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Impact of low interest rates on Asia-Pacific commercial property prices likely to be limited, says UBS

The pause in US Federal Reserve interest rate increases is unlikely to boost commercial property prices in Asia-Pacific, according to a new report from UBS.Citing historically low rental yields, driven in part by high pricing, the report noted that in Asia-Pacific cities outside Australia, the “marginal benefit from an extended period of low interest rates is very limited”.“Yields across most APAC markets are at their lowest in the last 10 years. Obviously, that does not mean prime yields… Source link

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UBS’ bold prediction: China’s large cap CSI 300 index to gain 26 per cent this year as worst is behind it

China’s stocks may rise 26 per cent in 2019 as a recovery in equity valuation and earnings growth are poised to reverse the downward spiral in the world’s worst-performing market last year, according to UBS Group. While growth in the world’s second-largest economy will probably continue to decelerate this year on weakening exports and consumption, stocks are likely to fare well as last year’s 25 per cent slump may have already been priced in, said Gao Ting, head of China strategy at the Swiss investment bank, at a conference in…

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Delinking of US and China economies to weigh on Asian equities in 2019, says UBS

A long cycle of conflict will accompany the gradual delinking of the world’s two biggest economies, despite an apparent thaw in relations between the United States and China at the G20 summit in Argentina recently, according to a report on the outlook for the year ahead released by Swiss bank UBS on Thursday. The uncertainty this brings will weigh on Asia’s investment outlook in 2019. “Economic considerations may be given less priority in future policy setting. As such, investors should prepare for relations between the two powers to continue affecting…

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Swiss bank UBS says it expects to be sued by US Justice Department over 2008 crisis mortgage securities

UBS, Switzerland’s largest bank, said it expects to be sued by the US Department of Justice as early as Thursday, on civil charges related to the sale of mortgage-backed securities in the run-up to the 2008 global financial crisis, according to a company statement. The bank said the claims were not supported by facts or the law, and that it would contest any such complaint “vigorously”. The US Department of Justice did not immediately respond to a request for comment. UBS said the Justice Department advised the bank it intended…

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More declines ahead for China’s stock market, according to money managers at HSBC, UBS and Citic

Policymakers in mainland China will need to do more to convince top money managers and strategists that a world-beating slump in the country’s stock market is over. The benchmark Shanghai Composite Index has rebounded by 4.7 per cent after falling to a four-year low last week, but HSBC Jintrust Fund Management forecast that Chinese stocks will witness consolidation in the best case scenario, and that an immediate turnaround in declines was unlikely. Hong Kong stocks wipe out all Monday’s gains as effect of Beijing policy pledges wears off “The revival…

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Questioning of UBS banker comes at delicate time for financial firms in China

For foreign banks and asset managers, mainland China represents an attractive market for potential future growth, as the country’s population becomes increasingly affluent. But accessing this untapped wealth comes with its own unique pitfalls – the reach of the Chinese government. Wealth managers UBS and Julius Baer restrict travel to China after Singapore banker is detained A Singapore-based banker in UBS’s wealth management business was asked to delay her trip back from Beijing this weekend to meet Chinese authorities. No reason has been given as to why the authorities want…

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From Citibank to Standard Chartered, rattled global banks curb China travel after UBS executive is barred from exiting

Several global banks including Citigroup and Standard Chartered have asked their private banking staff to postpone or reconsider travel to China after authorities there prevented a UBS banker from leaving the country, sources said. BNP Paribas and JPMorgan also asked their private banking employees to reconsider their China travel plans after the authorities’ action against the UBS banker, two people said. The Singapore-based UBS banker, who is a client relationship manager in the Swiss bank’s wealth management unit, still has her passport, but was last week asked to delay her…

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Wealth managers UBS and Julius Baer restrict travel to China after Singapore banker is detained

Two large global wealth managers have imposed restrictions on staff travel to China after a UBS Group AG employee was detained, underlining the challenges of capturing business in a country where fortunes are growing the fastest on the planet. UBS has asked some bankers not to travel to China after the incident, according to people with knowledge of the matter, who asked not to be identified because the measures aren’t public. Julius Baer also imposed a travel ban for its relationship managers to the country, another person said. Government clampdowns…

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UBS is accused in Paris tax-evasion trial of tactics akin to schemes in a Bond movie plot

UBS Group AG goes on trial in Paris on Monday accused of encouraging rich clients to stash cash overseas to evade French taxes by deploying tactics “worthy of James Bond.” The Zurich-based lender dispatched bankers across the border to seek out new clients even though they lacked the paperwork – a banking license or European passport – to offer such services in France, the lead investigator wrote in the indictment ahead of the trial which starts on Monday afternoon. When they came over from Switzerland to France, UBS bankers allegedly…

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Property 

Hong Kong, world’s most overvalued housing market, is at greatest risk of bubble, says UBS

Hong Kong remains the world’s most overvalued housing market and is at the greatest risk of a property bubble, according to UBS Global Wealth Management on Thursday. Besides Hong Kong, property values over the past year also soared in Munich, Toronto, Vancouver, London and Amsterdam, according to UBS’s Global Real Estate Bubble Index 2018. Toronto and London remained at risk of a property bubble, even as their real estate prices have softened in the last year, the report said. The study found price overvaluation in most major financial centres, with…

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