Tag Archives: UBS

UBS reported 15% profit growth in Q2 2014

UBSUBS reported 15% profit growth in Q2 2014 amid lower costs. The net profit the lender rose to 792 million Swiss CHF (876 million USD) compared to 690 million CHF an year earlier, said the Zurich-based institution. For comparison the analysts predicted a slight increase to 719.3 million CHF.
The CEO of UBS Sergio Ermotti made ​​a big cost reductions in the amount of 2.1 billion CHF after the bank was facing increased pressure due to the decline in revenues and higher costs of litigation. The Bank aims to promote the return on equity to more than 15 percent by 2016 from 7.6% in the first half of this year. The cost of UBS fell by 6.9% to 5.9 billion CHF during the quarter, which helped their level reaches 82.8% of revenue compared to 86.2% an year earlier.
Earlier this year, the bank paid 300 million EUR (403 million USD) to the authorities in the German city of Bochum to settle the dispute whether help their clients to evade taxes. The lender set aside 120 million CHF for settling disputes during the quarter, bringing the total cost of legal provisions for the period amounted to 254 million CHF.

Impending conflict in Syria deepened the decline of US stock markets

US InvestorsThe major US indexes posted sharp declines for the second straight session, while Dow Jones fell to a two-month low amid rising concerns about possible US military action against Syria. The US Secretary of Defense Chuck Hagel told the BBC, that the US military is “ready to move” if the US President Barack Obama ordered the action in response to attacks with chemical weapons in Syria. Meanwhile, NBC News reported that the United States could take a rocket attack on Syria “to Thursday”. Dow Jones declined by 1.14% to 14 776.13 points, led by Bank of America, whose shares lost 2.6% of its value to 14.11 dollars per share, and Microsoft, whose market capitalization has shrunk by 2.6% to 33.26 USD.
Standard & Poor’s 500 lost 1.59% to 1 630.48 points, with all its key subsectors ended in negative territory, led by technology and financial companies. Nasdaq Composite slid 2.16 percent to 3 578.52 points and a Standard & Poor’s recorded its weakest session than 2 months. Art Cachin, director of operations of a regulated market in UBS Financial Services, said he is worried about the situation in Syria, describing it as “another big variable”. “I know people who reject this as an excuse for the market that is heading down, but I think if you look at things like the spread between Brent and varieties of West Texas, which begins to expand, you will find that there is a real concern”, he added.

Mixed movements on the Asian Indexes

Asian StocksThe leading stock indexes in Asia-Pacific region began the new week with mixed movements. In the absence of significant economic news on the basis of market sentiment is the news about Greece and the news from U.S. by the end of last week. The regional index MSCI Asia Pacific added 0.2 percent to 135 points today, to trade the direction of change several times. The ratio advancers / decliners positions of the index today was five to four.
“The Exchange will continue correction since the index of leading indicators showed a deterioration in the U.S.. Market is waiting for confirmation of whether the U.S. economy is actually recovering, “said a media Yunghao Pu, head of UBS Wealth Management in Hong Kong.
Today in Tokyo the Nikkei 225 registered a decline of 0.2 percent to 9505 points, resulting in continued negative index series after recording three consecutive weekly retreats. In China’s CSI 300 slid 0.3 percent to 2 954.51 points. Today, the Chinese yuan set a new record after the central bank increased the reference rate for the third consecutive day, so speculation that begins a new cycle of appreciation of local currency. Decline recorded also the indexes in South Korea and Australia as KRX 100 fell by 0.2 per cent and the Australian S & P / ASX 200 – by 0.35 per cent. At the opposite end were even leading indices in Hong Kong and Taiwan, which added respectively 0.3 and 0.2 per cent.

UBS will not pay compensation to defrauded investors by Madoff

MadoffThe decision by a court in Luxembourg, the EU today, is likely to protect from Swiss bank UBS to pay direct compensation to investors who lost money in a fraudulent scheme by Bernard Madoff fund established by the bank, said yesterday. HSBC may also avoid such cases. Court rejected the appeal of a small group of investors who want direct compensation from UBS, and not by the liquidators of the fund Madoff. The decision could affect many are currently facing lawsuits against UBS in its capacity as custodian of funds and LuxAlpha LuxInvest, who have lost a total of about 1,7 billion dollars of investment scheme Madoff. Lawyers have commented that after today’s decision does not expect the courts to allow investors to directly sue for compensation, auditors and trustees of the funds. However, the decision is contrary to EU directives, known as UCITS, which protect small investors by strict rules for investment funds that are open to the public, investors and lawyers intend to appeal the decision.