking but also the wealth management industry more generally," Georgiou said. "It's an outcome that we may not have hoped for," Hamers said of the Credit Suisse deal.

☆ SVB employees to receive 45 days of employment at 1.5 times pay, reports say
▼ + stars: | 2023-03-12 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +2 min

New York CNN —The US Federal Deposit Insurance Corporation offered Silicon Valley Bank employees 45 days of employment and 1.5 times their salary, reports say. US workers also received their annual bonuses on Friday, just hours before FDIC took over the collapsed lender, Axios reported. It said it would pay uninsured depositors an “advance dividend within the next week.”The FDIC took over in the midmorning Friday; usually it waits until markets close. “SVB’s condition deteriorated so quickly that it couldn’t last just five more hours,” wrote Better Markets CEO Dennis M. Kelleher. “That’s because its depositors were withdrawing their money so fast that the bank was insolvent, and an intraday closure was unavoidable due to a classic bank run.”

☆ Takeaways from America’s second-largest bank failure
▼ + stars: | 2023-03-11 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +7 min

New York CNN —Silicon Valley Bank’s 48-hour collapse led to the second-largest failure of a financial institution in US history. Its stunning, and seemingly rapid, fall is the largest shutdown of a US bank since Washington Mutual in 2008. “That’s because its depositors were withdrawing their money so fast that the bank was insolvent, and an intraday closure was unavoidable due to a classic bank run.”High interest rates led to its demiseTo combat rampant inflation, the central bank has been aggressively raising interest rates since 2022. When interest rates were near historical lows, the banks bought up on long-dated, seemingly low-risk Treasuries. Faced with these higher interest rates, loss of IPOs and a funding drought, SVB’s clients began pulling money out of the bank.

☆ Reasons Plane Travel, Airline Customer Service, Airports Are so Terrible
▼ + stars: | 2023-02-20 | by ( Bartie Scott | Juliana Kaplan | ) www.businessinsider.com time to read: +15 min

It's almost impossible to imagine a time when air travel was pleasant, much less enjoyable. Lost baggage, overbooked flights, outdated equipment, hidden fees, and disorganized staffing have fliers at their wits' end; consumer complaints about airline service have risen by 300% from pre-pandemic levels. Many of these measures had been put in place to improve safety following some rattling accidents in the early days of commercial air travel. So in 1978, at the urging of the economist and "inflation czar" Alfred Kahn, President Jimmy Carter enacted the Airline Deregulation Act. He added that "airline service, by any standard, has become unacceptable."

In this article LUV Follow your favorite stocks CREATE FREE ACCOUNTGenaro Molina | Los Angeles Times | Getty ImagesWill the majority of travelers forgive Southwest Airlines and start buying tickets on the major U.S. air carrier again? Southwest Airlines accepted the blame for its technological meltdown during the holidays, and it has committed over $1 billion to fixing it. He pointed to $29 fare sales, "something I haven't seen Southwest offer in a long time," he said. The Southwest spokeswoman said the airline has a long history of innovation and pioneering technology in the airline industry. BALTIMORE, MD - DEC 27: Hundreds of passengers wait in line to handle their baggage claim issues with Southwest Airlines at Baltimore/Washington International Thurgood Marshall Airport in Baltimore, Maryland on December 27, 2022.

☆ Power outages, strong winds, sea swells and rain as Cyclone Gabrielle nears New Zealand
▼ + stars: | 2023-02-12 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

WELLINGTON, Feb 13 (Reuters) - More than 30,000 homes were without power in New Zealand's upper North Island on Monday as Auckland and nearby regions were hit by strong winds, heavy rain and huge swells as cyclone Gabrielle nears. Gabrielle hit Norfolk Island on Saturday night, with its most destructive winds missing the island, and is now sitting just north of New Zealand with weather forecasters expecting it to intensify as it nears land during Monday and Tuesday. Many schools and council facilities across Auckland and the upper North Island have closed and people are being asked not to travel if possible. Last month Auckland was hit by record rainfall that sparked floods and killed four people. The New Zealand Defence Force has located staff across Auckland and neighbouring regions and they are bringing in welfare stores to civil defence centres and shelters.

