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UBS is required to revise its restructuring and liquidation plans following the integration of Credit Suisse, as mandated by the financial market supervisory authority, Finma. The bank must expand its options for insolvency, including the potential sale or shutdown of individual businesses, while also standardizing its group structures and processes. As a globally systemically important institution, UBS must develop comprehensive stabilization and emergency plans to ensure the continuity of critical functions in case of financial distress.
UBS shares have shown impressive growth, closing at EUR 29.57 on October 14, 2024, marking a 1.60% increase and a 27.88% rise over the year. With a market capitalization of EUR 102.3 billion, UBS remains a strong player in the financial sector, prompting analysts to evaluate potential investment strategies.
The USD/CHF has shown signs of stabilization after an 8% retracement since May, with potential upside towards the 0.8730 level if US economic surprises continue. Silver prices struggle to breach the US$32.45 high amid a strong dollar, while the China A50 index remains in consolidation, awaiting clearer fiscal policy signals post-US elections. Key levels to watch include 0.8546 for USD/CHF, US$29.95 for silver, and 13,600 for the China A50.
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UBS currently has a P/E ratio of 3.56, significantly below the industry average of 40.75, indicating it is undervalued. The bank offers a dividend yield of 2.39%, surpassing the industry average, but its technical analysis shows a poor rating due to high RSI values. Over the past year, UBS has underperformed compared to its sector, with a return of 20.83% against an average of 50.44%.
Glarner Kantonalbank's share price rose by 0.66% to EUR 23.00 on October 14, 2024, reflecting a monthly increase of 2.45%, although it remains 8.70% below its 52-week high amid ongoing banking sector challenges. Investors can find hope in the bank's attractive dividend policy, with an expected dividend of EUR 1.10 per share for 2024, yielding 5.09%, appealing to income-focused investors.
The Swiss stock market experienced a decline mid-week, with the SMI index falling 0.21% to 12,193.07 points amid investor caution ahead of the European Central Bank's interest rate decision. Major losses were seen in luxury goods and technology sectors, particularly for Swatch Group and Richemont, following disappointing figures from LVMH. In contrast, stocks like Autoneum and Julius Baer showed gains, while Tecan plummeted 15% due to a forecast cut.
UBS Group AG notified Solvay of a downward crossing of the 3% voting rights threshold on October 7, 2024, due to a reduction in holdings in its trading portfolio. Following this adjustment, UBS's total indirect interest in Solvay's voting rights fell below 3%, triggering the disclosure obligation. Solvay, committed to sustainable chemistry, reported net sales of 4.9 billion euros in 2023 and aims for carbon neutrality by 2050.
UBS Group AG notified Solvay that it crossed a transparency threshold, reducing its indirect voting rights below 3% as of October 7, 2024, due to a decrease in Trading Book holdings. This notification aligns with Belgian transparency legislation, reflecting UBS's controlled undertakings' holdings. Solvay, a leading chemical company with a commitment to sustainability and a goal of carbon neutrality by 2050, reported €4.9 billion in net sales in 2023 and employs over 9,000 people globally.
A group of campaigners is urging the U.S. Department of Labor to revoke UBS's exemption allowing it to operate in the American pension market, citing the bank's history of nearly 100 offenses and $20 billion in penalties since 2000. UBS, which has submitted a 500-page application to extend its exemption, argues that issues stem from individual staff actions. Recent legal troubles include a significant fine in France for tax evasion and involvement in an antitrust lawsuit related to interest rate swaps.
Berner Kantonalbank (BEKB) demonstrates resilience in a volatile market, with shares trading at EUR 248.50, reflecting a slight decline of 0.20% but a monthly gain of 2.47%. The bank's solid fundamentals include a 4.13% expected dividend yield and a price/earnings ratio of 13.24, indicating fair valuation. Investors are urged to consider their positions as new analysis suggests potential actions for shareholders.
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