UBS agreed to buy its struggling rival Credit Suisse for about $3.2 billion on Sunday. The deal prompted an initial boost to U.S. Stock futures, but there's still plenty of doubt about big regional banks in the united states. Investors will pay keen attention to how Chairman Jerome Powell will set the agenda for the coming months.
It was a big news Sunday afternoon/evening (US time/Europe time) which of course equates to early, illiquid Asia time. UBS will get CS for 3bn CHF and will receive a 9bn government guarantee. The move is seen as getting ahead of any potential surge in contagion liquidity demand.
The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank. The federal government is providing a loss guarantee of a maximum of 9 billion francas for a clearly defined part of the portfolio.
UBS seeks backstop from Swiss Govt in Any Credit Suisse Deal UBS Group AG and Swiss officials are racing to put together a deal for the firm to take over battered rival Credit Suisse Group AG.
The bailout of rival UBS (UBSG.S) has put another dent in the Swiss armour of financial stability. The country’s two recent banking crises are very different.
If you gave our forecast to the Fed, they would have a very different reaction function, he said. The difference between the Fed and us is that they think we end the year with a core PCE inflation rate of 3.5%.
UBS' revised price target implies a potential upside of nearly 30 percent on Apollo Hospitals. Company reported revenue growth of 14 percent from last year and 12 percent on a sequential basis. EBITDA margin expanded 200 basis points to 20.1 percent. Digital health and pharmacy business reported an EBIT loss of Rs 54.3 crore in the September quarter.
Fang Xinghai, vice chairman of China Securities Regulatory Commission, told a summit of global bankers in Hong Kong. UBS chairman Colm Kelleher and Bank of China president Liu Jin also referenced Fang’s remarks in comments about the deeply indebted property market.
The pan-European Stoxx 600 climbed 0.4% in early trade, with tech stocks adding 1.4% to lead gains. Major companies reporting quarterly earnings on Tuesday were HSBC , UBS , Novartis , Randstad , Air Liquide , SAP and Covestro. Shares in Europe closed higher on Monday after announcement that Rishi Sunak would replace Liz Truss as prime minister.
Economists are standing by their pessimism. UBS downgraded its full-year growth forecasts from 3% to 2.7% for 2022. Some of the current policy support will bear more fruit in the winter and early 2023.
