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Citing ‘political uncertainty’ UBS shifts to underweight equity position as US-China trade war escalates further

As the trade war between the United States and China further escalated, UBS said it is underweighting equities in its portfolios in its global wealth management business to reduce its exposure to “political uncertainty”.The Swiss bank said it removed its overweight rating for global equities versus high-grade bonds, while also initiating an underweight rating for emerging market stocks versus high-grade bonds. The bank said emerging market firms are more exposed to “heightened market volatility… Source link

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UBS slashes Hong Kong GDP forecast as trade war, protests weigh on city’s economy

UBS dramatically cut its economic growth forecast for Hong Kong, citing uncertainty surrounding the US-China trade war and protests that have disrupted business in the city since June.The Swiss bank slashed its forecast for gross domestic product (GDP) growth to 0.8 per cent from 2.4 per cent for this year.The forecast cut came days after Hong Kong’s GDP growth in the second quarter came in at 0.6 per cent, unchanged from the first quarter and well below the consensus forecast of 1.5 per cent… Source link

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UBS wealth management unit thinks mainland equities could perform well in second half, beating out gold and real estate

Trade talks between Beijing and Washington have entered a new normal, characterised by a drawn out cycle of progress followed by renewed tensions, a relationship based on repetitive conflict that adds up to higher volatility for China and Hong Kong equities, according to UBS.But supportive policies from Beijing means there could be 10 per cent upside in Chinese equities, while Hong Kong’s market, which has no immediate stimulus, is likely to underperform, said Eva Lee, head of Hong Kong… Source link

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‘Chinese pig’ remark lands UBS in trouble as state firm excludes Swiss bank from bond sale

One of China’s biggest state-owned infrastructure companies excluded UBS Group from a bond deal after the bank’s global chief economist sparked a furore with his use of the phrase “Chinese pig”.China Railway Construction Corp decided against hiring UBS as a joint global coordinator on a dollar-bond sale, a CRCC spokesman said. The decision was prompted by last week’s pig remark, sources said earlier. UBS declined to comment.CRCC is the first known corporate issuer to distance itself from UBS… Source link

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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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