UBS Asset Management maintains a neutral stance on various asset classes amid signs of slowing growth and inflation. While European high yield offers attractive yields, credit spreads are close to cyclical lows, limiting potential price rises. The firm favors the Japanese yen due to anticipated monetary policy tightening and prefers US Treasuries for their improved hedging capacity.
The recent BVG reform aimed at addressing funding issues in Switzerland's 2nd pillar pension system was rejected by voters, leaving the current structure unchanged. Key proposed changes included lowering the minimum conversion rate and entry threshold, but the need for reform remains critical as pension gaps persist, particularly affecting women. The debate highlights the importance of reviewing personal pension provisions amidst ongoing discussions for future reforms.
Tension is rising between UBS and Swiss industrial companies, with a recent Swissmem survey revealing that nearly 25% of firms report worsening business conditions, particularly in credit. Two-thirds of respondents are considering ending their relationship with UBS, citing a lack of alternatives despite the bank's significant market presence. Swissmem's leadership expresses disappointment, highlighting a shift as companies seek cheaper banking options amid challenging economic conditions.
Sygnum, a Swiss digital asset banking group, has registered its subsidiary with the Liechtenstein financial regulator, enabling it to offer regulated services in the EU under the upcoming MiCA framework. This strategic move allows Sygnum to expand its digital asset services, including brokerage and custody, across the European Economic Area, with full access to 30 markets anticipated by early 2025. Additionally, the company is pursuing growth in Asia, focusing on Hong Kong and Singapore.
Banque Cantonale Vaudoise shares are currently priced at 91.35 EUR, reflecting a decrease of 2.99 EUR or 3.17%. The dividend per share stands at 88.45 CHF, down by 0.45 CHF or 0.51%. The dividend yield and related financial data are available for investors to assess the stock's performance.
Bank of America plans to open 165 new branches by the end of 2026, joining other major banks like JPMorgan Chase and PNC in expanding their physical presence after years of downsizing. This strategy aims to attract wealth management and small-business clients, transforming branches into hubs for financial advice. Since 2014, the bank has invested $5 billion in renovating over 3,000 locations, despite 95% of customer interactions occurring online.
Digital asset bank Sygnum has secured regulatory approval to operate in Liechtenstein, positioning itself for expansion into the EU as the Markets in Crypto-Assets Regulation (MiCA) takes effect. Originally established in Switzerland in 2019, Sygnum is now licensed as a crypto asset service provider, offering brokerage, custody, and B2B banking services. With a network of over 20 partner banks and recent funding of $40 million, Sygnum aims to leverage its experience in the competitive European market.
UBS has renewed its partnership with the Mercedes-AMG Petronas Formula 1 team, which has been in place since 2011, coinciding with the team's impressive record of seven drivers' and eight constructors' championships. Iqbal Khan, Co-Chairman of UBS Global Wealth Management, emphasized the shared values of innovation and teamwork that underpin this collaboration. The recent Singapore Grand Prix attracted around 250,000 fans, although the Mercedes team did not secure a podium finish, with Lando Norris from McLaren taking first place.
Gold prices are on a record chase following a significant 50 basis point interest rate cut by the US Federal Reserve, with hopes for further reductions later this year. The trading range is anticipated between $2,500 and $2,700, influenced by recent cuts from the ECB and BoE. Investors should remain cautious of potential setbacks as key economic indicators and Fed comments are expected to impact market trends.
IG
Gold prices have surged to a record high of USD 2,630 an ounce, marking a 27% increase in 2024, driven by anticipated Federal Reserve rate cuts and escalating geopolitical tensions. Central bank demand remains robust, with ETF inflows continuing for four months, supporting a bullish outlook with a target of USD 2,700/oz by mid-2025. Investors are encouraged to consider various exposure strategies, including ETFs and gold miner equities.
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