Senior Relationship Manager
Summary: UBS Buys CS
Good Morning,
Pls find today a short version of the Morning Brew from the road due to extraordinary circumstances.
Yesterday it was announced that Credit Suisse will be taken over by UBS for app CHF 3 Bio. In addition, certain bonds will be worthless and UBS will receive loss guarantees plus liquidity by the SNB.
So far the market reaction is muted and the move fails to inspire the confidence hoped for but there is so far also no major averse reaction in broader terms – Asian Banks are trading under pressure.
There will severe implications on the Suisse Banking from this decision and it is not yet clear if the overall focus will be positive for the rescue or largely negative that is was necessary.
The Corporate Bond market will be nervous after the value of the Credit Suisse's Additional Tier 1 will be written down acc to Reuters.
It is expected that Credit Suisse Investment Banking will be gradually wound down but details are lacking and there seem to be many rumors and contradicting articles so be careful with news.
Xi Xinping is visiting Moscow to hold talks on the war in Ukraine.
Remain on your toes today and expect large market moves this week with more details coming out.
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy