UBS shareholders approved the AT1 bond swap, sending shares to a two-month low
UBS Share Price
UBS A meeting of shareholders on Wednesday afternoon approved changes to the bank’s Additional Tier 1 (AT1) bonds to protect them from the destruction AT1 bondholders demanded when Credit Suisse collapsed last year.
The change converts AT1 bonds, a form of debt that can be converted into an equity conversion structure if a bank’s capital ratio falls below a certain level.
After losses to Credit Suisse bondholders, UBS Group AG tried to make the debt instruments, also known as contingent convertible bonds or “CoCos,” more attractive. Write down Some criticized.
The Swiss bank faces higher capital requirements due to increased scale following the acquisition of former rival Credit Suisse and scrutiny from domestic regulators. Push for these demands even harder.
UBS issued AT1 bonds for the first time since the acquisition and raised $3.5 billion in November.
At 4pm in London, UBS shares fell 2.8%, hitting their lowest level since February 29.
According to Reuters, US hedge fund Appaloosa has filed a lawsuit in a New Jersey court accusing the former Credit Suisse (now absorbed by UBS) of misleading investors before writing $17 billion in bonds.
Bloomberg reported this late on Tuesday night.
– Jenny Reid
Stock market trend: ASM International up 12%, Evotech down 34%
Dutch semiconductor supplier ASM International, topping the Stoxx 600 list, rose 11.8% at 3:40 pm in London in afternoon trade.
In results after the close on Tuesday, the company reported higher revenue and net profit, and raised its revenue forecast for the second quarter and the second half of 2024 as the company said it expected the sales slowdown in China to be less severe.
On the other side of the Stoxx, German pharmaceutical company Evotech plunged 34% after it released 2023 full-year results with an operating loss of 47.5 million euros, compared to an operating profit of 20.9 million euros the previous year.
Evotech announced the appointment of Christian Wojciewski as its new CEO in July following allegations against longtime CEO Werner Lanthaler. Failure to comply with stock transaction disclosure rules.
Interim CEO Mario Poliuca said the company’s goal for 2024 is to “refocus on profitable growth.”
– Jenny Reid
Nasdaq opens higher
A trader works at the New York Stock Exchange.
Brendan McDermid
Technology stocks were higher after the opening bell on Wednesday, helping the Nasdaq Composite gain for a third straight session.
The technology index rose 0.57% and the S&P 500 rose 0.2%. The Dow Jones Industrial Average was the only laggard, down 62 points, or 0.16%.
– Brian Evans
UBS chairman insists bank ‘not too big to fail’
UBS CEO Sergio Ermotti (right) speaks with UBS Chairman Colm Kelleher during a press conference in Zurich on March 29, 2023.
Arndt Wegmann | AFP |
UBS Chairman Colm Kelleher insisted at the Swiss banking giant’s annual shareholder meeting on Wednesday that the company is “not too big to fail.”
Kelleher added that the bank was “gravely concerned” by the Swiss government’s proposal to impose additional capital requirements on several systemically important banks, including UBS. He believes such proposals would undermine Switzerland’s competitiveness as a financial center and increase the fragmentation of European regulations.
“Faith cannot be policed,” he said in a speech.
SEB CEO Johan Torgeby told CNBC in a separate interview that he agreed with Kelleher’s views on regulation.
“It’s clear that there is general concern about higher capital requirements,” Torgeby told CNBC’s “Signpost Europe.”
“You cannot control trust, and trust is a personal view that comes from asking shareholders to put their hard-earned money in a bank like SEB and then we use it. Usually this is not good – understand, what banks do as real providers The capital of anything is its shareholders and we have to maintain and restore any inherent trust that has been destroyed there,” he said.
– Jenny Reid
Stock Market Trends: ASM up 10%, Handelsbanken down 10.7%
share ASM International Shares of the Dutch semiconductor company rose 9.9% early Tuesday after the company raised its second-quarter revenue forecast on Tuesday.
Meanwhile, Handelsbanken shares fell 10.7% after first-quarter profit fell short of expectations.
— Karen Gilchrist
ECB policymakers say June’s rate cut may not require further rate cuts
The European Central Bank’s rate cut in June may not be followed by other central banks, depending on how inflation develops, a policymaker said on Wednesday.
Bundesbank President Joachim Nagel said he would support cutting interest rates in June if upcoming economic data bolsters the European Central Bank’s confidence that inflation will soon return to its 2% target.
“However, this move will not necessarily be followed by successive rate cuts,” he said in a statement. Speech at the 2024 DZ Bank Capital Markets Conference. “Given the current uncertainty, we are unable to pre-commit to a specific interest rate path.”
Nagel also sounded a note of caution about the inflation outlook, saying inflation in the services sector appeared to be persistent as it was driven by “steady wage growth”. He also noted that core inflation remains high.
“I am still not entirely convinced that inflation will actually return to target in a timely and sustainable manner,” he said.
-Sophie Kidlin
Luxury goods group Kering sank at the open after Gucci sold warnings
On February 24, 2021, a woman walks through the Gucci store on Fifth Avenue in Trump Tower in New York City.
John Smith
Shares in French luxury goods group stock dropped more than 9% at the open on Wednesday after Kering Group warned that first-half profit could fall sharply due to lower demand for the company’s Gucci brand.
The stock was down 8.9% at 8:15 a.m. London time.
The group said on Tuesday that it expects first-half operating income to fall 40% to 45% compared with the same period in 2023.
– Karen Gilchrist
FTSE hits new high, European stocks open higher after close
European stocks opened slightly higher on Wednesday, with the benchmark Stoxx 600 index up 0.1% as of 8:10 a.m. London time.
Britain’s FTSE 100 index rose 0.4% to close at a new high on Tuesday, France’s CAC 40 index fell 0.1% and Germany’s DAX index rose 0.2%.
Stoke 600.
CNBC Pro: Forget Nvidia: Intel’s much-hyped AI chips will boost 3 global stocks, Morgan Stanley says
Its launch IntelThe latest artificial intelligence chip is expected to benefit three of the world’s largest semiconductor companies, Morgan Stanley said.
Intel introduced the third generation artificial intelligence accelerator Gaudi 3, earlier this month. The semiconductor giant says its latest chips are twice as energy efficient as traditional chips and can run artificial intelligence models one and a half times faster. NvidiaH100 GPU – the flagship product of the current AI chip market leader.
These three global semiconductor companies make components for Intel’s new artificial intelligence chips.
CNBC Pro subscribers can read more here.
– Ganesh Rao
CNBC Pro: Buy these gold and copper stocks to take advantage of AI, China demand and more: Fund managers
Gold and copper are on fire as geopolitical tensions rise, central banks buy gold and artificial intelligence boosts demand for copper.
Some fund managers and Wall Street analysts tend to be bullish on these products.
Here are some of their favorite names.
CNBC Pro subscribers can read more here.
– Tan Wizen
European Market: Here’s the opening call
European markets are set to open higher on Wednesday to extend gains from earlier in the week.
British FTSE 100 German stocks are expected to open 40 points higher at 8,084 points German DAX index France rose 60 points to 18,201 CAC Italy rose 20 points to 8,130 points FTSE MIB According to IG data, it rose 206 points to 34,331 points.
Profits came from Orange, Air Liquide, Iberdrola, Roche and Heathrow Airports. The data released included the April business conditions and expectations survey by Germany’s Ifo research institute.
– Holly Elliott