☆ UBS fourth-quarter profit rises 23%; beats estimates
▼ + stars: | 2023-01-31 | by ( Noele Illien | ) www.reuters.com time to read: +1 min

ZURICH, Jan 31 (Reuters) - Switzerland's UBS Group AG (UBSG.S) on Tuesday reported a 23% increase in fourth-quarter profit, beating analyst estimates, helped by a fall in costs despite a drop in financial markets. The Swiss bank reported net profit attributable to shareholders of $1.7 billion, versus the $1.3 billion average of 21 analyst estimates in a UBS-conducted poll. "We are starting 2023 from a position of strength," Chief Executive Ralph Hamers said in a statement. Full-year net profit reached $7.6 billion, compared with the consensus estimate of $7.3 billion. UBS Chairman Colm Kelleher has said his bank has not actively sought to benefit from Credit Suisse's troubles.

☆ The worst of the rain to hit New Zealand's Auckland may have passed
▼ + stars: | 2023-01-31 | by ( Lucy Caymer | ) www.reuters.com time to read: +2 min

Four people were killed in flash floods and landslides that hit Auckland beginning on Friday as rainfall, that authorities say has been exacerbated at least in part by climate change, drenched the city. A state of emergency remains in place in Auckland but has been lifted in the Northland region to the north of the city. A house collapsed down a cliff injuring three people in a beach settlement near Auckland on Wednesday. The national meteorological service said the heaviest rains had passed Auckland although downpours were hitting to the southeast, in the regions of Coromandel and Bay of Plenty. Summers in New Zealand usually bring some rain but the region is experiencing the La Nina weather system, which can bring much heavier rain to the upper North Island.

☆ UBS sounds cautious note for year ahead after booking quarterly profit rise
▼ + stars: | 2023-01-31 | by ( Noele Illien | ) www.reuters.com time to read: +2 min

[1/2] The logo of Swiss bank UBS is seen at an office building in Zurich, Switzerland, Oct. 25, 2022. REUTERS/Arnd WiegmannZURICH, Jan 31 (Reuters) - UBS Group AG (UBSG.S) predicted an "uncertain" year ahead plagued by accelerating inflation and higher interest rates on Tuesday after the Swiss bank beat estimates in its latest quarter. In doing so, UBS cautioned that inflation, rising interest rates and war in Ukraine were clouding the future, dampening clients' mood. Full-year net profit reached $7.6 billion, compared with the consensus estimate of $7.3 billion. UBS said it attracted $23.3 billion in net new fee generating assets in wealth management, with strong performance in Switzerland.

☆ More heavy rain expected for New Zealand's flood-ravaged Auckland
▼ + stars: | 2023-01-30 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

Four people lost their lives in flash floods and landslides that hit Auckland over the last three days amid record downpours. Auckland has already received record levels of rain in the past four days and sodden ground and full rivers mean new rainfall brings increased risks. Beaches around the city of 1.6 million are off limits due to contaminated water, several main roads remain closed, and all Auckland schools will remain shut until Feb. 7. Kelleher said Auckland domestic airport was now running at full capacity and Auckland International Airport was operating at near capacity and hoped to return to normal operations soon. The insurance industry expects the costs associated with the flood to top the NZ$97 million spent following the 2021 floods on New Zealand’s West Coast.

☆ Australian insurers receive over 8,000 claims after New Zealand floods
▼ + stars: | 2023-01-29 | by ( ) www.reuters.com time to read: +2 min

As of Monday morning, Suncorp's Vero and AA Insurance brands have received about 3,000 claims, while IAG's AMI, State and New Zealand Insurance brands have obtained over 5,000 claims. Both the insurers expect the number of claims to rise further over the coming days, as the event continues to unfold and customers identify damages. IAG received 24,000 claims in the first three days of flooding in Sydney and across the New South Wales state last year. Local New Zealand insurers have yet to provide any details on claims received. ($1 = 1.5427 New Zealand dollars)($1 = 1.4085 Australian dollars)Reporting by Harish Sridharan in Bengaluru; Editing by Aurora EllisOur Standards: The Thomson Reuters Trust Principles.

