Weekly Market Update - 20 March 2023
Credit Suisse, UBS
UBS’s $3.3 billion deal to buy Credit Suisse comes with extensive guarantees and liquidity provisions, and is set to boost the value of its wealth and asset management invested assets to about $5 trillion. That said, UBS Chief Executive Officer Ralph Hamers has warned staff not to talk about business matters with counterparts, asking them to remember that “Credit Suisse is still our competitor.” Meanwhile, Credit Suisse has told its employees that promised bonuses and pay increases will still be paid as the bank seeks to keep “business as usual.” There will be no changes to payroll arrangements and bonuses will still be paid on March 24, it said in an internal memo.
Source: Bloomberg
Xi and Putin
China’s President Xi Jinping will deliver a strong message of support for Vladimir Putin with his three-day visit to Moscow this week, even as he pitches Beijing’s proposals for brokering an end to war in Ukraine. His visit will be followed by his first conversation with Ukrainian President Volodymyr Zelenskiy since Putin’s invasion. Xi’s push will give him the chance to portray China as seeking peace while the US and allies discuss sending more arms to Ukraine. Putin made a surprise trip to occupied Mariupol at the weekend. The trip came after the Russian leader was issued an arrest warrant for alleged war crimes.
Source: Bloomberg
Biden Proposing New Tax Increases
Evergrande, the world’s most indebted developer, has reached an agreement with a group of major creditors for a plan to restructure its offshore debt, ahead of a key winding-up petition hearing on Monday, sources say. An ad-hoc group of offshore bondholders has expressed support for the company’s plan, and a restructuring support agreement was being drafted. An agreement would be a milestone in the saga of Evergrande and could also increase the chances of an adjournment in the hearing, scheduled to start at 9:30 a.m. in Hong Kong. It would potentially help avoid a court-ordered asset liquidation.
Source: Bloomberg