[1/4] People stand in front of the Blockchain Hub Davos 2023 at the Promenade road during the World Economic Forum (WEF) 2023, in the Alpine resort of Davos, Switzerland, January 16, 2023. REUTERS/Arnd WiegmannDAVOS, Switzerland, Jan 19 (Reuters) - In the snow and ice on the main drag in Davos, the impact of the crypto winter is plain for WEF attendees to see. Executives in Davos said they are now all about blockchain technology, proper controls and regulation, and the promise of disruption that it holds for financial services and beyond. Colm Kelleher, chairman of Swiss bank UBS (UBSG.S), told a WEF panel that blockchain technology will help reduce costs for banks. "We kind of dodged a bullet," Kelleher said, noting that the collapse in the value of crypto currencies had not caused systemic problems.

☆ Davos 2023: UBS head says regulators' 'eyes off the ball' on non-banks
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +1 min

LONDON, Jan 18 (Reuters) - UBS Chairman Colm Kelleher said traditional finance firms were "systemically safe" after years of increased regulation, but guardians of global financial markets had further to go to eradicate the risks posed by the non-banking sector. "Regulators have - with respect - taken their eyes off the ball in terms of the non-banking sector," the chairman of Switzerland's largest bank said during a panel discussion at the World Economic Forum in Davos, referring to a category of loosely supervised finance firms. They're systemically safe, we can argue," he added. "We are looking for the regulatory framework that will allow us to accommodate that for our clients." Reporting by Stefania Spezzati and Sinead Cruise; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Let it go
▼ + stars: | 2023-01-16 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Anshuman DagaThe land of rising yields is the No. 1 focus of investors on Monday, as Japan's central bank may again let its bond-market peg go higher. Global inflation data due this week could underscore investors' expectations that the worst of the global price squeeze is over. A final read of euro zone inflation for December, as well as readings from Britain, Canada and Japan are due. Core inflation in all four regions is mostly rising and above target but the worst may have passed.

☆ UBS has no desire to buy Credit Suisse, chairman tells newspaper
▼ + stars: | 2023-01-14 | by ( ) www.reuters.com time to read: +1 min

ZURICH, Jan 14 (Reuters) - UBS (UBSG.S) has no interest in buying fellow Swiss lender Credit Suisse (CSGN.S), the bank's Chairman Colm Kelleher said in a interview published on Saturday. "We have no desire to buy Credit Suisse," Kelleher told the Neue Zuercher Zeitung. "There are always scenarios, but none that are convincing," he said when asked if there were any situations where a UBS takeover of Credit Suisse made sense. The former chairmen of Credit Suisse and UBS supported a merger between the two banks, and held talks in the first half of 2020, Swiss media reported two years ago. The discussions eventually lapsed, the media reports said, and both Urs Rohner and Axel Weber have since left their roles at Credit Suisse and UBS respectively.

☆ Southwest's ex-CEO turned the airline into a 'cult' that couldn't recover from its 'meltdowns', says pilots' union official
▼ + stars: | 2023-01-04 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

Southwest's former CEO created a "cult" focused on its headquarters, its pilots' union VP said. Captain Tom Nekouei said in an open letter that Gary Kelly's chickens had "come home to roost." Gary Kelly stepped down as CEO of Southwest Airlines in January 2022 but remains executive chairman. "Gary Kelly's only enduring legacy is that he destroyed Herb Kelleher's." A spokesperson for Southwest Airlines said it had a "more than 51-year history of allowing – and encouraging – its employees to express their opinions in a respectful manner."

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